The URL can be used to link to this page

Home My WebLink AboutFY 2020 Comprehensive Annual Financial ReportFIV x.+ t. Iq �t" FOR FISCAL YEAR ENDING JUNE 30, 2020 DESCH UTES 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, 2020 Prepared by: Deschutes County Finance Department Greg Munn Treasurer & Chief Financial Officer James Wood, CPA Accounting Manager Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2020 INTRODUCTORY SECTION Letterof Transmittal.................................................................................................................................................. l OrganizationalChart .............................................................................................................................................. 4 List of Elected and Appointed Officials................................................................................................................. 6 GFOA Certification of Achievement......................................................................................................................... 7 FINANCIAL SECTION IndependentAuditor's Report ........................................................................................................................................ 8 Management's Discussion and Analysis.................................................................................................................. 11 Basic Financial Statements Government -Wide Financial Statements Statementof Net Position................................................................................................................................ 23 Statementof Activities.................................................................................................................................... 25 Fund Financial Statements: Governmental Funds BalanceSheet.................................................................................................................................................. 26 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ......................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances.......................................................... 29 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities........................................................................................ 31 Fund Financial Statements: Proprietary Funds Statementof Net Position................................................................................................................................ 32 Statement of Revenues, Expenses, and Changes in Net Position.................................................................... 33 Statementof Cash Flows................................................................................................................................. 34 Fund Financial Statements: Fiduciary Funds Statement of Fiduciary Assets and Liabilities................................................................................................. 35 Notesto Financial Statements.............................................................................................................................. 36 Required Supplementary Information Schedule of the Proportionate Share of the Net Pension Liability (Asset).............................................................70 Schedule of Net Pension Liability (Asset) Employer Contributions..................................................................... 71 Schedule of Changes in the Total OPEB Liability................................................................................................ 72 Schedule of the Proportionate Share of the Net OPEB Liability (Asset).............................................................. 73 Schedule of Net OPEB Liability (Asset) Employer Contributions....................................................................... 74 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual GeneralFund................................................................................................................................................... 75 Deschutes County Sheriff's Office.................................................................................................................. 76 Countywide Law Enforcement District........................................................................................................... 77 RuralLaw Enforcement District...................................................................................................................... 78 RoadDepartment............................................................................................................................................. 79 HealthServices................................................................................................................................................ 80 PERSReserve.................................................................................................................................................. 81 Notes to Required Supplementary Information.................................................................................................... 82 Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2020 Other Supplementary Information Combining and Individual Fund Statements and Schedules — Major Funds Major Governmental Funds and Sub -Funds — General Fund Combining Balance Sheet GeneralFund........................................................................................................................................... 83 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances GeneralFund........................................................................................................................................... 86 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Sub -Funds of the General Fund EconomicDevelopment..................................................................................................................... 89 CourtTechnology Reserve................................................................................................................. 90 Assessor, Clerk and Tax Reserve....................................................................................................... 91 ProjectDevelopment Fund................................................................................................................. 92 GeneralCounty Projects..................................................................................................................... 93 GeneralCapital Reserve..................................................................................................................... 94 CommunityJustice — Juvenile............................................................................................................ 95 CodeAbatement................................................................................................................................. 96 Vehicle Maintenance and Replacement............................................................................................. 97 Major Governmental Funds - Capital Project Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Road Capital Improvement Plan............................................................................................................ 98 Major Proprietary Funds - Enterprise Funds Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual SolidWaste............................................................................................................................................ 99 Fairand Expo Center........................................................................................................................... 100 RVPark............................................................................................................................................... 101 Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2020 Combining and Individual Fund Statements and Schedules — Nonmajor Funds Nonmaj or Governmental Funds CombiningBalance Sheet.......................................................................................................................... 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 103 Nonmajor Special Revenue Funds CombiningBalance Sheet.......................................................................................................................... 104 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 111 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual JusticeCourt ........................................................................................................................................ 118 Park Acquisition and Development..................................................................................................... 119 ParkDevelopment Fees....................................................................................................................... 120 CountySchool Fund............................................................................................................................ 121 Special Transportation Fund................................................................................................................ 122 TaylorGrazing..................................................................................................................................... 123 TransientRoom Tax............................................................................................................................ 124 VideoLottery....................................................................................................................................... 125 TransientRoom Tax — 1%................................................................................................................... 126 ForeclosedLand Sales......................................................................................................................... 127 Victims' Assistance............................................................................................................................. 128 LawLibrary......................................................................................................................................... 129 CountyClerk Records.......................................................................................................................... 130 CourtFacilities..................................................................................................................................... 131 Deschutes County Communication System Reserve........................................................................... 132 CommunityDevelopment................................................................................................................... 133 CDDGroundwater Partnership............................................................................................................ 134 NewberryNeighborhood..................................................................................................................... 135 GISDedicated Fund............................................................................................................................. 136 Natural Resource Protection................................................................................................................ 137 FederalForest Title III......................................................................................................................... 138 Surveyor............................................................................................................................................... 139 Public Land Corner Preservation......................................................................................................... 140 Countywide Transportation SDC Improvement Fee........................................................................... 141 DogControl......................................................................................................................................... 142 AdultParole and Probation.................................................................................................................. 143 Deschutes County 9-1-1 County Service District (9-1-1 C.S.D.)........................................................ 144 Extensionand 4-H............................................................................................................................... 145 Nonmajor Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Deschutes County Full Faith and Credit Debt Service........................................................................ 146 Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2020 Combinine and Individual Fund Statements and Schedules — Nonmai or Funds (continued Internal Service Funds Combining Statement of Net Position....................................................................................................... 147 Combining Statement of Revenues, Expenses, and Changes in Net Position .......................................... 149 Combining Statement of Cash Flows........................................................................................................ 151 Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Facilities............................................................................................................................................... 153 AdministrativeServices....................................................................................................................... 154 Boardof County Commissioners......................................................................................................... 155 Finance................................................................................................................................................. 156 FinanceReserve................................................................................................................................... 157 Legal.................................................................................................................................................... 158 HumanResources................................................................................................................................ 159 InformationTechnology...................................................................................................................... 160 Information Technology Reserve........................................................................................................ 161 Insurance.............................................................................................................................................. 162 HealthBenefits.................................................................................................................................... 163 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity ................................. 164 Other Financial Schedules Schedule of Property Taxes Transactions — All County Taxes................................................................... 165 Schedule of Long -Term Debt Transactions................................................................................................. 166 Schedule of Long -Term Debt Interest Transactions.................................................................................... 167 Schedule of Future Debt Service Requirements of Pension Obligation Bonds ........................................... 168 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings — GovernmentalActivities......................................................................................................................... 169 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings— Business-Type Activities........................................................................................................................ 171 iv Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2020 STATISTICAL SECTION StatisticalSection Contents........................................................................................................................ 172 Financial Trends Net Position by Component — Last Ten Fiscal Years........................................................................... 173 Changes in Net Position — Last Ten Fiscal Years................................................................................. 175 Fund Balances - Governmental Funds — Last Ten Fiscal Years........................................................... 179 Changes in Fund Balances - Governmental Funds — Last Ten Fiscal Years ........................................ 181 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ................ 183 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ................................................... 185 Principal Property Taxpayers — Current Fiscal and Nine Years Ago .................................................... 187 Property Taxes Levies and Collections — Last Ten Fiscal Years.......................................................... 188 Debt Capacity Ratios of Outstanding Debt by Type — Last Ten Fiscal Years..............................................................189 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years .................................................191 Direct and Overlapping Governmental Activities Debt........................................................................192 Legal Debt Margin Information — Last Ten Fiscal Years.....................................................................193 Pledged -Revenue Coverage — Last Ten Fiscal Years...........................................................................195 Demographic and Economic Information Demographic and Economic Statistics — Last Ten Calendar Years......................................................196 Principal Employers — Current Year and Nine Years Ago...................................................................197 Operating Information Full -Time Equivalent County Government Employees by Function/Program — LastTen Fiscal Years.......................................................................................................................198 Operating Indicators by Function/Program — Last Ten Fiscal Years ....................................................199 Capital Asset Statistics by Function / Program — Last Ten Fiscal Years..............................................201 Audit Comments and Disclosures Required By State Regulations Audit Comments and Disclosures Required by State Regulations...............................................................202 Independent Auditor's Report Required by Oregon State Regulations ........................................................203 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................................................................................................................................................206 Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance ......................................................208 Schedule of Expenditures of Federal Awards..............................................................................................210 Notes to the Schedule of Expenditures of Federal Awards..........................................................................213 Schedule of Findings and Questioned Costs................................................................................................218 V Introductory Section As of and for the Year Ended June 30, 2020 Deschutes County, Oregon December 23, 2020 COUNTY ADMINISTRATOR TOM ANDERSON 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, 2020, 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 Deschutes County 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 208. 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, 2020, 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 the 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 Central Oregon 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. 1300 NW Wall Street Bend, Oregon 97703 (541) 388-6565 tom.anderson@deschutes.org www.deschutes.org 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 and 4-H are reported as special revenue funds of Deschutes County. The County utilizes a budget committee, consisting of the three elected 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 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 experienced rapid population growth. This growth is believed to be largely due to the area's invigorating climate and year-round recreation activities. According to the Portland State Population Research Center (Oregon Population Forecast Program), the population was estimated to be 197,015, as of July 1, 2020, an increase of approximately 23% since 2010, and is projected to exceed 266,000 by 2035. Recreational activities include downhill and cross-country skiing, snowboarding, fishing, hunting, hiking, trail running, rock -climbing, road and mountain biking, mountain climbing, river floating, 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, Sisters Rodeo, WinterFest and Bend Film Festival. In Fiscal Year 2020, the County's assessed valuation of taxable property increased by 5.3%, approximately $1.3 billion, to a total of $25.9 billion. Formerly a region dependent on wood products, Deschutes County has steadily diversified its employment and economic base. For the past two decades, 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 over 400 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 strives 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% (one month) of the fund's operating budget. For funds with property taxes as a significant portion of revenues, the level is one-third (four months) of estimated annual property tax collections. Long -Term Financial Planning The state retirement benefit system, known as PERS, sets rates for employers every two years. Due to a number of factors, PERS rates charged to employers was anticipated to increase dramatically over the next several years potentially causing a significant strain on publicly funded services. In response, the Oregon Legislature passed and the Governor signed SB 1049 into law on June 11, 2019. SB 1049 is a comprehensive piece of legislation intended to address the increasing cost of funding Oregon's public retirement system, by providing relief to public employers for escalating PERS contribution rate increases. The legislation included several changes including the Employer Incentive Fund that provided a 25% match to cash investments made in a new side account invested in the retirement system. The County invested $13 million, and was matched $3.25 million, for a total investment credited to the County of $16.25 million. Over the 2021-23 biennium the new side account is expected to reduce retirement costs by $2.9 million and the balance of SB 1049 changes is expected to reduce or defer retirement costs by an additional $6.4 million. These changes and a strategy to smooth rates over the next fifteen years will allow the County to maintain future rate adjustments at or below normal cost of living increases. Major Initiatives The County plans to spend over $50 million during the next five years on road improvement projects. House Bill 2017-A, signed by the Governor, will phase in increases to the State Gas Tax and Vehicle Registration fees over the next several years. This action increases the resources for road maintenance and improvements 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 Capital Improvement Plan that have not been funded in the past. In 2020, the Health Department and the Sheriff s Office partnered on the development and opening of a Stabilization Center for Deschutes County. The purpose of a crisis stabilization center is to provide a site for public safety and health staff to place individuals with acute mental health who are experiencing a crisis in lieu of sending them to jail or hospital. The Crisis Stabilization Center has coordinated services for mental health in a secured and safe facility. Resources for the Crisis Stabilization Center are included in both the Sheriff's Office budget and the Health Department's budget for FY 2021. The facility, is located within the Public Safety Campus, in the City of Bend, and is available to area partner agencies. 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, 2019. This was the 19' 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 2020. 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 Ori a✓�� Greg Munn Treasurer & Chief Financial Officer Deschutes County Organizational Chart Citizens of Deschutes County Board of Commissioners Justice of the County Treasurer County AssessCounty Clerk County Sheriff District Attorney Philip Henderson Peace (acting) Scot Langtonor Nancy Blankenship L. Shane Nelson Patti Adair John Hummel Charles Fadeley Greg Munn Anthony DeBone Appraisals Elections Corrections Prosecution in Traffic/ Ordinance Investments (Jail/ Work Center) Circuit Court Violations Assessment Document Law Enforcement County Treatment Courts Small Claims Court Tax Distribution Records Recording David Doyle Administrator Tom Anderson Cartography Vital Records AdminisVative & Victims' Assistance Support Services County Legal Property Tax Department Appeals Administrative/ Court Proceedings 0 Elected Offices 0 Appointed Offices 0 Department Functions 4 Deschutes County Organizational Chart Health Services Solid Waste I Fair & Expo Ce Dr. George A. Timm Schimke Geoff Hinds Conway Public Health Behavioral Health Landfill Disposal Fair & Expo Ce Community Child & Family ransfer Operation County Fair Health Reproductive Adult Treatment Recycling Services RV Park Health Maternal Child Developmental Health Disabilities Women, Infants & Access &Crisis Children (WIC) Services Alcohol& Drug Prevention Early Learning Council Administrative Services Internal Auditing County Administrator Tom Anderson Road DepartmentI CornCommunity Ju Chris Doty Deveopment Ken Hales Nick Lelack Develop/Maintain Road System Facilities Public Information Lee Randall Natural Resource Building Protection Maintenance County Administrator Tom Anderson Road DepartmentI CornCommunity Ju Chris Doty Deveopment Ken Hales Nick Lelack Develop/Maintain Road System Planning Adult Parole & Probation Juvenile Justice Accounting Joe Sadony Management County Surveyor Building Safety Offender Supervision Community Servic Supervision Staff Recruitment Technology Dog Licensing Compensation Noxious Weed Control Environmental Soils Electronic Monitoring Juvenile Detention Compensation Web Applications Liability Fleet Equipment ServicesF Code Enforcement Transitional Services Probation & Diversion Insurance GIS Deputy County Administrator Erik Kropp Risk Management Human Resources Kathleen Hinman Information Technology Veterans' Services Accounting Joe Sadony Management Payroll Budget Workers' Staff Recruitment Technology Dog Licensing Compensation Law Library General & Vehicle Compensation Web Applications Liability Unemployment Insurance Insurance GIS Retirement Americans with Programs Disabilities Act Health Benefits R FinancelTax Greg Munn Property Management Knstie Bollinger Accounting Property Management Payroll Budget Tax Collection Dog Licensing County & Deputy County Administrator Appointed Offices F7Department Functions List of Elected and Appointed Officials As of June 30, 2020 ELECTED OFFICIALS COUNTY COMMISSIONERS Phil Henderson Patti Adair Anthony DeBone ASSESSOR DISTRICT ATTORNEY Scot Langton John Hummel SHERIFF TREASURER, acting Shane Nelson Greg Munn COUNTY CLERK JUSTICE COURT Nancy Blankenship Charles Fadely APPOINTED OFFICIALS County Administrator - Tom Anderson County Counsel — David Doyle Chief Financial Officer — Greg Munn County Internal Auditor - David Givans Administrative Offices 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 rel Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Deschutes County Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2019 .. .A Executive Director/CEO 7 Financial Section As of and for the Year Ended June 30, 2020 Deschutes County, Oregon EideBailly CPAs & BUSINESS ADVISORS Independent Auditor's Report To the Deschutes County 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, 2020, and the related notes to the financial statements, which collectively comprise the County'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, 2020, 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. What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 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, schedule of changes in the County's net OPEB liability, schedule of changes in the County's RHIA total OPEB liability, 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 information 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. 9 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 23, 2020 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 December 23, 2020, 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 December 23, 2020 10 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 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, 2020. 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 1-3 of this report. Financial Highlights On a government -wide basis, total assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $219,550,000 as of June 30, 2020, an increase of $11,590,000 in net position from June 30, 2019. This change is due primarily by increases in governmental fund balances, despite overall governmental fund balances increasing by only $104,000 (a $13,000,000 contribution expenditure to advance -fund the County's net pension liability obfuscates the fund balance increase). With the continued investment of State dollars into the County Road CIP fund and Special Transportation Fund, as well as County investment made into infrastructure, the County is positioned well for the future. It is anticipated that this buildup of fund balance will be exhausted by large capital expenditure and rising pension expense. • The County reported a combined fund balance at June 30, 2020 of $146,582,000 for its governmental funds, an increase of $104,000 from June 30, 2019. Of this balance, $37,257,000 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 $28,689,000 as of June 30, 2020, a decrease of $3,705,000 from the balance at June 30, 2019. General Fund (Operations) Sub -funds of the General Fund June 30, 2020 June 30, 2019 $ 13,621,000 $ 12,459,000 15,068,000 19,935,000 $ 28,689,000 $ 32,394,000 o Fund balance is 67% percent of the Fund's combined revenues and transfers in and 62% of the fund's combined expenditures and transfers out. • The County's Assessed Valuation of Taxable Property increased by 5.4% in Fiscal Year 2020. • Total bonded debt was $46,618,000 as of June 30, 2020, compared to total bonded debt of $50,206,000 as of June 30, 2019. 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 11 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. 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 services, 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 23-25 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 ou�flows ofspendable resources, as well as on balances ofspendable 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 $150,295,000 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 $175,042,000, 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 and other post -employment benefit plan, are reported in the Statement of Net Position but not on the Balance Sheet. The full reconciliation can be found on page 28. 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 $105,000 during FY 2020 while the net position of governmental activities increased by $11,869,000. This $11,764,000 difference is due to fiscal year transactions that are reported differently on each statement. • Governmental expenditure of $2,619,000 (increases net position) for the repayment of long-term debt is not an expense on the Statement of Activities. • Governmental expenditure of $14,212,000 (increases net position) for the acquisition of capital assets is not an expense on the Statement of Activities; whereas, $9,754,000 (decreases net position) of depreciation is an expense on the Statement of Activities. • Governmental revenues earned, but not collected, of $3,788,000 (increases net position) are shown on the Statement of Activities. • Governmental revenue of $1,600,000 (decreases net position) received for repayment of long-term loans are not revenues on the Statement of Activities. • Governmental activities include a change of $3,578,000 (increases net position) in net position held by internal service funds. • Other changes totaling $1,079,000 (decreases net position) from other non-current liabilities are shown as expenses on the Statement of Activities. 12 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 Deschutes County reported activity in forty-six (46) individual governmental funds and nine (9) sub -funds during Fiscal Year 2020. 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, Road CIP, 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 26-31 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, insurance services, and health benefits. 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 enterprise fund financial statements provide information separately for Solid Waste, Fair & Expo Center operations and the RV Park. All three enterprise -funds 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 32-34 of this report. Fiduciary funds. Fiduciary funds, all of which are custodial 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 Fiduciary Assets and Liabilities can be found on page 35 of this report and the Statement of Changes in Assets and Liabilities on page 164. 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 36-69 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 70. 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. 13 Government -wide Financial Analysis Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 Deschutes County Net Position The County's net position at June 30, 2020 was $219,550,000. 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. The largest portion (approximately 73%) 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 $75,890,000 or 35%. Due in part to the net pension liability and liability for Other Post -Employment Benefits (OPEB) and the impact on net position, the unrestricted category of net position is negative for both governmental activities and business -type activities by a total of $16,446,000. 14 Governmental activities Business -type activities Total 2020 2019 2020 2019 2020 2019 Assets other than capital assets $ 199,803,717 $ 194,428,002 $ 14,391,030 $ 14,463,818 $ 214,194,747 $ 208,891,820 Capital assets 151,818,864 147,378,907 47,523,513 45,694,913 199,342,377 193,073,820 Total assets 351,622,581 341,806,909 61,914,543 60,158,731 413,537,124 401,965,640 Deferred outflows of resources 54,126,674 35,717,249 1,788,773 1,296,156 55,915,447 37,013,405 Non-current liabilities 175,339,359 159,265,997 23,432,446 21,613,691 198,771,805 180,879,688 Current liabilities 33,420,353 32,044,865 2,565,313 1,797,003 35,985,666 33,841,868 Total liabilities 208,759,712 191,310,862 25,997,759 23,410,694 234,757,471 214,721,556 Deferred inflows of resources 14,662,661 15,754,783 481,910 542,820 15,144,571 16,297,603 Net position: Net investment in capital 121,372,936 115,293,413 38,733,640 35,942,205 160,106,576 151,235,618 Restricted 75,890,142 66,660,268 - - 75,890,142 66,660,268 Unrestricted (14,936,196) (11,495,168) (1,509,994) 1,559,167 (16,446,189) (9,936,001) Net position $ 182,326,882 $ 170,458,513 $ 37,223,647 $ 37,501,372 $ 219,550,529 $ 207,959,885 The largest portion (approximately 73%) 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 $75,890,000 or 35%. Due in part to the net pension liability and liability for Other Post -Employment Benefits (OPEB) and the impact on net position, the unrestricted category of net position is negative for both governmental activities and business -type activities by a total of $16,446,000. 14 Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Other taxes Other Total revenues Expenses: General government Public safety County roads Health and welfare Interest on long-term debt Solid waste Fair & expo center RV park Total expenses Excess (deficiency) before special items/transfers Transfers Change in net position Net position, Beginning of year Net position, End of year Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 Changes in Net Position Governmental activities Business -type activities FY 2020 FY 2019 FY 2020 FY 2019 Total FY 2020 FY 2019 $ 47,912,021 $ 46,332,254 $ 15,392,153 $ 14,983,466 $ 63,304,174 $ 61,315,720 59,658,417 53,767,845 53,167 107,740 59,711,584 53,875,585 145,584 30,000 - - 145,584 30,000 79,302,996 74,314,464 (1,902,514) 882,573 79,302,996 74,314,464 7,560,467 7,829,489 - - 7,560,467 7,829,489 4,888,442 5,151,181 358,306 334,098 5,246,748 5,485,279 199,467,926 187,425,233 15,803,625 15,425,304 215,271,551 202,850,537 50,607,355 32,523,927 - - 50,607,355 32,523,927 70,086,827 70,253,604 - 70,086,827 70,253,604 17,743,525 17,645,717 - 17,743,525 17,645,717 45,728,065 45,086,737 - 45,728,065 45,086,737 1,808,997 2,024,851 - - 1,808,997 2,024,851 - - 12,526,176 9,047,200 12,526,176 9,047,200 - 4,759,772 5,085,859 4,759,772 5,085,859 - - 420,191 409,672 420,191 409,672 185,974,769 167,534,837 17,706,139 14,542,731 203,680,908 182,077,568 13,493,157 19,890,396 (1,902,514) 882,573 11,590,643 20,772,969 (1,624,789) (1,638,051) 1,624,789 1,638,051 - - 11,868,368 18,252,345 (277,725) 2,520,624 11,590,643 20,772,969 170,458,513 152,206,168 37,501,374 34,980,750 207,959,887 187,186,918 $ 182,326,880 $ 170,458,513 $ 37,223,648 $ 37,501,374 $ 219,550,529 $ 207,959,887 15 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 The net position of the County increased by $11,591,000 during FY 2020. 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 $11,868,000 or 7%. Program expenses increased by 11%, program revenues increased by 8% and taxes increased by 5%. Governmental activities rely on general revenues to support the function. Property taxes make up the largest share of this support at 43% and are levied for general purposes, law enforcement, 9-1-1 operations and extension/4-11 services. Fees, fines and charges provide 26% 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 decreased net position by $278,000 or 1%. Solid Waste: The County's solid waste operation experienced a minor increase in net position of $15,000. The operating income during FY 2020 was $41,000, which was largely offset by changes in the closure and post -closure cost estimates. The full cost of operations includes depreciation and accrual of landfill closure and post -closure costs. Fair and Expo Center: The operating loss from the County's Fair & Expo Center was $2,023,000; however, as the Fair & Expo is a large contributor to the County's tourism industry, its losses are partially offset by transfers from the Transient Room Tax Funds and the General Fund. During FY 2020, the overall subsidy provided was $1,474,000. With the stay-at-home orders put in place during spring 2020, the Fair & Expo missed out on some of its most active months. Revenues were $382,000 less than the prior year and operating expenses were $344,000 less than the prior year. RV Park: Operating income for the RV Park was $38,000, a decrease of $56,000 from FY 2019. Utilization of the RV Park was 31.0% in FY 2020. Utilization during the months attributable to the COVID-19 saw a drop in utilization of 34.4%. With business -type activities, Solid Waste and the RV Park activities generated sufficient operating revenues during FY 2020 to cover operating expenses. Approximately 99% of program revenues for business -type activities come from charges for services. 16 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 Function/Program by Funding Type - Governmental Activities ■ Support from Program Revenues Support from General Revenues General government Public safety County roads Health and welfare Interest and fiscal charges 0 20 40 E1 Revenues by Source - Governmental Activities 0 50 150 80 Millions 200 Millions ■ Property taxes ■ Operating grants and contributions ■ Charges for services ■ Other taxes Investment revenues 17 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 Function/Program by Funding Type - Business -type Activities ■ Support from Program Revenues Support from Non -Program Revenues Solid Waste Fair and Expo Center RV Park I X R 10] Revenues by Source - Governmental Activities 0 5 ■ Charges for services 10 15 18 ■ Investment revenues 15 Millions 20 Millions Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 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, 2020, $146,582,000 is the reported combined ending fund balance for Deschutes County's governmental funds, a minor increase of $104,000 from June 30, 2019. 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): decrease of $3,705,000, -11% o Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District (combined): increase of $1,558,000, +9% o Road: decrease of $2,041,000, -16% o Road CIP: increase of $7,292,000, +41 % o Health Services: decrease of $2,638,000, -14% o PERS Reserve: decrease of $13,843,000, -84% NONMAJOR o Nonmajor special revenue: increase of $8,431,000, +27% o Nonmajor capital projects: increase of $4,929,000, +100% o Nonmajor debt service: increase of $122,000, +15% Significant Changes in Major Funds General Fund: As of June 30, 2020, the fund balance of Deschutes County's General Fund was $28,689,000. Of this fund balance, $15,068,000 is nonspendable, committed or assigned for specific use and $13,621,000 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, 2020, for the General Fund is 102% of total General Fund expenditures and 62% of total General Fund combined expenditures and transfers out. Deschutes County's General Fund balance decreased by $3,705,000, -11%, during Fiscal Year 2020. Revenues increased by $3,010,000, 7%, over the prior year. Property tax revenues increased by $2,103,000, 7%, intergovernmental payments were down $83,000 and payments contracts of sale increased by $915,000, 134%. Expenditures increased by $2,750,000, 11%. 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 $37,346,000, were paid to the Sheriffs fund where Sheriff s services expenditures are recorded. Combined fund balances of these three major funds increased by $1,558,000. Property tax revenue increased by 6.8% over the prior year. Road: The fund balance of the Road fund decreased by $2,041,000, or -16% during FY 2020. During FY 2020, $10,597,000 was transferred from the Road Fund to the Road Capital Improvement Plan fund. 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 2020 were consistent with amounts received in FY 2019, a slight increase of $69,000, 0.4%. The fund balance will be used in the future to maintain county road systems. 19 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 Road CIP: The County established a capital project fund in FY 2017 with annual transfers to be received from the Road Fund, a major fund, for capital improvement projects. Transfers into this fund during FY 2020 were $10,597,000 from the Road Fund and $835,000 from a non - major special revenue fund. Expenditures for road projects occurring during FY 2020 totaled $5,825,000. Overall change to fund balance was an increase of $7,292,000. Health Services: Fund balance for the Health Services Fund decreased by $2,638,000, or -14%. Revenue within the Health Services fund decreased by $6,059,000, or -15%, from the prior year, while expenditures increased by $2,361,000, 6%, over the prior year.With the future delivery model of health services changing in the future, fund balance is maintained to ensure continuation of services. PERS Reserve: The resources of the PERS Reserve have been increasing since FY 2015 for the purpose of offsetting future pension related expenditures. During FY 2020, the State of Oregon provided an opportunity to receive a 25% "match" for entities that contributed to side -accounts within the PERS pension system. The County leveraged the opportunity by making a $13M contribution, which resulted in the State of Oregon matching with a $3.25M contribution and the County liquidating its PERS reserve fund down to $2.5M. The PERS Reserve fund has been reported in FY 2020 as a major fund for consistency, and is anticipated to be reported as a non -major fund during FY 2021. The combined fund balances of the County's non -major special revenue funds, increased by $8,431,000. The Special Transportation fund grew by $4,315,000 during FY 2020 from the build-up of resources accumulated for transit -based projects to begin in FY 2021. The Transient Room Tax fund and Transient Room Tax -1% fund contributed a net increase of $979,000 to fund balance, despite lower tourism in the late months of FY 2020. The Community Development Department's fund balance increased by $746,000 due to the continued strength in real estate development, despite an economic slowdown due to COVID-19 stay-at-home orders. The County assesses fees for future transportation requirements and this contributed $487,000 to the fund balance of the Countywide Transportation SDC Improvement fund during FY 2020. The resources of the debt service fund increased by $122,000 during the fiscal year as the rentals received on the properties financed with debt exceeded the current year debt service expenditures. 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, 2020, the net position of the Solid Waste Department was $18,867,000, a minor increase of $15,000 compared to last year. Although net position remained steady, there was a $3,214,000 increase to the net investment in capital assets from the capital expansion of the landfill, and an unrelated offset of $2,756,277 for landfill closure and post -closure costs. Projections show the Solid Waste Department revenues will be continue to be adequate to cover the cost of current operations. 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, 2020 is of $11,187,000. The June 30, 2020 net position of the Fair and Expo Center was $16,648,000, a decrease of $521,000. As the Fair & Expo center is a reason why many people visit Central Oregon, beginning in FY 2019, resources from the County's transient room tax were made available to support this activity. The County opened its RV Park in July 2007. After an initial near -capacity usage during summer 2007, the effects of the recession impacted the operations through FY 2014. However, with a continued focus on marketing and a robust economy, the RV Park is a profitable enterprise. The unrestricted net position at June 30, 2020, was $1,709,000, an increase of $228,000. 20 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 General Fund Budgetary Highlights There were five budget adjustments to the General Fund's original budget during FY 2020. Three of the adjustments, totaling $81,782, were to appropriate new grant funds within the District Attorney and Veterans programs; whereas, the other two adjustments were to increase appropriation in the County Clerk by $17,911, Tax Office by $19,000, Property Management by $25,000, and non - departmental appropriation by $173,000. The County's assumptions for estimating revenues are conservative. The General Fund's actual revenues were $1,748,000 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 $1,211,000, approximately 3.2% of final appropriations. Factors contributing to this variance include unfilled positions in several departments and expenditures in the Clerk's Office for elections costs that were less than budgeted. 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, 2020, was $199,342,000, net of accumulated depreciation. The book value of the depreciable assets is 51% 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 3.13 on pages 47-48 of this report. Long-term debt. As of June 30, 2020, Deschutes County's outstanding bonded debt was $46,618,000, all of which is backed by the full faith and credit of the County. Pension Bonds Direct Borrowing Full Faith & Credit Total Governmental activities Business -type activities Total 2020 2019 2020 2019 2020 2019 8,595,000 $ 9,098,615 $ - 1,108,079 1,317,527 5,219,721 28,043,919 29,950,010 3,651,081 $ 8,595,000 $ 9,098,615 5,964,873 6,327,800 7,282,400 3,874,990 31,695,000 33,825,000 $ 37,746,998 $ 40,366,152 $ 8,870,802 $ 9,839,863 $ 46,617,800 $ 50,206,015 Deschutes County's bonded debt decreased by $3,588,000 during the fiscal year due to scheduled debt repayments. Moody's Investors Services upgraded the credit rating of Pension Bonds during June 2020 from Aa3 to Aa2. The rating is based on the weighted average credit quality of the pension -bond participants. Deschutes County is one participant of many in the limited tax bonds issued by the State of Oregon. Moody's Investors Services has assigned a credit rating of Aal to Deschutes County's Full Faith & Credit obligations. This rating was upgraded in FY 2019 through refinancing of the County's 2008 & 2009 Full Faith & Credit obligations, and was confirmed during an annual review in April 2020. 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 $44 billion, the current debt limitation for Deschutes County is $897,925,000. The County has no general obligation debt at June 30, 2020. Additional information on Deschutes County's long-term debt is included in Note 31 on pages 50-52 of this report. 21 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2020 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 2020 and included employer rates to be in effect July 1, 2021 through June 30, 2023. PERS actuaries anticipate additional significant employer rate increases effective July 1, 2023. 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, 2020 was $2,559,000. The purpose of the fund is to provide relief to departments as PERS rates increase. During FY 2020, Deschutes County made a $13M advance -contribution to its PERS plan and, as an incentive, was credited with a 25% match, or $16.25M total contribution. This advance contribution resulted in reductions to both short-term and long-term contribution rates. The County's FY 2021 budget includes a General Fund transfer to the PERS Reserve of $2,000,000, which will help to offset future PERS increases. The County's Assessed Valuation of Taxable Property increased from FY 2020 to FY 2021 by 5.4% to approximately $27.3 billion and this growth in assessed value is expected to continue. The annual property tax levy is based on the assessed value times the tax rate, not to exceed the permanent rate of $1.2783 per $1,000 of assessed valuation. For FY 2021, the County's general levy will be at a rate of $1.2183 per $1,000 of assessed value. This rate is consistent with the rate adopted for FY 2020. 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. 22 Basic Financial Statements As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon Statement of Net Position June 30, 2020 ASSETS Current assets: Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Inventory Prepaid expenses Total current assets Noncurrent assets: Capital assets not being depreciated: Land Construction in progress Capital assets net of accumulated depreciation: Infrastructure Land improvements Building and improvements Equipment and vehicles Intangible assets Total capital assets Notes, contracts, and assessments receivable, net of allowance Net OPEB RHIA asset Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Debt refunding Net pension liability Net OPEB RHIA asset Total deferred outflows of resources See notes to financial statements 23 Totals may not foot due to rounding Governmental Business - Type Activities Activities $ 56,971,072 126,389,158 2,759,782 7,711,847 2,690,983 470,921 196,993,763 13,848,841 4,975,353 52,407,432 2,048,654 60,276,924 16,002,658 2,259,002 151,818,864 1,539,825 1,270,129 154,628,818 351,622,581 695,761 53,388,687 42,226 54,126,674 $ 4,191,042 9,275,063 747,188 28,999 148,737 14,391,030 1,924,037 30,534 22,637,626 20,166,379 2,737,756 27,182 47,523,513 47,523,513 61,914,543 174,417 1,614,356 1,788,773 Total $ 61,162,114 135,664,221 2,759,782 8,459,036 2,719,982 619,658 211,384,793 15,772,878 5,005,888 52,407,432 24,686,280 80,443,303 18,740,414 2,286,183 199,342,377 1,539,825 1,270,129 202,152,331 413,537,124 870,178 55,003,043 42,226 55,915,447 Deschutes County, Oregon Statement of Net Position June 30, 2020 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 Total OPEB liability Net pension liability Bonds and notes payable (net of 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 Net pension liability Total OPEB liability Net OPEB RHIA asset Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Capital projects Debt service Public safety Road Health & welfare Unrestricted Total net position See notes to financial statements 24 Totals may not foot due to rounding Governmental Business - Type Activities Activities Total $ 9,132,465 134,100 8,240,748 15,913,040 33,420,353 10,509,063 25,094,565 111,353,101 39,166,713 5,128,958 (15,913,040) 175,339,359 208,759,712 5,676,954 8,722,400 263,307 14,662,661 121,372,936 30,014,988 824,932 18,501,037 10,690,544 15,858,641 (14,936,196) $ 1,020,684 16,400 125,547 1,401,386 2,564,018 424,321 892,601 3,367,071 8,964,289 11,186,845 (1,401,386) 23,433,741 25,997,759 171,659 310,251 481,910 38,733,640 (1,509,994) $ 10,153,149 150,500 8,366,296 17,314,427 35,984,371 10,933,384 25,987,166 114,720,172 48,131,002 5,128,958 11,186,845 (17,314,427) 198,773,100 234,757,471 5,848,613 9,032,651 263,307 15,144,571 160,106,576 30,014,988 824,932 18,501,037 10,690,544 15,858,641 (16,446,18 $ 182,326,882 $ 37,223,647 $ 219,550,529 Deschutes County, Oregon Statement of Activities Year Ended June 30, 2020 See notes to financial statements 25 Totals may not foot due to rounding Net (Expense) Revenue and Program Revenues Changes in Net Position Fees, Fines and Operating Capital Grants Charges for Grants and and Governmental Business -type Function/Program Expenses Services Contributions Contributions Activities Activities Total Governmental: General government $ 50,607,355 $ 16,303,016 $ 9,748,520 $ 14,288 $ (24,541,530) $ $ (24,541,530) Public safety 70,086,827 2,981,327 10,969,560 - (56,135,940) (56,135,940) County roads 17,743,525 25,465,962 - 131,296 7,853,733 7,853,733 Health & welfare 45,728,065 3,161,716 38,940,336 - (3,626,012) (3,626,012) Interest and fiscal charges 1,808,997 - - - (1,808,997) (1,808,997) Total governmental 185,974,769 47,912,021 59,658,417 145,584 (78,258,747) (78,258,747) activities Business -type: Solid Waste 12,526,176 12,254,566 - - (271,610) (271,610) Fair and Expo Center 4,759,772 2,702,878 53,167 (2,003,727) (2,003,727) RV Park 420,191 434,708 - 14,517 14,517 Total business -type 17,706,139 15,392,153 53,167 - - (2,260,820) (2,260,820) activities Total $ 203,680,908 $ 63,304,174 $ 59,711,584 $ 145,584 $ (78,258,747) $ (2,260,820) $ (80,519,567) General revenues: Taxes: Property taxes, levied for general purposes $ 40,987,718 $ - $ 40,987,718 Property taxes, levied for sheriff services 38,315,278 - 38,315,278 Transient room tax 7,560,467 - 7,560,467 Investment earnings 4,888,442 358,306 5,246,748 Transfers (1,624,789) 1,624,789 - Total general revenues and transfers 90,127,116 1,983,094 92,110,210 Change in net position 11,868,368 (277,725) 11,590,643 Net position - Beginning of year 170,458,514 37,501,372 207,959,886 Net position - Ending of year $ 182,326,882 $ 37,223,647 $ 219,550,529 See notes to financial statements 25 Totals may not foot due to rounding Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2020 LIABILITIES Accounts payable $ 2,337,671 $ 397,245 $ Countywide Law Rural Law 32,224 - - - - Unearned revenue Enforcement Enforcement - - - Due to other funds General Fund Sheriff District District Road ASSETS - - 855,318 DEFERRED INFLOWS OF RESOURCES Cash and cash equivalents $ 10,247,237 $ 117,346 $ 3,733,679 $ 1,972,097 $ 2,599,151 Investments, at fair value; - - 131,633 Unavailable revenue - services provided 7,083 281,513 - - 13,108 plus accrued interest 22,731,008 253,793 8,288,398 4,377,608 5,766,530 Taxes receivable 704,091 - 591,652 244,689 - Accounts receivable 414,545 366,873 - - 502,306 Notes, contracts, and assessments receivable 795,605 - - - 131,633 Due from other funds 343,104 - - - - Inventory - - - - 2,690,983 Total assets $ 35,235,590 $ 738,013 $ 12,613,729 $ 6,594,394 $ 11,690,603 LIABILITIES Accounts payable $ 2,337,671 $ 397,245 $ - $ - $ 855,318 Deposits 32,224 - - - - Unearned revenue 2,930,150 59,254 - - - Due to other funds - - - - Total liabilities 5,300,046 456,500 - - 855,318 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 592,319 - 500,531 206,556 - Unavailable revenue - special assessments - - - - 131,633 Unavailable revenue - services provided 7,083 281,513 - - 13,108 Unavailable revenue - contracts of sale 646,996 - - - - Total deferred inflows of resources 1,246,398 281,513 500,531 206,556 144,741 FUND BALANCES Nonspendable 148,609 - - - 2,690,983 Restricted - - 12,113,199 6,387,839 7,999,561 Committed 7,557,563 - - - - Assigned 7,362,270 - - - - Unassigned 13,620,704 - - - - Total fund balances 28,689,146 - 12,113,199 6,387,839 10,690,544 Total liabilities, deferred inflows of resources and fund balances $ 35,235,590 $ 738,013 $ 12,613,729 $ 6,594,394 $ 11,690,603 See notes to financial statements 26 Totals may not foot due to rounding ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes, contracts, and assessments receivable Due from other funds Inventory Total assets LIABILITIES Accounts payable Deposits Unearned revenue Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - special assessments Unavailable revenue - services provided Unavailable revenue - contracts of sale Total deferred inflows of resources FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total fund balances Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2020 Road Capital - - 181,231 Other Total Improvement Health PERS Governmental Governmental Plan Services Reserve Funds Funds $ 7,949,718 $ 6,224,401 $ 795,138 $ 13,806,772 $ 47,445,539 17,638,089 13,804,571 1,764,177 30,630,622 105,254,798 - - - 1,219,351 2,759,782 609,950 4,131,561 - 1,532,554 7,557,789 - - - 612,587 1,539,825 - - - - 343,104 - - - - 2,690,983 $ 26,197,757 $ 24,160,532 $ 2,559,315 $ 47,801,885 $167,591,820 $ 501,710 $ 840,187 - 3,377 - 4,870,123 .)VI, / IV J, / 1 J, V O/ $ - $ 1,361,112 $ 6,293,244 - 35,602 305,382 8,164,909 - 343,104 343,104 - 2,009,598 14,836,859 - - - 181,231 1,480,636 - - - - 131,633 609,950 2,588,204 - 413,777 3,913,636 - - - - 646,996 609,950 2,588,204 - 595,007 6,172,901 - - - - 2,839,592 25,086,097 15,858,641 - 39,040,517 106,485,853 - - 2,559,315 6,195,797 16,312,674 - - - - 7,362,270 - - - (39,033) 13,581,671 25,086,097 15,858,641 2,559,315 45,197,281 146,582,060 Total liabilities, deferred inflows of resources and fund balances $ 26,197,757 $ 24,160,532 $ 2,559,315 $ 47,801,885 $167,591,820 See notes to financial statements Totals may not foot due to rounding 27 Deschutes County, Oregon Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2020 Total fund balances for governmental funds $ 146,582,060 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. Prepaid expenses Deferred outflows of resources Net OPEB RHIA asset Net pension liability Debt refunding costs Oregon PERS OPEB RHIA Plan 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 not be collected soon enough to pay for the current year's expenditures and, therefore, are reported as deferred inflows of resources in the governmental 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, 2020, are: Accrued interest on bonds and notes payable Bonds and notes payable Unamortized premium and discount on bonds Total OPEB liability Net pension liability Compensated leave Noncurrent liabilities and accrued interest Deferred inflows of resources Total OPEB liability Net OPEB RHIA asset Net pension liability Net position of governmental activities See notes to financial statements 28 Totals may not foot due to rounding (134,100) (37,746,998) (1,419,715) (23,169,970) (103,061,139) (9,509,704) 150,294,988 270,711 42,226 49,413,073 695,761 1,270,129 16,237,868 6,132,664 (175,041,626) (8,053,447) (263,307) (5,254,217) $ 182,326,882 Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended June 30, 2020 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 Debt service: Principal payments Interest Trustee fees Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) $ 31,328,178 $ - 33,525 - 20,850 459,380 919,482 497 631,950 - 4,678,420 40,271,233 2,563,060 696,872 3,026 84,971 1,595,944 - 111,839 49,073 41,886,275 41,562,026 19,056,764 6,927,385 525,956 43,466,357 Countywide Law Rural Law Enforcement Enforcement T.'..4�.'..4 T.'..4...'..4 73.....7 $ 27,305,892 $ 11,047,333 $ - - - 24,635 357,647 193,849 301,019 - - 1,150 - - 20,664,207 - - 1,582,603 - - 14,709 27,663,539 11,241,182 22,588,323 25,357,755 11,988,546 - - - 12,908,103 1,588,244 1,215,914 - - 1,124,323 28,098,348 44,682,271 25,357,755 11,988,546 14,032,426 13,787,926 (3,120,245) 2,305,784 (747,364) 8,555,897 Transfers in 791,302 3,392,036 - - - Transfers out (18,284,142) (271,791) - - (10,596,974) Total other financing sources (uses) (17,492,840) 3,120,245 - - (10,596,974) Net change in fund balances (3,704,913) - 2,305,784 (747,364) (2,041,077) Fund balances - Beginning of year 32,394,059 - 9,807,414 7,135,202 12,731,621 Fund balances - End of year $ 28,689,146 $ - $ 12,113,199 $ 6,387,839 $ 10,690,544 See notes to financial statements 29 Totals may not foot due to rounding Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended June 30, 2020 EXPENDITURES Current: General government Road Capital 51,467,588 Public safety Other Total County roads Improvement Health PERS Governmental Governmental Debt service: Plan Services Reserve Funds Funds REVENUES - - - 1,909,000 1,909,000 Trustee fees - - - 1,600 1,600 Taxes - property $ - $ - $ - $ 9,722,860 $ 79,404,263 Taxes - other - - - 7,560,467 7,560,467 Licenses and permits - 179,740 - 1,614,708 1,827,973 Fines, forfeitures and penalties - - - 835,015 1,315,245 Special assessments - - - - 24,635 Investment earnings 514,969 489,083 285,706 1,106,973 4,169,225 Rents - 6,266 - 1,319,233 1,958,599 Intergovernmental 1,058,217 30,629,010 3,250,000 16,227,125 116,778,213 Charges for services 111,340 3,239,703 - 11,355,609 19,549,186 Contributions and donations - 374,010 - 5,215 467,223 Payments on contracts of sale - - - - 1,595,944 Other - - - 1,785 177,407 Total revenues 1,684,526 34,917,813 3,535,706 49,748,990 234,828,378 EXPENDITURES Current: General government - - 19,379,150 13,031,674 51,467,588 Public safety - - - 17,355,820 105,095,862 County roads - - - 1,026,112 13,934,215 Health and welfare - 43,109,359 - 1,325,349 44,960,663 Debt service: 11,431,979 5,553,764 Principal payments - - - 2,619,154 2,619,154 Interest - - - 1,909,000 1,909,000 Trustee fees - - - 1,600 1,600 Capital outlay 5,824,653 - - 3,159,999 12,913,134 Total expenditures 5,824,653 43,109,359 19,379,150 40,428,708 232,901,216 Excess (deficiency) of revenues $ 25,086,097 $ 15,858,641 over expenditures (4,140,127) (8,191,546) (15,843,444) 9,320,281 1,927,163 OTHER FINANCING SOURCES (USES) Transfers in 11,431,979 5,747,090 2,000,000 9,950,314 33,312,721 Transfers out - (193,326) - (5,789,169) (35,135,401) Total other financing sources (uses) 11,431,979 5,553,764 2,000,000 4,161,145 (1,822,681) Net change in fund balances 7,291,852 (2,637,782) (13,843,444) 13,481,426 104,482 Fund balances - Beginning of year 17,794,245 18,496,423 16,402,758 31,715,855 146,477,578 Fund balances - End of year $ 25,086,097 $ 15,858,641 $ 2,559,315 $ 45,197,281 $146,582,060 See notes to financial statements 30 Totals may not foot due to rounding 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, 2020 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds Financial resources received that are not revenues in the statement of activities Payments on land sale contracts Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds Unavailable revenue - services provided Unavailable revenue - special assessments and property taxes Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statement of net position Repayments on long-term debt Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. Acquisition of capital assets (includes $1.3M of capitalized material and services costs) 14,211,789 Depreciation and amortization expense (9,753,885) Net effect of miscellaneous transactions involving capital assets (sales, trade-ins and adjustments) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds Amortization of deferred debt refunding cost (52,618) Amortization of bond premium / (discount), net 146,621 (Increase) / decrease in accrued interest 7,600 (Increase) / decrease in compensated leave (1,144,533) Increase / (decrease) in prepaid expense (14,395) (Increase) / decrease in total OPEB liability (1,136,751) (Increase) / decrease in deferred inflows - total OPEB liability 852,664 Increase / (decrease) in net OPEB RHIA asset 278,877 Increase / (decrease) in deferred outflows - net OPEB RHIA asset 19,047 (Increase) / decrease in deferred inflows - net OPEB RHIA asset (81,223) (Increase) / decrease in net pension liability (17,667,948) Increase / (decrease) in deferred outflows - net pension liability 17,557,908 (Increase) / decrease in deferred inflows - net pension liability 155,885 Increase in internal service fund net position Total net adjustments - year ended June 30, 2020 Change in net position of governmental activities - year ended June 30, 2020 See notes to financial statements 31 Totals may not foot due to rounding 104,482 (1,600,533) 3,913,636 (125,901) 2,619,154 4,457,904 591 (1,078,866) 3,577,901 11,763,887 $ 11,868,369 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, 2020 Enterprise Funds Fair & Expo Internal Solid Waste Center RV Park Total Service Funds $ 3,675,288 $ 280,666 $ 235,088 $ 4,191,042 8,146,287 607,851 520,926 9,275,063 729,698 17,490 - 747,188 - 28,999 - 28,999 - 148,737 - 148,737 12,551,273 1,083,743 756,014 14,391,030 1,791,352 132,685 - 1,924,037 - 30,534 - 30,534 16,620,610 4,545,972 1,471,044 22,637,626 6,798,498 12,706,324 661,556 20,166,379 2,398,913 338,843 - 2,737,756 27,182 - - 27,182 27,636,554 17,754,358 2,132,600 47,523,513 40,187,827 18,838,102 2,888,614 61,914,543 $ 9,525,533 21,134,360 154,058 200,210 31,014,161 22,405 510,514 990,958 1,523,877 32,538,038 DEFERRED OUTFLOWS OF RESOURCES 173,848 - 424,321 599,143 293,458 Debt refunding 170,811 3,606 - 174,417 - Net pension liability 1,010,915 603,441 - 1,614,356 3,975,614 Total deferred outlows of resources 1,181,726 607,047 - 1,788,773 3,975,614 LIABILITIES 2,121,993 951,462 23,433,741 22,187,118 2,630,611 Current liabilities: 25,997,759 (456,862) 729,021 (1,509,994) 14,713,991 Total net position Accounts payable 869,864 125,662 25,159 1,020,684 2,839,221 Accrued interest 13,800 800 1,800 16,400 - Unearned revenues - 125,512 35 125,547 - Current portion of noncurrent liabilities 943,169 256,643 201,575 1,401,386 3,618,768 Total current liabilities 1,826,832 508,617 228,568 2,564,018 6,457,989 Noncurrent liabilities: Compensated leave Total OPEB liability Net pension liability Bonds and notes (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 250,473 173,848 - 424,321 599,143 293,458 - 892,601 2,108,471 1,258,600 Total OPEB liability 3,367,071 7,158,522 652,730 1,153,037 8,964,289 11,186,845 - - 11,186,845 (943,169) (256,643) (201,575) (1,401,386) 20,360,285 2,121,993 951,462 23,433,741 22,187,118 2,630,611 1,180,031 25,997,759 999,358 1,924,595 8,291,961 5,128,958 (3,618,768) 12,726,105 19,184,093 DEFERRED INFLOWS OF RESOURCES Net pension liability 107,493 64,165 - 171,659 422,737 Total OPEB liability 208,251 102,000- 310,251 668,953 Total deferred inflows of resources 315,744 166,166 - 481,910 1,091,690 NET POSITION Net investment in capital assets 20,648,843 17,105,235 979,563 38,733,640 1,523,877 Unrestricted (1,782,152) (456,862) 729,021 (1,509,994) 14,713,991 Total net position $ 18,866,691 $ 16,648,372 $ 1,708,583 $ 37,223,647 $ 16,237,868 See notes to financial statements 32 Totals may not foot due to rounding Deschutes County, Oregon Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2020 NONOPERATING REVENUES (EXPENSES) Grants - Enterprise Funds - 53,167 - Investment earnings Fair & Expo 20,211 18,812 Internal 719,217 Solid Waste Center RV Park Total Service Funds OPERATING REVENUES Interest expense (181,683) (13,873) (23,913) (219,469) Charges for services $ 12,145,866 $ 2,702,878 $ 434,708 $ 15,283,453 $ 38,590,437 Miscellaneous 108,700 - - 108,700 - Total operating revenues 12,254,566 2,702,878 434,708 15,392,153 38,590,437 OPERATING EXPENSES Transfers in - 1,473,945 195,000 1,668,945 Personnel 2,424,606 1,296,439 - 3,721,044 9,139,563 Materials and services 4,273,227 2,733,300 290,034 7,296,562 26,549,664 Landfill closure/postclosure care costs 2,756,277 - - 2,756,277 - Depreciation 2,759,087 696,671 106,244 3,562,003 254,707 Total operating expenses 12,213,197 4,726,410 396,278 17,335,886 35,943,933 Operating income (loss) 41,369 (2,023,532) 38,430 (1,943,733) 2,646,504 NONOPERATING REVENUES (EXPENSES) Grants - 53,167 - 53,167 - Investment earnings 319,283 20,211 18,812 358,306 719,217 Special item - Change in estimate - - - - - Interest expense (181,683) (13,873) (23,913) (219,469) - Gain or (loss) on assets (131,296) (19,489) - (150,785) 14,288 Total nonoperating revenues (expenses) 6,304 40,015 (5,101) 41,219 733,505 Income (loss) before transfers 47,674 (1,983,517) 33,329 (1,902,514) 3,380,009 Transfers in - 1,473,945 195,000 1,668,945 538,850 Transfers out (32,365) (11,791) - (44,156) (340,958) (32,365) 1,462,154 195,000 1,624,789 197,892 Change in net position 15,309 (521,363) 228,329 (277,725) 3,577,901 Net position - Beginning of year 18,851,382 17,169,736 1,480,254 37,501,372 12,659,967 Net position - End of year $ 18,866,691 $ 16,648,372 $ 1,708,583 $ 37,223,647 $ 16,237,868 See notes to financial statements 33 Totals may not foot due to rounding Deschutes County, Oregon Proprietary Funds Statement of Cash Flows Year Ended June 30, 2020 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Transfers in Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities 53,167 - 53,167 - 1,473,945 195,000 1,668,945 538,850 (32,365) (11,791) - (44,156) (340,958) (32,365) 1,515,320 195,000 1,677,955 197,892 (5,335,408) (205,979) - (5,541,387) (221,881) (685,028) (86,335) (197,697) (969,061) - (176,616) (13,815) (24,113) (214,544) - (6,197,052) (306,130) (221,810) (6,724,991) (221,881) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (113,805) 175,309 (93,700) (32,195) (1,316,516) Interest 257,204 17,122 14,116 288,443 549,583 Net cash provided (used) by investing activities 143,400 192,431 (79,583) 256,247 (766,933) 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 Net pension liability Accounts payable Claims payable Unearned revenues Compensated leave Total OPEB liability 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 foot due to rounding (20,301) Enterprise Funds 39,069 (68,600) Fair & Expo 423,862 Internal Solid Waste Center RV Park Total Service Funds CASH FLOWS FROM OPERATING 9,101,672 $ 3,675,288 $ ACTIVITIES $ 235,088 $ 4,191,042 Receipts from customers $ 12,230,553 $ 2,562,362 $ 427,351 $ 15,220,266 $ 38,623,455 Payments to employees (2,393,257) (1,424,612) - (3,817,870) (9,519,544) Payments to suppliers (3,771,579) (2,626,740) (281,888) (6,680,207) (27,889,127) Net cash provided (used) by operating activities 6,065,716 (1,488,990) 145,463 4,722,189 1,214,784 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Transfers in Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities 53,167 - 53,167 - 1,473,945 195,000 1,668,945 538,850 (32,365) (11,791) - (44,156) (340,958) (32,365) 1,515,320 195,000 1,677,955 197,892 (5,335,408) (205,979) - (5,541,387) (221,881) (685,028) (86,335) (197,697) (969,061) - (176,616) (13,815) (24,113) (214,544) - (6,197,052) (306,130) (221,810) (6,724,991) (221,881) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (113,805) 175,309 (93,700) (32,195) (1,316,516) Interest 257,204 17,122 14,116 288,443 549,583 Net cash provided (used) by investing activities 143,400 192,431 (79,583) 256,247 (766,933) 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 Net pension liability Accounts payable Claims payable Unearned revenues Compensated leave Total OPEB liability 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 foot due to rounding (20,301) (87,368) 39,069 (68,600) 423,862 3,695,589 368,034 196,019 4,259,642 9,101,672 $ 3,675,288 $ 280,666 $ 235,088 $ 4,191,042 $ 9,525,534 $ 41,369 $ (2,023,532) $ 38,430 $ (1,943,733) $ 2,646,504 2,759,087 696,671 106,244 3,562,003 254,707 (24,014) 80,792 - 56,778 33,018 - 49,469 - 49,469 (39,155) 18,747 (145,328) - (126,581) (420,005) 501,648 54,860 5,094 561,602 619,744 - - - - (1,920,052) - (221,308) (4,305) (225,613) - 32,047 28,911 - 60,958 102,487 (19,446) (9,524) - (28,970) (62,464) 2,756,277 - - 2,756,277 - $ 6,065,716 $ (1,488,990) $ 145,463 $ 4,722,189 $ 1,214,784 $ 62,981 $ 4,194 $ 4,265 $ 71,440 $ 17,205 34 Deschutes County, Oregon Fiduciary Funds Statement of Assets and Liabilities June 30, 2020 Agency Fund Assets Cash and cash equivalents $ 1,882,655 Investments, at fair value; plus accrued interest 4,177,059 Accounts receivable 45,269 Total assets $ 6,104,983 Liabilities Accounts payable $ 1,418,066 Due to other governments 1,671,993 Due to others 3,014,924 Total liabilities $ 6,104,983 See notes to financial statements 35 Totals may not foot due to rounding Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 41) — 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 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. Indirect expenses, as charged by internal service funds, are included as part of the specific function or segment expenses as shown on the Statement of Activities. 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 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. 36 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 when 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 (custodial) 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/expenses. Separate statements for each fund category, governmental, proprietary or fiduciary, are presented. The County maintains certain additional sub -funds for its 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 Sheriff's 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 Sheriff's 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. 37 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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. Road Capital Improvement Plan. The financial resources, primarily transfers from the Road fund, are used for CIP projects on the County's roads, bridges, culverts, street lighting and drainage. 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 to off -set increases in the cost of retirement benefits as a result of an increase 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 landfill and transfer station sites. Fair & Expo Center accounts for the operations of the County's Fair & Expo Center, including the annual county fair. RV Park accounts for the operation and maintenance of the County's recreational vehicle park. 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. Custodial 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 pursuant to Oregon Budget Law as adopted under Oregon Revised Statute Chapter 294. Any deviation between Oregon Budget Law and GAAP are treated as reconciling items on the budget to actual schedules. The County adopts annual budgets for each of its funds and sub -funds, as required by State law. The County does not prepare budgets for its fiduciary funds. 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, special payments, 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 appropriated 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. 38 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 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, 2020, 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 reported 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. For governmental funds, purchases of inventory are recorded as expenditures when purchased. Inventories of governmental funds are reported as an asset with a corresponding offset to nonspendable fund balance. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as expenditures in governmental funds and as prepaid items in the government -wide and proprietary fund financial statements. 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. 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 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, using a half-year convention, over the following estimated useful lives: Assets Years Buildings 30-60 Building improvements 10-15 Land improvements 10-30 Equipment and vehicles 2-20 Infrastructure 20-50 Intangibles 3-10 39 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 5. Deferred outflows/ inflows of resources The statement of net position includes 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 and 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, services provided 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, and family emergency), compensatory time and sick leave. Except in the two cases 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, and 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/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. Total other post -employment benefits (asset)/liability (Total OPEB (asset)/liability)) The Total OPEB liability is reported 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 for an other post -employment plan that is not associated with any offsetting fiduciary net positions of a trust. 9. Net other post -employment benefits (asset)/liability (Net OPEB (asset)/liability)) The Net OPEB asset or liability is reported as non-current asset or as non-current liability, as applicable, in the proprietary statement of net position and in the government -wide statement of net position. The asset or liability reflects the present value of expected future payments less the fiduciary net position of the trustee. 10. 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. 11. 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 the General Fund's long-term receivables. 40 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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). This classification includes the long-term receivables of the special revenue funds. 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 on December 15, 2014. 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 reduces restricted amounts first, 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. 12. Tax Abatements Governmental Accounting Standards Board's Statement No. 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 2020 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 budgets to the Budget Officer for each fund for which they are responsible. The Budget Officer is appointed by the Board of County Commissioners. Based on the budgets submitted by County department personnel, the Budget Officer 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 of such resources for the ensuing year. The proposed budget is presented by the Budget Officer to the Budget Committee for approval. 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. 41 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 In accordance with State statutes, appropriations are approved before the beginning of the fiscal year and lapse at June 30 of the year of appropriation. Encumbrances are not reported in the financial statements. B. Funds with Negative Fund Balance / Negative Net Position Negative fund balance is reported in one Special Revenue Fund: Victims' Assistance - $39,033. Grant reimbursements for services provided were not received until after 60 days from June 30, 2020, resulting in a deferred inflow of resources. Negative net position is reported in six of the Internal Service Funds: Facilities — $1,174,172 Administrative Services — $792,790, Board of County Commissioners - $141,143, Legal — $799,844, Human Resources - $659,643 and Information Technology $1,575,101. For each of these funds, the negative net position balances are due to (1) noncurrent liabilities for compensated absences, (2) Total OPEB liability and (3) net pension 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. 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, 2020 as follows: Insured (FDIC) $ 285,439 Collateralized by securities held by the pledging financial institution in the financial institution's name 16,221,375 Total $ 16,506,814 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. 42 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Investments As of June 30, 2020, the County had the following investments and maturities: Investment Type Federal agency securities Corporate notes Municipal bonds Total fair value Portfolio weighted average maturity Accrued interest Investments, at fair value; plus accrued interest Fair Value $ 73,909,890 55,277,886 9,902,658 139,090,435 750,846 $ 139,841,281 Weighted Average Maturity (Days) 284 317 385 304 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 weighted average portfolio maturity be two years, or less. 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 less than 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. The County's investments in certain types of securities are required to be rated by nationally recognized statistical rating organizations. Commercial paper and corporate bonds must be rated at least Al/P1/F1 or A2/A/A respectively by at least two nationally recognized statistical rating organizations. State and Municipal securities are required to be rated at least Aa3/AA-/AA-. As of June 30, 2020, the County's investments in corporate bonds were rated Al to AAA and its state and municipal securities were rated Aa3 to Aal. United States Government agencies and instrumentalities that are only implicitly guaranteed by the United States were rated AAA. Certain agency and treasury securities are either principal or interest coupons stripped from otherwise rated securities. 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, $50,400,000 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, 2020, 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. 43 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Local Government Investment Pool. The Local Government Investment Pool (LGIP) is included in the Oregon Short Term Fund (OSTF), which was established by the State Treasurer. OSTF is not subject to SEC regulation. OSTF is subject to requirements established in Oregon Revised Statutes, investment policies adopted by the Oregon Investment Council, and portfolio guidelines established by the Oregon Short Term Fund Board. The Governor appoints the members of the Oregon Investment Council and the Oregon Short Term Fund Board. The LGIP is an open-ended, no-load diversified portfolio offered to eligible participants who by law are made custodian of, or have control over, any public funds. The OSTF (including LGIP) are not rated by the credit rating agencies; however, it does target a composite rating of AA (S&P) for its holdings. At June 30, 2020, the fair value of the County's position in the pool is the same as the value of the pool shares, which approximates cost; and, the composite credit rating of the OSTF's holdings on June 30, 2020 was AA (S&P). The County's participation in LGIP is voluntary. Weighted average maturity is 202 days. 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, 2020 as follows: Reconciliation of deposits and investments to the Statement of Net Position and Statement of Fiduciary Assets and Liabilities Total deposits $ 13,355,872 Total investments, at fair value plus accrued interest 189,530,178 Total cash and cash equivalents and investments $ 202,886,050 Included in the following captions: Statement of Net Position Cash and cash equivalents $ 61,162,114 Total investments, at fair value; plus accrued interest 135,664,221 Total Statement of Net Position 196,826,335 Statement of Fiduciary Assets and Liabilities - Agency Funds Cash and cash equivalents Investments, at fair value; plus accrued interest Total Fiduciary Funds Total cash and cash equivalents and investments 1,882,655 4,177,059 6,059,715 $ 202,886,050 GASB Statement No. 72, Fair Value Measurement and Application, 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. 44 As of June 30, 2020 Federal Agency Securities Corporate Notes Municipal Bonds Total assets B. Receivables Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) $ 73,909,890 $ - $ 73,909,890 $ - 55,277,886 - 55,277,886 - 9,902,658 - 9,902,658 - $ 139,090,435 $ - $ 139,090,435 $ - Receivables, as of year-end, for the major funds and the nonmajor funds and internal service funds, in the aggregate, including the applicable allowances for uncollectible accounts are as follows: Total $ 1,753,627 $ 1,006,155 $ 2,759,782 $ 8,459,036 $ 1,539,825 $ 12,758,642 At June 30, 2020, $534,338, net of allowance for uncollectible amounts of $534,338, is due from unpaid health -services billings provided in the Health Services major fund. Accounts receivable for outstanding traffic fines and violations in the agency fund have not been accrued and are considered uncollectible. 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, 2020, $646,996 is due on contracts from sales of real property, $148,609, net of allowance for uncollectible amounts of $51,500, is due from economic development loans, and $612,587 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. As of June 30, 2020, $131,633 is due from local improvement district assessments. 45 Notes, Property Transient Contacts, and Taxes Room Taxes Total Taxes Accounts Assessments Receivable Receivable Receivable Receivable Receivable Total General Fund $ 704,091 $ - $ 704,091 $ 414,545 $ 795,605 $ 1,914,241 Sheriff - - - 366,873 - 366,873 Countywide Law 591,652 - 591,652 - - 591,652 Rural Law 244,689 - 244,689 - - 244,689 Road - - - 502,306 131,633 633,940 Road CIP - - - 609,950 - 609,950 Health Services - - - 4,131,561 - 4,131,561 Solid Waste - - - 729,698 - 729,698 Fair & Expo - - - 17,490 - 17,490 Nonmajor Gov't 213,195 1,006,155 1,219,351 1,532,554 612,587 3,364,491 Internal Service - - - 154,058 - 154,058 Total $ 1,753,627 $ 1,006,155 $ 2,759,782 $ 8,459,036 $ 1,539,825 $ 12,758,642 At June 30, 2020, $534,338, net of allowance for uncollectible amounts of $534,338, is due from unpaid health -services billings provided in the Health Services major fund. Accounts receivable for outstanding traffic fines and violations in the agency fund have not been accrued and are considered uncollectible. 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, 2020, $646,996 is due on contracts from sales of real property, $148,609, net of allowance for uncollectible amounts of $51,500, is due from economic development loans, and $612,587 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. As of June 30, 2020, $131,633 is due from local improvement district assessments. 45 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 — defined benefit pension and OPEB Plans: the contributions made to OPERS during the year ended June 30, 2020 and other items related to the County defined benefit pension plans have been classified as a deferred outflow of resources. Deferred outflows — OPEB RHIA: the contributions made to OPERS for its other post -employment RHIA component during the year ended June 30, 2020. Deferred Outflows of Resources Deferred outflows - Refunding County buildings (FF&C 2003 and FF&C 2019) Total deferred outflows - refunding Deferred outflows - Defined Benefit Pension Plan Differences between expected and actual experience Changes of assumptions Changes in proportionate share Contributions subsequent to the measurement date Total deferred outflows -pension Deferred outflows - OPEB RHIA Contributions subsequent to the measurement date Total deferred outflows of resources 46 Governmental Activities Business -Type Activities Total $ 695,761 $ 174,417 $ 870,178 695,761 174,417 870,178 6,140,795 15,106,318 3,505,620 28,635,954 53,388,687 42,226 $ 54,126,674 185,684 456,782 106,002 865,888 1,614,356 6,326,479 15,563,100 3,611,622 29,501,842 55,003,043 - 42,226 $ 1,788,773 $ 55,915,447 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 D. Capital Assets Capital asset activity for the year ended June 30, 2020 was as follows: June 30, 2019 Increases Decreases June 30, 2020 Governmental Activities Capital assets, not being depreciated: Land $ 13,470,541 $ 378,300 $ - $ 13,848,841 Construction in progress 5,026,234 9,537,950 (9,588,830) 4,975,354 Total capital assets, not being depreciated 18,496,775 9,916,250 (9,588,830) 18,824,195 Capital assets, being depreciated: (21,526,313) (1,717,170) 584,764 (22,658,719) Buildings and improvements 92,172,684 5,029,403 - 97,202,087 Land improvements 5,425,274 45,910 - 5,471,184 Equipment 32,924,469 1,798,156 (777,445) 33,945,180 Vehicles 10,908,630 1,242,488 (976,130) 11,174,988 Infrastructure 119,522,583 5,194,042 - 124,716,625 Intangible assets 7,004,606 1,101,741 - 8,106,347 Total capital assets, being depreciated 267,958,246 14,411,740 (1,753,575) 280,616,411 Less accumulated depreciation for: Buildings and improvements (34,555,782) (2,369,381) - (36,925,163) Land improvements (3,243,786) (178,744) - (3,422,530) Equipment (21,526,313) (1,717,170) 584,764 (22,658,719) Vehicles (6,321,430) (1,015,563) 878,200 (6,458,793) Infrastructure (67,995,407) (4,313,784) - (72,309,191) Intangible assets (5,433,396) (413,950) - (5,847,346) Total accumulated depreciation (139,076,114) (10,008,592) 1,462,964 (147,621,742) Total capital assets, being depreciated, net 128,882,132 4,403,148 (290,611) 132,994,669 Governmental activities capital assets, net $ 147,378,907 $ 14,319,398 $ (9,879,441) $ 151,818,864 47 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 June 30, 2019 Increases Decreases June 30, 2020 Business -type activities: Capital assets, not being depreciated: Land $ 1,924,037 $ - $ - $ 1,924,037 Construction in progress 49,779 30,534 (49,779) 30,534 Total capital assets, not being depreciated 1,973,816 30,534 (49,779) 1,954,571 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 32,501,586 - - 32,501,586 43,530,245 5,350,755 - 48,881,000 9,315,966 185,276 (595,551) 8,905,691 435,954 - - 435,954 146,034 - - 146,034 85,929,785 5,536,031 (595,551) 90,870,265 (11,608,365) (726,843) - (12,335,208) (23,833,978) (2,409,396) - (26,243,374) (6,380,451) (389,429) 469,366 (6,300,514) (278,762) (24,612) - (303,374) (107,132) (11,721) - (118,853) (42,208,688) (3,562,001) 469,366 (45,301,323) 43,721,097 1,974,030 (126,185) 45,568,942 $ 45,694,913 $ 2,004,564 $ (175,964) $ 47,523,513 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 2,218,936 Public safety 2,221,120 County roads 4,966,500 Health and welfare 349,502 9,756,058 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 252,534 Total depreciation expense - governmental activities $ 10,008,592 Business -type activities: Solid waste $ 2,759,087 Fair & Expo center 696,671 RV Park 106,243 Total depreciation expense -business-type activities $ 3,562,001 48 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Operating Leases — County as Lessor of Real Property The County received $1.7 million in lease rental revenue for the year ended June 30, 2020, and the County expects to receive approximately $7.7 million in lease rental income over the next 5 years under non -cancelable leases which were in effect at June 30, 2020. These leases are cancelable if annual appropriations are not included in the lessee's annual appropriation resolution. Fiscal Year Ending June 30, Amount 2021 $ 1,631,216 2022 1,497,810 2023 1,529,434 2024 1,528,829 2025 1,547,477 $ 7,734,767 The carrying value of real property, leased under non -cancelable operating leases, was $9.8 million as of June 30, 2020, and depreciation expense for Fiscal Year 2020 was $258,000. E. Interfund Activity Interfund Transfers: Transfers In Sheriffs Health PERS Nonmajor Internal Fair & Expo General Office Road CIP Services Reserve Gov't Service Center RV Park Total General Fund $ $ 240,249 $ $ 5,747,090 $ 2,000,000 $ 9,557,953 $ 538,850 $ 200,000 $ $ 18,284,142 Sheriffs Office - 271,791 - - 271,791 Road 10,596,974 - 10,596,974 Health Services 193,326 - 193,326 Solid Waste 32,365 32,365 Fair & Expo 11,791 - - - 11,791 Nonmajor Gov't 212,862 3,151,787 835,005 120,571 1,273,945 195,000 5,789,169 Internal Service 340,958 - - - - - 340,958 Total $ 791,302 $3,392,036 $ 11,431,979 $ 5,747,090 $ 2,000,000 $ 9,950,314 $ 538,850 $ 1,473,945 $ 195,000 $ 35,520,515 Interfund transfers are utilized for the following purposes: Certain special revenue funds, the Fair & Expo Center and Internal Service funds require additional resources from the General Fund for operations; certain debt service funds require transfers from operating funds to meet annual debt service requirements; resources are transferred from some operating funds to the vehicle replacement reserve fund (a sub -fund of the General Fund) and the RV Park requires additional resources from a special revenue fund to meet its debt service requirements. Resources are transferred to reserve funds and capital project funds when sufficient resources are available. 49 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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, 2020, was approximately $457,793. The future minimum lease payments for these leases are as follows: Fiscal Year Ending June 30, Amount 2021 $ 396,133 2022 472,545 2023 261,248 2024 213,120 2025 64,491 Thereafter 224,466 -4.00% $ 1,632,003 Bonds and Notes The County has issued Full Faith & Credit Bonds, Limited Tax Bonds and Notes, 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. The current legal debt limit for the year ended June 30, 2020 is $897,925,000 for general obligation bonds and $448,963,000 for full faith and credit bonds. Additional information on debt limitations can be found in the Debt Capacity portion of the Statistical Section. The County's June 30, 2020 balances on direct borrowings related to governmental activities and business -type activities are $1,108,079 and $5,219,721, respectively. The direct borrowings are secured by the full faith and credit and taxing power of the County. Whereas the lender may exercise any remedy in the event of default, the financing agreement is not subject to acceleration. The County has no other direct borrowing arrangements, including no lines of credit. 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, Limited Tax bonds and Notes currently outstanding are as follows: Purpose Bonds and notes Bonds - Governmental activities Notes - Governmental activities Bonds - Business -Type activities Notes - Business -Type activities Unamortized premium (dis counts) Bonds and notes payable (net of premiums and discounts) 50 1,513,202 $ 48,131,002 Balance at Interest Rates June 30, 2020 2.00% - 6.85% $ 36,638,919 1.99% - 2.49% 1,108,079 1.68% -4.00% 3,651,081 1.68% - 2.49% 5,219,721 $ 46,617,800 1,513,202 $ 48,131,002 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Changes in Compensated Leave, Bonds, Notes, Claims and Landfill Costs Changes in non-current liabilities, other than those for Other Post -Employment Benefits and Net Pension Liability, for the year ended June 30, 2020, are as follows: Governmental activities: Claims Internal service funds Pension obligation bonds Full faith & credit obligations Unamortized prem/ (disc) Direct borrowings Compensated absences Governmental funds Internal service funds Business -type activities: Full faith & credit obligations Unamortized prem/ (disc) Direct borrowings Compensated absences Landfill closure and postclosure Due Within June 30, 2019 Increases Decreases June 30, 2020 One Year $ 7,049,010 $ 16,913,885 $ (18,833,937) $ 5,128,958 $ 2,789,300 9,098,615 - (503,615) 8,595,000 805,000 29,950,010 - (1,906,091) 28,043,919 1,974,600 1,566,336 - (146,621) 1,419,715 146,621 1,317,527 - (209,448) 1,108,079 213,909 8,365,172 10,415,268 (9,270,736) 9,509,704 9,034,219 896,871 881,732 (779,244) 999,358 949,390 $ 58,243,541 $ 28,210,885 $ (31,649,692) $ 54,804,733 $ 15,913,040 $ 3,874,990 $ - 100,678 - 5,964,873 - 363,363 388,947 8,430,568 2,756,277 $ 18,734,472 $ 3,145,224 $ (223,909) $ 3,651,081 $ 230,400 (7,191) 93,487 7,191 (745,152) 5,219,721 760,691 (327,989) 424,321 403,105 - 11,186,845 - $ (1,304,241) $ 20,575,455 $ 1,401,386 During Fiscal Year 2020, $10,378,000 was paid in compensated leave — $2,649,000 from Sheriff's Office, $2,688,000 from Health Services, $1,004,000 from General Fund, $553,000 from Road Department, $765,000 from Deschutes County 9-1-1, $519,000 from Juvenile Community Justice, $521,000 from Community Development, $446,000 from Adult Parole & Probation, $779,000 from internal service funds, $328,000 from enterprise funds and the remaining $126,000 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 2020 the Sheriff's Office, Health Services, General, Internal Service Funds, DC 9-1-1 and Road provided 28%,25%,15%, 8%, 6% and 5%, respectively. The remaining 13% is provided by other governmental and proprietary funds. The full faith and credit obligations and direct borrowings are liquidated by third party rents, charges to departments occupying various buildings and general fund transfers. 51 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Debt Service Requirements Debt service requirements on the County bonds and notes at June 30, 2020, are as follows: Fiscal Year 2021 2022 2023 2024 2025 2026-2030 2031-2035 2036-2040 Total Fis cal Year 2021 2022 2023 2024 2025 2026-2030 2031-2035 Total Bonds Principal Governmental Activities Interest Notes from Direct Borrowings Principal Interest $ 2,779,600 $ 1,577,011 $ 213,909 $ 19,922 2,968,159 1,456,685 214,077 19,587 3,169,824 1,320,507 221,493 14,177 3,249,375 1,173,054 225,954 8,606 2,857,218 1,019,447 232,646 2,896 14,195,320 2,795,144 - - 5,919,423 802,881 - - 1,500,000 136,800 - - $ 36,638,919 $ 10,281,529 $ 1,108,079 $ 65,189 Business -Type Activities Bonds Notes from Direct Borrowings Principal Interest Principal Interest $ 230,400 $ 106,578 $ 760,691 $ 89,079 236,841 100,605 767,523 79,633 245,176 93,185 785,107 65,065 255,625 85,086 799,246 50,175 262,783 77,949 814,254 34,998 1,439,680 264,577 1,292,900 32,623 980,578 47,229 - - $ 3,651,081 $ 775,209 $ 5,219,721 $ 351,572 52 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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: General Fund Sheriff Countywide LED Rural LED Road Road CIP Health Services Nonmajor funds Total Deferred Inflows of Resources Deferred Inflows of Resources Property Taxes Special Services Assessments Provided Total Deferred Contracts of Inflows of Sale Resources $ 592,319 $ - $ 7,083 $ 646,996 $ 1,246,398 - - 281,513 - 281,513 500,531 - - - 500,531 206,556 - - - 206,556 - 131,633 13,108 - 144,741 - - 609,950 - 609,950 - - 2,588,204 - 2,588,204 181,231 - 413,777 - 595,007 $ 1,480,636 $ 131,633 $ 3,913,636 $ 646,996 $ 6,172,901 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 and other post -employment benefits (OPEB) plans by the application of Governmental Accounting Standards Board Statements #68 and #75 are: Deferred Inflows of Resources Deferred inflows - Defined Benefit Pension Plan Changes in proportionate share Net difference between projected and actual earnings on investments Differences between employer contributions and employer's proportionate share of system contributions Deferred inflows - OPEB County Plan Differences between expected and actual experience Changes of assumption or other inputs Deferred inflows - OPEB RHIA Differences between expected and actual experience Changes of assumptions Changes in proportionate share Net difference between projected and actual earnings on investments Total deferred inflows of resources 53 Governmental Business -Type Activities Activities Total $ 348,365 $ 10,534 $ 358,899 3,156,747 95,453 3,252,200 2,171,842 65,672 2,237,514 3,609,107 128,374 3,737,481 5,113,293 181,877 5,295,170 78,398 - 78,398 1,316 - 1,316 16,101 - 16,101 167,492 - 167,492 $ 14,662,661 $ 481,910 $ 15,144,571 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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). 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 Deschutes County 9-1-1 County Service Districts are each special revenue funds funded through voter approved property taxes for their specific purposes. Fund balances, restricted in LED #1 and LED #2, are not restricted for specific purposes but rather exist for liquidity purposes due to the seasonal nature of property tax collections. Fund balances of Deschutes County 9-1-1 are restricted to provide liquidity. Road and Road CIP fund balances are 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 2021 and beyond. 54 Major Capital Major Special Revenue Funds Projects Fund Health PERS General Fund LED #1 LED #2 Road Services Reserve Road CIP Other Funds Total Fund Balances: Nonspendable: Long-term notes receivable $ 148,609 $ $ $ - $ $ $ $ $ 148,609 Inventory - 2,690,983 2,690,983 Total Nonspendable 148,609 2,690,983 2,839,592 Restricted to: Public safety - 12,113,199 6,387,839 - 12,320,772 30,821,809 Economic development - - 4,946,524 4,946,524 Health services 15,858,641 4,323,963 20,182,604 General government - 9,825,860 9,825,860 Marketing & promotion 133,601 133,601 Law library 287,257 287,257 Park development and rangeland 1,762,668 1,762,668 Technology improvements 431,012 431,012 Road improvement/maintenance - 7,999,561 25,086,097 5,008,860 38,094,518 Total Restricted - 12,113,199 6,387,839 7,999,561 15,858,641 25,086,097 39,040,517 106,485,853 Committed to: Economic development 107,559 - - - - - - 107,559 Economic stabilization - 2,559,315 - 2,559,315 Court activities - 35,082 35,082 Health services 3,359 3,359 Debt service 959,032 959,032 Communication systems - 269,433 269,433 Expansion of facilities 7,450,004 4,928,892 12,378,896 Total Conunitted 7,557,563 2,559,315 6,195,797 16,312,675 Assigned to: Public safety 1,056,791 - - 1,056,791 General government 3,525,148 3,525,148 Technology improvements 1,435,040 1,435,040 Fleet repair & replacement 1,345,291 1,345,291 Total Assigned 7,362,270 7,362,270 Unassigned: 13,620,704 (39,033) 13,581,671 Total Fund Balance$28,689,146 $12,113,199 $ 6,387,839 $10,690,544 $15,858,641 $ 2,559,315 $25,086,097 $45,197,281 $ 146,582,060 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 Deschutes County 9-1-1 County Service Districts are each special revenue funds funded through voter approved property taxes for their specific purposes. Fund balances, restricted in LED #1 and LED #2, are not restricted for specific purposes but rather exist for liquidity purposes due to the seasonal nature of property tax collections. Fund balances of Deschutes County 9-1-1 are restricted to provide liquidity. Road and Road CIP fund balances are 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 2021 and beyond. 54 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 exist 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 Solid Waste Fund is used to account for the operations of the County's landfill at Knott Road and 271 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. The RV Park Fund is used to account for the operations of the County's Recreational Vehicle Park, located in Redmond, Oregon. 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, excess workers' compensation claims, excess general liability claims and stop loss on its medical/dental risks. It self -insures against losses for general liability (for claims up to $1 million), workers' compensation, medical and dental benefits, unemployment benefits and other risks. 55 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 based primarily 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, 2020 of $3,832,703. The net position of the Health Benefits fund (medical/dental) at June 30, 2020, is $15,786,888 which is 98% of Fiscal Year 2020 claims expense. Changes in the Insurance Funds' claim liabilities are as follows: Claims payable, June 30, 2018 FY2019 claims expense FY2019 claims paid Claims payable, June 30, 2019 FY 2020 claims expense FY2020 claims paid Claims payable, June 30, 2020 B. Contingent Liabilities and Commitments Insurance Health Benefits Total $ 4,956,117 $ 771,992 $ 5,728,109 1,801,429 17,443,881 19,245,310 (1,623,724) (16,300,685) (17,924,409) $ 5,133,822 $ 1,915,188 $ 7,049,010 893,338 16,020,547 16,913, 885 (1,347,845) (17,486,092) (18,833,937) $ 4,679,315 $ 449,643 $ 5,128,958 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. Additional contingent liabilities may exist in relation to operational services provided by the Health Services Department. The Department is subject to numerous laws and regulations of federal, state, and local governments surrounding its clinical billing practices (i.e. Medicare, Medicaid, prospective payments, etc). As it stands, the County is unable to determine if its billing practices will be reviewed for compliance and if any liability may result from such a review. The County's current practice is to adjust revenue in the year of settlement for any claims of this type. As of June 30, 2020, the County had no material commitments outstanding. 56 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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: www.oregon.goy/pers/Documents/Financials/CAFR/2019-CAFR.pdt Benefits Provided Under the Programs 57 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. 57 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 accumulate sufficient assets to pay benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other Postemployment Benefit Plans (RHIA). 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, 2017 actuarial valuation, which became effective July 1, 2019. 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, 2020 were $14,075,061, excluding amounts to fund employer specific liabilities, or employer specific side -accounts. The rates, presented as a percentage of covered payroll, for the County in effect for the fiscal year ended June 30, 2020 were: Chapter 238 - Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 20.07% 14.26% Police and Fire 26.67% 18.89% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the County reported a liability of $114,720,172 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2017 and rolled forward to June 30, 2019. 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: 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. 58 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 23 8.3 60 monthly benefits are adjusted Under ORS 238A.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 2021 and beyond will the COLA in Fiscal Year 2021 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 accumulate sufficient assets to pay benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other Postemployment Benefit Plans (RHIA). 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, 2017 actuarial valuation, which became effective July 1, 2019. 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, 2020 were $14,075,061, excluding amounts to fund employer specific liabilities, or employer specific side -accounts. The rates, presented as a percentage of covered payroll, for the County in effect for the fiscal year ended June 30, 2020 were: Chapter 238 - Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 20.07% 14.26% Police and Fire 26.67% 18.89% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the County reported a liability of $114,720,172 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2017 and rolled forward to June 30, 2019. 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: 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. 58 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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. As presented, on June 30, 2020 (measurement date of June 30, 2019), the County's proportion was 0.66321419 percent, which was an increase of 4.83% from its proportion presented on June 30, 2019 (measurement date of June 30, 2018). For the year ended June 30, 2020, the County recognized a pension expense of $29,013,888. At June 30, 2020, 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 59 Deferred Outflows of Resources Deferred Inflows of Resources $ 6,326,479 $ - 15,563,100 - - 3,252,200 3,611,622 358,899 29,501,842 - - 2,237,514 $ 55,003,043 $ 5,848,613 $ 49,154,430 29,501,842 $ 19,652,588 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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. 1st Fiscal Year - Fiscal Year 2021 $ 11,007,886 2nd Fiscal Year - Fiscal Year 2022 1,464,767 3rd Fiscal Year - Fiscal Year 2023 3,833,584 4th Fiscal Year - Fiscal Year 2024 3,084,289 5th Fiscal Year - Fiscal Year 2025 262,061 Total $ 19,652,587 Actuarial Assumptions: The employer contribution rates effective July 1, 2019, through June 30, 2021, 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 22 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, 2017 actuarial valuation are shown below: Actuarial Methods and Assumptions: Valuation Date December 31, 2017 Measurement Date June 30, 2019 Experience Study 2016, published July 26, 2017 Actuarial Assumptions: Actuarial Cost Method Entry Age Normal Amortization Method The UAL is amortized as a level percentage of combined payroll. Asset Valuation Method Market Value of Assets, Excluding Reserves Inflation Rate 2.50 percent Healthcare Inflation Rate 4.20 to 6.50 percent until year 2093 Investment Rate of Return 7.20 percent Future General Wage Inflation 3.50 percent (includes the inflation rate) Cost of living adjustments Blend of 2.001/o COLA and graded COLA (1.25%/0.15%) in accordance with Moro Decision; blend based on service Mortality I RP 2014 Healthy Annuitant Tables 60 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 31St of even numbered years. The economic assumptions and estimates shown above are based on the experience study which reviewed experience for the four-year period ended December 31, 2017. 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 50th 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 % * Rebalancing Range % Expected Annual Policy Return % Public Equity 32.5 27.5-37.5 7.3 Private E u ty 17.5 14.0-21.0 9.2 Total Equity 50.0 45.0-55.0 Fixed Income 20.0 15.0-25.0 2.8 Risk Parity 2.5 0.0-2.5 6.3 Real Estate 12.5 9.5-15.5 7.0 Alternatives 15.0 7.5-17.5 7.0 Total Fund 100.0 7.2 *Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement Fund, revised as of July 6, 2020. Discount Rate The discount rate used to measure the total pension liability was 7.20 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. 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 calculated using the discount rate of 7.20 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 (6.20 percent) or 1 -percentage point higher (8.20 percent) than the current rate: 1% Decrease Discount Rate 1% Increase (6.20%) (7.20%) (8.20%) Proportionate share of net pension liability $ 183,714,176 $ 114.720,172 $ 56,981,695 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.goy/pers. 61 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 D. Other Post -Employment Benefits (OPEB) The County participates in two OPEB plans to provide certain healthcare benefits to retirees. The first is a multi-employer cost sharing defined benefit plan administered by the Oregon Public Employees Retirement System known as the Retirement Health Insurance Account (RHIA). The second is a single employer defined benefit postemployment healthcare plan administered by the County known as the County Plan. OPEB Activity and Balances for the Year Ended June 30, 2020 (RHIA & County Plan): Category Total OPEB Liability Net OPEB Asset Deferred Outflows Contributions subsequent to the measurement date Deferred Inflows Net difference between projected and actual earnings on investments Changes in proportionate share Differences between expected and actual experience Changes of assumption or other inputs Deferred Inflows - Total OPEB Expenses (Income) RHIA County Plan Total $ - $ 25,987,166 $ 25,987,166 1,270,129 - 1,270,129 42,226 - 42,226 167,492 - 167,492 16,101 - 16,101 78,398 3,737,481 3,815,879 1,316 5,295,170 5,296,486 $ 263,307 (174,124) $ 9,032,651 1,243,268 Oregon Public Employees Retirement System — Retirement Health Insurance Account (RHIA) Plan Description $ 9,295,958 1,069,144 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. The reports and other related schedules including plan assumptions, methods and plan provisions may also be found on the PERS website at https://www.oregon.gov/pers/EMP/Pages/GASB.aspx. 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. 62 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Contributions Participating public employers are contractually required to contribute to RHIA at a rate assessed each biennium by OPERS. For fiscal year 2020 the rate is 0.06% of annual covered payroll for Tier 1/Tier 2 employees and 0.00% for OPSRP employees. The OPERS sets the net -retiree healthcare rate based on the estimated OPEB expense of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The OPEB expense represents the annual cost allocated to the current year (service cost) and the amortization of any unfunded accrued liability of the plan. The unfunded accrued liabilities are amortized over a closed period equal to the average of the expected remaining lives of all employees that are provided with OPEB through the OPEB plan (active employees and inactive employees). The County's contributions to RHIA were consistent with the net -retiree healthcare rate as charged by OPERS. Amounts paid for RHIA during fiscal year 2020, 2019, 2018, and 2017 were $42,226, $325,768, $304,046, and $301,513, respectively. Actuarial methods and assumptions for the RHIA plan mirror those of the PERS retirement system itself and can be found in footnote 4.C. in the preceding pages of these financial statements. Healthcare cost trends are not applicable to this plan as the benefits are a fixed dollar amount per month. The County's proportionate share of the RHIA plan for FY 2020 is .65729371 %. The proportionate share for each employer participating in the Plan was determined by the actuaries based upon each employer's contribution to the RHIA program during the measurement period. The County's proportionate share increased from .63345589% in the prior measurement period. The following presents the County's proportionate share of the net OPEB liability (asset) for the RHIA calculated using the discount rate of 7.20 percent as well as what the County's proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1 -percentage point lower (6.20 percent) or 1 -percentage point higher (8.20 percent) than the current rate: 1% Decrease Discount Rate 1% Increase (6.20%) (7.20%) (8.20%) Proportionate share of net RHIA OPEB liability (asset) $ (984,677) $ (1,270,129) $ (1,513,354) The RHIA plan assets are included in the PERS retirement system cash management efforts. Information related to the PERS Plan assets investment allocations are included in footnote 4.C. included in these financial statements. The County's contributions made subsequent to the measurement date will be recognized in the County's OPEB expense in the following year. The net amount of the County's share of the RHIA remaining deferred outflows of resources and deferred inflows of resources that will be recognized in the County's OPEB expense in the subsequent five years in the aggregate are shown in the table below. Employer subsequent fiscal years(prior Deferred Outflow/(Inflow) of Resources topost-measurement date contributions FY 2021 $ 135,760 FY 2022 120,492 FY 2023 15,130 FY 2024 8,076 FY 2025 - Thereafter - Total $ 263,306 63 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Other Post -Employment Benefits (OPEB) - Deschutes County 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 (COBRA) 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. Employees who retire from the County with more than fifteen (15) years and less than thirty (30) years of fulltime service are eligible to receive a County contribution towards their monthly insurance premiums until age sixty-five (65) or until eligible for Medicare, in accordance with a schedule recommended by the Employee Benefit Advisory Committee (EBAC) and approved by the Board of County Commissioners. The schedule of retiree premiums and County contributions is shown below for calendar year 2020. Deschutes County Employee Benefit Plan Rates for January 1, 2020 - December 31, 2020* *S% decrease to County contributions effective 7/1/2019 Rates Active Employee Standard Plan High Deductible Dental Plan Monthly Premiums: $69.00 Plan $1,493.00 Composite Rate $1,462.13 $890.78 $162.44 'Opt -out stipend is $125 to employee per month. 30+ Years of 1.0 FTE Service: Retiree Monthly Premiums (dental): Standard Plan Dental Plan Retiree Only $746.00 $69.00 Retiree + Spouse $1,493.00 $139.00 Retiree + Children $1,305.00 $122.00 Retiree + Family $2,052.00 $191.00 <30 Years of Service: Retiree Monthly Premiums: Standard Plan High Deductible Plan Dental Plan Retiree Only $746.00 $589.00 $69.00 Retiree + Spouse $1,493.00 $1,168.00 $139.00 Retiree + Children $1,305.00 $1,022.00 $122.00 Retiree + Family $2,052.00 $1,606.00 $191.00 COBRAMonthly Premiums: Standard Plan High Deductible Plan Dental Plan Employee Only $746.00 $589.00 $69.00 Employee + Spouse $1,493.00 $1,168.00 $139.00 Employee + Children $1,305.00 $1,022.00 $122.00 Employee+ Family $2,052.00 $1,606.00 $191.00 64 Premium Cost Sharing Employee cost share is $85 of Medical Plan and $5 of Dental Plan. 30+ Year Retiree cost share is $85 of Medical Plan and $5 of Dental Plan. Years of County Contribution Service: per years of service: 0-14 $0.00 15-19 $172.20 20-24 $345.45 25-29 $517.65 COBRA participant pays 100% of premium. 2% Admin Fee is charged in addtion to rates. Deschutes County, Oregon Notes to Financial Statements June 30, 2020 As of June 30, 2020, there were 1,002 active employees that could be eligible for the plan. As of that date, 74 retirees and surviving spouses were insured through the County Plan. The County funds the benefits on a pay-as-you-go basis. As a result, there are no assets being accumulated by the County to pay for future benefits. 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 Total OPEB Liability of the plan and the annual OPEB expense 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 changes in the County's Total OPEB Liability, presented as required supplementary information, presents trend information about whether the Total OPEB Liability is increasing or decreasing over time relative to the covered -employee payroll. The measurement date of the actuarial results presented is June 30, 2020. 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 3.50% investment return; an assumed inflation rate of 2.50%; an insurance premium annual trend rate of 5.00% into perpetuity; a retiree health claims annual trend rate of 5.00% into perpetuity; and retirement rates used by Oregon PERS adjusted for County trends. Because there are no assets, the investment return of 3% is set to equal the expected long-term return on the County's own investments. The annual salary increase for employees are assumed to be 3.50% in all future years. Rates of withdrawal and mortality are generally the same rates that were used in the December 31, 2017 actuarial valuation of the Oregon Public Employees Retirement System as referenced in the PERS footnote 4.C. The actuarial cost method used in the valuation of this plan is the Entry Age Normal Method. 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 service cost for that active employee. The sum of these individual service costs is the Plan's Service Cost for the valuation year. The present value of benefits for current retirees plus the accumulated value of all prior service costs is the Total OPEB Liability. Under this method, the actuarial gains (losses), as they occur, reduce (increase) the Total OPEB Liability. The Deschutes County Retiree Health Plan is deemed "unfunded" in accordance with the relevant GASB statements. Changes in Total OPEB Liability Category County Plan Balance at 06/30/2019 $ 24,801,912 Changes for the year Service cost 1,386,188 Interest 849,681 Changes of benefit terms - Change in assumptions or other inputs - Differences between expected and actual - experience Benefit payments (1,050,615) Net changes 1,185,254 Balance at 06/30/2020 65 $ 25,987,166 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Total OPEB liability for the County Plan as of the measurement date is presented below showing the sensitivity of that amount to a 1% higher or lower Discount rate and a 1% higher or lower Health Care trend rate: 1% Decrease Current Discount Rate 1% Increase 2.50% (3.50%) 4.50% Total OPEB Liability on June 30, 2020 $28,552,284 $25,987,166 $23,633,890 Current Health Care 1% Decrease Trend Rates 1% Increase Total OPEB Liability on June 30, 2020 $22,581,912 $25,987,166 $30,072,094 The County's contributions made subsequent to the measurement date will be recognized in the County's OPEB expense in the following year. The net amount of the County's deferred outflows of resources and deferred inflows of resources that will be recognized in the County's OPEB expense in the subsequent five years, and in the aggregate, are shown in the table below. Employer subsequent fiscal years Deferred Outflow/(Inflow) of Resources (prior topost-measurement date contributions) FY 2021 $ (992,601) FY 2022 (992,601) FY 2023 (992,601) FY 2024 (992,601) FY 2025 (992,601) Thereafter (4,069,646) Total (9,032,651) 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 the closure and postclosure care costs for Knott Landfill is based on remaining capacity of the landfill. It is estimated that the total cost for the closure and postclosure of Knott Landfill is $17,719,451 which includes the current cost of equipment, facilities and services required to close, monitor and maintain the landfill. The postclosure costs estimated for the County's Demo and Southwest sites are estimated at $2,363,130 and $1,195,425, respectively. The amount of closure and postclosure costs to recognize each year is based on engineering estimates of capacity remaining at the landfill. By estimating the capacity remaining at the landfill instead of calculating the capacity used, based on the cubic feet of material added during the year, the County is better able to recognize the benefit of natural compression occurring within the solid waste cells. Through June 30, 2020, $13,926,560 has been recognized as expense and $2,739,715 has been paid, resulting in a Closure / Post - Closure liability of $11,186,845 at June 30, 2020. Based on current estimated costs, an additional $7,351,446 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. 66 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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. 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 construction or remodel of County - owned real property. 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 participating County funds and departments to be used 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 41) — 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 Sheriffs Office public safety in rural areas. Road — State gas tax apportionment and Federal payments for building and maintaining public roads and highways. Road Capital Improvement Plan - resources from inter -fund transfers for Road's Capital Improvement Plan. 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 to off -set increases in the cost of retirement benefits as a result of an increase in the PERS rate. 67 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 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 and inter -fund transfers for the operation of a fair and expo center including the annual county fair. RV Park — charges for space rental and transfers for the operation and maintenance of the County's recreational vehicle park and debt service. Nonmaior Governmental Funds Special Revenue Funds Justice Court — fines, fees and General Fund transfers for operating a justice court. 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 — Federal and State grants for public transit services. 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 to reimburse costs of 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. 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. 68 Deschutes County, Oregon Notes to Financial Statements June 30, 2020 Nonmajor Governmental Funds (continued) Special Revenue Funds (continued) 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 County justice program. Deschutes County 9-1-1 County Service District — property taxes, charges for services and grants for operations of countywide emergency call center. Deschutes County Extension and 4-H Service District — property taxes for Oregon State University's Extension Service programs. 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 and notes issued for remodel and acquisition of real property, purchase of long-lived personal property and funding of pension liability. 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. 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 — interfund 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. 69 Required Supplementary Information As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon Schedule of Proportionate Share of the Net Pension Liability (Asset) Oregon Public Employees Retirement System Last Six Fiscal Years* Proportion of the net pension liability (asset) Proportionate share of the net pension liability (asset) Covered payroll Proportionate share of the net pension liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2015 2016 2017 2018 2019 2020 0.61% 0.64% 0.62% 0.62% 0.63% 0.66% $(13,913,943) 36,983,685 93,391,575 83,905,406 95,837,777 114,720,172 54,795,204 57,047,593 59,420,146 62,715,717 67,091,346 72,086,900 -25.39% 64.83% 157.17% 133.79% 142.85% 159.14% 103.59% 91.88% 80.53% 83.12% 82.07% 80.23% * 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 was determined as of June 30. See notes to required supplementary information 70 Totals may not foot due to rounding Deschutes County, Oregon Schedule of Net Pension Liability (Asset) Employer Contributions Oregon Public Employees Retirement System Last Six Fiscal Years* Contractually required contributions Contributions in relation to the contractually required contribution Contribution deficiency (excess) County's covered payroll Contributions as a percentage of covered payroll 2015 2016 2017 2018 2019 2020 $ 5,258,200 $ 5,785,558 $ 5,971,466 $ 8,534,158 $ 9,182,373 $ 14,075,061 5,258,200 5,785,558 5,971,466 8,534,158 9,182,373 14,075,061 57,047,593 59,420,146 62,715,717 67,091,346 72,086,900 77,809,516 9.22% 9.74% 9.52% 12.72% 12.74% 18.09% * 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 was determined as of June 30. See notes to required supplementary information 71 Totals may not foot due to rounding Service cost Interest Changes of assumptions and other inputs Benefit payments Net change in OPEB liability Total OPEB liability - beginning Total OPEB liability - ending Deschutes County, Oregon Schedule of Changes in the County's Total OPEB Liability Deschutes County Plan Last Three Fiscal Years* 2018 2019 2020 $ 1,756,755 $ 1,339,312 $ 1,386,188 1,152,108 1,184,266 849,681 - (11,017,853) - 1,428,996 1,079,974 1,050,615 1,479,867 (9,574,249) 1,185,254 32,896,294 34,376,161 24,801,912 $ 34,376,161 $ 24,801,912 25,987,166 Covered -employee payroll $ 65,409,667 $ 69,941,231 72,389,174 Total OPEB liability as a percentage of payroll 52.6% 35.5% 35.9% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. See notes to required supplementary information 72 Totals may not foot due to rounding Deschutes County, Oregon Schedule of the Proportionate Share of the Net OPEB Liability (Asset) Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Four Fiscal Years* * 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 was determined as of June 30. See notes to required supplementary information 73 Totals may not foot due to rounding 2017 2018 2019 2020 Proportion of the net OPEB liability (asset) 0.62% 0.61% 0.63% 0.66% Proportionate share of the net OPEB liability (asset) $ 167,543 (252,752) (707,109) (1,270,129) Covered payroll 59,447,651 62,728,445 67,106,755 72,086,900 Proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll 0.28% -0.40% -1.05% -1.76% Plan fiduciary net position as a percentage of the total OPEB liability 94.15% 108.88% 123.99% 144.36% * 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 was determined as of June 30. See notes to required supplementary information 73 Totals may not foot due to rounding Deschutes County, Oregon Schedule of Net OPEB Liability (Asset) Employer Contributions Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Four Fiscal Years* 2017 2018 2019 Contractually required contribution $ 301,513 $ 304,046 $ 325,768 $ Contributions in relation to the contractually required contribution 301,513 304,046 325,768 Contribution deficiency (excess) - - - County's covered payroll 62,728,445 67,106,755 72,086,900 Contributions as a percentage of covered payroll 0.48% 0.45% 0.45% * 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 was determined as of June 30. See notes to required supplementary information 74 Totals may not foot due to rounding 2020 42,226 42,226 77,809,516 0.05% Deschutes County, Oregon General Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Taxes - property $ 29,474,840 $ 29,474,840 $ 30,379,397 $ 904,557 Licenses and permits 33,775 33,775 33,525 (250) Investment earnings 239,000 239,000 362,189 123,189 Charges for services 1,683,662 1,701,573 2,457,443 755,870 Intergovernmental 4,266,863 4,348,645 4,252,846 (95,799) Transfers in 260,000 260,000 320,275 60,275 Total revenues 35,958,140 36,057,833 37,805,675 1,747,842 EXPENDITURES Current - departmental: General government 17,620,934 17,928,436 16,890,699 1,037,737 Assessor 4,993,290 4,993,290 4,699,209 294,081 Clerk and Elections 2,031,590 2,049,501 1,640,426 409,075 Board of Property Tax Appeal 77,950 77,950 72,369 5,581 District Attorney 7,800,568 7,873,159 7,606,702 266,457 Medical Examiner 235,542 235,542 197,772 37,770 Tax Office 846,307 865,307 860,973 4,334 Property Management Administration 281,985 306,985 301,829 5,156 Non -Departmental 1,353,702 1,526,702 1,511,418 15,284 Health and Welfare 580,360 589,551 525,956 63,595 Veterans' Services 580,360 589,551 525,956 63,595 Not allocated to organizational units: Transfers out 19,283,310 19,283,310 19,177,801 105,509 Contingency 9,563,536 9,346,536 - 9,346,536 Total expenditures 47,048,140 47,147,833 36,594,455 10,553,378 Net change in fund balance (11,090,000) (11,090,000) 1,211,220 12,301,220 Fund balance - Beginning of year 11,090,000 11,090,000 12,426,713 1,336,713 Fund balance - End of year $ - $ - 13,637,933 $ 13,637,933 Receivables not recognized on GAAP basis (147,555) Unrealized gain (loss) on investments 130,327 Economic Development 256,168 Court Technology Reserve 145,843 Assessment,Taxation & Clerk Reserve 1,289,198 Project Development 2,629,459 General County Projects 773,027 General Capital Reserve 7,450,004 Community Justice Juvenile 1,056,791 Code Abatement 122,662 Vehicle Maintenance & Replacement 1,345,291 Total fund balance, GAAP basis - End of Year $ 28,689,146 See notes to required supplementary information 75 Totals may not foot due to rounding Deschutes County, Oregon Deschutes County Sheriffs Office Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 See notes to required supplementary information 76 Totals may not foot due to rounding Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 417,800 $ 417,800 $ 459,380 $ 41,580 Charges for services 507,818 507,818 696,872 189,054 Contributions and donations 58,255 58,255 84,971 26,716 Investment earnings - - 2,117 2,117 Other 2,500 2,500 49,073 46,573 Intergovernmental 41,133,493 41,325,220 40,269,612 (1,055,608) Transfers in 3,392,036 3,392,036 3,392,036 - Total revenues 45,511,902 45,703,629 44,954,062 (749,567) EXPENDITURES Current - departmental: Public Safety 44,494,082 44,685,809 44,682,271 3,538 Not allocated to organizational units: Transfers out 272,100 272,100 271,791 309 Contingency 745,720 745,720 - 745,720 Total expenditures 45,511,902 45,703,629 44,954,062 749,567 Net change in fund balance - - - - Fund balance - Beginning of year - - - - Fund balance - End of year $ - $ - - $ - Receivables not recognized on GAAP basis (314,054) Unrealized gain (loss) on investments (1,621) Revenue recognized on GAAP basis, not budgetary basis 597,188 Unavailable revenue - services provided (281,513) Total fund balance, GAAP basis - End of Year $ - See notes to required supplementary information 76 Totals may not foot due to rounding Deschutes County, Oregon Countywide Law Enforcement County Service District Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 EXPENDITURES Current - departmental: Public Safety Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 26,391,035 8,427,262 34,818,297 26,391,035 8,427,262 34,818,297 24,951,965 24,951,965 1,439,070 8,427,262 9,866,332 (8,074,827) (8,074,827) 2,641,203 10,716,030 8,074,827 8,074,827 9,788,679 1,713,852 $ - $ - 12,429,882 $ 12,429,882 Unrealized gain (loss) on investments Expenditure recognized on GAAP basis, not budgetary basis Total fund balance, GAAP basis - End of Year See notes to required supplementary information Totals may not foot due to rounding 77 89,106 (405,789) $ 12,113,199 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Taxes - property $ 26,605,470 $ 26,605,470 $ 27,305,892 $ 700,422 Investment earnings 138,000 138,000 287,276 149,276 Total revenues 26,743,470 26,743,470 27,593,168 849,698 EXPENDITURES Current - departmental: Public Safety Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 26,391,035 8,427,262 34,818,297 26,391,035 8,427,262 34,818,297 24,951,965 24,951,965 1,439,070 8,427,262 9,866,332 (8,074,827) (8,074,827) 2,641,203 10,716,030 8,074,827 8,074,827 9,788,679 1,713,852 $ - $ - 12,429,882 $ 12,429,882 Unrealized gain (loss) on investments Expenditure recognized on GAAP basis, not budgetary basis Total fund balance, GAAP basis - End of Year See notes to required supplementary information Totals may not foot due to rounding 77 89,106 (405,789) $ 12,113,199 Deschutes County, Oregon Rural Law Enforcement County Service District Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Taxes - property Investment earnings Total revenues EXPENDITURES Current - departmental: Public safety Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 10,780,014 $ 10,780,014 $ 11,047,333 $ 267,319 136,000 136,000 160,208 24,208 10,916,014 10,916,014 11,207,540 291,526 11,998,235 11,998,235 11,797,147 201,088 5,559,951 5,559,951 - 5,559,951 17,558,186 17,558,186 11,797,147 5,761,039 (6,642,172) (6,642,172) (589,606) 6,052,566 6,642,172 6,642,172 7,121,945 479,773 $ - $ - 6,532,339 $ 6,532,339 Unrealized gain (loss) on investments 46,899 Expenditure recognized on GAAP basis, not budgetary basis (191,399) Total fund balance, GAAP basis - End of Year $ 6,387,839 See notes to required supplementary information Totals may not foot due to rounding 78 Deschutes County, Oregon Road Department Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Special assessments Investment earnings Rents Charges for services Other Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental: County roads Not allocated by organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Inventory Unavailable revenue - services provided Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 5,000 $ 5,000 $ 24,635 $ 19,635 319,000 319,000 261,360 (57,640) 1,000 1,000 1,150 150 1,566,081 1,566,081 1,586,603 20,522 5,000 5,000 14,709 9,709 20,956,746 20,956,746 20,689,276 (267,470) 1,313,601 1,313,601 - (1,313,601) 24,166,428 24,166,428 22,577,732 (1,588,696) 16,010,551 16,010,551 14,248,376 1,762,175 11,910,575 11,910,575 10,596,974 1,313,601 5,639,799 5,639,799 - 5,639,799 33,560,925 33,560,925 24,845,350 8,715,575 (9,394,497) (9,394,497) (2,267,618) 7,126,879 9,394,497 9,394,497 See notes to required supplementary information 79 Totals may not foot due to rounding 10,236,268 841,771 7,968,650 $ 7,968,650 (15,961) 59,980 2,690,983 (13,108) $ 10,690,544 Deschutes County, Oregon Health Services Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Licenses and permits Investment earnings Rents Charges for services Contributions and donations Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental Health and human services Not allocated to organizational units Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 181,330 $ 181,330 $ 179,740 $ (1,590) 355,000 355,000 377,553 22,553 9,000 9,000 6,266 (2,734) 2,499,071 2,551,768 2,655,365 103,597 412,900 412,900 374,010 (38,890) 31,560,308 33,240,313 33,804,052 563,739 6,295,691 6,295,691 5,747,090 (548,601) 41,313,300 43,046,002 43,144,076 98,074 47,310,100 48,593,637 43,109,359 5,484,278 741,927 741,927 193,326 548,601 4,722,458 5,410,863 - 5,410,863 52,774,485 54,746,427 43,302,685 11,443,742 (11,461,185) (11,700,425) (158,609) 11,541,816 15,801,552 16,040,792 18,464,367 2,423,575 $ 4,340,367 $ 4,340,367 18,305,757 $ 13,965,390 Receivables not recognized on budgetary basis Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Unavailable revenue - services provided Total fund balance, GAAP basis - End of Year See notes to required supplementary information 80 Totals may not foot due to rounding 584,338 (586,837) 143,587 (2,588,204) $ 15,858,641 Deschutes County, Oregon PERS Reserve Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Investment earnings Transfers in Total revenues EXPENDITURES Current - departmental: General services Not allocated to organizational units: Special payments Total expenditures Net change in fund balance Budgeted Amounts Original Budget Final Budget Actual $ 308,000 $ 308,000 $ 297,949 2,000,000 2,000,000 2,000,000 2,308,000 2,308,000 2,297,949 3,253,000 3,253,000 3,129,150 Variance with Final Budget $ (10,051) (10,051) 123,850 - 13,000,000 13,000,000 - 3,253,000 16,253,000 16,129,150 123,850 (945,000) (13,945,000) (13,831,201) 113,799 Fund balance - Beginning of year 16,300,000 16,300,000 16,372,165 72,165 Fund balance - End of year $ 15,355,000 $ 2,355,000 2,540,965 $ 185,965 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year See notes to required supplementary information Totals may not foot due to rounding 81 18,350 $ 2,559,315 Deschutes County, Oregon Notes to Required Supplementary Information June 30, 2020 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 each of these funds are combined with the General Fund. Additional adjustments made from the Budgetary Basis of Accounting to GAAP include the recognition of unrealized gain/loss on investments, recognition of receivables on GAAP basis (i.e. collections on short-term receivables, not shown in budget basis), exclusion of receivables from budgetary basis (i.e. grant revenue excluded by GAAP due to timing of the award), recognition of unavailable revenue on GAAP basis (i.e. revenue included in budget basis, not collected in 60 days), and the consumption of inventories. Note 2 — Stewardship, Compliance and Accountability The Board of County Commissioners adopts a resolution authorizing appropriations, which establishes the level by which expenditures cannot lawfully exceed appropriations. Within the General Fund, legal appropriations are established at the department -level for programmatic appropriation (i.e. personnel services, materials & services, and capital outlay) with the remaining appropriation allocated against the fund, in its entirety, as debt service, transfers to other funds, and contingency. Remaining County funds are not appropriated by department -level, instead each fund is legally authorized appropriations against programmatic, debt service, special payments, transfers to other funds, and contingency. Note 3 — Pension Plan Separately Issued Report — Oregon Public Employees Retirement System Information concerning the State of Oregon Public Employee Retirement System's fiduciary performance can be found at www.oreaon.aov/Ders. Note 4 — Other Post Employment Benefit Separately Issued Report — RHIA Information concerning the State of Oregon Public Employee Retirement System Retiree Health Insurance Account's (RHIA's) fiduciary performance can be found at www.oregon.gov/pers. 82 Other Supplementary Information As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Combining and Individual Funds Statements and Schedules — Major Governmental Funds and Sub -Funds - General Fund As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2020 Totals may not foot due to rounding 83 General Court Assessor, Fund Economic Technology Clerk and Tax Operations Development Reserve Reserve ASSETS Cash and cash equivalents $ 5,649,309 $ 33,417 $ 45,311 $ 400,533 Investments, at fair value; plus accrued interest 12,529,777 74,142 100,532 888,665 Taxes receivable 683,148 - - - Accounts receivable 222,395 223 - - Notes and contracts receivable - 148,609 - - Due from other funds 343,104 - - - Total assets $ 19,427,733 $ 256,390 $ 145,843 $ 1,289,198 LIABILITIES Liabilities: Accounts payable $ 2,267,887 $ - $ - $ - Deposits 32,224 - - - Unearned revenue 2,925,855 223 - - Total liabilities 5,225,967 223 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 574,729 - - - Unavailable revenue - services provided 6,333 - - - Unavailable revenue - contracts of sale - - - - Total deferred inflows of resources 581,062 - - - FUND BALANCES Nonspendable - 148,609 - - Committed - 107,559 - - Assigned - - 145,843 1,289,198 Unassigned 13,620,704 - - - Total fund balances 13,620,704 256,168 145,843 1,289,198 Total liabilities, deferred inflows of resources and fund balances $ 19,427,733 $ 256,390 $ 145,843 $ 1,289,198 Totals may not foot due to rounding 83 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Due from other funds Total assets LIABILITIES Liabilities: Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2020 Accounts payable General General Community Project County Capital Justice Development Projects Reserve Juvenile Total liabilities 7,290 16,752 $ 819,195 $ 244,330 $ 2,314,596 $ 300,155 1,817,554 542,096 5,135,408 665,735 - 20,943 - - - - - 114,088 646,996 - - - $ 3,283,745 $ 807,369 $ 7,450,004 $ 1,079,978 Accounts payable $ 3,217 $ 16,752 $ - $ 22,437 Deposits - - - - Unearned revenue 4,073 - - - Total liabilities 7,290 16,752 - 22,437 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - 17,590 - - Unavailable revenue - services provided - - - 750 Unavailable revenue - contracts of sale 646,996 - - - Total deferred inflows of resources 646,996 17,590 - 750 FUND BALANCES Nonspendable - - - - Committed - - 7,450,004 - Assigned 2,629,459 773,027 - 1,056,791 Unassigned - - - - Total fund balances 2,629,459 773,027 7,450,004 1,056,791 Total liabilities, deferred inflows of resources and fund balances $ 3,283,745 $ 807,369 $ 7,450,004 $ 1,079,978 Totals may not foot due to rounding 84 (continued) Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2020 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Due from other funds Total assets LIABILITIES Liabilities: Accounts payable Deposits Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - services provided Unavailable revenue - contracts of sale Total deferred inflows of resources FUND BALANCES Nonspendable Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Code Abatement $ 38,109 84,553 $ 122,662 Vehicle Maintenance & Replacement $ 402,282 892,547 77,839 Total $ 10,247,237 22,731,008 704,091 414,545 795,605 $ 1,372,669 $ 35,235,590 $ 27,378 $ 2,337,671 - 32,224 - 2,930,150 27,378 5,300,046 592,319 7,083 646,996 1,246,398 - - 148,609 - - 7,557,563 122,662 1,345,291 7,362,270 - - 13,620,704 122,662 1,345,291 28,689,146 $ 122,662 $ 1,372,669 $ 35,235,590 Totals may not foot due to rounding 85 (concluded) 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, 2020 EXPENDITURES Current: General government General 44,000 Court Assessment, Public safety Fund Economic Technology Clerk & Tax Health and welfare Operations Development Reserve Reserve REVENUES 75,455 - 72,416 - Taxes - property $ 30,379,397 $ - $ - $ - Licenses and permits 33,525 - - - Fines, forfeitures and penalties - - - - Investment earnings 460,699 15,554 4,157 30,309 Rents - - - - Intergovernmental 4,105,290 - - - Charges for services 2,457,443 - - - Contributions and donations - - - - Payments on contracts of sale - - - - Other - 34,000 - - Total revenues 37,436,355 49,554 4,157 30,309 EXPENDITURES Current: General government 16,815,243 44,000 960 - Public safety - - - - Health and welfare 525,956 - - - Capital outlay 75,455 - 72,416 - Total expenditures 17,416,654 44,000 73,376 - Excess (deficiency) of revenues over expenditures 20,019,700 5,554 (69,219) 30,309 OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in 320,275 - - - Transfers out (10,979,533) - - - Intra -fund: Transfers in - - 32,000 120,000 Transfers out (8,198,268) - - - Total other financing sources (uses) (18,857,526) - 32,000 120,000 Net change in fund balances 1,162,174 5,554 (37,219) 150,309 Fund balances - Beginning of year 12,458,530 250,614 183,062 1,138,889 Fund balances - End of year $ 13,620,704 $ 256,168 $ 145,843 $ 1,289,198 Totals may not foot due to rounding 86 (continued) 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, 2020 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 154,693 General General Community Project County County Justice Development Projects Reserve Juvenile $ - $ 948,780 $ - $ - - - - 4,811 108,427 12,666 223,098 31,243 534,889 - - 97,061 - - - 573,130 1,000 2,840 - 101,777 - - - 3,026 1,595,944 - - - 2,240,260 964,286 223,098 811,048 154,693 1,837,622 - - - - - 6,927,385 1,003,292 146,363 - - 1,157,985 1,983,985 - 6,927,385 1,082,275 (1,019,699) 223,098 (6,116,337) (878,005) (1,097,350) (5,329,254) - 1,000,000 1,420,746 2,035,033 5,961,465 - - (2,420,746) (87,000) 121,995 323,396 (5,714,967) 5,874,465 1,204,270 (696,303) (5,491,868) (241,872) 1,425,189 1,469,330 12,941,872 1,298,663 $ 2,629,459 $ 773,027 $ 7,450,004 $ 1,056,791 Totals may not foot 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, 2020 EXPENDITURES Current: General government 3,638 200,608 Vehicle Public safety - - Code Maintenance & - - 525,956 Abatement Replacement Total REVENUES 3,638 491,325 28,098,348 Excess (deficiency) of revenues Taxes - property $ - $ - $ 31,328,178 Licenses and permits - - 33,525 Fines, forfeitures and penalties 16,039 - 20,850 Investment earnings 2,935 30,395 919,482 Rents - - 631,950 Intergovernmental - - 4,678,420 Charges for services - - 2,563,060 Contributions and donations - - 3,026 Payments on contracts of sale - - 1,595,944 Other - 77,839 111,839 Total revenues 18,974 108,234 41,886,275 EXPENDITURES Current: General government 3,638 200,608 19,056,764 Public safety - - 6,927,385 Health and welfare - - 525,956 Capital outlay - 290,718 1,588,244 Total expenditures 3,638 491,325 28,098,348 Excess (deficiency) of revenues - 607,797 (17,492,840) over expenditures 15,336 (383,091) 13,787,926 OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in - 471,027 791,302 Transfers out - - (18,284,142) Intra -fund: Transfers in - 136,770 10,706,014 Transfers out - - (10,706,014) Total other financing sources (uses) - 607,797 (17,492,840) Net change in fund balances 15,336 224,706 (3,704,913) Fund balances - Beginning of year 107,326 1,120,585 32,394,059 Fund balances - End of year $ 122,662 $ 1,345,291 $ 28,689,146 Totals may not foot due to rounding 88 (concluded) 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, 2020 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 3,000 $ 3,000 $ 14,981 $ 11,981 Loan repayments 26,667 26,667 29,864 3,197 Total revenues 29,667 29,667 44,845 15,178 EXPENDITURES 44,000 Current - departmental: 240,067 Economic development 240,067 Total expenditures 240,067 Net change in fund balance (210,400) Fund balance - Beginning of year 210,400 Fund balance - End of year $ - Notes and contracts receivable recognized under GAAP Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 89 240,067 44,000 196,067 240,067 44,000 196,067 (210,400) 845 211,245 210,400 105,943 (104,457) $ - 106,787 $ 106,787 148,609 771 $ 256,168 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, 2020 Totals may not foot due to rounding 90 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 3,000 $ 3,000 $ 3,454 $ 454 Transfers in 32,000 32,000 32,000 - Total revenues 35,000 35,000 35,454 454 EXPENDITURES Current - departmental Court technology 185,000 185,000 73,376 111,624 Total expenditures 185,000 185,000 73,376 111,624 Net change in fund balance (150,000) (150,000) (37,922) 112,078 Fund balance - Beginning of year 150,000 150,000 182,719 32,719 Fund balance - End of year $ - $ - 144,797 $ 144,797 Unrealized gain (loss) on investments 1,046 Total fund balance, GAAP basis - End of Year $ 145,843 Totals may not foot due to rounding 90 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, 2020 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 21,000 $ 21,000 $ 23,190 $ 2,190 Transfers in 120,000 120,000 120,000 - Total revenues 141,000 141,000 143,190 2,190 EXPENDITURES Current - departmental: Assessment and taxation - - - - Total expenditures - - - - Net change in fund balance 141,000 141,000 143,190 2,190 Fund balance - Beginning of year 1,125,000 1,125,000 1,136,764 11,764 Fund balance - End of year $ 1,266,000 $ 1,266,000 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 91 1,279,954 $ 13,954 9,243 $ 1,289,198 Deschutes County, Oregon Project Development (Sub -Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 92 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 60,653 $ 60,653 $ 92,184 $ 31,531 Rentals 491,760 491,760 534,889 43,129 Payments on contracts of sale 780,185 780,185 1,595,944 815,759 Charges for services - - 1,000 1,000 Other 30,000 30,000 - (30,000) Transfers in 1,000,000 1,000,000 1,000,000 - Total revenues 2,362,598 2,362,598 3,224,017 861,419 EXPENDITURES Currrent - departmental: General services 2,570,266 2,570,266 1,157,985 1,412,281 Not allocated to organizational units: Transfer out 878,011 878,011 878,005 6 Total expenditures 3,448,277 3,448,277 2,035,990 1,412,287 Net change in fund balance (1,085,679) (1,085,679) 1,188,027 2,273,706 Fund balance - Beginning of year 1,085,679 1,085,679 1,422,527 336,848 Fund balance - End of year $ - $ - 2,610,554 $ 2,610,554 Unrealized gain (loss) on investments 18,905 Total fund balance, GAAP basis - End of Year $ 2,629,459 Totals may not foot due to rounding 92 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, 2020 REVENUES Taxes - property Investment earnings Charges for services Transfers in Total revenues EXPENDITURES Current - departmental: General services Not allocated to organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Budgeted Amounts 2,063,528 1,983,985 79,543 1,097,350 1,097,350 Variance Original 183,828 183,828 with Final Budget Final Budget Actual Budget 263,371 (2,147,350) (2,147,350) (698,377) $ 908,356 $ 908,356 $ 948,780 $ 40,424 39,000 39,000 10,593 (28,407) - - 2,840 2,840 250,000 250,000 1,420,746 1,170,746 1,197,356 1,197,356 2,382,959 1,185,603 2,063,528 2,063,528 1,983,985 79,543 1,097,350 1,097,350 1,097,350 - 183,828 183,828 - 183,828 3,344,706 3,344,706 3,081,335 263,371 (2,147,350) (2,147,350) (698,377) 1,448,973 Fund balance - End of year $ Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 93 - $ - 767,388 $ 767,388 5,639 $ 773,027 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, 2020 REVENUES Investment earnings Transfers in Total revenues EXPENDITURES Not allocated to organizational units: Transfer out 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 Variance Original with Final Budget Final Budget Actual Budget $ 227,000 $ 227,000 $ 193,821 2,035,033 2,035,033 2,035,033 2,262,033 2,262,033 2,228,854 7,750,000 7,750,000 7,750,000 7,750,000 7,750,000 7,750,000 (5,487,967) (5,487,967) (5,521,146) 12,857,515 12,857,515 12,917,734 $ 7,369,548 $ 7,369,548 7,396,589 Totals may not foot due to rounding 94 53,415 $ (33,179) - (33,179) 60,219 $ 27,040 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, 2020 Receivables not recognized on GAAP basis (19,103) Unrealized gain (loss) on investments 6,925 Unavailable revenue - services provided (750) Total fund balance, GAAP basis - End of Year $ 1,056,791 Totals may not foot due to rounding 95 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 6,550 $ 6,550 $ 4,811 $ (1,739) Investment earnings 31,000 31,000 26,491 (4,509) Rents 86,400 86,400 97,061 10,661 Charges for services 89,000 89,000 102,527 13,527 Contributions and donations 13,000 13,000 3,026 (9,974) Intergovernmental 630,980 630,980 592,233 (38,747) Transfers in 5,961,465 5,961,465 5,961,465 - Total revenues 6,818,395 6,818,395 6,787,615 (30,780) EXPENDITURES Current - departmental: Public safety 7,127,337 7,127,337 6,927,385 199,952 Not allocated to organizational units: Transfers out 87,000 87,000 87,000 - Contingency 694,058 694,058 - 694,058 Total expenditures 7,908,395 7,908,395 7,014,385 894,010 Net change in fund balance (1,090,000) (1,090,000) (226,770) 863,230 Fund balance - Beginning of year 1,090,000 1,090,000 1,296,490 206,490 Fund balance - End of year $ - $ - 1,069,720 $ 1,069,720 Receivables not recognized on GAAP basis (19,103) Unrealized gain (loss) on investments 6,925 Unavailable revenue - services provided (750) Total fund balance, GAAP basis - End of Year $ 1,056,791 Totals may not foot due to rounding 95 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, 2020 Totals may not foot due to rounding 96 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 26,000 $ 26,000 $ 16,039 $ (9,961) Investment earnings 2,000 2,000 2,255 255 Total revenues 28,000 28,000 18,294 (9,706) EXPENDITURES Current - departmental: Code abatement 143,000 143,000 3,638 139,362 Total expenditures 143,000 143,000 3,638 139,362 Net change in fund balance (115,000) (115,000) 14,656 129,656 Fund balance - Beginning of year 115,000 115,000 107,126 (7,874) Fund balance - End of year $ - $ - 121,782 $ 121,782 Unrealized gain (loss) on investments 879 Total fund balance, GAAP basis - End of Year $ 122,662 Totals may not foot due to rounding 96 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, 2020 Totals may not foot due to rounding 97 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 23,000 $ 23,000 $ 23,201 $ 201 Sale of equipment - - 77,839 77,839 Transfers in 607,797 607,797 607,797 - Total revenues 630,797 630,797 708,838 78,041 EXPENDITURES Current - departmental: Fleet 805,000 805,000 491,325 313,675 Not allocated to organizational units: Transfers out - - - - Contingency 848,681 848,681 - 848,681 Total expenditures 1,653,681 1,653,681 491,325 1,162,356 Net change in fund balance (1,022,884) (1,022,884) 217,513 1,240,397 Fund balance - Beginning of year 1,022,884 1,022,884 1,118,495 95,611 Fund balance - End of year $ - $ - 1,336,007 $ 1,336,007 Unrealized gain (loss) on investments 9,284 Total fund balance, GAAP basis - End of Year $ 1,345,291 Totals may not foot due to rounding 97 Combining Funds and Individual Funds Statements and Schedules — Major Governmental Funds — Capital Project Funds As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon Road Capital Improvement Plan Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Investment earnings Intergovernmental Charges for services Transfers in Total revenues EXPENDITURES Current - departmental: County roads Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unavailable revenue - services provided Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget $ 198,000 $ 198,000 1,944,893 1,944,893 12,014,914 12,014,914 13,835,913 15,938,430 (15,616,536) Totals may not foot due to rounding 98 13,835,913 15,938,430 (15,616,536) Actual $ 366,198 1,668,168 111,340 11,431,979 13,577,685 5,824,653 5,824,653 7,753,032 17,759,555 Variance with Final Budget $ 168,198 (276,725) 111,340 (582,935) (580,122) 8,011,260 15,938,430 23,949,690 23,369,568 25,512,586 $ 25,512,586 (609,950) 183,461 $ 25,086,097 Combining Funds and Individual Funds Statements and Schedules — Major Proprietary Funds — Enterprise Funds As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon Solid Waste Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows of resources Accrued interest Accrued compensated leave Other postemployment benefits Net pension liability Bonds (net of unamortized premiums/discounts) Accrued landfill closure and postclosure costs Deferred inflows of resources - pension Net position, GAAP basis - End of year Totals may not foot due to rounding 99 (7,242) 84,733 27,636,554 170,811 1,010,915 (13,800) (250,473) (599,143) (2,108,471) (7,158,522) (11,186,845) (315,744) $ 18,866,691 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 11,653,868 $ 11,653,868 $ 12,133,703 $ 479,835 Intergovernmental - - 7,242 7,242 Rents 1 1 12,164 12,163 Other 12,000 12,000 108,700 96,700 Investment earnings 202,000 202,000 256,302 54,302 Transfers in 4,263,827 4,263,827 - (4,263,827) Total revenues 16,131,696 16,131,696 12,518,110 (3,613,586) EXPENDITURES Currrent - departmental: County services 16,076,837 16,076,837 12,001,893 4,074,944 Not allocated to organizational units: Debt service 862,100 862,100 861,644 456 Transfers out 4,296,192 4,296,192 32,365 4,263,827 Contingency 4,439,489 4,439,489 - 4,439,489 Total expenditures 25,674,618 25,674,618 12,895,901 12,778,717 Net change in fund balance (9,542,922) (9,542,922) (377,791) 9,165,131 Fund balance - Beginning of year 10,722,908 10,722,908 11,981,709 1,258,801 Fund balance - End of year $ 1,179,986 $ 1,179,986 11,603,918 $ 10,423,932 Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows of resources Accrued interest Accrued compensated leave Other postemployment benefits Net pension liability Bonds (net of unamortized premiums/discounts) Accrued landfill closure and postclosure costs Deferred inflows of resources - pension Net position, GAAP basis - End of year Totals may not foot due to rounding 99 (7,242) 84,733 27,636,554 170,811 1,010,915 (13,800) (250,473) (599,143) (2,108,471) (7,158,522) (11,186,845) (315,744) $ 18,866,691 Deschutes County, Oregon Fair and Expo Center Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Charges for services Operating grants Investment earnings Transfers in Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Debt service Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Budget Final Budget $ 3,157,000 $ 3,157,000 52,000 52,000 18,200 18,200 1,571,341 1,571,341 d 70R Shc d 70R 5d1 5,531,462 5,231,462 100,800 100,800 406,791 706,791 199,576 199,576 6,238,629 6,238,629 (1,440,088) (1,440,088) Actual $ 2,411,726 53,167 16,017 1,473,945 3,954,854 4,312,692 100,151 11,791 4,424,634 (469,779) Variance with Final Budget $ (745,274) 1,167 (2,183) (97,396) (843,687) 918,770 649 695,000 199,576 1,813,995 970,309 1,440,088 1,440,088 1,147,289 (292,799) $ - $ - 677,510 $ 677,510 Unrealized gain (loss) on investments Prepaid expenses Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows of resources Interest payable Accrued compensated leave Other postemployment benefits Net pension liability Bonds (net of unamortized premiums/discounts) Deferred inflows of resources - pension Net position, GAAP basis - End of year Totals may not foot due to rounding 100 6,322 148,737 17,754,358 3,606 603,441 (800) (173,848) (293,458) (1,258,600) (652,730) (166,166) $ 16,648,372 Deschutes County, Oregon RV Park Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Charges for services Investment earnings Transfers in Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Debt service Transfers out Contingency Total expenditures Net change in fund balance Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 425,700 $ 425,700 $ 434,708 $ 9,008 24,550 24,550 14,547 (10,003) 697,000 697,000 195,000 (502,000) 1,147,250 1,147,250 644,255 (502,995) 418,273 418,273 290,034 128,239 222,100 222,100 221,810 290 502,000 502,000 - 502,000 150,327 150,327 - 150,327 1,292,700 1,292,700 511,844 780,856 (145,450) (145,450) 132,410 277,860 Fund balance - Beginning of year 560,000 560,000 592,992 32,992 Fund balance - End of year $ 414,550 $ 414,550 725,402 $ 310,852 Unrealized gain (loss) on investments 5,418 Capital assets (net of accumulated depreciation) 2,132,600 Interest payable (1,800) Bonds (net ofunamortized premiums/discounts) (1,153,037) Net position, GAAP basis - End of year $ 1,708,583 Totals may not foot due to rounding 101 Combining and Individual Funds Statements and Schedules — Nonmajor Governmental Funds and Sub -Funds As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon Nonmajor Governmental Funds Combining Balance Sheet June 30, 2020 LIABILITIES Accounts payable $ 1,292,845 $ 68,267 $ Unearned revenues 305,382 - Due to other funds 343,104 - _ Total liabilities 1,941,331 68,267 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Special Unavailable revenue - services performed 413,777 Total deferred inflows of resources Revenue Capital Debt Funds Projects Fund Service Fund ASSETS Unassigned (39,033) Total fund balances Cash and cash equivalents $ 11,956,280 $ 1,552,536 $ 297,956 Investments, at fair value; plus accrued int. 26,524,924 3,444,622 661,076 Taxes receivable 1,219,351 - - Accounts receivable 1,532,554 - - Notes and contracts receivable 612,587 - - Total assets $ 41,845,695 $ 4,997,159 $ 959,032 LIABILITIES Accounts payable $ 1,292,845 $ 68,267 $ Unearned revenues 305,382 - Due to other funds 343,104 - _ Total liabilities 1,941,331 68,267 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 181,231 Unavailable revenue - services performed 413,777 Total deferred inflows of resources 595,007 FUND BALANCES Restricted 39,040,517 Committed 307,873 Unassigned (39,033) Total fund balances 39,309,357 Total liabilities, deferred inflows of resources and fund balances $ 41,845,695 Totals may not foot due to rounding 102 4,928,892 4,928,892 Total Nonmajor Governmental Funds $ 13,806,772 30,630,622 1,219,351 1,532,554 612,587 $ 47,801,885 - $ 1,361,112 - 305,382 -_ 343,104 2,009,598 - 181,231 -_ 413,777 595,007 959,032 959,032 39,040,517 6,195,797 (39,033) 45,197,281 $ 4,997,159 $ 959,032 $ 47,801,885 Deschutes County, Oregon Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2020 Totals may not foot due to rounding 103 Total Special Capital Debt Nonmajor Revenue Projects Service Governmental Funds Funds Funds Funds REVENUES Taxes - property $ 9,722,860 $ - $ - $ 9,722,860 Taxes - other 7,560,467 - - 7,560,467 Licenses and permits 1,614,708 - - 1,614,708 Fines, forfeitures and penalties 835,015 - - 835,015 Investment earnings 972,786 104,279 29,908 1,106,973 Rents - - 1,319,233 1,319,233 Charges for services 9,821,650 248,327 1,285,632 11,355,609 Contributions and donations 5,215 - - 5,215 Other 1,785 - - 1,785 Intergovernmental 15,907,832 - 319,293 16,227,125 Total revenues 46,442,318 352,606 2,954,066 49,748,990 EXPENDITURES Current: General government 13,031,674 - - 13,031,674 Public safety 17,355,820 - - 17,355,820 County roads 1,026,112 - - 1,026,112 Health and welfare 1,325,349 - - 1,325,349 Debt service: Principal - - 2,619,154 2,619,154 Interest - - 1,909,000 1,909,000 Trustee fees - - 1,600 1,600 Capital outlay 1,309,681 1,850,318 - 3,159,999 Total expenditures 34,048,636 1,850,318 4,529,754 40,428,708 Excess (deficiency) of revenues over expenditures 12,393,682 (1,497,712) (1,575,688) 9,320,281 OTHER FINANCING SOURCES (USES) Transfers in 1,826,053 6,426,604 1,697,657 9,950,314 Transfers out (5,789,169) - - (5,789,169) Total other financing sources (uses) (3,963,117) 6,426,604 1,697,657 4,161,145 Net change in fund balances 8,430,565 4,928,892 121,969 13,481,426 Fund balances - Beginning of year 30,878,792 - 837,063 31,715,855 Fund balances - End of year $ 39,309,357 $ 4,928,892 $ 959,032 $ 45,197,281 Totals may not foot due to rounding 103 Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2020 Totals may not foot due to rounding 104 Park Park Justice Acquisition & Development Special Court Development Fees Transportation ASSETS Cash and cash equivalents $ 12,495 $ 163,133 $ 1,405 $ 1,539,278 Investments, at fair value; plus accrued int. 25,947 361,945 3,118 3,415,206 Taxes receivable - - - - Accounts receivable - 56,422 - 43,686 Notes and contracts receivable - - - - Total assets $ 38,442 $ 581,500 $ 4,523 $ 4,998,169 LIABILITIES Accounts payable $ 3,360 $ 816 $ - $ 652,364 Unearned revenues - - - - Due to other funds - - - - Total liabilities 3,360 816 - 652,364 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -services performed - - - 21,843 Total deferred inflows of resources - - - 21,843 FUND BALANCES Restricted - 580,684 4,523 4,323,963 Committed 35,082 - - - Unassigned - - - - Total fund balances 35,082 580,684 4,523 4,323,963 Total liabilities, deferred inflow of resources and fund balances $ 38,442 $ 581,500 $ 4,523 $ 4,998,169 Totals may not foot due to rounding 104 Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2020 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - Unavailable revenue -services performed - Total deferred inflows of resources - FUND BALANCES Restricted 55,832 Committed - Unassigned - Total fund balances 55,832 Total liabilities, deferred inflow of resources and fund balances $ 55,832 Transient Taylor Transient Grazing ASSETS Room Tax -1% Cash and cash equivalents $ 17,346 Investments, at fair value; plus accrued int. 38,486 Taxes receivable - Accounts receivable - Notes and contracts receivable - Total assets $ 55,832 $ 4,458,314 LIABILITIES $ 134,834 Accounts payable $ - Unearned revenues - Due to other funds - Total liabilities - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - Unavailable revenue -services performed - Total deferred inflows of resources - FUND BALANCES Restricted 55,832 Committed - Unassigned - Total fund balances 55,832 Total liabilities, deferred inflow of resources and fund balances $ 55,832 Transient Video Transient Room Tax Lottery Room Tax -1% $ 1,111,604 $ 108,421 $ 2,816 2,466,324 240,555 6,249 880,386 - 125,769 - 308,674 - $ 4,458,314 $ 657,650 $ 134,834 $ 69,293 $ 100,148 $ 1,233 69,293 100,148 1,233 4,389,022 557,502 133,601 4,389,022 557,502 133,601 $ 4,458,314 $ 657,650 $ 134,834 Totals may not foot due to rounding 105 (continued) Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2020 Totals may not foot due to rounding 106 County Foreclosed Victims' Law Clerk Land Sales Assistance Library Records ASSETS Cash and cash equivalents $ 41,741 $ 770 $ 89,246 $ 112,182 Investments, at fair value; plus accrued int. 92,610 1,708 198,011 248,899 Taxes receivable - - - - Accounts receivable - 341,645 - - Notes and contracts receivable - - - - Total assets $ 134,351 $ 344,123 $ 287,257 $ 361,081 LIABILITIES Accounts payable $ 1,805 $ 62 $ - $ 13,991 Unearned revenues - - - - Due to other funds - 343,104 - - Total liabilities 1,805 343,166 - 13,991 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -services performed - 39,990 - - Total deferred inflows of resources - 39,990 - - FUND BALANCES Restricted 132,546 - 287,257 347,090 Committed - - - - Unassigned - (39,033) - - Total fund balances 132,546 (39,033) 287,257 347,090 Total liabilities, deferred inflow of resources and fund balances $ 134,351 $ 344,123 $ 287,257 $ 361,081 Totals may not foot due to rounding 106 Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2020 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -services performed Total deferred inflows of resources FUND BALANCES Restricted Committed Unassigned Total fund balances Total liabilities, deferred inflow of resources and fund balances - 8,189,308 78,349 738,673 269,433 - - - 269,433 8,189,308 78,349 738,673 $ 269,433 $ 8,358,875 $ 78,349 $ 738,673 Totals may not foot due to rounding 107 (continued) Des Co CDD Communication Community Groundwater Newberry System Res Development Partnership Neighborhood ASSETS Cash and cash equivalents $ 83,708 $ 2,588,851 $ 24,342 $ 52,413 Investments, at fair value; plus accrued int. 185,724 5,743,456 54,007 116,288 Taxes receivable - - - - Accounts receivable - 26,568 - - Notes and contracts receivable - - - 569,972 Total assets $ 269,433 $ 8,358,875 $ 78,349 $ 738,673 LIABILITIES Accounts payable $ - $ 84,128 $ - $ - Unearned revenues - 85,439 - - Due to other funds - - - Total liabilities - 169,567 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -services performed Total deferred inflows of resources FUND BALANCES Restricted Committed Unassigned Total fund balances Total liabilities, deferred inflow of resources and fund balances - 8,189,308 78,349 738,673 269,433 - - - 269,433 8,189,308 78,349 738,673 $ 269,433 $ 8,358,875 $ 78,349 $ 738,673 Totals may not foot due to rounding 107 (continued) Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2020 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -services performed - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 431,012 1,121,628 12,021 237,180 Committed - - - - Unassigned - - - - Total fund balances 431,012 1,121,628 12,021 237,180 Total liabilities, deferred inflow of resources and fund balances $ 431,032 $ 1,136,601 $ 188,236 $ 237,430 Totals may not foot due to rounding 108 Natural Federal GIS Resource Forest Title Dedicated Protection III Surveyor ASSETS Cash and cash equivalents $ 133,915 $ 341,374 $ 58,482 $ 73,766 Investments, at fair value; plus accrued int. 297,117 757,409 129,754 163,665 Taxes receivable - - - - Accounts receivable - 37,817 - - Notes and contracts receivable - - - - Total assets $ 431,032 $ 1,136,601 $ 188,236 $ 237,430 LIABILITIES Accounts payable $ 20 $ 14,973 $ - $ 250 Unearned revenues - - 176,215 - Due to other funds - - - - Total liabilities 20 14,973 176,215 250 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -services performed - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 431,012 1,121,628 12,021 237,180 Committed - - - - Unassigned - - - - Total fund balances 431,012 1,121,628 12,021 237,180 Total liabilities, deferred inflow of resources and fund balances $ 431,032 $ 1,136,601 $ 188,236 $ 237,430 Totals may not foot due to rounding 108 Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2020 Totals may not foot due to rounding 109 (continued) Public Land Countywide Corner Transportation Adult Parole Preservation SDC Imp Dog Control & Probation ASSETS Cash and cash equivalents $ 329,447 $ 1,153,036 $ 15,093 $ 989,192 Investments, at fair value; plus accrued int. 730,947 2,558,249 33,487 2,194,393 Taxes receivable - - - - Accounts receivable - 1,113 - - Notes and contracts receivable - 42,614 - - Total assets $ 1,060,394 $ 3,755,013 $ 48,579 $ 3,183,585 LIABILITIES Accounts payable $ - $ - $ 45,220 $ 65,509 Unearned revenues - 43,727 - - Due to other funds - - - - Total liabilities - 43,727 45,220 65,509 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -services performed - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 1,060,394 3,711,286 - 3,118,076 Committed - - 3,359 - Unassigned - - - - Total fund balances 1,060,394 3,711,286 3,359 3,118,076 Total liabilities, deferred inflow of resources and fund balances $ 1,060,394 $ 3,755,013 $ 48,579 $ 3,183,585 Totals may not foot due to rounding 109 (continued) Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2020 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued int. Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Unearned revenues Due to other funds Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -services performed Total deferred inflows of resources FUND BALANCES Restricted Committed Unassigned Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes Cnty Deschutes Cnty Total Nonmajor 9-1-1 Extension & 4-H Special Service District Service District Revenue Funds $ 2,786,505 $ 125,718 $ 11,956,280 6,182,437 278,932 26,524,924 200,695 12,501 1,219,351 716,628 - 1,532,554 Al I SR7 $ 9,886,266 $ 417,150 $ 41,845,695 $ 161,054 $ 78,619 $ 1,292,845 - - 305,382 - - 343,104 161,054 78,619 1,941,331 170,572 10,658 181,231 351,944 - 413,777 522,516 10,658 595,007 9,202,696 327,873 39,040,517 - - 307,873 - - (39,033) 9,202,696 327,873 39,309,357 $ 9,886,266 $ 417,150 $ 41,845,695 Totals may not foot due to rounding 110 (concluded) Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2020 Park Park Justice Acquisition & Development County Court Development Fees School REVENUES Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - 6,300 - Fines, forfeitures and penalties 556,877 - - - Investment earnings 1,700 11,960 463 991 Charges for services - - - - Contributions and donations - - - - Other - - - - Intergovernmental - 336,313 - 525,901 Total revenues 558,577 348,273 6,763 526,892 EXPENDITURES Current: General government Public safety County roads Health and welfare 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 balance - Beginning of year Fund balance - End of year 667,997 35,083 113,450 526,892 667,997 35,083 113,450 526,892 (109,420) 313,190 (106,688) - (190,000) - - (190,000) - (109,420) 123,190 (106,688) 144,502 457,495 111,211 $ 35,082 $ 580,684 $ 4,523 $ Totals may not foot due to rounding 111 (continued) Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2020 Totals may not foot due to rounding 112 Special Taylor Transient Transportation Grazing Room Tax Video Lottery REVENUES Taxes - property $ - $ - $ - $ - Taxes - other - - 6,615,380 - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 85,340 1,391 103,757 7,309 Charges for services - - - - Contributions and donations - - - - Other - - - - Intergovernmental 5,168,282 5,500 - 1,137,010 Total revenues 5,253,622 6,891 6,719,137 1,144,319 EXPENDITURES Current: General government - 2,245,933 786,419 Public safety - - - - County roads - - - - Health and welfare 939,005 - - - Capital outlay - - - - Total expenditures 939,005 - 2,245,933 786,419 Excess (deficiency) of revenues over expenditures 4,314,618 6,891 4,473,204 357,900 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (5,500) (3,475,135) - Total other financing sources (uses) - (5,500) (3,475,135) - Net change in fund balances 4,314,618 1,391 998,069 357,900 Fund balance - Beginning of year 9,345 54,441 3,390,952 199,602 Fund balance - End of year $ 4,323,963 $ 55,832 $ 4,389,022 $ 557,502 Totals may not foot due to rounding 112 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2020 Totals may not foot due to rounding 113 (continued) Transient Foreclosed Victims' Room Tax -I% Land Sales Assistance Law Library REVENUES Taxes - property $ - $ - $ - $ - Taxes - other 945,087 - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 5,649 2,940 (2,078) 7,075 Charges for services - 41,082 6,520 - Contributions and donations - - - - Other - - - - Intergovernmental - - 403,840 114,175 Total revenues 950,736 44,022 408,282 121,250 EXPENDITURES Current: General government 14,088 41,220 - 153,320 Public safety - - 802,329 - County roads - - - - Health and welfare - - - - Capital outlay - - - - Total expenditures 14,088 41,220 802,329 153,320 Excess (deficiency) of revenues over expenditures 936,648 2,802 (394,046) (32,070) OTHER FINANCING SOURCES (USES) Transfers in - - 295,648 - Transfers out (955,597) - - - Total other financing sources (uses) (955,597) - 295,648 - Net change in fund balances (18,949) 2,802 (98,398) (32,070) Fund balance - Beginning of year 152,550 129,744 59,366 319,328 Fund balance - End of year $ 133,601 $ 132,546 $ (39,033) $ 287,257 Totals may not foot due to rounding 113 (continued) Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2020 Totals may not foot due to rounding 114 Des Co County Clerk Court Communication Community Records Facilities System Res Development REVENUES Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - 72,258 - 1,500 Investment earnings 7,949 271 6,199 203,838 Charges for services 131,151 - - 7,901,928 Contributions and donations - - - - Other - - - - Intergovernmental - - 100,000 86,688 Total revenues 139,100 72,529 106,199 8,193,954 EXPENDITURES Current: General government 110,350 - - 7,462,091 Public safety - 72,529 - - County roads - - - - Health and welfare - - - - Capital outlay - - - - Total expenditures 110,350 72,529 - 7,462,091 Excess (deficiency) of revenues over expenditures 28,750 - 106,199 731,864 OTHER FINANCING SOURCES (USES) Transfers in - - - 100,000 Transfers out - - - (85,695) Total other financing sources (uses) - - - 14,305 Net change in fund balances 28,750 - 106,199 746,169 Fund balance - Beginning of year 318,340 - 163,234 7,443,140 Fund balance - End of year $ 347,090 $ - $ 269,433 $ 8,189,308 Totals may not foot 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, 2020 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Other Intergovernmental Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) CDD Natural Groundwater Newberry GIS Resource Partnership Neighborhood Dedicated Protection 1,515 25,116 10,181 29,253 - - 348,322 94,599 - - 12,398 490,428 1,515 25,116 370,901 614,280 30,000 108,634 282,787 - - - - 399,903 30,000 108,634 282,787 399,903 (28,485) (83,519) 88,114 214,377 Transfers in 60,000 - - 35,300 Transfers out - (115,071) - (4,892) Total other financing sources (uses) 60,000 (115,071) - 30,408 Net change in fund balances 31,515 (198,590) 88,114 244,785 Fund balance - Beginning of year 46,834 937,263 342,898 876,843 Fund balance - End of year $ 78,349 $ 738,673 $ 431,012 $ 1,121,628 Totals may not foot due to rounding 115 (continued) Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2020 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Other Intergovernmental Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare 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 balance - Beginning of year Fund balance - End of year Federal 220,152 Public Land Countywide Forest Title 220,152 Corner Transportation III Surveyor Preservation SDC Imp 885 (4,234) 224,007 1,321,736 - 155,043 - 1,223,651 5,591 7,491 26,882 98,085 - 53,384 520,543 - 77,932 - - - 83,523 215,918 547,425 1,321,736 82,638 220,152 323,418 - 220,152 82,638 323,418 - 885 (4,234) 224,007 1,321,736 - - - (835,005) - - - (835,005) 885 (4,234) 224,007 486,731 11,136 241,414 836,387 3,224,554 $ 12,021 $ 237,180 $ 1,060,394 $ 3,711,286 Totals may not foot 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, 2020 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Other Intergovernmental Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Capital outlay Total expenditures - - 453,411 13,031,674 6,428,151 10,052,812 - 17,355,820 - - - - 1,026,112 386,344 - - - 1,325,349 - - 669,792 639,890 1,309,681 386,344 6,428,151 10,722,604 1,093,300 34,048,636 Excess (deficiency) of revenues over expenditures (149,624) 135,585 OTHER FINANCING SOURCES (USES) Transfers in 149,916 285,189 Transfers out - (62,000) 560,605 (515,607) 12,393,682 - 900,000 1,826,053 - (60,275) (5,789,169) Total other financing sources (uses) 149,916 Deschutes Cnty Deschutes Cnty Total Nonmajor Adult Parole 9-1-1 Extension & 4-H Special Dog Control & Probation Service District Service District Revenue Funds 2,759,301 8,642,091 3,755 30,878,792 $ - $ - $ 9,154,329 $ 568,531 $ 9,722,860 - - - - 7,560,467 229,714 - - - 1,614,708 510 203,870 - - 835,015 841 82,424 233,275 7,378 972,786 440 120,583 603,098 - 9,821,650 5,215 - - - 5,215 - - - 1,785 1,785 - 6,156,859 1,292,506 - 15,907,832 236,721 6,563,736 11,283,209 577,693 46,442,318 - - 453,411 13,031,674 6,428,151 10,052,812 - 17,355,820 - - - - 1,026,112 386,344 - - - 1,325,349 - - 669,792 639,890 1,309,681 386,344 6,428,151 10,722,604 1,093,300 34,048,636 Excess (deficiency) of revenues over expenditures (149,624) 135,585 OTHER FINANCING SOURCES (USES) Transfers in 149,916 285,189 Transfers out - (62,000) 560,605 (515,607) 12,393,682 - 900,000 1,826,053 - (60,275) (5,789,169) Total other financing sources (uses) 149,916 223,189 - 839,725 (3,963,117) Net change in fund balances 292 358,774 560,605 324,118 8,430,565 Fund balance - Beginning of year 3,066 2,759,301 8,642,091 3,755 30,878,792 Fund balance - End of year $ 3,359 $ 3,118,076 $ 9,202,696 $ 327,873 $ 39,309,357 Totals may not foot due to rounding 117 (concluded) Deschutes County, Oregon Justice Court Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Fines, forfeitures and penalties Investment earnings Intergovernmental Total revenues EXPENDITURES Current - departmental: Justice court Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget $ 575,000 $ 575,000 3,000 3,000 578,000 578,000 678,141 678,141 Actual Variance with Final Budget $ 556,877 $ (18,123) 1,706 (1,294) 3,030 3,030 561,613 (16,387) 667,997 10,144 64,859 64,859 - 64,859 743,000 743,000 667,997 75,003 (165,000) (165,000) (106,384) 58,616 165,000 165,000 144,227 (20,774) $ - $ - 37,842 $ 37,842 Totals may not foot due to rounding 118 (3,030) 270 $ 35,082 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, 2020 Totals may not foot due to rounding 119 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 8,000 $ 8,000 $ 8,979 $ 979 Intergovernmental 350,000 350,000 336,313 (13,687) Total revenues 358,000 358,000 345,292 (12,708) EXPENDITURES Current - departmental: Development 330,000 330,000 35,083 294,917 Not allocated to organizational units: Transfers out 190,000 190,000 190,000 - Contingency 194,000 194,000 - 194,000 Total expenditures 714,000 714,000 225,083 488,917 Net change in fund balance (356,000) (356,000) 120,209 476,209 Fund balance - Beginning of year 356,000 356,000 456,711 100,711 Fund balance - End of year $ - $ - 576,920 $ 576,920 Unrealized gain (loss) on investments 3,765 Total fund balance, GAAP basis - End of Year $ 580,684 Totals may not foot due to rounding 119 Deschutes County, Oregon Park Development Fees Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Budgeted Amounts Totals may not foot due to rounding 120 Variance Original with Final Budget Final Budget Actual Budget REVENUES Licenses and permits $ 1,500 $ 1,500 $ 6,300 $ 4,800 Investment earnings 2,000 2,000 638 (1,362) Total revenues 3,500 3,500 6,938 3,438 EXPENDITURES Current - departmental: Development 113,455 113,455 113,450 5 Total expenditures 113,455 113,455 113,450 5 Net change in fund balance (109,955) (109,955) (106,513) 3,442 Fund balance - Beginning of year 109,955 109,955 111,003 1,048 Fund balance - End of year $ - $ - 4,491 $ 4,491 Unrealized gain (loss) on investments 32 Total fund balance, GAAP basis - End of Year $ 4,523 Totals may not foot due to rounding 120 Deschutes County, Oregon County School Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 121 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 1,000 $ 1,000 $ 991 $ (9) Intergovernmental 613,000 613,000 525,901 (87,099) Total revenues 614,000 614,000 526,892 (87,108) EXPENDITURES Current - departmental: Education 614,000 614,000 526,892 87,108 Total expenditures 614,000 614,000 526,892 87,108 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 $ - Totals may not foot due to rounding 121 Deschutes County, Oregon Special Transportation Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 2,000 $ 2,000 $ 50,032 $ 48,032 Intergovernmental 793,700 3,817,067 5,187,625 1,370,558 Charges for services Total revenues EXPENDITURES Current - departmental: Transportation Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year $ Unavailable revenue - services provided Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year - - 2,500 2,500 795,700 3,819,067 5,240,157 1,421,090 :1• :11 www Totals may not foot due to rounding 122 3,830,167 939,005 3,830,167 939,005 (11,100) 4,301,152 11,100 9,131 $ - 4,310,283 (21,843) 35,523 $ 4,323,963 2,891,162 4,312,252 $ 4,310,283 Deschutes County, Oregon Taylor Grazing Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 123 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 1,000 $ 1,000 $ 1,092 $ 92 Intergovernmental 6,000 6,000 5,500 (500) Total revenues 7,000 7,000 6,592 (408) EXPENDITURES Current - departmental: Development 56,000 56,000 - 56,000 Not allocated to organizational units: Transfers out 6,000 6,000 5,500 500 Total expenditures 62,000 62,000 5,500 56,500 Net change in fund balance (55,000) (55,000) 1,092 56,092 Fund balance - Beginning of year 55,000 55,000 54,340 (660) Fund balance - End of year $ - $ - 55,432 $ 55,432 Unrealized gain (loss) on investments 400 Total fund balance, GAAP basis - End of Year $ 55,832 Totals may not foot due to rounding 123 Deschutes County, Oregon Transient Room Tax Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Taxes - other Investment earnings Total revenues EXPENDITURES Current - departmental: Economic development Not allocated to organizational units: Transfers out Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Accrued taxes Total fund balance, GAAP basis - End of Year Budgeted Amounts 2,259,987 2,245,933 14,054 3,177,531 3,477,531 Variance Original 5,375,518 5,737,518 with Final Budget Final Budget Actual Budget 948,571 (76,161) 2,300,000 2,300,000 $ 6,711,250 $ 6,711,250 $ 6,586,527 $ (124,723) 51,000 51,000 83,111 32,111 6,762,250 6,762,250 6,669,639 (92,611) 2,197,987 2,259,987 2,245,933 14,054 3,177,531 3,477,531 3,475,135 2,396 5,375,518 5,737,518 5,721,067 16,451 1,386,732 1,024,732 948,571 (76,161) 2,300,000 2,300,000 2,534,411 234,411 $ 3,686,732 $ 3,324,732 Totals may not foot due to rounding 124 3,482,982 $ 158,250 25,653 880,386 $ 4,389,022 Deschutes County, Oregon Video Lottery Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 7,000 $ 7,000 $ 5,358 $ (1,642) Intergovernmental 760,000 760,000 1,172,492 412,492 Total revenues EXPENDITURES Current - departmental: Economic development Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year $ Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year 767,000 767,000 1,177,849 410,849 865,800 865,800 865,800 865,800 (98,800) (98,800) 98,800 98,800 Totals may not foot due to rounding 125 W� 786,419 786,419 391,430 590,482 (35,482) 2,502 $ 557,502 79,381 79,381 490,230 100,252 $ 590,482 Deschutes County, Oregon Transient Room Tax - 1 % Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Taxes - other $ 958,750 $ 958,750 $ 940,965 $ (17,785) Investment earnings 11,000 11,000 5,643 (5,357) Total revenues EXPENDITURES Current - departmental: Economic development Not allocated to organizational units: Transfers out Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Accrued taxes Total fund balance, GAAP basis - End of Year 969,750 969,750 946,608 14,153 14,153 14,088 955,597 955,597 955,597 969,750 969,750 969,685 - - (23,077) - - 30,844 Totals may not foot due to rounding 126 7,767 65 125,769 $ 133,601 (23,142) 65 65 (23,077) 30,844 $ 7,767 Deschutes County, Oregon Foreclosed Land Sales Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 127 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 3,000 $ 3,000 $ 2,219 $ (781) Charges for services 115,000 115,000 41,082 (73,918) Total revenues 118,000 118,000 43,301 (74,699) EXPENDITURES Current - departmental: General services 115,138 115,138 41,220 73,918 Not allocated to organizational units: Contingency 130,525 130,525 - 130,525 Total expenditures 245,663 245,663 41,220 204,443 Net change in fund balance (127,663) (127,663) 2,081 129,744 Fund balance - Beginning of year 127,663 127,663 129,502 1,839 Fund balance - End of year $ - $ - 131,583 $ 131,583 Unrealized gain (loss) on investments 963 Total fund balance, GAAP basis - End of Year $ 132,546 Totals may not foot due to rounding 127 Deschutes County, Oregon Victims' Assistance Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 128 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 32,000 $ 32,000 $ 6,520 $ (25,480) Investment earnings 2,000 2,000 (2,077) (4,077) Intergovernmental 471,246 471,246 443,830 (27,416) Transfers in 295,648 295,648 295,648 - Total revenues 800,894 800,894 743,922 (56,972) EXPENDITURES Current - departmental: Judicial 856,455 856,455 802,329 54,126 Not allocated to organizational units: Contingency 73,439 73,439 - 73,439 Total expenditures 929,894 929,894 802,329 127,565 Net change in fund balance (129,000) (129,000) (58,407) 70,593 Fund balance - Beginning of year 129,000 129,000 59,347 (69,653) Fund balance - End of year $ - $ - 939 $ 939 Unavailable revenue - services provided (39,990) Unrealized gain (loss) on investments 18 Total fund balance, GAAP basis - End of Year $ (39,033) Totals may not foot due to rounding 128 Deschutes County, Oregon Law Library Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 129 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 7,000 $ 7,000 $ 5,611 $ (1,389) Intergovernmental 99,000 99,000 114,175 15,175 Total revenues 106,000 106,000 119,786 13,786 EXPENDITURES Current - departmental: Library services 203,320 203,320 153,320 50,000 Not allocated to organizational units: Contingency 221,292 221,292 - 221,292 Total expenditures 424,612 424,612 153,320 271,292 Net change in fund balance (318,612) (318,612) (33,535) 285,078 Fund balance - Beginning of year 318,612 318,612 318,732 120 Fund balance - End of year $ - $ - 285,198 $ 285,198 Unrealized gain (loss) on investments 2,060 Total fund balance, GAAP basis - End of Year $ 287,257 Totals may not foot due to rounding 129 Deschutes County, Oregon County Clerk Records Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 130 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 6,000 $ 6,000 $ 5,955 $ (45) Charges for services 94,500 94,500 131,151 36,651 Total revenues 100,500 100,500 137,106 36,606 EXPENDITURES Current - departmental: Clerk records 119,198 119,198 110,350 8,848 Not allocated to organizational units: Contingency 282,302 282,302 - 282,302 Total expenditures 401,500 401,500 110,350 291,150 Net change in fund balance (301,000) (301,000) 26,756 327,756 Fund balance - Beginning of year 301,000 301,000 317,745 16,745 Fund balance - End of year $ - $ - 344,501 $ 344,501 Unrealized gain (loss) on investments 2,589 Total fund balance, GAAP basis - End of Year $ 347,090 Totals may not foot due to rounding 130 Deschutes County, Oregon Court Facilities Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 131 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 85,850 $ 85,850 $ 72,258 $ (13,592) Investment earnings 200 200 271 71 Total revenues 86,050 86,050 72,529 (13,521) EXPENDITURES Current - departmental: Court safety 86,050 86,050 72,529 13,521 Total expenditures 86,050 86,050 72,529 13,521 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 $ - Totals may not foot due to rounding 131 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, 2020 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 3,000 $ 3,000 $ 4,571 $ 1,571 Intergovernmental 100,000 100,000 100,000 - Total revenues 103,000 103,000 104,571 1,571 EXPENDITURES Current - departmental: Communications - - - - Total expenditures - - - - Net change in fund balance 103,000 103,000 104,571 1,571 Fund balance - Beginning of year 60,000 60,000 162,929 102,929 Fund balance - End of year $ 163,000 $ 163,000 267,501 $ 104,501 Unrealized gain (loss) on investments 1,932 Total fund balance, GAAP basis - End of Year $ 269,433 Totals may not foot due to rounding 132 Deschutes County, Oregon Community Development Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Fines, forfeitures and penalties Investment earnings Charges for services Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental: Community development Not allocated to organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ - $ - $ 1,500 $ 1,500 154,000 154,000 158,291 4,291 8,363,320 8,363,320 7,901,928 (461,392) 41,500 41,500 103,345 61,845 1,562,386 1,562,386 100,000 (1,462,386) 10,121,206 10,121,206 8,265,065 (1,856,142) 7,851,291 1,548,081 1,151,452 (429,618) 7,976,808 $ 7,547,190 Totals may not foot due to rounding 133 7,905,639 1,548,081 1,097,104 (429,618) $ 7,547,190 7,462,091 85,695 7,547,786 717,279 7,428,947 8,146,226 (16,657) 59,740 $ 8,189,308 443,548 1,462,386 1,097,104 3,003,038 1,146,897 (547,861) $ 599,035 Deschutes County, Oregon CDD Groundwater Partnership Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 1,000 $ 1,000 $ 1,041 $ 41 Transfers in 60,000 60,000 60,000 - Total revenues EXPENDITURES Current - departmental: Groundwater Not allocated to organizational units: 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 61,000 61,000 61,041 41 101,250 101,250 30,000 71,250 2,550 2,550 - 2,550 103,800 103,800 30,000 73,800 (42,800) (42,800) 31,041 73,841 42,800 42,800 46,747 3,947 $ - $ - 77,787 $ 77,787 562 Totals may not foot due to rounding 134 $ 78,349 Deschutes County, Oregon Newberry Neighborhood Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Investment earnings Loan repayments Total revenues EXPENDITURES Not allocated by organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Budget Final Budget $ 4,000 $ 4,000 60,000 60,000 Actual $ 3,216 111,890 115,106 Variance with Final Budget $ (784) 51,890 115,071 115,071 115,071 - 69,341 69,341 - 69,341 184,412 184,412 115,071 69,341 (120,412) (120,412) 35 120,447 120,412 120,412 167,456 47,044 $ - $ - 167,492 $ 167,492 Notes and contracts receivable recognized under GAAP Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 135 569,972 1,210 $ 738,673 Deschutes County, Oregon GIS Dedicated Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Receivables not recognized on GAAP basis (3,609) Unrealized gain (loss) on investments 3,090 Total fund balance, GAAP basis - End of Year $ 431,012 Totals may not foot due to rounding 136 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 6,000 $ 6,000 $ 7,731 $ 1,731 Charges for services 238,500 238,500 348,322 109,822 Intergovernmental 11,092 11,092 16,007 4,915 Total revenues 255,592 255,592 372,060 116,468 EXPENDITURES Current - departmental: General services 327,669 327,669 282,787 44,882 Not allocated to organizational units: Contingency 247,075 247,075 - 247,075 Total expenditures 574,744 574,744 282,787 291,957 Net change in fund balance (319,152) (319,152) 89,273 408,425 Fund balance - Beginning of year 319,152 319,152 342,258 23,106 Fund balance - End of year $ - $ - 431,531 $ 431,531 Receivables not recognized on GAAP basis (3,609) Unrealized gain (loss) on investments 3,090 Total fund balance, GAAP basis - End of Year $ 431,012 Totals may not foot due to rounding 136 Deschutes County, Oregon Natural Resource Protection Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 137 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 20,000 $ 20,000 $ 22,989 $ 2,989 Charges for services 9,000 49,000 94,599 45,599 Intergovernmental 520,550 520,550 490,428 (30,122) Transfers in 41,000 41,000 35,300 (5,700) Total revenues 590,550 630,550 643,317 12,767 EXPENDITURES Current - departmental: General services 501,676 597,676 399,903 197,773 Not allocated to organizational units: Transfers out 4,892 4,892 4,892 - Contingency 786,007 730,007 - 730,007 Total expenditures 1,292,575 1,332,575 404,795 927,780 Net change in fund balance (702,025) (702,025) 238,521 940,546 Fund balance - Beginning of year 702,025 702,025 875,228 173,203 Fund balance - End of year $ - $ - 1,113,750 $ 1,113,750 Unrealized gain (loss) on investments 7,878 Total fund balance, GAAP basis - End of Year $ 1,121,628 Totals may not foot due to rounding 137 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, 2020 Totals may not foot due to rounding 138 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 5,000 $ 5,000 $ 4,706 $ (294) Intergovernmental 100,477 100,477 77,932 (22,545) Total revenues 105,477 105,477 82,639 (22,838) EXPENDITURES Current - departmental: General services 160,000 160,000 140,743 19,257 Not allocated to organizational units: Contingency 185,025 185,025 - 185,025 Total expenditures 345,025 345,025 140,743 204,282 Net change in fund balance (239,548) (239,548) (58,105) 181,443 Fund balance - Beginning of year 239,548 239,548 244,991 5,443 Fund balance - End of year $ - $ - 186,886 $ 186,886 Advanced payments (176,215) Unrealized gain (loss) on investments 1,350 Total fund balance, GAAP basis - End of Year $ 12,021 Totals may not foot due to rounding 138 Deschutes County, Oregon Surveyor Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Licenses and permits Investment earnings Charges for services Total revenues EXPENDITURES Current - departmental: General services Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Budgeted Amounts Original Budget Final Budget $ 152,000 $ 152,000 6,000 6,000 Actual $ 155,043 6,239 53,384 Variance with Final Budget $ 3,043 239 201,040 201,040 214,666 13,626 220,566 220,566 220,152 414 202,955 202,955 - 202,955 423,521 423,521 220,152 203,369 (222,481) (222,481) (5,486) 216,995 Fund balance - End of year $ - Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 139 $ - 235,478 1,702 $ 237,180 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, 2020 Totals may not foot due to rounding 140 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 18,000 $ 18,000 $ 20,840 $ 2,840 Charges for services 380,000 380,000 520,543 140,543 Total revenues 398,000 398,000 541,383 143,383 EXPENDITURES Current - departmental: General services 388,415 388,415 323,418 64,997 Not allocated to organizational units: Contingency 791,513 791,513 - 791,513 Total expenditures 1,179,928 1,179,928 323,418 856,510 Net change in fund balance (781,928) (781,928) 217,964 999,892 Fund balance - Beginning of year 781,928 781,928 834,827 52,899 Fund balance - End of year $ - $ - 1,052,791 $ 1,052,791 Unrealized gain (loss) on investments 7,603 Total fund balance, GAAP basis - End of Year $ 1,060,394 Totals may not foot due to rounding 140 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, 2020 Totals may not foot due to rounding 141 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Licenses and permits $ 1,003,000 $ 1,003,000 $ 1,223,651 $ 220,651 Investment earnings 67,400 67,400 77,490 10,090 Total revenues 1,070,400 1,070,400 1,301,141 230,741 EXPENDITURES Not allocated to organizational units: Transfers out 1,417,940 1,417,940 835,005 582,935 Contingency 2,605,787 2,605,787 - 2,605,787 Total expenditures 4,023,727 4,023,727 835,005 3,188,722 Net change in fund balance (2,953,327) (2,953,327) 466,136 3,419,463 Fund balance - Beginning of year 2,953,327 2,953,327 3,218,540 265,214 Fund balance - End of year $ - $ - 3,684,676 $ 3,684,677 Unrealized gain (loss) on investments 26,609 Total fund balance, GAAP basis - End of Year $ 3,711,286 Totals may not foot due to rounding 141 Deschutes County, Oregon Dog Control Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 142 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Licenses and permits $ 291,000 $ 291,000 $ 229,714 $ (61,286) Fines, forfeitures and penalties 3,500 3,500 510 (2,990) Investment earnings 2,000 2,000 598 (1,402) Charges for services 500 500 440 (60) Contributions and donations 5,000 5,000 5,215 215 Transfers in 149,916 149,916 149,916 - Total revenues 451,916 451,916 386,393 (65,523) EXPENDITURES Current - departmental: Animal control 442,607 442,607 386,344 56,263 Not allocated to organizational units: Contingency 39,309 39,309 - 39,309 Total expenditures 481,916 481,916 386,344 95,572 Net change in fund balance (30,000) (30,000) 49 30,049 Fund balance - Beginning of year 30,000 30,000 2,961 (27,039) Fund balance - End of year $ - $ - 3,011 $ 3,011 Unrealized gain (loss) on investments 348 Total fund balance, GAAP basis - End of Year $ 3,359 Totals may not foot due to rounding 142 Deschutes County, Oregon Adult Parole & Probation Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Fines, forfeitures and penalties Investment earnings Charges for services Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental: Parole and probation Not allocated to organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts 6,669,491 6,428,151 241,340 62,000 62,000 Variance Original 820,196 740,196 with Final Budget Final Budget Actual Budget $ 162,000 $ 162,000 $ 203,870 $ 41,870 77,500 77,500 64,896 (12,604) 102,500 102,500 120,583 18,083 5,433,278 5,433,278 6,181,598 748,320 285,189 285,189 285,189 - 6,060,467 6,060,467 6,856,135 795,668 6,589,491 6,669,491 6,428,151 241,340 62,000 62,000 62,000 - 820,196 740,196 - 740,196 7,471,687 7,471,687 6,490,151 981,536 (1,411,220) (1,411,220) 365,984 1,777,204 Totals may not foot due to rounding 143 $ 1,178,780 2,754,005 164,005 3,119,990 $ 1,941,210 (24,739) 22,825 $ 3,118,076 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, 2020 REVENUES Taxes - property Investment earnings Charges for services Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental: Emergency services Not allocated to organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Receivables not recognized on GAAP basis Unrealized gain (loss) on investments Unavailable revenue - services provided Total fund balance, GAAP basis - End of Year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 8,913,619 $ 8,913,619 $ 9,154,329 $ 240,710 157,000 157,000 184,668 27,668 382,731 382,731 622,042 239,311 1,110,000 1,110,000 1,328,190 218,190 2,334,185 - - - 12,897,535 10,563,350 11,289,229 725,879 14,584,521 12,250,336 10,722,604 1,527,732 2,978,605 2,978,605 - 2,978,605 17,563,126 15,228,941 10,722,604 4,506,337 (4,665,591) (4,665,591) 566,626 5,232,217 7,753,706 7,753,706 8,626,391 872,685 $ 3,088,115 $ 3,088,115 Totals may not foot due to rounding 144 9,193,017 $ 6,104,902 (35,684) 64,306 (18,944) $ 9,202,696 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, 2020 REVENUES Taxes - property Investment earnings Other Debt proceeds Transfers in Total revenues EXPENDITURES Current - departmental: General services General services - construction Not allocated to organizational units: Debt service Transfers out Contingency Total expenditures Net change in fund balance Budgeted Amounts 60,275 60,275 - 60,275 - Variance Original 181,124 181,124 with Final Budget Final Budget Actual Budget $ 554,366 $ 554,366 $ 568,531 $ 14,165 16,100 16,100 5,608 (10,492) - 60,275 1,785 (58,490) 1,000,000 1,000,000 900,000 (100,000) 60,275 - - - 1,630,741 1,630,741 1,475,923 (154,818) 507,157 507,157 453,411 53,746 1,546,411 1,546,411 639,890 906,521 Fund balance - Beginning of year Fund balance - End of year $ Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year - 60,275 60,275 - 60,275 - - - 181,124 181,124 - 181,124 2,294,967 2,294,967 1,153,575 1,141,392 (664,226) (664,226) 322,348 986,574 664,226 664,226 2,624 (661,602) - $ - 324,972 $ 324,972 Totals may not foot due to rounding 145 2,901 $ 327,873 Deschutes County, Oregon Full Faith & Credit Debt Service - Nonmajor Debt Service Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Investment earnings Rents Charges for services Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental: Debt administration Not allocated to organizational units: Debt service 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 5,000 1,600 3,400 4,530,122 4,530,122 Variance Original 4,535,122 4,535,122 with Final Budget Final Budget Actual Budget $ 23,000 $ 23,000 $ 24,593 $ 1,593 1,268,764 1,268,764 1,319,233 50,469 1,290,658 1,290,658 1,285,632 (5,026) 319,462 319,462 319,293 (169) 1,698,282 1,698,282 1,697,657 (625) 4,600,166 4,600,166 4,646,408 46,242 5,000 5,000 1,600 3,400 4,530,122 4,530,122 4,528,154 1,968 4,535,122 4,535,122 4,529,754 5,368 65,044 65,044 116,654 51,610 781,306 781,306 835,502 54,196 $ 846,350 $ 846,350 952,156 $ 105,806 Totals may not foot due to rounding 146 6,876 $ 959,032 Combining and Individual Funds Statements and Schedules — Proprietary Funds — Internal Service Funds As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2020 Total assets 892,434 210,464 112,976 1,367,127 249,098 127,627 DEFERRED OUTFLOWS OF RESOURCES Net pension liability 830,211 495,221 126,812 529,398 - 446,837 Total deferred outflows of resources 830,211 495,221 126,812 529,398 - 446,837 LIABILITIES Current liabilities: Accounts payable 94,858 637 4,090 3,104 Current portion of noncurrent liabilities 131,333 130,222 - 43,944 Total current liabilities 226,191 130,859 4,090 47,048 Noncurrent liabilities Compensated leave Total OPEB liability Net pension liability Accrued claims payable Less current portion noncurrent liabilities Total noncurrent liabilities Total liabilities - 1,277 135,177 136,454 158,232 156,893 - Board of - 162,864 611,371 189,525 73,364 244,548 Administrative County 1,032,886 Finance 1,104,169 - 931,970 Facilities Services Commissioners Finance Reserve Legal ASSETS 337,857 1,357,717 - 1,130,841 2,596,037 1,379,942 341,948 Current assets: - 1,267,295 Cash and cash equivalents $ 227,960 $ 56,094 $ 29,024 $ 74,103 $ 77,391 $ 39,652 Investments, fair value; and accrued interest 505,777 124,455 64,396 164,412 171,707 87,976 Accounts receivable 79,851 - - - - - Prepaid expenses 3,323 29,915 - 160,214 - - Due from other funds - - - - - - Total current assets 816,911 210,464 93,420 398,728 249,098 127,627 Noncurrent assets: Capital assets net of accumulated depreciation: Land improvements 405 - - - - - Equipment 13,448 - 19,557 - - - Vehicles 61,669 - - - - - Intangible - - - 968,399 - - Total capital assets 75,522 - 19,557 968,399 - - Total assets 892,434 210,464 112,976 1,367,127 249,098 127,627 DEFERRED OUTFLOWS OF RESOURCES Net pension liability 830,211 495,221 126,812 529,398 - 446,837 Total deferred outflows of resources 830,211 495,221 126,812 529,398 - 446,837 LIABILITIES Current liabilities: Accounts payable 94,858 637 4,090 3,104 Current portion of noncurrent liabilities 131,333 130,222 - 43,944 Total current liabilities 226,191 130,859 4,090 47,048 Noncurrent liabilities Compensated leave Total OPEB liability Net pension liability Accrued claims payable Less current portion noncurrent liabilities Total noncurrent liabilities Total liabilities - 1,277 135,177 136,454 158,232 156,893 - 52,944 - 162,864 611,371 189,525 73,364 244,548 - 171,184 1,731,576 1,032,886 264,493 1,104,169 - 931,970 (131,333) (130,222) - (43,944) - (135,177) 2,369,847 1,249,083 337,857 1,357,717 - 1,130,841 2,596,037 1,379,942 341,948 1,404,765 - 1,267,295 DEFERRED INFLOWS OF RESOURCES Net pension liability 88,278 52,658 13,484 56,292 - 47,513 Total OPEB liability 212,501 65,875 25,500 85,000 - 59,500 Total deferred inflows of resources 300,779 118,533 38,984 141,293 - 107,014 NET POSITION Net investment in capital assets 75,522 - 19,557 968,399 - - Unrestricted (1,249,694) (792,790) (160,700) (617,932) 249,098 (799,844) Total net position $(1,174,172) $ (792,790) $ (141,143) $ 350,467 $ 249,098 $ (799,844) Totals may not foot due to rounding 147 Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2020 Total assets 206,095 517,357 1,194,855 8,829,002 18,831,003 32,538,038 DEFERRED OUTFLOWS OF RESOURCES Net pension liability 409,213 1,002,050 - 135,872 - 3,975,614 Total deferred outflows of resources 409,213 1,002,050 - 135,872 - 3,975,614 LIABILITIES Current liabilities: Accounts payable 2,417 29,533 33,449 75,383 2,594,473 2,839,221 Current portion of noncurrent liabilities 92,864 291,373 - 2,344,213 449,643 3,618,768 Total current liabilities 95,281 320,906 33,449 2,419,596 3,044,116 6,457,989 Noncurrent liabilities Compensated leave Human Information Information - 999,358 Health 195,639 Resources Technology Tech Reserve Insurance Benefits Total ASSETS - 8,291,961 Accrued claims payable - - - 4,679,315 449,643 5,128,958 Current assets: (92,864) (291,373) -(2,344,213) (449,643) (3,618,768) Total noncurrent liabilities 1,068,156 Cash and cash equivalents $ 54,421 $ 158,979 $ 236,485 $ 2,734,726 $ 5,836,698 $ 9,525,533 Investments, fair value; and accrued interest 120,744 352,728 524,692 6,067,555 12,949,919 21,134,360 Accounts receivable 29,821 - - - 44,386 154,058 Prepaid expenses 1,109 5,650 - - - 200,210 Due from other funds - - - - - - Total current assets 206,095 517,357 761,177 8,802,281 18,831,003 31,014,161 Noncurrent assets: Capital assets net of accumulated depreciation: Land improvements - - - 22,000 - 22,405 Equipment - - 388,347 - - 421,352 Vehicles - - 22,772 4,721 - 89,163 Intangible - - 22,558 - - 990,958 Total capital assets - - 433,677 26,721 - 1,523,877 Total assets 206,095 517,357 1,194,855 8,829,002 18,831,003 32,538,038 DEFERRED OUTFLOWS OF RESOURCES Net pension liability 409,213 1,002,050 - 135,872 - 3,975,614 Total deferred outflows of resources 409,213 1,002,050 - 135,872 - 3,975,614 LIABILITIES Current liabilities: Accounts payable 2,417 29,533 33,449 75,383 2,594,473 2,839,221 Current portion of noncurrent liabilities 92,864 291,373 - 2,344,213 449,643 3,618,768 Total current liabilities 95,281 320,906 33,449 2,419,596 3,044,116 6,457,989 Noncurrent liabilities Compensated leave 111,884 351,051 - 5,489 - 999,358 Total OPEB liability 195,639 383,941 - 55,023 - 1,924,595 Net pension liability 853,497 2,089,981 - 283,389 - 8,291,961 Accrued claims payable - - - 4,679,315 449,643 5,128,958 Less current portion noncurrent liabilities (92,864) (291,373) -(2,344,213) (449,643) (3,618,768) Total noncurrent liabilities 1,068,156 2,533,601 - 2,679,003 - 12,726,105 Total liabilities 1,163,437 2,854,506 33,449 5,098,599 3,044,116 19,184,093 DEFERRED INFLOWS OF RESOURCES Net pension liability 43,513 106,550 - 14,448 - 422,737 Total OPEB liability 68,000 133,451 - 19,125 - 668,953 Total deferred inflows of resources 111,513 240,001 - 33,573 - 1,091,690 NET POSITION Net investment in capital assets - - 433,677 26,721 - 1,523,877 Unrestricted (659,643) (1,575,101) 727,728 3,805,981 15,786,888 14,713,991 Total net position $ (659,643) $ (1,575,101) $ 1,161,406 $ 3,832,703 $ 15,786,888 $ 16,237,868 Totals may not foot due to rounding 148 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position Year Ended June 30, 2020 Transfers in - 40,000 Board of - - 146,961 Transfers out (62,467) Administrative County - Finance - Equity transfer Facilities Services Commissioners Finance Reserve Legal OPERATING REVENUES (62,467) 40,000 282,174 5,600 (265,600) 146,961 Charges for services $ 3,715,839 $ 1,210,925 $ 423,277 $ 1,967,684 $ 259,946 $ 1,107,814 Total operating revenues 3,715,839 1,210,925 423,277 1,967,684 259,946 1,107,814 OPERATING EXPENSES $ (1,174,172) $ (792,790) $ (141,143) $ 350,467 $ 249,098 $ (799,844) Personnel 1,875,354 989,069 403,254 1,111,128 - 1,230,196 Materials and services 1,490,681 163,709 259,414 577,535 11,685 158,053 Depreciation 9,930 - 2,173 124,768 - - Total operating expenses 3,375,965 1,152,778 664,840 1,813,431 11,685 1,388,249 Operating income (loss) 339,874 58,146 (241,563) 154,253 248,261 (280,435) NONOPERATING REVENUES (EXPENSES) Gain or (loss) on assets - - - 14,288 - - Investment earnings 19,375 5,439 2,615 6,704 6,652 4,620 Total nonoperating revenues (expenses) 19,375 5,439 2,615 20,992 6,652 4,620 Income (loss) before transfers 359,249 63,586 (238,948) 175,245 254,913 (275,815) Transfers in - 40,000 285,889 - - 146,961 Transfers out (62,467) - (3,715) - (260,000) - Equity transfer - - - 5,600 (5,600) - Net other financing sources (uses) (62,467) 40,000 282,174 5,600 (265,600) 146,961 Change in net position 296,782 103,586 43,226 180,845 (10,687) (128,854) Net position - Beginning of year (1,470,954) (896,376) (184,370) 169,623 259,785 (670,990) Net position - End of year $ (1,174,172) $ (792,790) $ (141,143) $ 350,467 $ 249,098 $ (799,844) Totals may not foot due to rounding 149 Deschutes County, Oregon - 66,000 Internal Service Funds 538,850 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Year Ended June 30, 2020 - (6,918) - Human Information Information Health Resources Technology Tech Reserve Insurance Benefits Total OPERATING REVENUES - Charges for services $ 1,228,150 $ 2,519,109 $ 233,999 $ 3,767,363 $ 22,156,331 $ 38,590,437 Total operating revenues 1,228,150 2,519,109 233,999 3,767,363 22,156,331 38,590,437 OPERATING EXPENSES - 66,000 - - - 538,850 Transfers out - (7,858) - (6,918) - Personnel 1,009,961 2,269,086 - 251,515 - 9,139,563 Materials and services 272,625 430,447 35,042 1,662,961 21,487,511 26,549,664 Depreciation - - 115,454 2,383 - 254,707 Total operating expenses 1,282,586 2,699,533 150,496 1,916,858 21,487,511 35,943,933 Operating income (loss) (54,436) (180,424) 83,503 1,850,505 668,819 2,646,504 NONOPERATING REVENUES (EXPENSES) Gain or (loss) on assets - - - - - 14,288 Investment earnings 6,079 14,481 18,402 199,627 435,222 719,217 Total nonoperating revenues (expenses) 6,079 14,481 18,402 199,627 435,222 733,505 Income (loss) before transfers (48,357) (165,943) 101,905 2,050,132 1,104,041 3,380,009 Transfers in - 66,000 - - - 538,850 Transfers out - (7,858) - (6,918) - (340,958) Equity transfer - - - - - - Net other financing sources (uses) - 58,142 - (6,918) - 197,892 Change in net position (48,357) (107,801) 101,905 2,043,214 1,104,041 3,577,901 Net position - Beginning of year (611,286) (1,467,300) 1,059,500 1,789,488 14,682,846 12,659,967 Net position - End of year $ (659,643) $ (1,575,101) $ 1,161,406 $ 3,832,703 $ 15,786,888 $ 16,237,868 Totals may not foot due to rounding 150 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2020 Board of Administrative County Finance Facilities Services Commissioners Finance Reserve Legal CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 3,636,313 $ 1,210,925 $ 423,277 $ 1,967,684 $ 259,946 $ 1,107,814 Payments to employees (2,066,742) (1,070,988) (433,624) (1,295,955) - (1,118,782) Payments to suppliers (1,474,536) (196,276) (260,637) (602,326) (20,122) (157,964) Net cash provided (used) by operating activities 95,035 (56,340) (270,984) 69,404 239,824 (168,932) Depreciation expense 9,930 - 2,173 CASH FLOWS FROM NONCAPITAL - - Change in operating accruals FINANCING ACTIVITIES Receivables (79,526) - - - - Transfers in - 40,000 285,889 - - 146,961 Transfers out (62,467) - (3,715) - (260,000) - Net cash provided (used) by noncapital (1,223) (7,345) (8,438) 89 Claims payable - - financing activities (62,467) 40,000 282,174 - (260,000) 146,961 (9,837) - 42,186 Total OPEB liability (53,591) 27,597 (2,381) CASH FLOWS FROM CAPITAL AND - 28,193 Net cash provided (used) by operating activities $ 95,035 $ (56,340) $ (270,984) $ 69,404 $ RELATED FINANCING ACTIVITIES Capital assets - - (21,729) - (5,600) Net cash provided (used) by capital and related financing activities - - (21,729) - (5,600) - CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (35,723) 7,260 5,304 (52,088) 12,785 11,669 Interest 15,280 4,567 2,177 5,033 5,471 4,058 Net cash provided (used) by investing activities (20,443) 11,826 7,481 (47,056) 18,256 15,727 Net increase (decrease) in cash & cash equivalents 12,125 (4,513) (3,058) 22,348 (7,520) (6,244) Balances - Beginning of year 215,835 60,607 32,082 51,755 84,911 45,896 Balances - End of year $ 227,960 $ 56,094 $ 29,024 $ 74,103 $ 77,391 $ 39,652 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 339,874 $ 58,146 $ (241,563) $ 154,253 $ 248,261 $ (280,435) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 9,930 - 2,173 124,768 - - Change in operating accruals Receivables (79,526) - - - - Prepaid expenses 13,765 (29,915) - (17,446) - - Net pension liability (132,880) (125,589) (27,989) (167,053) - 41,035 Accounts payable 2,381 (2,652) (1,223) (7,345) (8,438) 89 Claims payable - - - - - - Compensated leave (4,917) 16,073 - (9,837) - 42,186 Total OPEB liability (53,591) 27,597 (2,381) (7,937) - 28,193 Net cash provided (used) by operating activities $ 95,035 $ (56,340) $ (270,984) $ 69,404 $ 239,824 $ (168,932) NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 779 $ (302) $ 3,717 $ Totals may not foot due to rounding 151 673 $ 3,593 $ 3,989 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2020 Human Information Health Resources Technology IT Reserve Insurance Benefits Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 1,219,696 $ 2,519,109 $ 233,999 $ 3,790,073 $ 22,254,619 $ 38,623,455 Payments to employees (991,687) (2,218,972) - (322,795) - (9,519,544) Payments to suppliers (351,269) (416,465) (14,492) (2,193,019) (22,202,022) (27,889,127) Net cash provided (used) by operating activities (123,260) (116,327) 219,507 1,274,259 52,597 1,214,784 to net cash provided (used) by operating activities: CASH FLOWS FROM NONCAPITAL Depreciation expense - - 115,454 2,383 - FINANCING ACTIVITIES Change in operating accruals Transfers in - 66,000 - - - 538,850 Transfers out - (7,858) - (6,918) - (340,958) Net cash provided (used) by noncapital Net pension liability 2,852 13,787 - (24,169) - financing activities - 58,142 - (6,918) - 197,892 619,744 Claims payable - - - (454,507) CASH FLOWS FROM CAPITAL AND (1,920,052) Compensated leave 21,772 48,788 - (11,577) RELATED FINANCING ACTIVITIES 102,487 Total OPEB liability (6,350) (12,461) - (35,534) Capital assets - - (194,552) - - (221,881) Net cash provided (used) by capital and related $ 1,214,784 financing activities - - (194,552) - - (221,881) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments 79,294 29,258 (29,924) (1,000,447) (343,904) (1,316,516) Interest 5,839 12,080 14,214 145,697 335,168 549,583 Net cash provided (used) by investing activities 85,133 41,338 (15,709) (854,750) (8,737) (766,933) Net increase (decrease) in cash & cash equivalents (38,127) (16,847) 9,246 412,592 43,861 423,862 Balances -Beginning of year 92,548 175,826 227,240 2,322,135 5,792,837 9,101,672 Balances - End of year $ 54,421 $ 158,979 $ 236,486 $ 2,734,727 $ 5,836,698 $ 9,525,534 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (54,436) $ (180,424) $ 83,503 $ 1,850,505 $ 668,819 $ 2,646,504 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense - - 115,454 2,383 - 254,707 Change in operating accruals Receivables (8,454) - - 22,710 98,288 33,018 Prepaid expenses 91 (5,650) - - - (39,155) Net pension liability 2,852 13,787 - (24,169) - (420,005) Accounts payable (78,735) 19,632 20,550 (75,551) 751,035 619,744 Claims payable - - - (454,507) (1,465,545) (1,920,052) Compensated leave 21,772 48,788 - (11,577) - 102,487 Total OPEB liability (6,350) (12,461) - (35,534) - (62,464) Net cash provided (used) by operating activities $ (123,260) $ (116,327) $ 219,507 $ 1,274,259 $ 52,597 $ 1,214,784 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 937 $ 481 $ 1,408 $ 1,286 $ 645 $ 17,205 Totals may not foot due to rounding 152 Deschutes County, Oregon Facilities Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Net position, GAAP basis - End of year $ (1,174,172) Totals may not foot due to rounding 153 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 3,669,802 $ 3,669,802 $ 3,715,839 $ 46,037 Intergovernmental - - 136,018 136,018 Investment earnings 15,000 15,000 15,386 386 Total revenues 3,684,802 3,684,802 3,867,243 182,441 EXPENDITURES Currrent - departmental: County services 3,646,400 3,646,400 3,557,423 88,977 Not allocated to organizational units: Transfers out 62,467 62,467 62,467 - Contingency 451,935 451,935 - 451,935 Total expenditures 4,160,802 4,160,802 3,619,890 540,912 Net change in fund balance (476,000) (476,000) 247,353 723,353 Fund balance - Beginning of year 476,000 476,000 605,458 129,458 Fund balance - End of year $ - $ - 852,811 $ 852,811 Receivables not recognized on GAAP basis (136,018) Unrealized gain (loss) on investments 5,261 Capital assets (net of accumulated depreciation) 75,522 Deferred outflows of resources 830,211 Accrued compensated leave (158,232) Other postemployment benefits (611,371) Net pension liability (1,731,576) Deferred inflows of resources - OPEB (212,501) Deferred inflows of resources - pension (88,278) Net position, GAAP basis - End of year $ (1,174,172) Totals may not foot due to rounding 153 Deschutes County, Oregon Administrative Services Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Net position, GAAP basis - End of year $ (792,790) Totals may not foot due to rounding 154 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Charges for services $ 1,208,403 $ 1,208,403 $ 1,210,925 $ 2,522 Intergovernmental - - 36,770 36,770 Investment earnings 6,000 6,000 4,502 (1,498) Transfers in 40,000 40,000 40,000 - Total revenues 1,254,403 1,254,403 1,292,196 37,793 EXPENDITURES Currrent - departmental: County services 1,429,076 1,429,076 1,234,698 194,378 Not allocated to organizational units: Contingency 120,000 120,000 - 120,000 Total expenditures 1,549,076 1,549,076 1,234,698 314,378 Net change in fund balance (294,673) (294,673) 57,499 352,172 Fund balance - Beginning of year 294,673 294,673 187,803 (106,870) Fund balance - End of year $ - $ - 245,302 $ 245,302 Receivables not recognized on GAAP basis (36,770) Unrealized gain (loss) on investments 1,295 Deferred outflows of resources 495,221 Accrued compensated leave (156,893) Other postemployment benefits (189,525) Net pension liability (1,032,886) Deferred inflows of resources - OPEB (65,875) Deferred inflows of resources - pension (52,658) Net position, GAAP basis - End of year $ (792,790) Totals may not foot due to rounding 154 Deschutes County, Oregon Board of County Commissioners Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 REVENUES Charges for services Investment earnings Transfers in Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred outflows of resources Other postemployment benefits Net pension liability Deferred inflows of resources - OPEB Deferred inflows of resources - pension Net position, GAAP basis - End of year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 423,277 $ 423,277 $ 423,277 $ - 2,000 2,000 2,135 135 285,889 285,889 285,889 - 711,166 711,166 711,301 135 723,530 723,530 714,767 8,763 3,715 3,715 3,715 - 65,933 65,933 - 65,933 793,178 793,178 718,482 74,696 (82,012) (82,012) (7,181) 74,831 82,012 82,012 95,841 13,829 $ - $ - 88,660 $ 88,660 Totals may not foot due to rounding 155 670 19,557 126,812 (73,364) (264,493) (25,500) (13,484) $ (141,143) Deschutes County, Oregon Finance Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Net position, GAAP basis - End of year $ 350,467 Totals may not foot due to rounding 156 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 1,940,122 $ 1,940,122 $ 1,967,684 $ 27,562 Intergovernmental - - 16,017 16,017 Investment earnings 2,000 2,000 5,296 3,296 Total revenues 1,942,122 1,942,122 1,988,997 46,875 EXPENDITURES Currrent - departmental: County services 1,974,600 1,974,600 1,873,490 101,110 Not allocated to organizational units: Contingency 187,522 187,522 - 187,522 Total expenditures 2,162,122 2,162,122 1,873,490 288,632 Net change in fund balance (220,000) (220,000) 115,507 335,507 Fund balance - Beginning of year 220,000 220,000 294,424 74,424 Fund balance - End of year $ - $ - 409,931 $ 409,931 Receivables not recognized on GAAP basis (16,017) Unrealized gain (loss) on investments 1,710 Capital assets (net of accumulated depreciation) 968,399 Deferred outflows of resources 529,398 Accrued compensated leave (52,944) Other postemployment benefits (244,548) Net pension liability (1,104,169) Deferred inflows of resources - OPEB (85,000) Deferred inflows of resources - pension (56,292) Net position, GAAP basis - End of year $ 350,467 Totals may not foot due to rounding 156 Deschutes County, Oregon Finance Reserve Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 EXPENDITURES Currrent - departmental: County services 278,000 278,000 17,285 260,715 Not allocated to organizational units: Transfers out 260,000 260,000 260,000 - Total expenditures 538,000 538,000 277,285 260,715 Net change in fund balance (270,000) (270,000) (11,972) 258,028 Fund balance - Beginning of year 270,000 270,000 259,284 (10,716) Fund balance - End of year $ - $ - 247,312 $ 247,312 Unrealized gain (loss) on investments 1,786 Net position, GAAP basis - End of year $ 249,098 Totals may not foot due to rounding 157 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Charges for services $ 260,000 $ 260,000 $ 259,946 $ (54) Investment earnings 8,000 8,000 5,367 (2,633) Total revenues 268,000 268,000 265,313 (2,687) EXPENDITURES Currrent - departmental: County services 278,000 278,000 17,285 260,715 Not allocated to organizational units: Transfers out 260,000 260,000 260,000 - Total expenditures 538,000 538,000 277,285 260,715 Net change in fund balance (270,000) (270,000) (11,972) 258,028 Fund balance - Beginning of year 270,000 270,000 259,284 (10,716) Fund balance - End of year $ - $ - 247,312 $ 247,312 Unrealized gain (loss) on investments 1,786 Net position, GAAP basis - End of year $ 249,098 Totals may not foot due to rounding 157 Deschutes County, Oregon Legal Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Budgeted Amounts Net position, GAAP basis - End of year $ (799,844) Totals may not foot due to rounding 158 Original Variance with Budget Final Budget Actual Final Budget REVENUES Charges for services $ 1,107,192 $ 1,107,192 $ 1,107,814 $ 622 Intergovernmental - - 11,271 11,271 Investment earnings 5,000 5,000 3,975 (1,025) Transfers in 146,961 146,961 146,961 - Total revenues 1,259,153 1,259,153 1,270,021 10,868 EXPENDITURES Currrent - departmental: County services 1,303,587 1,303,587 1,276,835 26,752 Not allocated to organizational units: Contingency 105,566 105,566 - 105,566 Total expenditures 1,409,153 1,409,153 1,276,835 132,318 Net change in fund balance (150,000) (150,000) (6,814) 143,186 Fund balance - Beginning of year 150,000 150,000 143,521 (6,479) Fund balance - End of year $ - $ - 136,706 $ 136,706 Receivables not recognized on GAAP basis (11,271) Unrealized gain (loss) on investments 915 Deferred outflows of resources 446,837 Accrued compensated leave (162,864) Other postemployment benefits (171,184) Net pension liability (931,970) Deferred inflows of resources - OPEB (59,500) Deferred inflows of resources - pension (47,513) Net position, GAAP basis - End of year $ (799,844) Totals may not foot due to rounding 158 Deschutes County, Oregon Human Resources Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Net position, GAAP basis - End of year $ (659,643) Totals may not foot due to rounding 159 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 1,234,959 $ 1,234,959 $ 1,228,150 $ (6,809) Intergovernmental - - 150 150 Investment earnings 9,000 9,000 5,369 (3,631) Total revenues 1,243,959 1,243,959 1,233,669 (10,290) EXPENDITURES Currrent - departmental: County services 1,317,324 1,317,324 1,264,312 53,012 Not allocated to organizational units: Contingency 122,345 122,345 - 122,345 Total expenditures 1,439,669 1,439,669 1,264,312 175,357 Net change in fund balance (195,710) (195,710) (30,643) 165,067 Fund balance - Beginning of year 195,710 195,710 233,215 37,505 Fund balance - End of year $ - $ - 202,572 $ 202,572 Receivables not recognized on GAAP basis (150) Unrealized gain (loss) on investments 1,256 Deferred outflows of resources 409,213 Accrued compensated leave (111,884) Other postemployment benefits (195,639) Net pension liability (853,497) Deferred inflows of resources - OPEB (68,000) Deferred inflows of resources - pension (43,513) Net position, GAAP basis - End of year $ (659,643) Totals may not foot due to rounding 159 Deschutes County, Oregon Information Technology Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Net position, GAAP basis - End of year $ (1,575,101) Totals may not foot due to rounding 160 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 2,519,104 $ 2,519,104 $ 2,519,109 $ 5 Intergovernmental - - 59,386 59,386 Investment earnings 9,000 9,000 11,848 2,848 Transfers in 66,000 66,000 66,000 - Total revenues 2,594,104 2,594,104 2,656,343 62,239 EXPENDITURES Currrent - departmental: County services 2,742,007 2,742,007 2,649,419 92,588 Not allocated to organizational units: Transfers out 7,858 7,858 7,858 - Contingency 252,403 252,403 - 252,403 Total expenditures 3,002,268 3,002,268 2,657,277 344,991 Net change in fund balance (408,164) (408,164) (934) 407,230 Fund balance - Beginning of year 408,164 408,164 544,474 136,310 Fund balance - End of year $ - $ - 543,541 $ 543,541 Receivables not recognized on GAAP basis (59,386) Unrealized gain (loss) on investments 3,669 Deferred outflows of resources 1,002,050 Accrued compensated leave (351,051) Other postemployment benefits (383,941) Net pension liability (2,089,981) Deferred inflows of resources - OPEB (133,451) Deferred inflows of resources - pension (106,550) Net position, GAAP basis - End of year $ (1,575,101) Totals may not foot due to rounding 160 Deschutes County, Oregon Information Technology Reserve Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Totals may not foot due to rounding 161 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 234,000 $ 234,000 $ 233,999 $ (1) Investment earnings 17,000 17,000 14,284 (2,716) Total revenues 251,000 251,000 248,283 (2,717) EXPENDITURES Currrent - departmental: County services 296,000 296,000 229,594 66,406 Total expenditures 296,000 296,000 229,594 66,406 Net change in fund balance (45,000) (45,000) 18,689 63,689 Fund balance - Beginning of year 526,231 526,231 703,582 177,351 Fund balance - End of year $ 481,231 $ 481,231 722,271 $ 241,040 Unrealized gain (loss) on investments 5,458 Capital assets (net of accumulated depreciation) 433,677 Net position, GAAP basis - End of year $ 1,161,406 Totals may not foot due to rounding 161 Deschutes County, Oregon Insurance Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 Net position, GAAP basis - End of year $ 3,832,703 Totals may not foot due to rounding 162 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 3,358,039 $ 3,358,039 $ 3,767,363 $ 409,324 Intergovernmental - - 12,962 12,962 Investment earnings 137,000 137,000 150,197 13,197 Total revenues 3,495,039 3,495,039 3,930,523 435,484 EXPENDITURES Currrent - departmental: County services 4,132,295 4,132,295 2,440,263 1,692,032 Not allocated to organizational units: Transfers out 6,918 6,918 6,918 - Contingency 5,455,826 5,455,826 - 5,455,826 Total expenditures 9,595,039 9,595,039 2,447,181 7,147,858 Net change in fund balance (6,100,000) (6,100,000) 1,483,342 7,583,342 Fund balance - Beginning of year 6,100,000 6,100,000 7,193,407 1,093,407 Fund balance - End of year $ - $ - 8,676,750 $ 8,676,750 Receivables not recognized on GAAP basis (12,962) Unrealized gain (loss) on investments 63,111 Capital assets (net of accumulated depreciation) 26,721 Deferred outflows of resources 135,872 Accrued compensated leave (5,489) Other postemployment benefits (55,023) Net pension liability (283,389) Accrued claims payable (4,679,315) Deferred inflows of resources - OPEB (19,125) Deferred inflows of resources - pension (14,448) Net position, GAAP basis - End of year $ 3,832,703 Totals may not foot due to rounding 162 Deschutes County, Oregon Health Benefits Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2020 EXPENDITURES Currrent - departmental: County services 22,115,011 24,115,011 22,953,057 1,161,955 Not allocated to organizational units: Contingency 16,309,716 14,309,716 - 14,309,716 Total expenditures 38,424,727 38,424,727 22,953,057 15,471,671 Net change in fund balance (16,106,294) (16,106,294) (462,072) 15,644,222 Fund balance - Beginning of year 16,106,294 16,106,294 16,563,905 457,611 Fund balance - End of year $ - $ - 16,101,833 $ 16,101,833 Unrealized gain (loss) on investments 134,697 Accrued claims payable (449,643) Net position, GAAP basis - End of year $ 15,786,888 Totals may not foot due to rounding 163 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 21,972,433 $ 21,972,433 $ 22,156,331 $ 183,898 Investment earnings 346,000 346,000 334,654 (11,346) Total revenues 22,318,433 22,318,433 22,490,985 172,552 EXPENDITURES Currrent - departmental: County services 22,115,011 24,115,011 22,953,057 1,161,955 Not allocated to organizational units: Contingency 16,309,716 14,309,716 - 14,309,716 Total expenditures 38,424,727 38,424,727 22,953,057 15,471,671 Net change in fund balance (16,106,294) (16,106,294) (462,072) 15,644,222 Fund balance - Beginning of year 16,106,294 16,106,294 16,563,905 457,611 Fund balance - End of year $ - $ - 16,101,833 $ 16,101,833 Unrealized gain (loss) on investments 134,697 Accrued claims payable (449,643) Net position, GAAP basis - End of year $ 15,786,888 Totals may not foot due to rounding 163 Fiduciary Funds Statement of Changes in Fiduciary Net Position — Custodial Funds As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County Fiduciary Funds Statement of Changes in Assets and Liabilities - Agency Funds - Detail Activity Year Ended June 30, 2020 Balance Balance July 1, 2019 Additions Deductions June 30, 2020 Amounts Held for Others Assets Cash, cash equivalents and investments, at fair value; plus accrued interest $ 5,425,126 $ 413,321,661 $ 412,687,072 $ 6,059,715 Accounts receivable 19,870 345,497 320,098 45,269 $ 5,444,996 $ 413,667,158 $ 413,007,171 $ 6,104,983 Liabilities Accounts payable $ 134,923 $ 12,672,954 $ 11,389,812 $ 1,418,066 Due to other entities Governmental 2,841,365 398,214,379 399,383,750 1,671,993 Others 2,468,708 2,779,826 2,233,609 3,014,924 $ 5,444,996 $ 413,667,158 $ 413,007,171 $ 6,104,983 Totals may not foot due to rounding 164 Other Financial Schedules As of and for the Year Ended June 30, 2020 Deschutes County, Oregon Deschutes County, Oregon Schedule of Property Tax Transactions - All County Taxes June 30, 2020 Summary of Taxes Receivable at June 30, 2020: Deschutes County General Fund $ 704,091 Special Revenue Funds 1,049,536 Other taxing jurisdictions 6,903,583 $ 8,657,210 Totals may not foot due to rounding 165 Beginning Turnovers from Balance and FY Interest County Taxes Receivable Tax Year 2020 Levy Adjustments (Discount) Treasurer June 30, 2020 FY 2010 & Prior $ 64,819 $ 104,784 $ 670 $ 106,523 $ 63,751 FY 2011 13,401 117,926 (399) 117,701 13,227 FY 2012 12,097 120,404 (2,551) 119,238 10,711 FY 2013 19,855 202,500 (1,936) 209,353 11,067 FY 2014 25,826 295,590 (5,015) 300,318 16,082 FY 2015 97,412 297,447 5,860 334,867 65,852 FY 2016 464,055 2,118,123 94,522 2,638,355 38,345 FY 2017 1,115,562 779,431 181,235 1,700,418 375,810 FY 2018 2,026,059 (12,166) 185,098 1,132,239 1,066,751 FY 2019 4,870,105 (25,917) 195,956 3,088,085 1,952,060 FY 2020 398,435,591 20,726 (10,227,625) 383,185,137 5,043,554 TOTALS $ 407,144,782 $ 4,018,847 $ (9,574,185) 392,932,235 $ 8,657,210 Other Distributions: Interest earned on unsegregated taxes 167,091 Other tax distribution and credits 2,114,754 TOTAL CASH COLLECTIONS $ 395,214,080 Summary of Taxes Receivable at June 30, 2020: Deschutes County General Fund $ 704,091 Special Revenue Funds 1,049,536 Other taxing jurisdictions 6,903,583 $ 8,657,210 Totals may not foot due to rounding 165 Deschutes County, Oregon Schedule of Long -Term Debt Principal Transactions Year Ended June 30, 2020 Final Amount of Outstanding Date of Maturity Original July 1, Bonds Series Issue Date Issue 2019 Issued Pension Bonds 800,000 1,225,000 18,265,000 255,000 Series 2002 03/28/2002 06/01/2028 $ 5,429,586 $ 3,773,615 $ Series 2004 05/27/2004 06/01/2028 7,090,000 5,325,000 Total Pension Bonds 12,519,586 9,098,615 Bonds Series 2010 05/27/2010 12/01/2029 1,320,000 865,000 Refunding Series 2012 03/29/2012 12/01/2032 26,345,000 19,490,000 Series 2013 08/08/2013 06/01/2038 8,405,000 7,015,000 Refunding Series 2019 03/12/2019 06/01/2028 6,455,000 6,455,000 Total Bonds 55,375,000 33,825,000 Notes from Direct Borrowings Refunding Series 2015 12/08/2015 12/01/2026 3,775,000 2,602,400 Refunding Series 2016 05/25/2016 06/01/2027 6,277,000 4,680,000 Total Notes 10,052,000 7,282,400 Total Long -Term Debt $ 77,946,586 $ 50,206,015 $ Totals may not foot due to rounding 166 Bonds Outstanding Called and June 30, Matured 2020 $ 118,615 $ 3,655,000 385,000 4,940,000 503,615 8,595,000 65,000 800,000 1,225,000 18,265,000 255,000 6,760,000 585,000 5,870,000 - 2,130,000 31,695,000 402,600 2,199,800 552,000 4,128,000 - 954,600 6,327,800 - $ 3,588,215 $ 46,617,800 Series Pension Bonds Series 2002 Series 2004 Total Pension Bonds Bonds Series 2010 Refunding Series 2012 Series 2013 Refunding Series 2019 Total Bonds Notes from Direct Borrowings Refunding Series 2015 Refunding Series 2016 Total Notes Total Long -Term Debt Deschutes County, Oregon Schedule of Long -Term Debt Interest Transactions Year Ended June 30, 2020 Interest $ 1,665,846 $ Rates on Outstanding Coupons Outstanding Outstanding July 1, Bonds Called and June 30, Balances 2019 Issued Matured 2020 6.85% $ 1,665,846 $ 5.35%-6.095% 1,758,365 288,181 3,424,211 2-4% 196,769 2-4% 4,374,089 3.25-4.5% 3,341,806 5.00% 1,717,000 9,629,665 1.99-2.49% 182,454 1.68% 360,713 543,166 $ 13,597,042 $ Totals may not foot due to rounding 167 $ 469,493 $ 1,196,353 323,051 1,435,315 792,544 2,631,667 30,799 165,970 562,864 3,811,226 288,181 3,053,625 322,750 1,394,250 1,204,594 8,425,071 47,782 134,672 78,624 282,089 126,406 416,761 - $ 2,123,544 $ 11,473,498 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Pension Obligation Bonds June 30, 2020 Totals may not foot due to rounding 168 Total Requirements Series 2002 Series 2004 Year of Maturity Principal Interest Total Principal Interest Principal Interest 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 $ 8,595,000 $ 2,631,667 $ 11,226,667 $ 3,655,000 $ 1,196,353 $ 4,940,000 $ 1,435,315 Totals may not foot due to rounding 168 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Governmental Activities June 30, 2020 Totals may not foot due to rounding 169 Total Requirements Series 2010 Ref Series 2012 Year of Maturity Principal Interest Total Principal Interest Principal Interest 2021 $ 2,188,510 $ 1,046,672 $ 3,235,182 $ 65,000 $ 28,858 $ 1,029,600 $ 425,136 2022 2,262,236 977,480 3,239,716 70,000 26,713 1,058,159 398,449 2023 2,351,317 894,737 3,246,054 70,000 24,394 1,094,824 365,310 2024 2,305,329 808,277 3,113,606 75,000 21,806 994,375 330,984 2025 2,389,863 724,348 3,114,212 80,000 18,900 1,022,218 303,221 2026 2,243,015 637,549 2,880,564 80,000 15,900 1,058,015 272,017 2027 2,320,858 550,140 2,870,998 85,000 12,700 1,085,858 239,859 2028 2,412,678 459,387 2,872,065 90,000 9,200 1,117,678 206,806 2029 1,599,498 364,980 1,964,477 90,000 5,600 1,149,498 172,799 2030 1,659,273 311,798 1,971,071 95,000 1,900 1,189,273 137,717 2031 1,619,048 258,009 1,877,056 - - 1,229,048 100,828 2032 1,677,800 203,471 1,881,271 1,272,800 61,890 2033 1,732,575 145,876 1,878,451 1,312,575 21,001 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 - - - $ 29,151,998 $ 7,715,050 $ 36,867,048 $ 800,000 $ 165,970 $ 14,613,919 $ 3,036,017 Totals may not foot due to rounding 169 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Governmental Activities June 30, 2020 Totals may not foot due to rounding 170 Series 2013 Series 2019 Direct Borrowing -2015 Year of Maturity Principal Interest Principal Interest Principal Interest 2021 $ 265,000 $ 279,256 $ 615,000 $ 293,500 $ 213,909 $ 19,922 2022 275,000 269,981 645,000 262,750 214,077 19,587 2023 285,000 260,356 680,000 230,500 221,493 14,177 2024 295,000 250,381 715,000 196,500 225,954 8,606 2025 305,000 238,581 750,000 160,750 232,646 2,896 2026 320,000 226,381 785,000 123,250 - - 2027 330,000 213,581 820,000 84,000 2028 345,000 200,381 860,000 43,000 2029 360,000 186,581 - - 2030 375,000 172,181 - - - - 2031 390,000 157,181 - - - - 2032 405,000 141,581 - - - - 2033 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 - - - - $ 6,760,000 $ 3,053,625 $ 5,870,000 $ 1,394,250 $ 1,108,079 $ 65,189 Totals may not foot due to rounding 170 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Business Type Activities June 30, 2020 Totals may not foot due to rounding 171 Total Requirements Refunding Series 2012 Direct Borrowing - 2015 Direct Borrowing - 2016 Year of Maturity Principal Interest Total Principal Interest Principal Interest Principal Interest 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 - - - - $ 8,870,802 $ 1,126,781 $ 9,997,583 $ 3,651,081 $ 775,209 $ 1,091,721 $ 69,483 $ 4,128,000 $ 282,089 Totals may not foot due to rounding 171 Statistical Section As of and for the Year Ended June 30, 2020 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 173-182 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 183-188 These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. Debt Capacity 189-195 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 196-197 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 198-201 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 year 2014; schedules containing information for years prior to fiscal year 2014 have not been restated in accordance with GASB No. 65, unless otherwise stated. 172 Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) Total governmental activities net position $ 170,096,945 $ 170,734,308 $ 167,918,714 $ 177,292,478 $ 162,723,762 Business -type activities Net investment in capital assets $ 25,780,444 $ 25,824,953 $ 27,369,640 $ 27,996,595 $ 31,628,811 Restricted 1,191,785 951,696 726,437 326,768 416,356 Unrestricted (1,399,646) (1,667,939) (3,269,965) (1,578,435) (3,620,616) Total business -type activities net position $ 25,572,583 $ 25,108,710 $ 24,826,112 $ 26,744,928 $ 28,424,551 Primary government Fiscal Year Net investment in capital assets $ 118,305,719 $ 121,337,110 $ 116,832,440 $ 118,525,048 2011 2012 2013 2014 2015 1,226,325 58,190,535 Unrestricted Governmental activities 69,538,424 72,817,030 84,286,032 9,943,475 Net investment in capital assets $ 92,525,275 $ 95,512,157 $ 89,462,800 $ 90,528,453 $ 91,385,492 Restricted 3,979,615 4,015,788 2,368,923 899,558 57,774,179 Unrestricted 73,592,055 71,206,363 76,086,991 85,864,467 13,564,091 Total governmental activities net position $ 170,096,945 $ 170,734,308 $ 167,918,714 $ 177,292,478 $ 162,723,762 Business -type activities Net investment in capital assets $ 25,780,444 $ 25,824,953 $ 27,369,640 $ 27,996,595 $ 31,628,811 Restricted 1,191,785 951,696 726,437 326,768 416,356 Unrestricted (1,399,646) (1,667,939) (3,269,965) (1,578,435) (3,620,616) Total business -type activities net position $ 25,572,583 $ 25,108,710 $ 24,826,112 $ 26,744,928 $ 28,424,551 Primary government Net investment in capital assets $ 118,305,719 $ 121,337,110 $ 116,832,440 $ 118,525,048 $ 123,014,302 Restricted 5,171,400 4,967,484 3,095,362 1,226,325 58,190,535 Unrestricted 72,192,409 69,538,424 72,817,030 84,286,032 9,943,475 Total primary government net position $ 195,669,528 $ 195,843,018 $ 192,744,832 $ 204,037,405 $ 191,148,312 Totals may not foot due to rounding 173 Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) f►IT176I Governmental activities Fiscal Year 2017 2018 2019 2020 Net investment in capital assets $ 101,724,105 $ 108,576,334 $ 113,719,602 $ 115,293,413 $ 121,372,936 Restricted 60,999,381 60,223,775 51,604,150 66,660,268 75,890,142 Unrestricted (9,004,273) (10,585,809) (13,117,584) (11,495,168) (14,936,196) Unrestricted (13,436,194) (14,480,955) (15,162,662) (9,936,001) Total governmental activities net position $ 153,719,213 $ 158,214,300 $ 152,206,168 $ 170,458,513 $ 182,326,882 Total primary government net position $ 183,094,080 $ 189,568,588 $ 187,186,918 $ 207,959,885 Business -type activities Net investment in capital assets $ 33,549,044 $ 35,249,434 $ 37,025,828 $ 35,942,205 $ 38,733,640 Restricted 257,743 - - - - Unrestricted (4,431,920) (3,895,146) (2,045,079) 1,559,167 (1,509,994) Total business -type activities net position $ 29,374,867 $ 31,354,288 $ 34,980,750 $ 37,501,372 $ 37,223,647 Primary government Net investment in capital assets $ 135,273,150 $ 143,825,767 $ 150,745,430 $ 151,235,618 $ 160,106,576 Restricted 61,257,124 60,223,775 51,604,150 66,660,268 75,890,142 Unrestricted (13,436,194) (14,480,955) (15,162,662) (9,936,001) (16,446,189) Total primary government net position $ 183,094,080 $ 189,568,588 $ 187,186,918 $ 207,959,885 $ 219,550,529 Totals may not foot due to rounding 174 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Total primary government program revenues $ 76,555,827 $ 76,846,896 $ 77,767,282 $ 90,100,587 $ 91,890,509 Net (Expense)/Revenue Governmental activities $ (60,473,529) $ (63,704,765) $ (65,112,999) $ (56,917,421) $ (41,801,988) Business -type activities (2,651,889) (3,305,787) (3,084,584) (459,255) (811,190) Total primary government net expense $ (63,125,418) $ (67,010,552) $ (68,197,583) $ (57,376,677) $ (42,613,178) Totals may not foot due to rounding 175 Fiscal Year 2011 2012 2013 2014 2015 Expenses Governmental activities: General government $ 23,520,870 $ 25,576,233 $ 25,997,251 $ 26,487,066 $ 25,448,635 Public safety 53,944,031 56,696,103 57,806,152 57,786,656 46,351,357 County roads 18,600,706 16,436,367 16,139,486 15,441,429 16,818,974 Health and welfare 28,828,892 30,416,145 31,682,855 35,154,506 31,944,749 Interest and fiscal charges 3,275,788 2,716,110 2,485,174 2,556,364 2,385,397 Total governmental activities expenses 128,170,287 131,840,958 134,110,918 137,426,020 122,949,114 Business -type activities: Solid waste 7,347,661 7,801,912 8,122,538 6,327,028 7,614,444 Fair & expo center 3,819,399 3,876,575 3,392,264 3,368,464 3,466,338 RV park 343,898 338,003 339,145 355,752 473,792 Total business -type activities expenses 11,510,958 12,016,490 11,853,947 10,051,244 11,554,573 Total primary government expenses $139,681,245 $143,857,448 $145,964,865 $147,477,264 $134,503,687 Program Revenues Governmental activities: Charges for services: General government $ 11,744,342 $ 9,975,482 $ 11,827,132 $ 11,593,147 $ 14,463,863 Public safety 7,434,816 6,317,924 8,876,636 6,252,467 6,051,487 County roads 13,808,489 15,917,719 14,730,662 16,933,084 17,690,071 Health and welfare 1,747,716 2,062,633 2,243,963 5,222,623 1,836,516 Operating grants and contributions 32,195,732 33,630,072 31,233,012 40,070,038 40,911,962 Capital grants and contributions 765,663 232,363 86,514 437,240 193,226 Total governmental program revenues 67,696,758 68,136,193 68,997,919 80,508,599 81,147,126 Business -type activities: Charges for services: Solid waste 6,665,487 6,506,366 6,793,369 7,364,322 8,088,089 Fair & expo center 1,992,262 1,963,398 1,761,108 1,783,377 2,257,064 RV park 162,049 154,633 165,096 217,036 346,987 Operating grants and contributions 39,271 86,306 49,790 50,964 51,244 Capital grants and contributions - - - 176,289 - Total business -type program revenues 8,859,069 8,710,703 8,769,363 9,591,988 10,743,383 Total primary government program revenues $ 76,555,827 $ 76,846,896 $ 77,767,282 $ 90,100,587 $ 91,890,509 Net (Expense)/Revenue Governmental activities $ (60,473,529) $ (63,704,765) $ (65,112,999) $ (56,917,421) $ (41,801,988) Business -type activities (2,651,889) (3,305,787) (3,084,584) (459,255) (811,190) Total primary government net expense $ (63,125,418) $ (67,010,552) $ (68,197,583) $ (57,376,677) $ (42,613,178) Totals may not foot due to rounding 175 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Total primary government program revenues $107,307,688 $ 98,851,866 $114,614,975 $115,221,305 $123,161,341 Net (Expense)/Revenue Governmental activities $ (79,329,594) $ (69,065,723) $ (70,969,644) $ (67,404,738) $ (78,258,747) Business -type activities (2,213,620) (1,153,403) (124,060) 548,475 (2,260,820) Total primary government net expense $ (81,543,214) $ (70,219,127) $ (71,093,704) $ (66,856,263) $ (80,519,567) Totals may not foot due to rounding 176 (continued) Fiscal Year 2016 2017 2018 2019 2020 Expenses Governmental activities: General government $ 35,463,814 $ 30,011,545 $ 36,105,776 $ 32,523,927 $ 50,607,355 Public safety 74,941,547 65,276,283 64,258,765 70,253,604 70,086,827 County roads 18,269,586 17,627,051 18,122,984 17,645,717 17,743,525 Health and welfare 43,850,703 39,370,403 50,068,445 45,086,737 45,728,065 Interest and fiscal charges 2,284,295 2,175,774 2,104,761 2,024,851 1,808,997 Total governmental activities expenses 174,809,945 154,461,056 170,660,730 167,534,837 185,974,769 Business -type activities: Solid waste 9,272,404 10,028,102 10,131,364 9,047,200 12,526,176 Fair & expo center 4,290,630 4,173,908 4,504,592 5,085,859 4,759,772 RV park 477,924 407,928 411,993 409,672 420,191 Total business -type activities expenses 14,040,958 14,609,937 15,047,948 14,542,731 17,706,139 Total primary government expenses $188,850,903 $169,070,993 $185,708,679 $182,077,568 $ 203,680,908 Program Revenues Governmental activities: Charges for services: General government $ 18,675,554 $ 16,435,374 $ 16,271,509 $ 15,487,329 $ 16,303,016 Public safety 5,620,314 6,765,336 4,653,489 3,870,888 2,981,327 County roads 19,168,851 19,082,452 21,577,005 24,081,955 25,465,962 Health and welfare 2,021,579 1,940,978 2,683,447 2,892,082 3,161,716 Operating grants and contributions 42,990,874 40,087,120 52,587,330 53,767,845 59,658,417 Capital grants and contributions 7,003,178 1,084,073 1,918,307 30,000 145,584 Total governmental program revenues 95,480,351 85,395,333 99,691,086 100,130,099 107,716,021 Business -type activities: Charges for services: Solid waste 8,865,019 9,791,844 11,187,151 11,421,763 12,254,566 Fair & expo center 2,500,139 2,710,373 2,511,127 3,085,338 2,702,878 RV park 408,513 384,279 438,716 476,365 434,708 Operating grants and contributions 53,667 570,037 786,895 107,740 53,167 Capital grants and contributions - - - - - Total business -type program revenues 11,827,338 13,456,534 14,923,889 15,091,206 15,445,320 Total primary government program revenues $107,307,688 $ 98,851,866 $114,614,975 $115,221,305 $123,161,341 Net (Expense)/Revenue Governmental activities $ (79,329,594) $ (69,065,723) $ (70,969,644) $ (67,404,738) $ (78,258,747) Business -type activities (2,213,620) (1,153,403) (124,060) 548,475 (2,260,820) Total primary government net expense $ (81,543,214) $ (70,219,127) $ (71,093,704) $ (66,856,263) $ (80,519,567) Totals may not foot due to rounding 176 (continued) Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not foot due to rounding 177 Fiscal Year 2011 2012 2013 2014 2015 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, general purpose levy $ 33,663,728 $ 33,682,238 $ 33,971,127 $ 35,079,263 $ 31,747,666 Property taxes, sheriff services levy 23,666,633 23,551,915 24,285,093 25,284,848 26,640,494 Property taxes, bonded debt levy 3,460,558 3,290,215 3,083,800 1,982,347 97,428 Transient room tax 3,151,974 3,357,365 3,656,126 4,340,159 5,248,199 Investment earnings 981,569 908,178 787,866 986,444 1,188,209 Transfers (541,385) (447,771) (337,272) (539,938) (559,305) Loss on discontinued project - - (3,149,335) - - Total governmental activities 64,383,077 64,342,140 62,297,405 67,133,123 64,362,691 Business -type activities: Taxes Property taxes, bonded debt levy 2,505,852 2,334,005 2,417,152 2,086,179 2,623,509 Investment earnings 71,876 60,134 47,562 52,612 71,740 Special item - - - - - Transfers 541,385 447,771 337,272 539,938 559,305 Total business -type activities 3,119,113 2,841,910 2,801,986 2,678,729 3,254,554 Total primary government $ 67,502,190 $ 67,184,050 $ 65,099,391 $ 69,811,852 $ 67,617,246 Change in Net Position Governmental activities $ 3,909,548 $ 637,375 $ (2,815,594) $ 10,215,702 $ 22,560,704 Business -type activities 467,224 (463,877) (282,598) 2,219,473 2,443,364 Total primary government $ 4,376,772 $ 173,498 $ (3,098,192) $ 12,435,175 $ 25,004,068 Totals may not foot due to rounding 177 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not foot due to rounding 178 (concluded) Fiscal Year 2016 2017 2018 2019 2020 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, general purpose levy $ 33,533,883 $ 35,363,260 $ 36,746,058 $ 38,353,835 $ 40,987,718 Property taxes, sheriff services levy 29,508,509 31,128,138 33,028,808 35,960,629 38,315,278 Property taxes, bonded debt levy 84,233 - - - - Transient room tax 6,068,098 6,408,477 7,011,471 7,829,489 7,560,467 Investment earnings 1,643,757 1,351,378 1,940,860 5,151,181 4,888,442 Transfers (513,431) (690,447) (631,722) (1,638,051) (1,624,789) Loss on discontinued project - - - - - Total governmental activities 70,325,049 73,560,806 78,095,475 85,657,083 90,127,116 Business -type activities: Taxes Property taxes, bonded debt levy 2,555,831 2,368,281 - - - Investment earnings 94,674 74,094 129,837 334,098 358,306 Special item - - 3,369,910 - - Transfers 513,431 690,447 631,722 1,638,050 1,624,789 Total business -type activities 3,163,935 3,132,822 4,131,469 1,972,148 1,983,094 Total primary government $ 73,488,985 $ 76,693,630 $ 82,226,944 $ 87,629,231 $ 92,110,210 Change in Net Position Governmental activities $ (9,004,545) $ 4,495,083 $ 7,125,831 $ 18,252,345 $ 11,868,368 Business -type activities 950,315 1,979,419 4,007,409 2,520,623 (277,725) Total primary government $ (8,054,229) $ 6,474,504 $ 11,133,240 $ 20,772,968 $ 11,590,643 Totals may not foot due to rounding 178 (concluded) Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Total all other governmental funds $ 57,124,357 $ 60,591,912 $ 68,063,772 $ 78,887,611 $ 79,647,264 Totals may not foot due to rounding 179 Fiscal Year 2011 2012 2013 2014 2015 General Fund Unreserved $ - $ - $ - $ - $ - Nonspendable - - - - 516,523 Committed - - - - 1,782,674 Assigned 9,481,113 10,082,716 8,657,374 8,031,837 6,222,698 Unassigned 4,623,757 5,244,633 6,836,112 7,649,760 9,183,941 Total General Fund $ 14,104,870 $ 15,327,349 $ 15,493,486 $ 15,681,597 $ 17,705,836 All Other Governmental Funds Reserved/Nonspendable $ 888,106 $ 894,228 $ 1,272,249 $ 1,418,998 $ 2,542,621 Restricted, reported in: Special revenue funds 36,777,325 42,713,782 52,491,478 64,710,171 62,650,077 Capital projects funds 1,251,643 1,048,534 - - - Debt service funds 661,359 585,900 476,186 7,631 10,970 Total Restricted 38,690,327 44,348,216 52,967,664 64,717,802 62,661,047 Committed, reported in: Special revenue funds 13,396,391 11,821,006 10,372,114 13,456,033 13,566,455 Capital projects funds 122,361 122,361 - 606,292 394,405 Debt service funds - - 579,897 480,416 482,736 Total Committed 13,518,752 11,943,367 10,952,011 14,542,741 14,443,596 Assigned, reported in: Special revenue funds 6,236,570 5,903,050 4,170,144 - - Capital projects funds 174,647 740,173 759,229 - - Debt service funds 839,529 752,599 - - - Total Assigned 7,250,746 7,395,822 4,929,373 - - Unassigned, reported in: Special revenue funds - - - - Capital projects funds (3,223,574) (3,989,721) (2,057,525) (1,791,930) - Total Unassigned (3,223,574) (3,989,721) (2,057,525) (1,791,930) - Total all other governmental funds $ 57,124,357 $ 60,591,912 $ 68,063,772 $ 78,887,611 $ 79,647,264 Totals may not foot due to rounding 179 Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2016 2017 2018 General Fund 2019 2020 Unreserved $ - $ - $ - $ - $ - Nonspendable 498,337 469,020 445,442 144,473 148,609 Committed 3,944,405 7,505,074 10,670,276 13,048,013 7,557,563 Assigned 6,311,144 5,369,619 6,598,027 6,743,043 7,362,270 Unassigned 10,620,333 10,483,020 11,461,766 12,458,530 13,620,704 Total General Fund $ 21,374,220 $ 23,826,733 $ 29,175,511 $ 32,394,059 $ 28,689,146 All Other Governmental Funds Reserved/Nonspendable $ 2,663,703 $ 2,859,789 $ 1,786,302 $ 2,475,033 $ 2,690,983 Restricted, reported in: Special revenue funds 71,847,628 65,125,286 67,996,477 76,263,618 81,399,756 Capital projects funds - 7,809,685 9,542,598 17,794,245 25,086,097 Debt service funds - - - - - Total Restricted 71,847,628 72,934,971 77,539,075 94,057,863 106,485,853 Committed, reported in: Special revenue funds 11,491,305 13,469,571 14,715,465 16,713,561 2,867,188 Capital projects funds - - - - 4,928,892 Debt service funds 472,561 558,106 661,151 837,063 959,032 Total Committed 11,963,866 14,027,677 15,376,615 17,550,624 8,755,111 Assigned, reported in: Special revenue funds - - - Capital projects funds - - - Debt service funds - - - Total Assigned - - - Unassigned, reported in: Special revenue funds - - - Capital projects funds - - - Total Unassigned - - - Total all other governmental funds $ 86,475,197 $ 89,822,437 $ 94,701,992 Totals may not foot due to rounding 180 - (39,033) - (39,033) $114,083,519 $117,892,914 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Totals may not foot due to rounding 181 Fiscal Year 2011 2012 2013 2014 2015 Revenues Taxes $ 63,806,103 $ 64,546,883 $ 66,038,130 $ 67,157,527 $ 64,043,653 Licenses and permits 689,142 778,227 900,224 1,285,225 1,395,229 Fines, forfeitures and penalties 1,596,621 1,417,245 1,355,143 1,563,725 1,713,279 Special assessments 193,605 161,466 176,518 125,999 116,946 Interest and rents 2,595,846 2,559,272 2,463,869 2,616,264 2,801,165 Intergovernmental 82,326,719 85,663,964 83,911,882 95,464,165 97,854,728 Charges for services 17,515,802 16,159,689 19,108,543 21,137,727 24,577,248 Other 505,740 439,269 832,505 681,354 1,867,249 Total revenues 169,229,578 171,726,015 174,786,814 190,031,985 194,369,496 Expenditures General government 22,614,321 22,606,034 23,036,320 24,185,783 25,028,450 Public safety 78,159,464 81,610,756 83,718,648 87,910,026 89,007,502 County roads 16,730,401 16,638,310 13,832,024 14,252,333 15,038,232 Health and welfare 31,725,577 32,905,053 35,248,861 39,671,077 46,096,095 Education 979,980 687,511 684,632 685,916 656,218 Debt service Principal 5,678,728 5,296,870 5,720,036 5,387,017 3,270,413 Interest 3,157,964 2,631,321 2,386,628 2,438,429 2,354,101 Trustee fees 3,218 2,950 2,610 27,810 - Debt issuance costs - 372,216 23,429 219,610 - Capital outlay 8,245,442 3,692,419 2,465,339 12,563,515 6,906,759 Total expenditures 167,295,094 166,443,440 167,118,527 187,341,516 188,357,770 Excess of revenues over (under) expenditures 1,934,484 5,282,575 7,668,287 2,690,469 6,011,726 Other Financing Sources (Uses) Transfers in 12,313,816 10,701,765 13,191,583 11,233,103 14,542,905 Transfers out (14,012,126) (11,673,036) (13,625,455) (11,831,461) (15,350,629) Debt issuance 40,000 21,893,362 3,000,000 8,555,000 - Bond premium/discount - - 49,109 218,092 - Payments to escrow agent - (21,520,747) (3,023,549) - - Increase/(decrease) in inventory 81,410 6,122 378,021 146,749 242,641 Total other financing sources (uses) (1,576,900) (592,534) (30,291) 8,321,483 (565,083) Net change in fund balances $ 357,584 $ 4,690,041 $ 7,637,996 $ 11,011,952 $ 5,446,643 Debt service as a percentage of noncapital expenditures 5.6% 5.0% 4.9% 4.5% 3.1% Totals may not foot due to rounding 181 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Totals may not foot due to rounding 182 Fiscal Year 2016 2017 2018 2019 2020 Revenues Taxes $ 69,254,662 $ 72,725,317 $ 76,915,410 $ 82,039,791 $ 86,964,729 Licenses and permits 1,513,320 1,804,402 1,658,904 1,846,647 1,827,973 Fines, forfeitures and penalties 1,666,944 1,600,649 1,466,676 1,525,703 1,315,245 Special assessments 85,439 70,655 66,830 60,172 24,635 Interest and rents 3,191,867 3,042,808 3,555,878 6,254,855 6,127,824 Intergovernmental 102,449,003 92,313,282 105,988,087 111,616,358 116,778,213 Charges for services 16,657,205 18,295,208 19,115,410 17,409,307 19,549,186 Other 1,268,489 1,073,927 875,507 1,577,098 2,240,573 Total revenues 196,086,929 190,926,249 209,642,702 222,329,931 234,828,378 Expenditures General government 26,813,546 26,361,777 29,061,175 30,624,676 51,467,588 Public safety 91,353,457 86,897,612 93,072,384 97,971,830 105,095,862 County roads 15,351,922 16,195,155 14,241,574 13,601,142 13,934,215 Health and welfare 36,778,966 38,856,976 46,636,552 41,929,068 44,960,663 Education 610,125 263,106 - - - Debt service Principal 3,015,338 2,895,157 3,013,331 9,963,729 2,619,154 Interest 2,259,334 2,151,095 2,079,976 2,021,171 1,909,000 Trustee fees - 2,500 2,375 106,325 1,600 Debt issuance costs - - - - - Capital outlay 7,675,279 10,376,297 7,506,798 10,105,264 12,913,134 Total expenditures 183,857,968 183,999,674 195,614,166 206,323,204 232,901,216 Excess of revenues over (under) expenditures 12,228,961 6,926,574 14,028,536 16,006,728 1,927,163 Other Financing Sources (Uses) Transfers in 10,564,827 23,284,540 18,339,320 28,268,112 33,312,721 Transfers out (12,403,247) (24,593,177) (19,240,045) (29,876,180) (35,135,401) Debt issuance 1,911,626 - - 7,512,685 - Bond premium/discount - - - - - Payments to escrow agent (1,904,328) - - - - Increase/(decrease) in inventory 98,478 181,815 (155,630) 688,731 - Total other financing sources (uses) (1,732,643) (1,126,822) (1,056,355) 6,593,348 (1,822,681) Net change in fund balances $ 10,496,318 $ 5,799,752 $ 12,972,180 $ 22,600,076 $ 104,482 Debt service as a percentage ofnoncapital expenditures 3.0% 2.9% 2.7% 6.1% 2.1% Totals may not foot due to rounding 182 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Real Property Personal Proper Manufactured Homes Fiscal Year Ended Estimated Assessed Estimated Assessed Estimated June 30, Assessed Value Actual Value Value Actual Value Value Actual Value 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 2018 22,107,667 35,571,219 482,975 482,975 74,665 103,958 2019 23,380,812 39,872,595 508,792 508,792 78,186 112,682 2020 24,642,529 43,452,591 524,739 527,739 81,184 131,478 Sources: Deschutes County Assessor's Department and Deschutes County Tax Office (1) includes tax-exempt property Totals may not foot due to rounding 183 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Public Utilities Exemptions I Total Assessed Value(1) as a Taxable Range of Total Percentage of Assessed Estimated Assessed Assessed Estimated Direct Tax Estimated Value Actual Value Value Value Actual Value Rates Paid Actual Value 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% 600,475 628,510 47,457 23,218,325 36,786,661 2.6125-6.0411 63.245% 668,084 736,374 51,211 24,584,663 41,230,443 2.5225-5.9725 59.752% 710,117 784,443 54,658 25,903,911 44,896,251 2.6825-5.9925 57.819% Totals may not foot due to rounding 184 Deschutes County, Oregon Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) County direct rates Rates levied to all taxable County properties: General Jail Bond Fairgrounds Bond Sheriff (Countywide) County Extension/41-1 CSD 911 CSD 911 Local Option _ County districts paid by all properties _ Rates levied to taxable rural County properties: Sheriff (Rural) Certain County properties are subject to one of the following rates: Bend Library Bond Redmond Library Bond Sunriver Library Bond Paid by Black Butte properties only: Black Butte Ranch CSD Black Butte Ranch CSD Local Opt Paid by Sunriver properties only: Fiscal Year Taxes are Payable 2011 2012 2013 2014 2015 1.2783 1.2783 1.2783 1.2783 1.2783 0.1358 0.1324 0.1291 0.0673 - 0.1464 0.1369 0.1405 0.1121 0.1377 0.9200 0.9200 0.9500 0.9500 0.9500 0.0224 0.0224 0.0224 0.0224 0.0224 0.1618 0.1618 0.1618 0.1618 0.1618 0.2300 0.2300 0.2300 0.2240 0.2000 2.8947 2.8818 2.9121 2.8159 2.7502 1.4000 1.4000 1.4000 1.4000 1.4000 0.0880 0.0836 0.0791 0.0723 - 0.0558 0.0498 - - - 0.0551 0.0550 0.0489 0.0475 0.5090 1.0499 1.0499 1.0499 1.0499 1.0499 0.5500 0.5500 0.5500 0.5500 0.5500 Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Range of County Direct Rates Paid 2.8947-6.2598 2.8818-6.2468 2.9121-6.2710 2.8159-6.1734 2.7502-6.1111 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 2.8035 Redmond 6.1643 4.4101 4.4101 4.4101 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 2.6417 La Pine 1.8000 1.8000 1.9000 1.9300 1.9800 City of Bend Bond - 0.2462 0.2660 0.2256 0.2120 City of Bend Local Option - - - - 0.2000 Bend Urban Renewal Special Levy 0.2791 - - - - City of Redmond Bond 0.0947 0.0831 0.0870 0.0886 0.0809 Library district rates 0.5500 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924-3.0744 1.0924-3.0744 1.0924-3.0522 1.0924-3.0691 1.0924-3.0641 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.6673 0.2200 - 1.6566 School district rates 6.4923-8.1206 6.6649-8.4065 6.6692-8.4108 6.5526-8.4699 6.2181-8.4979 Road district rates 0.3248-3.6500 0.5180-2.7331 0.4377-3.6500 0.9005-3.6500 0.7831-3.0000 Other special district rates 0.3793 0.3776 0.2895 0.2895 0.2895 Sources: Deschutes County Assessor's Office and Deschutes County Finance Department Totals may not foot due to rounding 185 Deschutes County, Oregon Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) County direct rates Rates levied to all taxable County properties: General Jail Bond Fairgrounds Bond Sheriff (Countywide) County Extension/41-1 CSD 911 CSD 911 Local Option _ County districts paid by all properties _ Rates levied to taxable rural County properties: Sheriff (Rural) Certain County properties are subject to one of the following rates: Bend Library Bond Redmond Library Bond Sunriver Library Bond Paid by Black Butte properties only: Black Butte Ranch CSD Black Butte Ranch CSD Local Opt Paid by Sunriver properties only: Fiscal Year Taxes are Payable 2016 2017 2018 2019 2020 1.2783 1.2783 1.2483 1.2183 1.2183 0.1273 0.1186 - - - 1.0200 1.0200 1.0200 1.0800 1.0800 0.0224 0.0224 0.0224 0.0224 0.0224 0.1618 0.1618 0.3618 0.3618 0.3618 0.2000 0.2000 - - - 2.8098 2.8011 2.6525 2.6825 2.6825 1.4000 1.4000 1.4000 1.3400 1.3400 0.0438 - - - - 1.0499 1.0499 1.0499 1.0499 1.0499 0.5500 0.5500 0.5500 0.5500 0.5500 Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Range of County Direct Rates Paid 2.8098-6.1198 2.8011-6.1111 2.6525-5.9625 2.6825-5.9925 2.6825-5.9925 City and town rates Bend Redmond Sisters La Pine City of Bend Bond City of Bend Local Option Bend Urban Renewal Special Levy City of Redmond Bond Library district rates Fire district rates Parks and recreation district rates School district rates Road district rates Other special district rates 2.8035 2.8035 2.8035 2.8035 2.8035 4.4101 4.4101 4.4101 4.4101 4.4101 2.6417 2.6417 2.6417 2.6417 2.6417 1.9800 1.9800 1.9800 1.9800 1.9800 0.2120 0.1895 0.1789 0.1685 0.1600 0.2000 0.2000 0.2000 0.2000 0.2000 0.0809 0.0710 0.0547 0.0547 - 0.5500 0.5500 0.5500 0.5500 0.5500 1.0924-3.0641 1.0924-2.7317 1.0924-2.7317 1.0924-2.7317 1.0924-2.7317 0.2200 - 1.4610 0.2200-1.4610 0.2200-1.4610 0.2200-1.4610 0.2200-1.4610 6.4033-8.4012 6.5893-8.4320 6.5893-8.4320 6.4912-8.2372 6.4554-8.1593 0.8140-3.0000 0.8140-3.0000 0.8140-3.0000 0.8140-3.0000 0.8140-3.0000 0.2895 0.2895 0.2895 0.2895 0.2895 Totals may not foot due to rounding 186 Deschutes County, Oregon Principal Property Taxpayers - Current Fiscal and Nine Years Ago Total $ 639,014,600 2.48% $ 464,879,355 2.62% Source: Deschutes County Assessor's Department (1): Ranking of Principal Taxpayers is based on property taxes assessed, not the taxable assessed value. (2): Taxpayer's attributable share of total assessed value in the County. Totals may not foot due to rounding 187 2020 2011 Taxable Taxable Assessed Value % of Total Assessed Value % of Total Taxpayer (TAV) Rank (1) County TAV (2) (TAV) Rank (1) County TAV (2) TDS Baja Broadband LLC (Prev Bend Cable) $ 102,514,000 1 0.40% $ 35,361,200 9 0.20% Pacificorp (PP&L) 92,515,000 2 0.36% 76,489,000 1 0.43% Cascade Natural Gas Corporation 76,950,000 3 0.30% 48,591,000 4 0.27% Gas Transmission Northwest Corporation 77,055,000 4 0.30% 70,263,300 2 0.40% Centurylink Property Tax (Prev Qwest) 63,608,000 5 0.25% Suterra LLC 51,795,460 6 0.20% Touchmark at Mount Bachelor Village LLC 50,047,110 7 0.19% 35,098,880 10 0.20% Deschutes Brewery Inc 46,974,680 8 0.18% CVSC LLC 44,415,310 9 0.17% 36,381,960 7 0.21% Wal-Mart Stores Inc 33,140,040 10 0.13% Qwest Corporation - - - 51,419,400 3 0.29% Eagle Crest Inc - - - 37,377,080 6 0.21% Sunriver Resort Limited Partnership - - - 35,812,335 8 0.20% TD Cascade Highlands LLC - - - 38,085,200 5 0.21% Total $ 639,014,600 2.48% $ 464,879,355 2.62% Source: Deschutes County Assessor's Department (1): Ranking of Principal Taxpayers is based on property taxes assessed, not the taxable assessed value. (2): Taxpayer's attributable share of total assessed value in the County. Totals may not foot due to rounding 187 Deschutes County, Oregon Property Taxes, Levies and Collections - Last Ten Fiscal Years (dollars expressed in thousands) Collected within the Fiscal Year of the Levy Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Totals may not foot due to rounding 188 Total Collections to Date Collections in Subsequent Amount Years Collected 2,414 1,850 1,429 1,181 1,014 982 981 702 589 58,519 57,771 58,605 59,376 62,233 65,729 68,876 69,715 74,031 77,350 Percentage of Levv 99.995% 99.996% 99.996% 99.994% 99.977% 99.988% 99.884% 99.693% 99.471% 98.700% Total Tax Levy Fiscal Year Ended for Fiscal Year Amount Percentage of June 30, (1) Collected Levy 2011 58,521 56,104 95.870% 2012 57,774 55,921 96.793% 2013 58,607 57,176 97.557% 2014 59,380 58,195 98.005% 2015 62,247 61,220 98.349% 2016 65,737 64,747 98.494% 2017 68,956 67,895 98.461% 2018 69,929 69,013 98.689% 2019 74,425 73,442 98.679% 2020 78,369 77,350 98.700% Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Totals may not foot due to rounding 188 Total Collections to Date Collections in Subsequent Amount Years Collected 2,414 1,850 1,429 1,181 1,014 982 981 702 589 58,519 57,771 58,605 59,376 62,233 65,729 68,876 69,715 74,031 77,350 Percentage of Levv 99.995% 99.996% 99.996% 99.994% 99.977% 99.988% 99.884% 99.693% 99.471% 98.700% Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) Governmental Activities Full Faith General Limited Fiscal Obligation Tax Year Bonds Bonds 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 2018 - 9,522 2019 - 9,099 2020 - 8,595 Full Faith Notes and Credit from Direct Obligations Borrowings Loans 43,352 - 140 42,299 - 81 39,835 - 23 45,773 - 149 42,957 - - 38,387 1,926 - 35,985 1,726 - 33,507 1,525 - 31,516 1,317 - 29,464 1,108 - (1) See page 196 for personal income and population data. n/a - Not available. Totals may not foot due to rounding 189 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 Notes Fiscal Obligation and Credit from Direct Year Bonds Obligations Borrowings Loans Total Percentage Primary of Personal Per Government Income (1) Capita (1) 2011 14,203 15,804 - 417 94,175 1.60% 596.40 2012 12,260 15,423 - 399 87,538 1.38% 550.99 2013 9,941 14,695 - 380 78,600 1.15% 490.82 2014 7,669 13,960 - 362 78,887 1.07% 485.38 2015 5,247 13,200 - 343 72,373 0.87% 434.93 2016 2,595 4,666 8,127 - 65,936 0.73% 386.18 2017 - 4,451 7,420 - 59,481 0.61% 336.75 2018 - 4,200 6,699 - 55,453 0.52% 303.14 2019 - 3,976 5,965 - 51,873 0.46% 274.49 2020 - 3,745 5,220 - 48,131 n/a 249.38 Totals may not foot due to rounding 190 Fiscal Year Deschutes County, Oregon Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years (dollars in thousands, except per capita) General Less: Amounts Obligation Bonds Available in Debt (1) Service Fund (2) Total Percentage of Estimated Actual Taxable Value of Property (3) Per Capita (4) 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% - 2018 - - - 0.00% - 2019 - - - 0.00% - 2020 - - - 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 183. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 196. Totals may not foot due to rounding 191 Deschutes County, Oregon Direct and Overlapping Governmental Activities Debt June 30, 2020 (dollars in thousands) Amount Estimated Applicable to Debt Percentage Primary Governmental Unit Outstanding Applicable Government Debt repaid with property taxes Alfalfa RFPD $ 306 94.2700% $ 288 Bend Metro Park & Rec District 25,060 100.0000% 25,060 Central Oregon Community College 48,930 84.7200% 41,451 City of Bend 85,503 100.0000% 85,503 City of La Pine 350 100.0000% 350 City of Redmond 6,344 100.0000% 6,344 Cloverdale RFPD 2,245 100.0000% 2,245 Crook County School District 51,138 0.8200% 419 Crooked River Ranch RFPD 2,355 8.8000% 207 Deschutes County RFPD 2 (Bend) 8,775 100.0000% 8,775 Deschutes County School District 1 (Bend -La Pine) 451,323 100.0000% 451,323 Deschutes County School District 2 (Redmond) 121,081 93.9200% 113,719 Deschutes County School District 6 (Sisters) 16,062 99.9800% 16,059 High Desert ESD 2,945 91.4600% 2,693 Howell Hilltop Acres Spec Rd District 215 100.0000% 215 La Pine Parks & Recreation District 350 100.0000% 350 Lazy River Special Road District 55 100.0000% 55 Redmond Area Park & Recreation District 493 100.0000% 493 Redmond Fire & Rescue 1,145 99.8600% 1,143 Sisters RFPD (Camp Sherman) 1,405 89.5300% 1,258 Terrebonne Water District 450 100.0000% 450 Subtotal, overlapping debt 758,400 Deschutes County direct debt 37,747 Total direct and overlapping debt $ 796,147 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 foot due to rounding 192 Debt Limit (2%)' Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 2011 2012 2013 $ 470,544 $ 431,674 $ 420,044 22,618 17,765 12,260 $ 447,926 $ 413,909 $ 407,784 2014 $ 443,378 7,844 $ 435,534 4.81% 4.12% 2.92% 1.77% 2015 $ 507,239 5,337 $ 501,902 1.05% Debt Limit (1%) 2 Deschutes County, Oregon $ 215,837 Legal Debt Margin Information - Last Ten Fiscal Years $ 221,689 $ 253,619 (dollars in thousands) 53,806 52,137 Legal Debt Margin Calculation for Fiscal Year 2020 56,121 Estimated Actual Value $ 44,896,251 Estimated Actual Value $ 44,896,251 Debt limit (2% of estimated actual value) 897,925 Debt limit (1% of estimated actual value) 2 448,963 Debt applicable to limit: Debt applicable to limit: General obligation bonds $ - Limited tax bonds $ 36,639 Less: Amount held for repayment of debt - Less: Amount held for repayment of debt - Total net debt applicable to limit $ - Total net debt applicable to limit $ 36,639 Legal debt margin $ 897,925 Legal debt margin $ 412,324 Fiscal Year Debt Limit (2%)' Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 2011 2012 2013 $ 470,544 $ 431,674 $ 420,044 22,618 17,765 12,260 $ 447,926 $ 413,909 $ 407,784 2014 $ 443,378 7,844 $ 435,534 4.81% 4.12% 2.92% 1.77% 2015 $ 507,239 5,337 $ 501,902 1.05% Debt Limit (1%) 2 $ 235,272 $ 215,837 $ 210,022 $ 221,689 $ 253,619 Total net debt applicable to limit 53,806 52,137 49,647 56,121 53,231 Legal debt margin $ 181,466 $ 163,700 $ 160,375 $ 165,568 $ 200,388 Total net debt applicable to the limit as a percentage of debt limit 22.87% 24.16% 23.64% 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 foot due to rounding 193 25.32% 20.99% Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Fiscal Year 2016 2017 2018 2019 2020 $ 577,687 $ 648,312 $ 735,733 $ 824,609 $ 897,925 2,595 - - - - $ 575,092 $ 648,312 $ 735,733 $ 824,609 $ 897,925 0.45% 0.00% 0.00% 0.00% 0.00% $ 288,843 $ 324,156 $ 367,867 $ 412,304 $ 448,963 50,357 47,610 42,350 39,049 36,639 $ 238,486 $ 276,546 $ 325,517 $ 373,255 $ 412,324 17.43% 14.69% 11.51% 9.47% 8.16% Totals may not foot due to rounding 194 Fiscal Year Deschutes County, Oregon Pledged -Revenue Coverage - Last Ten Fiscal Years (dollars in thousands) Full Faith and Credit Obligations (Series 2003, 2005, 2007, 2009) Special Assessment Debt Service Collections Principal Interest Coverage 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 - - - - 2018 - - - - 2019 - - - - 2020 - - - - Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Totals may not foot due to rounding 195 Deschutes County, Oregon Demographic and Economic Statistics - Last Ten Calendar Years 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, 2019, reflect county population estimates available as of December 2019. Median age figures for 2011-2020 are based on mid -year data tables. School enrollment is based on the census at the start of the 2019-20 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2020 is an average of January 2020 through October 2020. n/a - Not available. Totals may not foot due to rounding 196 Personal Per Income Capita Public (thousands Personal Median School Unemployment Year Population of dollars) Income Age Enrollment Rate 2011 157,905 5,869,857 36,765 40.46 24,437 12.3% 2012 158,875 6,354,749 39,383 40.29 24,168 11.3% 2013 160,140 6,805,466 41,171 40.43 24,518 9.5% 2014 162,525 7,343,291 43,320 40.63 24,790 7.7% 2015 166,400 8,275,134 47,491 40.82 25,302 5.9% 2016 170,740 8,985,844 49,737 40.96 25,598 4.9% 2017 176,635 9,812,799 52,547 41.13 26,446 4.2% 2018 182,930 10,672,155 55,612 41.33 26,868 4.1% 2019 188,980 11,159,204 56,447 41.50 27,008 3.9% 2020 193,000 n/a n/a 41.63 27,237 9.1% 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, 2019, reflect county population estimates available as of December 2019. Median age figures for 2011-2020 are based on mid -year data tables. School enrollment is based on the census at the start of the 2019-20 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2020 is an average of January 2020 through October 2020. n/a - Not available. Totals may not foot due to rounding 196 Deschutes County, Oregon Principal Employers - Current Year and Nine Years Ago Total Employees of Principal Employers 13,276 15.34% 9,986 16.29% Total County Nonfarm Employment 86,568 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not foot due to rounding 197 2020 2011 Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment St. Charles Medical Center 3,986 1 4.60% 2,592 1 4.23% Bend/La Pine School District 2,200 2 2.54% 1,745 2 2.85% Deschutes County 1,118 3 1.29% 1,016 3 1.66% Sunriver Resort 1,000 4 1.16% 875 4 1.43% Redmond School District 998 5 1.15% 737 6 1.20% Mt. Bachelor 975 6 1.13% 760 5 1.24% Central Oregon Community College 954 7 1.10% Safeway 704 8 0.81% City of Bend 674 9 0.78% Fred Meyer 667 10 0.77% 472 10 0.77% T -Mobile 640 7 1.04% Wal-Mart 591 8 0.96% Summit Medical Group 558 9 0.91% Total Employees of Principal Employers 13,276 15.34% 9,986 16.29% Total County Nonfarm Employment 86,568 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not foot due to rounding 197 Deschutes County, Oregon Full -Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years Source: Deschutes County Finance Department Above amounts are for Primary Government Totals may not foot due to rounding 198 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function/Program General government Executive 9.65 9.65 9.40 9.40 9.75 9.75 9.75 9.75 9.75 10.75 General services Judicial 49.45 50.45 50.45 51.45 52.05 54.05 54.55 57.30 59.50 65.60 Financial 39.98 39.23 39.73 38.48 38.53 39.53 39.73 39.73 40.23 40.23 Assessment 31.25 32.00 31.75 31.00 31.00 33.00 33.00 34.26 35.26 33.26 Community developmei 19.50 17.50 17.60 17.30 19.30 20.30 25.10 27.50 30.50 29.50 Building services 22.95 22.95 23.45 23.80 23.80 25.20 25.00 25.00 26.00 18.60 Information technology 16.90 17.00 16.70 16.70 16.30 16.00 15.70 15.70 15.70 15.70 Other 6.67 6.57 5.62 5.27 4.47 4.32 4.62 4.62 4.62 4.62 Public protection Law enforcement 118.75 118.15 114.46 113.75 113.75 113.75 113.75 115.25 117.45 117.50 Corrections 194.60 193.20 190.09 185.00 188.60 199.10 200.10 202.00 205.00 195.75 Protective inspection 13.00 11.10 11.00 12.70 14.70 15.70 19.90 25.50 24.50 24.50 Other Protection 40.50 41.50 43.50 46.50 52.50 57.50 59.00 60.00 60.00 54.00 Public works Streets & highways 60.50 60.50 56.50 52.75 52.75 53.50 54.00 54.00 56.00 54.00 Sanitation 22.00 22.00 22.00 22.50 22.50 23.50 23.50 24.50 25.50 24.00 Health & welfare Health Services 196.25 214.05 218.80 245.90 248.00 265.25 303.85 313.45 309.95 291.95 Recreation & culture Fair & expo center 13.00 11.00 10.00 10.00 11.00 11.00 12.00 12.00 12.00 10.92 Other Conservation 2.00 2.00 3.00 3.00 2.00 0.00 0.00 0.00 0.00 0.00 Economic development 1.10 1.10 1.10 1.10 0.00 0.00 0.00 0.00 0.00 0.00 Total 858.05 869.95 865.15 886.60 901.00 941.45 993.55 1020.56 1031.96 990.88 Source: Deschutes County Finance Department Above amounts are for Primary Government Totals may not foot due to rounding 198 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 Function/Proeram General government Building permits issued for new homes 104 127 218 327 355 Total building permits issued 613 643 811 988 1,142 Police Physical arrests 1,375 1,334 1,421 1,451 1,545 Traffic violations Citations issued 2,504 2,517 2,261 2,462 2,189 Warnings 4,727 4,317 1,906 1,570 1,883 Calls for service 32,661 33,409 33,331 34,187 35,664 Traffic stops 10,202 10,507 14,125 14,840 14,698 Solid waste Solid waste collected (tons) 192,657 177,113 185,692 185,788 193,779 Average annual per capita waste generation (pounds) 2,257 2,243 2,338 2,320 2,385 Recyclables collected (tons) 75,365 62,083 72,941 72,178 74,097 Road Street resurfacing (miles) 6.26 16.1 2.50 8.20 7.60 911 emergency services Emergency calls 54,395 59,697 58,673 59,886 60,460 Police officer initiated calls 241,785 249,032 246,458 249,217 250,369 Fire department initiated calls 19,597 21,048 21,541 22,398 23,655 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 foot due to rounding 199 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 2020 Function/Proeram General government Building permits issued for new homes 440 555 549 574 586 Total building permits issued 1,309 1,427 1,594 1,564 1,589 Police Physical arrests 1,568 1,797 1,791 1,810 1,463 Traffic violations Citations issued 2,104 2,159 2,412 2,382 1,905 Warnings 1,547 1,159 908 949 731 Calls for service 34,535 35,285 34,893 35,014 38,823 Traffic stops 10,533 12,608 12,539 13,532 12,225 Solid waste Solid waste collected (tons) 203,896 226,325 240,844 238,955 263,464 Average annual per capita waste generation (pounds) 2,451 2,591 2,727 2,959 2,788 Recyclables collected (tons) 72,940 80,234 79,757 60,958 83,472 Road Street resurfacing (miles) 14.57 8.07 5.28 8.19 10.63 911 emergency services Emergency calls 62,181 64,158 64,047 68,434 71,987 Police officer initiated calls 252,333 256,923 250,834 261,196 247,085 Fire department initiated calls 25,308 27,426 26,894 27,856 27,670 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 foot due to rounding 200 Deschutes County, Oregon Capital Assets Statistics by Function/Program - Last Ten Fiscal Years Fiscal Year Function/Proeram Public Safety Stations 4 4 4 4 4 4 4 4 4 4 Adult correctional facilities 2 2 2 2 2 2 2 2 2 2 Special services complex 1 1 1 1 1 1 1 1 1 1 Road Streets (miles) 927 927 927 927 927 927 927 931 917 929 Streetlights 4 4 4 4 4 4 32 32 32 35 Flashing lights 5 5 5 5 5 4 5 5 5 2 Signals 3 3 3 3 3 3 3 3 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriff s Office Totals may not foot due to rounding 201 Audit Comments and Disclosures Required by State Regulations June 30, 2020 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. 202 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, 2020, and have issued our report thereon dated December 23, 2020. 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 Instance of Non - Compliance Identified 162-010-0000 Preface Not Applicable 162-010-0010 Definitions Not Applicable 162-010-0020 General Requirements None Noted 162-010-0030 Contracts None Noted 162-010-0050 Financial Statements None Noted 162-010-0115 Required Supplementary Information (RSI) None Noted 162-010-0120 Supplementary Financial Information None Noted 162-010-0130 Schedule of Revenues, Expenditures / Expenses, and Changes in Fund None Noted Balances / Net Position, Budget and Actual (Each Fund) 162-010-0140 Schedule of Accountability for Independently Elected Officials Not Applicable 162-010-0150 Schedule of Property Tax Transactions or Acreage Assessments None Noted 162-010-0190 Other Financial or Statistical Information None Noted 162-010-0200 Independent Auditor's Review of Fiscal Affairs None Noted 162-010-0230 Accounting Records and Internal Control None Noted 203 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 EOE OAR Section Instance of Non - 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. 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. 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. 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 December 23, 2020 204 Single Audit Compliance June 30, 2020 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 and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated December 23, 2020. 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) as a basis for designing 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. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 206 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 EOE 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 financial statements. 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. 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. 719 Boise, Idaho December 23, 2020 ►NINA 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 of the County's major federal programs for the year ended June 30, 2020. 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 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 the major federal program. However, our audit does not provide a legal determination of the County's compliance. Opinion on the 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 its major Federal programs for the year ended June 30, 2020. 208 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 EOE 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 the major federal programs to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal programs 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. 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. Z -7z, Boise, Idaho December 23, 2020 KIM Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2020 Accrued or Accrued or Federal Program or (Deferred) (Deferred) Federal Grantor / Pass Through Grantor / CFDA Award or Pass- Award Revenues Revenues July Program Title Number Through Number Amount July 1, 2019 Receipts Expenditures 1, 2020 U.S. Department of Agriculture 54,128 41,033 855 Direct Programs 1,393 362 5,182 Forest Service 661 8,868 8,492 Cooperative Forestry Assistance -Deschutes County 29 29 Greater La Pine Basin Cohesive Strategy 10.664 16 -DG -11062765-704 $ 102,951 Schools and Roads -Public Education and U.S. Department of the Interior Outreach for Noxious Weed Control 10.665 16 -DG -11060120-034 14,250 Pass Through Programs State Department of Education State Department of Administrative Services School Breakfast Program 10.553 0904001 4,981 National Lunch School Program 10.555 0904001 8,492 State Administrative Expense Reallocation 10.560 0904001 29 Oregon Health Authority Distribution of Receipts to State and Local Special Supplemental Nutrition Program for Women, Infants and Children 10.557 154109/159809 656,198 Oregon Department of Forestry 4,693 55,817 State Historic Preservation Office Cooperative Forestry Assistance -Deschutes County Greater La Pine Basin Cohesive Strategy 10.664 18 -PA -11060100-041 99,193 Watershed Research and Training Center 11,500 775 8,719 Fire Adapted Communities Learning Network 10.698 329-2018-103 27,880 State Department of Administrative Services 106,822 Schools and Roads: Grants to States 13,095 54,128 41,033 855 2,248 1,393 362 5,182 4,981 661 8,868 8,492 - 29 29 656,198 656,198 - 19,372 3,069 21,514 Title I 10.665 None 946,322 - 946,322 946,322 Title III 10.665 None 77,932 (234,320) 77,932 136,037 Total Department of Agriculture 1,835,371 U.S. Department of the Interior Pass Through Programs State Department of Administrative Services Non -Sale Disposals of Mineral Material 15.214 None 41,339 - 41,339 41,339 Distribution of Receipts to State and Local Governments 15.227 None 4,693 (51,124) 4,693 55,817 State Historic Preservation Office Historic Preservation Fund Grants 15.904 P19AS00143 11,500 775 8,719 9,666 Total Department of the Interior 106,822 U.S. Department of Justice Direct Programs Office of Justice Programs Justice Assistance Grant (JAG) Program 16.738 2018 -DJ -BX -0933 12,413 - 12,413 12,413 Violence Against Women Office Justice Systems Response to Families 16.021 2017 -FJ -AX -0007 547,532 80,364 187,570 188,776 Improving Criminal Justice Responses Program 16.590 2018 -WE -AX -0030 449,563 33,481 138,968 144,739 Justice and Mental Health Collaboration Program 16.745 2018 -MO -BX -0029 700,000 29,639 88,060 102,906 Pass Through Programs State Department of Justice Crime Victim Assistance 16.575 2017-DAVAP-00015 400,465 48,870 97,740 48,870 Crime Victim Assistance 16.575 2018-DAVAP-00099 9,723 - 4,707 4,842 Crime Victim Assistance 16.575 2019-DAVAP-00018 620,288 - 263,527 Total Department of Justice 766,074 See notes to schedule of expenditures of federal awards 210 Totals may not foot due to rounding 161 285 19,372 18,445 (176,215) 1,722 81,571 39,252 44,486 135 263,527 Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2020 Accrued or Accrued or Federal Program or (Deferred) (Deferred) Federal Grantor / Pass Through Grantor / CFDA Award or Pass- Award Revenues Revenues July Program Title Number Through Number Amount July 1, 2019 Receipts Expenditures 1, 2020 U.S. Department of Transportation 9,109 9,109 363,514 Direct Proerams 87,371 10,921 (10,921) - Western Federal Lands Hi way Division - 43,686 43,686 80,000 Cascade Lakes Hwy Chip Seal Phase 2 20.224 6905671940017 George Millican Chip Seal 20.224 6905671850005 Pass Throueh Proerams - - Oregon Department of Transportation 83,262 12,068 Enhanced Mobility of Seniors and 12,068 12,068 Individuals with Disabilities 20.513 32186 Enhanced Mobility of Seniors and 112,099 4,129 Individuals with Disabilities 20.513 33583 Regional Safety 20.205 RS -19-77 Total Department of Transportation 96,937 96,937 U.S. General Services Administration 250,000 75,597 Pass Throueh Proerams - State Department of Administrative Services - 190,000 Disposal of Federal Surplus Real Property 39.002 F39002 Total General Services Administration 39,224 40,000 U.S. Environmental Protection Agency 130,375 Pass Throueh Proerams - (130,375) Oregon Health Authority (136,155) - State Public Water System Supervision 66.432 280557 Capitalization Grants for Drinking 36,577 36,577 Water State Revolving Fund -RECOVERY 66.468 280655 Total Environmental Protection Agency - (390,000) U.S. Department of Health and Human Services 7,019 7,019 Direct Proerams 115 Substance Abuse and Mental Health Services Administration 115 Alliance for Substance Abuse Prevention 93.276 5H79SP021072-02 Alliance for Substance Abuse Prevention 93.829 1H79SM081893-01 Alliance for Substance Abuse Prevention 93.243 IH79SM080555-01 Alliance for Substance Abuse Prevention 93.829 1H79SM083167-01 Department of Health and Human Services CARES Act Provider Relief Fund 93.498 DS -03768510577 Pass Through Proerams Oregon Health Authority Public Health Emergency Preparedness 93.069 154109/159809 Injury Prevention and Control Research and State and Community based 93.136 154109/159809 Projects for Assistance in Transition from Homelessness (PATH) 93.150 159163 Youth Suicide Prevention/Intervention 93.243 155020 PIPBHC Grant 93.243 162239 CDC/Immunization Cooperative Agreements 93.268 159809 CDC Public Health Emergency Response 93.354 159809 Financing of Community Mental Health, Substance Use Disorders and Problem Gambling Services 93.788 153121 Prescription Drug Overdose Prevention (PDOP) 93.788 159809 "Prime Plus Peer Project" SE -66 93.788 159163 Health Security, Preparedness and Response 93.889 160241 HHP Ebola Preparedness and Response 93.817 159809 HIV Care Formula Grants 93.917 159809 See notes to schedule of expenditures of federal awards 211 Totals may not foot due to rounding 1,325,874 9,109 9,109 363,514 - 363,514 363,514 87,371 10,921 (10,921) - 87,371 - 43,686 43,686 80,000 24,481 34,325 9,844 - 806 806 806 - 806 27,455 27,455 27,455 30,036 30,036 30,036 57,491 625,000 31,491 148,548 138,214 21,158 3,406,798 521,094 1,975,479 1,906,446 452,061 1,650,000 70,266 297,509 291,562 64,319 4,000,000 - - 83,262 83,262 12,068 - 12,068 12,068 - 112,329 5,202 113,172 112,099 4,129 60,011 25,990 60,011 34,021 - 96,937 (4,296) 96,937 96,937 (4,296) 250,000 75,597 75,597 - 950,000 - 190,000 182,626 (7,374) 40,000 39,224 40,000 776 130,375 130,375 - (130,375) 142,857 (136,155) - 136,155 41,665 - 36,577 36,577 480,000 390,000 - (390,000) 7,168 7,019 7,019 - 115 - 115 115 3,909 3,909 - (3,909) (continued) Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2020 Federal Grantor / Pass Through Grantor / Program Title Federal CFDA Number Award or Pass- Through Number Program or Award Amount Accrued or (Deferred) Revenues July 1, 2019 Receipts Expenditures Accrued or (Deferred) Revenues July 1, 2020 HIV Prevention Activities -Health Department Based 93.940 159809/154109 31,451 19,729 39,075 19,345 Block Grants for Community Mental Health Services 93.958 159163 405,771 - 405,771 405,771 Block Grants for Prevention and Treatment of Substance Abuse 93.959 135001 375,514 45,193 45,193 - Block Grants for Prevention and Treatment of Substance Abuse 93.959 155020/159163 166,689 - 166,689 135,741 (30,948) Alcohol & Drug Prevention Education Program 93.959 159809 87,696 86,672 86,986 314 Maternal and Child Health Services Block Grant to States 93.994 154109/159809 112,489 112,489 112,489 - Total Department of Health and Human Services 3,830,415 Department of Homeland Security Pass Through Proerams Oregon Military Department Emergency Management Performance Grant 97.042 18-509 111,574 4,762 4,762 - - Emergency Management Performance Grant 97.042 19-509 115,218 - 30,097 118,918 88,821 Total Department of Homeland Security 118,918 U.S. Elections Assistance Commission Pass Through Programs Oregon Secretary of State Elections Security Upgrades 90.404 None 5,456 - 5,456 5,456 - Total U.S. Elections Assistance Commission 5,456 Total Federal Assistance 623,953 6,903,551 7,136,585 856,987 See notes to schedule of expenditures of federal awards 212 (concluded) Totals may not foot due to rounding Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2020 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 1.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, 2020. 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. 213 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2020 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, 2020, beginning on page 215, 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, 2020, on page 217, is provided to disclose this information. 214 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program June 30, 2020 Department / Program Title CFDA Number Expenditures U.S. Department of Agriculture School Breakfast Program 10.553 $ 4,981 National School Lunch Program 10.555 8,492 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 656,198 State Administrative Expense Reallocation 10.560 29 Cooperative Forestry Assistance 10.664 60,405 Schools and Roads - Grants to States 10.665 1,083,752 Fire Adapted Communities Learning Network 10.698 21,514 Total Department of Agriculture 1,835,371 U.S. Department of the Interior Non -Sale Disposals of Mineral Material 15.214 41,339 Distribution of Receipts to State and Local Governments 15.227 55,817 Historic Preservation Fund Grants 15.904 9,666 Total Department of the Interior 106,822 U.S. Department of Justice Justice Systems Response to Families 16.021 188,776 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 144,739 Crime Victim Assistance 16.575 317,239 Justice Assistance Grant (JAG) Program 16.738 12,413 Justice and Mental Health Collaboration Program 16.745 102,906 Total Department of Justice 766,074 U.S. Department of Transportation Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 32,765 Regional Safety 20.205 9,844 Chip Seal 20.224 372,623 Total Department of Transportation 415,232 U.S. General Services Administration Disposal of Federal Surplus Real Property 39.002 806 Acquisition of Federal Surplus Real Property 39.003 - Total General Services Administration 806 U.S. Environmental Protection Agency State Public Water System Supervision 66.432 27,455 Capitalization Grants for Drinking Water State Revolving Funds 66.468 30,036 Total Environmental Protection Agency 57,491 Totals may not foot due to rounding 215 (continued) Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program June 30, 2020 Department / Program Title CFDA Number Expenditures U.S. Department of Health and Human Services Public Health Emergency Preparedness 93.069 112,099 Tuberculosis Control Programs 93.136 34,021 Projects for Assistance in Transition from Homelessness (PATH) 93.150 96,937 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 474,188 CDC/Immunization Cooperative Agreements 93.268 40,000 Alliance for Substance Abuse Prevention 93.276 138,214 CDC Public Health Emergency Response 93.354 - Financing of Community Mental Health, Substance Use Disorders and Problem Gambling Services 93.788 172,732 Ebola Preparedness and Response 93.817 115 HIV Care Formula Grants 93.917 - Alliance for Substance Abuse Prevention 93.829 1,989,708 National Bioterrorism Hospital Preparedness Program 93.889 - HIV Prevention Activities -Health Department Based 93.940 19,345 CARES Act Provider Relief Fund 93.498 12,068 Block Grants for Community Mental Health Services 93.958 405,771 Block Grants for Prevention and Treatment of Substance Abuse 93.959 222,728 Maternal and Child Health Services Block Grant to the States 93.994 112,489 Total Health and Human Services 3,830,415 U.S. Department of Homeland Security Emergency Management Performance Grants 97.042 118,918 Total U.S. Department of Homeland Security 118,918 U.S. Elections Assistance Commission Elections Security Upgrades 90.404 5,456 Total U.S. Elections Assistance Commission 5,456 Total Federal Assistance $ 7,136,585 Totals may not foot due to rounding 216 (concluded) Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Cluster June 30, 2020 Federal Awards by Cluster Program CFDA Number Expenditures Child Nutrition Cluster Program School Breakfast Program 10.553 $ 4,981 National School Lunch Program 10.555 8,492 Total Child Nutrition Cluster Program 13,473 Forest Service Schools and Roads Cluster Schools and Roads - Grants to States 10.665 1,083,752 Total Forest Service Schools and Roads Cluster 1,083,752 Transit Services Programs Cluster Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 32,765 Total Transit Services Programs Cluster 32,765 Highway Planning and Construction Cluster Regional Safety 20.205 9,844 Chip Seal 20.224 372,623 Total Highway Planning and Construction Cluster 382,467 Drinking Water State Revolving Fund Cluster Capitalization Grants for Drinking Water State Revolving Funds 66.468 30,036 Total Drinking Water State Revolving Fund Cluster 30,036 Totals may not foot due to rounding 217 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2020 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 Uniform Guidance 2 CFR 200.516? No Identification of major programs tested: Name of Federal Program CFDA Number U. S. Department of Agriculture Direct Programs Schools and Roads -Public Education and Outreach for Noxious Weed Control 10.665 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 U. S. Department of Health and Human Services Alliance for Substance Abuse Prevention 98.829 Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? No 218 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2020 Section II - Financial Statement Findings None noted Section III Federal Award Findings and Questioned Costs None Noted 219 0�T E s C-oG