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HomeMy WebLinkAboutDeschutes County Popular Annual Financial Report FY2021P O P U L A R A N N U A LFINANCIAL R E P O R T F O R F I S C A L Y E A R E N D E D J U N E 2 0 2 1 D E S C H U T E S C O U N T Y Residents of Deschutes County, The Deschutes County Finance Department has recently released its 200+ page annual flnancial report for Fiscal Year ended June 30, 2021; however, in an attempt to provide residents with a relatively quick-read of the annual flnancial report, the Deschutes County Finance Department has also prepared this Popular Annual Financial Report (PAFR). As encouraged by the Government Finance Officer Association (GFOA), this PAFR will pro- vide insight into long-term trends of the County’s largest flnancial indicators found in the Annual Comprehensive Financial Report (ACFR). All flnancial information included in this report is from the ACFR. The ACFR was audited by Eide Bailly, an independent auditing flrm and received an unmodifled (clean) opinion. The ACFR is available online at: www.deschutes.org Page Introduction (below)……………………………………………………………………………. 1 Where Do Your Taxes Go?…………………………………………………………………… 2 Net Position…………………………………………………………………………………………. 3 Assets & Liabilities……………………………………………………………………………….. 4 Revenues & Expenses—Fiscal Year 2021……………………………………………... 5 Revenues & Expenses—10 Year History……………………………………………….. 6 Debt……………………………………………………………………………………………………… 7 Property Taxes……………………………………………………………………………………... 8 Demographics & Staffing Ratio…………………………………………………………….. 9 Additional Information……………………………………………………………………….... 10 Fiscal Year 2020 PAFR Award……………………………………………………………….. 11 Introduction Table of Contents 2 DESCHUTES COUNTY, OREGON Where do your taxes go? Although Deschutes County is the tax collector for Deschutes County, overall only 17 cents of each dollar paid in taxes is kept by the County. The remaining 83 cents is passed through to other government agencies to provide for schools, police & flre departments, parks, libraries, and more. *The allocation below is for a City of Bend taxpayer. All other city/rural allocations are similar. 48¢ 21¢ 17¢ 10¢ 4¢ Deschutes County uses its taxes to fund Public Safety, Health & Welfare, and General Government. NOTE: Tax allocations based on the City of Bend Taxing District (Tax Code 1001). Public Safety includes the Sheriff’s Office, Deschutes 9-1-1, and Community Justice. Health & Welfare includes Deschutes County Health Services and Veterans ’ Services. General Government includes a variety of departments, such as the Assessor’s Office, Clerk’s Office, District Attorney’s Office (including Victims’ Assistance), and Justice Court. 12¢ 1¢ 4¢ 3 DESCHUTES COUNTY, OREGON Net Position Deschutes County’s net position as of June 30, 2021 was approximately $225 million. Net Position is broken into two types: Capital Assets and Other Assets. Net position—Capital assets represents the current value of County infrastructure, offset for amounts owed. County infrastructure includes the County’s investment in:  Roads  Vehicles & equipment  Buildings for providing services The net position of capital assets could be viewed in a similar manner as home-equity (i.e. in 2021, capital assets are worth $164 million more than what we still owe). Net position—Other assets represents the current value of all other assets, offset for amounts we owe.  Cash reserves  Inventory  Loans (businesses or people owing the County money) The current value in net position of all other assets could be viewed in a similar manner to that of a checking account. (i.e. other assets are worth $61 million more than what is owed). The graphics below show the last 10 years of net position as well as the net position per capita (in millions) 4 DESCHUTES COUNTY, OREGON Assets Liabilities Total assets held by Deschutes County as of June 30, 2021 was $524 million. Assets represent items of value owned by Deschutes County. Approximately 38% of asset value is related to capital assets (roads, vehicles & equipment, and buildings), 51% of asset value is held as cash and investments, and the remaining 11% is made up of receivables and inventory. 44% 43% 13% 44% 22% 15% 12% Total liabilities incurred by Deschutes Coun- ty as of June 30, 2021 was $299 million. Liabilities represent amounts owed by Deschutes County. Approximately 60% of our liabilities is in relation to future pension and other post-employment beneflts (OPEB) obligations, 14% of our liabilities is related to long-term debt, 20% is related to vendor amounts payable, and the flnal 6% is for insurance claims and closing the Knott land- flll. 51% 38% 11% 48% 14% 12% 20% 5 DESCHUTES COUNTY, OREGON Revenues — Fiscal Year 2021 Deschutes County revenues for Fiscal Year 2021, were $244 million (a 13% increase over the prior year).  Taxes: include both property tax revenue and room -tax revenue. Total tax revenue for the year was $94 million, an 8% increase over the prior year. This was driven by a 5.4% increase in assessed property value, addition of 1,030 new property tax accounts, as well as a 51% in- crease in Room Tax (TRT) revenue.  Charges for Services: includes payments made by resi- dents for a speciflc service provided to the resident. Total charges for services for the year was $71 million, a 13% increase over the prior year. A portion of this increase was driven by a 26% increase in single family dwelling permits issued.  Grants and Contributions: include payments made for services by the Federal, State, and other local govern- ments. Total grants and contributions was $78 million, a 30% increase from the prior year, which was primarily driven by CARES Act funds for COVID19. Expenses Deschutes County expenses for Fiscal Year 2021, were $238 million (a 17% increase from the prior year). Change from the prior year: Public Safety: +22.1% Health & Welfare: + 37.1% General Government: - 2.3% County Roads: + 43.7% Solid Waste / Fair & Expo: -24.6% Interest and flscal charges: - 17.2% Public Safety and Health & Welfare increases over prior year are primarily attributable to COVID19 related costs. County Roads contributed $5M to ODOT for the US 97 Bend North Corridor project in FY21. Timing of ex- penditures fiuctuates from year-to-year due to the scheduling and delivery of multi-year projects. Expenses are lower during the planning phase and higher during the construction phase. Solid Waste expenses are down from prior year because the construction of Cell 8 was completed in FY20. Fair & Expo expenditures were reduced from prior year due to Oregon ’s COVID19 restrictions related to events and gathering, including cancellation of the July 2020 County Fair. $238 Million Expense $244 Million Revenue 6 DESCHUTES COUNTY, OREGON Revenues — 10 Year History Expenses — 10 Year History Volatility from changes in accounting rules. 7 DESCHUTES COUNTY, OREGON Debt The County’s creditworthiness is rated at Aa1 as measured by Moody’s Investors Services. Moody’s© credited Deschutes County’s “large and growing tax base”, “healthy reserve levels and liquidity”, and its “ liabilities” for its high credit rating. Moody’s rating of Aa1 represents that Deschutes County is a “High Grade” investment to municipal investors. The chart below presents the amount of debt outstanding each year, as well as the amount attributable to each resident in Deschutes County. The debt per capita metric illustrates the County ’s debt burden in relation to an individual resident. Over the last 10 years, Deschutes County has reduced its debt from $88 million to $41.9 million (a 52% reduction). On June 30, 2021, Deschutes County owed:  $6.4 million for the buildings and equipment at the Knott landflll and the Fair & Expo center.  $27.7 million on general government buildings and equipment used in County operations  $7.8 million pension bonds that were issued during 2002 and 2004 to offset the long-term costs of the pension liability. 10 Year History of Debt Debt outstanding at June, 30, 2021 was $41.9 million, or $213 per capita 8 DESCHUTES COUNTY, OREGON Property Taxes 10 Year History of the Tax Rates* In Oregon, property taxes are billed based on the assessed value of a property multiplied by the approved (levied) tax rate. Deschutes County is funded, in part, by 5 separate tax levies.  General Deschutes County Levy: District Attorney, Assessor, Community Justice, and more, for all residents.  Countywide Law Enforcement Levy: County Jail, Civil Unit, and Search and Rescue for all residents.  Rural Law Enforcement Levy: Detectives, Patrol, and Records for residents outside of city limits.  9-1-1 Levy: Traditional 9-1-1 services for all residents.  Extension and 4-H Levy: Extension and 4-H services for all residents. The cumulative total of tax rates levied and the assessed value for the past 10 years are shown below. Assessed Value x Tax Rate = Tax Bill *Rate per $1,000 of assessed value (excludes expired local option levies) 10 Year History of Assessed Value * % Change in Assessed Value from prior year 9 DESCHUTES COUNTY, OREGON Demographics & Staffing Ratio Population for Deschutes County has increased by 24% over the 10 year period. This translates into an average annual growth rate of 2.4%. The average annual growth rate for the State or Oregon overall was .99% during the same period. Assuming this growth rate continues, Deschutes County’s population should eclipse the 200,000 mark by next year. Median Age for Deschutes County has been stable at around 40 years old over the last 10 years. The median age for the United States over that same period hovered around 38 years old. At the end of Fiscal Year 2021, 50% of County residents were older than 41.82 years and 50% were younger. Source: Portland State University Unemployment Rate for Deschutes County for Fiscal Year 2021 ended at 6.0%. Deschutes County started the 10 year period shown with an unemployment rate of 11.3%. Source: Oregon Employment Department FTE per Population (or # residents per County employee) for Deschutes County has remained stable over the last 10 years. At the end of Fiscal Year 2021, there were 191 residents per County employee. This data point provides insight into the size of government versus the population governed. Source: Deschutes County (in thousands) (age in years) (# residents per County employee) 10 DESCHUTES COUNTY, OREGON Disclosures:  Intended audience: Residents seeking high-level flnancial information concerning the County.  Measurement focus: The flnancial data presented in the Popular Annual Financial Report (PAFR) uses the same measurement focus and basis of accounting as the County ’s Annual Comprehensive Financial Report (ACFR).  Financial information: Financial information from the ACFR ‘s government-wide flnancials have been reproduced (full-accrual). Fund-level information has not been provided, but is available in the ACFR. All flnancial entities (including component units), as presented in the ACFR, have been consoli- dated in the PAFR .  Departures from accounting terminology: In preparing the PAFR, minor departures were made from standard generally accepted accounting principal (GAAP) prescribed terminology. Such departures were made in an attempt to avoid confusion concerning the materials presented. Highlighted departures from GAAP are:  “Assets” as used in this report, at times, include both Assets and Deferred Outfiows.  “Liabilities” as used in this report, at times, include both Liabilities and Deferred Infiows.  “Net Position—Other Assets” includes both Restricted & Unrestricted Net Position.  “Net Position-Capital Assets” is Net Investment in Capital Assets.  Volatility due to changes in accounting measurement: Over the course of the 10 years presented, the Government Accounting Standards Board (GASB) has made modiflcation to how certain items are presented (e.g. pensions and other post-employment beneflts). Such changes in recognition practices introduced volatility to the 10 year trend information, as presented. —————————————————————————————————————————————————-- Contact Information: Deschutes County Finance Department 1300 NW Wall Street, Suite 203 Bend, Oregon 97703 flnance@deschutes.org Special thanks to Finance Department staff and their commitment to the underlying debits/credits. Additional Information 11 DESCHUTES COUNTY, OREGON Fiscal Year 2020 PAFR Award