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Home My WebLink AboutDeschutes County Popular Annual Financial Report FY2022DESCHUTES COUNTY POPULAR ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2022 Introduction Residents of Deschutes County, The purpose of the Deschutes County Popular Annual Financial Report (PAFR) is to provide residents with a relatively quick-read of the highlights from the County’s Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2022, and to provide insight into long-term trends of the County’s largest ﬁnancial indicators. The ACFR is a detailed and complete ﬁnancial presentation prepared in conformance with the United States Generally Accepted Accounting Principles (GAAP) and is available in its entirety online at www.deschutes.org/ﬁnance. The ACFR was audited by Moss Adams LLP, an independent auditing ﬁrm, and received a clean opinion. Respectfully Submitted, Robert Tintle Jana Cain Chief Financial Officer Accounting Manager Table of Contents Page Introduction …….…………………………………………………………………………………. 1 Net Position…………………...…………………………………………………………………… 2 Assets & Liabilities………...……………………………………………………………………. 3 Revenues & Expenses…………………………..…………………………………………….. 4 Where Do Your Taxes Go?........................……………………………………………... 5 Revenues & Expenses—10 Year History…………………………….……………….. 6 Debt…………………………………………………………………………………………..………… 7 Property Taxes…………………………………………………………………………….……... 8 Demographics & Staffing Ratio……………………………………………………..…….. 9 Additional Information…………………………………………………………………..….... 10 Fiscal Year 2021 PAFR Award………………………………………………………..….... 11 1 2 DESCHUTES COUNTY, OREGON Net Position Deschutes County’s net position as of June 30, 2022 was approximately $241 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 2022, capital assets are worth $171 million more than what is owed). Net position—Other assets represents the current value of all other assets, offset for amounts owed. 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 $70 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: Net Position (in millions) Net Position Per Capita (in dollars) 3 DESCHUTES COUNTY, OREGON Assets Liabilities Total assets held by Deschutes County as of June 30, 2022 was $553 million. Assets represent items of value owned by Deschutes County. Approximately 37% of asset value is related to capital assets (roads, vehicles and equipment, and buildings), 48% of asset value is held as cash and investments, and the remaining 15% is made up of receivables and inventory. 44% 43% 13% 44% 22% 15% 12% Total liabilities incurred by Deschutes County as of June 30, 2022 was $313 million. Liabilities represent amounts owed by Deschutes County. Approximately 60% of the liabilities are related to future pension and other post-employment beneﬁts (OPEB) obligations, 12% of liabilities are related to long-term debt, 24% is related to vendor and other payables, and the 4% are future costs for closing the Knott landﬁll. 48% 37% 15% 46% 24% 14% 12% 4% Assets by Percent Liabilities by Percent 4 DESCHUTES COUNTY, OREGON Revenues Deschutes County revenues for Fiscal Year 2022, were $247 million (a 1.3% increase over the prior year). Taxes include both property tax revenue and room-tax revenue. Total tax revenue for the year was $99 million, a 5.7% increase over the prior year. This was driven by a 5.6% increase in assessed property value, addition of 1,169 new property tax accounts, as well as a 14.7% increase in Transient Room Tax (TRT) revenue. Charges for Services include payments made by residents for a speciﬁc service provided to the resident. Total charges for services for the year was $72 million, a 0.1% increase over the prior year. The most notable increase was driven by a 102% increase in revenue from the Fair and Expo Center. Grants and Contributions include payments made for services by the Federal, State, and other local governments. Total grants and contributions was $83 million, a 6.8% increase from the prior year. The increase was primarily driven by American Rescue Plan Act funds. Expenses Deschutes County expenses for Fiscal Year 2022, were $232 million (a 3% decrease from the prior year). Change from the prior year: Public Safety: +1.5% Health & Welfare: -11.2% General Government: -1.8% County Roads: - 13.5% Solid Waste / Fair & Expo: +34.5% Interest and ﬁscal charges: -44.0% Health & Welfare decreases over prior year are primarily attributable to reduced COVID-19 related costs. County Roads costs decreased due to $5M paid to ODOT for the US 97 Bend North Corridor project in FY21. Timing of expenditures ﬂuctuates from year-to-year due to the scheduling and delivery of multi-year projects. Solid Waste expenses increased primarily due to the costs incurred to identify a new landﬁll site as the Knott Landﬁll is projected to reach capacity in 2029. Fair & Expo expenses increased from prior year due to the lifting of Oregon’s COVID-19 restrictions related to events and gathering, including the return of the County Fair in July 2021. Public Safety and General Government expenses were similar to FY21 levels. $232 Million Expense $247 Million Revenue 5 DESCHUTES COUNTY, OREGON Where do your taxes go? Although Deschutes County is the tax collector for all taxing districts within the county, overall only 17 cents of each dollar paid in taxes is retained by the County. The remaining 83 cents is passed through to other government agencies to provide for schools, police and ﬁre departments, parks, libraries, and more. NOTE: Tax allocations based on the City of Bend Taxing District (Tax Code 1001). All other city/rural alloca- tions are similar. 46¢ 23¢ 17¢ 9¢ 5¢ Deschutes County uses its taxes to fund Public Safety, Health & Welfare, and General Government. Public Safety includes the Sheriff’s Office, Deschutes 9-1-1, Community Justice, District Attorney’s Office (including Victims’ Assistance), and Justice Court. 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, Elections and Property Management. 9¢ 1¢ 4¢ 1¢ 2¢ Public Safety 12¢ 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 $78.6 million to $38.4 million (a 51% reduction). On June 30, 2022, Deschutes County owed: $7.1 million for the buildings and equipment at the Knott landﬁll, the Fair & Expo center, and RV Park. $24.4 million on general government buildings and equipment used in County operations. $6.9 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, 2022 was $38.4 million, or $189 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 ﬁve 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 27% over the 10 year period. This translates into an average annual growth rate of 2.7%. The average annual growth rate for the State or Oregon overall was 1.0% during the same period. Deschutes County’s population passed the 200,000 mark this year. Source: Portland State University Median Age for Deschutes County has increased by 2.21 years since 2013. The median age for the United States over that same period hovered around 38 years old. At the end of Fiscal Year 2022, 50% of County residents were older than 42.64 years and 50% were younger. Source: Portland State University Unemployment Rate for Deschutes County for Fiscal Year 2022 ended at 4.2%. Deschutes County started the 10 year period shown with an unemployment rate of 9.5%. Source: Oregon Employment Department Population Per Full Time Employee for Deschutes County has remained stable over the last 10 years. At the end of Fiscal Year 2022, there were 191 residents per County employee. This data point provides insight into the size of government versus the population governed. Source: Deschutes County Population Median Age (in years) Unemployment Rate Number of Residents per County employee 10 DESCHUTES COUNTY, OREGON Disclosures: Intended audience: Residents seeking high-level ﬁnancial information concerning the County. Measurement focus: The ﬁnancial 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 ﬁnancials have been reproduced (full-accrual). Fund-level information has not been provided, but is available in the ACFR. All ﬁnancial 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 Outﬂows. “Liabilities” as used in this report, at times, include both Liabilities and Deferred Inﬂows. “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 modiﬁcation to how certain items are presented (e.g. pensions and other post-employment beneﬁts). 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 200 Bend, Oregon 97703 ﬁnance@deschutes.org Special thanks to Finance Department staff and their commitment to the underlying debits/credits. Additional Information 11 DESCHUTES COUNTY, OREGON Fiscal Year 2021 PAFR Award