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HomeMy WebLinkAboutFY 2023 Annual Comprehensive Financial ReportAnnual Comprehensive Financial Report FOR THE FISCAL YEAR ENDED JUNE 30, 2023 DESCHUTES COUNTY, OREGON Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -1- DESCHUTES COUNTY, OREGON 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 https://www.deschutes.org ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year Ended June 30, 2023 Prepared by: Deschutes County Finance Department Robert Tintle, MPA Chief Financial Officer Jana Cain, CPA Controller -2-      Deschutes County, Oregon Table of Contents For the Fiscal Year Ended June 30, 2023 INTRODUCTORY SECTION Letter of Transmittal...................................................................................................................................................... 11 Organizational Chart ................................................................................................................................................. 19 Listing of Principal Officials ...................................................................................................................................... 22 GFOA Certification of Achievement ............................................................................................................................ 24 FINANCIAL SECTION Report of Independent Auditors ..................................................................................................................................... 27 Management’s Discussion and Analysis ..................................................................................................................... 31 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position .................................................................................................................................... 47 Statement of Activities .......................................................................................................................................... 50 Fund Financial Statements: Governmental Funds Balance Sheet ........................................................................................................................................................ 51 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................... 54 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................... 55 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................................................................... 58 Fund Financial Statements: Proprietary Funds Statement of Net Position .................................................................................................................................... 59 Statement of Revenues, Expenses, and Changes in Net Position .................................................................. 61 Statement of Cash Flows ...................................................................................................................................... 62 Fund Financial Statements: Fiduciary Funds Statement of Fiduciary Net Position ................................................................................................................... 63 Statement of Changes in Fiduciary Net Position .............................................................................................. 64 Notes to Financial Statements ................................................................................................................................. 65 Required Supplementary Information Schedule of the Proportionate Share of the Net Pension Liability (Asset)......................................................... 121 Schedule of Net Pension Liability (Asset) Employer Contributions .................................................................... 123 Schedule of Changes in the Total OPEB Liability .................................................................................................. 125 Schedule of the Proportionate Share of the Net OPEB Liability (Asset) ............................................................. 126 Schedule of Net OPEB Liability (Asset) Employer Contributions ........................................................................ 127 -3-      Deschutes County, Oregon Table of Contents For the Fiscal Year Ended June 30, 2023 Required Supplementary Information (Continued) Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund ....................................................................................................................................................... 128 Deschutes County Sheriff’s Office ..................................................................................................................... 129 Countywide Law Enforcement District ............................................................................................................. 130 Rural Law Enforcement District ........................................................................................................................ 131 Road Department ............................................................................................................................................... 132 Health Services .................................................................................................................................................... 133 American Rescue Plan Act ................................................................................................................................. 134 Notes to Required Supplementary Information .................................................................................................. 135 Other Supplementary Information Combining and Individual Fund Statements and Schedules – Major Funds Major Governmental Funds and Sub-Funds – General Fund Combining Balance Sheet General Fund and Sub-Funds of General Fund ...................................................................................... 139 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund and Sub-Funds of General Fund ...................................................................................... 141 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Economic Development (Sub-Fund of General Fund) ........................................................................... 143 Court Technology Reserve (Sub-Fund of General Fund) ....................................................................... 144 Assessor, Clerk and Tax Reserve (Sub-Fund of General Fund) ............................................................. 145 Project Development Fund (Sub-Fund of General Fund) ...................................................................... 146 General County Projects (Sub-Fund of General Fund) .......................................................................... 147 General County Reserve (Sub-Fund of General Fund). ......................................................................... 148 Community Justice – Juvenile (Sub-Fund of General Fund) .................................................................. 149 Code Abatement (Sub-Fund of General Fund) ....................................................................................... 150 Vehicle Maintenance and Replacement (Sub-Fund of General Fund) ................................................. 151 Major Governmental Funds - Capital Project Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Road Capital Improvement Plan ............................................................................................................. 153 Major Proprietary Funds - Enterprise Funds Schedule of Revenues, Expenditures, and Changes in Net Position – Budget and Actual Solid Waste ................................................................................................................................................ 155 Fair and Expo Center ................................................................................................................................ 156 RV Park ....................................................................................................................................................... 157 -4-      Deschutes County, Oregon Table of Contents For the Fiscal Year Ended June 30, 2023 Other Supplementary Information (Continued) Combining and Individual Fund Statements and Schedules – Nonmajor Funds Nonmajor Governmental Funds Combining Balance Sheet ................................................................................................................................ 159 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................... 160 Nonmajor Special Revenue Funds Combining Balance Sheet ................................................................................................................................ 161 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................... 167 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Justice Court ................................................................................................................................................ 175 Park Acquisition and Development.......................................................................................................... 176 Park Development Fees ............................................................................................................................. 177 County School Fund. .................................................................................................................................. 178 Special Transportation Fund ..................................................................................................................... 179 Taylor Grazing ............................................................................................................................................. 180 Transient Room Tax ................................................................................................................................... 181 Video Lottery ............................................................................................................................................... 182 Transient Room Tax – 1% .......................................................................................................................... 183 Foreclosed Land Sales ............................................................................................................................... 184 Victims’ Assistance. ..................................................................................................................................... 185 Law Library .................................................................................................................................................. 186 County Clerk Records ................................................................................................................................. 187 Court Facilities ............................................................................................................................................. 188 Deschutes County Communication System Reserve ............................................................................. 189 Community Development ........................................................................................................................ 190 CDD Groundwater Partnership ................................................................................................................ 191 Newberry Neighborhood .......................................................................................................................... 192 GIS Dedicated .............................................................................................................................................. 193 Natural Resource Protection ..................................................................................................................... 194 Federal Forest Title III ................................................................................................................................. 195 Surveyor ....................................................................................................................................................... 196 Public Land Corner Preservation .............................................................................................................. 197 Countywide Transportation SDC Improvement Fee .............................................................................. 198 Dog Control ................................................................................................................................................. 199 Adult Parole and Probation ....................................................................................................................... 200 Statewide Transportation Improvement Fund ....................................................................................... 201 PERS Reserve ............................................................................................................................................... 202 Joint Houselessness Task Force ................................................................................................................ 203 Deschutes County 9-1-1 County Service District .................................................................................... 204 Extension and 4-H Service District ........................................................................................................... 205 Deschutes County Road Agency ............................................................................................................... 206 -5-      Deschutes County, Oregon Table of Contents For the Fiscal Year Ended June 30, 2023 Other Supplementary Information (Continued) Combining and Individual Fund Statements and Schedules – Nonmajor Funds (Continued) Nonmajor Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Campus Public Safety ............................................................................................................................... 207 Nonmajor Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Deschutes County Full Faith and Credit Debt Service ......................................................................... 208 Internal Service Funds Combining Statement of Net Position ............................................................................................................ 211 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................ 213 Combining Statement of Cash Flows .............................................................................................................. 215 Schedule of Revenues, Expenses, and Changes in Net Position – Budget and Actual Facilities ....................................................................................................................................................... 217 Administrative Services.............................................................................................................................. 218 Board of County Commissioners ............................................................................................................. 219 Finance ......................................................................................................................................................... 220 Finance Reserve .......................................................................................................................................... 221 Legal ............................................................................................................................................................. 222 Human Resources ...................................................................................................................................... 223 Information Technology ............................................................................................................................ 224 Information Technology Reserve ............................................................................................................. 225 Insurance ..................................................................................................................................................... 226 Health Benefits ........................................................................................................................................... 227 Fiduciary Funds Combining Statement of Fiduciary Net Position ........................................................................................... 229 Combining Statement of Changes in Fiduciary Net Position ...................................................................... 230 Other Financial Schedules Schedule of Property Taxes Transactions – All County Taxes ..................................................................... 233 Schedule of Long-Term Debt Principal Transactions ................................................................................... 234 Schedule of Long-Term Debt Interest Transactions .................................................................................... 235 Schedule of Future Debt Service Requirements of Pension Obligation Bonds ........................................ 236 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings – Governmental Activities ...................................................................................................... 237 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings – Business-Type Activities ...................................................................................................... 239 -6-      Deschutes County, Oregon Table of Contents For the Fiscal Year Ended June 30, 2023 STATISTICAL SECTION Statistical Section Contents ............................................................................................................................... 244 Financial Trends Net Position by Component – Last Ten Fiscal Years ...................................................................................... 245 Changes in Net Position – Last Ten Fiscal Years ............................................................................................. 247 Fund Balances - Governmental Funds – Last Ten Fiscal Years ..................................................................... 251 Changes in Fund Balances - Governmental Funds – Last Ten Fiscal Years ................................................. 253 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................ 255 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................ 257 Principal Property Taxpayers – Current Fiscal Year and Nine Years Ago .................................................... 259 Property Taxes Levies and Collections – Last Ten Fiscal Years .................................................................... 260 Debt Capacity Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ....................................................................... 261 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ........................................................ 263 Direct and Overlapping Governmental Activities Debt ................................................................................. 265 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................ 266 Pledged-Revenue Coverage – Last Ten Fiscal Years ..................................................................................... 269 Demographic and Economic Information Demographic and Economic Statistics – Last Ten Calendar Years ............................................................. 270 Principal Employers – Current Year and Nine Years Ago ............................................................................. 271 Operating Information Full-Time Equivalent County Government Employees by Function/Program – Last Ten Fiscal Years ..................................................................................................................................... 272 Operating Indicators by Function/Program – Last Ten Fiscal Years ........................................................... 273 Capital Asset Statistics by Function / Program – Last Ten Fiscal Years ...................................................... 275 -7-      Deschutes County, Oregon Table of Contents For the Fiscal Year Ended June 30, 2023 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Audit Comments and Disclosures Required by State Regulations............................................................. 278 Report of Independent Auditors Required by Oregon State Regulations ................................................. 280 SINGLE AUDIT SECTION Report of Independent Auditors 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 ............................................................................................................... 286 Report of Independent Auditors on Compliance for the Major Federal Program and Report on Internal Control Over Compliance as Required by the Uniform Guidance ......................................... 290 Schedule of Expenditures of Federal Awards ............................................................................................... 293 Notes to Schedule of Expenditures of Federal Awards ............................................................................... 296 Schedule of Findings and Questioned Costs ................................................................................................. 298 -8-     -9-     Introductory Section For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -10-   1300 NW Wall Street, Bend, Oregon 97703 (541) 388-6565 Nick.lelack@deschutes.org www.deschutes.org   COUNTY ADMINISTRATOR NICK LELACK November 30, 2023 To the Board of County Commissioners and Citizens of Deschutes County, Oregon: We are pleased to submit the Annual Comprehensive Financial Report of Deschutes County, Oregon (County) for the fiscal year ended June 30, 2023, together with the opinion of our independent certified public accountants, Moss Adams LLP. This report, required by Oregon Revised Statutes (ORS 297.425), is prepared by the Deschutes County Finance Department. This report is published to provide the Board of County Commissioners, citizens, County staff, and other readers with detailed information about the financial position and results of operations of the County, and to demonstrate fiscal and operational accountability in the use of County resources. Also included are Audit Comments and Disclosures required under the Minimum Standards for Audits of Oregon Municipal Corporations Section of the Oregon Administrative Rules (OAR). The 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, 2023, 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. 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. The 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 280. 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). -11-       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 Deschutes County, formed in 1916, is in the heart of Central Oregon, between the towering Cascade Mountain Range to the west and the high desert plateau to the east, and is the outdoor recreation capital of Oregon. The county encompasses 3,055 square miles of scenic beauty, mild climate, diverse recreational opportunities, and a growing economy. From humble beginnings, Deschutes County now experiences the most rapid population growth of any county in Oregon. It has developed into a bustling, exciting destination where progress, growth and unique beauty intertwine. 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 and probation, election services, records maintenance, and operation of a landfill, a fair and expo center, and an RV park. 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, Deschutes County Extension and 4-H, and Deschutes County Road Agency 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 as part of the required supplementary information. All other funds are presented in a subsection of this report “Combining and Individual Fund Statements and Schedules”. 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. -12-       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 Interpolation Program), the population was estimated to be 211,419, as of July 1, 2023, an increase of approximately 34% since 2010, and is projected to exceed 300,000 before 2050. 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. Historically, Deschutes County was dominated by wood product manufacturing. However, the local economy has undergone significant changes in the last two decades. Now dominated by retail trade, health care and tourism, Deschutes County attracts visitors and consumers from neighboring counties and around the state. The top ten largest employers in Deschutes County are listed in the table below. According to the State of Oregon Employment Department, Deschutes County’s unemployment rate in June 2023 was 3.8 percent, slightly lower from 3.9 percent in June 2022, and higher than the statewide rate of 3.5 percent. The unemployment rate has dropped significantly from the pandemic levels of 16.6 percent in April 2020. Employer Number of Employees Percent Total Employment Type of Business St. Charles Medical Center 4,400 32.9% Health Care Bend - La Pine School District 2,300 17.2% Education Deschutes County 1,284 9.6% Government Mt. Bachelor 1,081 8.1% Accommodation & Recreation Redmond School District 1,016 7.6% Education Sunriver Resort 900 6.7% Accommodation City of Bend 717 5.4% Government U.S. Forest Service / Deschutes National Forest 615 4.6% Government Bend Park and Recreation District 591 4.4% Government OSU Cascades 470 3.5% Education Source: Econmic Development for Central Oregon LARGEST EMPLOYERS IN DESCHUTES COUNTY (2023) -13-       Select industry gains and losses over-the-year for net employment change in Deschutes County indicates total nonfarm employment realized the largest increase while retail trade jobs experienced the greatest loss. In Fiscal Year 2023, the County’s assessed valuation of taxable property increased by 5.6%, approximately $1.6 billion, to a total of $30.5 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, Central Oregon’s largest employer, designated as a Level II Trauma Center with over 350 active medical staff members. 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 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 Deschutes County’s focus on long-term financial planning begins with policies to guide both current and future decision making. The policies are intended to support the County’s goals and objectives, and provide guidance in day-to-day operations to ensure overall long-term financial stability. Long-term strategic and financial planning is an important part of ensuring excellent service and stewardship of taxpayer resources. Each fiscal year, the County updates resource and requirement forecasts for major operating funds for the next five years and annually develops a five-year Capital Improvement Program (CIP) for major projects related to the acquisition, expansion or rehabilitation of the County's buildings, equipment, parks, streets and other public infrastructure. These estimates are presented to the Budget Committee to facilitate budget decisions and strategic planning, based on a multi-year perspective. Revenue estimates are established each year in a realistic and prudent manner using objective and analytical approaches. Revenue forecasts assess the full spectrum of resources that can be allocated for public services. The County will not respond to long- term revenue shortfalls with deficit funding or borrowing to support ongoing operations. Once working capital balances have reached policy levels, expenses are reduced to conform to long-term revenue forecasts and/or revenue increases are considered. Source: State of Oregon Employment Department -14-       Overall, the County’s long-term financial planning efforts are focused on maintaining a structurally balanced budget, ensuring that recurring expenditures are at or below recurring revenues which ultimately provides that one-time revenues are available for one-time expenditures or projects. Major Initiatives The County continues to focus on implementing a five-year capital improvement plan. Capital spending of $66 million, including County service districts, is included in the FY 2024 adopted budget. The capital budget includes transportation system improvements, capital equipment additions and replacements for various departments, technology improvements and other routine department level capital expenditures intended to support the delivery of services. Major projects include $23.6 million in transportation improvements and $17.4 million in Solid Waste improvements, including the Negus transfer station in Redmond. Total capital budget for FY 2024 is $22.1 million less than FY 2023 revised budget. The Board of County Commissioners establishes the goals and objectives to guide department operations each year. Through the following Fiscal Year 2024 Goals and Objectives, the County embraces its mission of “enhancing the lives of citizens by delivering quality services in a cost-effective manner”: SAFE COMMUNITIES: Protect the community through planning, preparedness and delivery of coordinated services.  Provide safe and secure communities through coordinated public safety and crisis management services.  Reduce crime and recidivism and support victim restoration and well-being through equitable engagement, prevention, reparation of harm, intervention, supervision and enforcement.  Collaborate with partners to prepare for and respond to emergencies, natural hazards and disasters. HEALTHY PEOPLE: Enhance and protect the health and well-being of communities and their residents.  Support and advance the health and safety of all Deschutes County’s residents.  Promote well-being through behavioral health and community support programs.  Help to sustain natural resources and air and water quality in balance with other community needs.  Continue to support pandemic response and community recovery, examining lessons learned to ensure we are prepared for future events. A RESILIENT COUNTY: Promote policies and actions that sustain and stimulate economic resilience and a strong regional workforce.  Update County land use plans and policies to promote livability, economic opportunity, disaster preparedness, and a healthy environment.  Maintain a safe, efficient and economically sustainable transportation system.  Manage County assets and enhance partnerships that grow and sustain businesses, tourism, and recreation. HOUSING STABILITY AND SUPPLY: Support actions to increase housing production and achieve stability.  Expand opportunities for residential development on appropriate County-owned properties.  Support actions to increase housing supply.  Collaborate with partner organizations to provide an adequate supply of short-term and permanent housing and services to address housing insecurity. -15-       SERVICE DELIVERY: Provide solution-oriented service that is cost-effective and efficient.  Ensure quality service delivery through the use of innovative technology and systems.  Support and promote Deschutes County Customer Service “Every Time” standards.  Continue to enhance community participation and proactively welcome residents to engage with County programs, services and policy deliberations.  Preserve, expand and enhance capital assets, to ensure sufficient space for operational needs.  Maintain strong fiscal practices to support short and long-term county needs.  Provide collaborative internal support for County operations with a focus on recruitment and retention initiatives. In FY 2024, the County will continue to implement the Commissioners' goals and priorities, and support strategic investments, including:  Expanding access to County services in Redmond with the development of the North County Campus and the Negus transfer station.  Expanding the Deschutes County Circuit courthouse in downtown Bend to improve security and provide additional courtroom space for the two new judges approved by the legislature in 2021.  Engaging our residents in updating our Comprehensive Plan, Transportation System Plan, and other community planning efforts to manage growth and natural resources as well as to protect the public health and safety of our residents.  Identifying a site for a new solid waste management facility.  Partnering with cities to support the Coordinated Houseless Response Office, which is charged with creating a five-year strategic plan and implementing a high-performance houseless response system. Tax Abatement Program The five strategic goals in the Deschutes County 2024 Goals and Objectives support the tax abatement program. The key goals include a resilient county and housing stability and supply. Tax abatement is an agreement whereby a government agrees to forgo tax revenues to which it is otherwise entitled in exchange for a promise by the counterparty to the agreement to take specific future actions that will contribute to the government’s economic development, or which otherwise benefits the government or its citizens. Tax abatements are intended to improve local conditions and spur economic development that otherwise would not occur, and an important tool for redevelopment. Tax abatements are meant to encourage rehabilitation and redevelopment of distressed areas. The potential benefits of abatements include additional short and long-term employment for residents, attracting new businesses or improving existing businesses, luring new residents which in turn can generate additional tax revenue, generating a tax- revenue stream on once vacant or under- developed property, improving safety and commerce, and increasing adjacent property values. In the Notes to Financial Statements, the County provides information related to its five tax abatement programs authorized by Oregon Revised Statutes. 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 annual comprehensive financial report for the fiscal year ended June 30, 2022. This was the 22nd consecutive year that the County has received this prestigious award. To be awarded a Certificate of Achievement, the County published an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. -16-       A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current annual comprehensive 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 fiscal year beginning July 1, 2022. This was the 15th consecutive year that the County has received this award. 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 communications device. Finally, Deschutes County received GFOA’s Popular Annual Financial Report (PAFR) award for the fourth consecutive year for the fiscal year ended June 30, 2022. The PAFR can be found on the County’s website, www.Deschutes.org/pafr. Deschutes County received the Triple Crown designation from the GFOA as recognition for having received all three GFOA awards. The preparation of the annual comprehensive financial report on a timely basis was made possible by the skill, effort, and dedicated service of the entire staff of the Finance Department. We wish to thank all the County’s departments for their assistance in providing the data necessary to prepare this report. Acknowledgment should also be given to the Board of County Commissioners for their interest and support for maintaining the highest standards of professionalism in the management of the County’s finances. Respectfully submitted, Nick Lelack Robert Tintle County Administrator Chief Financial Officer -17-     -18-     Deschutes County Organizational Chart As of June 30, 2023 Elected Offices Appointed Offices Department Functions Property Tax  Appeals Administrative/ Court Proceedings Small Claims Court Tax  Distribution Cartography Vital Records Administrative &  Support Services Victims AssistanceCounty Legal  Services Assessment Records Document  Recording Law  Enforcement Legal  Counsel County  Administrator Treatment  Courts Justice of  the Peace County  Treasurer  Appraisals Elections Corrections (Jail/Work Center) Prosecution in Circuit Court  Traffic/Ordinance Violations Investments Citizens of  Deschutes County County  Assessor County  Clerk County  Sheriff Board of  Commissioners  District  Attorney -19-     Deschutes County Organizational Chart As of June 30, 2023 County Administrators Appointed Offices Department Functions Workers'  Compensation General & Vehicle  Liability Unemployment  Insurance Americans with  Disabilities Act Health  BenefitsAlcohol & Drug  Prevention Early Learning  Council GIS Insurance Maternal Child  Health Developmental  Disabilities Transitional  Services Probation &  Diversion Retirement  ProgramsWoman, Infants &  Children (WIC) Access & Crisis  Services Reproductive  Health Adult Treatment Electronic  Monitoring Juvenile  Detention RV Park Web  Applications Compensation Facilities Planning  & ConstructionCommunity Health Child & Family Offender  Supervision Community  Service  County Fair Public Health Behavioral Health Adult Parole &  Probation Juvenile Justice Human  Resources Communications Facilities Fair & Expo Center Technology Staff  Recruitment Legislative  Affairs Building  Maintenance Risk  Management Health Services  Director  Veterans' Services Community  Justice Fair & Expo  Center Information  Technology Tax Collection Fleet Equipment  Services Code  Enforcement Property  Management Dog Licensing GIS Payroll Transfer  Operation County Surveyor Building Safety Public  Information Budget Recycling Services Noxious Weed  Control Environmental  Soils Natural Resource  Protection Finance/Tax Solid  Waste Road  Department Community  Development Administrative  Services Accounting Landfill  Disposal Develop/Maintain Road System Planning Internal Auditing Deputy County  Administrator County  Administrator Deputy County  Administrator -20-     -21-     Listing of Principal Officials As of June 30, 2023 ELECTED OFFICIALS Board Of County Commissioners Name Position Term Expiration Anthony DeBone, Chair Position 1 January 4, 2027 Patti Adair, Vice Chair Position 3 January 4, 2027 Philip Chang Position 2 January 6, 2025 Other Elected Officers Name Position Term Expiration Scot Langton County Assessor January 4, 2027 Steve Dennison County Clerk January 4, 2027 Steve Gunnels County District Attorney January 4, 2027 Shane Nelson County Sheriff January 6, 2025 William Kuhn County Treasurer January 4, 2027 Charles Fadeley Justice of the Peace January 1, 2029 APPOINTED OFFICIALS Name Position Nick Lelack County Administrator David Doyle County Counsel Robert Tintle Chief Financial Officer David Givans County Internal Auditor Deschutes County Administrative Offices 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 -22-     -23-     -24-     -25-     Financial Section For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -26- Report of Independent Auditors Deschutes County Board of Commissioners Deschutes County, Oregon Bend, Oregon Report on the Financial Statements Opinions We have audited 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, 2023, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. In our opinion, the accompanying 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, 2023, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (Government Auditing Standards), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. -27- Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 County’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedule of the Proportionate Share of the Net Pension Liability (Asset), the Schedule of Net Pension Plan Liability (Asset) Employer Contributions, the Schedule of Changes in the Total OPEB Liability, the Schedule of Proportionate Share of the Net OPEB Liability (Asset), the Schedule of Net OPEB Liability (Asset) Employer Contributions, and the Notes to Required Supplementary Information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. -28- 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. Accounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual for the General Fund, Deschutes County Sheriff’s Office, Countywide Law Enforcement County District, Rural Law Enforcement County District, Road Department, Health Services and American Rescue Plan Act (collectively the budgetary comparison information), as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not 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. The required budgetary comparison information is the responsibility of management and was derived from and relates 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 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 required budgetary comparison information is fairly stated, in all material respects, in relation to the basic financial statements as whole. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The Schedule of Expenditures of Federal Awards and related notes, as listed in the table of contents in the Single Audit section, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and the other supplementary information, as listed in the table of contents in the Other Supplementary Information section (collectively, the supplementary information), are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information is the responsibility of management and was derived from and relates 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. -29- Other Information Management is responsible for the other information included in the annual report. The other information comprises the Introductory, Other Financial Schedules, and Statistical sections, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2023 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, and 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. Other Reporting Required by Minimum Standards for Audits of Oregon Municipal Corporations In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have also issued our report dated November 30, 2023, on our consideration of the County’s compliance with certain provisions of laws, regulations, contracts, and grant agreements, 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. 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. Amanda McCleary-Moore, Partner for Moss Adams LLP Eugene, Oregon November 30, 2023 -30- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     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 for the fiscal year (FY) ended June 30, 2023. We encourage readers to consider this information in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS  On a government-wide basis, total assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $250,254,178 as of June 30, 2023, an increase of $9,640,409 in net position from June 30, 2022. A contributing factor to the change was the $13 million decrease in the OPEB County plan liability, mainly as a result of change in census and claims. With additional recognition of federal funding from the American Rescue Plan Act, 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 over time by large capital expenditures and rising pension expenses.  The County reported a combined fund balance at June 30, 2023, of $166,456,014 for its governmental funds, a decrease of $11,877,269 from June 30, 2022. Of this balance, $39,857,213 is available to meet the County’s obligations. The remainder is either nonspendable or restricted.  County General Fund o The General Fund’s fund balance, including the sub-funds of the General Fund, was $28,746,503 as of June 30, 2023, a decrease of $276,885 from the balance at June 30, 2022. o Fund balance is 56% percent of the Fund’s combined revenues and transfers in. Fund balance is 56% of the Fund’s combined expenditures and transfers out.  The County’s Assessed Valuation of Taxable Property increased by 5.6% in FY 2023.  Total bonded debt was $51,190,000 as of June 30, 2023, compared to total bonded debt of $37,396,600 as of June 30, 2022. June 30, 2023 June 30, 2022 General Fund (Operations) 13,426,082$ 13,398,279$ Sub-funds of the General Fund 15,320,421 15,625,109 28,746,503$ 29,023,388$ -31- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     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, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Deschutes County is improving or deteriorating. The Statement of Activities presents information showing how Deschutes County’s net position changed during the fiscal year. Changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued compensated leave that will result in cash flows in future fiscal periods. 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 intergovernmental 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, county roads and health & welfare. The business-type activities of Deschutes County include Solid Waste, Fair & Expo Center, and RV Park. The government-wide financial statements include four county service districts and one county agency:  Countywide Law Enforcement District  Deschutes County 9-1-1 District  Rural Law Enforcement District  Deschutes County Road Agency  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. 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. -32- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) Governmental Funds Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-wide Statement of Activities have been included in this report. Both the governmental fund balance sheet and statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented in this report in subsection “Basic Financial Statements”. Deschutes County reported activity in fifty-five (55) individual governmental funds and nine (9) sub-funds during FY 2023. 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:  General Fund  Deschutes County Sheriff’s Office (Sheriff)  Countywide Law Enforcement District  Rural Law Enforcement District  Road  Health Services  Road Capital Improvement Plan (Road CIP)  American Rescue Plan Act (ARPA) 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. -33- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) 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, 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, and RV Park. All three enterprise funds are reported as 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. 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. Notes to 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. 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. 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. -34- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     GOVERNMENT-WIDE FINANCIAL ANALYSIS Deschutes County Net Position The County’s net position at June 30, 2023, was $250,254,178. 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 74%) of Deschutes County’s net position represents its net investment in capital assets including land, infrastructure, buildings, roads, equipment and subscriptions. 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, landfill closure and post-closure costs, public safety, roads and health programs totaled $100,601,526 or 40%. The unrestricted category of net position is negative for governmental activities and positive for business-type activities by a net total of $36,154,238 due in part to the net pension liability and total Other Post-Employment Benefits’ (OPEB) liability’s impact on net position. Governmental activities Business-type activities Total 2023 2022 2023 2022 2023 2022 Assets other than capital assets 240,517,090$ 260,639,472$ 39,328,081$ 24,464,182$ 279,845,171$ 285,103,654$ Capital assets 190,525,113 162,744,418 52,521,524 42,811,637 243,046,637 205,556,055 Total assets 431,042,203 423,383,890 91,849,605 67,275,819 522,891,808 490,659,709 Deferred outflows of resources 62,006,450 60,848,394 1,691,720 1,845,260 63,698,170 62,693,654 Non-current liabilities 163,417,823 145,853,908 42,585,980 21,728,462 206,003,803 167,582,370 Current liabilities 67,380,490 71,290,988 5,165,284 2,390,865 72,545,774 73,681,853 Total liabilities 230,798,313 217,144,896 47,751,264 24,119,327 278,549,577 241,264,223 Deferred inflows of resources 56,435,538 69,585,517 1,350,685 1,889,853 57,786,223 71,475,370 Net position: 161,842,824 135,284,761 23,964,066 35,830,576 185,806,890 171,115,337 Restricted 86,626,839 90,450,775 13,974,687 - 100,601,526 90,450,775 Unrestricted (42,654,861) (28,233,666) 6,500,623 7,281,323 (36,154,238) (20,952,343) Net position 205,814,802$ 197,501,870$ 44,439,376$ 43,111,899$ 250,254,178$ 240,613,769$ Net investment in capital assets Deschutes County Net Position -35- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) Changes in Net Position The net position of the County increased by $9,640,409 during FY 2023. 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 $8,312,932 or 4%. Program expenses increased by 18%, program revenues increased by 12% and taxes increased by 5%. Governmental activities rely on general revenues to support the function. Property taxes make up the largest share of this support at 35% and are levied for general purposes, law enforcement, 9-1-1 operations and extension/4-H services. Fees, fines and charges provide 21% of governmental activities funding including state gas tax and registration fees, law enforcement related fees and fees for services provided by the Clerk’s Office and Community Development. Federal and State operating grants and contributions provide significant resources that are used for public safety and health services. FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 Program revenues: Charges for services 54,799,894$ 53,370,468$ 19,493,447$ 18,184,217$ 74,293,341$ 71,554,685$ Operating grants and contributions 98,552,785 83,007,298 53,167 53,167 98,605,952 83,060,465 General revenues: Property taxes 91,685,722 86,082,449 - - 91,685,722 86,082,449 Other taxes 12,597,706 13,114,807 - - 12,597,706 13,114,807 Other 4,612,463 (6,112,053) 172,666 (602,836) 4,785,129 (6,714,889) Total revenues 262,248,570 229,462,969 19,719,280 17,634,548 281,967,850 247,097,517 Expenses: General government 66,921,909 48,556,006 - - 66,921,909 48,556,006 Public safety 107,370,842 86,849,152 - - 107,370,842 86,849,152 County roads 10,167,800 22,046,884 - - 10,167,800 22,046,884 Health and welfare 66,433,425 55,636,443 - - 66,433,425 55,636,443 Interest on long-term debt 1,296,674 838,401 - - 1,296,674 838,401 Solid Waste - - 13,762,327 13,075,084 13,762,327 13,075,084 Fair & Expo Center - - 5,938,023 4,509,320 5,938,023 4,509,320 RV Park - - 436,441 368,229 436,441 368,229 Total expenses 252,190,650 213,926,886 20,136,791 17,952,633 272,327,441 231,879,519 10,057,920 15,536,083 (417,511) (318,085) 9,640,409 15,217,998 Transfers (1,744,988) (1,789,344) 1,744,988 1,789,344 - - Change in net position 8,312,932 13,746,739 1,327,477 1,471,259 9,640,409 15,217,998 Net position, Beginning of year 197,501,870 183,755,131 43,111,899 41,640,640 240,613,769 225,395,771 Net position, End of year 205,814,802$ 197,501,870$ 44,439,376$ 43,111,899$ 250,254,178$ 240,613,769$ DESCHUTES COUNTY'S Changes in Net Position Governmental activities Business-type activities Total Excess (deficiency) before transfers -36- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     CHANGES DUE TO GOVERNMENTAL ACTIVITIES (Continued) Function/Program by Funding Type - Governmental Activities Revenues by Source - Governmental Activities -37- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     CHANGES DUE TO BUSINESS-TYPE ACTIVITIES Business-type activities increased net position by $1,327,477 or 3.1%. Solid Waste During FY 2023, the County’s solid waste operation experienced an increase in net position of $441,058. The operating income during FY 2023 was $1,050,507. The full cost of operations includes depreciation and accrual of landfill closure and post-closure costs. Fair & Expo Center The operating loss from the County’s Fair & Expo Center during FY 2023 was $1,112,308; however, as the Fair & Expo Center 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 2023, the overall subsidy provided was $1,589,727. Fair & Expo Center revenues increased to $4,816,455, an increase of $1,208,045 (33%) from the prior fiscal year. RV Park Operating income for the RV Park was $154,826, a decrease of $79,806 (34%) from FY 2022. With business-type activities, Solid Waste and RV Park activities generated sufficient operating revenues during FY 2023 to cover operating expenses. All of program revenues for business-type activities come from charges for services. Function/Program by Funding Type - Business-type Activities -38- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     CHANGES DUE TO BUSINESS-TYPE ACTIVITIES (Continued) Revenues by Source - Business Activities FINANCIAL ANALYSIS OF 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, 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, 2023, $166,456,014 is the reported combined ending fund balance for Deschutes County’s governmental funds, a decrease of $11,877,269 from June 30, 2022. Changes, amounts and percentages, in the fund balances of the major governmental funds and of the other governmental funds were: Major Funds  General Fund (including sub-funds): decrease of $276,885, -1%  Sheriff, Countywide Law Enforcement District, and Rural Law Enforcement District (combined): decrease of $4,183,817, -28%  Road: decrease of $458,488, -3%  Road CIP: decrease of $3,761,676, -14%  Health Services: increase of $5,424,327, 22%  ARPA: increase of $699,129, 100% -39- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     FINANCIAL ANALYSIS OF COUNTY’S FUNDS (Continued) Nonmajor Funds  Nonmajor special revenue: decrease of $6,847,368, -12%  Nonmajor capital projects: decrease of $2,536,592, -30%  Nonmajor debt service: increase of $64,101, 17% Significant Changes in Major Funds General Fund As of June 30, 2023, the fund balance of Deschutes County’s General Fund was $28,746,503. Of this fund balance, $15,320,421 is nonspendable, committed, or assigned for specific use and $13,426,082 is unassigned. One measure of the General Fund’s liquidity is the relationship of the fund balance to the Fund’s total expenditures. The ending fund balance as of June 30, 2023, for the General Fund is 56% of total General Fund revenues and transfers in, and 56% of total General Fund combined expenditures and transfers out. Deschutes County’s General Fund balance decreased by $276,885, or -1%, during FY 2023. Revenues increased by $6,526,333, 15%, over the prior year due to approximately $3.6 million of transient room taxes allocated to general county reserves in FY23. Property tax revenues increased by $1,817,876, 5%, and intergovernmental revenues increased by $1,747,650, 35%. Expenditures decreased by $221,084, -1%. Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District 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. In the current fiscal year, these two law enforcement districts collectively contributed $48,889,912 to the Sheriff's fund, where all expenditures relate to Sheriff’s services are recorded. The combined fund balances of these three major funds decreased by $4,183,817. The increase in property tax revenue by 5% compared to the previous year was largely attributed to the County's assessed valuation of taxable property increasing by 5.6%. This growth was primarily driven by the new construction throughout the County and an average increase of approximately 3% in the taxable property values. Amidst these positive developments, the Sheriff's Office had to contend with uncertain economic conditions and rising inflation, resulting in escalated expenses related to technology and personnel costs. The evolving landscape of technology and the necessity for ongoing maintenance often exceeded the available funds for such investments, causing the Sheriff's Office's current expenditures to surge by 12% over the previous year, an increase of over $6 million. Road The fund balance of the Road fund decreased by $458,488, -3%, during FY 2023. During FY 2023, $9,778,721 was transferred from the Road Fund to the Road CIP fund. The Road fund receives the majority of its revenue from the State of Oregon gas tax, vehicle registrations, and the federal Secure Rural Schools Program. The fund balance will be used in the future to maintain county road systems. -40- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     FINANCIAL ANALYSIS OF COUNTY’S FUNDS (Continued) Road Capital Improvement Plan (Road CIP) The Road CIP fund receives annual transfers from the Road Fund, a major fund, for significant capital improvement projects. Transfers into this fund during FY 2023 were $9,778,721 from the Road Fund and $2,459,941 from non- major special revenue funds. Capital outlay expenditures for road projects occurring during FY 2023 totaled $16,697,188, more than double prior year capital outlay expenditures of $8,106,117, resulting in an overall decrease to fund balance of $3,761,676. The decrease in fund balance was due to significant capital projects completed or initiated in FY 2023 including the start of the Hunnell Road Project, $2.2 million incurred in FY 2023 with an estimated total project cost of $4 million, the completed Terrebonne Refinement Plan totaling approximately $2.2 million, and the significant paving overlay projects totaling approximately $3 million. Health Services Fund balance for the Health Services Fund increased by $5,424,327, or 22%. Revenue within the Health Services fund increased by $18,319,654, 41%, from the prior year, while expenditures increased by $11,228,377, 21%, 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. American Rescue Plan Act (ARPA) Fund balance for the ARPA increased by $699,129, or 100%. The increase in ARPA is due to unrealized investment earnings. Nonmajor Funds The combined fund balances of the County’s non-major special revenue funds decreased by $6,847,368, -12%. While the Transient Room Tax fund and Transient Room Tax -1% revenues continued to hold steady at $12.8 million, the County transferred $4,983,197 to general county reserves resulting in a decrease of fund balances. The Community Development Department’s fund balance increased by $133,655 due to the continued strength in real estate development. County assesses fees for future transportation requirements which resulted in revenues of $1,388,182 in the Countywide Transportation SDC Improvement fund during FY 2023. The Countywide Transportation SDC Improvement fund transferred $2,459,941 to the Road CIP fund resulting in a decrease in fund balance of $1,071,759, -26%. The debt service fund increased by $64,101 during the fiscal year because of the debt issuance of Full Faith & Credit Obligation Series 2023 for the renovation of Negus landfill transfer station. Proprietary Funds The information presented in the proprietary funds statement is similar to that in the government-wide financial statements but provides greater detail. -41- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     FINANCIAL ANALYSIS OF COUNTY’S FUNDS (Continued) At June 30, 2023, the net position of the Solid Waste Department was $23,300,204, an increase of $441,058 compared to the prior fiscal year. Charges for services increased $108,258, 1%. Current year expenses for landfill closure and post-closure costs increased $1,646,260. The estimate for post closure liability at June 30, 2023, was $13,934,346. Projections show the Solid Waste Department revenues will 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. At June 30, 2023, the net position of the Fair and Expo Center was $18,319,603, an increase of $551,958. As the Fair & Expo Center is a reason why many people visit Central Oregon, resources from the County’s transient room tax are made available to support this activity. Transient room taxes of $1,559,727 were transferred to Fair & Expo Center during FY 2023. The Fair & Expo Center also received $30,000 transferred from the Park Acquisition and Development fund. 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, a robust economy, and increased demand in RV parks through the COVID-19 pandemic, the RV Park is a profitable enterprise. The unrestricted net position at June 30, 2023, was $1,538,645, an increase of $223,523, or 17%. GENERAL FUND BUDGETARY HIGHLIGHTS There were six budget adjustments to the General Fund’s original budget during FY 2023:  The first adjustment increased state grant revenue and program expense appropriations by $585,200 for a pass-thru to Neighbor Impact for domestic well assistance.  The second adjustment increased state grant revenue for Veterans’ Services and program expense appropriations by $32,836.  The third adjustment increased state grant revenue for the District Attorney by $935,979 and increased program expenses and transfers out appropriations by $826,632 and $109,347.  The fourth adjustment decreased contingency and increased program expense appropriations by $100,000, which was necessary to make a loan to the Alfalfa Fire District.  The fifth adjustment decreased program expenses and increased transfers out appropriations by $3,710 for Veterans’ Services’ contribution to the building remodel of 236 and 244 NW Kingwood.  The sixth adjustment decreased contingency and increased program expense appropriations by $135,000 for unforeseen expenditures. The General Fund’s actual revenues were $437,435 less than estimated. The variance is primarily due to lower than estimated filing and recording Fees in the Clerk’s office. The variance between appropriations and expenditures was $2,260,707 less than estimated, approximately 5% of final appropriations. Factors contributing to this variance include unfilled positions and decreased actual expenditures for materials and services, primarily contract staff and professional services. Transfers out were also a contributing factor as the transfer to Health Services was lower than budgeted. -42- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets Deschutes County’s capital assets for its governmental and business-type activities as of June 30, 2023, was $243,046,637, net of accumulated depreciation and amortization. The book value of the depreciable assets is 52% of historical cost. Capital assets include land, buildings, equipment, software subscriptions, and infrastructure such as roads and bridges. Additional information on Deschutes County’s capital assets is included in Note 3E. Long-Term Debt As of June 30, 2023, Deschutes County’s outstanding debt was $51,190,000, all of which is backed by the full faith and credit of the County. Deschutes County’s bonded debt increased by $13,793,400 during the fiscal year due to the issuance of Full Faith & Credit Series 2022 and decreased by scheduled debt repayments. Moody’s Investors Services upgraded the credit rating of Pension Bonds during June 2021 from Aa2 to Aa1. 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 Aa1 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 reaffirmed in November 2023 through the issuance of 2023 Full Faith & Credit Series Obligations. See Note 4J in the Notes to Financial Statements. 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 $73 billion, the current debt limitation for Deschutes County is $1,463,000,000. The County has no general obligation debt at June 30, 2023. Additional information on Deschutes County’s long-term debt is included in Note 3G. DESCHUTES COUNTY'S Outstanding Debt General Obligation and Other Bonded Debt Governmental activities Business-type activities Total 2023 2022 2023 2022 2023 2022 Pension Bonds 5,830,000$ 6,870,000$ -$ -$ 5,830,000$ 6,870,000$ Direct Borrowing 458,600 680,093 2,906,400 3,691,507 3,365,000 4,371,600 Full Faith & Credit 20,831,808 22,940,492 21,163,192 3,214,508 41,995,000 26,155,000 Total 27,120,408$ 30,490,585$ 24,069,592$ 6,906,015$ 51,190,000$ 37,396,600$ -43- Deschutes County, Oregon Management’s Discussion and Analysis June 30, 2023     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 September 2023 and included employer rates to be in effect July 1, 2023 through June 30, 2025. The County expects PERS costs to remain steady for several years. The County established a PERS Reserve fund in 2004. The purpose of the fund is to provide relief to departments as PERS rates increase. The ending fund balance for the PERS Reserve is $4,527,409 as of June 30, 2023, which the County anticipates will help to offset future PERS increases. The County’s Assessed Value of Taxable Property increased from FY 2022 to FY 2023 by 5.6% to approximately $30.5 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 2024, the County’s general levy will be at a rate of $1.2783 per $1,000 of assessed value. This represents a $0.06 per $1,000 of assessed value increase from the FY 2023 adopted rate. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview to those parties interested in Deschutes County’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, Deschutes County Finance Department, 1300 NW Wall Street, Suite 200, Bend, OR 97703. -44-     -45-     Basic Financial Statements For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -46- Governmental Business - Type Activities Activities Total ASSETS Current assets: Cash and cash equivalents 28,853,010$ 4,997,161$ 33,850,171$ Investments, at fair value; plus accrued interest 189,538,157 32,757,230 222,295,387 Taxes receivable 2,980,635 -2,980,635 Accounts receivable, net 10,807,855 1,315,134 12,122,989 Lease receivable, current portion 993,509 -993,509 Inventory 2,653,108 15,015 2,668,123 Prepaid expenses 1,160,877 203,200 1,364,077 Total current assets 236,987,151 39,287,740 276,274,891 Noncurrent assets: Lease receivable 1,399,772 -1,399,772 Net OPEB RHIA asset 1,616,256 40,341 1,656,597 Capital assets not being depreciated 47,461,408 14,267,219 61,728,627 Capital assets, net of accumulated depreciation/amortization 143,063,705 38,254,305 181,318,010 Notes, contracts, and assessments receivable, net of allowance 513,911 -513,911 Total noncurrent assets 194,055,052 52,561,865 246,616,917 Total assets 431,042,203 91,849,605 522,891,808 DEFERRED OUTFLOWS OF RESOURCES Debt refunding 626,151 159,723 785,874 Pension plan 56,538,058 1,411,138 57,949,196 OPEB County plan 4,689,680 117,051 4,806,731 OPEB RHIA 152,561 3,808 156,369 Total deferred outflows of resources 62,006,450 1,691,720 63,698,170 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 493,048,653 93,541,325 586,589,978 Deschutes County, Oregon Statement of Net Position June 30, 2023 -47- Governmental Business - Type Activities Activities Total LIABILITIES Current liabilities: Accounts payable and other current liabilities 12,526,812 2,369,081 14,895,893 Payroll liabilities 6,042,084 129,585 6,171,669 Accrued interest 80,847 82,400 163,247 Unearned revenues 28,578,255 405,798 28,984,053 Current portion of noncurrent liabilities 20,152,492 2,178,420 22,330,912 Total current liabilities 67,380,490 5,165,284 72,545,774 Noncurrent liabilities: Compensated leave 12,127,799 398,034 12,525,833 Lease payable 2,835,074 9,570 2,844,644 Subscription liabilities 1,277,982 -1,277,982 Total OPEB County plan liability 22,472,775 560,899 23,033,674 Net pension plan liability 109,113,045 2,723,358 111,836,403 Bonds and notes payable (net of premiums and discounts)27,780,104 27,138,193 54,918,297 Accrued claims payable 7,963,536 -7,963,536 Accrued landfill closure and postclosure costs -13,934,346 13,934,346 Less current portion of noncurrent liabilities (20,152,492) (2,178,420) (22,330,912) Total noncurrent liabilities 163,417,823 42,585,980 206,003,803 Total liabilities 230,798,313 47,751,264 278,549,577 DEFERRED INFLOWS OF RESOURCES Lease resources 2,319,529 -2,319,529 Pension plan 34,086,054 850,757 34,936,811 OPEB County plan 19,809,020 494,414 20,303,434 OPEB RHIA 220,935 5,514 226,449 Total deferred inflows of resources 56,435,538 1,350,685 57,786,223 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 287,233,851 49,101,949 336,335,800 NET POSITION Net investment in capital assets 161,842,824 23,964,066 185,806,890 Restricted for: Capital projects 28,461,263 -28,461,263 Debt service 368,219 -368,219 Public safety 10,539,552 -10,539,552 County road 15,476,683 -15,476,683 Health & welfare 30,164,866 -30,164,866 Landfill closure and postclosure liability - 13,934,346 13,934,346 Net OPEB RHIA asset 1,616,256 40,341 1,656,597 Unrestricted (42,654,861) 6,500,623 (36,154,238) TOTAL NET POSITION 205,814,802$ 44,439,376$ 250,254,178$ The notes to the financial statements are an integral part of this statement. -48-     -49- Deschutes County, Oregon Statement of Activities For the Fiscal Year Ended June 30, 2023 Fees, Fines and Operating Charges for Grants and Governmental Business-type Expenses Services Contributions Activities Activities Total Governmental: General government 66,921,909$ 18,320,916$ 24,645,650$ (23,955,343)$ -$ (23,955,343)$ Public safety 107,370,842 4,952,871 11,861,558 (90,556,413) - (90,556,413) County roads 10,167,800 27,039,616 - 16,871,816 - 16,871,816 Health & welfare 66,433,425 4,486,491 62,045,577 98,643 - 98,643 Interest and fiscal charges 1,296,674 - - (1,296,674) - (1,296,674) 252,190,650 54,799,894 98,552,785 (98,837,971) - (98,837,971) Business-type: Solid Waste 13,762,327 14,099,929 - - 337,602 337,602 Fair and Expo Center 5,938,023 4,816,455 53,167 - (1,068,401) (1,068,401) RV Park 436,441 577,063 - - 140,622 140,622 20,136,791 19,493,447 53,167 - (590,177) (590,177) Total 272,327,441$ 74,293,341$ 98,605,952$ (98,837,971)$ (590,177)$ (99,428,148)$ General revenues: Property taxes, levied for general purposes 47,364,947$ -$ 47,364,947$ Property taxes, levied for sheriff services 44,320,775 - 44,320,775 Transient room tax 12,597,706 - 12,597,706 Investment earnings 4,612,463 172,666 4,785,129 Transfers (1,744,988) 1,744,988 - Total general revenues and transfers 107,150,903 1,917,654 109,068,557 Change in net position 8,312,932 1,327,477 9,640,409 Net position - beginning of year 197,501,870 43,111,899 240,613,769 Net position - end of year 205,814,802$ 44,439,376$ 250,254,178$ The notes to the financial statements are an integral part of this statement. Total governmental activities Total business-type activities Net (Expense) Revenue and Function/Program Program Revenues Changes in Net Position -50- Deschutes County, Oregon Balance Sheet Governmental Funds June 30, 2023 Rural Law General Sheriff's Enforcement Enforcement Fund Office District District ASSETS Cash and cash equivalents 4,286,664$ 348,971$ 1,160,710$ 177,902$ Investments, at fair value; plus accrued interest 28,149,306 1,951,697 7,921,425 1,214,123 Taxes receivable 592,249 - 496,888 213,475 Accounts receivable, net 923,090 445,060 - - Notes, contracts, and assessments receivable 390,769 - - - Lease receivable 394,639 - - - Due from other funds 129,811 - - - Inventory - - - - Total assets 34,866,528$ 2,745,728$ 9,579,023$ 1,605,500$ LIABILITIES Accounts payable and other current liabilities 1,484,022$ 1,469,140$ -$ -$ Payroll liabilities 2,508,851 1,108,680 - - Deposits 27,714 - - - Unearned revenue 840,355 124,550 - - Total liabilities 4,860,942 2,702,370 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 536,627 - 451,130 193,841 Unavailable revenue - special assessments - - - - Unavailable revenue - services provided - 43,358 - - Unavailable revenue - contracts of sale 343,112 - - - Unavailable revenue - leases 379,344 - - - Total deferred inflows of resources 1,259,083 43,358 451,130 193,841 FUND BALANCES Nonspendable 46,213 - - - Restricted - - 9,127,893 1,411,659 Committed 5,698,988 - - - Assigned 9,575,220 - - - Unassigned 13,426,082 - - - Total fund balances 28,746,503 - 9,127,893 1,411,659 Total liabilities, deferred inflows of resources and fund balances 34,866,528$ 2,745,728$ 9,579,023$ 1,605,500$ The notes to the financial statements are an integral part of this statement. Countywide Law -51- Road Capital American Other Total Improvement Health Rescue Governmental Governmental Road Plan Services Plan Act Funds Funds 2,156,260$ 3,039,384$ 5,107,082$ 1,603,682$ 8,329,645$ 26,210,300$ 14,165,744 19,968,441 33,552,028 10,536,025 54,717,022 172,175,811 - - - - 1,678,023 2,980,635 128,862 444,966 6,684,173 - 1,301,827 9,927,978 95,575 - - - 27,567 513,911 - - - - 1,479,659 1,874,298 - - - - - 129,811 2,653,108 - - - - 2,653,108 19,199,549$ 23,452,791$ 45,343,283$ 12,139,707$ 67,533,743$ 216,465,852$ 945,039$ 858,262$ 1,583,715$ 280,233$ 4,350,267$ 10,970,678$ 191,260 - 1,258,126 27,712 615,474 5,710,103 - - - - - 27,714 2,489,629 - 11,255,452 11,828,064 2,012,491 28,550,541 3,625,928 858,262 14,097,293 12,136,009 6,978,232 45,259,036 - - - - 165,330 1,346,928 95,575 - - - - 95,575 1,363 - 1,081,124 - 23,141 1,148,986 - - - - - 343,112 - - - - 1,436,857 1,816,201 96,938 - 1,081,124 - 1,625,328 4,750,802 2,653,108 - - - - 2,699,321 12,823,575 22,594,529 30,164,866 - 47,776,958 123,899,480 - - - 3,698 11,166,229 16,868,915 - - - - - 9,575,220 - - - - (13,004) 13,413,078 15,476,683 22,594,529 30,164,866 3,698 58,930,183 166,456,014 19,199,549$ 23,452,791$ 45,343,283$ 12,139,707$ 67,533,743$ 216,465,852$ -52-     -53- Deschutes County, Oregon Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2023 Total fund balances for governmental funds 166,456,014$ Amounts reported for governmental activities in the statement of net position are different because: Governmental capital assets 359,047,643 Less accumulated depreciation (169,919,748) 189,127,895 Prepaid expenses 917,213 OPEB RHIA Plan asset 1,499,656 Deferred outflows of resources - Debt refunding costs 626,151 Deferred outflows of resources - Pension plan 52,459,302 Deferred outflows of resources - OPEB County plan 4,351,358 Deferred outflows of resources - OPEB RHIA 141,555 57,578,366 Bonds and notes payable (27,120,407) Accrued interest on bonds and notes payable (80,847) Unamortized premium and discount on bonds (659,697) Lease payable (2,818,976) Subscription liabilities (1,079,798) Total OPEB County Plan liability (20,851,550) Net pension liability (101,241,441) (153,852,716) (10,904,767) A portion of the County's receivables will 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. 2,934,601 Deferred inflows of resources - OPEB County plan (18,379,964) Deferred inflows of resources - OPEB RHIA (204,997) Deferred inflows of resources - Pension plan (31,627,030) (50,211,991) 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. 2,270,531 Net position of governmental activities 205,814,802$ The notes to the financial statements are an integral part of this statement. Deferred inflows of resources are applicable to future periods and, therefore, are not reported in the governmental funds: Accrued compensated absences are not due and payable in the current period and, therefore, are not reported 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: Deferred outflows of resources related to debt refunding costs and pensions are applicable to future periods and, therefore, are not reported in the governmental funds: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds: -54- Deschutes County, Oregon Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2023 Rural Law Enforcement Enforcement General Fund Sheriff District District REVENUES Taxes - property 36,052,008$ -$ 30,701,745$ 13,519,679$ Taxes - other - - - - Licenses and permits 36,530 425,263 - - Fines, forfeitures and penalties 3,042 203,851 - - Special assessments - - - - Investment earnings (losses)556,520 (30,104) 412,961 71,710 Rents 816,531 - - - Intergovernmental 6,689,568 53,441,381 - - Charges for services 5,530,449 692,053 - - Contributions and donations 123 90,439 - - Payments on contracts of sale 846,098 - - - Other 27,656 101,725 - - Total revenues 50,558,525 54,924,608 31,114,706 13,591,389 EXPENDITURES Current: General government 12,465,887 - - - Public safety 18,618,228 55,650,265 35,320,873 13,569,039 County roads - - - - Health and welfare 758,902 - - - Debt service: Principal payments - - - - Interest - - - - Trustee fees - - - - Capital outlay 1,240,070 2,805,582 - - Total expenditures 33,083,087 58,455,847 35,320,873 13,569,039 Excess (deficiency) of revenues over expenditures 17,475,438 (3,531,239) (4,206,167) 22,350 OTHER FINANCING SOURCES (USES) Proceeds from leases 54,838 82,130 - - Proceeds from subscriptions - - - - Transfers in 802,373 3,721,787 - - Transfers out (18,609,534) (272,678) - - Total other financing sources (uses)(17,752,323) 3,531,239 - - Net change in fund balances (276,885) - (4,206,167) 22,350 Fund balances - beginning of year 29,023,388 - 13,334,060 1,389,309 Fund balances - end of year 28,746,503$ -$ 9,127,893$ 1,411,659$ The notes to the financial statements are an integral part of this statement. Countywide Law -55- Road Capital American Other Total Improvement Health Rescue Governmental Governmental Road Plan Services Plan Act Funds Funds -$ -$ -$ -$ 11,243,449$ 91,516,881$ - - - - 12,597,706 12,597,706 - - 70,338 - 1,644,867 2,176,998 5,295 - 8,000 - 586,213 806,401 3,924 - - - - 3,924 219,881 451,831 475,653 699,128 1,338,452 4,196,032 1,339 - 4,585 - 1,297,841 2,120,296 23,905,209 127,458 57,625,413 14,662,784 16,041,109 172,492,922 1,578,849 317,508 4,535,971 - 13,289,847 25,944,677 - - 785,588 - 4,096 880,246 - - - - - 846,098 - - - - - 129,381 25,714,497 896,797 63,505,548 15,361,912 58,043,580 313,711,562 - - - 14,640,867 26,648,688 53,755,442 - - - - 19,719,128 142,877,533 14,230,557 199,947 - - 5,159,444 19,589,948 - - 63,094,407 - - 63,853,309 - - - - 3,370,177 3,370,177 - - - - 1,107,238 1,107,238 - - - - 1,550 1,550 2,163,707 16,697,188 520,340 21,916 18,765,539 42,214,342 16,394,264 16,897,135 63,614,747 14,662,783 74,771,764 326,769,539 9,320,233 (16,000,338) (109,199) 699,129 (16,728,184) (13,057,977) - - 28,503 - 1,092,982 1,258,453 - - - - 1,855,136 1,855,136 - 12,238,662 6,067,329 - 13,434,341 36,264,492 (9,778,721) - (562,306) - (8,974,134) (38,197,373) (9,778,721) 12,238,662 5,533,526 - 7,408,325 1,180,708 (458,488) (3,761,676) 5,424,327 699,129 (9,319,859) (11,877,269) 15,935,171 26,356,205 24,740,539 (695,431) 68,250,042 178,333,283 15,476,683$ 22,594,529$ 30,164,866$ 3,698$ 58,930,183$ 166,456,014$ -56-     -57- Deschutes County, Oregon Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2023 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (11,877,269)$ Financial resources received that are not revenues in the statement of activities Payments on land sale contracts (109,969) Proceeds from leases and subscriptions (3,113,589) 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 (2,015,534) Unavailable revenue - special assessments and property taxes 168,841 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 3,370,177 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 and amortization expense. Acquisition of capital assets 46,222,551 Depreciation and amortization expense (12,576,072) 33,646,479 Net effect of miscellaneous transactions involving capital assets (disposals, sales, trade-ins, transfers, and adjustments)(4,770,998) Payment of lease and subscription liabilities is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statement of net position 2,614,127 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 61,440 Amortization of bond premium / (discount), net 114,492 (Increase) / decrease in accrued interest 11,954 (Increase) / decrease in compensated leave (541,941) Increase / (decrease) in prepaid expense 247,673 (Increase) / decrease in total OPEB County plan liability 11,556,989 (Increase) / decrease in deferred outflows - OPEB County plan (444,083) (Increase) / decrease in deferred inflows - OPEB County plan (12,066,507) Increase / (decrease) in net OPEB RHIA asset (334,913) Increase / (decrease) in deferred outflows - OPEB RHIA (7,880) (Increase) / decrease in deferred inflows - OPEB RHIA (309,950) (Increase) / decrease in net Pension plan liability (29,270,643) Increase / (decrease) in deferred outflows - Pension plan 1,646,263 (Increase) / decrease in deferred inflows - Pension plan 24,744,248 (4,592,858) Decrease in internal service fund net position (5,006,475) Total net adjustments - year ended June 30, 2023 20,190,201 Change in net position of governmental activities - year ended June 30, 2023 8,312,932$ The notes to the financial statements are an integral part of this statement. -58- Governmental Activities Fair & Expo Internal Solid Waste Center RV Park Total Service Funds ASSETS Current assets: Cash and cash equivalents 4,242,809$ 541,994$ 212,358$ 4,997,161$ 2,642,710$ Investments, at fair value, plus accrued interest 27,847,215 3,516,817 1,393,198 32,757,230 17,362,346 Accounts receivable 1,176,878 138,256 - 1,315,134 879,877 Lease receivable, current portion - - - - 200,532 Inventory - 15,015 - 15,015 - Prepaid expenses - 203,200 - 203,200 243,664 Total current assets 33,266,902 4,415,282 1,605,556 39,287,740 21,329,129 Noncurrent assets: Lease receivable - - - - 318,451 Net OPEB RHIA asset 25,242 14,558 541 40,341 116,600 Capital assets: Land 1,791,352 132,685 - 1,924,037 - Construction in progress 12,009,095 334,087 - 12,343,182 - Buildings and improvements 9,979,066 21,600,014 916,001 32,495,081 - Land improvements 37,433,362 8,670,702 2,735,388 48,839,452 195,977 Equipment and vehicles 8,685,161 1,115,042 6,417 9,806,620 1,527,559 Lease equipment 10,712 5,982 1,328 18,022 31,676 Intangible 123,595 - - 123,595 1,350,098 Subscription assets - - - - 306,986 Less accumulated depreciation and amortization (35,484,185) (15,706,218) (1,838,062) (53,028,465) (2,015,078) Total noncurrent assets 34,573,400 16,166,852 1,821,613 52,561,865 1,832,269 Total assets 67,840,302 20,582,134 3,427,169 91,849,605 23,161,398 DEFERRED OUTFLOWS OF RESOURCES Debt refunding 156,524 3,199 - 159,723 - Pension plan 882,988 509,239 18,911 1,411,138 4,078,756 OPEB County plan 73,242 42,240 1,569 117,051 338,322 OPEB RHIA 2,383 1,374 51 3,808 11,006 Total deferred outflows of resources 1,115,137 556,052 20,531 1,691,720 4,428,084 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 68,955,439 21,138,186 3,447,700 93,541,325 27,589,482 Business-Type Activities - Enterprise Funds Deschutes County, Oregon Proprietary Funds Statement of Net Position June 30, 2023 -59- Governmental Activities Fair & Expo Internal Solid Waste Center RV Park Total Service Funds LIABILITIES Current liabilities: Accounts payable and retainage payable 2,209,664 140,266 19,151 2,369,081 1,556,134 Payroll liabilities 81,192 45,626 2,767 129,585 331,981 Accrued interest 80,823 616 961 82,400 - Due to other funds - - - - 129,811 Unearned revenues - 405,798 - 405,798 - Current portion of noncurrent liabilities 1,709,593 254,021 214,806 2,178,420 6,010,535 Total current liabilities 4,081,272 846,327 237,685 5,165,284 8,028,461 Noncurrent liabilities: Compensated leave 223,203 172,379 2,452 398,034 1,223,032 Lease payable 5,040 4,166 364 9,570 16,098 Subscription liabilities - - - - 198,184 Net pension liability 1,704,081 982,782 36,495 2,723,358 7,871,604 Total OPEB County plan liability 350,970 202,413 7,516 560,899 1,621,225 Bonds and notes (net of unamortized premiums and discounts)26,220,755 377,113 540,325 27,138,193 - Accrued claims payable - - - - 7,963,536 Accrued landfill closure and postclosure costs 13,934,346 - - 13,934,346 - Less current portion of noncurrent liabilities (1,709,593) (254,021) (214,806) (2,178,420) (6,010,535) Total noncurrent liabilities 40,728,802 1,484,832 372,346 42,585,980 12,883,144 Total liabilities 44,810,074 2,331,159 610,031 47,751,264 20,911,605 DEFERRED INFLOWS OF RESOURCES Lease resources - - - - 503,328 Pension plan 532,342 307,014 11,401 850,757 2,459,024 OPEB County plan 309,369 178,420 6,625 494,414 1,429,056 OPEB RHIA 3,450 1,990 74 5,514 15,938 Total deferred inflows of resources 845,161 487,424 18,100 1,350,685 4,407,346 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 45,655,235 2,818,583 628,131 49,101,949 25,318,951 NET POSITION Net investment in capital assets 6,909,469 15,774,214 1,280,383 23,964,066 1,182,936 Restricted for: Landfill closure and postclosure liability 13,934,346 - - 13,934,346 - Net OPEB RHIA asset 25,242 14,558 541 40,341 116,600 Unrestricted 2,431,147 2,530,831 1,538,645 6,500,623 970,995 TOTAL NET POSITION 23,300,204$ 18,319,603$ 2,819,569$ 44,439,376$ 2,270,531$ The notes to the financial statements are an integral part of this statement. Business-Type Activities - Enterprise Funds -60- Governmental Activities Fair & Expo Internal Solid Waste Center RV Park Total Service Funds OPERATING REVENUES Charges for services 14,099,929$ 4,816,455$ 577,063$ 19,493,447$ 44,707,012$ Total operating revenues 14,099,929 4,816,455 577,063 19,493,447 44,707,012 OPERATING EXPENSES Personnel 2,711,131 1,509,138 124,383 4,344,652 12,372,495 Materials and services 6,303,891 3,770,296 192,618 10,266,805 37,567,765 Landfill closure/postclosure care costs 1,646,260 - - 1,646,260 - Depreciation and amortization 2,388,140 649,329 105,236 3,142,705 370,489 Total operating expenses 13,049,422 5,928,763 422,237 19,400,422 50,310,749 Operating income (loss) 1,050,507 (1,112,308) 154,826 93,025 (5,603,737) NONOPERATING REVENUES (EXPENSES) Grants - 53,167 - 53,167 - Investment earnings (losses) 117,418 41,409 13,839 172,666 416,431 Interest expense (719,054) (9,260) (14,204) (742,518) (113) Gain (loss) on sale of assets 6,149 - - 6,149 (6,949) Total nonoperating revenues (expenses) (595,487) 85,316 (365) (510,536) 409,369 Income (loss) before transfers 455,020 (1,026,992) 154,461 (417,511) (5,194,368) TRANSFERS Transfers in - 1,589,727 180,000 1,769,727 538,205 Transfers out (13,962) (10,777) - (24,739) (350,312) Net other financing sources (uses) (13,962) 1,578,950 180,000 1,744,988 187,893 Change in net position 441,058 551,958 334,461 1,327,477 (5,006,475) Net position - beginning of year 22,859,146 17,767,645 2,485,108 43,111,899 7,277,006 Net position - end of year 23,300,204$ 18,319,603$ 2,819,569$ 44,439,376$ 2,270,531$ The notes to the financial statements are an integral part of this statement. Business-Type Activities - Enterprise Funds Deschutes County, Oregon Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position For the Fiscal Year Ended June 30, 2023 -61- Governmental Activities Fair & Expo Internal Solid Waste Center RV Park Total Service Funds Receipts from customers 13,835,692$ 4,729,270$ 601,402$ 19,166,364$ 43,880,350$ Payments to employees (3,058,478) (1,542,859) (78,125) (4,679,462) (11,841,559) Payments to suppliers (4,729,310) (3,636,239) (184,477) (8,550,026) (39,785,864) Net cash provided (used) by operating activities 6,047,904 (449,828) 338,800 5,936,876 (7,747,073) Grants - 53,167 - 53,167 - Transfers in - 1,589,727 180,000 1,769,727 538,205 Transfers out (13,962) (10,777) - (24,739) (350,312) Net cash provided (used) by noncapital financing activities (13,962) 1,632,117 180,000 1,798,155 187,893 Acquisition and construction of capital assets (12,513,418) (383,000) (6,417) (12,902,835) (274,259) Proceeds from sale of capital assets 10,342 31,741 - 42,083 - Proceeds from issuance of bonds 21,206,855 - - 21,206,855 - Principal paid on capital debt (755,226) (92,463) (208,734) (1,056,423) - Interest paid on capital debt (770,798) (8,805) (14,538) (794,141) - Payments for leases (2,845) (1,448) (483) (4,776) (15,300) Interest paid on leases (59) (119) (5) (183) (199) Proceeds from leases - - - - (10,518) Payments for subscriptions - - - - (108,802) Due to other funds - - - - 99,319 Net cash provided (used) by capital and related financing activities 7,174,851 (454,094) (230,177) 6,490,580 (309,759) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (14,479,617) (1,133,079) (447,031) (16,059,727) 2,808,473 Interest 491,016 61,998 21,925 574,939 388,467 Net cash provided (used) by investing activities (13,988,601) (1,071,081) (425,106) (15,484,788) 3,196,940 Net increase (decrease) in cash and cash equivalents (779,808) (342,886) (136,483) (1,259,177) (4,671,999) Balances - beginning of year 5,022,617 884,880 348,841 6,256,338 7,314,709 Balances - end of year 4,242,809$ 541,994$ 212,358$ 4,997,161$ 2,642,710$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)1,050,507$ (1,112,308)$ 154,826$ 93,025$ (5,603,737)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Amortization of deferred lease resources - - - - (199,742) Depreciation and amortization expense 2,388,140 649,329 105,236 3,142,705 370,489 Change in operating accruals: Receivables (264,237) (78,581) 24,339 (318,479) (813,600) Prepaid expenses and inventory - (92,495) - (92,495) (13,062) Accounts payable 1,574,581 134,057 8,141 1,716,779 (3,513,056) Payroll liabilities 81,192 45,626 2,767 129,585 331,981 Claims payable - - - - 1,494,699 Unearned revenues - 83,891 - 83,891 - Compensated leave 2,496 24,210 2,452 29,158 149,416 Net OPEB RHIA asset (24,175) (13,942) (518) (38,635) (111,668) Net OPEB liability (302,104) (58,372) 12,572 (347,904) (3,111,002) Net pension liability (104,756) (31,243) 28,985 (107,014) 3,272,209 Accrued closure / postclosure 1,646,260 - - 1,646,260 - Net cash provided (used) by operating activities 6,047,904$ (449,828)$ 338,800$ 5,936,876$ (7,747,073)$ NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Change in fair value of investments (445,128)$ (26,737)$ (10,514)$ (482,379)$ (459,476)$ Lease receivable for deferred inflow of resources -$ -$ -$ -$ 374,633$ The notes to the financial statements are an integral part of this statement. CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Business-Type Activities - Enterprise Funds Deschutes County, Oregon Proprietary Funds Statement of Cash Flows For the Fiscal Year Ended June 30, 2023 -62- Deschutes County, Oregon Statement of Fiduciary Net Position Fiduciary Funds June 30, 2023 Custodial Funds ASSETS Cash and cash equivalents 887,834$ Investments, at fair value; plus accrued interest 5,832,979 Taxes receivable for other governments 6,078,951 Accounts receivable 90,838 Notes receivable 1,048,730 Total assets 13,939,332 LIABILITIES Accounts payable 137,425 Deposits 2,753,404 Due to other governments 7,991,893 Total liabilities 10,882,722 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - land auction sales 1,048,730 Total deferred inflows of resources 1,048,730 NET POSITION Restricted for: Individuals, organizations, and other governments 2,159,374 Unrestricted (151,494) Total net position 2,007,880$ The notes to the financial statements are an integral part of this statement. -63- Statement of Changes in Fiduciary Net Position Fiduciary Funds Custodial Funds ADDITIONS Investment earnings Interest on land sale loans 52,124$ Net increase in fair value of investments 201,697 Property tax collections for other governments 473,331,546 Fines, forfeitures and penalties 1,152,172 Rents 34,500 Collections for services provided to other governments 106,639 Charges for services 3,094,478 Other 287 Total additions 477,973,443 DEDUCTIONS Payment of property taxes to other governments 473,420,651 Payment of services to other governments 847,987 Public safety 4,074,942 Total deductions 478,343,580 Change in Fiduciary net position (370,137) Net position - beginning of year 2,378,017 Net position - end of year 2,007,880$ The notes to the financial statements are an integral part of this statement. For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -64- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 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 five component units, entities for which the County is considered to be financially accountable and for which a financial benefit or burden exists. Blended component units, although legally separate entities, are, in substance, part of the County’s operations. The Board of County Commissioners is the governing body for each component unit. Following is a brief description of each blended component unit included within the reporting entity.  Countywide Law Enforcement District (District #1) – The district contracts with Deschutes County for law enforcement services that are provided to all County residents.  Rural Law Enforcement District (District #2) – The district contracts with Deschutes County for patrol services in those portions of Deschutes County not serviced by city or special district law enforcement departments.  Deschutes County 9-1-1 Service District – The district operates the County 9-1-1 call center.  Deschutes County Extension and 4-H Service District – The district provides resources for support staff and a program coordinator for Oregon State University Extension Service.  Deschutes County Road Agency – The Agency contracts with Deschutes County to provide road construction services in Deschutes County. The component units described above have been included in these financial statements. Each component unit’s 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. New Accounting Pronouncements During the fiscal year ended June 30, 2023, the County implemented the following GASB pronouncements:  GASB Statement No. 91, Conduit Debt Obligations – This statement provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definitions of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. This implementation had no material impact to the County. See Note 3G for more information related to this implementation. -65- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements – The requirements of this statement improve financial reporting by establishing definitions of Public-Private or Public-Public Partnerships (PPPs) and Availability Payment Arrangements (APAs) and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. This statement requires governments to report assets and liabilities related to PPPs consistently and disclose important information about those PPP transactions. There was no financial impact in the current fiscal year as a result of the application of this statement. See Note 4F for more information related to this implementation.  GASB Statement No. 96, Subscription-Based Information Technology Arrangements – This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset, which is an intangible asset, and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. See Note 3G and Note 4I for more information related to this implementation.  GASB Statement No. 99, Omnibus 2022 – This statement addresses issues that were identified during implementation and application of certain GASB statements including the extension of the use of LIBOR, accounting for Supplemental Nutrition Assistance Program (SNAP) distributions, disclosure of nonmonetary transactions, pledges of future revenues by pledging governments, as well as clarification of provisions in Statement No. 34 and terminology updates related to Statements No. 53 and 63. These requirements are effective upon issuance and had no material impact on the County. GASB has issued the following pronouncements that may affect future financial position, results of operations, cash flows, or financial presentation of the County upon implementation. These pronouncements have not yet been implemented by the 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. GASB Fiscal Year Statement No. GASB Accounting Standard Effective 100 Accounting Changes and Error Corrections 2024 101 Compensated Absences 2025 -66- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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 and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place. 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. Revenue from grants and similar items are recognized in the fiscal year in which all eligibility requirements imposed by the provider have been satisfied. 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 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 measurable and available only when cash is received by the County. Fiduciary funds, which are all custodial funds, utilize the accrual accounting method and the economic resources measurement focus. -67- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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: Enterprise Funds – The County operates three enterprise activities, two of which have been determined to be major. 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. 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 (Road CIP) 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. American Rescue Plan Act (ARPA) The financial resources, $38 million in Federal funding, are used for COVID19 support and other eligible causes. 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. -68- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Additionally, the County reports the following fund types: 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 (losses). 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 and amortization 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. Internal service funds Accounts 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 Accounts track 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. -69- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1. Cash and Cash Equivalents 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 custodial 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, 2023, 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. Lease Receivables Lease receivables are recognized at the net present value of the lease payments expected to be received at a borrowing rate either explicitly described in the agreement or implicitly determined by the County, reduced by principal payments received. 4. 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. -70- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 5. 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 back trending (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 Governmental Accounting Standards Board (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: 6. Lease Assets Lease assets are assets which the County leases for a term of more than one year. The value of leases is determined by the net present value of the leases at the County’s incremental borrowing rate at the time of the lease agreement, amortized over the term of the agreement. 7. Subscription Assets Subscription assets are subscription-based information technology arrangements with a term of more than one year. The value of subscription assets is determined by the net present value of the subscription at the County’s incremental borrowing rate at the time of the license agreement, amortized over the term of the agreement. Years Buildings 30-60 Building improvements 10-15 Land improvements 10-30 Equipment and vehicles 2-20 Infrastructure 20-50 Intangibles 3-10 Assets -71- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 8. 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 assets that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until then. The separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and 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 five sources: property taxes, special assessments, services provided, contracts of sale, and leases. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. 9. 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. 10. Pension Plan 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. 11. Other Post-Employment Benefits Other Than Pensions (OPEB) (Asset)/Liability For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and the OPEB expense information about the fiduciary net position of the County's Retiree Health Plan (the Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit terms. -72- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 12. Total OPEB (Asset)/Liability The total 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. 13. 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. 14. Leases and Subscriptions Payable In the government-wide financial statements, leases and subscriptions payable are reported as liabilities in the Statement of Net Position. In the governmental fund financial statements, the present value of lease and subscription payments are reported as other financing sources. 15. Net Position Net position represents the difference between assets plus deferred outflows of resources less liabilities and deferred inflows of resources. The County reports the following subcategories of net position:  Net investment in capital assets – represents the difference between capital assets less accumulated depreciation and amortization, deferred outflows of resources, and the outstanding balance of debt (excluding unexpended proceeds).  Restricted net positions are reported as restricted when there are limitations imposed on their use either through enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors, laws, or regulations of other governments. The following are major classes of restricted net positions:  Capital projects – Represents funds legally restricted by debt covenants for the acquisition, construction, or improvement of specified capital assets.  Debt service – Represents funds legally restricted by Oregon statute for payment of principal and interest on outstanding general obligation and limited tax bonds.  Public safety – Represents funds generated through voter approved property taxes for countywide law enforcement services, patrol services, and emergency call center operations.  Road – Represents funds generated by fuel tax and related revenues legally restricted by Oregon statute for road and road related projects.  Health & welfare – Represents funds generated by grant revenue restricted to approved activities.  Unrestricted represents all other net positions that are not restricted and do not meet the definition of net investment in capital assets. -73- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 16. 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.  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 – 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. -74- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 17. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 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. 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 Balances/ Negative Net Position Negative fund balance is reported in one of the Internal Service Funds and two of the Special Revenue Funds:  Finance: $5,253  Justice Court: $556  Joint Houselessness Task Force: $12,448 Negative net position is reported in seven of the Internal Service Funds:  Facilities: $1,295,945  Administrative Services: $1,311,154  Board of County Commissioners: $205,434  Finance: $353,686  Legal: $1,007,379  Human Resources: $1,189,458  Information Technology: $2,195,244 -75- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) For each of these funds, the negative net position balances are due to (1) noncurrent liabilities for compensated absences, (2) total OPEB liability and (3) net pension liability and deferred inflows of resources related to the defined benefit plan. It will be necessary to expend future resources to satisfy the noncurrent liabilities. The amortization in future periods of the deferred inflows of resources will increase net position. NOTE 3 – DETAILED NOTES ON ALL FUNDS A. Cash and Cash Equivalents Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the County’s deposits may not be returned. State statutes require that all bank deposits in excess of the FDIC or FSLIC insurance amounts be collateralized through the Oregon State Treasurer’s Public Funds Collateralization Program. This program provides a structure for specified depositories to participate in a shared liability collateral pool. Securities pledged by individual institutions may range from 10% to 110% of public fund deposits depending on the financial institution’s level of capitalization as determined by its federal regulatory authority. The securities pledged are designated as subject to the Pledge Agreement between the depository bank, custodian bank and Office of the State Treasurer (OST) and are held for the benefit of OST on behalf of the public depositors. The County’s funds were held by financial institutions that participated in the State Treasurer’s program and were in compliance with statutory requirements. At June 30, 2023, the County had the following bank balances: The amounts above include the County’s investments in certificates of deposit and money market funds, which are reported as investments on the Statement of Net Position. Insured (FDIC)250,941$ Collateralized by securities held by the pledging financial institution in the financial institution's name 10,791,569 Total 11,042,510$ -76- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) B. Investments As of June 30, 2023, the County had the following investments and maturities: 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 A1/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, 2023, the County’s investments in corporate bonds were rated A3 to AAA and its state and municipal securities were rated Aa3 to Aaa. 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. Investment Type Fair Value Federal agency securities 146,342,929$ 334 Corporate notes 37,920,230 487 Municipal bonds 41,616,601 494 Certificates of Deposit 1,177,212 401 Total fair value 227,056,972 Portfolio weighted average maturity 390 Accrued interest 1,071,394 Investments, at fair value; plus accrued interest 228,128,366$ Weighted Average Maturity (Days) -77- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) 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, $56,763,000 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, 2023, 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. 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, 2023, 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, 2023, was AA (S&P). The County’s participation in LGIP is voluntary. Weighted average maturity is 152 days. -78- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) 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, 2023, as follows: GASB 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. Reconciliation of deposits and investments to the Statement of Net Position and Statement of Net Position - Fiduciary Funds Total Deposits 34,738,005$ Total Investments, at fair value plus accrued interest 228,128,366 262,866,371$ Included in the following captions: Statement of Net Position Total Cash and Cash Equivalents 33,850,171$ Total Investments, at fair value plus accrued interest 222,295,387 Total Statement of Net Position 256,145,558 Statement of Net Position - Fiduciary Funds Total Cash and Equivalents 887,834 Total Investments, at fair value plus accrued interest 5,832,979 Total Fiduciary Funds 6,720,813 Total cash and cash equivalents and investments 262,866,371$ -79- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Federal Agency Securities, Corporate Notes, Municipal Bonds, and Certificates of Deposit are categorized as Level 2 based upon a matrix pricing technique that values securities based on their relationship to benchmark quoted prices. C. Receivables Summary of Receivables 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: As of June 30, 2023, $735,540, net of allowance for uncollectible amounts of $491,291, is due from unpaid health- services billings provided in the Health Services major fund. Accounts receivable for outstanding traffic fines and violations in the custodial fund have not been accrued and are considered uncollectible. Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs Total (Level 1)(Level 2)(Level 3) As of June 30, 2023 Federal Agency Securities 146,342,929$ -$ 146,342,929$ -$ Corporate Notes 37,920,230 - 37,920,230 - Municipal Bonds 41,616,601 - 41,616,601 - Certificates of Deposit 1,177,212 - 1,177,212 - Total assets 227,056,972$ -$ 227,056,972$ -$ Property Taxes Receivable Transient Room Taxes Receivable Accounts Receivable Lease Receivable Notes, Contracts, & Assessments Receivable Total Receivables General Fund 592,249$ -$ 923,090$ 394,639$ 390,769$ 2,300,747$ Sheriff's Office - - 445,060 - - 445,060 Countywide LED 496,888 - - - - 496,888 Rural LED 213,475 - - - - 213,475 Road - - 128,862 - 95,575 224,437 Road CIP - - 444,966 - - 444,966 Health Services - - 6,684,173 - - 6,684,173 Solid Waste - - 1,176,878 - - 1,176,878 Fair & Expo - - 138,256 - - 138,256 Nonmajor Gov't 181,355 1,496,668 1,301,827 1,479,659 27,567 4,487,076 Internal Service Funds - - 879,877 518,983 - 1,398,860 Total 1,483,967$ 1,496,668$ 12,122,989$ 2,393,281$ 513,911$ 18,010,816$ -80- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Notes, Contracts, and Assessments Receivable 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 6.5%. 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. As of June 30, 2023:  $242,632 was due from contracts from sales of real property  $48,137 was due from economic development loans, net of allowance for uncollectible amounts of $51,500  $127,567 was 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, 2023, $95,575 was due from local improvement district assessments. Lease Receivables At June 30, 2023, the County has ten lease receivables in which it is acting as lessor. Under GASB 87, an implicit interest rate is calculated for each individual lease using the internal rate of return method. The present value of the leases are aggregated on a fund basis. All funds record lessee receivables on the fund level Statement of Net Position (Balance Sheet for the governmental funds) and are rolled into the government-wide Statement of Net Position. -81- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Governmental Activities: 611,284$ 537,207$ -$ (75,763)$ 461,444$ 800,258 632,391 - (173,214) 459,177 2,793,042 177,187 1,949,057 (686,369) 1,439,875 36,332 7,395 - (7,395) - 132,431 18,989 - (18,989) - 16,981 8,264 - (8,264) - 10,476 - 10,476 - 10,476 73,668 44,947 - (29,762) 15,185 14,752 10,653 - (7,091) 3,562 14,456 10,505 - (6,943) 3,562 4,503,680$ 1,447,538$ 1,959,533$ (1,013,790)$ 2,393,281$ Building lease; interest at 0.387%, principal and interest of 18,918 monthly, lease terminated September 2022 Land lease; interest at 0.514%, principal and interest of 432 monthly, due 2025 Building lease; interest at 1.451%, principal and interest of 6,763 monthly, due 2029 Building lease; interest at 0.893%, principal and interest of 14,306 monthly, due 2026 Building lease; interest at 0.893%, principal and interest of 57,244 monthly, due 2025 Building lease; interest at 0.727%, principal and interest of 2,960 monthly, lease terminated September 2022 Original Amount Outstanding June 30, 2022 Increases Decreases Outstanding June 30, 2023 Land lease; interest at 0.514%, principal and interest of 731 monthly, due 2023 Building lease; interest at 0.727%, principal and interest of 2,391 monthly, due 2024 Building lease; interest at 0.624%, principal and interest of 825 monthly, due 2024 Building lease; interest at 0.624%, principal and interest of 825 monthly, due 2024 -82- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Future maturities are as follows: D. Deferred Outflow of Resources Deferred outflows, Debt 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 benefited. Deferred outflows, Net pension liability – Defined Benefit Pension and OPEB plans contributions made to OPERS during the year ended June 30, 2023, and other items related to the County defined benefit pension plans that have been classified as a deferred outflow of resources. Fiscal Year Principal Interest 2024 993,509$ 19,602$ 2025 1,002,879 10,331 2026 177,314 4,085 2027 84,024 2,629 2028 85,251 1,401 2029 50,304 244 Total 2,393,281$ 38,292$ Governmental Activities -83- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Deferred outflows, OPEB RHIA asset and County Plan liability – The contributions made to OPERS for its other post- employment RHIA component during the year ended June 30, 2023, and other items related to the County OPEB RHIA plan that have been classified as a deferred outflow of resources. Deferred Outflows of Resources Governmental Activities Business-Type Activities Total Deferred outflows - Refunding: County buildings (FF&C 2019 and FF&C 2021) 626,151$ 159,723$ 785,874$ Total deferred outflows - refunding 626,151 159,723 785,874 Deferred outflows - Defined Benefit Pension Plan: Contributions subsequent to the measurement date 16,148,089 403,041 16,551,130 Differences between expected and actual experience 5,296,558 132,197 5,428,755 Changes in proportionate share 12,051,456 300,794 12,352,250 Changes of assumptions 17,120,426 427,310 17,547,736 Differences between employer contribution and employer's proportionate share of system contributions 5,921,529 147,796 6,069,325 Total deferred outflows - pension 56,538,058 1,411,138 57,949,196 Deferred outflows - OPEB County Plan: Differences between expected and actual experience 2,370,333 59,162 2,429,495 Changes of assumption or other inputs 2,319,347 57,889 2,377,236 Total deferred outflows - OPEB County Plan 4,689,680 117,051 4,806,731 Deferred outflows - OPEB RHIA: Contributions subsequent to the measurement date 10,689 267 10,956 Changes of assumptions or other inputs 12,655 316 12,971 Changes in proportionate share 129,217 3,225 132,442 Total deferred outflows - OPEB RHIA 152,561 3,808 156,369 Total deferred outflows of resources 62,006,450$ 1,691,720$ 63,698,170$ -84- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) E. Capital Assets Due to the implementation of GASB Statement No. 96, Subscription Based Information Technology Arrangements (SBITDAs), the June 30, 2022 balances of capital assets have been restated to include $645,601 of subscription assets, $350,993 related to governmental activities including $294,608 related to internal service funds. See Note 4I for additional information. June 30, 2022 Increases Decreases June 30, 2023 Governmental Activities: Capital assets, not being depreciated or amortized: Land 13,602,544$ -$ -$ 13,602,544$ Construction in progress 6,193,442 31,673,631 (4,008,209) 33,858,864 Total capital assets, not being depreciated or amortized 19,795,986 31,673,631 (4,008,209) 47,461,408 Capital assets, being depreciated or amortized: Right-to-use lease land 12,908 223,029 - 235,937 Buildings and improvements 102,625,479 608,832 (152,855) 103,081,456 Lease buildings 1,647,572 30,654 - 1,678,226 Land improvements 5,478,633 13,080 - 5,491,713 Equipment 33,899,926 3,777,953 (3,295,728) 34,382,151 Lease equipment 423,171 69,381 (40,718) 451,834 Vehicles 13,671,898 3,439,510 (329,514) 16,781,894 Lease vehicles - 65,436 - 65,436 Infrastructure 138,930,331 3,860,747 - 142,791,078 Lease infrastructure 476,110 869,953 (22,705) 1,323,358 Intangible assets 6,551,998 9,468 (64,525) 6,496,941 Subscription assets 350,993 1,867,514 - 2,218,507 Total capital assets, being depreciated or amortized 304,069,019 14,835,557 (3,906,045) 314,998,531 Accumulated depreciation and amortization: Right-to-use lease land (527) (9,508) - (10,035) Buildings and improvements (41,561,680) (2,317,563) 152,855 (43,726,388) Lease buildings (215,416) (227,002) - (442,418) Land improvements (3,786,533) (181,070) - (3,967,603) Equipment (22,253,689) (2,184,647) 3,288,775 (21,149,561) Lease equipment (130,007) (154,185) 40,718 (243,474) Vehicles (8,166,315) (1,624,094) 316,753 (9,473,656) Lease vehicles - (12,760) - (12,760) Infrastructure (81,784,885) (5,391,467) - (87,176,352) Lease infrastructure (108,812) (129,833) 22,705 (215,940) Intangible assets (4,866,732) (462,907) 64,525 (5,265,114) Subscription assets - (251,525) - (251,525) Total accumulated depreciation and amortization (162,874,596) (12,946,561) 3,886,331 (171,934,826) Total capital assets, being depreciated and amortized, net 141,194,423 1,888,996 (19,714) 143,063,705 Governmental activities capital assets, net 160,990,409$ 33,562,627$ (4,027,923)$ 190,525,113$ -85- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Depreciation and amortization expenses were charged to functions/programs of the primary government. Amortization expense for lease and subscription assets in governmental activities is recognized in the general government function. Amortization expense for lease and subscription assets in business-type activities is recognized in the programs. June 30, 2022 Increases Decreases June 30, 2023 Business-type activities: Capital assets, not being depreciated or amortized: Land 1,924,037$ -$ -$ 1,924,037$ Construction in progress 140,797 12,208,802 (6,417) 12,343,182 Total capital assets, not being depreciated or amortized 2,064,834 12,208,802 (6,417) 14,267,219 Capital assets, being depreciated or amortized: Buildings and improvements 32,501,587 5,319 (11,825) 32,495,081 Land improvements 49,011,664 44,694 (216,906) 48,839,452 Equipment 9,190,879 649,551 (623,990) 9,216,440 Lease equipment 18,022 - - 18,022 Vehicles 609,855 - (19,675) 590,180 Intangible assets 123,595 - - 123,595 Total capital assets, being depreciated or amortized 91,455,602 699,564 (872,396) 91,282,770 Accumulated depreciation and amortization: Buildings and improvements (13,781,896) (722,726) 9,460 (14,495,162) Land improvements (30,387,383) (1,873,987) 215,077 (32,046,293) Equipment (6,098,063) (492,340) 593,135 (5,997,268) Lease equipment (3,713) (4,836) - (8,549) Vehicles (353,467) (40,058) 19,674 (373,851) Intangible assets (98,584) (8,758) - (107,342) Total accumulated depreciation and amortization (50,723,106) (3,142,705) 837,346 (53,028,465) Total capital assets, being depreciated and amortized, net 40,732,496 (2,443,141) (35,050) 38,254,305 Business-type activities capital assets, net 42,797,330$ 9,765,661$ (41,467)$ 52,521,524$ -86- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Depreciation and amortization activity for the year ended June 30, 2023, was as follows: F. Interfund Activity Interfund activity for the year ended June 30, 2023, was as follows: Governmental activities: General government 2,442,867$ Public safety 3,571,980 County roads 6,180,238 Health and welfare 380,987 12,576,072 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 370,489 Total depreciation and amortization expense - governmental activities 12,946,561$ Business-type activities: Solid Waste 2,388,140$ Fair & Expo Center 649,329 RV Park 105,236 Total depreciation and amortization expense - business-type activities 3,142,705$ Transfers In General Fund Sheriff's Office Road CIP Health Services Nonmajor Gov't Internal Service Fair & Expo Center RV Park Total Transfers Out General Fund -$ 70,000$ -$ 5,648,912$ 12,352,417$ 538,205$ -$ -$ 18,609,534$ Sheriff's Office - - - - 272,678 - - - 272,678 Road - - 9,778,721 - - - - - 9,778,721 Health Services 241,596 - - - 320,710 - - - 562,306 Solid Waste 13,962 - - - - - - - 13,962 Fair & Expo 10,777 - - - - - - - 10,777 Nonmajor Gov't 190,106 3,651,787 2,459,941 418,417 484,156 - 1,589,727 180,000 8,974,134 Internal Service Funds 345,932 - - - 4,380 - - - 350,312 Total 802,373$ 3,721,787$ 12,238,662$ 6,067,329$ 13,434,341$ 538,205$ 1,589,727$ 180,000$ 38,572,424$ -87- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) 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 to fund 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); 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. G. Noncurrent Liabilities 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, 2023, is $1,463,703,000 for general obligation bonds and $704,529,000 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, 2023, balances on direct borrowings related to governmental activities and business-type activities are $458,600 and $2,906,400, respectively. The direct borrowings are secured by the full faith and credit and taxing power of the County. Whereas the lender may exercise any remedy in the event of default, the financing agreement is not subject to acceleration. The County has no other direct borrowing arrangements, including no lines of credit. Full Faith & Credit Obligation and Limited Tax bonds are direct obligations and pledge the full faith and credit of the County. These are serial bonds with original terms ranging from 20 years to 30 years with increasing amounts of principal maturing each year. Full Faith & Credit Obligation, Limited Tax bonds and Notes currently outstanding are as follows: Balance at Purpose Interest Rates June 30, 2023 Bonds and Notes Bonds - Governmental activities 2.00% - 6.85%26,661,808$ Notes - Governmental activities 1.99% - 2.49%458,600 Bonds - Business-Type activities 1.68% - 4.00%21,163,192 Notes - Business-Type activities 1.68% - 2.49%2,906,400 51,190,000$ -88- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Debt Service Requirements Debt service requirements on the County bonds and notes as of June 30, 2023, are as follows: Principal Interest Principal Interest Fiscal Year 2024 3,204,935$ 967,670$ 225,954$ 8,606$ 2025 2,795,704 830,169 232,646 2,896 2026 3,630,414 722,992 - - 2027 3,862,240 561,443 - - 2028 3,144,066 386,267 - - 2029-2033 7,634,449 985,334 - - 2034-2038 2,390,000 332,327 - - Total 26,661,808$ 4,786,202$ 458,600$ 11,502$ Principal Interest Principal Interest Fiscal Year 2024 825,065$ 950,560$ 799,246$ 50,175$ 2025 859,296 919,152 814,254 34,998 2026 889,586 886,176 642,700 21,839 2027 927,760 851,891 650,200 10,784 2028 960,934 815,811 - - 2029-2033 5,415,551 3,477,962 - - 2034-2038 4,960,000 2,349,250 - - 2039-2043 6,325,000 979,500 - - Total 21,163,192$ 11,230,302$ 2,906,400$ 117,796$ Bonds Bonds Notes from Direct Borrowings Governmental Activities Notes from Direct Borrowings Business-Type Activities -89- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Debt Issuance During August 2022, the County entered into Full Faith and Credit Financing Agreement, Series 2022 for the remodel of Negus Transfer Station. Bond proceeds totaled $21,411,848, par amount of $18,220,000, true interest costs of 3.3%, and maturity date of June 30, 2043. County contributions included $95,180 for underwriter’s discount and $116,668 for costs of issuance. Changes in Non-Current Liabilities Changes in non-current liabilities, other than those for Other Post-Employment Benefits and Net Pension Liability, for the year ended June 30, 2023, are as follows: June 30, 2022 Increases Decreases June 30, 2023 Due Within One Year Governmental activities: Claims Internal service funds 6,468,837$ 26,751,407$ (25,256,708)$ 7,963,536$ 4,796,077$ Lease payable Governmental funds 2,095,884 1,258,453 (535,361) 2,818,976 398,779 Internal service funds 31,483 - (15,385) 16,098 10,201 Subscription liabilities Governmental funds 1,303,428 1,855,136 (2,078,766) 1,079,798 165,411 Internal service funds 306,986 3,674 (112,476) 198,184 79,068 Pension obligation bonds 6,870,000 - (1,040,000) 5,830,000 1,170,000 Full faith & credit obligations 22,940,492 - (2,108,684) 20,831,808 2,034,935 Unamortized prem / (disc)774,189 - (114,493) 659,696 114,492 Direct borrowings 680,093 - (221,493) 458,600 225,954 Compensated absences Governmental funds 10,362,826 12,786,630 (12,244,689) 10,904,767 10,032,386 Internal service funds 1,073,615 1,163,402 (1,013,985) 1,223,032 1,125,189 52,907,833$ 43,818,702$ (44,742,040)$ 51,984,495$ 20,152,492$ Business-type activities: Lease payable 14,346$ -$ (4,776)$ 9,570$ 4,717$ Full faith & credit obligations 3,214,508 18,220,000 (271,316) 21,163,192 825,065 Unamortized prem / (disc)222,123 2,986,855 (140,377) 3,068,601 183,201 Direct borrowings 3,691,507 - (785,107) 2,906,400 799,246 Compensated absences 368,876 351,683 (322,525) 398,034 366,191 Landfill closure and postclosure 12,288,086 1,646,260 - 13,934,346 - 19,799,446$ 23,204,798$ (1,524,101)$ 41,480,143$ 2,178,420$ -90- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) During FY 2023, paid compensated leave was as follows: The claims liability is reported in two of the County’s internal service funds, Insurance and Health Benefits. 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 2023, Sheriff, Health Services, General Fund and sub funds, Internal Service Funds, DC 9-1-1 and Road provided 40%, 28%, 13%, 7%, 5% and 4%, respectively. The remaining 3% 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. Pension and Other Postemployment Benefits Liabilities The General Fund, Sheriff, Road, Health Services, ARPA, other governmental funds and internal service funds are typically used to liquidate pension and other postemployment benefits liabilities. See Note 4C – Participation in Public Employees Retirement System and Note 4D – Other Post-Employment Benefits for additional information. Health Services 4,167,047$ Sheriff's Office 3,395,521 General Fund 1,328,604 Internal Service Funds 1,013,985 Deschutes County 9-1-1 756,122 Road 663,388 Juvenile Community Justice 641,478 Community Development 623,774 Adult Parole & Probation 448,631 Enterprise Funds 322,525 Other Special Revenue Funds 220,124 Total 13,581,199$ -91- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Leases Payable The County is committed under various leases for buildings, equipment, infrastructure (9-1-1 radio towers) and land. As of June 30, 2023, the County has 82 financing leases in which it is acting as the Lessee. Under GASB 87, an implicit rate is calculated for each individual lease using the internal rate of return method. That method measures cash flow, beginning fair value, and projected ending fair value of the underlying asset. The present value of leases is aggregated on a fund basis. For governmental funds, lessee leases are only presented in the Government-Wide Statement of Net Position. For proprietary funds, lessee leases are presented in the Proprietary Funds Statement of Net Position and in the Government-Wide Statement of Net Position. The total expended for such leases for the fiscal year ended June 30, 2023, was approximately $485,000. The future minimum lease payments for these leases are as follows: Principal Payments Interest Payments Total Payments Fiscal Year 2024 408,980$ 51,869$ 460,849$ 2025 349,235 47,454 396,689 2026 319,807 43,551 363,358 2027 260,021 40,104 300,125 2028 231,063 37,429 268,492 2029 - 2033 474,946 155,348 630,294 2034 - 2038 299,912 111,824 411,736 2039 - 2043 277,230 58,755 335,985 2044 - 2048 213,880 15,732 229,612 2,835,074$ 562,066$ 3,397,140$ Principal Payments Interest Payments Total Payments Fiscal Year 2024 4,717$ 118$ 4,835$ 2025 3,689 56 3,745 2026 1,164 12 1,176 9,570$ 186$ 9,756$ Governmental Activities Business-Type Activities -92- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Subscription Liabilities The County has Subscription-Based Information Technology Arrangements (SBITAs) with the noncancellable right to use software provided by vendors. As of June 30, 2023, the County has nine agreements in which these right-to-use assets are reported. Under GASB 96, an implicit rate is calculated for each individual arrangement using the internal rate of return method. That method measures cash flow, beginning fair value, and projected ending fair value of the underlying asset. The present value of these SBITAs is aggregated on a fund basis. For governmental funds, SBITAs are only presented in the Government-Wide Statement of Net Position. For proprietary funds, SBITAs are presented in the Proprietary Funds Statement of Net Position and in the Government-Wide Statement of Net Position. The total expended for these software arrangements for the fiscal year ended June 30, 2023, was approximately $337,000. The future minimum lease payments for these leases are as follows: Hospital Facilities Authority of Deschutes County Conduit Financing On December 26, 1988, the County created the Hospital Facilities Authority of Deschutes County, Oregon (the Authority). The Authority issues hospital revenue bonds for construction and improvements to health facilities in Deschutes County. The proceeds of these bonds were used by health care facilities to finance various capital projects and refund outstanding bonds. The debt has not been recognized as a liability of the County or the Authority because the bonds are secured solely by the provisions of the bond indenture and payments are made by the health care facilities. The obligors have pledged the gross receivables of St. Charles Health System, Inc. The bonds shall not be payable from a charge upon any fund or asset, nor shall the County or the Authority be subject to any liability. No holder or holders of the bonds shall ever have the right to exercise the taxing power of the County to pay the bonds or the interest, nor to enforce payment against any property of the County. Upon completion of the project, the assets constructed or purchased are owned by the respective health care facility. Since neither the County nor the Authority own any assets or assume any liabilities associated with the repayment, there is no balance sheet disclosure or recognition of revenues within the County’s financial statements. Principal Payments Interest Payments Total Payments Fiscal Year 2024 244,479$ 41,049$ 285,528$ 2025 229,839 33,587 263,426 2026 236,985 26,441 263,426 2027 182,677 19,069 201,746 2028 188,824 12,922 201,746 2029 195,178 6,568 201,746 1,277,982$ 139,636$ 1,417,618$ Governmental Activities -93- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) A summary of the Authorities conduit debt is as follows: H. Deferred Inflow of Resources On the governmental funds balance sheet, unavailable revenues are reported as deferred inflows of resources. 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: Obligor Debt Issue June 30, 2023 St. Charles Health System, Inc. The Authority Hospital Revenue Bonds Series 2016A 94,210,000$ St. Charles Health System, Inc. The Authority Hospital Revenue Bonds Series 2020A 48,605,000 St. Charles Health System, Inc. The Authority Hospital Revenue Bonds Series 2022A 37,630,000 St. Charles Health System, Inc. The Authority Hospital Revenue Bonds Series 2022B 37,630,000 218,075,000$ Deferred Inflows of Resources Property Taxes Special Assessments Services Provided Contracts of Sale Leases Total General Fund 536,627$ -$ -$ 343,112$ 379,344$ 1,259,083$ Sheriff's Office - - 43,358 - - 43,358 Countywide LED 451,130 - - - - 451,130 Rural LED 193,841 - - - - 193,841 Road - 95,575 1,363 - - 96,938 Health Services - - 1,081,124 - - 1,081,124 Nonmajor funds 165,330 - 23,141 - 1,436,857 1,625,328 Total 1,346,928$ 95,575$ 1,148,986$ 343,112$ 1,816,201$ 4,750,802$ -94- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) On the Statement of Net Position, an acquisition of net assets applicable to a future reporting period, is reported as deferred inflows of resources. At the end of the current fiscal year, these balances related to the County’s defined benefit pension, other post-employment benefits (OPEB) plans, and leases: Deferred Inflows of Resources Governmental Activities Business-Type Activities Total Deferred inflows - Pension Plan: Differences between expected and actual experience 680,448$ 16,984$ 697,432$ Changes in assumptions 156,412 3,904 160,316 Changes in proportionate share 1,351,571 33,734 1,385,305 Net difference between projected and actual earnings on investments 19,507,302 486,884 19,994,186 Differences between employer contributions and employer's proportionate share of system contributions 12,390,321 309,251 12,699,572 Total deferred inflows - Pension Plan 34,086,054 850,757 34,936,811 Deferred inflows - OPEB County Plan: Differences between expected and actual experience 11,667,097 291,200 11,958,297 Changes of assumption or other inputs 8,141,923 203,214 8,345,137 Total deferred inflows - OPEB County Plan 19,809,020 494,414 20,303,434 Deferred inflows - OPEB RHIA: Differences between expected and actual experience 43,799 1,094 44,893 Changes of assumptions or other inputs 53,875 1,344 55,219 Net difference between projected and actual earnings on investments 123,261 3,076 126,337 Total deferred inflows - OPEB RHIA 220,935 5,514 226,449 Deferred inflows - Lease resources 2,319,529 - 2,319,529 Total deferred inflows of resources 56,435,538$ 1,350,685$ 57,786,223$ -95- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) I. 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. Major Capital Projects Fund General Fund Countywide LED Rural LED Road Health Services ARPA Road CIP Other Funds Total Fund Balances: Nonspendable: Long-term notes receivable 46,213$ -$ -$ -$ -$ -$ -$ -$ 46,213$ Inventory - - - 2,653,108 - - - - 2,653,108 Total Nonspendable 46,213 - - 2,653,108 - - - - 2,699,321 Restricted to: Public safety - 9,127,893 1,411,659 - - - - 15,885,211 26,424,763 Economic development - - - - - - - 6,650,975 6,650,975 Health services - - - - 30,164,866 - - 5,153,967 35,318,833 General government - - - - - - - 12,231,023 12,231,023 Marketing & promotion - - - - - - - 192,513 192,513 Law library - - - - - - - 106,508 106,508 Park development and rangeland - - - - - - - 2,479,175 2,479,175 Technology improvements - - - - - - - 448,675 448,675 Road improvement/maintenance - - - 12,823,575 - - 22,594,529 4,628,911 40,047,015 Total Restricted - 9,127,893 1,411,659 12,823,575 30,164,866 - 22,594,529 47,776,958 123,899,480 Committed to: Economic development 325,336 - - - - - - 4,527,409 4,852,745 County reserves - - - - - 3,698 - - 3,698 Health services - - - - - - - 55,384 55,384 Debt service - - - - - - - 449,066 449,066 Communication systems - - - - - - - 267,636 267,636 Expansion of facilities 5,373,652 - - - - - - 5,866,734 11,240,386 Total Committed 5,698,988 - - - - 3,698 - 11,166,229 16,868,915 Assigned to: Public safety 1,475,483 - - - - - - - 1,475,483 General government 4,129,734 - - - - - - - 4,129,734 Technology improvements 1,820,307 - - - - - - - 1,820,307 Fleet repair & replacement 2,149,696 - - - - - - - 2,149,696 Total Assigned 9,575,220 - - - - - - - 9,575,220 Unassigned:13,426,082 - - - - - - (13,004) 13,413,078 Total Fund Balance 28,746,503$ 9,127,893$ 1,411,659$ 15,476,683$ 30,164,866$ 3,698$ 22,594,529$ 58,930,183$ 166,456,014$ Major Special Revenue Funds -96- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 3 – DETAILED NOTES ON ALL FUNDS (Continued) Countywide Law Enforcement District (District #1), Rural Law Enforcement District (District #2) and Deschutes County 9-1-1 County Service District are each special revenue funds funded through voter approved property taxes for their specific purposes. Fund balances, restricted in District #1 and District #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 fiscal year 2024 and beyond. 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. J. 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 27th Street, and four transfer and recycle stations located throughout the County. The accumulation of resources that will be required for the closure and post-closure costs associated with the sanitary landfill are also accounted for in the Solid Waste Fund.  The Fair & Expo Center fund is used to account for operations of the County’s Fair & Expo Center, including the annual county fair.  The RV Park fund is used to account for the operations of the County’s Recreational Vehicle Park, located in Redmond, Oregon. -97- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 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. 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, 2023, of $2,398,489. The Health Benefits fund, which accounts for medical and dental insurance programs, is reporting a net position of $5,852,182 as of June 30, 2023, and represents 24% of FY 2023 claims expense. Changes in the claim liabilities are as follows: Insurance Fund Health Benefits Fund Total Claims payable, June 30, 2021 8,240,559$ 528,149$ 8,768,708$ FY 2022 claims expense 534,591 23,365,426 23,900,017 FY 2022 claims paid (3,335,359) (22,864,529) (26,199,888) Claims payable, June 30, 2022 5,439,791 1,029,046 6,468,837 FY 2023 claims expense 2,674,265 24,077,142 26,751,407 FY 2023 claims paid (1,779,138) (23,477,570) (25,256,708) Claims payable, June 30, 2023 6,334,918$ 1,628,618$ 7,963,536$ -98- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) B. Contingent Liabilities and Commitments The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. Claims covered by the County’s self-insurance are reviewed and losses are accrued based on the judgment of County management. According to County management, based on advice of legal counsel with respect to such litigation and claims, ultimate disposition of these matters will not have a material adverse effect on the financial position or results of County operations. 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, 2023, the County had no material commitments outstanding. 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: https://www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx. -99- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Benefits Provided Under the Programs Chapter 238-Tier One and Tier Two Chapter 238A-OPSRP-DB Pension Benefits The OPERS retirement allowance is payable monthly for life. The allowance may be selected from 13 retirement benefit options that are actuarially equivalent to the base benefit. These options include survivorship benefits and lump-sum refunds. The basic benefit is based on years of service and final average salary. A percentage (2.0 percent for Police and Fire employees, 1.67 percent for General Service employees) is multiplied by the number of years of service and the final average salary. Benefits may also be calculated under a formula plus an annuity (for members who were contributing before August 21, 1981,) or a money match computation if a greater benefit results. Monthly payments must be a minimum of $200 per month or the member will receive a lump-sum payment of the actuarial equivalent of benefits to which he or she is entitled. Under Senate Bill 1049, passed during the 2019 legislative session, the salary included in the determination of final average salary will be limited for all members beginning in 2021. The limit will be equal to $197,730 in 2021, and will be indexed with inflation in later years. The ORS 238A Defined Benefit Pension Program provides benefits to members hired on or after August 29, 2003. This portion of the OPSRP provides a life pension funded by employer contributions. Benefits are calculated with the following formula for members who attain normal retirement age: Police and fire: 1.8 percent is multiplied by the number of years of service and the final average salary. Normal retirement age for police and fire 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. Under Senate Bill 1049, passed during the 2019 legislative session, the salary included in the determination of final average salary will be limited for all members beginning in 2021. The limit will be equal to $197,730 in 2021, and will be indexed with inflation each year. 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. Disability Benefits A member with 10 or more years of creditable service who becomes disabled from other than duty- connected causes may receive a non-duty disability benefit. A disability resulting from a job-incurred injury or illness qualifies a member (including OPERS judge members) for disability benefits regardless of the length of OPERS-covered service. Upon qualifying for either a non-duty or duty disability, service time is computed to age 58 (55 for Police and Fire members) when determining the monthly benefit. A member who has accrued 10 or more years of retirement credits before the member becomes disabled or a member who becomes disabled due to job-related injury shall receive a disability benefit of 45 percent of the member’s salary determined as the last full month of employment before the disability occurred. -100- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Chapter 238-Tier One and Tier Two Chapter 238A-OPSRP-DB Benefit Changes after Retirement Members may choose to continue participation in a variable account after retiring and may experience annual benefit fluctuations due to changes in the fair value of the underlying global equity investments of that account. No ability to change. Cost of Living Adjustments Under ORS 238.360, monthly benefits are adjusted annually through cost-of-living changes (COLA). The COLA is capped at 2.0 percent. Under ORS 238.360, monthly benefits are adjusted annually through cost-of-living changes (COLA). The COLA is capped at 2.0 percent. 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 Post-Employment Benefit Plans. Ultimate authority for setting and changing the laws governing contributions rests with the Oregon legislature. Employer contribution rates during the period were based on the December 31, 2019, actuarial valuation, which became effective July 1, 2021. 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, 2023, were $16,551,130, 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, 2023, were: Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions As of June 30, 2023, the County reported a liability of $111,836,403 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2020. 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. Chapter 238 - Tier One and Tier Two Chapter 238A - OPSRP-DB General Service 20.03%17.00% Police and Fire 27.16%21.79% -101- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Rates of every employer have at least two major components: Normal Costs: 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. Unfunded Actuarial Liability Rate (UAL): If system assets are less than the actuarial liability, a 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, 2023 (measurement date of June 30, 2022), the County’s proportion was 0.73038373 percent, which was an increase of 9.55% from its proportion presented on June 30, 2022 (measurement date of June 30, 2021). -102- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) For the year ended June 30, 2023, the County recognized a pension expense of $19,349,690. At June 30, 2023, the County reports deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The County’s contributions made subsequent to the measurement date will be recognized in the County’s pension expense in the following year. The net amount of the County’s remaining deferred outflows of resources and deferred inflows of resources that will be recognized in the County’s pension expense in the subsequent five years in the aggregate are shown in the table below. Actuarial Assumptions The employer contribution rates, effective July 1, 2021, through June 30, 2023, were set using the entry age normal actuarial cost method. For the Tier One/ Tier Two component of the OPERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), and (2) an amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 22 years. Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 5,428,755$ 697,432$ Changes of assumptions 17,547,736 160,316 Net difference between projected and actual earnings on investments - 19,994,186 Changes in proportionate share 12,352,250 1,385,305 Contributions made to the plan subsequent to measurement date 16,551,130 - Differences between employer contribution and employer's proportionate share of system contributions 6,069,325 12,699,572 57,949,196$ 34,936,811$ Net Deferred Inflow of Resources 23,012,385$ Less: Contributions Made Subsequent to Measurement Date 16,551,130 6,461,255$ 1st Fiscal Year - Fiscal Year 2024 3,788,749$ 2nd Fiscal Year - Fiscal Year 2025 706,658 3rd Fiscal Year - Fiscal Year 2026 (7,235,180) 4th Fiscal Year - Fiscal Year 2027 9,318,149 5th Fiscal Year - Fiscal Year 2028 (117,121) Total 6,461,255$ -103- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) 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, 2020, actuarial valuation are shown below: 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, 2020. Valuation Date December 31, 2020 Measurement Date June 30, 2022 Experience Study 2020, published July 20, 2021 Actuarial assumptions: Actuarial cost method Entry Age Normal Inflation rate 2.40 percent Long-term expected rate of return 6.90 percent Discount rate 6.90 percent Projected salary increases 3.40 percent Cost-of-living adjustments (COLA) Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in accordance with Moro Decision; blend based on service. Mortality Healthy retirees and beneficiaries: Pub-2010 Healthy Retiree, sex distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Active members: Pub-2010 Employee, sex distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. Disabled retirees: Pub-2010 Disable Retiree, sex distinct, generational with Unisex, Social Security Data Scale, with job category adjustments and set-backs as described in the valuation. -104- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) 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. The target allocation and best estimates of arithmetic real rates of return for each major class are summarized in the following table: * Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement Fund, revised as of June 2, 2021. Discount Rate The discount rate used to measure the total pension liability was 6.90 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. Asset Class Target Allocation 20-Year Annualized Geometric Mean Global Equity 30.62%5.85% Private Equity 25.50%7.71% Core Fixed Income 23.75%2.73% Real Estate 12.25%5.66% Master Limited Partnerships 0.75%5.71% Infrastructure 1.50%6.26% Commodities 0.63%3.10% Hedge Fund of Funds - Multistrategy 1.25%5.11% Hedge Fund Equity - Hedge 0.63%5.31% Hedge Fund - Macro 5.62%5.06% US Cash -2.50%1.76% Portfolio, net of investment expenses 100.00%6.31% Assumed Inflation, mean 2.40% -105- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) 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 6.90 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 (5.90 percent) or 1-percentage point higher (7.90 percent) than the current rate: Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued OPERS financial report that can be found at http://www.oregon.gov/pers. OPSRP Individual Account Program The defined contribution pension plan (called the Individual Account Program or IAP) is provided to all members or their beneficiaries who are OPERS or OPSRP eligible. State statutes require covered employees to contribute 6 percent of their annual covered salary to the IAP plan effective January 1, 2004. Deschutes County has elected to pay all of the employees’ required IAP contributions. Although OPERS members retain their existing OPERS account, all current member contributions are deposited into the member’s IAP account. The liability outstanding at June 30, 2023 was $467,466 for the amount associated with the final year-end payroll and is included in the net pension liability in the Statement of Net Position. The IAP member becomes vested on the date the employee account is established or on the date when the rollover account was established. If the employer makes optional employer contributions for a member, the member becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active member becomes disabled, or the date the active member dies. D. Other Post-Employment Benefits (OPEB) The other post-employment benefits for the County includes two separate plans to provide certain healthcare benefits to retirees. The first is a multi-employer, cost-sharing, defined benefit, other postemployment benefit plan administered by the Oregon Public Employees Retirement System (OPERS) known as the Retirement Health Insurance Account (RHIA). The second is a single-employer, defined benefit, post-employment healthcare plan administered by the County known as the County Plan. The RHIA plan reports a net OPEB asset, while the County Plan reports a total OPEB liability on the Statement of Net Position. 1% Decrease (5.90%) Discount Rate (6.90%) 1% Increase (7.90%) Proportionate share of Net Pension Liability 198,332,187$ 111,836,403$ 39,443,426$ -106- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) OPEB Activity and Balances for the Year Ended June 30, 2023 (RHIA & County Plan) Oregon Public Employees Retirement System – Retirement Health Insurance Account (RHIA) Plan Description Retirement Health Insurance Account (RHIA) is a cost-sharing, multiple-employer, defined benefit, other postemployment benefit plan administered by OPERS. As a member of OPERS, the County contributes to RHIA for each of its eligible employees. RHIA pays a monthly contribution (currently $60 per month) toward the cost of Medicare companion health insurance premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The Plan is closed to new entrants hired on or after August 29, 2003. OPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Oregon Public Employees Retirement System, PO Box 23700, Tigard, OR 97281-3700. The reports and other related schedules including plan assumptions, methods and plan provisions may also be found on the PERS website at https://www.oregon.gov/pers/EMP/Pages/GASB.aspx. RHIA County Plan Total Total OPEB Liability -$ 23,033,674$ 23,033,674$ Net OPEB Asset 1,656,597 - 1,656,597 Deferred Outflows Contributions subsequent to the measurement date 10,956 - 10,956 Changes in proportionate share 132,442 - 132,442 Differences between expected and actual experience - 2,429,495 2,429,495 Changes of assumption or other inputs 12,971 2,377,236 2,390,207 Deferred Outflows - Total 156,369 4,806,731 4,963,100 Deferred Inflows Net difference between projected and actual earnings on investments 126,337 - 126,337 Differences between expected and actual experience 44,893 11,958,297 12,003,190 Changes of assumption or other inputs 55,219 8,345,137 8,400,356 Deferred Inflows - Total 226,449 20,303,434 20,529,883 OPEB (Income) Expenses (106,532) 1,742,744 1,636,212 Category -107- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Contributions Participating public employers are contractually required to contribute to RHIA at a rate assessed each biennium by OPERS. For fiscal year 2023, 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 No. 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. The County paid $10,956 for RHIA during fiscal year 2023. Actuarial methods and assumptions for the RHIA plan mirror those of the PERS retirement system itself and can be found in Note 4C – Participation in Public Employees Retirement System. Healthcare cost trends are not applicable to this plan as the benefits are a fixed dollar amount per month. As presented, on June 30, 2023 (measurement date of June 30, 2022), the County’s proportionate share of the RHIA plan was .46620678%. The proportionate share for each employer participating in the Plan was determined by the actuaries based upon each employer’s contribution to the RHIA program during the measurement period. The County’s proportionate share declined from .53423581% in the prior measurement period. The following presents the County’s proportionate share of the net OPEB liability (asset) for the RHIA calculated using the discount rate of 6.90 percent, as well as what the County’s proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent) or 1- percentage point higher (7.90 percent) than the current rate: The RHIA plan assets are included in the PERS retirement system cash management efforts. Information related to the PERS Plan assets investment allocations are included in Note 4C – Participation in Public Employees Retirement System included in these financial statements. 1% Decrease Current Discount Rate 1% Increase (5.90%)(6.90%)(7.90%) (1,493,060)$ (1,656,597)$ (1,796,785)$ Proportionate share of net RHIA OPEB liability (asset) -108- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) 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 four years in the aggregate are shown in the table below: Other Post-Employment Benefits – Deschutes County Plan Plan Description The Deschutes County Retiree Health Plan is a single-employer defined benefit post-employment healthcare plan that provides medical benefits to eligible retired employees of Deschutes County and Deschutes County 9-1-1 Service District and their beneficiaries. Benefits Provided Eligibility for subsidized retiree health benefits requires retirement from the County with more than 15 years of service. Retirees with more than 15 years of service but less than 30 years of service receive a monthly County contribution towards their monthly insurance premiums until they are 65 years of age 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. Retirees with 30 or more years of service contribute $85 per month towards their medical insurance and $5 per month towards their dental insurance while the County covers the remainder of the premiums. Retirees with less than 15 years of service can continue their medical coverage but must pay 100% of the premium amount. Employees Covered by Benefit Terms At the time of most recent valuation, June 30, 2023, there were 1,063 active employees that could be eligible for the plan. As of that date, 72 retirees and surviving spouses were insured through the County Plan. The County pays benefits as they come due. As a result, there are no assets being accumulated by the County to pay for future benefits. Resources received in excess of paying benefits as they come due are set aside for the payment of future benefits. Subsequent Fiscal Years Deferred Outflow/ (Inflow) of Resources (prior to post-measurement date contributions) FY 2024 594$ FY 2025 (42,367) FY 2026 (79,724) FY 2027 40,461 Total (81,036)$ -109- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Actuarial Assumptions and Other Inputs The Total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: The discount rate used to measure the total OPEB liability is 3.86 percent. The County’s OPEB Plan is an unfunded plan; therefore, the discount rate was set to the rate of the tax-exempt, high-quality 20-year municipal bonds, as of the valuation date. 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. 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, 2023. Measurement date June 30, 2023 Valuation date June 30, 2023 Report date June 30, 2023 Actuarial cost method Entry age normal Discount rate 3.86% Inflation 2.40% Salary increases 3.40% Mortality Rates Based on SOA Mortality Tables Healthcare cost trend rate 7.4% Trending down to 4.14% over 52 years. Applies to calendar years. -110- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Changes in Total OPEB Liability Sensitivity of the Liability to Changes in the Discount Rate and Healthcare Cost Trend Rate Changes in the discount rate affect the measurement of the total OPEB liability. Lower discount rates produce a higher total OPEB liability and higher discount rates produce a lower total OPEB liability. The following presents the total OPEB liability of the plan calculated using the discount rate of 3.86%, as well as what the County's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.86%) or one percentage point higher (4.86%) than the current rate: Changes in healthcare trends also affect the measurement of the total OPEB liability. Lower healthcare trends produce a lower total OPEB liability and higher healthcare trends produce a higher total OPEB liability. The following presents the total OPEB liability of the plan, calculated using the healthcare cost trend rate of 7.40% and decreased to 4.14% over 52 years, as well as what the County's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (6.40%) or one percentage point higher (8.40%) than current healthcare cost trend rate: County Plan Balance at 6/30/2022 36,176,304$ Changes for the year: Service cost 2,517,527 Interest 824,089 Changes of benefit terms 747,321 Change in assumptions or other inputs (5,435,049) Differences between expected and actual experience (10,713,350) Benefit payments (457,726) Implicit subsidy credit (625,442) Net changes (13,142,630) Balance at 6/30/2023 23,033,674$ Category 1% Decrease Current Discount Rate 1% Increase (2.86%) (3.86%) (4.86%) Total OPEB Liability on June 30, 2023 24,956,254$ 23,033,674$ 21,223,469$ Current Health Care 1% Decrease Trend Rates 1% Increase (6.40%) (7.40%) (8.40%) Total OPEB Liability on June 30, 2023 20,193,335$ 23,033,674$ 26,414,551$ -111- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) 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: Expected Average Remaining Service Lives (EARSL) The effects on the total pension liability of (1) changes of economic and demographic assumptions or of other inputs and (2) differences between expected and actual experience are required to be included in pension expense in a systematic and rational manner over a closed period equal to the average of the expected remaining service lives of all employees that are provided with benefits through the pension plan (active employees and inactive employees), beginning in the current period. The expected average remaining service lives (EARSL) for the current period is 8.5 years. 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 $26,506,641 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 $1,413,720 and $1,042,965, respectively. The amount of closure and postclosure costs to recognize each year is based on engineering estimates of capacity remaining at the landfill. By estimating the capacity remaining at the landfill instead of calculating the capacity used, based on the cubic feet of material added during the year, the County is better able to recognize the benefit of natural compression occurring within the solid waste cells. Subsequent Fiscal Years Deferred Outflow/ (Inflow) of Resources (prior to post-measurement date contributions) FY 2024 (2,346,193)$ FY 2025 (2,346,193) FY 2026 (2,346,193) FY 2027 (2,346,193) FY 2028 (2,346,193) Remaining (3,765,738) Total (15,496,703)$ -112- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Through June 30, 2023, $16,171,459 has been recognized as expense and $2,739,715 has been paid, resulting in a Closure/ Post-Closure liability of $13,934,346 at June 30, 2023. Based on current estimated costs, an additional $10,834,878 will be recognized as closure and postclosure expense through 2029, the date the landfill is currently projected to be filled to capacity. For the past several years, the County has designated resources for future closure and postclosure care and it anticipates continuing to do so. The County meets the “Local Government Financial Test” which provides financial assurance as to the County’s ability to meet its financial obligations for closure and postclosure. F. Public-Private Partnership In April of 2023, the County entered a Public-Private Partnership (PPP) arrangement with Cascade Natural Gas Corporation (CNGC). The County currently owns and operates an active gas collection system at Knott Landfill, a solid waste facility. The Landfill Gas Sales Agreement allows for CNGC to expand the active gas collection system and connect the system to a renewable natural gas production facility in exchange for monthly payments based on the value of extracted gas. Some improvement cost made to the active gas collection system will be paid by CNGC and will be retained by the County at the end of the PPP term. No costs related to the collection system expansion were incurred as of June 30, 2023. The initial term of the agreement is 10 years from the “Commissioning Date” of the renewable natural gas production facility with the option to extend for 5-year increments. G. Tax Abatement As of June 30, 2023, five property tax abatement programs are administered as authorized by Oregon Revised Statutes: Nonprofit Low-Income Rental Housing (307.541) The Nonprofit Low-Income Rental Housing program is to encourage nonprofit organizations to help fill the need for low-income housing. The property must currently be in use as housing or may be land being held for that purpose. Qualifying nonprofit corporations must be exempt from federal income tax [Section 501(c)(3) or (4) of the Internal Revenue Code] and upon liquidation distribute remaining assets to other tax-exempt charitable organizations or the state of Oregon. When applying for the exemption, the nonprofit corporation must certify that the income level of each renter is at or below 60 percent of area median income which is determined by the State Housing Stability Council based on information from the U.S. Department of Housing and Urban Development. HB 3082 in 2015 amended the law to allow alternative definitions of low-income, up to 80 percent of area median income, for the purpose of renewing an existing application. Nonprofit Low-Income Rental Housing 307.541 Property for Low-income Rental 307.517 & 307.537 Enterprise Zone Businesses 285C.175 Construction in Process in an Enterprise Zone 285C.170 Solar Projects 2015 laws c. 571 (Note 3 following ORS 307.175) -113- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Property for Low-income Rental (307.517) The intent of the Property for Low-income Rental program is to assist in providing housing equity throughout the state and reduce homelessness. Newly constructed rental housing occupied by low-income persons or property held for a reasonably short period of time for future development as low-income rental housing is exempt from property taxes for 20 years if the property is:  Located in a city or county that adopts standards and guidelines to be used in administering applications for exemption. • Built after the city or county adopts the state statutes. • Approved by the city or county upon application.  For projects requesting an exemption after October 5, 2015, any additional criteria established by the city or county prior to the application.  Rented only to persons with income at or below 60 percent of area median income based on U.S. Department of Housing and Urban Development criteria. • Rented at rates that reflect the full property tax reduction. Legislation in 2015 (HB 2130) amended the law to allow cities or counties to establish reasonable maximum holding times for land designated for low-income housing development. The legislation also permitted cities or counties to elect additional qualifying criteria before granting the exemption. Legislation in 2019 (HB 2130) extended the sunset to June 30, 2029. Enterprise Zone Businesses (285C.175) The purpose of the Enterprise Zone Business program is to stimulate and protect economic success by providing tax incentives for employment, business, industry and commerce and by providing adequate levels of complementary assistance to community strategies for such interrelated goals as environmental protection, growth management and efficient infrastructure. Qualified real and personal property owned or leased and newly placed into service by a qualified business firm in an enterprise zone is exempt from property tax for three to five consecutive years. A new or expanding business can qualify if the business meets all of the conditions outlined in ORS 285C.135 and 285C.200, such as applying locally for authorization prior to construction, engaging in eligible business operations, entering into a “first source” hiring agreement with local publicly funded job training providers, and increasing the number of jobs in the enterprise zone by the greater of one additional job or 10 percent. To be exempt, the property owned or leased by the business must satisfy applicable timing, location, minimum cost, and other requirements described in ORS 285C.180. Property is disqualified if used for an ineligible activity, such as retail operations, or if the business firm substantially curtails operations or closes during the exemption period. When property becomes disqualified, previously exempt taxes must be repaid. -114- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Construction in Process in an Enterprise Zone (285C.170) The purpose of the Construction in Process in an Enterprise Zone program is to stimulate and protect economic success by providing tax incentives for employment, business, industry, and commerce and by providing adequate levels of complementary assistance to community strategies for such interrelated goals as environmental protection, growth management and efficient infrastructure (ORS 285C.055). Property undergoing construction, addition, modification, or installation is exempt from property taxation for up to two consecutive years provided that the property satisfies all the program requirements. This exemption is effectively an extension of expenditure 2.011, Commercial Buildings Under Construction, specifically to properties that are expected to qualify for a standard enterprise zone exemption when they are completed. If a property is exempt under both 2.011 and this expenditure, the combined duration of the exemptions cannot exceed two consecutive years. Solar Projects (2015 laws c. 571) The intent of the Solar Projects program is to provide tax relief and tax stability to utility scale solar production property owners and developers, which subsequently encourages the development of utility scale solar production (Note 3 following ORS 307.175). Property constituting a solar project located in an unincorporated county area is exempt from property taxes when an agreement has been made between the governing body of the county and the owner of the solar project. The agreement is limited to 20 consecutive years. The last day an agreement could be made was January 1, 2022. Tax Abatement For the fiscal year ended June 30, 2023, the County’s property tax revenues, including service districts, were abated by an estimated $455,598 under the following programs: For the fiscal year ended June 30, 2023, the County’s property tax revenues were not impacted by tax abatement programs administered by other governments. Tax Abatement Program Deschutes County Countywide Law Enforcement District Rual Law Enforcement District Extension and 4-H Service District 9-1-1 County Service District Taxes Abated Fiscal Year Ended June 30, 2023 Nonprofit Low-Income Rental Housing 20,032$ 17,265$ 1,601$ 373$ 5,950$ 45,221$ Property for Low-income Rental 21,822 18,808 4,059 405 6,482 51,576 Enterprise Zone Businesses 146,233 126,035 - 2,716 43,436 318,420 Construction in Process in an Enterprise Zone 1,378 1,187 - 26 409 3,000 Solar Projects 11,155 9,614 13,094 205 3,313 37,381 Total property tax abated 200,620$ 172,909$ 18,754$ 3,725$ 59,590$ 455,598$ -115- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) H. 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 Sub-funds of the General Fund include: 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. 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. 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. Property taxes used to fund Sheriff’s Office countywide public safety activities, including the operation of the adult jail. Property taxes used to fund Sheriff’s Office public safety in rural areas. State gas tax apportionment and Federal payments for building and maintaining public roads and highways. Resources from inter-fund transfers for Road’s Capital Improvement Plan. Fees for services, Federal and State grants for community wide health care, mental health services and counseling. Federal funds to be appropriated by the Board of County Commissioners in support of COVID-19 recovery. Road CIP Health Services American Rescue Plan Act (ARPA) Sheriff’s Office Countywide Law Enforcement District (District #1) Rural Law Enforcement District (District #2) Road -116- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Major Funds – Proprietary – Enterprise Nonmajor Governmental Funds Special Revenue Funds 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. 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. 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 Fees from developers and builders for upgrades and expansion of county road infrastructure. -117- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) Capital Projects Fund Debt Service Fund Nonmajor Proprietary Funds – Internal Service Funds Internal Service Funds Dog Control Licenses, fees and donations for animal control. Adult Parole and Charges for services and State Department of Corrections grant for County justice program. Statewide Transportation Improvement State grants for public transit services. Joint Houselessness Revenue from State for coordinated homeless response systems. 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. Deschutes County Road Agency U.S Forest Service Secure Rural School funds for road construction. 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. Campus Public Safety Resources from inter-fund transfers for public safety campus improvements. 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. 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. -118- Deschutes County, Oregon Notes to Financial Statements June 30, 2023 NOTE 4 – OTHER INFORMATION (Continued) I. Adoption of New Standards GASB 96 – Subscription Based Information Technology Arrangements As of July 1, 2022, the County adopted GASB Statement No. 96, Subscription Based Information Technology Arrangements (SBITAs). GASB 96 requires recognition of subscription assets and liabilities for certain software licensing agreements that previously were recorded as expenditures in the fiscal year the subscriptions licensure benefits were available. As a result of implementing GASB 96, the County has increased beginning balances for subscription assets and liabilities as of July 1, 2022. The beginning balance of subscription assets, included in capital assets, was $350,993 for Governmental Activities on the Statement of Net Position and includes $294,608 for internal service funds. The beginning balance for subscription liabilities was $350,993 for Governmental Activities on the Statement of Net Position and includes $294,608 for internal service funds. There was no impact to beginning fund balance with the implementation of GASB 96. J. Subsequent Event Lease Agreement On November 1, 2023, the County entered into a 118-month lease as lessee for the Health Services department’s use of a building at 2100 NE Wyatt Court in Bend, Oregon. An initial lease asset and lease payable is $2,755,107. The County is required to make monthly fixed payments of $21,625. Additionally, there are monthly lease payments of $4,400 which are reasonably certain. The lease has an interest rate of 3.828% based on the County’s incremental borrowing rate. The County has two extension options for this lease, each for 60 months. Issuance of Full Faith & Credit and Refunding Obligations On November 16, 2023, the County entered into Full Faith & Credit and Refunding Obligations, Series 2023 for the expansion of the Deschutes County Courthouse and refunding of Full Faith and Credit, Series 2013. Bond proceeds total $26,592,687, par amount of $24,095,000 ($18,700,000 for expansion and $5,395,000 for refunding), aggregate true interest costs of 3.86%, and maturity date of June 30, 2044. Cost of issuance is $126,286, underwriter’s discount is $42,431 and other uses of funds is $4,052. Future debt service requirements for Full Faith & Credit and Refunding Obligations, Series 2023 are as follows: Year of Maturity Principal Interest 2024 275,000$ 588,989$ 2025 825,000 1,191,000 2026 870,000 1,149,750 2027 915,000 1,106,250 2028 955,000 1,060,500 2029-2033 5,555,000 4,535,250 2034-2038 7,085,000 3,001,000 2039-2043 6,185,000 1,315,250 2044 1,430,000 71,500 Total 24,095,000$ 14,019,489$ -119- Required Supplementary Information For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -120- Fiscal Year 2015 2016 2017 2018 Proportion of the net pension liability (asset)0.61%0.64%0.62%0.62% Proportionate share of the net pension liability (asset)(13,913,943)$ 36,983,685$ 93,391,575$ 83,905,406$ Covered payroll 54,795,204$ 57,047,593$ 59,420,146$ 62,715,717$ Proportionate share of the net pension liability (asset) as a percentage of covered payroll -25.39%64.83%157.17%133.79% Plan fiduciary net position as a percentage of the total pension liability 103.59%91.88%80.53%83.12% *The schedule is required to show information for 10 years. However, until a full 10-year trend is compiled, the information presented is for those years which information is available. The amounts presented for each fiscal year were determined as of June 30 of the previous year. Deschutes County, Oregon Schedule of Proportionate Share of the Net Pension Liability (Asset) Oregon Public Employees Retirement System Last Nine Fiscal Years* -121- Fiscal Year 2019 2020 2021 2022 2023 0.63%0.66%0.64%0.67%0.73% 95,837,777$ 114,720,172$ 139,927,482$ 79,782,076$ 111,836,403$ 67,091,346$ 72,086,900$ 77,809,516$ 85,677,368$ 89,691,054$ 142.85%159.14%179.83%93.12%124.69% 82.07%80.23%75.79%87.57%84.55% -122- Fiscal Year 2015 2016 2017 2018 Contractually required contributions 5,258,200$ 5,785,558$ 5,971,466$ 8,534,158$ Contributions in relation to the contractually required contribution 5,258,200$ 5,785,558$ 5,971,466$ 8,534,158$ County's covered payroll 57,047,593$ 59,420,146$ 62,715,717$ 67,091,346$ Contributions as a percentage of covered payroll 9.22%9.74%9.52%12.72% Deschutes County, Oregon Schedule of Net Pension Liability (Asset) Employer Contributions Oregon Public Employees Retirement System Last Nine Fiscal Years* * The schedule is required to show information for 10 years. However, until a full 10-year trend is compiled, the information presented is for those years which information is available. The amounts presented for each fiscal year were determined as of June 30 of the previous year. -123- Fiscal Year 2019 2020 2021 2022 2023 9,182,373$ 14,075,061$ 13,817,681$ 14,841,836$ 16,551,130$ 9,182,373$ 14,075,061$ 13,817,681$ 14,841,836$ 16,551,130$ 72,086,900$ 77,809,516$ 85,677,368$ 89,691,054$ 100,826,363$ 12.74%18.09%16.13%16.55%16.42% -124- Fiscal Year 2018 2019 2020 2021 2022 2023 Service cost 1,756,755$ 1,339,312$ 1,386,188$ 2,350,138$ 2,432,393$ 2,517,527$ Interest 1,152,108 1,184,266 849,681 549,528 726,383 824,089 Changes of assumptions and other inputs - (11,017,853) - 6,445,394 - (15,401,078) Benefit payments (1,428,996) (1,079,974) (1,050,615) (1,092,103) (1,222,595) (1,083,168) Net change in OPEB liability 1,479,867 (9,574,249) 1,185,254 8,252,957 1,936,181 (13,142,630) Total OPEB liability - beginning 32,896,294 34,376,161 24,801,912 25,987,166 34,240,123 36,176,304 Total OPEB liability - ending 34,376,161$ 24,801,912$ 25,987,166$ 34,240,123$ 36,176,304$ 23,033,674$ Covered-employee payroll 65,409,667$ 69,941,231$ 72,389,174$ 85,677,368$ 89,691,054$ 100,826,363$ Total OPEB liability as a percentage of payroll 52.6% 35.5% 35.9% 40.0% 40.3% 22.8% Deschutes County, Oregon Schedule of Changes in the County's Total OPEB Liability Deschutes County Plan Last Six Fiscal Years* * The schedule is required to show information for 10 years. However, until a full 10-year trend is compiled, the information presented is for those years which information is available. -125- Deschutes County, Oregon Schedule of the Proportionate Share of the Net OPEB Liability (Asset) Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Seven Fiscal Years* Fiscal Year 2017 2018 2019 2020 2021 2022 2023 Proportion of the net OPEB liability (asset) 0.62% 0.61% 0.63% 0.66% 0.59% 0.53% 0.47% Proportionate share of the net OPEB liability (asset) 167,543$ (252,752)$ (707,109)$ (1,270,129)$ (1,204,828)$ (1,834,569)$ (1,656,597)$ Covered payroll 59,447,651$ 62,728,445$ 67,106,755$ 72,086,900$ 77,809,516$ 85,677,368$ 89,691,054$ Proportionate share of the net OPEB liability (asset) as a percentage of covered payroll 0.28% -0.40% -1.05% -1.76% -1.55% -2.14% -1.85% Plan fiduciary net position as a percentage of the total OPEB liability 94.15% 108.88% 123.99% 144.36% 150.07% 183.86% 194.66% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year were determined as of June 30 of the previous year. -126- Deschutes County, Oregon Schedule of Net OPEB Liability (Asset) Employer Contributions Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Seven Fiscal Years* Fiscal Year 2017 2018 2019 2020 2021 2022 2023 Contractually required contribution 301,513$ 304,046$ 325,768$ 42,226$ 14,294$ 11,491$ 10,956$ Contributions in relation to the contractually required contribution 301,513$ 304,046$ 325,768$ 42,226$ 14,294$ 11,491$ 10,956$ County's covered payroll 62,728,445$ 67,106,755$ 72,086,900$ 77,809,516$ 85,677,368$ 89,691,054$ 100,826,363$ Contributions as a percentage of covered payroll 0.48% 0.45% 0.45% 0.05% 0.02% 0.01% 0.01% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year were determined as of June 30 of the current year. -127- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 2,612,190$ 2,612,190$ 1,783,004$ (829,186)$ Intergovernmental 4,363,380 5,917,395 5,900,050 (17,345) Investment earnings 109,175 109,175 354,100 244,925 Licenses and permits 33,775 33,775 36,530 2,755 Taxes - property 34,800,173 34,800,173 34,961,150 160,977 Transfers in 260,000 260,000 260,439 439 Total revenues 42,178,693 43,732,708 43,295,273 (437,435) EXPENDITURES Current: General Government | Assessor 5,910,478 5,910,478 5,399,843 510,635 General Government | Board of Property Tax Appeal 87,177 92,179 82,489 9,690 General Government | Clerk and Elections 2,432,710 2,432,710 2,098,659 334,051 General Government | Non-Departmental 1,445,256 2,260,456 2,237,744 22,712 General Government | Property Management 508,359 508,359 418,432 89,927 General Government | Tax Office 905,262 905,262 834,177 71,085 Health and Welfare | Veterans' Services 780,264 809,389 758,902 50,487 Public Safety | District Attorney 10,153,207 10,979,838 10,906,690 73,148 Public Safety | Medical Examiner 438,702 438,702 320,659 118,043 Not allocated to organizational units: Contingency 11,474,637 11,239,637 - 11,239,637 Transfers out 21,018,359 21,131,416 20,150,477 980,939 Total expenditures 55,154,411 56,708,426 43,208,072 13,500,354 Net change in fund balances (12,975,718) (12,975,718) 87,201 13,062,919 Fund balances, budget basis - beginning of year 12,975,718 12,975,718 13,897,134 921,416 Fund balances, budget basis - end of year -$ -$ 13,984,335 13,984,335$ Unrealized gain (loss) on investments (558,253) Economic Development 371,549 Court Technology Reserve 184,746 Assessment, Taxation & Clerk Reserve 1,635,561 Project Development 2,598,398 General County Projects 1,413,163 General Capital Reserve 5,373,652 Community Justice Juvenile 1,475,483 Code Abatement 118,173 Vehicle Maintenance & Replacement 2,149,696 Fund balances, GAAP basis - end of year 28,746,503$ The notes to the required supplementary information are an integral part of this schedule. Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual General Fund For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -128- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 447,332$ 447,332$ 637,354$ 190,022$ Contributions and donations 48,115 48,115 90,439 42,324 Fines, forfeitures and penalties 154,500 154,500 203,851 49,351 Intergovernmental 55,277,473 56,064,473 53,441,381 (2,623,092) Investment earnings 1,526 1,526 24,596 23,070 Licenses and permits 250,000 250,000 425,263 175,263 Other 1,000 1,000 101,725 100,725 Transfers in 3,721,787 3,721,787 3,721,787 - Total revenues 59,901,733 60,688,733 58,646,396 (2,042,337) EXPENDITURES Current: Public safety 59,628,533 60,415,533 58,373,718 2,041,815 Not allocated to organizational units: Transfers out 273,200 273,200 272,678 522 Total expenditures 59,901,733 60,688,733 58,646,396 2,042,337 Net change in fund balances - - - - Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year -$ -$ -$ -$ Unrealized gain (loss) on investments (71,571) Revenue recognized on GAAP basis, not budgetary basis 114,929 Unavailable revenue - services provided (43,358) Fund balances, GAAP basis - end of year -$ The notes to the required supplementary information are an integral part of this schedule. Deschutes County, Oregon Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual Sheriff's Office For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -129- Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 89,119$ 89,119$ 283,971$ 194,852$ Taxes - property 30,612,049 30,612,049 30,701,745 89,696 Total revenues 30,701,168 30,701,168 30,985,716 284,548 EXPENDITURES Current: Public safety 37,363,328 37,363,328 35,271,648 2,091,680 Not allocated to organizational units: Contingency 6,516,361 6,516,361 - 6,516,361 Total expenditures 43,879,689 43,879,689 35,271,648 8,608,041 Net change in fund balances (13,178,521) (13,178,521) (4,285,932) 8,892,589 Fund balances, budget basis - beginning of year 13,178,521 13,178,521 13,814,132 635,611 Fund balances, budget basis - end of year -$ -$ 9,528,200 9,528,200$ Unrealized gain (loss) on investments (300,652) Expenditure recognized on GAAP basis, not budgetary basis (99,655) Fund balances, GAAP basis - end of year 9,127,893$ The notes to the required supplementary information are an integral part of this schedule. Deschutes County, Oregon Countywide Law Enforcement County District Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -130- Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 22,716$ 22,716$ 73,353$ 50,637$ Taxes - property 13,545,541 13,545,541 13,519,679 (25,862) Total revenues 13,568,257 13,568,257 13,593,032 24,775 EXPENDITURES Current: Public safety 14,295,988 14,295,988 13,558,980 737,008 Not allocated to organizational units: Contingency 508,289 508,289 - 508,289 Total expenditures 14,804,277 14,804,277 13,558,980 1,245,297 Net change in fund balances (1,236,020) (1,236,020) 34,052 1,270,072 Fund balances, budget basis - beginning of year 1,236,020 1,236,020 1,438,962 202,942 Fund balances, budget basis - end of year -$ -$ 1,473,014 1,473,014$ Unrealized gain (loss) on investments (46,081) Expenditure recognized on GAAP basis, not budgetary basis (15,274) Fund balances, GAAP basis - end of year 1,411,659$ The notes to the required supplementary information are an integral part of this schedule. Deschutes County, Oregon Rural Law Enforcement County District Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -131- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 1,809,300$ 1,809,300$ 1,675,788$ (133,512)$ Fines, forfeitures and penalties 5,000 5,000 5,295 295 Intergovernmental 23,019,380 23,019,380 23,905,209 885,829 Investment earnings 89,697 89,697 223,038 133,341 Loan repayments - - 3,924 3,924 Rentals 1,210 1,210 1,339 129 Transfers in 2,551,415 2,551,415 2,551,415 - Total revenues 27,476,002 27,476,002 28,366,008 890,006 EXPENDITURES Current: County roads 19,852,284 19,852,284 16,005,897 3,846,387 Not allocated to organizational units: Contingency 6,594,162 6,594,162 - 6,594,162 Transfers out 12,330,136 12,330,136 12,330,136 - Total expenditures 38,776,582 38,776,582 28,336,033 10,440,549 Net change in fund balances (11,300,580) (11,300,580) 29,975 11,330,555 Fund balances, budget basis - beginning of year 11,300,580 11,300,580 13,424,989 2,124,409 Fund balances, budget basis - end of year -$ -$ 13,454,964 13,454,964$ Unrealized gain (loss) on investments (534,451) Inventory 2,653,108 Unavailable revenue - services provided (96,938) Fund balances, GAAP basis - end of year 15,476,683$ The notes to the required supplementary information are an integral part of this schedule. Deschutes County, Oregon Road Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -132- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 3,402,165$ 3,402,165$ 4,613,612$ 1,211,447$ Contributions and donations 693,214 840,809 785,589 (55,220) Fines, forfeitures and penalties - - 8,000 8,000 Intergovernmental 43,033,454 53,693,144 55,533,705 1,840,561 Investment earnings 183,774 183,774 636,687 452,913 Licenses and permits 180,130 180,130 70,338 (109,792) Rentals 8,000 8,000 4,585 (3,415) Transfers in 8,500,248 8,500,248 6,412,771 (2,087,477) Total revenues 56,000,985 66,808,270 68,065,287 1,257,017 EXPENDITURES Current: Health and welfare 61,823,257 71,703,733 63,586,244 8,117,489 Not allocated to organizational units: Contingency 5,329,416 6,005,519 - 6,005,519 Transfers out 1,715,182 2,892,467 907,748 1,984,719 Total expenditures 68,867,855 80,601,719 64,493,992 16,107,727 Net change in fund balances (12,866,870) (13,793,449) 3,571,295 17,364,744 Fund balances, budget basis - beginning of year 25,668,617 25,668,617 28,696,311 3,027,694 Fund balances, budget basis - end of year 12,801,747$ 11,875,168$ 32,267,606 20,392,438$ Receivables not recognized on budgetary basis 244,249 Unrealized gain (loss) on investments (1,265,865) Unavailable revenue - services provided (1,081,124) Fund balances, GAAP basis - end of year 30,164,866$ The notes to the required supplementary information are an integral part of this schedule. Deschutes County, Oregon Health Services Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -133- Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental -$ -$ 14,662,784$ 14,662,784$ Investment earnings 105,186 105,186 293,106 187,920 Total revenues 105,186 105,186 14,955,890 14,850,704 EXPENDITURES Current: General government 23,129,361 23,129,361 14,662,782 8,466,579 Total expenditures 23,129,361 23,129,361 14,662,782 8,466,579 Net change in fund balances (23,024,175) (23,024,175) 293,108 23,317,283 Fund balances, budget basis - beginning of year 23,024,175 23,024,175 108,098 (22,916,077) Fund balances, budget basis - end of year -$ -$ 401,206 401,206$ Unrealized gain (loss) on investments (397,508) Fund balances, GAAP basis - end of year 3,698$ The notes to the required supplementary information are an integral part of this schedule. Deschutes County, Oregon American Rescue Plan Act Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -134- Deschutes County, Oregon Notes to Required Supplementary Information June 30, 2023 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.oregon.gov/pers. 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. -135- Other Supplementary Information For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -136-     -137- Combining and Individual Funds Statements and Schedules – Major Governmental Funds and Sub-Funds – General Fund For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -138- General Court Assessor, Fund Economic Technology Clerk and Tax Project Operations Development Reserve Reserve Development ASSETS Cash and cash equivalents 2,236,996$ 42,724$ 24,405$ 216,061$ 341,889$ 14,683,852 280,688 160,341 1,419,500 2,246,174 Taxes receivable 574,538 - - - - Accounts receivable 802,995 - - - 480 Notes and contracts receivable 100,000 48,137 - - 242,632 Lease receivable - - - - 394,639 Due from other funds 129,811 - - - - Total assets 18,528,192$ 371,549$ 184,746$ 1,635,561$ 3,225,814$ LIABILITIES Accounts payable and other current liabilities 1,262,253$ -$ -$ -$ 400$ Payroll liabilities 2,355,812 - - - - Deposits 23,154 - - - 4,560 Unearned revenue 840,355 - - - - Total liabilities 4,481,574 - - - 4,960 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 520,536 - - - - Unavailable revenue - contracts of sale 100,000 - - - 243,112 Unavailable revenue - leases - - - - 379,344 Total deferred inflows of resources 620,536 - - - 622,456 FUND BALANCES Nonspendable - 46,213 - - - Committed - 325,336 - - - Assigned - - 184,746 1,635,561 2,598,398 Unassigned 13,426,082 - - - - Total fund balances 13,426,082 371,549 184,746 1,635,561 2,598,398 Total liabilities, deferred inflows of resources and fund balances 18,528,192$ 371,549$ 184,746$ 1,635,561$ 3,225,814$ The notes to the financial statements are an integral part of this statement. Investments, at fair value; plus accrued interest June 30, 2023 Deschutes County, Oregon General Fund and Sub-Funds of General Fund Combining Balance Sheet -139- General General Community Vehicle County County Justice Code Maintenance & Projects Reserve Juvenile Abatement Replacement Total 199,725$ 709,871$ 214,745$ 15,611$ 284,637$ 4,286,664$ 1,312,177 4,663,781 1,410,193 102,562 1,870,038 28,149,306 17,711 - - - - 592,249 - - 119,615 - - 923,090 - - - - - 390,769 - - - - - 394,639 - - - - - 129,811 1,529,613$ 5,373,652$ 1,744,553$ 118,173$ 2,154,675$ 34,866,528$ 100,359$ -$ 116,031$ -$ 4,979$ 1,484,022$ - - 153,039 - - 2,508,851 - - - - - 27,714 - - - - - 840,355 100,359 - 269,070 - 4,979 4,860,942 16,091 - - - - 536,627 - - - - - 343,112 - - - - - 379,344 16,091 - - - - 1,259,083 - - - - - 46,213 - 5,373,652 - - - 5,698,988 1,413,163 - 1,475,483 118,173 2,149,696 9,575,220 - - - - - 13,426,082 1,413,163 5,373,652 1,475,483 118,173 2,149,696 28,746,503 1,529,613$ 5,373,652$ 1,744,553$ 118,173$ 2,154,675$ 34,866,528$ -140- General Court Assessment, Fund Economic Technology Clerk & Tax Project Operations Development Reserve Reserve Development REVENUES Taxes - property 34,961,150$ -$ -$ -$ -$ Licenses and permits 36,530 - - - - Fines, forfeitures and penalties - - - - - Investment earnings (losses) 294,703 10,289 1,815 20,682 36,244 Rents - - - - 726,303 Intergovernmental 5,900,050 1,925 - - - Charges for services 1,783,004 - - - 16,219 Contributions and donations - - - - - Payments on contracts of sale - - - - 846,098 Other - - - - - Total revenues 42,975,437 12,214 1,815 20,682 1,624,864 EXPENDITURES Current: General government 11,049,164 20,500 4,605 - 173,586 Public safety 11,227,350 - - - - Health and welfare 758,902 - - - - Capital outlay 77,018 - - - 574,495 Total expenditures 23,112,434 20,500 4,605 - 748,081 Excess (deficiency) of revenues over expenditures 19,863,003 (8,286) (2,790) 20,682 876,783 OTHER FINANCING SOURCES (USES) Proceeds from leases 54,838 - - - - Inter-fund: Transfers in 260,439 - - - - Transfers out (8,440,119) - - - (718,971) Intra-fund: Transfers in - - 32,000 120,000 - Transfers out (11,710,358) - - - - Total other financing sources (uses)(19,835,200) - 32,000 120,000 (718,971) Net change in fund balances 27,803 (8,286) 29,210 140,682 157,812 Fund balances - beginning of year 13,398,279 379,835 155,536 1,494,879 2,440,586 Fund balances - end of year 13,426,082$ 371,549$ 184,746$ 1,635,561$ 2,598,398$ The notes to the financial statements are an integral part of this statement. Deschutes County, Oregon General Fund and Sub-Funds of General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2023 -141- General General Community Vehicle County County Justice Code Maintenance & Projects Reserve Juvenile Abatement Replacement Total 1,090,858$ -$ -$ -$ -$ 36,052,008$ - - - - - 36,530 - - - 3,042 - 3,042 779 137,475 18,325 1,684 34,524 556,520 - - 90,228 - - 816,531 - - 787,593 - - 6,689,568 65,695 3,521,986 143,545 - - 5,530,449 - - 123 - - 123 - - - - - 846,098 - - - - 27,656 27,656 1,157,332 3,659,461 1,039,814 4,726 62,180 50,558,525 1,010,241 - - - 207,791 12,465,887 - - 7,390,878 - - 18,618,228 - - - - - 758,902 13,080 - 106,487 - 468,990 1,240,070 1,023,321 - 7,497,365 - 676,781 33,083,087 134,011 3,659,461 (6,457,551) 4,726 (614,601) 17,475,438 - - - - - 54,838 - - - - 541,934 802,373 - (9,450,444) - - - (18,609,534) 500,000 4,983,197 6,529,064 - 122,164 12,286,425 - (500,000) (76,067) - - (12,286,425) 500,000 (4,967,247) 6,452,997 - 664,098 (17,752,323) 634,011 (1,307,786) (4,554) 4,726 49,497 (276,885) 779,152 6,681,438 1,480,037 113,447 2,100,199 29,023,388 1,413,163$ 5,373,652$ 1,475,483$ 118,173$ 2,149,696$ 28,746,503$ -142- Deschutes County, Oregon Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 1,065$ 1,065$ 11,224$ 10,159$ Loan repayments 26,109 26,109 34,479 8,370 Total revenues 27,174 27,174 45,703 18,529 EXPENDITURES Current: General government 282,648 282,648 20,500 262,148 Total expenditures 282,648 282,648 20,500 262,148 Net change in fund balances (255,474) (255,474) 25,203 280,677 Fund balances, budget basis - beginning of year 255,474 255,474 308,799 53,325 Fund balances, budget basis - end of year -$ -$ 334,002 334,002$ Notes and contracts receivable recognized under GAAP 48,137 Unrealized gain (loss) on investments (10,590) Fund balances, GAAP basis - end of year 371,549$ Budgeted Amounts Economic Development (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 -143- Deschutes County, Oregon Court Technology Reserve (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 809$ 809$ 2,844$ 2,035$ Transfers in 32,000 32,000 32,000 - Total revenues 32,809 32,809 34,844 2,035 EXPENDITURES Current: General government 158,352 158,352 4,605 153,747 Total expenditures 158,352 158,352 4,605 153,747 Net change in fund balances (125,543) (125,543) 30,239 155,782 Fund balances, budget basis - beginning of year 125,543 125,543 160,556 35,013 Fund balances, budget basis - end of year -$ -$ 190,795 190,795$ Unrealized gain (loss) on investments (6,049) Fund balances, GAAP basis - end of year 184,746$ Budgeted Amounts -144- Deschutes County, Oregon Assessor, Clerk and Tax Reserve (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 8,441$ 8,441$ 25,988$ 17,547$ Transfers in 120,000 120,000 120,000 - Total revenues 128,441 128,441 145,988 17,547 EXPENDITURES Current: General government - - - - Total expenditures - - - - Net change in fund balances 128,441 128,441 145,988 17,547 Fund balances, budget basis - beginning of year 1,542,204 1,542,204 1,543,128 924 Fund balances, budget basis - end of year 1,670,645$ 1,670,645$ 1,689,116$ 18,471$ Unrealized gain (loss) on investments (53,555) Fund balances, GAAP basis - end of year 1,635,561$ Budgeted Amounts -145- Deschutes County, Oregon Project Development (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 12,000$ 12,000$ 16,218$ 4,218$ Investment earnings 12,845 12,845 41,757 28,912 Payments on contracts of sale 959,063 959,063 846,098 (112,965) Rentals 745,403 745,403 723,262 (22,141) Total revenues 1,729,311 1,729,311 1,627,335 (101,976) EXPENDITURES Current: General government 3,312,916 3,312,916 748,081 2,564,835 Not allocated to organizational units: Transfers out 1,021,496 1,021,496 718,971 302,525 Total expenditures 4,334,412 4,334,412 1,467,052 2,867,360 Net change in fund balances (2,605,101) (2,605,101) 160,283 2,765,384 Fund balances, budget basis - beginning of year 2,605,101 2,605,101 2,507,565 (97,536) Fund balances, budget basis - end of year -$ -$ 2,667,848 2,667,848$ Unrealized gain (loss) on investments (84,745) Lease receivable 394,639 Unavailable lease revenue (379,344) Fund balances, GAAP basis - end of year 2,598,398$ Budgeted Amounts -146- Deschutes County, Oregon General County Projects (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 58,000$ 58,000$ 65,696$ 7,696$ Investment earnings 5,695 5,695 22,390 16,695 Taxes - property 1,074,995 1,074,995 1,090,858 15,863 Transfers in 500,000 500,000 500,000 - Total revenues 1,638,690 1,638,690 1,678,944 40,254 EXPENDITURES Current: General government 2,064,369 2,064,369 1,023,321 1,041,048 Not allocated to organizational units: Contingency 208,167 208,167 - 208,167 Total expenditures 2,272,536 2,272,536 1,023,321 1,249,215 Net change in fund balances (633,846) (633,846) 655,623 1,289,469 Fund balances, budget basis - beginning of year 633,846 633,846 807,046 173,200 Fund balances, budget basis - end of year -$ -$ 1,462,669 1,462,669$ Unrealized gain (loss) on investments (49,506) Fund balances, GAAP basis - end of year 1,413,163$ Budgeted Amounts -147- Deschutes County, Oregon General County Reserve (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 3,521,987$ 3,521,987$ 3,521,987$ -$ Investment earnings 51,195 51,195 97,781 46,586 Transfers in 4,983,197 4,983,197 4,983,197 - Total revenues 8,556,379 8,556,379 8,602,965 46,586 EXPENDITURES Current: General government 5,506,783 5,506,783 - 5,506,783 Not allocated to organizational units: Transfers out 9,950,444 9,950,444 9,950,444 - Total expenditures 15,457,227 15,457,227 9,950,444 5,506,783 Net change in fund balances (6,900,848) (6,900,848) (1,347,479) 5,553,369 Fund balances, budget basis - beginning of year 6,900,848 6,900,848 6,897,088 (3,760) Fund balances, budget basis - end of year -$ -$ 5,549,609 5,549,609$ Unrealized gain (loss) on investments (175,957) Fund balances, GAAP basis - end of year 5,373,652$ Budgeted Amounts -148- Deschutes County, Oregon Community Justice - Juvenile (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 64,000$ 64,000$ 143,545$ 79,545$ Contributions and donations 6,500 6,500 123 (6,377) Intergovernmental 846,888 846,888 787,593 (59,295) Investment earnings 6,815 6,815 29,441 22,626 Rentals 86,000 86,000 90,228 4,228 Transfers in 6,529,064 6,529,064 6,529,064 - Total revenues 7,539,267 7,539,267 7,579,994 40,727 EXPENDITURES Current: Public safety 7,928,538 7,928,538 7,497,365 431,173 Not allocated to organizational units: Contingency 634,663 634,663 - 634,663 Transfers out 76,067 76,067 76,067 - Total expenditures 8,639,268 8,639,268 7,573,432 1,065,836 Net change in fund balances (1,100,001) (1,100,001) 6,562 1,106,563 Fund balances, budget basis - beginning of year 1,100,001 1,100,001 1,522,125 422,124 Fund balances, budget basis - end of year -$ -$ 1,528,687 1,528,687$ Unrealized gain (loss) on investments (53,204) Fund balances, GAAP basis - end of year 1,475,483$ Budgeted Amounts -149- Deschutes County, Oregon Code Abatement (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Fines, forfeitures and penalties -$ -$ 3,042$ 3,042$ Investment earnings 699 699 1,891 1,192 Total revenues 699 699 4,933 4,234 EXPENDITURES Current: General government 122,381 122,381 - 122,381 Total expenditures 122,381 122,381 - 122,381 Net change in fund balances (121,682) (121,682) 4,933 126,615 Fund balances, budget basis - beginning of year 121,682 121,682 117,109 (4,573) Fund balances, budget basis - end of year -$ -$ 122,042 122,042$ Unrealized gain (loss) on investments (3,869) Fund balances, GAAP basis - end of year 118,173$ Budgeted Amounts -150- Deschutes County, Oregon Vehicle Maintenance and Replacement (Sub-Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 11,042$ 11,042$ 37,292$ 26,250$ Other 35,000 35,000 27,655 (7,345) Transfers in 664,098 664,098 664,098 - Total revenues 710,140 710,140 729,045 18,905 EXPENDITURES Current: General government 817,000 817,000 676,781 140,219 Not allocated to organizational units: Contingency 1,657,879 1,657,879 - 1,657,879 Total expenditures 2,474,879 2,474,879 676,781 1,798,098 Net change in fund balances (1,764,739) (1,764,739) 52,264 1,817,003 Fund balances, budget basis - beginning of year 1,764,739 1,764,739 2,167,986 403,247 Fund balances, budget basis - end of year -$ -$ 2,220,250 2,220,250$ Unrealized gain (loss) on investments (70,554) Fund balances, GAAP basis - end of year 2,149,696$ Budgeted Amounts -151- Combining and Individual Funds Statements and Schedules – Major Governmental Funds – Capital Project Funds For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -152- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services -$ -$ 317,508$ 317,508$ Intergovernmental 1,818,500 1,818,500 127,458 (1,691,042) Investment earnings 124,563 124,563 337,583 213,020 Transfers in 14,230,313 14,230,313 12,238,662 (1,991,651) Total revenues 16,173,376 16,173,376 13,021,211 (3,152,165) EXPENDITURES Current: County roads 28,387,166 28,387,166 16,897,136 11,490,030 Not allocated to organizational units: Contingency 12,334,484 12,334,484 - 12,334,484 Total expenditures 40,721,650 40,721,650 16,897,136 23,824,514 Net change in fund balances (24,548,274) (24,548,274) (3,875,925) 20,672,349 Fund balances, budget basis - beginning of year 24,548,274 24,548,274 27,223,832 2,675,558 Fund balances, budget basis - end of year -$ -$ 23,347,907 23,347,907$ Unrealized gain (loss) on investments (753,378) Fund balances, GAAP basis - end of year 22,594,529$ Deschutes County, Oregon Road Capital Improvement Plan Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -153- Combining and Individual Funds Statements and Schedules – Major Proprietary Funds – Enterprise Funds For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -154- Actual Variance with Original Final Amounts Final Budget REVENUES Bond proceeds 21,200,000$ 21,200,000$ 21,411,848$ 211,848$ Charges for services 14,451,001 14,451,001 14,088,675 (362,326) Investment earnings 97,215 97,215 562,546 465,331 Other 22,000 22,000 17,403 (4,597) Transfers in 5,285,703 5,285,703 3,440,000 (1,845,703) Total revenues 41,055,919 41,055,919 39,520,472 (1,535,447) EXPENDITURES Current: County services 40,245,232 40,245,232 21,455,993 18,789,239 Not allocated to organizational units: Contingency 11,523,054 11,110,424 - 11,110,424 Debt service 1,327,000 1,739,630 1,731,017 8,613 Transfers out 5,299,665 5,299,665 3,453,962 1,845,703 Total expenditures 58,394,951 58,394,951 26,640,972 31,753,979 Net change in fund balances (17,339,032) (17,339,032) 12,879,500 30,218,532 Fund balances, budget basis - beginning of year 18,853,845 18,853,845 19,646,875 793,030 Fund balances, budget basis - end of year 1,514,813$ 1,514,813$ 32,526,375 31,011,562$ Unrealized gain (loss) on investments (1,050,632) Capital assets (net of accumulated depreciation and amortization) 34,548,158 Deferred charge on refunding 156,524 Deferred outflows of resources - OPEB RHIA 2,383 Deferred outflows of resources - OPEB 73,242 Deferred outflows of resources - pension 882,988 Accrued interest (80,823) Accrued compensated leave (223,203) Retainage payable (499,697) Lease payable (5,040) Other postemployment benefits - RHIA 25,242 Other postemployment benefits (350,970) Net pension liability (1,704,081) Bonds (net of unamortized premiums/discounts) (26,220,755) Accrued landfill closure and postclosure costs (13,934,346) Deferred inflows of resources - OPEB RHIA (3,450) Deferred inflows of resources - OPEB (309,369) Deferred inflows of resources - pension (532,342) Net position, GAAP basis - end of year 23,300,204$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Solid Waste For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -155- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 3,193,313$ 3,643,313$ 4,813,209$ 1,169,896$ Intergovernmental 53,167 53,167 53,167 - Investment earnings 15,348 15,348 68,146 52,798 Other 3,500 3,500 3,245 (255) Transfers in 2,356,168 2,356,168 2,237,871 (118,297) Total revenues 5,621,496 6,071,496 7,175,638 1,104,142 EXPENDITURES Current: County services 5,388,815 5,838,815 5,779,831 58,984 Not allocated to organizational units: Contingency 590,088 541,318 - 541,318 Debt service 52,500 101,270 101,268 2 Transfers out 658,921 658,921 658,921 - Total expenditures 6,690,324 7,140,324 6,540,020 600,304 Net change in fund balances (1,068,828) (1,068,828) 635,618 1,704,446 Fund balances, budget basis - beginning of year 2,656,009 2,656,009 3,190,813 534,804 Fund balances, budget basis - end of year 1,587,181$ 1,587,181$ 3,826,431 2,239,250$ Unrealized gain (loss) on investments (132,684) Prepaid expenses 145,100 Capital assets (net of accumulated depreciation and amortization) 16,152,294 Deferred charge on refunding 3,199 Deferred outflows of resources - OPEB RHIA 1,374 Deferred outflows of resources - OPEB 42,240 Deferred outflows of resources - pension 509,239 Accrued interest (616) Unearned revenues (15,255) Compensated leave (172,379) Lease payable (4,166) Other postemployment benefits - RHIA 14,558 Other postemployment benefits (202,413) Net pension liability (982,782) Bonds (net of unamortized premiums/discounts) (377,113) Deferred inflows of resources - OPEB RHIA (1,990) Deferred inflows of resources - OPEB (178,420) Deferred inflows of resources - pension (307,014) Net position, GAAP basis - end of year 18,319,603$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fair & Expo Center For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -156- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 641,700$ 641,700$ 577,063$ (64,637)$ Investment earnings 6,850 6,850 24,353 17,503 Transfers in 441,750 441,750 441,566 (184) Total revenues 1,090,300 1,090,300 1,042,982 (47,318) EXPENDITURES Current: County services 470,908 470,908 280,416 190,492 Not allocated to organizational units: Contingency 138,593 82,920 - 82,920 Debt service 167,600 223,273 223,272 1 Transfers out 261,566 261,566 261,566 - Total expenditures 1,038,667 1,038,667 765,254 273,413 Net change in fund balances 51,633 51,633 277,728 226,095 Fund balances, budget basis - beginning of year 1,289,133 1,289,133 1,358,473 69,340 Fund balances, budget basis - end of year 1,340,766$ 1,340,766$ 1,636,201 295,435$ Unrealized gain (loss) on investments (52,563) Capital assets (net of accumulated depreciation and amortization)1,821,072 Deferred outflows of resources - OPEB RHIA 51 Deferred outflows of resources - OPEB 1,569 Deferred outflows of resources - pension 18,911 Accrued interest (961) Accrued compensated leave (2,452) Lease payable (364) Other postemployment benefits - RHIA 541 Other postemployment benefits (7,516) Net pension liability (36,495) Bonds (net of unamortized premiums/discounts) (540,325) Deferred inflows of resources - OPEB RHIA (74) Deferred inflows of resources - OPEB (6,625) Deferred inflows of resources - pension (11,401) Net position, GAAP basis - end of year 2,819,569$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual RV Park For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -157- Combining and Individual Funds Statements and Schedules – Nonmajor Governmental Funds and Sub-Funds For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -158- Deschutes County, Oregon Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Total Special Capital Debt Nonmajor Revenue Projects Service Governmental Funds Fund Fund Funds ASSETS Cash and cash equivalents 7,185,588$ 1,090,339$ 53,718$ 8,329,645$ Investments, at fair value; plus accrued interest 47,200,689 7,163,414 352,919 54,717,022 Taxes receivable 1,678,023 - - 1,678,023 Accounts receivable 1,301,827 - - 1,301,827 Lease receivable - - 1,479,659 1,479,659 Notes and contracts receivable 27,567 - - 27,567 Total assets 57,393,694$ 8,253,753$ 1,886,296$ 67,533,743$ LIABILITIES Accounts payable and other current liabilities 1,962,875$ 2,387,019$ 373$ 4,350,267$ Payroll liabilities 615,474 - - 615,474 Unearned revenues 2,012,491 - - 2,012,491 Total liabilities 4,590,840 2,387,019 373 6,978,232 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 165,330 - - 165,330 Unavailable revenue - services performed 23,141 - - 23,141 Unavailable revenue - leases - - 1,436,857 1,436,857 Total deferred inflows of resources 188,471 - 1,436,857 1,625,328 FUND BALANCES Restricted 47,776,958 - - 47,776,958 Committed 4,850,429 5,866,734 449,066 11,166,229 Unassigned (13,004) - - (13,004) Total fund balances 52,614,383 5,866,734 449,066 58,930,183 Total liabilities, deferred inflows of resources and fund balances 57,393,694$ 8,253,753$ 1,886,296$ 67,533,743$ The notes to the financial statements are an integral part of this statement. -159- Total Special Capital Debt Nonmajor Revenue Projects Service Governmental Funds Fund Fund Funds REVENUES Taxes - property 11,243,449$ -$ -$ 11,243,449$ Taxes - other 12,597,706 - - 12,597,706 Licenses and permits 1,644,867 - - 1,644,867 Fines, forfeitures and penalties 586,213 - - 586,213 Investment earnings (losses) 1,127,637 195,072 15,743 1,338,452 Rents - - 1,297,841 1,297,841 Charges for services 10,888,215 967,272 1,434,360 13,289,847 Contributions and donations 4,096 - - 4,096 Intergovernmental 15,731,564 - 309,545 16,041,109 Total revenues 53,823,747 1,162,344 3,057,489 58,043,580 EXPENDITURES Current: General government 26,372,473 276,215 - 26,648,688 Public safety 19,719,128 - - 19,719,128 County roads 5,159,444 - - 5,159,444 Debt service: Principal - - 3,370,177 3,370,177 Interest - - 1,107,238 1,107,238 Trustee fees - - 1,550 1,550 Capital outlay 5,304,114 13,461,425 - 18,765,539 Total expenditures 56,555,159 13,737,640 4,478,965 74,771,764 Excess (deficiency) of revenues over expenditures (2,731,412) (12,575,296) (1,421,476) (16,728,184) OTHER FINANCING SOURCES (USES) Proceeds from leases 1,092,982 - - 1,092,982 Proceeds from subscriptions 1,855,136 - - 1,855,136 Transfers in 1,910,060 10,038,704 1,485,577 13,434,341 Transfers out (8,974,134) - - (8,974,134) Total other financing sources (uses) (4,115,956) 10,038,704 1,485,577 7,408,325 Net change in fund balances (6,847,368) (2,536,592) 64,101 (9,319,859) Fund balances - beginning of year 59,461,751 8,403,326 384,965 68,250,042 Fund balances - end of year 52,614,383$ 5,866,734$ 449,066$ 58,930,183$ The notes to the financial statements are an integral part of this statement. Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -160- Deschutes County, Oregon Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2023 Park Park Justice Acquisition & Development County Special Taylor Court Development Fees School Transportation Grazing ASSETS Cash and cash equivalents 3,040$ 120,701$ 9,739$ 73$ 18,257$ 5,197$ Investments, at fair value; plus accrued interest 14,715 792,994 63,981 476 119,944 34,144 Taxes receivable - - - - - - Accounts receivable - 51,122 - - 12,042 - Notes and contracts receivable - - - - - - Total assets 17,755$ 964,817$ 73,720$ 549$ 150,243$ 39,341$ LIABILITIES Accounts payable and other current liabilities 2,523$ 29,711$ -$ -$ 123,600$ -$ Payroll liabilities 15,788 - - - - - Unearned revenues - - - - - - Total liabilities 18,311 29,711 - - 123,600 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes - - - - - - Unavailable revenue-services performed - - - - - - Total deferred inflows of resources - - - - - - FUND BALANCES Restricted - 935,106 73,720 549 26,643 39,341 Committed - - - - - - Unassigned (556) - - - - - Total fund balances (556) 935,106 73,720 549 26,643 39,341 Total liabilities, deferred inflow of resources and fund balances 17,755$ 964,817$ 73,720$ 549$ 150,243$ 39,341$ The notes to the financial statements are an integral part of this statement. -161- County Transient Video Transient Foreclosed Victims'Law Clerk Room Tax Lottery Room Tax-1%Land Sales Assistance Library Records 605,826$ 106,611$ 93$ 19,775$ 26,684$ 14,070$ 44,535$ 3,980,219 700,427 613 129,921 175,312 92,438 292,585 1,304,132 - 192,536 - - - - 744 306,872 - - 182,164 - - - - - - - - - 5,890,921$ 1,113,910$ 193,242$ 149,696$ 384,160$ 106,508$ 337,120$ 202,871$ 99,525$ -$ 1,131$ 597$ -$ 107$ 5,178 - 729 - 25,276 - - 23,141 - - - - - - 231,190 99,525 729 1,131 25,873 - 107 - - - - - - - 23,141 - - - - - - 23,141 - - - - - - 5,636,590 1,014,385 192,513 148,565 358,287 106,508 337,013 - - - - - - - - - - - - - - 5,636,590 1,014,385 192,513 148,565 358,287 106,508 337,013 5,890,921$ 1,113,910$ 193,242$ 149,696$ 384,160$ 106,508$ 337,120$ -162- Deschutes County, Oregon Combining Balance Sheet (Continued) Nonmajor Special Revenue Funds June 30, 2023 Deschutes County CDD Court Communication Community Groundwater Newberry GIS Facilities System Reserve Development Partnership Neighborhood Dedicated ASSETS Cash and cash equivalents 67$ 35,355$ 1,539,018$ 7,208$ 17,417$ 59,987$ Investments, at fair value; plus accrued interest 438 232,281 10,108,566 47,352 114,428 394,110 Taxes receivable - - - - - - Accounts receivable - - - - - 2,033 Notes and contracts receivable - - - - - - Total assets 505$ 267,636$ 11,647,584$ 54,560$ 131,845$ 456,130$ LIABILITIES Accounts payable and other current liabilities -$ -$ 132,728$ -$ -$ -$ Payroll liabilities - - 191,592 - - 7,455 Unearned revenues - - 132,153 - - - Total liabilities - - 456,473 - - 7,455 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes - - - - - - Unavailable revenue-services performed - - - - - - Total deferred inflows of resources - - - - - - FUND BALANCES Restricted 505 - 11,191,111 54,560 131,845 448,675 Committed - 267,636 - - - - Unassigned - - - - - - Total fund balances 505 267,636 11,191,111 54,560 131,845 448,675 Total liabilities, deferred inflow of resources and fund balances 505$ 267,636$ 11,647,584$ 54,560$ 131,845$ 456,130$ The notes to the financial statements are an integral part of this statement. -163- Natural Federal Public Land Countywide Resource Forest Title Corner Transportation Adult Parole Protection III Surveyor Preservation SDC Imp Dog Control & Probation 300,010$ 13,958$ 32,732$ 174,020$ 404,738$ 11,957$ 408,962$ 1,971,039 91,705 215,048 1,143,291 2,659,082 78,554 2,686,843 - - - - - - - 127,528 - - - 1,403 - 34,002 - - - - 27,567 - - 2,398,577$ 105,663$ 247,780$ 1,317,311$ 3,092,790$ 90,511$ 3,129,807$ 37,232$ -$ -$ -$ -$ 33,529$ 76,625$ 7,857 - - - - 1,598 143,617 922,480 98,452 - - 28,970 - - 967,569 98,452 - - 28,970 35,127 220,242 - - - - - - - - - - - - - - - - - - - - - 1,431,008 7,211 247,780 1,317,311 3,063,820 - 2,909,565 - - - - - 55,384 - - - - - - - - 1,431,008 7,211 247,780 1,317,311 3,063,820 55,384 2,909,565 2,398,577$ 105,663$ 247,780$ 1,317,311$ 3,092,790$ 90,511$ 3,129,807$ -164- Deschutes County, Oregon Combining Balance Sheet (Continued) Nonmajor Special Revenue Funds June 30, 2023 Deschutes Deschutes Statewide Joint County County Total Nonmajor Transportation PERS Houselessness 9-1-1 Extension & 4-H Special Improvement Reserve Task Force Service District Service District Revenue Funds ASSETS Cash and cash equivalents 752,122$ 598,081$ 104,024$ 1,689,631$ 61,700$ 7,185,588$ Investments, at fair value; plus accrued interest 4,941,366 3,929,328 683,426 11,100,697 405,366 47,200,689 Taxes receivable - - - 170,701 10,654 1,678,023 Accounts receivable - - 10,633 573,284 - 1,301,827 Notes and contracts receivable - - - - - 27,567 Total assets 5,693,488$ 4,527,409$ 798,083$ 13,534,313$ 477,720$ 57,393,694$ LIABILITIES Accounts payable and other current liabilities 925,000$ -$ -$ 190,409$ 107,287$ 1,962,875$ Payroll liabilities - - 3,236 213,148 - 615,474 Unearned revenues - - 807,295 - - 2,012,491 Total liabilities 925,000 - 810,531 403,557 107,287 4,590,840 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes - - - 155,615 9,715 165,330 Unavailable revenue-services performed - - - - - 23,141 Total deferred inflows of resources - - - 155,615 9,715 188,471 FUND BALANCES Restricted 4,768,488 - - 12,975,141 360,718 47,776,958 Committed - 4,527,409 - - - 4,850,429 Unassigned - - (12,448) - - (13,004) Total fund balances 4,768,488 4,527,409 (12,448) 12,975,141 360,718 52,614,383 Total liabilities, deferred inflow of resources and fund balances 5,693,488$ 4,527,409$ 798,083$ 13,534,313$ 477,720$ 57,393,694$ The notes to the financial statements are an integral part of this statement. -165-     -166- Deschutes County, Oregon Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30, 2023 Park Park Justice Acquisition &Development County Court Development Fees School REVENUES Taxes - property -$ -$ -$ -$ Taxes - other - - - - Licenses and permits - - 35,000 - Fines, forfeitures and penalties 517,489 - - - Investment earnings 69 7,673 (85) 1,278 Charges for services - - - - Contributions and donations - - - - Intergovernmental - 348,165 - 602,329 Total revenues 517,558 355,838 34,915 603,607 EXPENDITURES Current: General government - 51,096 188 603,058 Public safety 742,699 - - - County roads - - - - Capital outlay - - - - Total expenditures 742,699 51,096 188 603,058 Excess (deficiency) of revenues over expenditures (225,141) 304,742 34,727 549 OTHER FINANCING SOURCES (USES) Proceeds from leases - - - - Proceeds from subscriptions - - - - Transfers in 224,696 - - - Transfers out - (190,000) - - Total other financing sources (uses)224,696 (190,000) - - Net change in fund balances (445) 114,742 34,727 549 Fund balances - beginning of year (111) 820,364 38,993 - Fund balances - end of year (556)$ 935,106$ 73,720$ 549$ The notes to the financial statements are an integral part of this statement. -167- Special Taylor Transient Transportation Grazing Room Tax Video Lottery -$ -$ -$ -$ - - 11,016,097 - - - - - - - - - 2,120 239 246,877 17,278 - - 161 - - - - - 496,396 8,610 - 1,137,185 498,516 8,849 11,263,135 1,154,463 - - 11,793,100 1,287,186 - - - - 494,395 - - - - - - - 494,395 - 11,793,100 1,287,186 4,121 8,849 (529,965) (132,723) - - - - - - - - - - - - - - (4,320,644) - - - (4,320,644) - 4,121 8,849 (4,850,609) (132,723) 22,522 30,492 10,487,199 1,147,108 26,643$ 39,341$ 5,636,590$ 1,014,385$ -168- Deschutes County, Oregon Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30, 2023 Transient Foreclosed Victims' Room Tax-1% Land Sales Assistance Law Library REVENUES Taxes - property -$ -$ -$ -$ Taxes - other 1,581,609 - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 1,483 2,169 (7,165) 3,610 Charges for services - 54,025 - - Contributions and donations - - - - Intergovernmental - - 615,090 86,823 Total revenues 1,583,092 56,194 607,925 90,433 EXPENDITURES Current: General government 29,132 58,336 - 155,046 Public safety - - 1,088,396 - County roads - - - - Capital outlay - - - - Total expenditures 29,132 58,336 1,088,396 155,046 Excess (deficiency) of revenues over expenditures 1,553,960 (2,142) (480,471) (64,613) OTHER FINANCING SOURCES (USES) Proceeds from leases - - - - Proceeds from subscriptions - - - - Transfers in - - 826,913 - Transfers out (1,553,983) - - - Total other financing sources (uses)(1,553,983) - 826,913 - Net change in fund balances (23) (2,142) 346,442 (64,613) Fund balances - beginning of year 192,536 150,707 11,845 171,121 Fund balances - end of year 192,513$ 148,565$ 358,287$ 106,508$ The notes to the financial statements are an integral part of this statement. -169- Deschutes County County Clerk Court Communication Community Records Facilities System Reserve Development -$ -$ -$ -$ - - - - - - - - - 63,694 - 4,141 6,579 (52) 4,124 177,100 75,200 - - 9,358,863 - - - - - - - 57,210 81,779 63,642 4,124 9,597,314 122,693 - - 9,490,956 - 63,137 - - - - - - - - - - 122,693 63,137 - 9,490,956 (40,914) 505 4,124 106,358 - - - - - - - - - - - 139,916 - - - (112,619) - - - 27,297 (40,914) 505 4,124 133,655 377,927 - 263,512 11,057,456 337,013$ 505$ 267,636$ 11,191,111$ -170- Deschutes County, Oregon Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30, 2023 CDD Natural Groundwater Newberry GIS Resource Partnership Neighborhood Dedicated Protection REVENUES Taxes - property -$ -$ -$ -$ Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 2,395 2,032 13,026 (8,722) Charges for services 10,500 - 211,643 121,361 Contributions and donations - - - - Intergovernmental - - 7,076 707,198 Total revenues 12,895 2,032 231,745 819,837 EXPENDITURES Current: General government 48,750 - 376,681 796,256 Public safety - - - - County roads - - - - Capital outlay - - - - Total expenditures 48,750 - 376,681 796,256 Excess (deficiency) of revenues over expenditures (35,855) 2,032 (144,936) 23,581 OTHER FINANCING SOURCES (USES) Proceeds from leases - - - - Proceeds from subscriptions - - - - Transfers in - - - 35,000 Transfers out - - - (8,210) Total other financing sources (uses)- - - 26,790 Net change in fund balances (35,855) 2,032 (144,936) 50,371 Fund balances - beginning of year 90,415 129,813 593,611 1,380,637 Fund balances - end of year 54,560$ 131,845$ 448,675$ 1,431,008$ The notes to the financial statements are an integral part of this statement. -171- Federal Public Land Countywide Forest Title Corner Transportation III Surveyor Preservation SDC Imp -$ -$ -$ -$ - - - - - 137,762 - 1,273,419 - - - - 2,050 8,627 27,417 114,763 - 46,899 297,264 - - - - - 78,156 - - - 80,206 193,288 324,681 1,388,182 80,247 251,599 - - - - - - - - 393,318 - - - - - 80,247 251,599 393,318 - (41) (58,311) (68,637) 1,388,182 - - - - - - - - - - - - - - - (2,459,941) - - - (2,459,941) (41) (58,311) (68,637) (1,071,759) 7,252 306,091 1,385,948 4,135,579 7,211$ 247,780$ 1,317,311$ 3,063,820$ -172- Deschutes County, Oregon Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30, 2023 Statewide Adult Parole Transportation PERS Dog Control & Probation Improvement Reserve REVENUES Taxes - property -$ -$ -$ -$ Taxes - other - - - - Licenses and permits 198,686 - - - Fines, forfeitures and penalties - 889 - - Investment earnings 1,310 64,651 169,815 69,840 Charges for services 311 102,099 - - Contributions and donations 4,096 - - - Intergovernmental - 6,128,760 1,870,942 - Total revenues 204,403 6,296,399 2,040,757 69,840 EXPENDITURES Current: General government 344,318 - - 1,700 Public safety - 6,782,399 - - County roads - - 3,576,695 - Capital outlay - 8,475 - - Total expenditures 344,318 6,790,874 3,576,695 1,700 Excess (deficiency) of revenues over expenditures (139,915) (494,475) (1,535,938) 68,140 OTHER FINANCING SOURCES (USES) Proceeds from leases - - - - Proceeds from subscriptions - - - - Transfers in 147,167 536,368 - - Transfers out - (268,837) - - Total other financing sources (uses)147,167 267,531 - - Net change in fund balances 7,252 (226,944) (1,535,938) 68,140 Fund balances - beginning of year 48,132 3,136,509 6,304,426 4,459,269 Fund balances - end of year 55,384$ 2,909,565$ 4,768,488$ 4,527,409$ The notes to the financial statements are an integral part of this statement. -173- Deschutes Deschutes Deschutes Joint County County County Total Nonmajor Houselessness 9-1-1 Extension & 4-H Road Special Task Force Service District Service District Agency Revenue Funds -$ 10,584,002$ 659,447$ -$ 11,243,449$ - - - - 12,597,706 - - - - 1,644,867 - - - - 586,213 (12,448) 203,759 5,825 - 1,127,637 10,633 599,256 - - 10,888,215 - - - - 4,096 192,705 2,699,883 - 695,036 15,731,564 190,890 14,086,900 665,272 695,036 53,823,747 203,338 - 678,793 - 26,372,473 - 11,042,497 - - 19,719,128 - - - 695,036 5,159,444 - 5,295,639 - - 5,304,114 203,338 16,338,136 678,793 695,036 56,555,159 (12,448) (2,251,236) (13,521) - (2,731,412) - 1,092,982 - - 1,092,982 - 1,855,136 - - 1,855,136 - - - - 1,910,060 - (59,900) - - (8,974,134) - 2,888,218 - - (4,115,956) (12,448) 636,982 (13,521) - (6,847,368) - 12,338,159 374,239 - 59,461,751 (12,448)$ 12,975,141$ 360,718$ -$ 52,614,383$ -174- Deschutes County, Oregon Justice Court Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Fines, forfeitures and penalties 525,000$ 525,000$ 517,489$ (7,511)$ Investment earnings 32 32 513 481 Transfers in 263,217 263,217 224,696 (38,521) Total revenues 788,249 788,249 742,698 (45,551) EXPENDITURES Current: Public safety 731,183 766,183 742,698 23,485 Not allocated to organizational units: Contingency 57,066 22,066 - 22,066 Total expenditures 788,249 788,249 742,698 45,551 Net change in fund balances - - - - Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year -$ -$ - -$ Unrealized gain (loss) on investments (556) Fund balances, GAAP basis - end of year (556)$ Budgeted Amounts -175- Deschutes County, Oregon Park Acquisition and Development Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 350,000$ 350,000$ 348,165$ (1,835)$ Investment earnings 3,977 3,977 13,453 9,476 Total revenues 353,977 353,977 361,618 7,641 EXPENDITURES Current: General government 412,500 412,500 51,096 361,404 Not allocated to organizational units: Contingency 423,964 423,964 - 423,964 Transfers out 190,000 190,000 190,000 - Total expenditures 1,026,464 1,026,464 241,096 785,368 Net change in fund balances (672,487) (672,487) 120,522 793,009 Fund balances, budget basis - beginning of year 672,487 672,487 844,502 172,015 Fund balances, budget basis - end of year -$ -$ 965,024 965,024$ Unrealized gain (loss) on investments (29,918) Fund balances, GAAP basis - end of year 935,106$ Budgeted Amounts -176- Deschutes County, Oregon Park Development Fees Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 104$ 104$ 1,070$ 966$ Licenses and permits 57,000 57,000 35,000 (22,000) Total revenues 57,104 57,104 36,070 (21,034) EXPENDITURES Current: General government 97,082 97,082 187 96,895 Total expenditures 97,082 97,082 187 96,895 Net change in fund balances (39,978) (39,978) 35,883 75,861 Fund balances, budget basis - beginning of year 39,978 39,978 40,251 273 Fund balances, budget basis - end of year -$ -$ 76,134 76,134$ Unrealized gain (loss) on investments (2,414) Fund balances, GAAP basis - end of year 73,720$ Budgeted Amounts -177- Deschutes County, Oregon County School Fund Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 658,000$ 658,000$ 602,329$ (55,671)$ Investment earnings 782 782 1,296 514 Total revenues 658,782 658,782 603,625 (55,157) EXPENDITURES Current: General government 658,782 658,782 603,058 55,724 Total expenditures 658,782 658,782 603,058 55,724 Net change in fund balances - - 567 567 Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year -$ -$ 567 567$ Unrealized gain (loss) on investments (18) Fund balances, GAAP basis - end of year 549$ Budgeted Amounts -178- Deschutes County, Oregon Special Transportation Fund Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 494,096$ 494,096$ 496,396$ 2,300$ Investment earnings 1,124 1,124 2,317 1,193 Total revenues 495,220 495,220 498,713 3,493 EXPENDITURES Current: County roads 509,191 509,191 494,395 14,796 Total expenditures 509,191 509,191 494,395 14,796 Net change in fund balances (13,971) (13,971) 4,318 18,289 Fund balances, budget basis - beginning of year 13,971 13,971 26,850 12,879 Fund balances, budget basis - end of year -$ -$ 31,168 31,168$ Unrealized gain (loss) on investments (4,525) Fund balances, GAAP basis - end of year 26,643$ Budgeted Amounts -179- Deschutes County, Oregon Taylor Grazing Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 6,000$ 6,000$ 8,609$ 2,609$ Investment earnings 266 266 543 277 Total revenues 6,266 6,266 9,152 2,886 EXPENDITURES Current: General government 29,131 29,131 - 29,131 Not allocated to organizational units: Transfers out 30,000 30,000 - 30,000 Total expenditures 59,131 59,131 - 59,131 Net change in fund balances (52,865) (52,865) 9,152 62,017 Fund balances, budget basis - beginning of year 52,865 52,865 31,477 (21,388) Fund balances, budget basis - end of year -$ -$ 40,629 40,629$ Unrealized gain (loss) on investments (1,288) Fund balances, GAAP basis - end of year 39,341$ Budgeted Amounts -180- Deschutes County, Oregon Transient Room Tax Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services -$ -$ 161$ 161$ Investment earnings 49,100 49,100 94,150 45,050 Taxes - other 11,883,265 11,883,265 11,071,262 (812,003) Total revenues 11,932,365 11,932,365 11,165,573 (766,792) EXPENDITURES Current: General government 13,086,582 13,086,582 11,793,100 1,293,482 Not allocated to organizational units: Transfers out 4,359,165 4,359,165 4,320,644 38,521 Total expenditures 17,445,747 17,445,747 16,113,744 1,332,003 Net change in fund balances (5,513,382) (5,513,382) (4,948,171) 565,211 Fund balances, budget basis - beginning of year 9,513,382 9,513,382 9,475,532 (37,850) Fund balances, budget basis - end of year 4,000,000$ 4,000,000$ 4,527,361 527,361$ Unavailable revenue - services provided (23,141) Unrealized gain (loss) on investments (150,167) Accrued taxes 1,282,537 Fund balances, GAAP basis - end of year 5,636,590$ Budgeted Amounts -181- Deschutes County, Oregon Video Lottery Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 1,080,000$ 1,080,000$ 1,137,185$ 57,185$ Investment earnings 5,138 5,138 13,301 8,163 Total revenues 1,085,138 1,085,138 1,150,486 65,348 EXPENDITURES Current: General government 1,164,056 1,296,681 1,287,186 9,495 Not allocated to organizational units: Contingency 1,030,007 897,382 - 897,382 Total expenditures 2,194,063 2,194,063 1,287,186 906,877 Net change in fund balances (1,108,925) (1,108,925) (136,700) 972,225 Fund balances, budget basis - beginning of year 1,108,925 1,108,925 1,177,511 68,586 Fund balances, budget basis - end of year -$ -$ 1,040,811 1,040,811$ Unrealized gain (loss) on investments (26,426) Fund balances, GAAP basis - end of year 1,014,385$ Budgeted Amounts -182- Deschutes County, Oregon Transient Room Tax - 1% Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 1,308$ 1,308$ 1,506$ 198$ Taxes - other 1,697,609 1,697,609 1,581,609 (116,000) Total revenues 1,698,917 1,698,917 1,583,115 (115,802) EXPENDITURES Current: General government 26,636 36,636 29,132 7,504 Not allocated to organizational units: Transfers out 1,672,281 1,662,281 1,553,983 108,298 Total expenditures 1,698,917 1,698,917 1,583,115 115,802 Net change in fund balances - - - - Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year -$ -$ - -$ Unrealized gain (loss) on investments (23) Accrued taxes 192,536 Fund balances, GAAP basis - end of year 192,513$ Budgeted Amounts -183- Deschutes County, Oregon Foreclosed Land Sales Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 143,718$ 143,718$ 54,025$ (89,693)$ Investment earnings 778 778 1,952 1,174 Total revenues 144,496 144,496 55,977 (88,519) Expenditures Current: General government 143,142 143,142 58,336 84,806 Not allocated to organizational units: Contingency 156,715 156,715 - 156,715 Total expenditures 299,857 299,857 58,336 241,521 Net change in fund balances (155,361) (155,361) (2,359) 153,002 Fund balances, budget basis - beginning of year 155,361 155,361 155,826 465 Fund balances, budget basis - end of year -$ -$ 153,467 153,467$ Unrealized gain (loss) on investments (4,902) Fund balances, GAAP basis - end of year 148,565$ Budgeted Amounts -184- Deschutes County, Oregon Victims' Assistance Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Contributions and donations -$ 128,850$ -$ (128,850)$ Intergovernmental 377,109 426,653 615,090 188,437 Investment earnings - - 2,079 2,079 Transfers in 717,566 826,913 826,913 - Total revenues 1,094,675 1,382,416 1,444,082 61,666 EXPENDITURES Current: Public safety 1,094,675 1,382,416 1,088,396 294,020 Total expenditures 1,094,675 1,382,416 1,088,396 294,020 Net change in fund balances - - 355,686 355,686 Fund balances, budget basis - beginning of year - - 9,215 9,215 Fund balances, budget basis - end of year -$ -$ 364,901 364,901$ Unrealized gain (loss) on investments (6,614) Fund balances, GAAP basis - end of year 358,287$ Budgeted Amounts -185- Deschutes County, Oregon Law Library Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 121,792$ 121,792$ 86,823$ (34,969)$ Investment earnings 1,367 1,367 1,575 208 Total revenues 123,159 123,159 88,398 (34,761) EXPENDITURES Current: General government 205,046 205,046 155,046 50,000 Not allocated to organizational units: Contingency 88,113 88,113 - 88,113 Total expenditures 293,159 293,159 155,046 138,113 Net change in fund balances (170,000) (170,000) (66,648) 103,352 Fund balances, budget basis - beginning of year 170,000 170,000 176,644 6,644 Fund balances, budget basis - end of year -$ -$ 109,996 109,996$ Unrealized gain (loss) on investments (3,488) Fund balances, GAAP basis - end of year 106,508$ Budgeted Amounts -186- Deschutes County, Oregon County Clerk Records Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 131,566$ 131,566$ 75,200$ (56,366)$ Investment earnings 2,003 2,003 5,415 3,412 Total revenues 133,569 133,569 80,615 (52,954) EXPENDITURES Current: General government 130,457 130,457 122,693 7,764 Not allocated to organizational units: Contingency 360,501 360,501 - 360,501 Total expenditures 490,958 490,958 122,693 368,265 Net change in fund balances (357,389) (357,389) (42,078) 315,311 Fund balances, budget basis - beginning of year 357,389 357,389 390,130 32,741 Fund balances, budget basis - end of year -$ -$ 348,052$ 348,052$ Unrealized gain (loss) on investments (11,039) Fund balances, GAAP basis - end of year 337,013$ Budgeted Amounts -187- Deschutes County, Oregon Court Facilities Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Fines, forfeitures and penalties 63,000$ 63,000$ 63,694$ 694$ Investment earnings 137 137 (36) (173) Total revenues 63,137 63,137 63,658 521 EXPENDITURES Current: Public safety 63,137 63,137 63,137 - Total expenditures 63,137 63,137 63,137 - Net change in fund balances - - 521 521 Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year -$ -$ 521 521$ Unrealized gain (loss) on investments (16) Fund balances, GAAP basis - end of year 505$ Budgeted Amounts -188- Deschutes County, Oregon Deschutes County Communication System Reserve Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 50,000$ 50,000$ -$ (50,000)$ Investment earnings 1,569 1,569 4,383 2,814 Total revenues 51,569 51,569 4,383 (47,186) EXPENDITURES Current: Public safety - - - - Total expenditures - - - - Net change in fund balances 51,569 51,569 4,383 (47,186) Fund balances, budget basis - beginning of year 321,634 321,634 272,017 (49,617) Fund balances, budget basis - end of year 373,203$ 373,203$ 276,400 (96,803)$ Unrealized gain (loss) on investments (8,764) Total fund balance, GAAP basis - End of Year 267,636$ Budgeted Amounts -189- Deschutes County, Oregon Community Development Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 11,603,024$ 11,603,024$ 9,358,863$ (2,244,161)$ Fines, forfeitures and penalties 28,000 28,000 4,142 (23,858) Intergovernmental 30,000 30,000 57,210 27,210 Investment earnings 62,354 62,354 193,053 130,699 Transfers in 1,118,966 1,118,966 139,916 (979,050) Total revenues 12,842,344 12,842,344 9,753,184 (3,089,160) EXPENDITURES Current: General government 11,283,301 11,283,301 9,490,956 1,792,345 Not allocated to organizational units: Contingency 1,627,134 1,627,134 - 1,627,134 Transfers out 1,071,585 1,071,585 112,619 958,966 Total expenditures 13,982,020 13,982,020 9,603,575 4,378,445 Net change in fund balances (1,139,676) (1,139,676) 149,609 1,289,285 Fund balances, budget basis - beginning of year 11,208,573 11,208,573 11,422,882 214,309 Fund balances, budget basis - end of year 10,068,897$ 10,068,897$ 11,572,491 1,503,594$ Unrealized gain (loss) on investments (381,380) Fund balances, GAAP basis - end of year 11,191,111$ Budgeted Amounts -190- Deschutes County, Oregon CDD Groundwater Partnership Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 45,000$ 45,000$ 10,500$ (34,500)$ Investment earnings 516 516 1,264 748 Total revenues 45,516 45,516 11,764 (33,752) EXPENDITURES Current: General government 123,693 123,693 48,750 74,943 Total expenditures 123,693 123,693 48,750 74,943 Net change in fund balances (78,177) (78,177) (36,986) 41,191 Fund balances, budget basis - beginning of year 78,177 78,177 93,333 15,156 Fund balances, budget basis - end of year -$ -$ 56,347 56,347$ Unrealized gain (loss) on investments (1,787) Fund balances, GAAP basis - end of year 54,560$ Budgeted Amounts -191- Deschutes County, Oregon Newberry Neighborhood Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 1,213$ 1,213$ 2,159$ 946$ Loan repayments 58,000 58,000 - (58,000) Total revenues 59,213 59,213 2,159 (57,054) Expenditures Not allocated to organizational units: Contingency 134,913 134,913 - 134,913 Total expenditures 134,913 134,913 - 134,913 Net change in fund balances (75,700) (75,700) 2,159 77,859 Fund balances, budget basis - beginning of year 75,700 75,700 134,003 58,303 Fund balances, budget basis - end of year -$ -$ 136,162 136,162$ Unrealized gain (loss) on investments (4,317) Fund balances, GAAP basis - end of year 131,845$ Budgeted Amounts -192- Deschutes County, Oregon GIS Dedicated Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 320,000$ 320,000$ 211,643$ (108,357)$ Intergovernmental 12,029 12,029 7,076 (4,953) Investment earnings 3,627 3,627 8,832 5,205 Total revenues 335,656 335,656 227,551 (108,105) EXPENDITURES Current: General government 506,754 506,754 376,681 130,073 Not allocated to organizational units: Contingency 439,581 439,581 - 439,581 Total expenditures 946,335 946,335 376,681 569,654 Net change in fund balances (610,679) (610,679) (149,130) 461,549 Fund balances, budget basis - beginning of year 610,679 610,679 612,674 1,995 Fund balances, budget basis - end of year -$ -$ 463,544 463,544$ Unrealized gain (loss) on investments (14,869) Fund balances, GAAP basis - end of year 448,675$ Budgeted Amounts -193- Deschutes County, Oregon Natural Resource Protection Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 160,000$ 160,000$ 121,361$ (38,639)$ Intergovernmental 862,515 862,515 707,198 (155,317) Investment earnings 8,786 8,786 25,776 16,990 Transfers in 65,000 65,000 35,000 (30,000) Total revenues 1,096,301 1,096,301 889,335 (206,966) EXPENDITURES Current: General government 1,072,220 1,072,220 796,256 275,964 Not allocated to organizational units: Contingency 1,325,668 1,325,668 - 1,325,668 Transfers out 8,210 8,210 8,210 - Total expenditures 2,406,098 2,406,098 804,466 1,601,632 Net change in fund balances (1,309,797) (1,309,797) 84,869 1,394,666 Fund balances, budget basis - beginning of year 1,309,797 1,309,797 1,420,503 110,706 Fund balances, budget basis - end of year -$ -$ 1,505,372 1,505,372$ Unrealized gain (loss) on investments (74,364) Fund balances, GAAP basis - end of year 1,431,008$ Budgeted Amounts -194- Deschutes County, Oregon Federal Forest Title III Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 90,000$ 90,000$ 78,157$ (11,843)$ Investment earnings 821 821 2,090 1,269 Total revenues 90,821 90,821 80,247 (10,574) EXPENDITURES Current: General government 120,000 120,000 80,490 39,510 Not allocated to organizational units: Contingency 64,822 64,822 - 64,822 Total expenditures 184,822 184,822 80,490 104,332 Net change in fund balances (94,001) (94,001) (243) 93,758 Fund balances, budget basis - beginning of year 94,001 94,001 109,366 15,365 Fund balances, budget basis - end of year -$ -$ 109,123 109,123$ Advanced payments (98,452) Unrealized gain (loss) on investments (3,460) Fund balances, GAAP basis - end of year 7,211$ Budgeted Amounts -195- Deschutes County, Oregon Surveyor Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 53,084$ 53,084$ 46,899$ (6,185)$ Investment earnings 1,975 1,975 6,861 4,886 Licenses and permits 168,347 168,347 137,762 (30,585) Total revenues 223,406 223,406 191,522 (31,884) EXPENDITURES Current: General government 251,758 251,758 251,599 159 Not allocated to organizational units: Contingency 286,989 286,989 - 286,989 Total expenditures 538,747 538,747 251,599 287,148 Net change in fund balances (315,341) (315,341) (60,077) 255,264 Fund balances, budget basis - beginning of year 315,341 315,341 315,970 629 Fund balances, budget basis - end of year -$ -$ 255,893 255,893$ Unrealized gain (loss) on investments (8,113) Fund balances, GAAP basis - end of year 247,780$ Budgeted Amounts -196- Deschutes County, Oregon Public Land Corner Preservation Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services -$ -$ 297,264$ 297,264$ Investment earnings 9,151 9,151 25,819 16,668 Total revenues 9,151 9,151 323,083 313,932 EXPENDITURES Current: County roads 471,566 471,566 393,318 78,248 Not allocated to organizational units: Contingency 1,199,595 1,199,595 - 1,199,595 Total expenditures 1,671,161 1,671,161 393,318 1,277,843 Net change in fund balances (1,662,010) (1,662,010) (70,235) 1,591,775 Fund balances, budget basis - beginning of year 1,662,010 1,662,010 1,430,681 (231,329) Fund balances, budget basis - end of year -$ -$ 1,360,446 1,360,446$ Unrealized gain (loss) on investments (43,135) Fund balances, GAAP basis - end of year 1,317,311$ Budgeted Amounts -197- Deschutes County, Oregon Countywide Transportation SDC Improvement Fee Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 27,217$ 27,217$ 81,605$ 54,388$ Licenses and permits 1,806,000 1,806,000 1,273,419 (532,581) Total revenues 1,833,217 1,833,217 1,355,024 (478,193) EXPENDITURES Not allocated to organizational units: Contingency 1,393,767 1,393,767 - 1,393,767 Transfers out 4,451,592 4,451,592 2,459,941 1,991,651 Total expenditures 5,845,359 5,845,359 2,459,941 3,385,418 Net change in fund balances (4,012,142) (4,012,142) (1,104,917) 2,907,225 Fund balances, budget basis - beginning of year 4,012,142 4,012,142 4,269,060 256,918 Fund balances, budget basis - end of year -$ -$ 3,164,143 3,164,143$ Unrealized gain (loss) on investments (100,323) Fund balances, GAAP basis - end of year 3,063,820$ Budgeted Amounts -198- Deschutes County, Oregon Dog Control Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services -$ -$ 311$ 311$ Contributions and donations 5,500 5,500 4,096 (1,404) Investment earnings 545 545 1,265 720 Licenses and permits 229,750 229,750 198,686 (31,064) Transfers in 147,166 147,166 147,166 - Total revenues 382,961 382,961 351,524 (31,437) EXPENDITURES Current: General government 402,165 402,165 344,316 57,849 Not allocated to organizational units: Contingency 31,838 31,838 - 31,838 Total expenditures 434,003 434,003 344,316 89,687 Net change in fund balances (51,042) (51,042) 7,208 58,250 Fund balances, budget basis - beginning of year 51,042 51,042 51,140 98 Fund balances, budget basis - end of year -$ -$ 58,348 58,348$ Unrealized gain (loss) on investments (2,964) Fund balances, GAAP basis - end of year 55,384$ Budgeted Amounts -199- Deschutes County, Oregon Adult Parole & Probation Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 100,500$ 100,500$ 102,099$ 1,599$ Fines, forfeitures and penalties 500 500 889 389 Intergovernmental 6,014,868 6,014,868 6,128,760 113,892 Investment earnings 18,151 18,151 63,625 45,474 Transfers in 536,368 536,368 536,368 - Total revenues 6,670,387 6,670,387 6,831,741 161,354 EXPENDITURES Current: Public safety 7,575,910 7,575,910 6,790,874 785,036 Not allocated to organizational units: Contingency 605,877 406,317 - 406,317 Transfers out 69,277 268,837 268,837 - Total expenditures 8,251,064 8,251,064 7,059,711 1,191,353 Net change in fund balances (1,580,677) (1,580,677) (227,970) 1,352,707 Fund balances, budget basis - beginning of year 3,100,000 3,100,000 3,238,905 138,905 Fund balances, budget basis - end of year 1,519,323$ 1,519,323$ 3,010,935 1,491,612$ Unrealized gain (loss) on investments (101,370) Fund balances, GAAP basis - end of year 2,909,565$ Budgeted Amounts -200- Deschutes County, Oregon Statewide Transportation Improvement Fund Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 4,294,819$ 4,294,819$ 1,870,942$ (2,423,877)$ Investment earnings 41,918 41,918 113,843 71,925 Total revenues 4,336,737 4,336,737 1,984,785 (2,351,952) EXPENDITURES Current: County roads 10,301,495 10,301,495 3,576,695 6,724,800 Total expenditures 10,301,495 10,301,495 3,576,695 6,724,800 Net change in fund balances (5,964,758) (5,964,758) (1,591,910) 4,372,848 Fund balances, budget basis - beginning of year 5,964,758 5,964,758 6,546,828 582,070 Fund balances, budget basis - end of year -$ -$ 4,954,918 4,954,918$ Unrealized gain (loss) on investments (186,430) Fund balances, GAAP basis - end of year 4,768,488$ Budgeted Amounts -201- Deschutes County, Oregon PERS Reserve Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 26,539$ 26,539$ 74,159$ 47,620$ Total revenues 26,539 26,539 74,159 47,620 EXPENDITURES Current: General government 101,100 101,100 1,700 99,400 Total expenditures 101,100 101,100 1,700 99,400 Net change in fund balances (74,561) (74,561) 72,459 147,020 Fund balances, budget basis - beginning of year 4,603,610 4,603,610 4,603,197 (413) Fund balances, budget basis - end of year 4,529,049$ 4,529,049$ 4,675,656 146,607$ Unrealized gain (loss) on investments (148,247) Fund balances, GAAP basis - end of year 4,527,409$ Budgeted Amounts -202- Deschutes County, Oregon Joint Houselessness Task Force Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services -$ -$ 10,633$ 10,633$ Intergovernmental 1,000,000 1,000,000 192,705 (807,295) Investment earnings - - 13,337 13,337 Total revenues 1,000,000 1,000,000 216,675 (783,325) EXPENDITURES Current: General government 500,000 500,000 203,338 296,662 Total expenditures 500,000 500,000 203,338 296,662 Net change in fund balances 500,000 500,000 13,337 (486,663) Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year 500,000$ 500,000$ 13,337 (486,663)$ Unrealized gain (loss) on investments (25,785) Fund balances, GAAP basis - end of year (12,448)$ Budgeted Amounts -203- Deschutes County, Oregon Deschutes County 9-1-1 County Service District Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 555,958$ 555,958$ 599,255$ 43,297$ Intergovernmental 2,638,371 2,638,371 2,699,883 61,512 Investment earnings 67,515 67,515 237,841 170,326 Taxes - property 10,482,834 10,482,834 10,584,002 101,168 Transfers in 1,750,000 1,750,000 1,750,000 - Total revenues 15,494,678 15,494,678 15,870,981 376,303 EXPENDITURES Current: Public safety 17,769,397 17,709,497 13,390,018 4,319,479 Not allocated to organizational units: Contingency 4,633,120 4,633,120 - 4,633,120 Transfers out 1,750,000 1,809,900 1,809,900 - Total expenditures 24,152,517 24,152,517 15,199,918 8,952,599 Net change in fund balances (8,657,839) (8,657,839) 671,063 9,328,902 Fund balances, budget basis - beginning of year 12,950,799 12,950,799 12,722,890 (227,909) Fund balances, budget basis - end of year 4,292,960$ 4,292,960$ 13,393,953 9,100,993$ Unrealized gain (loss) on investments (418,812) Fund balances, GAAP basis - end of year 12,975,141$ Budgeted Amounts -204- Deschutes County, Oregon Extension and 4-H Service District Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Investment earnings 2,671$ 2,671$ 9,067$ 6,396$ Taxes - property 653,684 653,684 659,447 5,763 Total revenues 656,355 656,355 668,514 12,159 EXPENDITURES Current: General government 681,758 681,758 634,854 46,904 Not allocated to organizational units: Contingency 272,559 272,559 - 272,559 Debt service 60,276 60,276 60,275 1 Total expenditures 1,014,593 1,014,593 695,129 319,464 Net change in fund balances (358,238) (358,238) (26,615) 331,623 Fund balances, budget basis - beginning of year 358,238 358,238 402,627 44,389 Fund balances, budget basis - end of year -$ -$ 376,012 376,012$ Unrealized gain (loss) on investments (15,294) Fund balances, GAAP basis - end of year 360,718$ Budgeted Amounts -205- Deschutes County, Oregon Deschutes County Road Agency Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental -$ 800,000$ 695,036$ (104,964)$ Total revenues - 800,000 695,036 (104,964) EXPENDITURES Current: County roads - 800,000 695,036 104,964 Total expenditures - 800,000 695,036 104,964 Net change in fund balances - - - - Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year -$ -$ - -$ Unrealized gain (loss) on investments - Fund balances, GAAP basis - end of year -$ Budgeted Amounts -206- Deschutes County, Oregon Campus Public Safety - Nonmajor Capital Projects Fund Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 560,000$ 775,000$ 967,272$ 192,272$ Investment earnings 37,206 37,206 161,956 124,750 Transfers in 9,450,444 9,968,704 10,038,704 70,000 Total revenues 10,047,650 10,780,910 11,167,932 387,022 EXPENDITURES Current: General government 18,225,000 18,958,260 13,246,869 5,711,391 Total expenditures 18,225,000 18,958,260 13,246,869 5,711,391 Net change in fund balances (8,177,350) (8,177,350) (2,078,937) 6,098,413 Fund balances, budget basis - beginning of year 8,177,350 8,177,350 8,706,706 529,356 Fund balances, budget basis - end of year -$ -$ 6,627,769 6,627,769$ Unrealized gain (loss) on investments (270,264) Retainage payable (490,771) Fund balances, GAAP basis - end of year 5,866,734$ Budgeted Amounts -207- Deschutes County, Oregon Full Faith & Credit Debt Service - Nonmajor Debt Service Fund Schedule of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 1,489,265$ 1,489,265$ 1,434,360$ (54,905)$ Intergovernmental 309,745 309,745 309,545 (200) Investment earnings 5,025 5,025 16,839 11,814 Rentals 1,251,542 1,251,542 1,261,687 10,145 Transfers in 1,790,146 1,790,146 1,485,577 (304,569) Total revenues 4,845,723 4,845,723 4,508,008 (337,715) EXPENDITURES Not allocated to organizational units: Debt service 4,796,154 4,796,154 4,478,965 317,189 Total expenditures 4,796,154 4,796,154 4,478,965 317,189 Net change in fund balances 49,569 49,569 29,043 (20,526) Fund balances, budget basis - beginning of year 400,458 400,458 390,537 (9,921) Fund balances, budget basis - end of year 450,027$ 450,027$ 419,580 (30,447)$ Unrealized gain (loss) on investments (13,316) Lease receivable 1,479,659 Unavailable lease revenue (1,436,857) Fund balances, GAAP basis - end of year 449,066$ Budgeted Amounts -208-     -209- Combining and Individual Funds Statements and Schedules – Proprietary Funds – Internal Service Funds – Fiduciary Funds For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -210- Deschutes County, Oregon Combining Statement of Net Position Internal Service Funds June 30, 2023 Board of Administrative County Finance Facilities Services Commissioners Finance Reserve ASSETS Current assets: Cash and cash equivalents 99,077$ 28,450$ 10,653$ -$ 6,562$ Investments, at fair value, plus accrued interest 650,923 186,917 69,992 - 43,107 Accounts receivable - - - - - Prepaid expenses 15,688 - - 180,334 - Lease receivable, current portion 200,532 - - - - Total current assets 966,220 215,367 80,645 180,334 49,669 Noncurrent assets: Lease receivable 318,451 - - - - Net OPEB RHIA asset 23,691 16,656 3,642 11,946 - Capital assets: Land improvements 155,977 - - - - Equipment 115,416 - 21,729 39,350 - Lease equipment 4,055 - - 12,682 - Vehicles 168,414 - - - - Intangible 12,834 - - 1,283,572 - Subscription assets - - 9,354 247,889 - Less accumulated depreciation and amortization (380,134) - (20,091) (786,602) - Total noncurrent assets 418,704 16,656 14,634 808,837 - Total assets 1,384,924 232,023 95,279 989,171 49,669 DEFERRED OUTFLOWS OF RESOURCES Pension plan 828,739 582,624 127,396 417,889 - OPEB County plan 68,742 48,327 10,567 34,663 - OPEB RHIA 2,237 1,572 344 1,128 - Total deferred outflows of resources 899,718 632,523 138,307 453,680 - TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 2,284,642$ 864,546$ 233,586$ 1,442,851$ 49,669$ LIABILITIES Current liabilities: Accounts payable 59,701$ 2,819$ 7,137$ 13,043$ -$ Payroll liabilities 73,516 40,718 13,448 38,482 - Due to other funds - - - 129,811 - Current portion of noncurrent liabilities 203,426 201,026 - 117,215 - Total current liabilities 336,643 244,563 20,585 298,551 - Noncurrent liabilities Compensated leave 219,454 218,507 - 53,133 - Lease payable 2,555 - - 6,635 - Net pension liability 1,599,388 1,124,410 245,861 806,485 - Total OPEB County plan liability 329,408 231,582 50,637 166,103 - Subscription liability - - - 182,859 - Accrued claims payable - - - - - Less current portion noncurrent liabilities (203,426) (201,026) - (117,215) - Total noncurrent liabilities 1,947,379 1,373,473 296,498 1,098,000 - Total liabilities 2,284,022 1,618,036 317,083 1,396,551 - DEFERRED INFLOWS OF RESOURCES Lease resources 503,328 - - - - Pension plan 499,636 351,257 76,804 251,939 - OPEB County plan 290,362 204,131 44,635 146,414 - OPEB RHIA 3,239 2,276 498 1,633 - Total deferred inflows of resources 1,296,565 557,664 121,937 399,986 - TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 3,580,587 2,175,700 439,020 1,796,537 - NET POSITION Net investment in capital assets 74,007 - 10,992 607,397 - Restricted for: Net OPEB RHIA asset 23,691 16,656 3,642 11,946 - Unrestricted (1,393,643) (1,327,810) (220,068) (973,029) 49,669 TOTAL NET POSITION (1,295,945)$ (1,311,154)$ (205,434)$ (353,686)$ 49,669$ -211- Human Information Information Health Legal Resources Technology Tech Reserve Insurance Benefits Total 24,826$ 27,695$ 63,419$ 144,354$ 1,205,628$ 1,032,046$ 2,642,710$ 163,105 181,960 416,656 948,392 7,920,856 6,780,438 17,362,346 - 45,257 - - - 834,620 879,877 - 1,308 8,913 - 37,421 - 243,664 - - - - - - 200,532 187,931 256,220 488,988 1,092,746 9,163,905 8,647,104 21,329,129 - - - - - - 318,451 12,884 15,189 28,874 - 3,718 - 116,600 - - - - 40,000 - 195,977 - - - 1,119,559 36,300 - 1,332,354 8,681 2,813 3,445 - - - 31,676 - - - 26,791 - - 195,205 - - - 53,692 - - 1,350,098 49,743 - - - - - 306,986 (20,798) (2,813) (2,175) (744,165) (58,300) - (2,015,078) 50,510 15,189 30,144 455,877 21,718 - 1,832,269 238,441 271,409 519,132 1,548,623 9,185,623 8,647,104 23,161,398 450,696 531,308 1,010,036 - 130,068 - 4,078,756 37,384 44,071 83,779 - 10,789 - 338,322 1,216 1,433 2,725 - 351 - 11,006 489,296 576,812 1,096,540 - 141,208 - 4,428,084 727,737$ 848,221$ 1,615,672$ 1,548,623$ 9,326,831$ 8,647,104$ 27,589,482$ 1,740$ 110,793$ 46,361$ 20,132$ 128,104$ 1,166,304$ 1,556,134$ 38,469 38,093 77,918 - 11,337 - 331,981 - - - - - - 129,811 196,263 132,196 339,702 - 3,192,089 1,628,618 6,010,535 236,472 281,082 463,981 20,132 3,331,530 2,794,922 8,028,461 193,623 143,691 367,852 - 26,772 - 1,223,032 5,631 - 1,277 - - - 16,098 869,798 1,025,372 1,949,273 - 251,017 - 7,871,604 179,142 211,184 401,470 - 51,699 - 1,621,225 15,325 - - - - - 198,184 - - - - 6,334,918 1,628,618 7,963,536 (196,263) (132,196) (339,702) - (3,192,089) (1,628,618) (6,010,535) 1,067,256 1,248,051 2,380,170 - 3,472,317 - 12,883,144 1,303,728 1,529,133 2,844,151 20,132 6,803,847 2,794,922 20,911,605 - - - - - - 503,328 271,718 320,318 608,937 - 78,415 - 2,459,024 157,909 186,152 353,882 - 45,571 - 1,429,056 1,761 2,076 3,946 - 509 - 15,938 431,388 508,546 966,765 - 124,495 - 4,407,346 1,735,116 2,037,679 3,810,916 20,132 6,928,342 2,794,922 25,318,951 16,670 - (7) 455,877 18,000 - 1,182,936 12,884 15,189 28,874 - 3,718 - 116,600 (1,036,933) (1,204,647) (2,224,111) 1,072,614 2,376,771 5,852,182 970,995 (1,007,379)$ (1,189,458)$ (2,195,244)$ 1,528,491$ 2,398,489$ 5,852,182$ 2,270,531$ -212- Board of Administrative County Finance Facilities Services Commissioners Finance Reserve OPERATING REVENUES Charges for services 4,631,616$ 1,737,058$ 398,217$ 2,178,937$ 261,257$ Total operating revenues 4,631,616 1,737,058 398,217 2,178,937 261,257 OPERATING EXPENSES Personnel 2,378,243 1,936,917 482,511 1,252,703 59,443 Materials and services 1,604,213 280,445 252,471 880,283 - Depreciation and amortization 12,972 - 9,226 192,908 - Total operating expenses 3,995,428 2,217,362 744,208 2,325,894 59,443 Operating income (loss) 636,188 (480,304) (345,991) (146,957) 201,814 NONOPERATING REVENUES (EXPENSES) Interest expense (30) - - (83) - Investment earnings (losses) (188,735) 7,300 3,782 787 5,820 Gain (loss) on sale of assets - - - - - Total nonoperating revenues (expenses) (188,765) 7,300 3,782 704 5,820 Income (loss) before transfers 447,423 (473,004) (342,209) (146,253) 207,634 TRANSFERS Transfers in - 236,579 301,626 - - Transfers out (71,810) - (3,715) - (260,439) Net other financing sources (uses) (71,810) 236,579 297,911 - (260,439) Change in net position 375,613 (236,425) (44,298) (146,253) (52,805) Net position - beginning of year (1,671,558) (1,074,729) (161,136) (207,433) 102,474 Net position - end of year (1,295,945)$ (1,311,154)$ (205,434)$ (353,686)$ 49,669$ Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Fiscal Year Ended June 30, 2023 -213- Human Information Information Health Legal Resources Technology Tech Reserve Insurance Benefits Total 1,549,533$ 1,777,330$ 3,483,804$ 223,908$ 3,149,082$ 25,316,270$ 44,707,012$ 1,549,533 1,777,330 3,483,804 223,908 3,149,082 25,316,270 44,707,012 1,498,727 1,577,383 2,772,090 - 414,478 - 12,372,495 133,940 402,760 848,426 66,090 3,439,648 29,659,489 37,567,765 20,798 2,813 2,175 128,264 1,333 - 370,489 1,653,465 1,982,956 3,622,691 194,354 3,855,459 29,659,489 50,310,749 (103,932) (205,626) (138,887) 29,554 (706,377) (4,343,219) (5,603,737) - - - - - - (113) 3,816 3,060 8,751 19,240 145,874 406,736 416,431 - - - (6,949) - - (6,949) 3,816 3,060 8,751 12,291 145,874 406,736 409,369 (100,116) (202,566) (130,136) 41,845 (560,503) (3,936,483) (5,194,368) - - - - - - 538,205 - - (10,848) - (3,500) - (350,312) - - (10,848) - (3,500) - 187,893 (100,116) (202,566) (140,984) 41,845 (564,003) (3,936,483) (5,006,475) (907,263) (986,892) (2,054,260) 1,486,646 2,962,492 9,788,665 7,277,006 (1,007,379)$ (1,189,458)$ (2,195,244)$ 1,528,491$ 2,398,489$ 5,852,182$ 2,270,531$ -214- Board of Administrative County Finance Facilities Services Commissioners Finance Reserve CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 4,647,315$ 1,737,058$ 398,217$ 2,172,338$ 261,257$ Payments to employees (2,588,647) (1,737,089) (486,841) (1,216,462) (131,526) Payments to suppliers (1,867,397) (279,649) (248,508) (901,296) - Net cash provided (used) by operating activities 191,271 (279,680) (337,132) 54,580 129,731 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in - 236,579 301,626 - - Transfers out (71,810) - (3,715) - (260,439) Net cash provided (used) by noncapital financing activities (71,810) 236,579 297,911 - (260,439) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (12,182) - - - - Payments for leases (1,515) - - (6,091) - Interest paid on leases (30) - - (83) - Proceeds from leases (10,518) - - - - Payments for subscriptions - - (9,354) (65,030) - Due to other funds - - - 99,319 - Net cash provided (used) by capital and related financing activities (24,245) - (9,354) 28,115 - CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (182,133) (1,805) 23,228 (83,079) 88,409 Interest 13,762 6,160 2,441 384 2,161 Net cash provided (used) by investing activities (168,371) 4,355 25,669 (82,695) 90,570 Net increase (decrease) in cash & cash equivalents (73,155) (38,746) (22,906) - (40,138) Balances - beginning of year 172,232 67,196 33,559 - 46,700 Balances - end of year 99,077$ 28,450$ 10,653$ -$ 6,562$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) 636,188$ (480,304)$ (345,991)$ (146,957)$ 201,814$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Amortization of deferred lease resources (199,742) - - - - Depreciation and amortization expense 12,972 - 9,226 192,908 - Change in operating accruals: Receivables 15,699 - - - - Prepaid expenses - - - (6,599) - Accounts payable (63,442) 796 3,963 (21,013) - Payroll liabilities 73,516 40,718 13,448 38,482 - Claims payable - - - - - Compensated leave 24,133 27,725 - 32,181 (2,714) Net OPEB RHIA asset (22,689) (15,952) (3,488) (11,441) - Net OPEB liability (703,128) (390,891) (104,284) (287,372) (36,336) Net pension liability 417,764 538,228 89,994 264,391 (33,033) Net cash provided (used) by operating activities 191,271$ (279,680)$ (337,132)$ 54,580$ 129,731$ NONCASH INVESTING ACTIVITIES Change in fair value of investments (4,540)$ (407,427)$ (8,942)$ 7,672$ (4,423)$ Lease receivable for deferred inflow of resources 374,633$ -$ -$ -$ -$ For the Fiscal Year Ended June 30, 2023 Combining Statement of Cash Flows Deschutes County, Oregon Internal Service Funds -215- Human Information Health Legal Resources Technology IT Reserve Insurance Benefits Total 1,549,533$ 1,782,565$ 3,480,778$ 257,978$ 3,111,661$ 24,481,650$ 43,880,350$ (1,356,524) (1,355,572) (2,609,027) - (359,871) - (11,841,559) (133,242) (383,409) (810,819) (68,420) (2,944,782) (32,148,342) (39,785,864) 59,767 43,584 60,932 189,558 (192,992) (7,666,692) (7,747,073) - - - - - - 538,205 - - (10,848) - (3,500) - (350,312) - - (10,848) - (3,500) - 187,893 - - - (262,077) - - (274,259) (2,718) (2,814) (2,161) (1) - - (15,300) (65) (4) (17) - - (199) - - - - - - (10,518) (34,418) - - - - - (108,802) - - - - - - 99,319 (37,201) (2,818) (2,178) (262,078) - - (309,759) (45,460) (61,678) (103,253) (106,924) (1,193,359) 4,474,527 2,808,473 4,500 4,242 5,488 17,198 140,299 191,832 388,467 (40,960) (57,436) (97,765) (89,726) (1,053,060) 4,666,359 3,196,940 (18,394) (16,670) (49,859) (162,246) (1,249,552) (3,000,333) (4,671,999) 43,220 44,365 113,278 306,600 2,455,180 4,032,379 7,314,709 24,826$ 27,695$ 63,419$ 144,354$ 1,205,628$ 1,032,046$ 2,642,710$ (103,932)$ (205,626)$ (138,887)$ 29,554$ (706,377)$ (4,343,219)$ (5,603,737)$ - - - - - - (199,742) 20,798 2,813 2,175 128,264 1,333 - 370,489 - 5,321 - - - (834,620) (813,600) - (86) (3,026) 34,070 (37,421) - (13,062) 698 19,351 37,607 (2,330) (400,261) (3,088,425) (3,513,056) 38,469 38,093 77,918 - 11,337 - 331,981 - - - - 895,127 599,572 1,494,699 51,969 7,074 (1,829) - 10,877 - 149,416 (12,339) (14,546) (27,653) - (3,560) - (111,668) (363,885) (300,652) (842,092) - (82,362) - (3,111,002) 427,989 491,842 956,719 - 118,315 - 3,272,209 59,767$ 43,584$ 60,932$ 189,558$ (192,992)$ (7,666,692)$ (7,747,073)$ (29,986)$ (1,188)$ (9,326)$ (3,779)$ 1,055$ 1,408$ (459,476)$ -$ -$ -$ -$ -$ -$ 374,633$ -216- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 4,418,482$ 4,418,482$ 4,436,765$ 18,283$ Investment earnings 5,364 5,364 14,786 9,422 Total revenues 4,423,846 4,423,846 4,451,551 27,705 EXPENDITURES Current: County services 4,792,675 4,792,675 4,295,511 497,164 Not allocated to organizational units: Contingency 176,723 176,723 - 176,723 Transfers out 71,810 71,810 71,810 - Total expenditures 5,041,208 5,041,208 4,367,321 673,887 Net change in fund balances (617,362) (617,362) 84,230 701,592 Fund balances, budget basis - beginning of year 617,362 617,362 572,799 (44,563) Fund balances, budget basis - end of year -$ -$ 657,029 657,029$ Unrealized gain (loss) on investments (24,558) Lease receivable 518,983 Capital assets (net of accumulated depreciation and amortization)76,562 Deferred outflows of resources - OPEB RHIA 2,237 Deferred outflows of resources - OPEB 68,742 Deferred outflows of resources - pension 828,739 Accrued compensated leave (219,454) Lease payable (2,555) Other postemployment benefits - RHIA 23,691 Other postemployment benefits (329,408) Net pension liability (1,599,388) Deferred inflows of resources - leases (503,328) Deferred inflows of resources - OPEB RHIA (3,239) Deferred inflows of resources - OPEB (290,362) Deferred inflows of resources - pension (499,636) Net position, GAAP basis - end of year (1,295,945)$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Facilities For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -217- Deschutes County, Oregon Administrative Services For the Fiscal Year Ended June 30, 2023 Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 1,746,559$ 1,746,559$ 1,737,058$ (9,501)$ Investment earnings 2,261 2,261 6,245 3,984 Transfers in 236,579 236,579 236,579 - Total revenues 1,985,399 1,985,399 1,979,882 (5,517) EXPENDITURES Current: County services 2,171,634 2,171,634 2,058,251 113,383 Not allocated to organizational units: Contingency 63,157 63,157 - 63,157 Total expenditures 2,234,791 2,234,791 2,058,251 176,540 Net change in fund balances (249,392) (249,392) (78,369) 171,023 Fund balances, budget basis - beginning of year 249,392 249,392 257,251 7,859 Fund balances, budget basis - end of year -$ -$ 178,882 178,882$ Unrealized gain (loss) on investments (7,052) Deferred outflows of resources - OPEB RHIA 1,572 Deferred outflows of resources - OPEB 48,327 Deferred outflows of resources - pension 582,624 Accrued compensated leave (218,507) Other postemployment benefits - RHIA 16,656 Other postemployment benefits (231,582) Net pension liability (1,124,410) Deferred inflows of resources - OPEB RHIA (2,276) Deferred inflows of resources - OPEB (204,131) Deferred inflows of resources - pension (351,257) Net position, GAAP basis - end of year (1,311,154)$ Budgeted Amounts Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -218- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 398,218$ 398,218$ 398,217$ (1)$ Investment earnings 821 821 2,374 1,553 Transfers in 301,626 301,626 301,626 - Total revenues 700,665 700,665 702,217 1,552 EXPENDITURES Current: County services 782,440 782,440 762,113 20,327 Not allocated to organizational units: Contingency 23,764 23,764 - 23,764 Transfers out 3,715 3,715 3,715 - Total expenditures 809,919 809,919 765,828 44,091 Net change in fund balances (109,254) (109,254) (63,611) 45,643 Fund balances, budget basis - beginning of year 109,254 109,254 126,312 17,058 Fund balances, budget basis - end of year -$ -$ 62,701 62,701$ Unrealized gain (loss) on investments (2,641) Capital assets (net of accumulated depreciation and amortization)10,992 Deferred outflows of resources - OPEB RHIA 344 Deferred outflows of resources - OPEB 10,567 Deferred outflows of resources - pension 127,396 Other postemployment benefits - RHIA 3,642 Other postemployment benefits (50,637) Net pension liability (245,861) Deferred inflows of resources - OPEB RHIA (498) Deferred inflows of resources - OPEB (44,635) Deferred inflows of resources - pension (76,804) Net position, GAAP basis - end of year (205,434)$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Board of County Commissioners For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -219- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 2,209,383$ 2,209,383$ 2,178,937$ (30,446)$ Investment earnings 260 260 215 (45) Total revenues 2,209,643 2,209,643 2,179,152 (30,491) EXPENDITURES Current: County services 2,255,009 2,295,009 2,206,431 88,578 Not allocated to organizational units: Contingency 67,373 27,373 - 27,373 Total expenditures 2,322,382 2,322,382 2,206,431 115,951 Net change in fund balances (112,739) (112,739) (27,279) 85,460 Fund balances, budget basis - beginning of year 112,739 112,739 22,026 (90,713) Fund balances, budget basis - end of year -$ -$ (5,253) (5,253)$ Unrealized gain (loss) on investments 4,251 Capital assets (net of accumulated depreciation and amortization) 796,891 Deferred outflows of resources - OPEB RHIA 1,128 Deferred outflows of resources - OPEB 34,663 Deferred outflows of resources - pension 417,889 Accrued compensated leave (53,133) Lease payable (6,635) Subscription liabilities (182,859) Other postemployment benefits - RHIA 11,946 Other postemployment benefits (166,103) Net pension liability (806,485) Deferred inflows of resources - OPEB RHIA (1,633) Deferred inflows of resources - OPEB (146,414) Deferred inflows of resources - pension (251,939) Net position, GAAP basis - end of year (353,686)$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Finance For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -220- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 261,257$ 261,257$ 261,257$ -$ Investment earnings 1,439 1,439 1,812 373 Total revenues 262,696 262,696 263,069 373 EXPENDITURES Current: County services 177,155 177,155 131,526 45,629 Not allocated to organizational units: Transfers out 260,439 260,439 260,439 - Total expenditures 437,594 437,594 391,965 45,629 Net change in fund balances (174,898) (174,898) (128,896) 46,002 Fund balances, budget basis - beginning of year 174,898 174,898 180,191 5,293 Fund balances, budget basis - end of year -$ -$ 51,295 51,295$ Unrealized gain (loss) on investments (1,626) Net position, GAAP basis - end of year 49,669$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual Finance Reserve For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -221- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 1,547,532$ 1,547,532$ 1,549,533$ 2,001$ Investment earnings 860 860 4,756 3,896 Total revenues 1,548,392 1,548,392 1,554,289 5,897 EXPENDITURES Current: County services 1,620,105 1,620,105 1,566,134 53,971 Not allocated to organizational units: Contingency 48,540 48,540 - 48,540 Total expenditures 1,668,645 1,668,645 1,566,134 102,511 Net change in fund balances (120,253) (120,253) (11,845) 108,408 Fund balances, budget basis - beginning of year 120,253 120,253 165,721 45,468 Fund balances, budget basis - end of year -$ -$ 153,876 153,876$ Unrealized gain (loss) on investments (6,154) Capital assets (net of accumulated depreciation and amortization)37,626 Deferred outflows of resources - OPEB RHIA 1,216 Deferred outflows of resources - OPEB 37,384 Deferred outflows of resources - pension 450,696 Accrued compensated leave (193,623) Lease payable (5,631) Subscription liabilities (15,325) Other postemployment benefits - RHIA 12,884 Other postemployment benefits (179,142) Net pension liability (869,798) Deferred inflows of resources - OPEB RHIA (1,761) Deferred inflows of resources - OPEB (157,909) Deferred inflows of resources - pension (271,718) Net position, GAAP basis - end of year (1,007,379)$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual Legal For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -222- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 1,777,416$ 1,777,416$ 1,777,330$ (86)$ Investment earnings 946 946 4,573 3,627 Total revenues 1,778,362 1,778,362 1,781,903 3,541 EXPENDITURES Current: County services 1,865,947 1,865,947 1,799,244 66,703 Not allocated to organizational units: Contingency 74,728 74,728 - 74,728 Total expenditures 1,940,675 1,940,675 1,799,244 141,431 Net change in fund balances (162,313) (162,313) (17,341) 144,972 Fund balances, budget basis - beginning of year 162,313 162,313 131,540 (30,773) Fund balances, budget basis - end of year -$ -$ 114,199 114,199$ Unrealized gain (loss) on investments (6,865) Deferred outflows of resources - OPEB RHIA 1,433 Deferred outflows of resources - OPEB 44,071 Deferred outflows of resources - pension 531,308 Accrued compensated leave (143,691) Other postemployment benefits - RHIA 15,189 Other postemployment benefits (211,184) Net pension liability (1,025,372) Deferred inflows of resources - RHIA (2,076) Deferred inflows of resources - OPEB (186,152) Deferred inflows of resources - pension (320,318) Net position, GAAP basis - end of year (1,189,458)$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual Human Resources For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -223- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 3,484,354$ 3,484,354$ 3,483,804$ (550)$ Investment earnings 2,520 2,520 10,805 8,285 Total revenues 3,486,874 3,486,874 3,494,609 7,735 EXPENDITURES Current: County services 3,709,086 3,709,086 3,537,550 171,536 Not allocated to organizational units: Contingency 111,163 106,783 - 106,783 Transfers out 6,468 10,848 10,848 - Total expenditures 3,826,717 3,826,717 3,548,398 278,319 Net change in fund balances (339,843) (339,843) (53,789) 286,054 Fund balances, budget basis - beginning of year 339,843 339,843 434,218 94,375 Fund balances, budget basis - end of year -$ -$ 380,429 380,429$ Unrealized gain (loss) on investments (15,720) Capital assets (net of accumulated depreciation and amortization)1,270 Deferred outflows of resources - OPEB RHIA 2,725 Deferred outflows of resources - OPEB 83,779 Deferred outflows of resources - pension 1,010,036 Accrued compensated leave (367,852) Lease payable (1,277) Other postemployment benefits - RHIA 28,874 Other postemployment benefits (401,470) Net pension liability (1,949,273) Deferred inflows of resources - OPEB RHIA (3,946) Deferred inflows of resources - OPEB (353,882) Deferred inflows of resources - pension (608,937) Net position, GAAP basis - end of year (2,195,244)$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual Information Technology For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -224- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 164,002$ 164,002$ 223,908$ 59,906$ Investment earnings 6,301 6,301 18,032 11,731 Total revenues 170,303 170,303 241,940 71,637 EXPENDITURES Current: County services 513,500 513,500 328,168 185,332 Total expenditures 513,500 513,500 328,168 185,332 Net change in fund balances (343,197) (343,197) (86,228) 256,969 Fund balances, budget basis - beginning of year 722,507 722,507 1,194,623 472,116 Fund balances, budget basis - end of year 379,310$ 379,310$ 1,108,395 729,085$ Unrealized gain (loss) on investments (35,781) Capital assets (net of accumulated depreciation and amortization)455,877 Net position, GAAP basis - end of year 1,528,491$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual Information Technology Reserve For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -225- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 3,262,131$ 3,262,131$ 3,149,082$ (113,049)$ Investment earnings 49,346 49,346 148,514 99,168 Total revenues 3,311,477 3,311,477 3,297,596 (13,881) EXPENDITURES Current: County services 5,887,806 5,887,806 2,915,729 2,972,077 Not allocated to organizational units: Contingency 5,107,351 5,107,351 - 5,107,351 Transfers out 3,500 3,500 3,500 - Total expenditures 10,998,657 10,998,657 2,919,229 8,079,428 Net change in fund balances (7,687,180) (7,687,180) 378,367 8,065,547 Fund balances, budget basis - beginning of year 7,687,180 7,687,180 8,944,938 1,257,758 Fund balances, budget basis - end of year -$ -$ 9,323,305 9,323,305$ Unrealized gain (loss) on investments (298,841) Capital assets (net of accumulated depreciation and amortization)18,000 Deferred outflows of resources - OPEB RHIA 351 Deferred outflows of resources - OPEB 10,789 Deferred outflows of resources - pension 130,068 Accrued compensated leave (26,772) Other postemployment benefits - RHIA 3,718 Other postemployment benefits (51,699) Net pension liability (251,017) Accrued claims payable (6,334,918) Deferred inflows of resources - OPEB RHIA (509) Deferred inflows of resources - OPEB (45,571) Deferred inflows of resources - pension (78,415) Net position, GAAP basis - end of year 2,398,489$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual Insurance For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -226- Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 23,563,014$ 23,563,014$ 25,316,270$ 1,753,256$ Investment earnings 95,686 95,686 176,071 80,385 Total revenues 23,658,700 23,658,700 25,492,341 1,833,641 EXPENDITURES Current: County services 26,769,217 31,769,217 30,688,535 1,080,682 Not allocated to organizational units: Contingency 8,815,139 3,815,139 - 3,815,139 Total expenditures 35,584,356 35,584,356 30,688,535 4,895,821 Net change in fund balances (11,925,656) (11,925,656) (5,196,194) 6,729,462 Fund balances, budget basis - beginning of year 11,925,656 11,925,656 11,304,191 (621,465) Fund balances, budget basis - end of year -$ -$ 6,107,997 6,107,997$ Unrealized gain (loss) on investments (255,815) Net position, GAAP basis - end of year 5,852,182$ Deschutes County, Oregon Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Health Benefits For the Fiscal Year Ended June 30, 2023 Budgeted Amounts -227-     -228- Taxes Miscellaneous Total and Custodial Custodial Fees Funds Funds ASSETS Cash and cash equivalents 426,011$ 461,823$ 887,834$ Investments, at fair value; plus accrued interest 2,798,843 3,034,136 5,832,979 Taxes receivable for other governments 6,078,951 - 6,078,951 Accounts receivable 90,838 - 90,838 Notes receivable 1,048,730 - 1,048,730 Total assets 10,443,373 3,495,959 13,939,332 LIABILITIES Accounts payable 25,681 111,744 137,425 Deposits 395,419 2,357,985 2,753,404 Due to other governments 6,896,425 1,095,468 7,991,893 Total liabilities 7,317,525 3,565,197 10,882,722 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - land auction sales 1,048,730 - 1,048,730 Total deferred inflows of resources 1,048,730 - 1,048,730 NET POSITION Restricted for: Individuals, organizations, and other governments 2,115,573 43,801 2,159,374 Unrestricted (38,455) (113,039) (151,494) Total net position 2,077,118$ (69,238)$ 2,007,880$ The notes to the financial statements are an integral part of this statement. Combining Statement of Fiduciary Net Position June 30, 2023 Deschutes County, Oregon Fiduciary Funds -229- Taxes Miscellaneous Total and Custodial Custodial Fees Funds Funds ADDITIONS Investment earnings Interest on land sale loans 52,124$ -$ 52,124$ Net increase in fair value of investments 149,208 52,489 201,697 Property tax collections for other governments 473,331,546 - 473,331,546 Fines, forfeitures and penalties 289,414 862,758 1,152,172 Rents 34,500 - 34,500 Collections for services provided to other governments 106,639 - 106,639 Charges for services 3,094,478 - 3,094,478 Other 287 - 287 Total additions 477,058,196 915,247 477,973,443 DEDUCTIONS Payment of property taxes to other governments 473,420,651 - 473,420,651 Payment of services to other governments - 847,987 847,987 Public safety 4,074,942 - 4,074,942 Total deductions 477,495,593 847,987 478,343,580 Change in Fiduciary net position (437,397) 67,260 (370,137) Net position - beginning of year 2,514,515 (136,498) 2,378,017 Net position - end of year 2,077,118$ (69,238)$ 2,007,880$ The notes to the financial statements are an integral part of this statement. Deschutes County, Oregon Fiduciary Funds Combining Statement of Changes in Fiduciary Net Position Fiscal Year Ended June 30, 2023 -230-     -231- Other Financial Schedules For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -232- Deschutes County, Oregon Schedule of Property Tax Transactions - All County Taxes June 30, 2023 Tax Year Beginning Balance and FY 2023 Levy Adjustments Interest (Discount) Turnovers from County Treasurer Taxes Receivable June 30, 2023 FY 2013 & Prior 79,249$ 1,519$ 2,021$ 5,267$ 77,522$ FY 2014 12,295 - 1,058 2,265 11,088 FY 2015 24,506 (579) 1,185 3,153 21,959 FY 2016 (27,560) (575) 2,356 6,183 (31,962) FY 2017 33,813 (807) 7,011 17,887 22,130 FY 2018 82,177 (16,744) 15,383 41,117 39,699 FY 2019 240,628 (72,741) 110,424 205,878 72,433 FY 2020 838,165 (53,395) 196,029 677,987 302,812 FY 2021 1,479,008 (124,510) 224,147 696,465 882,180 FY 2022 3,988,133 (133,249) 52,864 2,131,928 1,775,820 FY 2023 484,010,620 (252,493) (12,770,539) 466,598,351 4,389,237 TOTALS 490,761,034$ (653,574)$ (12,158,061)$ 470,386,481 7,562,918$ Other Distributions: Interest earned on unsegregated taxes 146,991 Other tax distribution and credits 1,574,654 TOTAL CASH COLLECTIONS 472,108,126$ Summary of Taxes Receivable at June 30, 2023: Deschutes County General Fund 592,249$ Special Revenue Funds 891,718 Other Taxing Jurisdictions 6,078,951 7,562,918$ -233- Deschutes County, Oregon Schedule of Long-Term Debt Principal Transactions Year Ended June 30, 2023 Final Amount of Outstanding Bonds Outstanding Date of Maturity Original July 1,Bonds Called and June 30, Series Issue Date Issue 2022 Issued Matured 2023 Pension Bonds Series 2002 03/28/2002 06/01/2028 5,429,586$ 2,870,000$ -$ 480,000$ 2,390,000$ Series 2004 05/27/2004 06/01/2028 7,090,000 4,000,000 - 560,000 3,440,000 Total Pension Bonds 12,519,586 6,870,000 - 1,040,000 5,830,000 Bonds Series 2013 08/08/2013 06/01/2038 8,405,000 6,220,000 - 285,000 5,935,000 Refunding Series 2019 03/12/2019 06/01/2028 6,455,000 4,610,000 - 680,000 3,930,000 Refunding Series 2021 09/02/2021 12/01/2032 - 15,325,000 - 1,415,000 13,910,000 Series 2022 08/30/2022 06/01/2043 18,220,000 - 18,220,000 - 18,220,000 Total Bonds 33,080,000 26,155,000 18,220,000 2,380,000 41,995,000 Notes from Direct Borrowings Refunding Series 2015 12/08/2015 12/01/2026 3,775,000 1,371,600 - 426,600 945,000 Refunding Series 2016 05/25/2016 06/01/2027 6,277,000 3,000,000 - 580,000 2,420,000 Total Notes 10,052,000 4,371,600 - 1,006,600 3,365,000 Total Long-Term Debt 55,651,586$ 37,396,600$ 18,220,000$ 4,426,600$ 51,190,000$ -234- Deschutes County, Oregon Schedule of Long-Term Debt Interest Transactions Year Ended June 30, 2023 Interest Rates on Outstanding Coupons Outstanding Outstanding June 30, Bonds Called and June 30, Series Balances 2022 Issued Matured 2023 Pension Bonds Series 2002 6.85% 720,620$ -$ 196,595$ 524,025$ Series 2004 5.35% - 6.095% 861,995 - 243,352 618,643 Total Pension Bonds 1,582,615 - 439,947 1,142,668 Bonds Series 2013 3.25 - 4.5% 2,504,387 - 260,356 2,244,031 Refunding Series 2019 5.00% 838,000 - 230,500 607,500 Refunding Series 2021 1.41% 1,210,662 - 206,107 1,004,555 Series 2022 3.30% - 11,703,531 685,781 11,017,750 Total Bonds 4,553,049 11,703,531 1,382,744 14,873,836 Notes from Direct Borrowings Refunding Series 2015 1.99-2.49% 55,744 - 28,842 26,902 Refunding Series 2016 1.68% 152,796 - 50,400 102,396 Total Notes 208,540 - 79,242 129,298 Total Long-Term Debt 6,344,204$ 11,703,531$ 1,901,933$ 16,145,802$ -235- Deschutes County, Oregon Schedule of Future Debt Service Requirements of Pension Obligation Bonds June 30, 2023 Total Requirements Series 2002 Series 2004 Year of Maturity Principal Interest Total Principal Interest Principal Interest 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 1,640,000 160,867 1,800,867 770,000 79,803 870,000 81,064 2028 855,000 55,093 910,093 395,000 27,057 460,000 28,036 5,830,000$ 1,142,668$ 6,972,668$ 2,390,000$ 524,025$ 3,440,000$ 618,643$ -236- Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Governmental Activities June 30, 2023 Total Requirements Series 2013 Year of Maturity Principal Interest Total Principal Interest 2024 2,260,889$ 602,893$ 2,863,782$ 295,000$ 250,381$ 2025 2,328,350 535,070 2,863,420 305,000 238,581 2026 2,165,414 467,662 2,633,076 320,000 226,381 2027 2,222,240 400,576 2,622,816 330,000 213,581 2028 2,289,066 331,174 2,620,240 345,000 200,381 2029 1,459,834 258,978 1,718,812 360,000 186,581 2030 1,494,545 228,931 1,723,476 375,000 172,181 2031 1,525,313 198,035 1,723,348 390,000 157,181 2032 1,563,965 166,260 1,730,225 405,000 141,581 2033 1,590,792 133,130 1,723,922 420,000 124,875 2034 435,000 107,550 542,550 435,000 107,550 2035 455,000 87,975 542,975 455,000 87,975 2036 480,000 67,500 547,500 480,000 67,500 2037 500,000 45,900 545,900 500,000 45,900 2038 520,000 23,402 543,402 520,000 23,402 21,290,408$ 3,655,036$ 24,945,444$ 5,935,000$ 2,244,031$ -237- Direct Borrowing-2015 Series 2019 Ref Series 2021 Principal Interest Principal Interest Principal Interest 225,954$ 8,606$ 715,000$ 196,500$ 1,024,935$ 147,406$ 232,646 2,896 750,000 160,750 1,040,704 132,843 - - 785,000 123,250 1,060,414 118,031 - - 820,000 84,000 1,072,240 102,995 - - 860,000 43,000 1,084,066 87,793 - - - - 1,099,834 72,397 - - - - 1,119,545 56,750 - - - - 1,135,313 40,854 - - - - 1,158,965 24,679 - - - - 1,170,792 8,255 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 458,600$ 11,502$ 3,930,000$ 607,500$ 10,966,808$ 792,003$ -238- Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Business Type Activities June 30, 2023 Year of Maturity Principal Interest Total Principal Interest 2024 1,624,311$ 1,000,735$ 2,625,046$ 208,246$ 9,519$ 2025 1,673,550 954,150 2,627,700 213,254 4,271 2026 1,532,286 908,015 2,440,301 32,700 1,209 2027 1,577,960 862,675 2,440,635 32,200 401 2028 960,934 815,811 1,776,745 - - 2029 1,000,166 778,179 1,778,345 - - 2030 1,040,455 738,730 1,779,185 - - 2031 1,079,687 697,464 1,777,151 - - 2032 1,126,035 654,373 1,780,408 - - 2033 1,169,208 609,216 1,778,424 - - 2034 900,000 564,250 1,464,250 - - 2035 940,000 519,250 1,459,250 - - 2036 990,000 472,250 1,462,250 - - 2037 1,040,000 422,750 1,462,750 - - 2038 1,090,000 370,750 1,460,750 - - 2039 1,145,000 316,250 1,461,250 - - 2040 1,200,000 259,000 1,459,000 - - 2041 1,265,000 199,000 1,464,000 - - 2042 1,325,000 135,750 1,460,750 - - 2043 1,390,000 69,500 1,459,500 - - 24,069,592$ 11,348,098$ 35,417,690$ 486,400$ 15,400$ Total Requirements Direct Borrowing - 2015 -239- Principal Interest Principal Interest Principal Interest 591,000$ 40,656$ 275,065$ 39,560$ 550,000$ 911,000$ 601,000 30,727 279,296 35,652 580,000 883,500 610,000 20,630 284,586 31,676 605,000 854,500 618,000 10,383 287,760 27,641 640,000 824,250 - - 290,934 23,561 670,000 792,250 - - 295,166 19,429 705,000 758,750 - - 300,455 15,230 740,000 723,500 - - 304,687 10,964 775,000 686,500 - - 311,035 6,623 815,000 647,750 - - 314,208 2,216 855,000 607,000 - - - - 900,000 564,250 - - - - 940,000 519,250 - - - - 990,000 472,250 - - - - 1,040,000 422,750 - - - - 1,090,000 370,750 - - - - 1,145,000 316,250 - - - - 1,200,000 259,000 - - - - 1,265,000 199,000 - - - - 1,325,000 135,750 - - - - 1,390,000 69,500 2,420,000$ 102,396$ 2,943,192$ 212,552$ 18,220,000$ 11,017,750$ Refunding Series 2021 Series 2022Direct Borrowing - 2016 -240-     -241- Statistical Section For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -242-     -243- Deschutes County, Oregon Statistical Section Contents June 30, 2023 This is part of the Deschutes County’s statistical annual comprehensive 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 These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed over time. 245 - 254 Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local revenue source, property taxes. 255 - 260 Debt Capacity These schedules present information to help the reader assess the affordability of the County’s current level of outstanding debt and the County’s ability to issue additional debt in the future. 261 - 269 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment in which the County’s financial activities take place. 270 - 271 Operating Information 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. 272 - 275 Sources: Unless otherwise noted, the information in these schedules is derived from the published annual comprehensive 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 65, unless otherwise noted. -244- Governmental activities Net investment in capital assets 90,528,453$ 91,385,492$ 101,724,105$ 108,576,334$ Restricted 899,558 57,774,179 60,999,381 60,223,775 Unrestricted 85,864,467 13,564,091 (9,004,273) (10,585,809) Total governmental activities net position 177,292,478$ 162,723,762$ 153,719,213$ 158,214,300$ Business-type activities Net investment in capital assets 27,996,595$ 31,628,810$ 33,549,044$ 35,249,434$ Restricted 326,767 416,356 257,743 - Unrestricted (1,578,435) (3,620,616) (4,431,920) (3,895,146) Total business-type activities net position 26,744,927$ 28,424,550$ 29,374,867$ 31,354,288$ Primary government Net investment in capital assets 118,525,048$ 123,014,302$ 135,273,150$ 143,825,768$ Restricted 1,226,325 58,190,535 61,257,124 60,223,775 Unrestricted 84,286,032 9,943,475 (13,436,194) (14,480,955) Total primary government net position 204,037,405$ 191,148,312$ 183,094,080$ 189,568,588$ Deschutes County, Oregon (accrual basis of accounting) Net Position by Component - Last Ten Fiscal Years Fiscal Year 20152014 20172016 -245- 113,719,602$ 115,293,413$ 121,372,936$ 126,591,425$ 135,284,761$ 161,842,824$ 51,604,150 66,660,268 75,890,142 86,559,219 90,450,775 86,626,839 (13,117,584) (11,495,168) (14,936,196) (29,395,513) (28,233,666) (42,654,861) 152,206,168$ 170,458,513$ 182,326,882$ 183,755,131$ 197,501,870$ 205,814,802$ 37,025,828$ 35,942,205$ 38,733,640$ 37,856,359$ 35,830,576$ 23,964,066$ - - - - - 13,974,687 (2,045,078) 1,559,167 (1,509,993) 3,784,281 7,281,323 6,500,623 34,980,750$ 37,501,372$ 37,223,647$ 41,640,640$ 43,111,899$ 44,439,376$ 150,745,430$ 151,235,618$ 160,106,576$ 164,447,785$ 171,115,338$ 185,806,890$ 51,604,150 66,660,268 75,890,142 86,559,219 90,450,775 100,601,526 (15,162,662) (9,936,001) (16,446,189) (25,611,232) (20,952,344) (36,154,238) 187,186,918$ 207,959,885$ 219,550,529$ 225,395,771$ 240,613,769$ 250,254,178$ Fiscal Year 202320182022202120202019 -246- 2014 2015 2016 2017 Expenses Governmental activities: General government 26,487,066$ 25,448,635$ 35,463,814$ 30,011,545$ Public safety 57,786,656 46,351,357 74,941,547 65,276,283 County roads 15,441,429 16,818,974 18,269,586 17,627,051 Health and welfare 35,154,506 31,944,749 43,850,703 39,370,403 Interest and fiscal charges 2,556,364 2,385,397 2,284,295 2,175,774 Total governmental activities expenses 137,426,021 122,949,112 174,809,945 154,461,056 Business-type activities: Solid waste 6,327,028 7,614,444 9,272,404 10,028,102 Fair & expo center 3,368,464 3,466,338 4,290,630 4,173,908 RV park 355,752 473,792 477,924 407,928 Total business-type activities expenses 10,051,244 11,554,574 14,040,958 14,609,937 Total primary government expenses 147,477,265$ 134,503,686$ 188,850,903$ 169,070,993$ Program Revenues Governmental activities: Charges for services: General government 11,593,147$ 14,463,863$ 18,675,554$ 16,435,374$ Public safety 6,252,467 6,051,487 5,620,314 6,765,336 County roads 16,933,084 17,690,071 19,168,851 19,082,452 Health and welfare 5,222,623 1,836,516 2,021,579 1,940,978 Operating grants and contributions 40,070,038 40,911,962 42,990,874 40,087,120 Capital grants and contributions 437,240 193,226 7,003,178 1,084,073 Total governmental program revenues 80,508,599 81,147,125 95,480,350 85,395,333 Business-type activities: Charges for services: Solid waste 7,364,322 8,088,089 8,865,019 9,791,844 Fair & expo center 1,783,377 2,257,064 2,500,139 2,710,373 RV park 217,036 346,987 408,513 384,279 Operating grants and contributions 50,964 51,244 53,667 570,037 Capital grants and contributions 176,289 - - - Total business-type program revenues 9,591,988 10,743,384 11,827,338 13,456,534 Total primary government program revenues 90,100,587$ 91,890,509$ 107,307,688$ 98,851,866$ Net (Expense)/Revenue Governmental activities (56,917,421)$ (41,801,988)$ (79,329,594)$ (69,065,723)$ Business-type activities (459,254) (811,190) (2,213,620) (1,153,403) Total primary government net expense (57,376,677)$ (42,613,178)$ (81,543,214)$ (70,219,127)$ Prior year totals may not foot due to rounding. Fiscal Year Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) -247- 2018 2019 2020 2021 2022 2023 36,105,776$ 32,523,927$ 50,607,355$ 49,428,669$ 48,556,006$ 66,921,909$ 64,258,765 70,253,604 70,086,827 85,546,513 86,849,152 107,370,842 18,122,984 17,645,717 17,743,525 25,488,902 22,046,884 10,167,800 50,068,445 45,086,737 45,728,065 62,685,989 55,636,443 66,433,425 2,104,761 2,024,851 1,808,997 1,497,982 838,400 1,296,674 170,660,730 167,534,837 185,974,769 224,648,055 213,926,886 252,190,650 10,131,364 9,047,200 12,526,176 9,911,481 13,075,084 13,762,327 4,504,592 5,085,859 4,759,772 3,018,117 4,509,320 5,938,023 411,993 409,672 420,191 420,836 368,229 436,441 15,047,948 14,542,731 17,706,139 13,350,434 17,952,633 20,136,791 185,708,679$ 182,077,568$ 203,680,908$ 237,998,489$ 231,879,518$ 272,327,441$ 16,271,509$ 15,487,329$ 16,303,016$ 18,863,342$ 20,031,444$ 18,320,916$ 4,653,489 3,870,888 2,981,327 3,968,606 2,822,080 4,952,871 21,577,005 24,081,955 25,465,962 28,723,520 27,343,594 27,039,616 2,683,447 2,892,082 3,161,716 3,994,244 3,173,349 4,486,491 52,587,330 53,767,845 59,658,417 77,638,551 83,007,298 98,552,785 1,918,307 30,000 145,584 93,134 - - 99,691,086 100,130,099 107,716,021 133,281,397 136,377,766 153,352,679 11,187,151 11,421,763 13,486,467 13,486,467 13,991,671 14,099,929 2,511,127 3,085,338 1,790,111 1,790,111 3,608,410 4,816,455 438,716 476,365 652,568 652,568 584,135 577,063 786,895 107,740 57,496 57,496 53,167 53,167 - - - - - - 14,923,889 15,091,206 15,986,642 15,986,642 18,237,383 19,546,614 114,614,975$ 115,221,305$ 123,702,663$ 149,268,038$ 154,615,150$ 172,899,293$ (70,969,644)$ (67,404,738)$ (78,258,747)$ (91,366,658)$ (77,549,119)$ (98,837,971)$ (124,060) 548,475 (2,260,820) 2,636,207 284,751 (590,177) (71,093,704)$ (66,856,263)$ (80,519,567)$ (88,730,451)$ (77,264,369)$ (99,428,148)$ Fiscal Year -248- 2014 2015 2016 2017 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, general purpose levy 35,079,263$ 31,747,666$ 33,533,883$ 35,363,260$ Property taxes, sheriff services levy 25,284,848 26,640,494 29,508,509 31,128,138 Property taxes, bonded debt levy 1,982,347 97,428 84,233 - Transient room tax 4,340,159 5,248,199 6,068,098 6,408,477 Investment earnings 986,444 1,188,209 1,643,757 1,351,378 Transfers (539,938) (559,305) (513,431) (690,447) Total governmental activities 67,133,123 64,362,691 70,325,049 73,560,806 Business-type activities: Taxes Property taxes, bonded debt levy 2,086,179 2,623,509 2,555,831 2,368,281 Investment earnings 52,612 71,740 94,674 74,094 Special item - - - - Transfers 539,938 559,305 513,431 690,447 Total business-type activities 2,678,729 3,254,554 3,163,935 3,132,822 Total primary government 69,811,852$ 67,617,246$ 73,488,985$ 76,693,630$ Change in Net Position Governmental activities 10,215,702$ 22,560,704$ (9,004,545)$ 4,495,083$ Business-type activities 2,219,473 2,443,364 950,315 1,979,419 Total primary government 12,435,175$ 25,004,068$ (8,054,229)$ 6,474,504$ Prior year totals may not foot due to rounding. Fiscal Year Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) -249- 2018 2019 2020 2021 2022 2023 36,746,058$ 38,353,835$ 40,987,718$ 42,614,194$ 44,873,558$ 47,364,947$ 33,028,808 35,960,629 38,315,278 39,843,081 41,208,892 44,320,775 - - - - - - 7,011,471 7,829,489 7,560,467 11,431,704 13,114,807 12,597,706 1,940,860 5,151,181 4,888,442 648,532 (6,112,054) 4,612,463 (631,722) (1,638,051) (1,624,789) (1,742,604) (1,789,344) (1,744,988) 78,095,475 85,657,083 90,127,116 92,794,907 91,295,859 107,150,903 - - - - - - 129,837 334,098 358,306 38,182 (602,836) 172,666 3,369,910 - - - - - 631,722 1,638,050 1,624,789 1,742,604 1,789,344 1,744,988 4,131,469 1,972,148 1,983,094 1,780,786 1,186,508 1,917,654 82,226,944$ 87,629,231$ 92,110,210$ 94,575,692$ 92,482,367$ 109,068,557$ 7,125,831$ 18,252,345$ 11,868,368$ 1,428,248$ 13,746,739$ 8,312,932$ 4,007,409 2,520,623 (277,725) 4,416,993 1,471,259 1,327,477 11,133,240$ 20,772,968$ 11,590,643$ 5,845,242$ 15,217,998$ 9,640,409$ Fiscal Year -250- 2014 2015 2016 2017 General Fund Nonspendable -$ 516,523$ 498,337$ 469,020$ Committed - 1,782,674 3,944,405 7,505,074 Assigned 8,031,837 6,222,698 6,311,144 5,369,619 Unassigned 7,649,760 9,183,941 10,620,333 10,483,020 Total General Fund 15,681,597$ 17,705,836$ 21,374,220$ 23,826,733$ All Other Governmental Funds Nonspendable 1,418,998$ 2,542,621$ 2,663,703$ 2,859,789$ Restricted, reported in: Special revenue funds 64,710,171 62,650,077 71,847,628 65,125,286 Capital projects funds - - - 7,809,685 Debt service funds 7,631 10,970 - - Total Restricted 64,717,802 62,661,047 71,847,628 72,934,971 Committed, reported in: Special revenue funds 13,456,033 13,566,455 11,491,305 13,469,571 Capital projects funds 606,292 394,405 - - Debt service funds 480,416 482,736 472,561 558,106 Total Committed 14,542,741 14,443,596 11,963,866 14,027,677 Unassigned, reported in: Special revenue funds - - - - Capital projects funds (1,791,930) - - - Total Unassigned (1,791,930) - - - Total all other governmental funds 78,887,611$ 79,647,264$ 86,475,197$ 89,822,437$ Prior year totals may not foot due to rounding. Deschutes County, Oregon (modified accrual basis of accounting) Fund Balances - Governmental Funds - Last Ten Fiscal Years Fiscal Year -251- 2018 2019 2020 2021 2022 2023 445,442$ 144,473$ 148,609$ 35,563$ 80,692$ 46,213$ 10,670,276 13,048,013 7,557,563 9,963,834 6,980,581 5,698,988 6,598,027 6,743,043 7,362,270 8,243,592 8,563,836 9,575,220 11,461,766 12,458,530 13,620,704 15,023,889 13,398,279 13,426,082 29,175,511$ 32,394,059$ 28,689,146$ 33,266,878$ 29,023,388$ 28,746,503$ 1,786,302$ 2,475,033$ 2,690,983$ 2,671,413$ 3,041,475$ 2,653,108$ 67,996,477 76,263,618 81,399,756 103,846,578 107,048,554 101,304,951 9,542,598 17,794,245 25,086,097 23,497,961 26,356,205 22,594,529 - - - - - - 77,539,075 94,057,863 106,485,853 127,344,538 133,404,759 123,899,480 14,715,465 16,713,561 2,867,188 4,900,652 4,770,913 4,854,127 - - 4,928,892 4,380,450 8,403,325 5,866,734 661,151 837,063 959,032 466,933 384,965 449,066 15,376,615 17,550,624 8,755,111 9,748,035 13,559,203 11,169,927 - - (39,033) - (695,542) (13,004) - - - - - - - - (39,033) - (695,542) (13,004) 94,701,992$ 114,083,519$ 117,892,914$ 139,763,986$ 149,309,895$ 137,709,511$ Fiscal Year -252- 2014 2015 2016 2017 Revenues Taxes 67,157,527$ 64,043,653$ 69,254,662$ 72,725,317$ Licenses and permits 1,285,225 1,395,229 1,513,320 1,804,402 Fines, forfeitures and penalties 1,563,725 1,713,279 1,666,944 1,600,649 Special assessments 125,999 116,946 85,439 70,655 Interest and rents 2,616,264 2,801,165 3,191,867 3,042,808 Intergovernmental 95,464,165 97,854,728 102,449,003 92,313,282 Charges for services 21,137,727 24,577,248 16,657,205 18,295,208 Other 681,354 1,867,249 1,268,489 1,073,927 Total revenues 190,031,985 194,369,496 196,086,929 190,926,249 Expenditures General government 24,185,783 25,028,450 26,813,546 26,361,777 Public safety 87,910,026 89,007,502 91,353,457 86,897,612 County roads 14,252,333 15,038,232 15,351,922 16,195,155 Health and welfare 39,671,077 46,096,095 36,778,966 38,856,976 Education 685,916 656,218 610,125 263,106 Debt service Principal 5,387,017 3,270,413 3,015,338 2,895,157 Interest 2,438,429 2,354,101 2,259,334 2,151,095 Trustee fees 27,810 - - 2,500 Debt issuance costs 219,610 - - - Capital outlay 12,563,515 6,906,759 7,675,279 10,376,297 Total expenditures 187,341,516 188,357,770 183,857,968 183,999,674 Excess of revenues over (under) expenditures 2,690,469 6,011,726 12,228,961 6,926,574 Other Financing Sources (Uses) Proceeds from leases - - - - Proceeds from subscriptions - - - - Transfers in 11,233,103 14,542,905 10,564,827 23,284,540 Transfers out (11,831,461) (15,350,629) (12,403,247) (24,593,177) Debt issuance 8,555,000 - 1,911,626 - Bond premium/discount 218,092 - - - Payments to escrow agent - - (1,904,328) - Increase/(decrease) in inventory 146,749 242,641 98,478 181,815 Total other financing sources (uses)8,321,483 (565,083) (1,732,643) (1,126,822) Net change in fund balances 11,011,952$ 5,446,643$ 10,496,318$ 5,799,752$ Debt service as a percentage of noncapital expenditures 4.5%3.1%3.0%2.9% Prior year totals may not foot due to rounding. Deschutes County, Oregon (modified accrual basis of accounting) Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years Fiscal Year -253- 2018 2019 2020 2021 2022 2023 76,915,410$ 82,039,791$ 86,964,729$ 94,124,509$ 99,264,276$ 104,114,587$ 1,658,904 1,846,647 1,827,973 2,208,566 2,488,528 2,176,998 1,466,676 1,525,703 1,315,245 1,312,788 794,023 806,401 66,830 60,172 24,635 7,403 9,883 3,924 3,555,878 6,254,855 6,127,824 2,547,298 (3,256,047) 6,316,328 105,988,087 111,616,358 116,778,213 149,475,326 148,713,344 172,492,922 19,115,410 17,409,307 19,549,186 22,925,825 21,902,984 25,944,677 875,507 1,577,098 2,240,573 826,662 2,322,915 1,855,725 209,642,702 222,329,931 234,828,378 273,428,375 272,239,905 313,711,562 29,061,175 30,624,676 51,467,588 41,583,698 43,069,730 53,755,442 93,072,384 97,971,830 105,095,862 112,852,658 126,981,617 142,877,533 14,241,574 13,601,142 13,934,215 14,026,795 17,933,913 19,589,948 46,636,552 41,929,068 44,960,663 53,777,680 53,038,068 63,853,309 - - - - - - 3,013,331 9,963,729 2,619,154 3,728,510 3,633,793 3,370,177 2,079,976 2,021,171 1,909,000 1,590,121 1,316,978 1,107,238 2,375 106,325 1,600 1,200 850 1,550 - - - - - - 7,506,798 10,105,264 12,913,134 17,541,502 19,055,501 42,214,342 195,614,166 206,323,204 232,901,216 245,102,163 265,030,448 326,769,539 14,028,536 16,006,728 1,927,163 28,326,212 7,209,457 (13,057,977) - - - - - 1,258,453 - - - - - 1,855,136 18,339,320 28,268,112 33,312,721 21,904,660 32,384,479 36,264,492 (19,240,045) (29,876,180) (35,135,401) (23,782,068) (34,291,517) (38,197,373) - 7,512,685 - - - - - - - - - - - - - - - - (155,630) 688,731 - - - - (1,056,355) 6,593,348 (1,822,681) (1,877,408) (1,907,038) 1,180,708 12,972,180$ 22,600,076$ 104,482$ 26,448,804$ 5,302,419$ (11,877,269)$ 2.7%2.7%2.1%2.3%2.0%1.6% Fiscal Year -254- Fiscal Year Ended June 30, Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value 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 2021 25,896,554 46,294,856 586,141 586,165 84,899 147,202 2022 27,365,201 54,432,055 627,551 627,551 90,106 173,790 2023 28,853,678 71,303,510 735,632 735,632 92,994 207,887 Sources: Deschutes County Assessor's Department and Deschutes County Tax Office. (1) Includes tax-exempt property. Deschutes County, Oregon (in thousands of dollars) Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years Real Property Personal Property Manufactured Homes -255- Exemptions Assessed Value Estimated Actual Value Assessed Value Taxable Assessed Value Estimated Actual Value 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% 803,586 887,767 57,287 27,313,892 47,915,990 2.6825 - 5.9925 57.123% 834,257 910,502 58,720 28,858,395 56,143,898 2.6825 - 5.9925 51.505% 853,781 938,116 59,462 30,476,624 73,185,145 2.6525 - 6.4325 41.724% TotalPublic Utilities Range of Total Direct Tax Rates Paid Assessed Value (1) as a Percentage of Estimated Actual Value -256- 2014 2015 2016 2017 County direct rates Rates levied to all taxable County properties: General 1.2783 1.2783 1.2783 1.2783 Jail Bond 0.0673 - - - Fairgrounds Bond 0.1121 0.1377 0.1273 0.1186 Sheriff (Countywide)0.9500 0.9500 1.0200 1.0200 County Extension/4H CSD 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.1618 0.1618 911 Local Option 0.2240 0.2000 0.2000 0.2000 County districts paid by all properties 2.8159 2.7502 2.8098 2.8011 Rates levied to taxable rural County properties: Sheriff (Rural)1.4000 1.4000 1.4000 1.4000 Certain County properties are subject to one of the following rates: Bend Library Bond 0.0723 - - - Sunriver Library Bond 0.0475 0.5090 0.0438 - Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt 0.5500 0.5500 0.5500 0.5500 Paid by Sunriver properties only: Sunriver Service District 3.3100 3.3100 3.3100 3.3100 Sunriver Service District Local Opt - - - - Range of County Direct Rates Paid 2.8159 - 6.1734 2.7502 - 6.1111 2.8098 - 6.1198 2.8011- 6.1111 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 Redmond 4.4101 4.4101 4.4101 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 La Pine 1.9300 1.9800 1.9800 1.9800 City of Bend Bond 2021 - - - - City of Bend Bond 2011 0.2256 0.2120 0.2120 0.1895 City of Bend Local Option - - - 0.2000 City of Redmond Bond 0.0886 0.0809 0.0809 0.0710 City of Redmond Bond 2022 - - - - Library district rates 0.5500 0.5500 0.5500 0.5500 1.0924 - 3.0691 1.0924 - 3.0691 1.0924 - 3.0691 1.0924 - 2.7317 0.2200 - 1.6673 0.2200 - 1.6566 0.2200 - 1.4610 0.2200 - 1.4610 6.5526 - 8.4699 6.2181 - 8.4979 6.4033 - 8.4012 6.5893 - 8.4320 0.9005 - 3.6500 0.7831 - 3.0000 0.8140 - 3.0000 0.8140 - 3.0000 Other special district rates 0.2895 0.2895 0.2895 0.2895 Sources: Deschutes County Assessor's Office and Deschutes County Finance Department. Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per 1,000 of assessed value) Fire district rates Deschutes County, Oregon Fiscal Year Taxes are Payable Parks and recreation district rates School district rates Road district rates -257- 2018 2019 2020 2021 2022 2023 1.2483 1.2183 1.2183 1.2183 1.2183 1.2183 - - - - - - - - - - - - 1.0200 1.0800 1.0800 1.0800 1.0800 1.0500 0.0224 0.0224 0.0224 0.0224 0.0224 0.0224 0.3618 0.3618 0.3618 0.3618 0.3618 0.3618 - - - - - - 2.6525 2.6825 2.6825 2.6825 2.6825 2.6525 1.4000 1.3400 1.3400 1.3400 1.3400 1.3400 - - - - - - - - - - - - 1.0499 1.0499 1.0499 1.0499 1.0499 1.0499 0.5500 0.5500 0.5500 0.5500 0.6500 0.6500 3.3100 3.3100 3.3100 3.3100 3.3100 3.3100 - - - - - 0.4700 2.6525 - 5.9625 2.6825 - 5.9925 2.6825 - 5.9925 2.6825 - 5.9925 2.6825 - 5.9925 2.6525 - 6.4325 2.8035 2.8035 2.8035 2.8035 2.8035 2.8035 4.4101 4.4101 4.4101 4.4101 4.4101 4.4101 2.6417 2.6417 2.6417 2.6417 2.6417 2.6417 1.9800 1.9800 1.9800 1.9800 1.9800 1.9800 - - - - - 0.1713 0.1789 0.1685 0.1600 0.1600 0.1520 0.1292 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000 0.0547 0.0547 - - - - - - - - - 0.7232 0.5500 0.5500 0.5500 0.5500 0.5500 0.5500 1.0924 - 2.7317 1.0924 - 2.7317 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 0.2200 - 1.4610 6.5893 - 8.4320 6.4912 - 8.2372 6.4554 - 8.1593 6.5337 - 8.1626 5.7044 - 7.2439 5.3871 - 7.2955 0.8140 - 3.0000 0.8140 - 3.0000 0.8140 - 3.0000 0.5882 - 3.0000 0.8140 - 3.0000 0.8140 - 3.0000 0.2895 0.2895 0.2895 0.2895 0.2895 0.2895 Fiscal Year Taxes are Payable -258- Taxpayer Taxable Assessed Value (TAV) Rank (1) % of Total County TAV (2) Taxable Assessed Value (TAV) Rank (1) % of Total County TAV (2) Pacificorp (PP&L)156,726,000$ 1 0.51% 84,889,000$ 1 0.46% TDS Baja Broadband LLC (Prev Bend Cable)127,032,000 2 0.42% Cascade Natural Gas Corporation 90,647,000 3 0.30% 49,790,800 3 0.27% Gas Transmission Northwest Corporation 86,597,879 4 0.28% 70,935,300 2 0.38% Bend Research Inc.68,906,330 5 0.23% Deschutes Brewery Inc 60,528,250 6 0.20% 33,262,940 9 0.18% Crowdstrike Inc.58,664,740 7 0.19% Lumen Technologies, Inc.60,128,000 8 0.20% Touchmark at Mount Bachelor Village LLC 54,687,760 9 0.18% 37,623,690 5 0.20% PCC Structurals, Inc.46,635,930 10 0.15% Bend Cable Communications, LLC - -0.00% 49,126,000 4 0.26% CSVS LLC - -0.00% 35,345,300 6 0.19% Suterra LLC - -0.00% 33,784,850 7 0.18% Centurylink (Formerly Qwest)- -0.00% 33,294,300 8 0.18% Wal-Mart Stores Inc.- -0.00% 25,766,970 10 0.14% Total 810,553,889$ 2.66% 453,819,150$ 2.44% (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. 2023 2014 Deschutes County, Oregon Principal Property Taxpayers - Current Fiscal and Nine Years Ago -259- Fiscal Year Ended June 30, Amount Collected Percentage of Levy Amount Collected Percentage of Levy 2014 59,380 58,195 98.005% 1,182 59,377 99.995% 2015 62,247 61,220 98.349%1,023 62,243 99.991% 2016 65,737 64,747 98.494%997 65,744 100.010% 2017 68,956 67,895 98.461%1,056 68,951 99.989% 2018 69,929 69,013 98.689%908 69,921 99.975% 2019 74,425 73,442 98.678%968 74,410 99.931% 2020 78,369 77,350 98.700%954 78,304 99.773% 2021 82,470 81,661 99.019%621 82,282 99.619% 2022 86,354 85,577 99.101%436 86,013 99.605% 2023 91,736 90,881 99.068%- 90,881 99.068% Source: Deschutes County Finance Department. (1) Net of discounts and adjustments. Deschutes County, Oregon Property Taxes, Levies and Collections - Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Total Collections to Date (dollars expressed in thousands) Total Tax Levy for Fiscal Year (1) Collections in Subsequent Years -260- General Pension Full Faith Notes Fiscal Obligation Obligation and Credit from Direct Leases Subscriptions Year Bonds Bonds Obligations Borrowings Loans Payable Payable 2014 175 10,799 45,773 - 149 - - 2015 90 10,536 42,957 - -- - 2016 - 10,235 38,387 1,926 - - - 2017 - 9,899 35,985 1,726 - - - 2018 - 9,522 33,507 1,525 - - - 2019 - 9,099 31,516 1,317 - - - 2020 - 8,595 29,464 1,108 - - - 2021 - 7,790 26,611 894 - - - 2022 - 6,870 23,715 680 - 2,127 - 2023 - 5,830 21,492 459 - 2,835 1,278 (1) See page 270 for personal income and population data. n/a - Not available. Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) Limited Tax Bonds Governmental Activities -261- General Full Faith Notes Total Percentage Obligation and Credit from Direct Leases Primary of Personal Per Bonds Obligations Borrowings Loans Payable Government Income (1) Capita (1) 7,669 13,960 - 362 - 78,887 1.07% 485.38 5,247 13,200 - 343 - 72,373 0.87% 434.93 2,595 4,666 8,127 - - 65,936 0.73% 386.18 - 4,451 7,420 - - 59,481 0.61% 336.75 - 4,200 6,699 - - 55,453 0.52% 303.14 - 3,976 5,965 - - 51,873 0.46% 274.49 - 3,744 5,220 - - 48,131 0.41% 249.38 - 3,507 4,459 - - 43,261 0.32% 219.58 - 3,437 3,692 - 14 40,534 n/a 199.29 - 24,232 2,906 - 10 59,041 n/a 284.45 TotalBusiness-Type Activities -262- General Bonded/Gross Direct Debt 2014 2015 2016 2017 General Obligation Bonds (1) 7,844 5,337 2,595 - Limited Tax Bonds 70,532 66,693 53,288 50,335 Notes from Direct Borrowings - -10,053 9,146 Loans 149 - -- Less: Amounts available in debt service fund (2) (186) (358) (264) - 78,339 71,672 65,672 59,481 Debt as a percentage of estimated actual taxable value of property (3)0.35%0.28%0.23%0.18% General Bonded/ Gross Direct Debt per Capita (4)482 431 385 337 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 (pages 255-256) (4)Population data can be found in the Schedule of Demographic and Economic Statistics (page 270). Deschutes County, Oregon Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years (dollars in thousands, except per capita) Fiscal Year -263- 2018 2019 2020 2021 2022 2023 - - - - - - 47,229 44,591 41,803 37,908 34,021 51,553 8,224 7,282 6,328 5,353 4,372 3,365 - - - - - - - - - - - - 55,453 51,873 48,131 43,261 38,393 54,918 0.15% 0.13% 0.11% 0.09% 0.07% 0.10% 303 274 249 220 189 265 Fiscal Year -264- Debt Outstanding Estimated Percentage Applicable Amount Applicable to Primary Government Debt repaid with property taxes Alfalfa RFPD 213$ 94.3700% 201$ Bend Metro Park & Rec District 19,985 100.0000% 19,985 Central Oregon Community College 39,020 85.3500% 33,305 Central Oregon Regional Housing Authority 1,650 100.0000% 1,650 City Of Bend 153,347 100.0000% 153,347 City Of La Pine 275 100.0000% 275 City Of Redmond 38,494 100.0000% 38,494 Cloverdale RFPD 1,925 100.0000% 1,925 Crook Cty School District 44,306 0.7300% 325 Crooked River Ranch RFPD 1,908 8.9200% 170 Deschutes Cty RFPD 2 (Bend)8,470 100.0000% 8,470 Deschutes Cty SD 1 (Bend-La Pine)465,235 100.0000% 465,235 Deschutes Cty SD 2J (Redmond)198,787 93.8700% 186,604 Deschutes Cty SD 6 (Sisters)43,302 99.9800% 43,291 Deschutes Public Library District 189,200 100.0000% 189,200 High Desert ESD 2,310 91.3900% 2,111 Howell Hilltop Acres Spec Rd District 178 100.0000%178 Lapine Parks & Recreation District 275 100.0000%275 Lazy River Special Road District 19 100.0000%19 Redmond Area Park & Recreation District 147 100.0000%147 Redmond Fire & Rescue 2,696 99.8700%2,692 Sisters RFPD (Camp Sherman)865 89.0900%771 Terrebonne Water District 370 100.0000%370 Subtotal, overlapping debt 1,149,040 Deschutes County direct debt 31,893 Total direct and overlapping debt 1,180,933$ 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. Deschutes County, Oregon June 30, 2023 (dollars in thousands) Governmental Unit Direct and Overlapping Governmental Activities Debt -265- Estimated actual value 73,185,145$ Estimated actual value 73,185,145$ Debt limit (2% of estimated actual value) (1) 1,463,703 Debt limit (1% of estimated actual value) (2) 731,851 Debt applicable to limit: Debt applicable to limit: General obligation bonds -$ Limited tax bonds 27,322$ 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 27,322$ Legal debt margin 1,463,703$ Legal debt margin 704,529$ (1) 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. Deschutes County, Oregon (dollars in thousands) Legal Debt Margin Calculation for Fiscal Year 2023 Legal Debt Margin Information - Last Ten Fiscal Years -266- Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) 2014 2015 2016 2017 2018 Debt Limit (2%) (1)443,378$ 507,239$ 577,687$ 648,312$ 735,733$ Total net debt applicable to limit 7,844 5,337 2,595 - - Legal debt margin 435,534$ 501,902$ 575,092$ 648,312$ 735,733$ Total net debt applicable to the limit as a percentage of debt limit 1.77%1.05%0.45%0.00%0.00% Debt Limit (1%) (2)221,689$ 253,619$ 288,843$ 324,156$ 367,867$ Total net debt applicable to limit 56,121 53,231 50,357 47,610 42,350 Legal debt margin 165,568$ 200,388$ 238,486$ 276,546$ 325,517$ Total net debt applicable to the limit as a percentage of debt limit 25.32%20.99%17.43%14.69%11.51% (1) 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. Fiscal Year -267- 2019 2020 2021 2022 2023 824,609$ 897,925$ 958,320$ 1,122,878$ 1,463,703$ - - - - - 824,609$ 897,925$ 958,320$ 1,122,878$ 1,463,703$ 0.00%0.00%0.00%0.00%0.00% 412,304$ 448,963$ 479,160$ 561,439$ 731,851$ 39,049 36,639 33,124 30,585 27,322 373,255$ 412,324$ 446,036$ 530,854$ 704,529$ 9.47%8.16%6.91%5.45%3.73% Fiscal Year -268- Special Fiscal Assessment Year Collections Principal Interest Coverage 2014 151 177 19 0.77 2015 - - - - 2016 - - - - 2017 - - - - 2018 - - - - 2019 - - - - 2020 - - - - 2021 - - - - 2022 - - - - 2023 - - - - Note: Details regarding the County's outstanding debt can be found in the notes to financial statements. Debt Service Deschutes County, Oregon (dollars in thousands) Pledged-Revenue Coverage - Last Ten Fiscal Years Full Faith and Credit Obligations (Series 2003, 2005, 2007, 2009) -269- Personal Per Income Capita Public (thousands Personal Median School Unemployment Year Population of dollars)Income Age Enrollment Rate 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 11,814,688 61,216 41.63 27,237 9.1% 2021 197,015 13,346,387 67,743 41.82 25,687 6.0% 2022 203,390 n/a n/a 42.64 25,576 4.2% 2023 207,561 n/a n/a 43.28 25,593 4.4% 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, 2022, reflect county population estimates available as of April 2023. Median age figures for 2014-2023 are based on mid-year data tables. School enrollment is based on the census at the start of the 2022-23 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2022 is an average of July 2022 through June 2023. n/a - Not available. Deschutes County, Oregon Demographic and Economic Statistics - Last Ten Calendar Years -270- Percentage of Percentage of Total County Total County Employees Rank Employment Employees Rank Employment St. Charles Health System 3,506 1 3.58%2,419 1 3.57% Bend/La Pine School District 2,567 2 2.62%1,690 2 2.49% Deschutes County 1,284 3 1.31%1,051 3 1.55% Mt. Bachelor 1,081 4 1.10%756 5 1.12% Redmond School District 1,016 5 1.04%754 6 1.11% Sunriver Resort 900 6 0.92%900 4 1.33% City of Bend 717 7 0.73% U.S. Forest Service 695 8 0.71% Safeway 609 9 0.62% Bend Park and Recreation District 591 10 0.60% Central Oregon Community College 661 9 0.98% Wal-Mart 686 8 1.01% IBEX (formerly TRG Solutions & ISKY) 700 7 1.03% Bend Memorial Clinic 639 10 0.94% 12,966 13.23%10,256 15.13% Total County Nonfarm Employment 98,019 100.00%67,760 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department. Employer Total Employees of Principal Employers Deschutes County, Oregon 2023 2014 Principal Employers - Current Year and Nine Years Ago -271- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program General government Executive 9.40 9.75 9.75 9.75 9.75 9.75 10.75 10.75 10.75 11.75 General services Judicial 51.45 52.05 54.05 54.55 57.30 59.50 65.60 63.30 69.00 71.10 Financial 38.48 38.53 39.53 39.73 39.73 40.23 40.23 41.23 41.23 46.23 Assessment 31.00 31.00 33.00 33.00 34.26 35.26 33.26 33.26 31.00 32.26 Community development 17.30 19.30 20.30 25.10 27.50 30.50 29.50 30.50 32.50 32.10 Building services 23.80 23.80 25.20 25.00 25.00 26.00 18.60 21.60 21.75 23.75 Information technology 16.70 16.30 16.00 15.70 15.70 15.70 15.70 15.70 16.70 15.70 Other 5.27 4.47 4.32 4.62 4.62 4.62 4.62 6.82 5.82 8.82 Public protection Law enforcement 113.75 113.75 113.75 113.75 115.25 117.45 117.50 124.00 127.50 129.25 Corrections 185.00 188.60 199.10 200.10 202.00 205.00 195.75 188.25 185.50 178.25 Protective inspection 12.70 14.70 15.70 19.90 25.50 24.50 24.50 23.50 27.30 25.70 Other protection 46.50 52.50 57.50 59.00 60.00 60.00 54.00 54.00 55.00 52.57 Public works Streets & highways 52.75 52.75 53.50 54.00 54.00 56.00 54.00 55.00 56.00 56.00 Sanitation 22.50 22.50 23.50 23.50 24.50 25.50 24.00 21.00 24.00 30.00 Health & welfare Health services 245.90 248.00 265.25 303.85 313.45 309.95 291.95 330.78 353.75 382.10 Recreation & culture Fair & expo center 10.00 11.00 11.00 12.00 12.00 12.00 10.92 10.00 8.00 11.75 Other Conservation 3.00 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Economic development 1.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 886.60 901.00 941.45 993.55 1,020.56 1,031.96 990.88 1,029.69 1,065.80 1,107.33 Source: Deschutes County Finance Department. Note: Above amounts are for Primary Government. Deschutes County, Oregon Full-Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years -272- Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years 2014 2015 2016 2017 Function/Program General government Building permits issued for new homes 327 355 440 555 Total building permits issued 988 1142 1309 1427 Police Physical arrests 1,451 1,545 1,568 1,797 Traffic violations Citations issued 2,462 2,189 2,104 2,159 Warnings 1,570 1,883 1,547 1,159 Calls for service 34,187 35,664 34,535 35,285 Traffic stops 14,840 14,698 10,533 12,608 Solid waste Solid waste collected (tons)185,788 193,779 203,896 226,325 2,320 2,385 2,451 2,591 Recyclables collected (tons)72,178 74,097 72,940 80,234 Road Street resurfacing (miles)8.2 7.6 14.57 8.07 911 emergency services Emergency calls 59,886 60,460 62,181 64,158 Police officer initiated calls 249,217 250,369 252,333 256,923 Fire department initiated calls 22,398 23,655 25,308 27,426 Average annual per capita waste Fiscal Year Source: Deschutes County Community Development Department, Deschutes County Sheriff's Office, Deschutes County Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District. -273- 2018 2019 2020 2021 2022 2023 549 574 586 744 698 393 1,594 1,564 1,589 1,885 1,927 1,557 1,791 1,810 1,463 964 1,271 1,507 2,412 2,382 1,905 1,832 1,580 1,007 908 949 731 571 646 544 34,893 35,014 38,823 36,601 35,602 35,303 12,539 13,532 12,225 10,915 12,158 9,940 240,844 238,955 263,464 267,940 296,470 309,429 2,727 2,959 2,788 2,777 3,010 2,165 79,757 60,958 83,472 84,347 98,491 89,304 5.28 8.19 10.63 95.76 92.56 52.13 64,047 68,434 71,987 75,179 77,685 76,870 250,834 261,196 247,085 242,077 216,636 226,877 26,894 27,856 27,670 31,089 30,767 31,511 Fiscal Year -274- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program Public Safety Stations 4444444444 Adult correctional facilities 2222222222 Special services complex 1111111111 Road Streets (miles) 927 927 927 927 931 917 929 929 927 925 Streetlights 4 4 4 32 32 32 35 74 74 94 Flashing lights 5545552111 Signals 3333333334 Sources: Deschutes County Road Department and the Deschutes County Sheriff's Office. Fiscal Year Deschutes County, Oregon Capital Assets Statistics by Function/Program - Last Ten Fiscal Years -275- Audit Comments and Disclosures Required by State Regulations For the Fiscal Year Ended June 30, 2023 Deschutes County, Oregon -276- -277- Deschutes County, Oregon Audit Comments and Disclosures Required by State Regulations June 30, 2023   Oregon Administrative Rules 162-010-000 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.   -278- This page is intentionally left blank.  -279- Report of Independent Auditors Required by Oregon State Regulations Deschutes County Board of 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, 2023, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated November 30, 2023. Compliance As part of obtaining reasonable assurance about whether the County’s basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including provisions of Oregon Revised Statutes (ORS) as specified in Oregon Administrative Rules (OAR) 162-010-0000 to 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 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. 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:  Accounting records and internal control  Public fund deposits  Indebtedness  Budget  Insurance and fidelity bonds  Programs funded from outside sources  Highway funds  Investments  Public contracts and purchasing -280- This page is intentionally left blank.  -281- 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 grant agreements, including the provisions of ORS as specified in OAR 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the 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 the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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 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 or significant deficiencies may exist that have not been identified. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. Accordingly, this communication is not suitable for any other purpose. This report is intended solely for the information and use of the County Board of Commissioners and management of the County and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these parties. Amanda McCleary-Moore, Partner for Moss Adams LLP Eugene, Oregon November 30, 2023 -282-     -283- Single Audit Section June 30, 2023 Deschutes County, Oregon -284- This page is intentionally left blank.  -285- Report of Independent Auditors 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 Deschutes County Board of Commissioners Deschutes County, Oregon Bend, Oregon We have audited, in accordance with the 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 the Deschutes County, Oregon (the “County”) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated November 30, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the 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 the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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 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 or significant deficiencies may exist that were not identified. -286- This page is intentionally left blank.  -287- Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Eugene, Oregon November 30, 2023 -288- This page is intentionally left blank.  -289- Report of Independent Auditors on Compliance for the Major Federal Program and Report on Internal Control Over Compliance as Required by the Uniform Guidance Deschutes County Board of Commissioners Deschutes County, Oregon Bend, Oregon Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited Deschutes County, Oregon’s (the “County”) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the County's major federal program for the year ended June 30, 2023. The County's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2023. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the County’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the County’s federal programs. -290- Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the County's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the County's compliance with the requirements of the major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the County's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the County's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the County's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on 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 type of compliance requirement of a federal program 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. -291- Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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. Eugene, Oregon November 30, 2023 -292- Deschutes County, Oregon Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2023 Federal Assistance Listing Number Award or Pass-Through Number Expenditures Amounts Provided To Subrecipients Department of Agriculture Direct Programs Forest Service Law Enforcement Agreements 10.704 20LE11060100002 80,653$ - Pass Through Programs State Department of Education School Breakfast Program 10.553 0904001 4,838 - National Lunch School Program 10.555 0904001 8,107 - Total Child Nutrition Cluster Program 12,945 Oregon Health Authority WIC Special Supplemental Nutrition Program for Women, Infants and Children 10.557 169509 735,827 - Oregon Department of Forestry Cooperative Forestry Assistance-Deschutes County Buttes to Basins Joint Chiefs 10.664 21-PA-11060100-025 17,500 - Total Department of Agriculture 846,925 - Department of the Interior Pass Through Programs State Department of Administrative Services Non-Sale Disposals of Mineral Material 15.214 None 105,306 - Payments in Lieu of Taxes 15.226 None 3,340 - Bureau of Land Management BLM Fuels Management and Community Fire Assistance Program Activities 15.228 L22AC00488-00 19,200 - Invasive and Noxious Plant Management 15.230 L20AC00116 7,641 - National Park Service Historic Preservation Fund Grants-in-Aid 15.904 OR 21-07 12,000 - Total Department of the Interior 147,487 - Department of Justice Direct Programs Violence Against Women Office Violence Against Women Formula Grants 16.588 VAWA-C-2023-DeschutesCo 14,389 - Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 15JOVW-21-GG-02038-ICJR 187,738 59,129 Criminal and Juvenile Justice and Mental Health Collaboration Program 16.745 2018-MO-BX-0029 141,131 - Office of Community Oriented Policing Services Public Safety Partnership and Community Policing Grants 16.710 2020MHWXK032 25,838 - Pass Through Programs State Department of Justice Crime Victim Assistance 16.575 VOCA-SST-2019-DeschutesCo 405,794 - State of Oregon Criminal Justice Commission Edward Byrne Memorial Justice Assistance Grant Program 16.738 2019-DJ-BX-0709 121,747 - Total Department of Justice 896,636 59,129 The notes to the schedule of expenditures for federal awards are an integral part of this statement. Federal Grantor / Pass Through Grantor / Program Title -293- Deschutes County, Oregon Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2023 Federal Assistance Listing Number Award or Pass-Through Number Expenditures Amounts Provided To Subrecipients Federal Grantor / Pass Through Grantor / Program Title Department of Transportation Pass Through Programs Oregon Department of Transportation Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 33583 48,165 - Total Transit Services Programs Cluster 48,165 Total Department of Transportation 48,165 - Department of Health and Human Services Direct Programs National Environmental Health Association Food and Drug Administration Research 93.103 G-OAME-202209-02542 1,051 - Food and Drug Administration Research 93.103 G-BDEV2-202209-02539 2,213 - Food and Drug Administration Research 93.103 G-BDEV2-202209-02547 8,662 - Subtotal Assistance Listing #93.103 11,926 Substance Abuse and Mental Health Services Administration Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED) 93.104 1H79SM082952-01 979,067 83,304 Drug-Free Communities Support Program Grants 93.276 1 NH28CE003141-01-00 145,015 - Section 223 Demonstration Programs to Improve Community Mental Health Services 93.829 1H79SM083167-01 343,385 15,945 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 1H79SM080555-01 214,087 - Pass Through Programs Oregon Health Authority Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 159809/169509 117,003 - Subtotal Assistance Listing #93.243 331,090 Public Health Emergency Preparedness 93.069 169509 122,721 - Projects for Assistance in Transition from Homelessness (PATH)93.150 166040/173133 96,937 - Family Planning Services 93.217 169509 41,809 - Immunization Cooperative Agreements 93.268 169509 567,963 - COVID-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)93.323 159809/169509 407,822 - Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response 93.354 169509 134,518 - HIV Prevention Activities Health Department Based 93.940 169509 24,624 - Block Grants for Community Mental Health Services 93.958 166040/173133 589,748 - Block Grants for Prevention and Treatment of Substance Abuse 93.959 173133 185,011 140,661 Block Grants for Prevention and Treatment of Substance Abuse 93.959 169509 92,537 - Subtotal Assistance Listing #93.959 277,548 Maternal and Child Health Services Block Grant to States 93.994 169509 141,376 - Total Department of Health and Human Services 4,215,549 239,910 The notes to the schedule of expenditures for federal awards are an integral part of this statement. -294- Deschutes County, Oregon Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2023 Federal Assistance Listing Number Award or Pass-Through Number Expenditures Amounts Provided To Subrecipients Federal Grantor / Pass Through Grantor / Program Title Department of Homeland Security Pass Through Programs Oregon Military Department Emergency Management Performance Grants 97.042 20-509 140,828 - Homeland Security Grant Program 97.067 19-223/ 21-256 65,320 - Oregon Military Department - Office of Emergency Management Hazard Mitigation Grant 97.039 HMGP-PF-FM-5195-13-R-OR 144,737 - Total Department of Homeland Security 350,885 - Department of the Treasury Direct Programs COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 None 14,662,784 13,296,167 Pass Through Programs Oregon Health Authority COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 179643 40,809 - Total Department of the Treasury 14,703,594 13,296,167 Customs & Border Protection Direct Programs Immigration and Customs Enforcement/Homeland Security Investigations Equitable Sharing Program 21.016 OR0090000 39,470 - Total Customs & Border Protection 39,470 - Total Federal Assistance 21,248,712$ 13,595,206$ The notes to the schedule of expenditures for federal awards are an integral part of this statement. -295-   Deschutes County, Oregon Notes to Schedule of Expenditures for Federal Awards June 30, 2023 NOTE 1 – PURPOSE OF THIS SCHEDULE The accompanying Schedule of Expenditures of Federal Awards (Schedule) is a supplementary schedule to Deschutes County, Oregon’s (the County) basic financial statements and is presented for purpose of additional analysis. Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County. NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The reporting entity is fully described in Note 1 of the County’s basic financial statements. The schedule includes all federal programs administered by the primary government for the fiscal year ended June 30, 2023. Basis of Presentation The information in this Schedule is presented in accordance with the 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). 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 financial 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 financial assistance. The County has elected to use the 10% de minimis cost rate. 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. -296- This page is intentionally left blank.  -297- Deschutes County, Oregon Schedule of Findings and Questioned Costs For the Year Ended June 30, 2023 Section I – Summary of Auditor’s Results Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting:  Material weakness(es) identified? Yes No  Significant deficiency(ies) identified? Yes None reported Noncompliance material to financial statements noted? Yes No Federal Awards Internal control over major federal programs:  Material weakness(es) identified? Yes No  Significant deficiency(ies) identified? Yes None reported Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes No Identification of major federal programs and type of auditor’s report issued on compliance for major federal programs: Assistance Listing Number Name of Major Federal Program or Cluster Type of Auditor’s Report Issued on Compliance for Major Federal Programs 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Unmodified Dollar threshold used to distinguish between type A and type B programs: $ 750,000 Auditee qualified as low-risk auditee? Yes No Section II – Financial Statement Findings None reported Section III – Federal Award Findings and Questioned Costs None reported -298-