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Home My WebLink AboutDeschutes County Popular Annual Financial Report FY2024For the Fiscal Year Ended June 30, 2024 Deschutes County, Oregon Popular Annual Financial Report Introduction …….…………………………………………………………….……………………. 1 Assets and Liabilities……...………………………………………………………….………… 2 Net Position…………………...………………………………………………………….………… 3 Revenues and Expenses………………………..…………………………………………….. 4 Revenues and Expenses —10 Year History…………………..…….……………….. 5 Debt……………………………………………………..…………………………….……………….. 6 Where Do Your Taxes Go?........................……………………………………………... 7 Property Taxes…………………………………………………………………………….…….... 8 Demographics and Staffing Ratio………………………………………………….…….. 9 Additional Information…………………………………………………………………..….... 10 Fiscal Year 2023 PAFR Award…………………………………..……………………..….... 11 Introduction Residents of Deschutes County, The purpose of the Deschutes County Popular Annual Financial Report (PAFR) is to provide residents with a relatively quick read of the highlights from the County’s Annual Comprehensive Financial Report (ACFR) for the ﬁscal year ended June 30, 2024, and to provide insight into long-term trends of the County’s largest ﬁnancial indicators. The ACFR is a detailed and complete ﬁnancial presentation prepared in conformance with the United States Generally Accepted Accounting Principles (GAAP) and is available in its entirety online at www.deschutes.org/ﬁnance. The ACFR was audited by Moss Adams LLP, an independent auditing ﬁrm, and received a clean opinion. Respectfully Submitted, Robert Tintle, MPA Jana Cain, CPA Chief Financial Officer Controller Table of Contents Page -1- DESCHUTES COUNTY, OREGON Assets Liabilities Total assets held by Deschutes County as of June 30, 2024 was $659 million, an increase of 16% over the prior year. During ﬁscal year 2024, the County invested signiﬁcantly in capital assets which support long-term service delivery. Capital assets increased by $38.4 million primarily due to major transportation projects and building improvements across multiple County service areas. “Other” assets are made up of receivables and inventory. 44% 43% 44% 22% 15% 12% Future pension and other post-employment beneﬁts (OPEB) payments continue to be the largest individual County liabilities. 48% 24 14% Assets by Percent Liabilities by Percent 44% 41% 15% 21% 18% 13% 43% 43% 14% 26% Total liabilities incurred by Deschutes County as of June 30, 2024 was $387 million, a 15% increase over the prior year. In December of 2023, the County received $26.6 million from issuing new debt for the expansion of the County Courthouse and refunding of prior debt at favorable terms. This debt has a true interest cost of 3.86%. 40% 26% 18% 11% 5% Assets (in millions)2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cash and Investments 127$ 141$ 148$ 164$ 191$ 197$ 245$ 268$ 256$ 286$ Capital Assets 184 190 193 194 193 199 199 203 243 281 Other 34 24 63 49 55 73 80 82 87 92 Total Assets 345$ 355$ 404$ 407$ 439$ 469$ 524$ 553$ 586$ 659$ Liabilities (in millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Pension $ - 46$ 96$ 87$ 102$ 121$ 143$ 142$ 147$ 155$ Debt 72 66 59 55 52 47 43 38 51 70 OPEB 46 20 33 34 35 35 36 44 44 42 Payables and Other Claims 26 29 29 35 34 35 67 77 80 102 Knott Landfill Closure 10 11 11 9 8 11 10 12 14 18 Total Liabilities 154$ 172$ 228$ 220$ 231$ 249$ 299$ 313$ 336$ 387$ -2- DESCHUTES COUNTY, OREGON Net Position Deschutes County’s net position as of June 30, 2024 was approximately $272 million. Net Position is broken into two types: Capital Assets and Other Assets. Net position—Capital assets represents the book value of the County’s capital assets (acquisition cost minus accumulated depreciation and amounts owed on the related assets). Capital assets includes the County’s investment in: Buildings and building improvements Land and land improvements Equipment and vehicles Infrastructure (e.g. roads, bridges, sidewalks) Intangibles (e.g. computer software) The net position of capital assets could be viewed in a similar manner as home-equity (i.e. in 2024, capital assets are worth $217 million more than what is owed). Net position—Other assets represents the current value of all other assets, offset for amounts owed. Cash Investments Receivables (businesses or people owing the County money) The current value in net position of all other assets could be viewed in a similar manner to that of a checking account (i.e. other assets are worth $55 million more than what is owed). Net Position (in millions) Net Position Per Capita Net Position (in millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net position - Capital assets 123$ 135$ 144$ 151$ 151$ 160$ 164$ 171$ 186$ 217$ Net position - Other assets 68 48 32 36 57 60 61 69 64 55 Total Net Position*191$ 183$ 176$ 187$ 208$ 220$ 225$ 240$ 250$ 272$ $- $50 $100 $150 $200 $250 $300 20 1 5 20 1 8 20 2 1 20 2 4 Net position - Other assets Net position - Capital assets * Since 2017, our net position has shown consistent year-over-year growth, driven primarily by our investment in capital assets. -3- DESCHUTES COUNTY, OREGON Revenues Deschutes County revenues for Fiscal Year 2024, were $305 million, an increase of 8.0% over the prior year. Taxes include both property tax revenue and room-tax revenue. Total tax revenue for the year was $118 million, a 13.3% increase over the prior year. This was partly driven by a 5.7% increase in assessed property value and an addition of 1,544 new property tax accounts, as well as the law enforcement districts raising their tax levies to the full permanent rates. Charges for Services include payments made by residents for a speciﬁc service provided to the resident. Total charges for services for the year was $80 million, a 7.7% increase over the prior year. Grants and Contributions include payments made for services by the Federal, State, and other local governments. Grants and contributions totaled $93 million, a 6.0% decrease from the prior year. The decrease was primarily driven by fewer available resources in the American Rescue Plan Act (ARPA) fund. Expenses Deschutes County expenses for Fiscal Year 2024, were $283 million (a 3.9% increase over the prior year). Solid Waste expenses increased primarily due to the costs incurred to expand services such as the Negus Transfer Station & Recycling Center, as well as additional operating costs and costs associated with the Knott Landﬁll closure which is projected to reach capacity in 2029. Fair & Expo expenses increased 15.7% due to continuing to grow a number of events such as the High Desert Stampede, Fairwell Festival, and Cascade Equinox Festival. $283 Million Expense $305 Million Revenue Negus Transfer Station & Recycling Center in Redmond, OR Public Safety expenses increased 0.4% remaining consistent with prior year costs. Health and Welfare expenses increased by 15.9%. However, revenues for this service area increased by 12.4% as a result of expanded services to County residents. General Government expenses decreased by 48.4%, primarily due to fewer available re- sources from ARPA and the transient room tax. County Roads expenses increased due to pay- ment of the County’s portion of the multi-year US 97 Lower Bridge Way-NW 10th Street project in Terrebonne as well as signiﬁcant inﬂation within construction material and labor costs. -4- DESCHUTES COUNTY, OREGON Revenues — 10 Year History Expenses — 10 Year History Revenues (in millions)2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Taxes 66$ 72$ 75$ 77$ 82$ 87$ 94$ 99$ 104$ 118$ Charges for services 51 57 57 59 61 63 71 72 74 80 Grants and contributions 41 50 42 55 54 60 78 83 99 93 Other*2 2 2 6 6 5 1 (7) 5 14 Total Revenues 160$ 181$ 176$ 197$ 203$ 215$ 244$ 247$ 282$ 305$ * FY22 other revenues decreased due to unrealized investment losses. Expenses (in millions)2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public safety 46$ 75$ 69$ 64$ 70$ 70$ 86$ 87$ 107$ 108$ Health and welfare 32 44 45 50 45 46 63 56 66 77 General government 26 36 32 37 32 50 50 48 67 35 County roads 17 18 19 18 18 18 25 22 10 34 Solid Waste 8 9 11 10 9 13 10 13 14 20 Fair & Expo and RV Park 4 5 5 5 6 5 3 5 6 7 Interest and fiscal charges 2 2 2 2 2 2 1 1 1 2 Total Expenses 135$ 189$ 183$ 186$ 182$ 204$ 238$ 232$ 271$ 283$ -5- DESCHUTES COUNTY, OREGON Debt The chart below presents the amount of debt outstanding each year, as well as the amount attributable to each resident in Deschutes County. The debt per capita metric illustrates the County’s debt burden in relation to an individual resident. During ﬁscal year 2024, Deschutes County borrowed $26.6 million; $20.6 million for the expansion of the Deschutes County Courthouse, and $6.0 million to reﬁnance prior debt at favorable repayment terms. This increased the debt to $70.2 million (Par Value of $64.3 million). Expansion of Deschutes County Courthouse 10 Year History of Debt -6- DESCHUTES COUNTY, OREGON Where do your taxes go? Although Deschutes County is the tax collector for all taxing districts within the county, overall only 17 cents of each dollar paid in taxes is retained by the County. The remaining 83 cents is passed through to other government agencies to provide for schools, police and ﬁre departments, parks, libraries, and more. NOTE: The tax allocation shown below is based on the City of Bend Taxing District (Tax Code 1001). All other city/rural allocations are similar. 43¢ 27¢ 17¢ 8¢ 5¢ Deschutes County uses its taxes to fund Public Safety, Health and Welfare, and General Government. Public Safety includes the Sheriff’s Office, Deschutes 9-1-1, Community Justice, District Attorney’s Office (including Victims’ Assistance), and Justice Court. Health and Welfare includes Deschutes County Health Services and Veterans’ Services. General Government includes a variety of departments, such as the Assessor’s Office, Clerk’s Office including elections, and Community Justice. 9¢ 1¢ 4¢ 1¢ 2¢ Public Safety 12¢ -7- DESCHUTES COUNTY, OREGON Property Taxes 10 Year History of the Tax Rates* In Oregon, property taxes are billed based on the assessed value of a property multiplied by the approved (levied) tax rate. Deschutes County is funded, in part, by ﬁve separate tax levies. General Deschutes County Levy: District Attorney, Assessor, Community Justice, and more, for all residents. Countywide Law Enforcement Levy: County Jail, Civil Unit, and Search and Rescue for all residents. Rural Law Enforcement Levy: Detectives, Patrol, and Records for residents outside of city limits. 9-1-1 Levy: Traditional 9-1-1 services for all residents. Extension and 4-H Levy: Extension and 4-H services for all residents. The cumulative total of tax rates levied and the assessed value for the past 10 years are shown below. Assessed Value x Tax Rate = Tax Bill *Rate per $1,000 of assessed value (excludes expired local option levies) 10 Year History of Assessed Value *% Change in Assessed Value from prior year -8- DESCHUTES COUNTY, OREGON Demographics and Staffing Ratio Population for Deschutes County has increased by 27% over the 10 year period. This translates into an average annual growth rate of 2.7%. The average annual growth rate for the State or Oregon overall was 0.7% during the same period. Deschutes County’s population increased by 2.2% in 2024 to 212,141. Source: Portland State University Median Age for Deschutes County has increased by 2.06 years since 2015. The median age for the United States over that same period hovered around 38 years old. At the end of Fiscal Year 2024, 50% of County residents were older than 42.88 years and 50% were younger. Source: Portland State University Unemployment Rate for Deschutes County during Fiscal Year 2024 was on average 3.9%. Deschutes County started the 10 year period shown with an unemployment rate of 5.9%. Source: Oregon Employment Department Population Per Full-Time Employee for Deschutes County has remained stable over the last 10 years. At the end of Fiscal Year 2024, there were 190 residents per County employee. This data point provides insight into the size of government versus the population governed. Source: Deschutes County Population Median Age (in years) Number of Residents per County Employee Unemployment Rate -9- DESCHUTES COUNTY, OREGON Intended audience: Residents seeking high-level ﬁnancial information concerning the County. Measurement focus: The ﬁnancial data presented in the Popular Annual Financial Report (PAFR) uses the same measurement focus and basis of accounting as the County’s Annual Comprehensive Financial Report (ACFR). Financial information: Financial information from the ACFR ‘s government-wide ﬁnancials have been reproduced (full-accrual). Fund-level information has not been provided, but is available in the ACFR. All ﬁnancial entities (including component units), as presented in the ACFR, have been consolidated in the PAFR. Departures from accounting terminology: In preparing the PAFR, minor departures were made from standard generally accepted accounting principal (GAAP) prescribed terminology. Such departures were made in an attempt to avoid confusion concerning the materials presented. Highlighted departures from GAAP are: “Assets” as used in this report, at times, include both Assets and Deferred Outﬂows. “Liabilities” as used in this report, at times, include both Liabilities and Deferred Inﬂows. “Net Position - Other Assets” includes both Restricted and Unrestricted Net Position. “Net Position - Capital Assets” is Net Investment in Capital Assets. Volatility due to changes in accounting measurement: Over the course of the 10 years presented, the Government Accounting Standards Board (GASB) has made modiﬁcation to how certain items are presented (e.g. pensions and other post-employment beneﬁts). Such changes in recognition practices introduced volatility to the 10 year trend information, as presented. Additional Information Special thanks to Finance Department staff and their commitment to the underlying debits/credits. Contact Information: Deschutes County Finance Department 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 ﬁnance@deschutes.org -10- DESCHUTES COUNTY, OREGON Fiscal Year 2023 PAFR Award -11-