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HomeMy WebLinkAboutFY 2025 Annual Comprehensive Financial ReportAnnual Comprehensive Financial Report FOR THE FISCAL YEAR ENDED JUNE 30, 2025 DESCHUTES COUNTY, OREGON 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, 2025 Prepared by: Deschutes County Finance Department Robert Tintle, MPA Chief Financial Officer Jana Cain, CPA Controller Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 3 DESCHUTES COUNTY, OREGON TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal .......................................................................................................................................................8 Listing of Principal Officials ..........................................................................................................................................16 GFOA Certification of Achievement ............................................................................................................................17 FINANCIAL SECTION Report of Independent Auditors .................................................................................................................................20 Management’s Discussion and Analysis ....................................................................................................................24 Basic Financial Statements Government-Wide Financial Statements ■Statement of Net Position ....................................................................................................................39 ■Statement of Activities ..........................................................................................................................41 Fund Financial Statements: Governmental Funds ■Balance Sheet .........................................................................................................................................43 ■Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .....46 ■Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................47 ■Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................................................50 Fund Financial Statements: Proprietary Funds ■Statement of Net Position ....................................................................................................................52 ■Statement of Revenues, Expenses, and Changes in Net Position ...................................................54 ■Statement of Cash Flows ......................................................................................................................55 Fund Financial Statements: Fiduciary Funds ■Statement of Fiduciary Net Position ...................................................................................................57 ■Statement of Changes in Fiduciary Net Position ...............................................................................58 Notes to Financial Statements .................................................................................................................60 Required Supplementary Information Schedule of Proportionate Share of the Net Pension Liability ............................................................110 Schedule of Net Pension Liability Employer Contributions .................................................................112 Schedule of Changes in the County’s Total OPEB Liability ...................................................................114 Schedule of the Proportionate Share of the Net OPEB Liability (Asset) ..............................................116 Schedule of Net OPEB Liability (Asset) Employer Contributions .........................................................118 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ■General Fund .......................................................................................................................................120 ■Sheriff’s Office .....................................................................................................................................122 ■Countywide Law Enforcement County District ...............................................................................123 ■Rural Law Enforcement County District ...........................................................................................124 ■Road .....................................................................................................................................................125 ■Health Services ...................................................................................................................................126 Notes to Required Supplementary Information ...................................................................................127 4 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 DESCHUTES COUNTY, OREGON TABLE OF CONTENTS Other Supplementary Information Individual Fund Schedules - Major Funds Major Governmental Funds - Capital Project Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ■Campus Improvement .......................................................................................................................130 ■Road Capital Improvement Plan .......................................................................................................131 Major Proprietary Funds - Enterprise Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ■Solid Waste ..........................................................................................................................................133 ■Fair and Expo Center/RV Park ...........................................................................................................134 Individual Fund Schedules - Internal Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ■Internal Service Fund .........................................................................................................................136 Combining and Individual Fund Statements and Schedules – Nonmajor Funds Nonmajor Governmental Funds ■Combining Balance Sheet ..................................................................................................................139 ■Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................140 Nonmajor Special Revenue Funds ■Combining Balance Sheet ..................................................................................................................142 ■Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................147 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ■Justice Court ........................................................................................................................................155 ■Park Acquisition and Development ..................................................................................................156 ■County School Fund ...........................................................................................................................157 ■Special Transportation Fund .............................................................................................................158 ■Taylor Grazing .....................................................................................................................................159 ■Transient Room Tax ...........................................................................................................................160 ■Video Lottery .......................................................................................................................................161 ■Foreclosed Land Sales ........................................................................................................................162 ■Victims’ Assistance ..............................................................................................................................163 ■Law Library ..........................................................................................................................................164 ■County Clerk Records .........................................................................................................................165 ■Court Facilities .....................................................................................................................................166 ■Deschutes County Communication System Reserve .....................................................................167 ■Community Development .................................................................................................................168 ■GIS Dedicated ......................................................................................................................................169 ■Natural Resource Protection .............................................................................................................170 ■Federal Forest Title III .........................................................................................................................171 ■Surveyor ...............................................................................................................................................172 ■Public Land Corner Preservation ......................................................................................................173 ■Countywide Transportation SDC Improvement Fee ......................................................................174 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 5 DESCHUTES COUNTY, OREGON TABLE OF CONTENTS ■Dog Control .........................................................................................................................................175 ■Adult Parole and Probation ...............................................................................................................176 ■American Rescue Plan Act .................................................................................................................177 ■PERS Reserve .......................................................................................................................................178 ■Coordinated Houseless Response Office ........................................................................................179 ■Deschutes County 9-1-1 County Service District (9-1-1 C.S.D.) .....................................................180 ■Extension and 4-H ..............................................................................................................................181 ■Deschutes County Road Agency .......................................................................................................182 Nonmajor Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ■Debt Service Fund...............................................................................................................................184 Fiduciary Funds ■Combining Statement of Fiduciary Net Position ............................................................................186 ■Combining Statement of Changes in Fiduciary Net Position ........................................................187 Other Financial Schedules Schedule of Property Tax Transactions – All County Taxes .................................................................190 Schedule of Long-Term Debt Principal Transactions ...........................................................................191 Schedule of Long-Term Debt Interest Transactions .............................................................................192 Schedule of Future Debt Service Requirements of Pension Obligation Bonds ..................................193 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings – Governmental Activities .........................................................................194 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings – Business-Type Activities .........................................................................195 Schedule of Accountability .....................................................................................................................196 6 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 DESCHUTES COUNTY, OREGON TABLE OF CONTENTS STATISTICAL SECTION Statistical Section Contents ....................................................................................................................199 Financial Trends Net Position by Component – Last Ten Fiscal Years .............................................................................200 Changes in Net Position – Last Ten Fiscal Years ...................................................................................202 Fund Balances - Governmental Funds – Last Ten Fiscal Years ............................................................206 Changes in Fund Balances - Governmental Funds – Last Ten Fiscal Years .........................................208 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................211 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ...................................................213 Principal Property Taxpayers – Current Fiscal Year and Nine Years Ago ............................................215 Property Taxes, Levies, and Collections – Last Ten Fiscal Years ..........................................................216 Debt Capacity Ratios of Outstanding Debt by Type – Last Ten Fiscal Years................................................................217 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years .................................................219 Direct and Overlapping Governmental Activities Debt ........................................................................221 Legal Debt Margin Information – Last Ten Fiscal Years .......................................................................222 Demographic and Economic Information Demographic and Economic Statistics – Last Ten Calendar Years ......................................................225 Principal Employers – Current Year and Nine Years Ago .....................................................................226 Operating Information Full-Time Equivalent County Government Employees by Function/Program – Last Ten Fiscal Years ........................................................................................................................227 Operating Indicators by Function/Program – Last Ten Fiscal Years ....................................................228 Capital Asset Statistics by Function / Program – Last Ten Fiscal Years ...............................................230 AUDIT COMMENTS AND DISCLOSURES Audit Comments and Disclosures Required by State Regulations ......................................................233 Report of Independent Auditors Required by Oregon State Regulations ...........................................234 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 ............................236 INTRODUCTORYINTRODUCTORYSECTION ANNUAL COMPREHENSIVE FINANCIAL REPORT DESCHUTES COUNTY, OREGON 8 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 INTRODUCTORY SECTION Deschutes County, Oregon December 1, 2025 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, 2025, together with the opinion of our independent certified public accountants, Baker Tilly US, 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, 2025, 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. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Deschutes County’s MD&A can be found immediately following the independent auditors’ report. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 9 Deschutes County, Oregon INTRODUCTORY SECTION 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 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 County District, Rural Law Enforcement County District, Deschutes County 9-1-1 County Service District, Extension and 4-H County Service District, 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. 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 University Population Research Center, the population was estimated to be 212,141, as of July 1, 2025, 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 Venture Conference, Sunriver Music Festival, Sisters Outdoor Quilt Show, Cascade Children’s Festival/Balloons over Bend, Sisters Rodeo, WinterFest and Bend Film Festival. 10 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 INTRODUCTORY SECTION Deschutes County, Oregon Historically, Deschutes County was dominated by wood product manufacturing. However, the local economy has undergone significant changes in the last three decades. Now dominated by retail trade, healthcare 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. Largest Employers in Deschutes County (2025) Employer Number of Employees Type of Business St. Charles Health System 4,742 Healthcare Bend - La Pine School District 2,385 Education Deschutes County 1,334 Government Mt. Bachelor 1,094 Accommodation & Recreation BASX Solutions 1,060 Manufacturing Sunriver Resort 975 Accommodation & Recreation Redmond School District 901 Education Central Oregon Community College 801 Education City of Bend 783 Government Safeway (includes Albertsons) 781 Supermarket Chain Source: Econmic Development for Central Oregon According to the State of Oregon Employment Department, Deschutes County’s unemployment rate (seasonally adjusted) in June 2025 was 4.5 percent, lower than the statewide rate of 4.9 percent, and higher than the county’s rate of 4.1 percent in June 2024. The county’s unemployment rate dropped significantly from the pandemic levels of 16.2 percent in April 2020. Select industry gains and losses over-the-year for net employment change in Deschutes County indicates private education and health services jobs realized the largest increase while leisure and hospitality experienced the greatest job loss, followed by total nonfarm employment. In Fiscal Year 2025, the County’s assessed valuation of taxable property increased by 4.77%, approximately $1.5 billion, to a total of $33.7 billion. Formerly a region dependent on wood products, Deschutes County has steadily diversified its employment and economic base. For the past three decades, Deschutes County has experienced growth in the technology sector and is home to award winning craft breweries. Numerous companies from 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 11 Deschutes County, Oregon INTRODUCTORY SECTION 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. 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 $65.6 million, including County service districts, is included in the FY 2026 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 $21 million for the courthouse expansion project, $18.9 million in transportation improvements, and $4.2 million in Solid Waste improvements. Total capital spending for FY 2026 is a $8.2 million decrease, or 11.1% from the FY 2025 revised budget. The Board of County Commissioners establishes the goals and objectives to guide department operations each year. Through the following Fiscal Year 2026 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. 12 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 INTRODUCTORY SECTION Deschutes County, Oregon ■Promote well-being through behavioral health and community support programs. ■Ensure children, youth and families have equitable access to mental health services, housing, nutrition, childcare, and education/prevention services. ■Help to sustain natural resources and air and water quality in balance with other community needs. ■Apply lessons learned from pandemic response, community recovery, and other emergency response events 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. 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. ■Prioritize recruitment and retention initiatives to support, sustain, and enhance County operations. In FY 2026, the County will continue to implement the Commissioners’ goals and priorities, and support strategic investments, including the following activities: ■Solid Waste will reconvene the Solid Waste Advisory Committee to identify a location for a future county landfill or solid waste solution. ■The BOCC will establish a citizen committee to create representative districts for commissioners and introduce a ballot initiative for voters to decide. ■County Behavioral Health will seek funding to build a mental healthcare facility specifically for youth in Central Oregon. ■Health Services programs will continue to serve populations directly impacted by homelessness, economic and social disparities, climate changes, and increasingly troubling patterns in substance use disorders. ■Fair & Expo will complete its master plan and market analysis. ■Facilities will initiate and make significant progress on a Downtown Bend Campus Plan. ■A home in Redmond will become the first foster home in Central Oregon for adults with co-occurring Intellectual Developmental Disabilities and Mental Health. ■The District Attorney’s Office will work to implement a victim’s portal to provide real-time case updates, secure communication, access to resources, and more. ■The Sheriff’s Office will continue to develop the Deflection Program to prioritize initiatives that promote drug education, addiction treatment, and recovery. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 13 Deschutes County, Oregon INTRODUCTORY SECTION Tax Abatement Program The five strategic goals in the Deschutes County 2026 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 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, 2024. This was the 24th 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. 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, 2024. This was the 17th 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 6th consecutive year for the fiscal year ended June 30, 2024. 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. Acknowledgement 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 County Administrator Robert Tintle Chief Financial Officer 14 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 INTRODUCTORY SECTION Deschutes County, Oregon Deschutes County Organizational Chart As of June 30, 2025 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 15 Deschutes County, Oregon INTRODUCTORY SECTION Deschutes County Organizational Chart As of June 30, 2025 16 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 INTRODUCTORY SECTION Deschutes County, Oregon Listing of Principal Officials As of June 30, 2025 ELECTED OFFICIALS Board оf County Commissioners Name Position Term Expiration Anthony DeBone, Chair Position 1 January 2027 Patti Adair, Vice Chair Position 3 January 2027 Philip Chang Position 2 January 2029 Other Elected Officers Name Position Term Expiration Scot Langton County Assessor January 2027 Steve Dennison County Clerk January 2027 Steve Gunnels County District Attorney January 2027 Kent VanderKamp County Sheriff January 2029 William Kuhn County Treasurer January 2027 Charles Fadeley Justice of the Peace January 2029 APPOINTED OFFICIALS Name Position Nick Lelack County Administrator David Doyle County Counsel Robert Tintle Chief Financial Officer Elizabeth Pape County Internal Auditor Deschutes County Administrative Offices 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 17 Deschutes County, Oregon INTRODUCTORY SECTION Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Deschutes County Oregon For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024 Executive Director/CEO 18 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k ANNUAL COMPREHENSIVE FINANCIAL REPORT DESCHUTES COUNTY, OREGON FINANCIALFINANCIALSECTION 20 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 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, 2025, 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, 2025, 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, issued by the Comptroller General of the United States (Government Auditing Standards). 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. Emphasis of Matter – Change in Accounting Principle As discussed in Notes 1A, 4I, and 4J to the basic financial statements, the County adopted Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences during the year ended June 30, 2025. Our opinion is not modified with respect to this matter. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 21 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. 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 Proportionate Share of the Net Pension Liability, the Schedule of Net Pension Plan Liability Employer Contributions, the Schedule of Changes in the County’s 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. 22 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 We have applied certain limited procedures to the required supplementary information in accordance with GAAS, 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, Sheriff’s Office, Countywide Law Enforcement County District, Rural Law Enforcement County District, Road and Health Services (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 GAAS. 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 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. Such 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. The 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 GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 23 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2025, 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 December 1, 2025, 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 Moore, Principal, for Baker Tilly US, LLP Eugene, Oregon December 1, 2025 24 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Management’s Discussion and Analysis 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, 2025. 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 $333,544,504 as of June 30, 2025, an increase of $63,841,817 in net position from June 30, 2024. The main reasons for the increase was due to: ○During budget planning for FY 2025, the County prioritized preserving the general fund balance by establishing a goal to reserve 15% of anticipated property tax revenues. This strategic move underscored the importance of cost-conscious departmental operations. Efficiencies and savings were realized across the board, resulting in expenditures increasing by only $1.6 million, or 0.6%, from the previous year. ○County grants and contributions revenue rose by $20.4 million, or 22%, compared to the previous year, primarily due to a $12.4 million grant from the State of Oregon and $4.6 million in federal Local Assistance and Tribal Consistency funds for the County’s Courthouse remodel. Health Services also received an additional $7.3 million in state grant funding for Certified Community Behavioral Health Clinics (CCBHC). ○Solid Waste business-type activities net revenues and changes in net position increased to $2.1 million during FY 2025, a $4.6 million increase from the prior year. This increase was driven by a combination of factors. Revenue grew by $2.9 million due to increased waste volumes and slight fee increases. Landfill closure and post-closure expenses decreased by approximately $3 million from the prior year. Additionally with the completion of the new transfer station, funds previously allocated to its construction are now being reserved for future capital projects. The County continues to strategically manage its resources to support long-term infrastructure, handle capital expenditures, and address rising personnel costs and pension obligations while adapting to financial challenges, ensuring a stable and resilient fiscal position for the future. ■The County reported a combined fund balance at June 30, 2025, of $221,811,992 for its governmental funds, an increase of $33,527,468 from June 30, 2024. Of this balance, $60,595,950 is available to meet the County’s obligations. The remainder is either nonspendable or restricted. ■County General Fund ○The General Fund’s fund balance was $47,265,281 as of June 30, 2025, an increase of $11,958,743 from the balance at June 30, 2024. ○Fund balance is 77% percent of the Fund’s combined revenues and transfers in. Fund balance is 95% of the Fund’s combined expenditures and transfers out. ■The County’s Assessed Valuation of Taxable Property increased by 4.77% in FY 2025. ■Total debt was $59,092,900 as of June 30, 2025, compared to total debt of $64,314,800 as of June 30, 2024. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 25 Deschutes County, Oregon FINANCIAL SECTION 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 and Fair and Expo Center/RV Park. The government-wide financial statements include four county service districts and one county agency: ■Countywide Law Enforcement County District ■Rural Law Enforcement County District ■Deschutes County 9-1-1 County Service District ■Extension and 4-H County Service District ■Deschutes County Road Agency 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. 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. 26 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon 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 forty (40) individual governmental funds during FY 2025. 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’s Office) ■Health Services ■Countywide Law Enforcement County District ■Campus Improvement ■Rural Law Enforcement County District ■Road ■Road Capital Improvement Plan (Road CIP) 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. 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 and Fair and Expo Center/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 an internal service fund to account for its facilities, administrative, commissioner, finance, legal, personnel, information technology, insurance services, and health benefits functions. 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 and Fair and Expo Center/RV Park. All enterprise funds are reported as major funds of Deschutes County. The internal service fund is presented in the proprietary funds’ financial statements. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 27 Deschutes County, Oregon FINANCIAL SECTION Government-Wide Financial Analysis Deschutes County Net Position The County’s net position at June 30, 2025 was $333,544,504. 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. Governmental activities Business-type activities Total 2025 2024 2025 2024 2025 2024 Assets other than capital assets $ 309,552,457 $ 284,001,979 $ 34,908,671 $ 30,511,529 $ 344,461,128 $ 314,513,508 Capital assets 237,442,442 216,342,510 62,283,899 65,122,129 299,726,341 281,464,639 Total assets 546,994,899 500,344,489 97,192,570 95,633,658 644,187,469 595,978,147 Deferred outflows of resources 78,282,211 61,081,594 2,982,130 1,944,027 81,264,341 63,025,621 Current liabilities 71,806,270 86,987,277 4,157,758 6,417,823 75,964,028 93,405,100 Non-current liabilities 239,436,214 215,762,014 47,344,980 46,100,206 286,781,194 261,862,220 Total liabilities 311,242,484 302,749,291 51,502,738 52,518,029 362,745,222 355,267,320 Deferred inflows of resources 28,159,080 31,014,508 1,003,004 869,099 29,162,084 31,883,607 Net position: Net investment in capital assets 207,238,139 179,244,593 38,897,539 37,443,048 246,135,678 216,687,641 Restricted 125,412,153 102,213,751 18,567,429 17,778,135 143,979,582 119,991,886 Unrestricted (46,774,746) (53,796,060) (9,796,010) (11,030,626) (56,570,756) (64,826,686) Net position $ 285,875,546 $ 227,662,284 $ 47,668,958 $ 44,190,557 $ 333,544,504 $ 271,852,841 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, landfill closure and post-closure costs, public safety, county road, health & welfare, and OPEB RHIA totaled $143,979,582 or 43%. The unrestricted category of net position is negative for governmental activities and business-type activities by a total of $56,570,756 due in part to the net pension liability and total Other Post-Employment Benefits’ (OPEB) liability’s impact on net position. 28 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Changes in Net Position The net position of the County increased by $63,841,817 during FY 2025. As of July 1, 2024, the County implemented GASB Statement No. 101, Compensated Absences. GASB 101 requires recognition of a liability for certain accumulated leave attributable to past service that is more likely than not to be used for time off or paid, including salary-related payments. To conform to this guidance, the County recorded additional compensated absences liabilities and restated beginning net position, resulting in a decreases of $2,142,089 for governmental activities beginning net position and $8,065 for business-type activities beginning net position (total decrease in beginning net position of $2,150,154). This restatement impacted the government-wide statements and proprietary statements. Governmental activities Business-type activities Total FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 Program revenues: Charges for services $ 69,255,866 $ 56,746,517 $ 26,588,195 $ 23,237,387 $ 95,844,061 $ 79,983,904 Operating grants and contributions 100,553,549 92,606,334 66,622 53,167 100,620,171 92,659,501 Capital grants and contributions 12,490,351 - - - 12,490,351 - General revenues: Property taxes 110,569,139 105,685,127 - - 110,569,139 105,685,127 Other taxes 12,738,933 12,438,741 - - 12,738,933 12,438,741 Other 14,722,447 11,982,540 1,602,196 1,909,913 16,324,643 13,892,453 Total revenues 320,330,285 279,459,259 28,257,013 25,200,467 348,587,298 304,659,726 Expenses: General government 57,251,250 34,521,844 - - 57,251,250 34,521,844 Public safety 85,676,598 107,768,750 - - 85,676,598 107,768,750 County roads 35,859,987 35,000,781 - - 35,859,987 35,000,781 Health and welfare 77,446,852 76,969,969 - - 77,446,852 76,969,969 Interest on long-term debt 1,867,608 1,547,824 - - 1,867,608 1,547,824 Solid Waste - - 18,175,536 19,875,561 18,175,536 19,875,561 Fair and Expo Center/RV Park - - 8,467,650 7,376,334 8,467,650 7,376,334 Total expenses 258,102,295 255,809,168 26,643,186 27,251,895 284,745,481 283,061,063 Excess (deficiency) before transfers 62,227,990 23,650,091 1,613,827 (2,051,428) 63,841,817 21,598,663 Transfers (1,872,639) (1,802,609) 1,872,639 1,802,609 - - Change in net position 60,355,351 21,847,482 3,486,466 (248,819) 63,841,817 21,598,663 Net position, Beginning of year, as previously reported 227,662,284 205,814,802 44,190,557 44,439,376 271,852,841 250,254,178 Change in accounting principle (2,142,089) - (8,065) - (2,150,154) - Net position, Beginning of year, as restated 225,520,195 205,814,802 44,182,492 44,439,376 269,702,687 250,254,178 Net position, End of year $ 285,875,546 $ 227,662,284 $ 47,668,958 $ 44,190,557 $ 333,544,504 $ 271,852,841 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 29 Deschutes County, Oregon FINANCIAL SECTION Changes Due To Governmental Activities Governmental activities increased net position by $60,355,351, or 27%. Program expenses increased by 1%, program revenues increased by 22% and taxes increased by 4%. Governmental activities rely on general revenues to support County functions. 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. Total tax revenues for the year increased primarily due to increased property taxes revenue. Tax assessed values increased by 4.77% which was driven by increased local real estate market values. Federal and State operating grants and contributions provide significant resources that are used for public safety, health services, and fiscal recovery. Operating grant and contribution revenue accounted for 31% of total governmental activities revenue in FY 2025. A key reason for the increase in grant revenue from $92.6 million in FY 2024 to $100.5 million in FY 2025 was due to a major increase in the CCBHC funding. CCBHC revenues were budgeted at $4.7 million and the County received $12 million during FY 2025. Fees, fines and charges for services, which account for 22% of governmental activities funding, include state gas tax and registration fees, law enforcement related fees, and fees for services provided by the Clerk’s Office and Community Development. The primary reason for the $1.3 million, or 16%, increase in charges for services revenue for FY 2025 was the fee rate hike implemented by Community Development in November 2024. Millions Function/Program by Funding Type - Governmental Activities Support from General Revenues Support from Program Revenues General government Public safety County roads Health and welfare Interest and fiscal charges 0 20 40 60 80 100 Revenues by Source - Governmental Activities Other taxes Charges for services Investment revenues Operating grants and contributions Capital grants and contributions Property taxes 0 50 100 150 200 250 300 350 30 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Changes Due to Business-Type Activities Business-type activities remained stable and increased net position by $3,486,466. Solid Waste During FY 2025, the County’s solid waste operation experienced an increase in net position of $3,350,971. Operating income during FY 2025 was $2,922,842. The full cost of operations includes depreciation, amortization, and accrual of landfill closure and post-closure costs. Fair and Expo Center/RV Park The operating loss from the County’s Fair and Expo Center/RV Park during FY 2025 was $2,098,203; however, as the Fair & Expo Center/RV Park is a large contributor to the County’s tourism industry, its losses are partially offset by transfers from the Transient Room Tax Fund. FY 2025, the overall subsidy provided was $1,897,557. Fair & Expo Center/RV Park revenues increased to $6,359,937, an increase of $502,605, or 9%, from the prior fiscal year. All of the program revenues for business-type activities come from charges for services. Millions Function/Program by Funding Type - Business Activities Support from Non-Program Revenues and Transfers Support from Program Revenues Solid Waste Fair and Expo Center/RV Park 0 5 10 15 20 25 Revenues by Source - Business Activities Charges for services Operating grants and contributions Investment Revenues 0 5 10 15 20 25 30 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 31 Deschutes County, Oregon FINANCIAL SECTION 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, 2025, $221,811,992 is the reported combined ending fund balance for Deschutes County’s governmental funds, an increase of $33,527,468 from June 30, 2024. Changes, amounts and percentages, in the fund balances of the major governmental funds and of the other governmental funds were: Major Funds ■General Fund: increase of $11,958,743, 34% ■Sheriff, Countywide Law Enforcement District, and Rural Law Enforcement District (combined): increase of $8,135,193, 53% ■Road: decrease of $1,626,088, -11% ■Road CIP: increase of $2,370,616, 15% ■Health Services: increase of $10,518,568, 32% ■Campus Improvements: increase of $3,133,999, 15% Nonmajor Funds ■Nonmajor special revenue: decrease of $936,995, -2% ■Nonmajor debt service: decrease of $26,568, -73% Significant Changes in Major Funds General Fund As of June 30, 2025, the fund balance of Deschutes County’s General Fund was $47,265,281. Of this fund balance, $24,572,935 is nonspendable, committed, or assigned for specific use and $22,692,346 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, 2025, for the General Fund is 77% of total General Fund revenues and transfers in, and 95% of total General Fund combined expenditures and transfers out. Deschutes County’s General Fund balance increased by $11,958,743, or 34%, during FY 2025. Total revenues increased $5.1 million, or 10%. This change is attributed to the following fluctuations in revenue sources: ■Increases to property tax revenues of $1.9 million, or 4.77%. During FY 2025, assessed valuation of taxable property rose by 4.77% and the County levied the full permanent property tax rate of $1.2783 per $1,000 of assessed value. ■Increases to investment earnings of $797,060, or 41%, largely due to the high interest rate environment. ■Increases in charges for services revenue of $401,868, or 21%, as the Clerk’s Office operations resumed normal recording levels following the prior year decrease in real estate activities. ■Increases in payments on contracts of sale of $973,734, or 751%, due to County property sales during the fiscal year. ■Increases in other revenues of $582,163 over the prior year due the the County receiving $628,349 in Opioid Settlement funding during FY 2025. 32 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon During FY 2025, expenditures increased by $5.2 million, or 15%, due to increases in personnel costs, related to increased cost of living adjustments, union contract negotiations, and rising health benefits and retirement costs. Sheriff’s Office, Countywide Law Enforcement County District and Rural Law Enforcement County 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 $49,503,095 to the Sheriff’s fund, where all expenditures related to Sheriff’s services are recorded. The combined fund balances of these three major funds increased by $8,135,193. During FY 2025, assessed valuation of taxable property rose by 4.77% and both districts maintained their tax levies at their full permanent rates. This growth in assessed valuation of taxable property was primarily driven by the new construction throughout the County and an average increase of approximately 3% in the taxable property values. Amidst uncertain economic conditions and rising inflation, the Sheriff’s Office has continued to put forth efforts to reduce materials and supplies expenses to offset rising personnel costs. This resulted in the Sheriff’s Office’s total expenditures increasing by only $858,755, or 1.4%, over the previous year. Road The fund balance of the Road fund decreased by $1,626,088, or -11%, during FY 2025. During FY 2025, $8.6 million 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. 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 2025 were approximately $8.6 million from the Road Fund and $385,000 million from non-major special revenue funds. Capital outlay expenditures for road projects occurring during FY 2025 totaled $8,402,847, a 61% decrease over prior year capital outlay expenditures of $21,543,735, resulting in an overall increase of $2,370,616 to fund balance. Health Services Fund balance for the Health Services Fund increased by $10,518,568, or 32%. Revenue within the Health Services fund increased by $16,804,708, or 26%, from the prior year. State and federal grant revenues continued to remain a stable revenue source for Health Services, increasing 31% to $74.3 million in FY 2025 from $56.9 million in FY 2024. The most significant increase in grant revenue was directly related to the CCHBC grant which resulted in $7.3 million of additional funding for Health Services over original expectations of $4.7 million. Health Services expenditures increased by $5.5 million, or 8%, over the prior year, and is correlated to increased services provided by acquiring new funding sources. Campus Improvement The Campus Improvement fund revenue for FY 2025 consisted of $12.4 million of state grant funds and $2 million of investment earnings dedicated to campus improvements, specifically the major renovation of the County Courthouse. Transfers into this fund during FY 2025 were approximately $5.5 million, the majority from the Local Assistance and Tribal Consistency funds held in the American Rescue Plan Act fund (ARPA). Capital outlay expenditures for campus improvements occurring during FY 2025 totaled $15.5 million, a 68% increase over prior year capital outlay expenditures of $9.2 million, resulting in an overall decrease to fund balance of $3.1 million. Nonmajor Funds The combined fund balances of the County’s non-major special revenue funds decreased by $963,563, or 2%. The Transient Room Tax fund revenues increased from approximately $12.4 million in FY 2024 to $12.7 million in FY 2025, a small increase related to the mild fire season Central Oregon experienced compared to the prior year. Community Development fund balance has increased by $934,522 due to the 16% increase in revenues, a Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 33 Deschutes County, Oregon FINANCIAL SECTION direct result of increased fees imposed November 1, 2024. The County assesses fees for future transportation requirements which resulted in revenues of $1,388,396 in the Countywide Transportation SDC Improvement fund during FY 2025, resulting in an increase in fund balance of $1 million, or 49%. The debt service fund ending fund balance decreased by $26,568 during the fiscal year. The County allocates the exact amount of rent revenue to cover the debt service fund costs not covered by charges for services, investment income or transfers in, then any remaining rent revenue is recorded in the General Fund. Rent revenue and charges for services decreased from the prior year by $580,672, or 21%, corresponding with the decreased expenses of $316,409, or 6%. Proprietary Funds The information presented in the proprietary funds statement is similar to that in the government-wide financial statements but provides greater detail. At June 30, 2025, the net position of Solid Waste was $25,745,178, an increase of $3,350,971 compared to the prior fiscal year. Charges for services increased by $2,914,825, or 17%, as services available at transfer stations increased. Current year expenses for landfill closure and post-closure costs decreased $3,033,868. The estimate for post closure liability at June 30, 2025, was $18,470,436. Projections show Solid Waste revenues will continue to be adequate to cover the cost of current operations. The operation of Solid Waste provides the resources to be used in future years for the closure and post-closure costs associated with the landfills. At June 30, 2025, the net position of the Fair and Expo Center/RV Park was $21,923,780, an increase of $135,495. As the Fair and Expo Center/RV Park 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 $1,897,557 were transferred to Fair and Expo Center/RV Park during FY 2025. General Fund Budgetary Highlights There were 17 budget adjustments to the General Fund’s original budget during FY 2025: 1. Recognized Criminal Justice Restorative grant revenue for the District Attorney’s Office and increased program expense by $253,000. 2. Recognized the Organized Retail Theft grant revenue for the District Attorney’s Office and increased program expense by $17,877. 3. Increased Oregon Department of Veteran’s Affairs grant revenue for Veterans’ Services and program expense appropriations by $90,532. 4. Transferred $7,600 of appropriations from the Sheriff’s Office to the District Attorney’s Office for the Deschutes County Illegal Marijuana Market Enforcement grant program. 5. Recognized $934,426 of beginning working capital resources and increased contingency appropriations by the same amount. 6. Recognized non-departmental Wolf Depredation grant revenue and increased program expenses by $32,621. 7. Recognized transfers in from the American Rescue Plan Act revenue replacement category and increased program expenses by $3,198,234. 8. Recognized transfers in from the American Rescue Plan Act for the District Attorney’s Office and Victim’s Assistance Program and increased contingency by $420,878. 9. Recognized transfers in from the American Rescue Plan Act revenue replacement category and increased program expenses by $300,000. 10. Recognized non-departmental grant revenue from the Oregon Judicial Department and increased program expenses by $177,481. 11. Increased program expense appropriations and reduced contingency by $95,000 for contracted services provided by Saving Grace. 34 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon 12. Increased transfers in resources by $397,668, increased program expense by $34,998, and increased contingency by $362,670. This budget adjustment was required to balance transfers in and transfers out within the overall County budget. 13. Recognized non-departmental Wolf Depredation grant revenue and increased program expenses by $50,000. 14. Recognized non-departmental Community Development Block grant revenue and increased program expenses by $54,000 for funds passed through to NeighborImpact. 15. Increased transfers out appropriations and decreased program expense by $37,645 for Swalley Canal fortification work performed by Project Development. 16. Increased program expense and reduced contingency due to increased health insurance costs for the following departments: A. Property Value Appeal Board $2,200 B. Tax $23,400 C. Property Management $12,400 17. Recognized transfers in resources of $20,108 from the Road Building & Equipment Fund for the sale of a vehicle, increased transfers out appropriations by $45,108 to the Vehicle Replacement Fund, and reduced program expense appropriations by $25,000. The General Fund’s actual revenues including transfers were $2,136,362 more than estimated. The increase is mainly due to investment earnings exceeding projections by $1,017,069, unforeseen opioid settlement proceeds of $628,349, and an additional $531,259 in property tax revenues over the budgeted amount. General Fund expenditures, excluding transfers out, were $10,618,728 less than budgeted, nearly 21% of final appropriations. Factors contributing to this variance include unfilled positions and lower than anticipated expenditures of recategorized ARPA revenue and opioid settlement proceeds. Capital Asset and Debt Administration Capital Assets Deschutes County’s capital assets for its governmental and business-type activities as of June 30, 2025, was $299,726,341, net of accumulated depreciation and amortization. The book value of the depreciable assets is 46% of historical cost. Capital assets include land, buildings, equipment, software subscriptions, and infrastructure such as roads and bridges. Major capital asset events during FY 2025 included the following: ■Road CIP significant road projects included the completion of Hamehook Road Bridge replacement, $1.8 million incurred in FY 2025 with total project costs of $2.2 million, and the completion of Powell Butte Highway and Butler Market Road roundabout, $930,696 incurred in FY 2025 with total project costs of $2.9 million. ■The Campus Improvement fund made substantial progress on the courthouse expansion project during FY 2025. Construction began in May 2024, and the project is expected to be completed in August 2026. The expansion includes new courtrooms, judges’ chambers, and updated security features such as a sallyport and secure parking. Total cost of the courthouse expansion is estimated at $46.8 million; $23 million has been spent through June 30, 2025. ■In July 2024, Solid Waste completed the Negus Transfer Station in north county. The purpose of this transfer station is to expand solid waste services for residents and businesses in north Deschutes County. Total costs of the transfer station was $20.1 million. ■Deschutes County 911 county service district completed the radio system improvement projects. In 2017, the District partnered with the Oregon Department of Transportation to replace its aging analog radio systems with a system that addressed gaps in coverage and takes advantage of modern day technology. Total project costs were $2.9 million. Additional information on Deschutes County’s capital assets is included in Note 3E. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 35 Deschutes County, Oregon FINANCIAL SECTION Long-Term Debt As of June 30, 2025, Deschutes County’s outstanding debt was $73,182,712. Of this amount, $53.8 million comprises debt backed by the full faith and credit of the County. The remainder of the County’s long-term obligations is comprised of pension bonds, notes payable, unamortized premium/discount, leases payable and subscription liabilities. Below if a summary of the County’s debt by type and activity. Deschutes County’s Outstanding Debt Governmental activities Business-type activities Total 2025 2024 2025 2024 2025 2024 Pension Bonds $ 3,960,000 $ 4,660,000 $ - $ - $ 3,960,000 $ 4,660,000 Notes Payable - 232,646 1,292,900 2,107,154 1,292,900 2,339,800 Full Faith & Credit 34,361,169 36,976,873 19,478,831 20,338,127 53,840,000 57,315,000 Unamortized premium (discount), net 2,730,667 2,970,043 2,729,531 2,899,066 5,460,198 5,869,109 Lease Payable 7,424,417 7,721,892 12,877 4,853 7,437,294 7,726,745 Subscription Liabilities 1,192,320 1,232,706 - - 1,192,320 1,232,706 Total $ 49,668,573 $ 53,794,160 $ 23,514,139 $ 25,349,200 $ 73,182,712 $ 79,143,360 Deschutes County’s bonded debt decreased by $8,867,912 during the fiscal year 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 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 3G 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 over $82 billion, the current debt limitation for Deschutes County is $1,659,115,000. The County has no general obligation debt as of June 30, 2025. Additional information on Deschutes County’s long-term debt is included in Note 3G. 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 2025 and included employer rates to be in effect July 1, 2025 through June 30, 2027. The County expects PERS costs to increase approximately 4.5% during FY 2026. 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 $5,003,218 as of June 30, 2025, of which $5 million is being utilized to establish a PERS side account and receive a 25% match of $1.25 million from the State of Oregon. The County’s Assessed Value of Taxable Property increased from FY 2024 to FY 2025 by 4.77% to approximately $33.7 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 2026, the County’s general levy will remain at a rate of $1.2783 per $1,000 of assessed value. As part of the ongoing efforts to ensure equitable compensation, Deschutes County is undertaking a comprehensive wage equity analysis, in alignment with the Oregon Pay Equity laws (ORS 652.210-652.235). This analysis will assess wage disparities across the County’s workforce to address any inequities effectively. The project is slated for completion by April 2026. Due to the retrospective nature of the analysis, the County 36 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon anticipates executing retroactive payments to employees who may have been undercompensated. However, the total liability associated with these adjustments is currently indeterminate. We are committed to maintaining compliance with state laws and ensuring that our compensation practices are fair and equitable for all employees. 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, 1300 NW Wall Street, Suite 200, Bend, OR 97703. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 37 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k 38 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 Basic Financial Statements Deschutes County, Oregon FINANCIAL SECTION Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 39 Basic Financial Statements The notes to the financial statements are an integral part of this statement. Deschutes County, Oregon Statement of Net Position June 30, 2025 Governmental Activities Business-Type Activities Total ASSETS Current assets: Cash and cash equivalents $ 53,034,144 $ 6,272,369 $ 59,306,513 Investments, at fair value; plus accrued interest 225,186,030 26,583,781 251,769,811 Taxes receivable 3,665,658 - 3,665,658 Accounts receivable, net 19,384,977 1,602,970 20,987,947 Leases receivable, current portion 433,080 - 433,080 Inventory 3,342,082 24,466 3,366,548 Prepaid expenses 1,028,431 328,092 1,356,523 Total current assets 306,074,402 34,811,678 340,886,080 Noncurrent assets: Leases receivable 437,805 - 437,805 Net OPEB RHIA asset 2,643,009 96,993 2,740,002 Capital assets not being depreciated 51,653,111 2,721,286 54,374,397 Capital assets, net of accumulated depreciation/ amortization 185,789,331 59,562,613 245,351,944 Notes, contracts, and assessments receivable, net of allowance 397,241 - 397,241 Total noncurrent assets 240,920,497 62,380,892 303,301,389 Total assets 546,994,899 97,192,570 644,187,469 DEFERRED OUTFLOWS OF RESOURCES Debt refunding 503,269 127,779 631,048 Pension plan 64,534,674 2,368,311 66,902,985 OPEB County plan 13,169,098 483,281 13,652,379 OPEB RHIA 75,170 2,759 77,929 Total deferred outflows of resources 78,282,211 2,982,130 81,264,341 Total assets and deferred outflows of resources 625,277,110 100,174,700 725,451,810 40 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Deschutes County, Oregon Statement of Net Position June 30, 2025 Governmental Activities Business-Type Activities Total LIABILITIES Current liabilities: Accounts payable and other current liabilities 18,867,990 1,291,147 20,159,137 Payroll liabilities 7,369,482 196,261 7,565,743 Accrued interest 136,103 74,625 210,728 Unearned revenues 19,125,885 331,681 19,457,566 Current portion of noncurrent liabilities 26,306,810 2,264,044 28,570,854 Total current liabilities 71,806,270 4,157,758 75,964,028 Noncurrent liabilities: Compensated leave 16,481,988 606,658 17,088,646 Lease payable 7,424,417 12,877 7,437,294 Subscription liabilities 1,192,320 - 1,192,320 Total OPEB County plan liability 36,023,632 1,321,998 37,345,630 Net pension plan liability 155,206,875 5,695,793 160,902,668 Bonds and notes payable (net of premiums and discounts) 41,051,836 23,501,262 64,553,098 Accrued claims payable 8,361,956 - 8,361,956 Accrued landfill closure and postclosure costs - 18,470,436 18,470,436 Less current portion of noncurrent liabilities (26,306,810) (2,264,044) (28,570,854) Total noncurrent liabilities 239,436,214 47,344,980 286,781,194 Total liabilities 311,242,484 51,502,738 362,745,222 DEFERRED INFLOWS OF RESOURCES Lease resources 827,846 - 827,846 Pension plan 12,825,501 470,672 13,296,173 OPEB County plan 14,166,651 519,888 14,686,539 OPEB RHIA 339,082 12,444 351,526 Total deferred inflows of resources 28,159,080 1,003,004 29,162,084 Total liabilities and deferred inflows of resources 339,401,564 52,505,742 391,907,306 NET POSITION Net investment in capital assets 207,238,139 38,897,539 246,135,678 Restricted for: Capital projects 42,146,232 - 42,146,232 Public safety 23,343,748 - 23,343,748 County road 13,801,875 - 13,801,875 Health and welfare 43,477,289 - 43,477,289 Landfill closure and postclosure liability - 18,470,436 18,470,436 Net OPEB RHIA asset 2,643,009 96,993 2,740,002 Unrestricted (46,774,746) (9,796,010) (56,570,756) Total net position $ 285,875,546 $ 47,668,958 $ 333,544,504 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 41 Deschutes County, Oregon FINANCIAL SECTION Basic Financial Statements The notes to the financial statements are an integral part of this statement. Statement of Activities For the Fiscal Year Ended June 30, 2025 Program Revenues Net (Expense) Revenue and Changes in Net Position Function/Program Expenses Fees, Fines and Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Governmental: General government $ 57,251,250 $ 30,418,435 $ 6,162,889 $ 12,490,351 $ (8,179,575) $ - $ (8,179,575) Public safety 85,676,598 5,128,619 12,808,818 - (67,739,161) - (67,739,161) County roads 35,859,987 30,587,732 - - (5,272,255) - (5,272,255) Health and welfare 77,446,852 3,121,080 81,581,842 - 7,256,070 - 7,256,070 Interest and fiscal charges 1,867,608 - - - (1,867,608) - (1,867,608) Total governmental activities 258,102,295 69,255,866 100,553,549 12,490,351 (75,802,529) - (75,802,529) Business-type: Solid Waste 18,175,536 20,281,425 13,455 - - 2,119,344 2,119,344 Fair and Expo Center/ RV Park 8,467,650 6,306,770 53,167 - - (2,107,713) (2,107,713) Total business-type activities 26,643,186 26,588,195 66,622 - - 11,631 11,631 Total $ 284,745,481 $ 95,844,061 $ 100,620,171 $ 12,490,351 $ (75,802,529) $ 11,631 $ (75,790,898) General revenues: Property taxes, levied for general purposes $ 54,143,075 $ - $ 54,143,075 Property taxes, levied for sheriff services 56,426,064 - 56,426,064 Transient room tax 12,738,933 - 12,738,933 Investment earnings 14,722,447 1,602,196 16,324,643 Transfers (1,872,639) 1,872,639 - Total general revenues and transfers 136,157,880 3,474,835 139,632,715 Change in net position 60,355,351 3,486,466 63,841,817 Net position - beginning of year, as previously reported 227,662,284 44,190,557 271,852,841 Change in accounting principle (2,142,089) (8,065) (2,150,154) Net position - beginning of year, as restated 225,520,195 44,182,492 269,702,687 Net position - end of year $ 285,875,546 $ 47,668,958 $ 333,544,504 42 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k Deschutes County, Oregon FINANCIAL SECTION Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 43 Basic Financial Statements The notes to the financial statements are an integral part of this statement. Governmental Funds Balance Sheet June 30, 2025 General Fund Sheriff’s Office Countywide Law Enforcement District Rural Law Enforcement District Road Assets Cash and cash equivalents $ 9,926,821 $ 335,048 $ 3,062,830 $ 1,265,397 $ 2,874,020 Investments, at fair value; plus accrued interest 42,142,575 1,594,522 12,884,321 5,323,099 12,203,698 Taxes receivable 737,424 - 689,707 278,973 - Accounts receivable, net 1,091,800 335,639 - - 191,947 Notes, contracts, and assessments receivable 166,105 - - - 219,601 Lease receivable 426,165 - - - - Due from other funds 106,361 - - - - Inventory - - 496,976 205,364 2,639,742 Total assets $ 54,597,251 $ 2,265,209 $ 17,133,834 $ 7,072,833 $ 18,129,008 Liabilities Accounts payable and other current liabilities $ 1,320,841 $ 727,432 $ - $ - $ 1,407,613 Due to other funds - - - - - Payroll liabilities 3,317,065 1,248,194 - - 245,854 Deposits 17,377 - - - - Unearned revenue 1,499,753 236,987 - - 2,445,843 Total liabilities 6,155,036 2,212,613 - - 4,099,310 Deferred inflows of resources Unavailable revenue - property taxes 656,248 - 614,425 248,494 - Unavailable revenue - special assessments 7,070 - - - 88,214 Unavailable revenue - services provided 3,934 52,596 - - 139,609 Unavailable revenue - contracts of sale 110,170 - - - - Unavailable revenue - leases 399,512 - - - - Total deferred inflows of resources 1,176,934 52,596 614,425 248,494 227,823 Fund balances Nonspendable 46,213 - 496,976 205,364 2,639,742 Restricted - - 16,022,433 6,618,975 11,162,133 Committed 13,017,246 - - - - Assigned 11,509,476 - - - - Unassigned 22,692,346 - - - - Total fund balances 47,265,281 - 16,519,409 6,824,339 13,801,875 Total liabilities, deferred inflows of resources and fund balances $ 54,597,251 $ 2,265,209 $ 17,133,834 $ 7,072,833 $ 18,129,008 44 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Road Capital Improvement Plan Health Services Campus Improvement Other Governmental Funds Total Governmental Funds $ 3,756,519 $ 9,536,719 $ 5,865,870 $ 10,889,954 $ 47,513,178 15,951,531 40,495,282 24,908,599 46,238,407 201,742,034 - - - 1,959,554 3,665,658 - 12,577,247 - 2,632,741 16,829,374 - - - 11,535 397,241 - - - 308,719 734,884 - - - - 106,361 - - - - 3,342,082 $ 19,708,050 $ 62,609,248 $ 30,774,469 $ 62,040,910 $ 274,330,812 $ 1,870,169 $ 3,043,399 $ 1,956,469 $ 5,950,806 $ 16,276,729 - - - 106,361 106,361 - 1,481,839 - 670,628 6,963,580 - 3,468 - - 20,845 - 8,059,430 4,509,649 2,353,051 19,104,713 1,870,169 12,588,136 6,466,118 9,080,846 42,472,228 - - - 194,423 1,713,590 - - - - 95,284 - 6,543,823 - 689,211 7,429,173 - - - - 110,170 - - - 298,863 698,375 - 6,543,823 - 1,182,497 10,046,592 - - - - 3,388,295 17,837,881 43,477,289 16,957,356 45,751,680 157,827,747 - - 7,350,995 6,025,887 26,394,128 - - - - 11,509,476 - - - - 22,692,346 17,837,881 43,477,289 24,308,351 51,777,567 221,811,992 $ 19,708,050 $ 62,609,248 $ 30,774,469 $ 62,040,910 $ 274,330,812 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 45 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k 46 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2025 Total fund balances for governmental funds $ 221,811,992 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds: Governmental capital assets 430,541,412 Less accumulated depreciation (194,192,472) 236,348,940 Prepaid expenses 770,428 OPEB RHIA Plan asset 2,474,814 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: Deferred outflows of resources - Debt refunding costs 503,269 Deferred outflows of resources - Pension plan 60,427,859 Deferred outflows of resources - OPEB County plan 12,331,047 Deferred outflows of resources - OPEB RHIA 70,386 73,332,561 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: Bonds and notes payable (38,321,169) Accrued interest on bonds and notes payable (136,103) Unamortized premium and discount on bonds (2,730,667) Lease payable (7,395,912) Subscription liabilities (1,065,587) Total OPEB County Plan liability (33,731,171) Net pension liability (145,329,865) (228,710,474) Accrued compensated absences are not due and payable in the current period and, therefore, are not reported in the governmental funds. (14,821,716) 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. 9,348,217 Deferred inflows of resources are applicable to future periods and, therefore, are not reported in the governmental funds: Deferred inflows of resources - OPEB County plan (13,265,118) Deferred inflows of resources - OPEB RHIA (317,504) Deferred inflows of resources - Pension plan (12,009,316) (25,591,938) Internal service fund is 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 fund is included in governmental activities in the statement of net position. 10,912,722 Net position of governmental activities $ 285,875,546 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 47 Deschutes County, Oregon FINANCIAL SECTION Basic Financial Statements The notes to the financial statements are an integral part of this statement. Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2025 General Fund Sheriff’s Office Countywide Law Enforcement District Rural Law Enforcement District Road Revenues Taxes - property $ 41,724,259 $ - $ 40,254,633 $ 16,093,108 $ - Taxes - other - - - - - Licenses and permits 48,210 422,049 - - - Fines, forfeitures and penalties 328,235 181,011 - - 12,873 Investment earnings 2,756,103 92,189 925,889 363,585 811,286 Rents 814,784 - - - 1,298 Intergovernmental 5,635,346 56,155,852 - - 25,484,408 Charges for services 2,273,579 332,626 - - 2,750,268 Payments on contracts of sale 1,103,349 - 767 306 1,270 Other 644,390 234,219 - - - Total revenues 55,328,255 57,417,946 41,181,289 16,456,999 29,061,403 Expenditures Current: General government 15,112,755 - - - - Public safety 21,266,416 59,431,092 35,845,323 13,657,772 - County roads - - - - 15,533,016 Health and welfare 985,945 - - - - Debt service: Principal payments 85,530 383,832 - - 5,450 Interest 2,422 27,424 - - 80 Trustee fees - - - - - Capital outlay 2,027,696 1,353,078 - - 6,517,612 Total expenditures 39,480,764 61,195,426 35,845,323 13,657,772 22,056,158 Excess (deficiency) of revenues over expenditures 15,847,491 (3,777,480) 5,335,966 2,799,227 7,005,245 Other financing sources (uses) Issuance of long-term debt - leases 31,314 77,203 - - - Issuance of long-term debt - subscriptions 146,656 265,505 - - - Transfers in 6,405,544 3,751,787 - - - Transfers out (10,472,262) (317,015) - - (8,631,333) Total other financing sources (uses) (3,888,748) 3,777,480 - - (8,631,333) Net change in fund balances 11,958,743 - 5,335,966 2,799,227 (1,626,088) Fund balances - beginning of year As previously reported 37,885,862 - 11,183,443 4,025,112 15,427,963 Changes within the financial reporting entity (2,579,324) - - - - Fund balances - beginning of year, as restated 35,306,538 - 11,183,443 4,025,112 15,427,963 Fund balances - end of year $ 47,265,281 $ - $ 16,519,409 $ 6,824,339 $ 13,801,875 48 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Road Capital Improvement Plan Health Services American Rescue Plan Act Campus Improvement Other Governmental Funds Total Governmental Funds $ - $ - $ - $ 12,380,251 $ 110,452,251 - - - 12,738,931 12,738,931 - - - 1,725,442 2,195,701 - - - 626,361 1,148,480 867,588 2,405,657 1,953,875 3,329,014 13,505,186 - 6,734 - 1,169,310 1,992,126 890,114 74,345,133 12,490,351 28,577,641 203,578,845 - 3,666,884 26,223 12,334,683 21,384,263 - - - 5,407 1,111,099 - 700,290 - 1,210 1,580,109 1,757,702 81,124,698 14,470,449 72,888,250 369,686,991 - - 1,360,009 21,310,221 37,782,985 - - - 19,244,916 149,445,519 - - - 9,688,552 25,221,568 - 75,805,612 - - 76,791,557 - 386,194 - 4,007,969 4,868,975 - 149,522 - 1,887,211 2,066,659 - - - 901 901 8,402,847 238,545 15,515,140 4,442,372 38,497,290 8,402,847 76,579,873 16,875,149 60,582,142 334,675,454 (6,645,145) 4,544,825 (2,404,700) 12,306,108 35,011,537 - 93,870 - 367,841 570,228 - - - 45,360 457,521 9,015,761 7,502,688 5,538,699 4,982,860 37,197,339 - (1,622,815) - (18,665,732) (39,709,157) 9,015,761 5,973,743 5,538,699 (13,269,671) (1,484,069) 2,370,616 10,518,568 3,133,999 (963,563) 33,527,468 15,467,265 32,958,721 $ 166,574 21,174,352 52,574,556 190,863,848 - - (166,574) - 166,574 (2,579,324) 15,467,265 32,958,721 21,174,352 52,741,130 188,284,524 $ 17,837,881 $ 43,477,289 $ 24,308,351 $ 51,777,567 $ 221,811,992 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 49 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k 50 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. 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, 2025 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds $ 33,527,468 Financial resources received that are not revenues in the statement of activities: Payments on land sale contracts (111,883) Issuance of long-term debt - leases and subscriptions (1,027,749) 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 552,676 Unavailable revenue - property taxes 117,606 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 3,548,350 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 37,407,550 Depreciation and amortization expense (15,854,939) 21,552,611 Net effect of miscellaneous transactions involving capital assets (disposals, sales, trade-ins, transfers, and adjustments) (222,752) Payments of lease and subscription liabilities is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statement of net position: 1,331,554 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 (61,441) Amortization of bond premium / (discount), net 239,376 (Increase) / decrease in accrued interest 11,088 (Increase) / decrease in compensated leave 129,154 (Increase / (decrease) in prepaid expense (117,119) (Increase) / decrease in net OPEB County plan liability (11,895,287) (Increase) / decrease in deferred outflows - OPEB County plan 8,404,107 (Increase) / decrease in deferred inflows - OPEB County plan 2,476,733 Increase / (decrease) in net OPEB RHIA asset 654,527 Increase / (decrease) in deferred outflows - OPEB RHIA 31,750 (Increase) / decrease in deferred inflows - OPEB RHIA (111,776) Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 51 Deschutes County, Oregon FINANCIAL SECTION Basic Financial Statements The notes to the financial statements are an integral part of this statement. (Increase) / decrease in net Pension plan liability (17,601,233) Increase / (decrease) in deferred outflows - Pension plan 8,670,664 (Increase) / decrease in deferred inflows - Pension plan (1,056,320) (10,225,777) Increase in internal service fund net position 11,313,247 Total net adjustments - year ended June 30, 2025 26,827,883 Change in net position of governmental activities - year ended June 30, 2025 $ 60,355,351 52 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Proprietary Funds Statement of Net Position June 30, 2025 Business-Type Activities - Enterprise Funds Governmental Activities Solid Waste Fair and Expo Center/RV Park Total Internal Service Fund ASSETS Current assets: Cash and cash equivalents $ 4,898,251 $ 1,374,118 $ 6,272,369 $ 5,520,966 Investments, at fair value, plus accrued interest 20,778,507 5,805,274 26,583,781 23,443,996 Accounts receivable 1,473,312 129,658 1,602,970 2,555,603 Lease receivable, current portion - - - 69,030 Inventory - 24,466 24,466 - Prepaid expenses - 328,092 328,092 258,003 Total current assets 27,150,070 7,661,608 34,811,678 31,847,598 Noncurrent assets: Lease receivable - - - 66,971 Net OPEB RHIA asset 67,242 29,751 96,993 168,195 Capital assets: Land 1,791,352 132,685 1,924,037 - Construction in progress 391,146 406,103 797,249 - Buildings and improvements 30,318,573 22,897,923 53,216,496 - Land improvements 37,722,799 11,478,385 49,201,184 195,977 Equipment and vehicles 10,208,438 1,233,864 11,442,302 1,436,167 Lease equipment 12,224 5,982 18,206 50,612 Infrastructure 6,223,456 - 6,223,456 - Intangible 123,595 - 123,595 1,350,098 Subscription assets - - - 378,848 Less accumulated depreciation and amortization (41,444,778) (19,217,848) (60,662,626) (2,318,200) Total noncurrent assets 45,414,047 16,966,845 62,380,892 1,328,668 Total assets 72,564,117 24,628,453 97,192,570 33,176,266 DEFERRED OUTFLOWS OF RESOURCES Debt refunding 125,220 2,559 127,779 - Pension plan 1,641,872 726,439 2,368,311 4,106,815 OPEB County plan 335,043 148,238 483,281 838,051 OPEB RHIA 1,913 846 2,759 4,784 Total deferred outflows of resources 2,104,048 878,082 2,982,130 4,949,650 Total assets and deferred outflows of resources 74,668,165 25,506,535 100,174,700 38,125,916 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 53 Deschutes County, Oregon FINANCIAL SECTION Basic Financial Statements The notes to the financial statements are an integral part of this statement. Proprietary Funds Statement of Net Position (Continued) June 30, 2025 Business-Type Activities - Enterprise Funds Governmental Activities Solid Waste Fair and Expo Center/RV Park Total Internal Service Fund LIABILITIES Current liabilities: Accounts payable and retainage payable 1,006,970 284,177 1,291,147 2,591,261 Payroll liabilities 144,874 51,387 196,261 405,902 Accrued interest 74,180 445 74,625 - Unearned revenues 6,205 325,476 331,681 327 Current portion of noncurrent liabilities 1,980,678 283,366 2,264,044 7,005,018 Total current liabilities 3,212,907 944,851 4,157,758 10,002,508 Noncurrent liabilities: Compensated leave 445,294 161,364 606,658 1,660,272 Lease payable 11,714 1,163 12,877 28,505 Subscription liabilities - - - 126,733 Net pension liability 3,948,712 1,747,081 5,695,793 9,877,010 Total OPEB County plan liability 916,499 405,499 1,321,998 2,292,461 Bonds and notes (net of unamortized premiums and discounts) 23,202,752 298,510 23,501,262 - Accrued claims payable - - - 8,361,956 Accrued landfill closure and postclosure costs 18,470,436 - 18,470,436 - Less current portion of non-current liabilities (1,980,678) (283,366) (2,264,044) (7,005,018) Total noncurrent liabilities 45,014,729 2,330,251 47,344,980 15,341,919 Total liabilities 48,227,636 3,275,102 51,502,738 25,344,427 DEFERRED INFLOWS OF RESOURCES Lease resources - - - 129,471 Pension plan 326,302 144,370 470,672 816,185 OPEB County plan 360,422 159,466 519,888 901,533 OPEB RHIA 8,627 3,817 12,444 21,578 Total deferred inflows of resources 695,351 307,653 1,003,004 1,868,767 Total liabilities and deferred inflows of resources 48,922,987 3,582,755 52,505,742 27,213,194 NET POSITION Net investment in capital assets 22,257,559 16,639,980 38,897,539 938,264 Restricted for: Landfill closure and postclosure liability 18,470,436 - 18,470,436 - Net OPEB RHIA asset 67,242 29,751 96,993 168,195 Unrestricted (15,050,059) 5,254,049 (9,796,010) 9,806,263 Total net position $ 25,745,178 $ 21,923,780 $ 47,668,958 $ 10,912,722 54 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended June 30, 2025 Business-Type Activities - Enterprise Funds Governmental Activities Solid Waste Fair and Expo Center/RV Park Fair and Expo Center RV Park Total Internal Service Fund OPERATING REVENUES Charges for services $ 20,294,880 $ 6,359,937 $ 26,654,817 $ 68,760,827 Total operating revenues 20,294,880 6,359,937 26,654,817 68,760,827 OPERATING EXPENSES Personnel 6,380,450 2,164,570 8,545,020 14,178,730 Materials and services 6,914,682 5,452,830 12,367,512 44,715,600 Landfill closure/postclosure care costs 751,111 - 751,111 - Depreciation and amortization 3,325,795 840,740 4,166,535 402,876 Total operating expenses 17,372,038 8,458,140 25,830,178 59,297,206 Operating income (loss) 2,922,842 (2,098,203) 824,639 9,463,621 NONOPERATING REVENUES (EXPENSES) Investment earnings 1,245,768 356,428 1,602,196 1,217,261 Interest expense (787,059) (9,510) (796,569) (4,605) Loss on sale of assets (16,439) - (16,439) (2,209) Total nonoperating revenues (expenses) 442,270 346,918 789,188 1,210,447 Income (loss) before transfers 3,365,112 (1,751,285) 1,613,827 10,674,068 TRANSFERS Transfers in - 1,897,557 1,897,557 639,179 Transfers out (14,141) (10,777) (24,918) - Net other financing sources (uses) (14,141) 1,886,780 1,872,639 639,179 Change in net position 3,350,971 135,495 3,486,466 11,313,247 Net position - beginning of year, As previously stated 22,397,785 - 18,676,126 3,116,646 44,190,557 (2,961,045) Change within the financial reporting entity - 21,792,772 (18,676,126) (3,116,646) - 2,579,324 Change in accounting principle (3,578) (4,487) (8,065) (18,804) Net position - beginning of year, as restated 22,394,207 21,788,285 44,182,492 (400,525) Net position - end of year $ 25,745,178 $ 21,923,780 $ 47,668,958 $ 10,912,722 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 55 Deschutes County, Oregon FINANCIAL SECTION Basic Financial Statements The notes to the financial statements are an integral part of this statement. Proprietary Funds Statement of Cash Flows For the Fiscal Year Ended June 30, 2025 Business-Type Activities - Enterprise Funds Governmental Activities Solid Waste Fair and Expo Center/RV Park Total Internal Service Fund Cash Flows From Operating Activities Receipts from customers $ 18,652,571 $ 5,927,295 $ 24,579,866 $ - Receipts connected with interfund services provided - - - 66,398,470 Payments to employees (5,235,241) (2,034,304) (7,269,545) (15,513,280) Payments to suppliers (9,029,905) (5,460,644) (14,490,549) (45,194,989) Net cash provided (used) by operating activities 4,387,425 (1,567,653) 2,819,772 5,690,201 Cash Flows From Noncapital Financing Activities Transfers in - 1,897,557 1,897,557 639,179 Transfers out (14,141) (10,777) (24,918) - Net cash provided (used) by noncapital financing activities (14,141) 1,886,780 1,872,639 639,179 Cash Flows From Capital And Related Financing Activities Acquisition and construction of capital assets (1,296,638) (35,882) (1,332,520) (92,489) Principal paid on capital debt (1,360,758) (312,792) (1,673,550) - Interest paid on capital debt (944,298) (9,715) (954,013) - Payments for leases and subscriptions (2,680) (1,520) (4,200) (116,726) Interest paid on leases and subscriptons (36) (48) (84) (4,605) Proceeds from leases - - - 182,450 Net cash provided (used) by capital and related financing activities (3,604,410) (359,957) (3,964,367) (31,370) Cash Flows From Investing Activities Sale (purchase) of investments 207,851 275,966 483,817 (4,386,918) Interest 900,395 256,959 1,157,354 888,175 Net cash provided (used) by investing activities 1,108,246 532,925 1,641,171 (3,498,743) Net increase (decrease) in cash and cash equivalents 1,877,120 492,095 2,369,215 2,799,267 Balances - beginning of year 3,021,131 882,023 3,903,154 2,721,699 Balances - end of year $ 4,898,251 $ 1,374,118 $ 6,272,369 $ 5,520,966 56 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Proprietary Funds Statement of Cash Flows (Continued) For the Fiscal Year Ended June 30, Business-Type Activities - Enterprise Funds Governmental Activities Solid Waste Fair and Expo Center/RV Park Total Internal Service Fund Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 2,922,842 $ (2,098,203) 824,639 $ 9,463,621 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Amortization of deferred lease resources - - - (174,731) Depreciation and amortization expense 3,325,795 840,740 4,166,535 402,876 Change in operating accruals Receivables (1,648,514) (353,794) (2,002,308) (2,607,029) Prepaid expenses and inventory - (26,409) (26,409) 244,672 Accounts payable (2,115,223) (7,814) (2,123,037) (336,178) Payroll liabilities 27,817 1,117 28,934 29,872 Claims payable - - - 31,520 Unearned revenues 6,205 (52,439) (46,234) - Compensated leave 74,749 (55,543) 19,206 76,155 Net OPEB RHIA asset (26,165) (7,732) (33,897) (9,169) Net OPEB liability 242,428 28,992 271,420 (539,212) Net pension liability 826,380 163,432 989,812 (892,196) Accrued closure / postclosure 751,111 - 751,111 - Net cash provided (used) by operating activities $ 4,387,425 $ (1,567,653) $ 2,819,772 $ 5,690,201 Noncash Investing, Capital, And Financing Activities Change in fair value of investments $ 345,373 $ 27,930 $ 373,303 $ 329,086 Subscription asset and liability $ - $ - $ - $ 66,882 Lease asset and liablity $ 12,224 $ - $ - $ 15,788 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 57 Deschutes County, Oregon FINANCIAL SECTION Basic Financial Statements The notes to the financial statements are an integral part of this statement. Fiduciary Funds Statement of Fiduciary Net Position June 30, 2025 Custodial Funds Assets Cash and cash equivalents $ 1,771,789 Investments, at fair value; plus accrued interest 7,523,649 Taxes receivable for other governments 7,567,256 Accounts receivable 134,572 Prepaids 8,809 Notes receivable 446,220 Total assets 17,452,295 Liabilities Accounts payable 161,652 Deposits 4,501,338 Due to other governments 8,646,109 Unearned revenue - land auction sales 446,220 Unearned revenue - services 123,299 Total liabilities 13,878,618 Net Position Restricted for: Individuals, organizations, and other governments 3,573,677 Total net position $ 3,573,677 58 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Basic Financial Statements The notes to the financial statements are an integral part of this statement. Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended June 30, 2025 Custodial Funds Additions Investment earnings Interest on land sale loans $ 25,422 Net increase in fair value of investments 460,843 Property tax collections for other governments 549,037,623 Fines, forfeitures and penalties 1,618,302 Collections for services provided to other governments 145,806 Charges for services 3,089,408 Other 2,014 Total additions 554,379,418 Deductions Payment of property taxes to other governments 547,958,424 Payment of services to other governments 835,097 Public safety 4,170,939 Total deductions 552,964,460 Change in Fiduciary net position 1,414,958 Net position - beginning of year 2,158,719 Net position - end of year $ 3,573,677 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 59 Notes to Financial Statements 60 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 Note 1 - Summary of Significant Accounting Policies 61 A. Reporting Entity 61 B. Government-wide and Fund Financial Statements 62 C. Measurement Focus, Basis of Accounting and Financial Statement Presentation 62 D. Budget Policy 64 E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 65 Note 2 - Stewardship, Compliance, and Accountability 69 A. Budgetary Information 69 Note 3 - Detailed Notes on All Funds 69 A. Cash and Cash Equivalents 69 B. Investments 70 C. Receivables 73 D. Deferred Outflow of Resources 75 E. Capital Assets 76 F. Interfund Activity 78 G. Noncurrent Liabilities 79 H. Fund Balance Policies 85 I. Segment Information 86 Note 4 - Other Information 87 A. Risk Management 87 B. Contingent Liabilities and Commitments 87 C. Participation in Public Employees Retirement System 88 D. Other Post-Employment Benefits (OPEB) 95 E. Landfill Closure and Postclosure Care Costs 100 F. Public-Private Partnership 101 G. Tax Abatement 101 H. Fund Structure 103 I. Adoption of New Standards 105 J. Restatements of Beginning Balances 106 K. Subsequent Events 107 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 61 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Notes to Financial Statements 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 County District (District #1) – The district contracts with Deschutes County for law enforcement services that are provided to all County residents. ■Rural Law Enforcement County 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 County Service District – The district operates the County 9-1-1 call center. ■Extension and 4-H County 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 Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences (GASB 101) - The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used, and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. See Note 4I for more information related to the implementation of GASB 101. GASB Statement No. 102, Certain Risk Disclosures (GASB 102) - The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement 62 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies (Continued) requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. There was no impact to the current year financial statements with the implementation of GASB 102. 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: Note 1 - Summary of Significant Accounting Policies (Continued) GASB Statement No. GASB Accounting Standard Fiscal Year Effective 103 Financial Reporting Model Improvements 2026 104 Disclosure of Certain Capital Assets 2026 B. Government-wide and Fund Financial Statements The government-wide financial statements, consisting of the Statement of Net Position and the Statement of Activities, report information on all non-fiduciary activities of the County and its component units. The effect of interfund activity has been removed from these statements, except where necessary to account for the cost of a program. Governmental activities, which are supported primarily by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect expenses, as charged by internal service funds, are included as part of the specific function or segment expenses as shown on the Statement of Activities. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Fiduciary funds are excluded from the government-wide financial statements. Major individual governmental and enterprise funds are reported in separate columns in the fund financial statements. 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 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 63 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies (Continued) 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. 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. Major Funds Governmental Funds – The County reports the following major governmental funds: General Fund The financial resources of the general government are accounted for in the General Fund, 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 County District and Rural Law Enforcement County 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 County District (District #1) Property taxes levied by the Countywide Law Enforcement County 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 County District (District #2) Property taxes levied by the Rural Law Enforcement County 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. 64 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies (Continued) 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. Campus Improvements The financial resources, primarily debt and grant revenues, are used for CIP projects for campus improvements. Enterprise Funds – The County operates two enterprise activities, both of which have been determined to be major: Solid Waste Accounts for the operations of the County’s landfill and transfer station sites. Fair and Expo Center/RV Park Accounts for the operations of the County’s Fair & Expo Center and RV Park, including the annual county fair. Additionally, the County reports the following fund types: Internal service fund 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 fund Accounts for various activities including the accumulation and distribution of property taxes, escrow for developers, funds prior to adjudication, inter-governmental law enforcement activities, justice court and various other collection and escrow activities. Amounts reported as program revenues include: (1) charges to customers or applicants for goods, services or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. General revenues include all taxes and investment earnings (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 ongoing operations. The principal operating revenues of Solid Waste and Fair and Expo Center/ RV Park 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 Local Budget Law as adopted under Oregon Revised Statute Chapter 294. Any deviation between Oregon Local 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, as required by State law. The County does not prepare budgets for its fiduciary funds. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 65 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies (Continued) 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. 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, 2025, 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 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. 5. Prepaid Expenses 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. 6. 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. 66 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies (Continued) 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 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: Note 1 - Summary of Significant Accounting Policies (Continued) Assets Years Buildings 30-60 Building improvements 10-15 Land improvements 10-30 Equipment and vehicles 2-20 Infrastructure 20-50 Intangibles 3-10 7. 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. 8. 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. 9. Unearned Revenues Unearned revenues will be recognized as revenue in the fiscal year earned in accordance with the accrual basis of accounting. Revenue is considered earned when measurable and all eligibility criteria are met. 10. 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. 11. 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 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 67 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies (Continued) time and sick leave. Upon separation with the County, non-represented employees receive one-half of any sick leave earned. 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. The oldest accumulated leave is the leave used first. Vacation pay, amounts of accumulated sick leave that are more likely than not to be used by employees or paid upon separation, and compensatory time in lieu of overtime pay, including payroll taxes, are accrued. Liabilities, including payroll taxes, are also accrued for commencing parental leave, military leave, bereavement leave, and jury duty. 12. 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. 13. 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. 14. 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. 15. 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. 16. 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. 17. 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. 68 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies (Continued) ○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. ○County Road – Represents funds generated by fuel tax and related revenues legally restricted by Oregon statute for road and road related projects. ○Health and welfare – Represents funds generated by grant revenue restricted to approved activities. ○Landfill closure and postclosure liability – Represents the County’s environmental obligations derived from the Knott landfill closure and post-closure maintenance cost estimates. ■Unrestricted represents all other net positions that are not restricted and do not meet the definition of net investment in capital assets. 18. 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 was 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. 19. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 69 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements ! 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. Note 3 - Detailed Notes on All Funds A. Cash and Cash Equivalents Custodial Credit Risk Custodial credit risk on deposits 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 Federal Deposit Insurance Corporation (FDIC) 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. 70 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) At June 30, 2025, the County had the following bank balances: Note 3 – Detailed Notes On All Funds (Continued) Insured (FDIC) $ 251,744 Collateralized by securities held by the pledging financial institution in the financial institution’s name 20,999,673 Total $ 21,251,417 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. B. Investments As of June 30, 2025, the County had the following investments and maturities: Investment Type Fair Value Weighted Average Maturity (Days) Federal agency securities $ 223,917,642 400 Corporate notes 10,843,416 210 Municipal bonds 22,647,441 338 Total fair value 257,408,499 Portfolio weighted average maturity 386 Accrued interest 1,884,961 Investments, at fair value; plus accrued interest $ 259,293,460 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 one nationally recognized statistical rating organization. State and Municipal securities are required to be rated at least Aa3/AA-/AA-. As of June 30, 2025, the County’s investments in corporate bonds were rated Aa2 to Aaa and its state and municipal securities were rated A1 to Aaa. United States Government agencies and instrumentalities that are only implicitly guaranteed by the United States were rated AA1. Certain agency and treasury securities are either principal or interest coupons stripped from otherwise rated securities. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 71 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) Custodial Credit Risk Custodial credit risk on investments is the risk that, in the event of a failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. All of the County’s investments, except the State of Oregon local government investment pool, not evidenced by securities, are held in safekeeping by the financial institutions’ trust department in the County’s name. Note 3 – Detailed Notes On All Funds (Continued) 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 ■33% in any single government sponsored enterprise ■$61,749,000 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 ■25% for Corporate notes, with 5% limit in any one corporation, subsidiaries or affiliates ■25% for State and Local Government Securities On June 30, 2025, 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 OSTF Board. The Governor appoints the members of the Oregon Investment Council and the OSTF 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, 2025, 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, 2025, was AA (S&P). The County’s participation in LGIP is voluntary. Weighted average maturity is 386 days. 72 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements 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, 2025, as follows: Reconciliation of deposits and investments to the Statement of Net Position and Statement of Net Position - Fiduciary Funds Total Deposits $ 61,078,302 Total Investments, at fair value plus accrued interest 259,293,460 $ 320,371,762 Included in the following captions: Statement of Net Position Total Cash and Cash Equivalents $ 59,306,513 Total Investments, at fair value plus accrued interest 251,769,811 Total Statement of Net Position 311,076,324 Statement of Net Position - Fiduciary Funds Total Cash and Equivalents 1,771,789 Total Investments, at fair value plus accrued interest 7,523,649 Total Fiduciary Funds 9,295,438 Total cash and cash equivalents and investments $ 320,371,762 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. 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. Total Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) As of June 30, 2025 Federal Agency Securities $ 223,917,642 $ - $ 223,917,642 $ - Corporate Notes 10,843,416 - 10,843,416 - Municipal Bonds 22,647,441 - 22,647,441 - Total investments $ 257,408,499 $ - $ 257,408,499 $ - Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 73 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) C. Receivables Summary of Receivables As of year-end, receivables for the major funds and the nonmajor funds and internal service fund, including the applicable allowances for uncollectible accounts are aggregated as follows: Property Taxes Receivable Transient Room Taxes Receivable Accounts Receivable Lease Receivable Notes, Contracts, and Assessments Receivable Total Receivables General Fund $ 737,424 $ - 1,091,800 $ 426,165 $ 166,105 $ 2,421,494 Sheriff’s Office - - 335,639 - - 335,639 Countywide LED 689,707 - - - - 689,707 Rural LED 278,973 - - - - 278,973 Road - - 191,947 - 219,601 411,548 Health Services - - 12,577,247 - - 12,577,247 Solid Waste - - 1,473,312 - - 1,473,312 Fair & Expo - - 129,658 - - 129,658 Nonmajor Gov’t 217,980 1,741,574 2,632,741 308,719 11,535 4,912,549 Internal Service - - 2,555,603 136,001 - 2,691,604 Total $ 1,924,084 $ 1,741,574 $ 20,987,947 $ 870,885 $ 397,241 $ 25,921,731 As of June 30, 2025, $1,044,834, net of allowance for uncollectible amounts of $835,543, was 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. 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 7.0%. 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 the prevailing rates. As of June 30, 2025: ■$10,170 was due from contracts from sales of real property ■$53,283 was due from economic development loans, net of allowance for uncollectible amounts of $51,500 ■$245,574 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, 2025, $88,214 was due from local improvement district assessments. Lease Receivables During the year ended June 30, 2025, the County had eight lease receivables in which it is acting as lessor. Under GASB 87, Leases, 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. 74 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) Original Amount June 30, 2024 Increases Decreases June 30, 2025 Governmental Activities: Building lease; interest at 1.451%, principal and interest of 6,763 monthly, due 2029 $ 611,284 $ 383,194 $ - $ (80,801) $ 302,393 Building lease; interest at 0.893%, principal and interest of 14,306 monthly, due 2026 800,258 279,934 - (185,434) 94,500 Building lease; interest at 0.893%, principal and interest of 57,244 monthly, due 2025, extended through August 2025 2,793,042 731,313 122,444 (731,313) 122,444 Land lease; interest at 0.514%, principal and interest of 432 monthly, due 2025, extended through August 2025 10,476 5,329 889 (5,329) 889 Building lease; interest at 2.312%, principal and interest of 2,356 monthly, due 2029 152,536 138,720 - (27,976) 110,744 Building lease; interest at 3.432%, principal and interest of 175 monthly, due 2038 32,768 30,666 - (1,133) 29,533 Building lease; interest at 2.786%, principal and interest of 4,380 annually, due 2027 17,833 13,453 - (4,181) 9,272 Building lease; interest at 2.786%, principal and interest of 7,820 monthly, due 2027 377,033 291,727 - (90,617) 201,110 $ 4,795,230 $ 1,874,336 $ 123,333 $ (1,126,784) $ 870,885 Future maturities are as follows: Governmental Activities Fiscal Year Principal Interest 2026 $ 433,080 $ 12,011 2027 225,414 6,859 2028 119,732 3,134 2029 69,003 1,228 2030 1,848 812 2031- 2035 11,994 2,986 2036 - 2038 9,814 690 Total $ 870,885 $ 27,720 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 75 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) 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, 2025, and other items related to the County defined benefit pension plans that have been classified as a deferred outflow of resources. 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, 2025, 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 ) $ 503,269 $ 127,779 $ 631,048 Total deferred outflows - refunding 503,269 127,779 631,048 Deferred outflows - Defined Benefit Pension Plan: Contributions subsequent to the measurement date 19,797,018 726,525 20,523,543 Differences between expected and actual experience 9,194,571 337,423 9,531,994 Changes in proportionate share 8,710,820 319,670 9,030,490 Net difference between projected and actual earnings on investments 9,859,976 361,843 10,221,819 Changes of assumptions 15,604,549 572,657 16,177,206 Differences between employer contribution and employer’s proportionate share of system contributions 1,367,740 50,193 1,417,933 Total deferred outflows - pension 64,534,674 2,368,311 66,902,985 Deferred outflows - OPEB County Plan: Differences between expected and actual experience 10,763,026 394,983 11,158,009 Changes of assumption or other inputs 2,406,072 88,298 2,494,370 Total deferred outflows - OPEB County Plan 13,169,098 483,281 13,652,379 Deferred outflows - OPEB RHIA: Contributions subsequent to the measurement date 545 20 565 Net difference between projected and actual earnings on investments 74,625 2,739 77,364 Total deferred outflows - OPEB RHIA 75,170 2,759 77,929 Total deferred outflows of resources $ 78,282,211 $ 2,982,130 $ 81,264,341 76 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) E. Capital Assets Capital asset activity for the year ended June 30, 2025, was as follows: June 30, 2024 Increases Decreases Transfers June 30, 2025 Governmental Activities: Capital assets, not being depreciated or amortized: Land $ 14,042,548 $ - $ - $ - $ 14,042,548 Construction in progress 23,992,786 32,324,041 - (18,706,264) 37,610,563 Total capital assets, not being depreciated or amortized 38,035,334 32,324,041 - (18,706,264) 51,653,111 Capital assets, being depreciated or amortized: Right-to-use lease land 235,937 - - - 235,937 Buildings and improvements 117,162,451 417,142 - 2,915,899 120,495,492 Lease buildings 5,579,174 24,283 (14,373) - 5,589,084 Land improvements 5,826,770 14,530 - - 5,841,300 Equipment 35,774,773 2,040,511 (1,817,654) 2,952,433 38,950,063 Lease equipment 588,845 193,891 (159,222) - 623,514 Vehicles 18,864,980 1,676,066 (1,645,759) - 18,895,287 Lease vehicles 1,177,080 - (62,055) - 1,115,025 Infrastructure 166,954,571 - - 12,825,597 179,780,168 Lease infrastructure 1,685,136 367,841 - - 2,052,977 Intangible assets 6,152,060 - (279,513) - 5,872,547 Subscription assets 2,484,249 524,403 (160,043) - 2,848,609 Total capital assets, being depreciated or amortized 362,486,026 5,258,667 (4,138,619) 18,693,929 382,300,003 Accumulated depreciation and amortization: Right-to-use lease land (19,543) (9,507) - - (29,050) Buildings and improvements (46,284,169) (2,917,721) - - (49,201,890) Lease buildings (785,615) (482,293) 14,373 - (1,253,535) Land improvements (4,160,309) (185,505) - - (4,345,814) Equipment (22,678,245) (2,738,027) 1,775,740 12,335 (23,628,197) Lease equipment (266,477) (148,956) 159,222 - (256,211) Vehicles (10,672,912) (1,684,965) 1,540,392 - (10,817,485) Lease vehicles (226,681) (266,676) 38,009 - (455,348) Infrastructure (92,900,889) (6,761,316) - - (99,662,205) Lease infrastructure (301,069) (128,978) - - (430,047) Intangible assets (5,251,899) (346,493) 279,513 - (5,318,879) Subscription assets (631,042) (587,373) 106,404 - (1,112,011) Total accumulated depreciation and amortization (184,178,850) (16,257,810) 3,913,653 12,335 (196,510,672) Total capital assets, being depreciated and amortized, net 178,307,176 (10,999,143) (224,966) 18,706,264 185,789,331 Governmental activities capital assets, net $ 216,342,510 $ 21,324,898 $ (224,966) $ - $ 237,442,442 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 77 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) June 30, 2024 Increases Decreases Transfers June 30, 2025 Business-type activities: Capital assets, not being depreciated or amortized: Land $ 1,924,037 $ - $ - $ - $ 1,924,037 Construction in progress 20,691,477 476,202 - (20,370,430) 797,249 Total capital assets, not being depreciated or amortized 22,615,514 476,202 - (20,370,430) 2,721,286 Capital assets, being depreciated or amortized: Buildings and improvements 32,988,727 30,025 - 20,197,744 53,216,496 Land improvements 49,010,532 190,652 - - 49,201,184 Equipment 10,096,377 575,754 (185,741) 172,686 10,659,076 Leased equipment 16,694 12,224 (10,712) - 18,206 Vehicles 745,935 59,888 (22,597) - 783,226 Infrastructure 6,223,456 - - - 6,223,456 Intangible assets 123,595 - - - 123,595 Total capital assets, being depreciated or amortized 99,205,316 868,543 (219,050) 20,370,430 120,225,239 Less accumulated depreciation for: Buildings and improvements (15,243,041) (1,892,398) - (1,177) (17,136,616) Land improvements (33,925,191) (974,452) - 1,089 (34,898,554) Equipment (6,674,059) (612,040) 169,301 88 (7,116,710) Leased equipment (11,935) (4,147) 10,712 - (5,370) Vehicles (419,602) (57,194) 22,597 - (454,199) Infrastructure (311,173) (622,346) - - (933,519) Intangible assets (113,700) (3,958) - - (117,658) Total accumulated depreciation and amortized (56,698,701) (4,166,535) 202,610 - (60,662,626) Total capital assets, being depreciated and amortized, net 42,506,615 (3,297,992) (16,440) 20,370,430 59,562,613 Business-type activities capital assets, net $ 65,122,129 $ (2,821,790) $ (16,440) $ - $ 62,283,899 78 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) Depreciation and amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 2,155,723 Public safety 4,651,647 County roads 7,936,367 Health and welfare 1,111,197 15,854,934 Capital assets held by the government’s internal service funds are charged to the various functions based on their usage of the assets 402,876 Total depreciation and amortization expense - governmental activities $ 16,257,810 Business-type activities: Solid Waste $ 3,325,795 Fair and Expo Center/RV Park 840,740 Total depreciation and amortization expense - business-type activities $ 4,166,535 F. Interfund Activity Interfund activity for the year ended June 30, 2025, was as follows: Transfers In General Fund Sheriff’s Office Road CIP Health Services Campus Improvement Nonmajor Gov’t Internal Service Fund Fair and Expo Center/RV Park Total Transfers Out General Fund $ - $ - $ - $ 6,946,116 $ 577,083 $ 2,771,214 $ 177,849 $ - $ 10,472,262 Sheriff’s Office 29,668 - - 30,000 - 257,347 - - 317,015 Road - - 8,631,333 - - - - - 8,631,333 Health Services 1,165,061 - - - 105,309 - 352,445 - 1,622,815 Solid Waste - - - - - - 14,141 - 14,141 Fair and Expo Center/RV Park - - - - - - 10,777 - 10,777 Nonmajor Gov’t 5,210,815 3,751,787 384,428 526,572 4,856,307 1,954,299 83,967 1,897,557 18,665,732 Total $ 6,405,544 $ 3,751,787 $ 9,015,761 $ 7,502,688 $ 5,538,699 $ 4,982,860 $ 639,179 $ 1,897,557 $ 39,734,075 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 79 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) Interfund transfers are utilized for the following purposes: ■Certain special revenue funds and the internal service fund require additional resources from the General Fund to fund operations. ■The non-major debt service fund requires transfers from operating funds to meet annual debt service requirements. ■Resources are transferred from some operating funds to the vehicle replacement function within the internal service fund. ■Fair and Expo/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 Payable, 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, 2025, is $1,659,115,000 for general obligation bonds, and $829,557,000 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, 2025, balance on direct borrowings related to business-type activities is $1,292,900. 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 Payable currently outstanding are as follows: Purpose Interest Rates Balance at June 30, 2025 Governmental activities: Bonds 2.00% - 6.85% $ 38,321,169 Premiums (discounts) 2,730,667 41,051,836 Business-Type activities: Bonds 1.68% - 4.00% 19,478,831 Notes payable 1.68% - 2.49% 1,292,900 Premiums (discounts) 2,729,531 23,501,262 Bonds and notes payable (net of premiums and discounts) $ 64,553,098 80 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) Debt Service Requirements Debt service requirements on the County bonds and notes as of June 30, 2025, are as follows: Governmental Activities Bonds Principal Interest Fiscal Year 2026 $ 4,180,414 $ 1,646,361 2027 4,447,240 1,454,112 2028 3,754,066 1,246,386 2029 2,104,834 1,085,147 2030 2,174,545 1,019,250 2031-2035 9,590,070 4,039,538 2036-2040 6,750,000 2,300,750 2041-2045 5,320,000 681,250 Total $ 38,321,169 $ 13,472,794 Business-Type Activities Bonds Notes from Direct Borrowings Principal Interest Principal Interest Fiscal Year 2026 $ 889,586 $ 886,176 $ 642,700 $ 21,839 2027 927,760 851,891 650,200 10,784 2028 960,934 815,811 - - 2029 1,000,166 778,179 - - 2030 1,040,455 738,730 - - 2031-2035 5,214,930 3,044,553 - - 2036-2040 5,465,000 1,841,000 - - 2041-2045 3,980,000 404,250 - - Total $ 19,478,831 $ 9,360,590 $ 1,292,900 $ 32,623 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 81 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) 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, 2025, are as follows: As Restated June 30, 2024 Increases Decreases June 30, 2025 Due Within One Year Governmental activities: Accrued claims payable Internal service fund $ 8,330,436 $ 30,277,998 $ (30,246,478) $ 8,361,956 $ 5,361,242 Lease payable Governmental funds 7,697,069 570,228 (871,385) 7,395,912 856,355 Internal service fund 24,823 15,789 (12,107) 28,505 9,713 Subscription liabilities Governmental funds 1,068,235 449,521 (452,169) 1,065,587 389,670 Internal service fund 164,471 66,882 (104,620) 126,733 106,613 Pension obligation bonds 4,660,000 - (700,000) 3,960,000 1,465,000 Full faith & credit obligations 36,976,873 - (2,615,704) 34,361,169 2,715,414 Unamortized premium (discount) 2,970,043 - (239,376) 2,730,667 239,376 Notes payable 232,646 - (232,646) - - Compensated absences, net Governmental funds 14,950,870 - (129,154) 14,821,716 13,635,977 Internal service fund 1,584,444 75,828 - 1,660,272 1,527,450 $ 78,659,910 $ 31,456,246 $ (35,603,639) $ 74,512,517 $ 26,306,810 Business-type activities: Lease payable $ 4,853 $ 12,224 $ (4,200) $ 12,877 $ 4,098 Full faith & credit obligations 20,338,127 - (859,296) 19,478,831 889,586 Unamortized premium (discount) 2,899,066 - (169,535) 2,729,531 169,535 Notes payable 2,107,154 - (814,254) 1,292,900 642,700 Compensated absences, net 587,451 19,207 - 606,658 558,125 Landfill closure and postclosure 17,719,325 751,111 - 18,470,436 - $ 43,655,976 $ 782,542 $ (1,847,285) $ 42,591,233 $ 2,264,044 Leases Payable The County is committed under various leases for buildings, equipment, infrastructure (9-1-1 radio towers) and land. As of June 30, 2025, the County has 74 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. 82 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) The total expended for such leases for the fiscal year ended June 30, 2025, was approximately $1,119,000. The future minimum lease payments for these leases are as follows: Governmental Activities Principal Payments Interest Payments Total Payments Fiscal Year 2026 $ 866,068 $ 220,886 $ 1,086,954 2027 873,270 200,457 1,073,727 2028 761,842 179,784 941,626 2029 559,484 161,508 720,992 2030 413,398 148,553 561,951 2031-2035 1,951,471 544,638 2,496,109 2036-2040 1,560,171 191,235 1,751,406 2041-2045 314,558 47,126 361,684 2046-2050 124,155 5,109 129,264 $ 7,424,417 $ 1,699,296 $ 9,123,713 Business-Type Activities Principal Payments Interest Payments Total Payments Fiscal Year 2026 $ 4,098 $ 304 $ 4,402 2027 3,019 209 3,228 2028 3,105 123 3,228 2029 2,655 34 2,689 $ 12,877 $ 670 $ 13,547 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, 2025, the County has 16 agreements in which these right-to-use assets are reported. Under GASB 96, Subscription-Based Information Technology Arrangements, 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 83 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) The total expended for these software arrangements for the fiscal year ended June 30, 2025, was approximately $506,000. The future minimum payments for these SBITDAs are as follows: Governmental Activities Principal Payments Interest Payments Total Payments Fiscal Year 2026 $ 496,283 $ 35,473 $ 531,756 2027 281,018 22,643 303,661 2028 213,542 13,524 227,066 2029 201,477 6,600 208,077 $ 1,192,320 $ 78,240 $ 1,270,560 Hospital Facility Authority of Deschutes County Conduit Financing On December 26, 1988, the County created the Hospital Facility 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. A summary of the Authorities conduit debt is as follows: Obligor Debt Issue June 30, 2025 St. Charles Health System, Inc. The Authority Hospital Revenue Bonds Series 2016A $ 91,115,000 St. Charles Health System, Inc. The Authority Hospital Revenue Bonds Series 2020A 48,125,000 St. Charles Health System, Inc. The Authority Hospital Revenue Bonds Series 2020B 50,000,000 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 $ 264,500,000 84 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements 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, OPEB plans, and leases: Deferred Inflows of Resources Governmental Activities Business-Type Activities Total Deferred inflows - Pension Plan: Differences between expected and actual experience $ 370,428 $ 13,594 $ 384,022 Changes in assumptions 19,991 734 20,725 Changes in proportionate share 4,993,106 183,238 5,176,344 Differences between employer contributions and employer’s proportionate share of system contributions 7,441,976 273,106 7,715,082 Total deferred inflows - Pension Plan 12,825,501 470,672 13,296,173 Deferred inflows - OPEB County Plan: Differences between expected and actual experience 8,311,081 305,000 8,616,081 Changes of assumption or other inputs 5,855,570 214,888 6,070,458 Total deferred inflows - OPEB County Plan 14,166,651 519,888 14,686,539 Deferred inflows - OPEB RHIA: Differences between expected and actual experience 51,693 1,897 53,590 Changes of assumptions or other inputs 33,431 1,227 34,658 Changes in proportionate share 253,958 9,320 263,278 Total deferred inflows - OPEB RHIA 339,082 12,444 351,526 Deferred Inflows - Lease resources 827,846 - 827,846 Total deferred inflows of resources $ 28,159,080 $ 1,003,004 $ 29,162,084 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 85 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) H. 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). Major Special Revenue Funds Major Capital Projects Funds General Fund Countywide Law Enforcement District Rural Law Enforcement District Road Health Services Road CIP Campus Improvement Other Funds Total Fund Balances: Nonspendable: Long-term notes receivable $ 46,213 $ - $ - $ - $ - $ - $ - $ - $ 46,213 Inventory - 496,976 205,364 2,639,742 - - - - 3,342,082 Total Nonspendable 46,213 496,976 205,364 2,639,742 - - - - 3,388,295 Restricted to: Public safety - 16,022,433 6,618,975 - - - - 16,931,324 39,572,732 Economic development - - - - - - - 4,267,601 4,267,601 Health services - - - - 43,477,289 - - - 43,477,289 Social services - - - - - - - 3,443,292 3,443,292 General government - - - - - - - 13,219,615 13,219,615 Law library - - - - - - - 131,504 131,504 Park development and rangeland - - - - - - - 3,193,519 3,193,519 Technology improvements - - - - - - - 252,775 252,775 Road improvement/ maintenance - - - 11,162,133 - 17,837,881 - 4,312,050 33,312,064 Expansion of facilities - - - - - - 16,957,356 - 16,957,356 Total Restricted - 16,022,433 6,618,975 11,162,133 43,477,289 17,837,881 16,957,356 45,751,680 157,827,747 Committed to: Economic stabilization - - - - - - - 5,003,218 5,003,218 Economic development 369,888 - - - - - - - 369,888 County reserves 12,647,358 - - - - - - 2,501 12,649,859 Health services - - - - - - - 109,192 109,192 Debt service - - - - - - - 9,583 9,583 Communication systems - - - - - - - 901,393 901,393 Expansion of facilities - - - - - - 7,350,995 - 7,350,995 Total Committed 13,017,246 - - - - - 7,350,995 6,025,887 26,394,128 Assigned to: Public safety 2,774,191 - - - - - - - 2,774,191 General government 8,735,285 - - - - - - - 8,735,285 Total Assigned 11,509,476 - - - - - - - 11,509,476 Unassigned: 22,692,346 - - - - - - - 22,692,346 Total Fund Balance $ 47,265,281 $ 16,519,409 $ 6,824,339 $ 13,801,875 $ 43,477,289 $ 17,837,881 $ 24,308,351 $ 51,777,567 $ 221,811,992 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 86 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 3 – Detailed Notes On All Funds (Continued) by the resolution remains in place until a similar action is taken (the adoption of another resolution) or to remove or revise the limitation. Countywide Law Enforcement County District (District #1), Rural Law Enforcement County District (District #2) and Deschutes County 9-1-1 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. Campus Improvements fund balance is restricted to provide funding for the campus 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 2026 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 to/from 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 funds in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column. I. Segment Information The County has two enterprise activities: ■The Solid Waste fund is used to account for the operations of the County’s landfill at Knott Road and 27th Street in Bend, and four rural 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 and Expo Center/RV Park fund is used to account for operations of the County’s Fair and Expo Center, RV Park, and annual county fair all located in Redmond, Oregon. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 87 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements 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 Service District. That District is only covered under 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 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 the departments, based on the estimated need to pay prior and current claims and to accumulate resources for future losses. The Internal Service Fund, which accounts for all insurance programs, is reporting a net position of $10,912,722 and represents 36% of the FY 2025 claims expenses. Changes in the claim liabilities are as follows: ! Insurance Department Health Benefits Department Total Claims payable, June 30, 2023 $ 6,334,918 $ 1,628,618 $ 7,963,536 FY 2024 claims expense 2,706,038 25,102,245 27,808,283 FY 2024 claims paid (2,288,520) (25,152,863) (27,441,383) Claims payable, June 30, 2024 6,752,436 1,578,000 8,330,436 FY 2025 claims expense 2,046,190 28,231,808 30,277,998 FY 2025 claims paid (2,797,197) (27,449,281) (30,246,478) Claims payable, June 30, 2025 $ 6,001,429 $ 2,360,527 $ 8,361,956 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 88 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) 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, 2025, the County had no material commitments outstanding. C. Participation in Public Employees Retirement System Plan Description Employees of the County are provided with pensions through 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 Note 4 – Other Information (Continued) Plan Benefits 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 most commonly based on years of service and final average salary. A percentage (2.0% for Police and Fire employees, 1.67% 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 they are 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 was equal to $238,567 as of January 1, 2025, and is indexed with inflation every year. 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% multiplied by the number of years of service and the final average salary. Normal retirement age for Police and Fire members is age 55 (effective January 1, 2025) or age 53 with 25 years of retirement credit. To retire under the Police and Fire classification, the individual’s last 60 months of retirement credit preceding retirement eligibility must be classified as retirement credit for service as a police officer or a firefighter. General service: 1.5% multiplied by the number of years of service and the final average salary. Normal retirement age for General Service members is age 65 or age 58 with 30 years of retirement credit. Plan Benefits Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 89 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) Chapter 238-Tier One and Tier Two Chapter 238A-OPSRP-DB Pension Benefits (Continued) Police and Fire members may purchase increased benefits that are payable between the date of retirement and age 65. A member is considered vested and will be eligible at minimum retirement age for a service retirement allowance if they have contributions in each of five calendar years or have reached at least 50 years of age before ceasing employment with a participating employer (age 45 for Police and Fire members). General Service employees may retire after reaching age 55. Police and Fire members are eligible after reaching age 50. Tier One General Service employee benefits are reduced if retirement occurs prior to age 58 with fewer than 30 years of service. Police and Fire member benefits are reduced if retirement occurs prior to age 55 with fewer than 25 years of service. Tier Two members are eligible for full benefits at age 60. The plans are closed to new members hired on or after August 29, 2003. Under Senate Bill 1049, passed during the 2019 legislative session, the salary included in the determination of final average salary is limited for all members beginning in 2021. The limit was equal to $238,567 as of January 1, 2025, and is indexed with inflation every 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, or, 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% of the member’s salary determined as the last full month of employment before the disability occurred. 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 adjustments (COLA). The COLA is capped at 2.0 percent. Under ORS 238.360, monthly benefits are adjusted annually through cost-of-living adjustments (COLA). The COLA is capped at 2.0 percent. 90 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) 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, 2021, actuarial valuation, which became effective July 1, 2023. The state of Oregon and certain schools, community colleges, and political subdivisions have made unfunded actuarial liability payments, and their rates have been reduced. Effective January 1, 2020, Senate Bill 1049 requires employers to pay contributions on reemployed OPERS retirees’ salaries as if they were active members, excluding IAP (6%) contributions. Reemployed retirees do not accrue additional benefits while they work after retirement. Employer contributions for the year ended June 30, 2025, were $20,523,543, 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, 2025, were: Chapter 238 - Tier One and Tier Two Chapter 238A - OPSRP-DB General Service 20.03% 17.00% Police and Fire 27.16% 21.79% Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 91 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions As of June 30, 2025, the County reported a liability of $160,902,668 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. The County’s proportion of the net pension liability was based on the County’s projected long-term contribution effort as compared to the total projected long-term contribution effort of all employers. Rates of every employer have at least two major components: Normal 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, 2025 (measurement date of June 30, 2024), the County’s proportion was 0.72389846 percent, which was a decrease of 5.08% from its proportion presented on June 30, 2024 (measurement date of June 30, 2023). For the year ended June 30, 2025, the County recognized a pension expense of $30,261,278. At June 30, 2025, the County reports deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 92 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 9,531,994 $ 384,022 Changes of assumptions 16,177,206 20,725 Net difference between projected and actual earnings on investments 10,221,819 - Changes in proportionate share 9,030,490 5,176,344 Contributions made to the plan subsequent to measurement date 20,523,543 - Differences between employer contribution and employer’s proportionate share of system contributions 1,417,933 7,715,082 $ 66,902,985 $ 13,296,173 Net Deferred Outflows of Resources $ 53,606,812 Less: Contributions Made Subsequent to Measurement Date 20,523,543 Total $ 33,083,269 The County’s contributions made subsequent to the measurement date will be recognized in the County’s pension expense in the following year. The net amount of the County’s remaining deferred outflows of resources and deferred inflows of resources that will be recognized in the County’s pension expense in the subsequent five years in the aggregate are shown in the table below: 1st Fiscal Year - Fiscal Year 2026 $ 1,669,078 2nd Fiscal Year - Fiscal Year 2027 18,065,976 3rd Fiscal Year - Fiscal Year 2028 8,715,043 4th Fiscal Year - Fiscal Year 2029 3,947,743 5th Fiscal Year - Fiscal Year 2030 685,429 Total $ 33,083,269 Actuarial Assumptions The employer contribution rates, effective July 1, 2023, through June 30, 2025, were set using the entry age normal actuarial cost method. For the Tier One/Tier Two component of the OPERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), and (2) an amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 22 years. For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (a) an amount for the normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), (b) an actuarially determined amount for funding a disability benefit component, and (c) an amount for the amortization of unfunded actuarially accrued liabilities, which are being amortized over a fixed period with new unfunded actuarially accrued liabilities being amortized over 16 years. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 93 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) A summary of the economic assumptions used for the December 31, 2022, actuarial valuation are shown below: Valuation Date December 31, 2022 Measurement Date June 30, 2024 Experience Study 2022, published July 24, 2023 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. Actuarial valuations of an on-going plan involve estimates of the value of projected benefits 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 methods and assumptions shown above are based on the 2022 Experience Study, which reviewed experience for the four-year period ended December 31, 2022. 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: 94 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) Long-Term Expected Rate of Return * Asset Class Target Allocation 20-Year Annualized Geometric Mean Global Equity 27.50% 7.07% Private Equity 25.50% 8.83% Core Fixed Income 25.00% 4.50% Real Estate 12.25% 5.83% Master Limited Partnerships 0.75% 6.02% Infrastructure 1.50% 6.51% Hedge Fund of Funds - Multistrategy 1.25% 6.27% Hedge Fund Equity - Hedge 0.63% 6.48% Hedge Fund - Macro 5.62% 4.83% Portfolio, net of investment expenses 100.00% Assumed Inflation, mean 2.35% * Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement Fund, revised as of January 25, 2023. 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. 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: 1% Decrease (5.90%) Discount Rate (6.90%) 1% Increase (7.90%) Proportionate share of Net Pension Liability $ 253,817,423 $ 160,902,668 $ 83,082,020 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 95 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) 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, 2025 was $549,697 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 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. OPEB Activity and Balances for the Year Ended June 30, 2025 (RHIA & County Plan) Category RHIA County Plan Total Total OPEB Liability $ - $ 37,345,630 $ 37,345,630 Net OPEB Asset 2,740,002 - 2,740,002 Deferred Outflows Contributions subsequent to the measurement date 565 - 565 Net difference between projected and actual earnings on investments 77,364 - 77,364 Differences between expected and actual experience - 11,158,009 11,158,009 Changes of assumption or other inputs - 2,494,370 2,494,370 Deferred Outflows - Total 77,929 13,652,379 13,730,308 Deferred Inflows Changes in proportionate share 263,278 - 263,278 Differences between expected and actual experience 53,590 8,616,081 8,669,671 Changes of assumption or other inputs 34,658 6,070,458 6,105,116 Deferred Inflows - Total 351,526 14,686,539 15,038,065 OPEB (Income) Expenses (618,400) 1,655,559 1,037,159 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 96 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) 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. Contributions Participating public employers are contractually required to contribute to RHIA at a rate assessed each biennium by OPERS. For fiscal year 2025, the rate is 0% of annual covered payroll for Tier 1/Tier 2 employees and 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 $565 for RHIA during fiscal year 2025. Actuarial methods and assumptions for the RHIA plan mirror those of the PERS retirement system itself and can be found in Note 4C – Participation in Public Employees Retirement System. Healthcare cost trends are not applicable to this plan as the benefits are a fixed dollar amount per month. As presented, on June 30, 2025 (measurement date of June 30, 2024), the County’s proportionate share of the RHIA plan was 0.67837200%. The proportionate share for each employer participating in the Plan was determined by the actuaries based upon each employer’s contribution to the RHIA program during the measurement period. The County’s proportionate share increased 22.02% from 0.55595159% in the prior measurement period. The following presents the County’s proportionate share of the net OPEB liability (asset) for the RHIA calculated using the discount rate of 6.90 percent, as well as what the County’s proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent) or 1-percentage point higher (7.90 percent) than the current rate: 1% Decrease (5.90%) Current Discount Rate (6.90%) 1% Increase (7.90%) Proportionate share of net RHIA OPEB liability (asset)$ (2,536,409) $ (2,740,002) $ (2,915,301) 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 97 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) The County’s contributions made subsequent to the measurement date of the net RHIA OPEB asset but before the end of the County’s reporting period will be recognized as an addition to the net RHIA OPEB asset in the subsequent fiscal 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: Subsequent Fiscal Years Deferred Outflow/ (Inflow) of Resources (prior to post-measurement date contributions) FY 2026 $ (397,954) FY 2027 73,006 FY 2028 41,854 FY 2029 8,932 Total $ (274,162) 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. Deschutes County has not established an irrevocable trust (or equivalent arrangement) to account for the retiree health insurance plan. Instead, the activities of the plan are reported in the County’s Health Benefits fund that is classified as an internal service fund for financial reporting purposes. The retiree health insurance plan does not issue a separate report. 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 $90 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 the most recent valuation, June 30, 2025, there were 1,114 active employees that could be eligible for the plan. As of that date, 48 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. 98 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) Actuarial Assumptions and Other Inputs The Total OPEB liability in the June 30, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Measurement date June 30, 2025 Valuation date June 30, 2025 Report date June 30, 2025 Actuarial cost method Entry age normal Discount rate 4.71% Inflation 2.40% Salary increases 3.40% Mortality Rates Based on Society of Actuaries Mortality Tables Healthcare cost trend rate 7.90% trending down to 4.04% over 50 years. Applies to calendar years. The discount rate used to measure the total OPEB liability is 4.71 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, 2025: Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 99 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) Changes in Total OPEB Liability Category County Plan Balance at 6/30/2024 $ 24,420,008 Changes for the year: Service cost 1,664,945 Interest 1,017,530 Change in assumptions or other inputs 10,405,794 Differences between expected and actual experience 746,257 Benefit payments (317,406) Implicit subsidy credit (591,498) Net changes 12,925,622 Balance at 6/30/2025 $ 37,345,630 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 4.71%, 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 (3.71%) or one percentage point higher (5.71%) than the current rate: 1% Decrease (3.71%) Current Discount Rate (4.71%) 1% Increase (5.71%) Total OPEB Liability on June 30, 2025 $ 40,601,072 $ 37,345,630 $ 34,331,332 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 7.90% and decreased to 4.04% over 50 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 (6.90%) or one percentage point higher (8.90%) than current healthcare cost trend rate: 1% Decrease (6.90%) Current Discount Rate (7.90%) 1% Increase (8.90%) Total OPEB Liability on June 30, 2025 $ 33,030,860 $ 37,345,630 $ 42,451,091 100 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) 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: Subsequent Fiscal Years Deferred Outflow/ (Inflow) of Resources (prior to post-measurement date contributions) FY 2026 $ (1,026,916) FY 2027 (1,026,916) FY 2028 (1,026,916) FY 2029 (1,026,916) FY 2030 (133,557) Remaining 3,207,061 Total $ (1,034,160) Expected Average Remaining Service Lives (EARSL) The effects on the total OPEB County plan 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 the OPEB County plan 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 OPEB County plan (active employees and inactive employees), beginning in the current period. The EARSL for the current period is 8.4 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 $25,888,493 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 $860,706 and $1,191,960, respectively. The amount of closure and postclosure costs to recognize each year is based on engineering estimates of capacity remaining at the landfill. By estimating the capacity remaining at the landfill instead of calculating the capacity used, based on the cubic feet of material added during the year, the County is better able to recognize the benefit of natural compression occurring within the solid waste cells. Through June 30, 2025, $20,108,873 has been recognized as expense and $2,739,715 has been paid, resulting in a Closure/Post-Closure liability of $18,470,436 at June 30, 2025. Based on current estimated costs, an additional $14,880,566 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 101 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) 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 costs 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, 2025. 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. Due to the project’s power requirements, a new substation, as part of the Stevens Road project, is being built with projected completion by October 2026. G. Tax Abatement As of June 30, 2025, four property tax abatement programs are administered as authorized by Oregon Revised Statutes: Property for Low-income Rental 307.517, 307.537, 307.541 Enterprise Zone Businesses 285C.175 Construction in Process in an Enterprise Zone 285C.170, 307.330 Solar Projects 2015 laws c. 571 (Note 3 following ORS 307.175) 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 102 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) 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. 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. Commercial Buildings Under Construction (307.330) The purpose of Commercial Buildings under Construction is to encourage business investment in plant and equipment by delaying property taxes until a facility can generate cash revenue. Manufacturing firms do not commonly experience immediate cash flow. Certain commercial and industrial buildings are exempt from property taxation while they are under construction. A new structure or an addition is exempt from property taxation if meeting the following criteria on the January 1 assessment date: The property is under construction, including additions to an existing structure. ■No part of the new structure or improvement has been or is in service for any Commercial use or occupancy. ■The property is being built for the purpose of earning income. ■The property is not to be occupied for at least one year after construction began in the case of any non-manufacturing facility. The property is not centrally assessed by the Department of Revenue. The exemption cannot be claimed for more than two consecutive years. Machinery and equipment at the building site also qualifies if it will be installed as real property in the structure. The property is listed on the county property tax assessment roll, but the assessment is canceled if proof that the property meets the above requirements is furnished to the assessor by April 1 of each assessment year. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 103 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) Tax Abatement For the fiscal year ended June 30, 2025, the County’s property tax revenues, including service districts, were abated by $1,034,639 under the following programs: Tax Abatement Program Deschutes County Countywide Law Enforcement County District Rual Law Enforcement County District Extension and 4-H 9-1-1 County Service District Taxes Abated Fiscal Year Ended June 30, 2025 Property for Low-income Rental $ 177,012 $ 173,078 $ 8,500 $ 3,116 $ 50,105 $ 411,811 Enterprise Zone Businesses 204,835 200,285 3,520 3,599 57,977 470,216 Construction in Process in an Enterprise Zone 53,648 52,455 - 945 15,186 122,234 Solar Projects 8,702 8,509 10,552 152 2,463 30,378 Total property tax abated $ 444,197 $ 434,327 $ 22,572 $ 7,812 $ 125,731 $ 1,034,639 For the fiscal year ended June 30, 2025, the County’s property tax revenues were not impacted by tax abatement programs administered by other governments. 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 General Fund Accounts for the financial operations of the County which are not accounted for in any other fund. Principal sources of revenues are property taxes and revenues from the State of Oregon and Federal government. Expenditures are primarily for general government activities including assessment, taxation, district attorney, county clerk, economic development, general county projects, community justice - juvenile, and code abatement. Sheriff’s Office Revenues from Sheriff’s services and payments from Countywide and Rural Law Enforcement Districts, pursuant to intergovernmental agreements, used for public safety, including the operation of the adult jail. Countywide Law Enforcement County District (District #1) Property taxes used to fund Sheriff’s Office countywide public safety activities, including the operation of the adult jail. Rural Law Enforcement County District (District #2) Property taxes used to fund Sheriff’s Office public safety in rural areas. Road State gas tax appointment and Federal payments for building and maintaining public roads and highways. Road CIP Resources from inter-fund transfers for Road’s Capital Improvement Plan. Health Services Fees for services, Federal and State grants for community wide health care, mental health services and counseling. Campus Improvement Resources from inter-fund transfers for campus improvements, debt proceeds, and grant funds. 104 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) Major Funds – Proprietary – Enterprise Solid Waste Fees and charges for services for the operation, maintenance, closure and postclosure monitoring of the County’s sanitary landfill and transfer and recycle stations. Fair and Expo Center/RV Park Fees and and charges for services for the operation and maintenance of the County’s Fair & Expo Center, RV Park, and annual County Fair. Nonmajor Funds – Proprietary – Internal Service Fund Internal Service Fund Interfund charges for services provided for administration, board of commissioners, facilities, finance, human resources, information technology, legal, health benefits including medical and dental insurance, and risk including general liability, property, vehicle, workers’ compensation and unemployment insurance. Nonmajor Funds - Governmental - Special Revenue Funds Justice Court Fines, fees and General Fund transfers for operating a justice court. Park Acquisition and Development Apportionment from the State of Oregon from recreational vehicle fees and 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 marketing of recreational facilities, promotion of tourism and County services. Video Lottery State’s video lottery apportionment for grants promoting economic development. 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. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 105 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) Countywide Transportation SDC Fees from developers and builders for upgrades and expansion of county road infrastructure. Dog Control Licenses, fees and donations for animal control. Adult Parole and Probation Charges for services and State Department of Corrections grant for County justice program. Statewide Transportation Improvement State grants for public transit services. 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. Coordinated Houseless Response Office Revenue from State for coordinated homeless response systems. American Rescue Plan Act (ARPA) Federal funds to be appropriated by the Board of County Commissioners in support of COVID-19 recovery. Deschutes County 9-1-1 Service District Property taxes, charges for services and grants for operations of countywide emergency call center. Extension and 4-H Service District Property taxes for Oregon State University’s Extension Service programs. Deschutes County Road Agency U.S Forest Service Secure Rural School funds for road construction. Nonmajor Funds - Governmental - Debt Service Fund 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. I. Adoption of New Standards GASB 101 – Compensated Absences During the fiscal year ended June 30, 2025, the County implemented GASB Statement No. 101, Compensated Absences. GASB 101 requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used by not year paid in cash or settled through noncash means. As a result of implementing GASB 101, the County increased beginning balances for compensated leave as of July 1, 2024. The beginning balance of compensated leave was increased by $2,142,089 for governmental activities and increased by $8,065 for business-type activities on the Statement of Net Position. On the Proprietary Funds Statements of Revenues, Expenses, and Changes of Net Position, the beginning balance of compensated leave was increased by $8,065 for business-type activities and increased $18,804 for governmental activities. 106 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Notes to Financial Statements Note 4 – Other Information (Continued) J. Restatements of Beginning Balances During FY 2025, changes to or within the financial reporting entity resulted in restatements of beginning net position and fund net position, as follows: As Previously Reported 6/30/2024 Net Position Change in accounting principle Change within the Financial Reporting Entity As Restated 6/30/2024 Net Position Government-Wide Governmental Activities $ 227,662,284 $ (2,142,089) $ - $ 225,520,195 Business-Type Activities 44,190,557 (8,065) - 44,182,492 Total Primary Government $ 271,852,841 $ (2,150,154) $ - $ 269,702,687 Proprietary Funds Business-Type Activities Solid Waste $ 22,397,785 $ (3,578) $ - $ 22,394,207 Fair and Expo Center 18,676,126 - (18,676,126) - RV Park 3,116,646 - (3,116,646) - Fair and Expo Center/RV Park - (4,487) 21,792,772 21,788,285 Governmental Activities Internal Service Fund (2,961,045) (18,804) 2,579,324 (400,525) Total Proprietary Funds $ 41,229,512 $ (26,869) $ 2,579,324 $ 43,781,967 As Previously Reported 6/30/2024 Fund Balance Change in accounting principle Change within the Financial Reporting Entity As Restated 6/30/2024 Fund Balance Governmental Funds Governmental Activities General Fund $ 37,885,862 $ - $ (2,579,324) $ 35,306,538 American Rescue Plan Act 166,574 - (166,574) - Other Governmental Funds 52,574,556 - 166,574 52,741,130 Total Governmental Funds $ 90,626,992 $ - $ (2,579,324) $ 88,047,668 This reclassification has been made in accordance with GASB Statement No. 100, Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62, which requires entities to disclose and describe the nature of significant changes in accounting principle and changes within the financial reporting entity. During FY 2025, the American Rescue Plan Act fund changed from a major special revenue fund to a non-major special revenue fund. In order to simplify the County’s fund reporting structure for FY 2025, the County consolidated funds during the legal budget adoption process. Changes and consolidations that occurred in the governmental funds consisted of: ■The Fair and Expo Center/RV Park fund is used to account for operations of the County’s Fair and Expo Center, RV Park, and annual county fair all located in Redmond, Oregon. ■All activities of the sub-funds of the general fund, excluding vehicle maintenance and replacement, were adopted within the general fund as one legally budgeted fund. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 107 Deschutes County, Oregon FINANCIAL SECTION Notes to Financial Statements Note 4 – Other Information (Continued) ■Operations for vehicle maintenance and replacement were moved from the general fund to the internal service fund. ■The Park Acquisition and Development fund was consolidated into the Park Acquisition and Development Fees fund. ■Transient Room Tax – 1% fund was consolidated into the Transient Room Tax fund. ■CDD Groundwater Partnership fund and Newberry Neighborhood fund were consolidated into Community Development. Changes and consolidations that occurred in the proprietary funds consisted of: ■Fair & Expo fund, RV Park fund, and RV Park Reserve fund were consolidated into Fair & Expo/RV Park fund. ■Ten internal service funds were consolidated into one internal service fund. The vehicle maintenance and replacement operations, previously reported with the general fund, were also budgeted in the internal service fund. K. Subsequent Events Lease Agreement On September 23, 2025, the County entered into a 60-month lease extension which commenced on October 1, 2025. The lease is between the County (Lessor) and the Oregon State Police (OSP) (Lessee), and is for the use of buildings at 20355 Pole Sholes Drive in Bend, Oregon. The initial asset (lease receivable) and deferred inflows of resources (unavailable revenue) is $3,608,448. OSP is required to make monthly fixed payments of $55,466. Additionally, there are monthly lease payments subject to escalation and deescalation per actual costs accounted for on an annual basis. The first year of these additional lease payments are $8,916 per month which are reasonably certain. The lease has an implicit interest rate of 2.899%. OSP has no extension options for this lease. Oregon PERS Incentive Fund On July 1, 2025, Deschutes County applied for a 25% matching fund from the OPERS Employer Incentive Fund. This application was part of the second phase of the initiative to establish new PERS side accounts, aimed at improving the funded status of the County’s pension obligations. The County’s application was approved and on October 7, 2025, the County paid $5 million to PERS using funds from the PERS Reserve Fund. 108 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 109 Required Supplementary Information 110 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Schedule of Proportionate Share of the Net Pension Liability Oregon Public Employees Retirement System Last Ten Fiscal Years* Fiscal Year 2016 2017 2018 2019 Proportion of the net pension liability (asset) 0.64% 0.62% 0.62% 0.63% Proportionate share of the net pension liability (asset) $ 36,983,685 $ 93,391,575 $ 83,905,406 $ 95,837,777 Covered payroll $ 57,047,593 $ 59,420,146 $ 62,715,717 $ 67,091,346 Proportionate share of the net pension liability (asset) as a percentage of covered payroll 64.83% 157.17% 133.79% 142.85% Plan fiduciary net position as a percentage of the total pension liability 91.88% 80.53% 83.12% 82.07% * The amounts presented for each fiscal year were determined as of June 30th of the previous year. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 111 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Fiscal Year 2020 2021 2022 2023 2024 2025 0.66% 0.64% 0.67% 0.73% 0.76% 0.72% $ 114,720,172 $ 139,927,482 $ 79,782,076 $ 111,836,403 $ 142,844,432 $ 160,902,668 $ 72,086,900 $ 77,809,516 $ 85,677,368 $ 89,691,054 $ 100,826,363 $ 110,854,539 159.15% 179.83% 93.12% 124.69% 141.67% 145.15% 80.23% 75.79.% 87.57% 84.55% 81.68% 79.29% 112 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Schedule of Net Pension Liability Employer Contributions Oregon Public Employees Retirement System Last Ten Fiscal Years* Fiscal Year 2016 2017 2018 2019 Contractually required contributions $ 5,785,558 $ 5,971,466 $ 8,534,158 $ 9,182,373 Contributions in relation to the contractually required contribution $ 5,785,558 $ 5,971,466 $ 8,534,158 $ 9,182,373 County’s covered payroll $ 59,420,146 $ 62,715,717 $ 67,091,346 $ 72,086,900 Contributions as a percentage of covered payroll 9.74% 9.52% 12.72% 12.74% * The amounts presented for each fiscal year ware determined as of June 30th of the previous year. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 113 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Fiscal Year 2020 2021 2022 2023 2024 2025 $ 14,075,061 $ 13,817,681 $ 14,841,836 $ 16,551,130 $ 19,393,790 $ 20,523,543 $ 14,075,061 $ 13,817,681 $ 14,841,836 $ 16,551,130 $ 19,393,790 $ 20,523,543 $ 77,809,516 $ 85,677,368 $ 89,691,054 $ 100,826,363 $ 110,854,539 $ 113,363,389 18.09% 16.13% 16.55% 16.42% 17.49% 18.10% 114 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Schedule of Changes in the County’s Total OPEB Liability Deschutes County Plan Last Eight Fiscal Years* 2018 2019 2020 2021 Service cost $ 1,756,755 $ 1,339,312 $ 1,386,188 $ 2,350,138 Interest 1,152,108 1,184,266 849,681 549,528 Changes of assumptions and other inputs - (11,017,853) - 6,445,394 Benefit payments and implicit subsidy credit (1,428,996) (1,079,974) (1,050,615) (1,092,103) Net change in OPEB liability 1,479,867 (9,574,249) 1,185,254 8,252,957 Total OPEB liability - beginning 32,896,294 34,376,161 24,801,912 25,987,166 Total OPEB liability - ending $ 34,376,161 $ 24,801,912 $ 25,987,166 $ 34,240,123 Covered-employee payroll $ 65,409,667 $ 69,941,231 $ 72,389,174 $ 85,677,368 Total OPEB liability as a percentage of payroll 52.6% 35.5% 35.9% 40.0% *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. There are no assests accumulated in the OPEB plan that meets the criteria of GASB codification P22.101 to pay related benefits for the Pension/OPEB plan. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 115 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Fiscal Year 2022 2023 2024 2025 $ 2,432,393 $ 2,517,527 $ 1,642,188 $ 1,664,945 726,383 824,089 930,952 1,017,530 - (15,401,078) (70,966) 11,152,051 (1,222,595) (1,083,168) (1,115,840) (908,904) 1,936,181 (13,142,630) 1,386,334 12,925,622 34,240,123 36,176,304 23,033,674 24,420,008 $ 36,176,304 $ 23,033,674 $ 24,420,008 $ 37,345,630 $ 89,691,054 $ 100,826,363 $ 110,854,539 $ 113,363,389 40.3% 22.8% 22.0% 32.9% 116 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Schedule of the Proportionate Share of the Net OPEB Liability (Asset) Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Nine Fiscal Years* Fiscal Year 2017 2018 2019 2020 Proportion of the net OPEB liability (asset) 0.62% 0.61% 0.63% 0.66% Proportionate share of the net OPEB liability (asset) $ 167,543 $ (252,752) $ (707,109) $ (1,270,129) Covered payroll $ 59,447,651 $ 62,728,445 $ 67,106,755 $ 72,086,900 Proportionate share of the net OPEB liability (asset) as a percentage of covered payroll 0.28% -0.40% -1.05% -1.76% Plan fiduciary net position as a percentage of the total OPEB liability 94.15% 108.88% 123.99% 144.36% *Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year was determined as of June 30 of the previous year. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 117 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Fiscal Year 2021 2022 2023 2024 2025 0.59% 0.53% 0.47% 0.56% 0.68% $ (1,204,828) $ (1,834,569) $ (1,656,597) $ (2,035,705) $ (2,740,002) $ 77,809,516 $ 85,677,368 $ 89,691,054 $ 100,826,363 $ 110,854,539 -1.55% -2.14% -1.85% -2.02% -2.47% 150.07% 183.86% 194.66% 201.60% 220.60% 118 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Schedule of Net OPEB Liability (Asset) Employer Contributions Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Nine Fiscal Years* 2017 2018 2019 2020 Contractually required contribution $ 301,513 $ 304,046 $ 325,768 $ 42,226 Contributions in relation to the contractually required contribution $ 301,513 $ 304,046 $ 325,768 $ 42,226 County’s covered payroll $ 62,728,445 $ 67,106,755 $ 72,086,900 $ 77,809,516 Contributions as a percentage of covered payroll 0.48% 0.45% 0.45% 0.05% *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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 119 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Fiscal Year 2021 2022 2023 2024 2025 $ 14,294 $ 11,491 $ 10,956 $ 2,891 $ 565 $ 14,294 $ 11,491 $ 10,956 $ 2,891 $ 565 $ 85,677,368 $ 89,691,054 $ 100,826,363 $ 110,854,539 $ 113,363,389 0.02% 0.01% 0.01% 0.00% 0.00% 120 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. General Fund Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Taxes - property $ 41,193,000 $ 41,193,000 $ 41,724,259 $ 531,259 Intergovernmental 5,157,150 5,598,680 5,599,812 1,132 Charges for services 1,831,979 1,852,087 2,248,849 396,762 Investment earnings 1,099,687 1,099,687 2,116,756 1,017,069 Payments on contracts of sale 1,133,722 1,133,722 1,115,342 (18,380) Rentals 785,804 785,804 825,246 39,442 Other - - 628,349 628,349 Fines, forfeitures and penalties 95,000 272,481 328,235 55,754 Licenses and permits 39,500 39,500 48,210 8,710 Contributions and donations 500 500 16,041 15,541 Loan repayments 4,484 4,484 856 (3,628) Transfers in 13,108,387 17,526,912 16,991,264 (535,648) Total revenues 64,449,213 69,506,857 71,643,219 2,136,362 Expenditures Current: General Government | Assessor 6,709,361 6,709,361 5,883,206 826,155 General Government | Clerk and Elections 2,719,443 2,719,443 2,407,705 311,738 General Government | Code Abatement 490,400 387,996 - 387,996 General Government | Economic Development 347,044 369,104 - 369,104 General Government | Finance Tax Office 1,041,642 1,065,042 1,024,622 40,420 General Government | General County Projects 2,520,955 2,488,955 2,052,901 436,054 General Government | Project Development and Debt Reserve 3,797,851 3,835,496 968,317 2,867,179 General Government | Property Management 584,094 596,494 576,462 20,032 General Government | Property Value Appeals Board 93,993 96,193 91,105 5,088 General Government | Non-Departmental 3,462,419 7,367,108 4,031,529 3,335,579 Health and Welfare | Veterans’ Services 1,002,808 1,068,340 985,945 82,395 Public Safety | District Attorney 13,090,813 13,369,290 12,488,561 880,729 Public Safety | Community Justice - Juvenile 9,381,846 9,381,846 8,396,298 985,548 Public Safety | Medical Examiner 466,854 466,854 396,143 70,711 Not allocated to organizational units: Contingency 14,070,811 15,870,393 - 15,870,393 Transfers out 21,742,538 21,942,874 21,057,982 884,892 Total expenditures 81,522,872 87,734,789 60,360,776 27,374,013 Net change in fund balances (17,073,659) (18,227,932) 11,282,443 29,510,375 Fund balances, budget basis - beginning of year 34,522,268 35,777,186 35,777,179 (7) Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 121 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Fund balances, budget basis - end of year $ 17,448,609 $ 17,549,254 47,059,622 $ 29,510,368 Lease receivable 426,165 Unavailable revenue - land auction sales 804,862 Notes and contracts receivable recognized under GAAP (658,649) Unavailable revenue - contracts of sale (100,000) Unavailable revenue - lease revenue (399,512) Unavailable revenue - services provided (1,282) Unrealized gain (loss) on investments 134,075 Fund balances, GAAP basis - end of year $ 47,265,281 122 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Sheriff’s Office Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 631,893 $ 914,893 $ 1,058,607 $ 143,714 Contributions and donations 81,115 81,115 65,594 (15,521) Fines, forfeitures and penalties 192,100 192,100 181,011 (11,089) Intergovernmental 60,636,466 61,480,980 56,155,852 (5,325,128) Investment earnings 45,000 45,000 68,548 23,548 Licenses and permits 415,000 415,000 422,049 7,049 Other 82,000 82,000 168,625 86,625 Transfers in 3,751,787 3,751,787 3,751,787 - Total revenues 65,835,361 66,962,875 61,872,073 (5,090,802) Expenditures Current: Public safety 65,576,861 66,610,275 61,555,058 5,055,217 Not allocated to organizational units: Transfers out 258,500 352,600 317,015 35,585 Total expenditures 65,835,361 66,962,875 61,872,073 5,090,802 Net change in fund balances - - - - Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year $ - $ - - $ - Unrealized gain (loss) on investments 707,176 Revenue recognized on GAAP basis, not budgetary basis (654,580) Unavailable revenue - services provided (52,596) Fund balances, GAAP basis - end of year $ - Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 123 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Countywide Law Enforcement County District Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Investment earnings $ 400,000 $ 400,000 $ 745,622 $ 345,622 Taxes - property 40,366,974 40,366,974 40,255,400 (111,574) Total revenues 40,766,974 40,766,974 41,001,022 234,048 Expenditures Current: Public safety 40,551,448 40,551,448 36,432,849 4,118,599 Not allocated to organizational units: Contingency 10,932,473 11,662,513 - 11,662,513 Total expenditures 51,483,921 52,213,961 36,432,849 15,781,112 Net change in fund balances (10,716,947) (11,446,987) 4,568,173 16,015,160 Fund balances, budget basis - beginning of year 10,716,947 11,446,987 11,446,987 - Fund balances, budget basis - end of year $ - $ - 16,015,160 $ 16,015,160 Unrealized gain (loss) on investments (455,908) Inventory 496,976 Expenditure recognized on GAAP basis, not budgetary basis 463,181 Fund balances, GAAP basis - end of year $ 16,519,409 124 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Rural Law Enforcement County District Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Investment earnings $ 150,000 $ 150,000 $ 296,571 $ 146,571 Taxes - property 16,078,353 16,078,353 16,093,414 15,061 Total revenues 16,228,353 16,228,353 16,389,985 161,632 Expenditures Current: Public safety 15,624,705 15,624,705 13,893,886 1,730,819 Not allocated to organizational units: Contingency 2,266,676 4,723,523 - 4,723,523 Total expenditures 17,891,381 20,348,228 13,893,886 6,454,342 Net change in fund balances (1,663,028) (4,119,875) 2,496,099 6,615,974 Fund balances, budget basis - beginning of year 1,663,028 4,119,875 4,119,874 (1) Fund balances, budget basis - end of year $ - $ - 6,615,973 $ 6,615,973 Unrealized gain (loss) on investments (188,397) Inventory 205,364 Expenditure recognized on GAAP basis, not budgetary basis 191,399 Fund balances, GAAP basis - end of year $ 6,824,339 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 125 Deschutes County, Oregon FINANCIAL SECTION Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Road Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 1,912,351 $ 2,017,736 $ 2,728,270 $ 710,534 Fines, forfeitures and penalties 2,000 2,000 12,873 10,873 Intergovernmental 25,401,283 25,401,283 25,492,630 91,347 Investment earnings 358,000 358,000 568,190 210,190 Loan repayments 5,000 5,000 1,270 (3,730) Rentals 1,272 1,272 1,298 26 Transfers in 2,089,362 2,089,362 - (2,089,362) Total revenues 29,769,268 29,874,653 28,804,531 (1,070,122) Expenditures Current: County roads 23,862,868 23,968,253 21,897,723 2,070,530 Not allocated to organizational units: Contingency 6,532,491 8,041,838 - 8,041,838 Transfers out 10,720,695 10,720,695 8,631,333 2,089,362 Total expenditures 41,116,054 42,730,786 30,529,056 12,201,730 Net change in fund balances (11,346,786) (12,856,133) (1,724,525) 11,131,608 Fund balances, budget basis - beginning of year 11,346,786 12,856,133 12,856,133 - Fund balances, budget basis - end of year $ - $ - 11,131,608 $ 11,131,608 Unrealized gain (loss) on investments 38,747 Inventory 2,639,742 Unavailable revenue - services provided (8,222) Fund balances, GAAP basis - end of year $ 13,801,875 126 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Required Supplementary Information The notes to the required supplementary information are an integral part of this schedule. Health Services Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 3,870,930 $ 3,520,853 $ 3,556,746 $ 35,893 Contributions and donations 407,889 933,099 700,290 (232,809) Intergovernmental 68,808,033 69,697,207 74,988,890 5,291,683 Investment earnings 893,190 893,190 1,747,083 853,893 Rentals 6,500 6,500 6,734 234 Transfers in 14,229,303 12,699,450 7,502,688 (5,196,762) Total revenues 88,215,845 87,750,299 88,502,431 752,132 Expenditures Current: Health and welfare 83,194,980 84,148,302 76,486,003 7,662,299 Not allocated to organizational units: Contingency 6,447,282 6,985,489 - 6,985,489 Transfers out 8,445,104 6,888,249 1,622,815 5,265,434 Total expenditures 98,087,366 98,022,040 78,108,818 19,913,222 Net change in fund balances (9,871,521) (10,271,741) 10,393,613 20,665,354 Fund balances, budget basis - beginning of year 31,240,605 39,293,952 39,289,636 (4,316) Fund balances, budget basis - end of year $ 21,369,084 $ 29,022,211 49,683,249 $ 20,661,038 Receivables not recognized on budgetary basis 209,291 Unrealized gain (loss) on investments 128,572 Unavailable revenue - services provided (6,543,823) Fund balances, GAAP basis - end of year $ 43,477,289 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 127 Deschutes County, Oregon FINANCIAL SECTION Notes to Required Supplementary Information Notes to Required Supplementary Information Note 1 – Adjustments from Budgetary Basis of Accounting to GAAP 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 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. 128 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 Other Supplementary Information Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 129 Individual Funds Schedules – Major Governmental Funds – Capital Project Funds 130 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Campus Improvement Schedule of Revenues, Expenditures And Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Variance with Final Budget Original Final Actual Amounts Revenues Charges for services $ - $ - $ 26,223 $ 26,223 Intergovernmental 15,000,000 15,000,000 12,490,351 (2,509,649) Investment earnings 488,000 488,000 1,386,191 898,191 Transfers in 5,692,145 5,903,390 5,538,699 (364,691) Total revenues 21,180,145 21,391,390 19,441,464 (1,949,926) Expenditures Current: General government 36,011,066 40,282,550 17,481,619 22,800,931 Total expenditures 36,011,066 40,282,550 17,481,619 22,800,931 Net change in fund balances (14,830,921) (18,891,160) 1,959,845 20,851,005 Fund balances, budget basis - beginning of year 16,511,527 22,269,421 22,269,421 - Fund balances, budget basis - end of year $ 1,680,606 $ 3,378,261 24,229,266 $ 20,851,005 Unrealized gain (loss) on investments 79,085 Fund balances, GAAP basis - end of year $ 24,308,351 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 131 Deschutes County, Oregon FINANCIAL SECTION Road Capital Improvement Plan Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Variance with Final Budget Original Final Actual Amounts Revenues Intergovernmental $ 881,339 $ 881,339 $ 890,115 $ 8,776 Investment earnings 476,000 476,000 608,922 132,922 Transfers in 10,631,333 10,631,333 9,015,761 (1,615,572) Total revenues 11,988,672 11,988,672 10,514,798 (1,473,874) Expenditures Current: County roads 16,323,504 16,323,504 8,402,847 7,920,657 Not allocated to organizational units: Contingency 11,199,218 11,340,452 - 11,340,452 Total expenditures 27,522,722 27,663,956 8,402,847 19,261,109 Net change in fund balances (15,534,050) (15,675,284) 2,111,951 17,787,235 Fund balances, budget basis - beginning of year 15,534,050 15,675,284 15,675,284 - Fund balances, budget basis - end of year $ - $ - 17,787,235 $ 17,787,235 Unrealized gain (loss) on investments 50,646 Fund balances, GAAP basis - end of year $ 17,837,881 132 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 Individual Funds Schedules – Major Proprietary Funds – Enterprise Funds Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 133 Deschutes County, Oregon FINANCIAL SECTION Solid Waste Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Variance with Final Budget Original Final Actual Amounts Revenues Charges for services $ 19,695,001 $ 19,695,001 $ 20,259,241 $ 564,240 Intergovernmental - - 13,455 13,455 Investment earnings 561,000 561,000 900,395 339,395 Other 72,000 72,000 22,184 (49,816) Transfers in 4,550,000 4,550,000 4,550,000 - Total revenues 24,878,001 24,878,001 25,745,275 867,274 Expenditures Current: County services 20,679,329 20,679,329 14,387,241 6,292,088 Not allocated to organizational units: Contingency 14,261,925 15,469,342 - 15,469,342 Debt service 2,305,600 2,305,600 2,305,056 544 Transfers out 4,564,141 4,564,141 4,564,141 - Total expenditures 41,810,995 43,018,412 21,256,438 21,761,974 Net change in fund balances (16,932,994) (18,140,411) 4,488,837 22,629,248 Fund balances, budget basis - beginning of year 19,271,273 20,484,405 21,437,212 952,807 Fund balances, budget basis - end of year $ 2,338,279 $ 2,343,994 25,926,049 $ 23,582,055 Unrealized gain (loss) on investments 65,972 Capital assets (net of accumulated depreciation and amortization) 45,346,805 Deferred charge on refunding 125,220 Deferred outflows of resources - OPEB RHIA 1,913 Deferred outflows of resources - OPEB 335,043 Deferred outflows of resources - pension 1,641,872 Accrued interest (74,180) Accrued compensated leave (445,294) Lease payable (11,714) Other postemployment benefits - RHIA 67,242 Other postemployment benefits (916,499) Net pension liability (3,948,712) Bonds (net of unamortized premiums/ discounts) (23,202,752) Accrued landfill closure and postclosure costs (18,470,436) Deferred inflows of resources - OPEB RHIA (8,627) Deferred inflows of resources - OPEB (360,422) Deferred inflows of resources - pension (326,302) Net position, GAAP basis - end of year $ 25,745,178 134 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Fair and Expo Center/RV Park Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 5,943,000 $ 5,943,000 $ 6,295,875 $ 352,875 Intergovernmental 53,167 53,167 53,167 - Investment earnings 180,000 180,000 256,959 76,959 Other 2,500 2,500 1,608 (892) Transfers in 2,159,438 2,230,438 2,216,599 (13,839) Total revenues 8,338,105 8,409,105 8,824,208 415,103 Expenditures Current: County services 9,343,627 9,343,627 7,549,814 1,793,813 Not allocated to organizational units: Contingency 349,686 348,808 - 348,808 Debt service 323,300 323,300 322,507 793 Transfers out 329,819 329,819 329,819 - Total expenditures 10,346,432 10,345,554 8,202,140 2,143,414 Net change in fund balances (2,008,327) (1,936,449) 622,068 2,558,517 Fund balances, budget basis - beginning of year 6,075,278 6,054,709 6,054,709 - Fund balances, budget basis - end of year $ 4,066,951 $ 4,118,260 6,676,777 $ 2,558,517 Unrealized gain (loss) on investments 18,432 Prepaid expenses 314,992 Capital assets (net of accumulated depreciation and amortization) 16,937,094 Deferred charge on refunding 2,559 Deferred outflows of resources - OPEB RHIA 846 Deferred outflows of resources - OPEB 148,238 Deferred outflows of resources - pension 726,439 Accrued interest (445) Unearned revenues (9,633) Accrued compensated leave (161,364) Lease payable (1,163) Other postemployment benefits - RHIA 29,751 Other postemployment benefits (405,499) Net pension liability (1,747,081) Bonds (net of unamortized premiums/discounts) (298,510) Deferred inflows of resources - OPEB RHIA (3,817) Deferred inflows of resources - OPEB (159,466) Deferred inflows of resources - pension (144,370) Net position, GAAP basis - end of year $ 21,923,780 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 135 Individual Funds Schedules – Proprietary Funds – Internal Service Fund 136 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Internal Service Fund Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 61,879,768 $ 68,045,570 $ 68,713,939 $ 668,369 Intergovernmental - - 1,034 1,034 Investment earnings 793,000 638,200 888,175 249,975 Other 25,000 25,000 56,165 31,165 Transfers In 708,699 903,807 903,807 - Total revenues 63,406,467 69,612,577 70,563,120 950,543 Expenditures Current: General Government | Administration 2,421,709 2,421,709 2,334,891 86,818 General Government | Board of County Commissioners 927,902 927,902 889,926 37,976 General Government | Facilities 6,193,586 6,193,586 5,654,710 538,876 General Government | Finance 3,163,052 3,163,052 2,831,054 331,998 General Government | Health Benefits 33,701,342 38,819,094 35,110,003 3,709,091 General Government | Human Resources 2,361,534 2,361,534 1,986,533 375,001 General Government | Information Technology 5,138,915 5,138,915 4,500,429 638,486 General Government | Information Technology Reserves 1,014,700 1,014,700 772,764 241,936 General Government | Legal 1,966,604 2,020,804 1,972,475 48,329 General Government | Risk Management 5,599,742 5,631,442 4,358,644 1,272,798 General Government | Vehicle Maintenance and Replacement 998,500 1,043,608 812,477 231,131 Not allocated to organizational units: Contingency 17,058,854 17,102,910 - 17,102,910 Transfers out 114,628 264,628 264,628 - Total expenditures 80,661,068 86,103,884 61,488,534 24,615,350 Net change in fund balances (17,254,601) (16,491,307) 9,074,586 25,565,893 Fund balances, budget basis - beginning of year 17,763,901 17,271,530 17,271,530 - Fund balances, budget basis - end of year $ 509,300 $ 780,223 26,346,116 $ 25,565,893 Unrealized gain (loss) on investments 74,435 Lease receivable 136,001 Capital assets (net of accumulated depreciation and amortization) 1,093,502 Deferred outflows of resources - OPEB RHIA 4,784 Deferred outflows of resources - OPEB 838,051 Deferred outflows of resources - pension 4,106,815 Accrued compensated leave (1,660,272) Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 137 Deschutes County, Oregon FINANCIAL SECTION Accrued claims payable (6,001,429) Lease payable (28,505) Subscription liabilities (126,733) Other postemployment benefits - RHIA 168,195 Other postemployment benefits (2,292,461) Net pension liability (9,877,010) Deferred inflows of resources - leases (129,471) Deferred inflows of resources - OPEB RHIA (21,578) Deferred inflows of resources - OPEB (901,533) Deferred inflows of resources - pension (816,185) Net position, GAAP basis - end of year $ 10,912,722 138 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 Combining and Individual Funds Statements and Schedules – Nonmajor Governmental Funds Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 139 Deschutes County, Oregon FINANCIAL SECTION Nonmajor Governmental Funds Combining Balance Sheet June 30, 2025 Special Revenue Funds Debt Service Fund Total Nonmajor Governmental Funds ASSETS Cash and cash equivalents $ 10,889,954 $ - $ 10,889,954 Investments, at fair value, plus accrued interest 46,238,407 - 46,238,407 Taxes receivable 1,959,554 - 1,959,554 Accounts receivable 2,526,653 106,088 2,632,741 Lease receivable - 308,719 308,719 Notes and contracts receivable 11,535 - 11,535 Total assets $ 61,626,103 $ 414,807 $ 62,040,910 LIABILITIES Accounts payable and other current liabilities $ 5,950,806 $ - $ 5,950,806 Payroll liabilities 670,628 - 670,628 Due to other funds - 106,361 106,361 Unearned revenues 2,353,051 - 2,353,051 Total liabilities 8,974,485 106,361 9,080,846 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 194,423 - 194,423 Unavailable revenue - services provided 689,211 - 689,211 Unavailable revenue - leases - 298,863 298,863 Total deferred inflows of resources 883,634 298,863 1,182,497 FUND BALANCES Restricted 45,751,680 - 45,751,680 Committed 6,016,304 9,583 6,025,887 Total fund balances 51,767,984 9,583 51,777,567 Total liabilities, deferred inflows of resources and fund balances $ 61,626,103 $ 414,807 $ 62,040,910 140 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2025 Special Revenue Funds Debt Service Fund Total Nonmajor Governmental Funds REVENUES Taxes - property $ 12,380,251 $ - $ 12,380,251 Taxes - other 12,738,931 - 12,738,931 Licenses and permits 1,725,442 - 1,725,442 Fines, forfeitures and penalties 626,361 - 626,361 Investment earnings (losses) 3,322,943 6,071 3,329,014 Rents - 1,169,310 1,169,310 Charges for services 11,336,688 997,995 12,334,683 Contributions and donations 5,407 - 5,407 Other 1,210 - 1,210 Intergovernmental 28,404,039 173,602 28,577,641 Total revenues 70,541,272 2,346,978 72,888,250 EXPENDITURES Current: General government 21,310,221 - 21,310,221 Public safety 19,244,916 - 19,244,916 County roads 9,688,552 - 9,688,552 Debt service: Principal payments 459,619 3,548,350 4,007,969 Interest 102,239 1,784,972 1,887,211 Trustee fees - 901 901 Capital outlay 4,442,372 - 4,442,372 Total expenditures 55,247,919 5,334,223 60,582,142 Excess (deficiency) of revenues over expenditures 15,293,353 (2,987,245) 12,306,108 OTHER FINANCING SOURCES (USES) Issuance of long-term debt - leases 367,841 - 367,841 Issuance of long-term debt - subscriptions 45,360 - 45,360 Transfers in 2,022,183 2,960,677 4,982,860 Transfers out (18,665,732) - (18,665,732) Total other financing sources (uses) (16,230,348) 2,960,677 (13,269,671) Net change in fund balances (936,995) (26,568) (963,563) Fund balances - beginning of year, as previously reported 52,538,405 36,151 52,574,556 Changes within the financial reporting entity 166,574 - 166,574 Fund balances - beginning of year, as restated 52,704,979 36,151 52,741,130 Fund balances - end of year $ 51,767,984 $ 9,583 $ 51,777,567 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 141 Combining and Individual Funds Statements and Schedules – Nonmajor Governmental Funds – Special Revenue Funds 142 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2025 Justice Court Park Acquisition and Development County School Special Transportation Taylor Grazing ASSETS Cash and cash equivalents $ 5,633 $ 238,696 $ 80 $ 1,273,123 $ 4,169 Investments, at fair value, plus accrued interest 20,524 1,013,585 338 5,406,141 17,704 Taxes receivable - - - - - Accounts receivable - 76,248 - 1,341,377 - Notes and contracts receivable - - - - - Total assets $ 26,157 $ 1,328,529 $ 418 $ 8,020,641 $ 21,873 LIABILITIES Accounts payable and other current liabilities $ 9,209 $ 221 $ - $ 4,820,081 $ - Payroll liabilities 16,883 - - - - Unearned revenues - - - - - Total liabilities 26,092 221 - 4,820,081 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - - - - Unavailable revenue - services provided - - - 27,814 - Total deferred inflows of resources - - - 27,814 - FUND BALANCES Restricted 65 1,328,308 418 3,172,746 21,873 Committed - - - - - Unassigned - - - - - Total fund balances 65 1,328,308 418 3,172,746 21,873 Total liabilities, deferred inflow of resources and fund balances $ 26,157 $ 1,328,529 $ 418 $ 8,020,641 $ 21,873 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 143 Deschutes County, Oregon FINANCIAL SECTION Transient Room Tax Video Lottery Foreclosed Land Sales Victims’ Assistance Law Library County Clerk Records $ 335,944 $ 166,256 $ 23,998 $ 70,600 $ 25,066 $ 54,034 1,426,539 705,981 101,908 299,791 106,438 229,445 1,741,574 - - - - - - 330,265 - 128,019 - - - - - - - - $ 3,504,057 $ 1,202,502 $ 125,906 $ 498,410 $ 131,504 $ 283,479 $ 249,986 $ 158,050 $ 42 $ 60,330 $ - $ - 7,066 - - 19,933 - - 12,379 - - 20,000 - - 269,431 158,050 42 100,263 - - - - - - - - 11,477 - - 128,019 - - 11,477 - - 128,019 - - 3,223,149 1,044,452 125,864 270,128 131,504 283,479 - - - - - - - - - - - - 3,223,149 1,044,452 125,864 270,128 131,504 283,479 $ 3,504,057 $ 1,202,502 $ 125,906 $ 498,410 $ 131,504 $ 283,479 144 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet (continued) June 30, 2025 Court Facilities Deschutes County Communication System Reserve Community Development GIS Dedicated Natural Resource Protection ASSETS Cash and cash equivalents $ 1,228 $ 171,813 $ 2,436,478 $ 49,226 $ 457,228 Investments, at fair value, plus accrued interest 5,216 729,580 10,345,312 209,034 1,941,552 Taxes receivable - - - - - Accounts receivable 2,023 - - 2,494 154,882 Notes and contracts receivable - - - - - Total assets $ 8,467 $ 901,393 $ 12,781,790 $ 260,754 $ 2,553,662 LIABILITIES Accounts payable and other current liabilities $ - $ - $ 62,112 $ - $ 45,569 Payroll liabilities - - 207,354 7,979 11,806 Unearned revenues - - 57,125 - 622,392 Total liabilities - - 326,591 7,979 679,767 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - - - - Unavailable revenue - services provided - - - - 30,557 Total deferred inflows of resources - - - - 30,557 FUND BALANCES Restricted 8,467 - 12,455,199 252,775 1,843,338 Committed - 901,393 - - - Unassigned - - - - - Total fund balances 8,467 901,393 12,455,199 252,775 1,843,338 Total liabilities, deferred inflow of resources and fund balances $ 8,467 $ 901,393 $ 12,781,790 $ 260,754 $ 2,553,662 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 145 Deschutes County, Oregon FINANCIAL SECTION Surveyor Public Land Corner Preservation Countywide Transportation SDC Improvement Fee Dog Control Adult Parole and Probation $ 54,423 $ 202,624 $ 585,065 $ 28,800 $ 470,641 231,099 860,417 2,484,397 122,295 1,998,507 - - - - - 2,674 - - 1,654 - - - 11,535 - - $ 288,196 $ 1,063,041 $ 3,080,997 $ 152,749 $ 2,469,148 $ - $ - $ - $ 41,671 $ 42,172 - - - 1,886 143,236 108,649 - - - 133,957 108,649 - - 43,557 319,365 - - - - - - - 11,535 - - - - 11,535 - - 179,547 1,063,041 3,069,462 - 2,149,783 - - - 109,192 - - - - - - 179,547 1,063,041 3,069,462 109,192 2,149,783 $ 288,196 $ 1,063,041 $ 3,080,997 $ 152,749 $ 2,469,148 146 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet (continued) June 30, 2025 American Rescue Plan Act PERS Reserve Coordinated Houseless Response Office Deschutes County 9-1-1 Service District Extension and 4-H Service District Total Nonmajor Special Revenue Funds ASSETS Cash and cash equivalents $ 185,586 $ 953,655 $ 117,300 $ 2,885,003 $ 93,285 $ 10,889,954 Investments, at fair value, plus accrued interest 788,064 4,049,563 498,097 12,250,757 396,123 46,238,407 Taxes receivable - - - 205,212 12,768 1,959,554 Accounts receivable - - - 487,017 - 2,526,653 Notes and contracts receivable - - - - - 11,535 Total assets $ 973,650 $ 5,003,218 $ 615,397 $ 15,827,989 $ 502,176 $ 61,626,103 LIABILITIES Accounts payable and other current liabilities $ 133,770 $ - $ - $ 191,880 $ 135,713 $ 5,950,806 Payroll liabilities - - - 254,485 - 670,628 Unearned revenues 837,379 - 550,970 10,200 - 2,353,051 Total liabilities 971,149 - 550,970 456,565 135,713 8,974,485 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - - 183,033 11,390 194,423 Unavailable revenue - services provided - - - 479,809 - 689,211 Total deferred inflows of resources - - - 662,842 11,390 883,634 FUND BALANCES Restricted - - 64,427 14,708,582 355,073 45,751,680 Committed 2,501 5,003,218 - - - 6,016,304 Unassigned - - - - - - Total fund balances 2,501 5,003,218 64,427 14,708,582 355,073 51,767,984 Total liabilities, deferred inflow of resources and fund balances $ 973,650 $ 5,003,218 $ 615,397 $ 15,827,989 $ 502,176 $ 61,626,103 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 147 Deschutes County, Oregon FINANCIAL SECTION Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2025 Justice Court Park Acquisition and Development Park Development Fees County School REVENUES Taxes - property $ - $ - $ - Taxes - other - - - Licenses and permits - 17,150 - Fines, forfeitures and penalties 523,360 - - Investment earnings (losses) 2,657 60,033 1,503 Charges for services - - - Contributions and donations - - - Payments on contracts of sale - - - Other - - - Intergovernmental - 331,530 559,120 Total revenues 526,017 408,713 560,623 EXPENDITURES Current: General government - 22,295 560,764 Public safety 810,652 - - County roads - - - Debt service: Principal 35,178 - - Interest 3,211 - - Capital outlay - - - Total expenditures 849,041 22,295 560,764 Excess (deficiency) of revenues over expenditures (323,024) 386,418 (141) OTHER FINANCING SOURCES (USES) Issuance of leases payable - - - Issuance of subscription liabilities - - - Transfers in 323,301 - - Transfers out - (190,000) - Total other financing sources (uses) 323,301 (190,000) - Net change in fund balances 277 196,418 (141) Fund balances - beginning of year As previously reported (212) 1,035,626 $ 96,264 559 Changes within the financial reporting entity - 96,264 (96,264) - Fund balances - beginning of year, as restated (212) 1,131,890 559 Fund balances - end of year $ 65 $ 1,328,308 $ 418 148 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Special Transportation Taylor Grazing Transient Room Tax Video Lottery $ - $ - $ - $ - - - 12,738,931 - - - - - - - - - 366,675 1,680 145,614 36,004 - - 609 - - - - - - - - - - - - - 5,692,807 8,831 - 1,335,758 6,059,482 10,511 12,885,154 1,371,762 - - 5,862,938 983,401 - - - - 8,731,912 - - - - - - - - - - - - - - - 8,731,912 - 5,862,938 983,401 (2,672,430) 10,511 7,022,216 388,361 - - - - - - - - - - - - - (30,000) (8,439,250) (500,000) - (30,000) (8,439,250) (500,000) (2,672,430) (19,489) (1,417,034) (111,639) 5,845,176 41,362 4,446,840 1,156,091 - - 193,343 - 5,845,176 41,362 4,640,183 1,156,091 $ 3,172,746 $ 21,873 $ 3,223,149 $ 1,044,452 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 149 Deschutes County, Oregon FINANCIAL SECTION Nonmajor Special Revenue Funds (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2025 Transient Room Tax-1% Foreclosed Land Sales Victims’ Assistance Law Library REVENUES Taxes - property $ - $ - $ - Taxes - other - - - Licenses and permits - - - Fines, forfeitures and penalties - - - Investment earnings (losses) 7,193 15,719 7,262 Charges for services 800 74,052 - Contributions and donations - - - Payments on contracts of sale - - - Other - - - Intergovernmental - 454,469 177,272 Total revenues 7,993 544,240 184,534 EXPENDITURES Current: General government 28,457 - 187,148 Public safety - 1,161,319 - County roads - - - Debt service: Principal - - - Interest - - - Capital outlay - - - Total expenditures 28,457 1,161,319 187,148 Excess (deficiency) of revenues over expenditures (20,464) (617,079) (2,614) OTHER FINANCING SOURCES (USES) Issuance of leases payable - - - Issuance of subscription liabilities - - - Transfers in - 713,887 - Transfers out - - - Total other financing sources (uses) - 713,887 - Net change in fund balances (20,464) 96,808 (2,614) Fund balances - beginning of year As previously reported $ 193,343 146,328 173,320 134,118 Changes within the financial reporting entity (193,343) - - - Fund balances - beginning of year, as restated 146,328 173,320 134,118 Fund balances - end of year $ 125,864 $ 270,128 $ 131,504 150 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon County Clerk Records Court Facilities Deschutes County Communication System Reserve Community Development $ - $ - $ - $ - - - - - - - - - - 76,386 - 24,755 14,112 49 21,232 648,143 72,954 - - 9,801,911 - - - - - - - - - - - - - - 500,000 43,675 87,066 76,435 521,232 10,518,484 115,429 - - 9,653,429 - 68,500 - - - - - - - - - 49,704 - - - 2,705 - - - - 115,429 68,500 - 9,705,838 (28,363) 7,935 521,232 812,646 - - - - - - - - - - - 121,876 - - - - - - - 121,876 (28,363) 7,935 521,232 934,522 311,842 532 380,161 11,309,073 - - - 211,604 311,842 532 380,161 11,520,677 $ 283,479 $ 8,467 $ 901,393 $ 12,455,199 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 151 Deschutes County, Oregon FINANCIAL SECTION Nonmajor Special Revenue Funds (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2025 CDD Groundwater Partnership Newberry Neighborhood GIS Dedicated Natural Resource Protection REVENUES Taxes - property $ - $ - Taxes - other - - Licenses and permits - - Fines, forfeitures and penalties - - Investment earnings (losses) 16,717 120,857 Charges for services 206,073 83,960 Contributions and donations - - Payments on contracts of sale - - Other - - Intergovernmental 8,612 1,165,479 Total revenues 231,402 1,370,296 EXPENDITURES Current: General government 326,228 1,040,016 Public safety - - County roads - - Debt service: Principal - - Interest - - Capital outlay - - Total expenditures 326,228 1,040,016 Excess (deficiency) of revenues over expenditures (94,826) 330,280 OTHER FINANCING SOURCES (USES) Issuance of leases payable - - Issuance of subscription liabilities - - Transfers in - 63,750 Transfers out - (7,560) Total other financing sources (uses) - 56,190 Net change in fund balances (94,826) 386,470 Fund balances - beginning of year As previously reported $ 23,958 $ 187,646 347,601 1,456,868 Changes within the financial reporting entity (23,958) (187,646) - - Fund balances - beginning of year, as restated 347,601 1,456,868 Fund balances - end of year $ 252,775 $ 1,843,338 152 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Federal Forest Title III Surveyor Public Land Corner Preservation Countywide Transportation SDC Imp $ - $ - $ - $ - - - - - - 221,276 - 1,245,050 - - - - 3,290 18,344 69,866 143,346 - 37,708 297,179 - - - - - - - - - - - - - - - - - 3,290 277,328 367,045 1,388,396 13,161 287,947 - - - - - - - - 510,867 - - - - - - - - - - - - - 13,161 287,947 510,867 - (9,871) (10,619) (143,822) 1,388,396 - - - - - - - - - - - - - - - (384,428) - - - (384,428) (9,871) (10,619) (143,822) 1,003,968 9,871 190,166 1,206,863 2,065,494 - - - - 9,871 190,166 1,206,863 2,065,494 $ - $ 179,547 $ 1,063,041 $ 3,069,462 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 153 Deschutes County, Oregon FINANCIAL SECTION Nonmajor Special Revenue Funds (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2025 Dog Control Adult Parole & Probation American Rescue Plan Act PERS Reserve REVENUES Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits 241,966 - - - Fines, forfeitures and penalties 1,860 - - - Investment earnings (losses) 7,875 164,430 318,263 254,694 Charges for services - 104,189 - - Contributions and donations 5,407 - - - Payments on contracts of sale - - - - Other - - - - Intergovernmental - 6,269,782 9,539,196 - Total revenues 257,108 6,538,401 9,857,459 254,694 EXPENDITURES Current: General government 359,008 - 983,443 849 Public safety - 7,304,911 - - County roads - - - - Debt service: Principal - 4,866 - - Interest - 534 - - Capital outlay - - - - Total expenditures 359,008 7,310,311 983,443 849 Excess (deficiency) of revenues over expenditures (101,900) (771,910) 8,874,016 253,845 OTHER FINANCING SOURCES (USES) Issuance of leases payable - - - - Issuance of subscription liabilities - - - - Transfers in 96,000 703,369 - - Transfers out - (76,405) (9,038,089) - Total other financing sources (uses) 96,000 626,964 (9,038,089) - Net change in fund balances (5,900) (144,946) (164,073) 253,845 Fund balances - beginning of year As previously reported 115,092 2,294,729 - 4,749,373 Changes within the financial reporting entity - - 166,574 - Fund balances - beginning of year, as restated 115,092 2,294,729 166,574 4,749,373 Fund balances - end of year $ 109,192 $ 2,149,783 $ 2,501 $ 5,003,218 154 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Coordinated Houseless Response Office Deschutes County 9-1-1 Service District Extension and 4-H Service District Deschutes County Road Agency Total Nonmajor Special Revenue Funds $ - $ 11,656,595 $ 723,656 $ - $ 12,380,251 - - - - 12,738,931 - - - - 1,725,442 - - - - 626,361 36,744 813,206 27,435 - 3,322,943 - 657,253 - - 11,336,688 - - - - 5,407 - 222 14 - 236 - 974 - - 974 155,783 1,715,952 - 445,773 28,404,039 192,527 14,844,202 751,105 445,773 70,541,272 155,784 - 729,924 - 21,310,221 - 9,899,534 - - 19,244,916 - - - 445,773 9,688,552 - 321,752 48,119 - 459,619 - 83,633 12,156 - 102,239 - 4,442,372 - - 4,442,372 155,784 14,747,291 790,199 445,773 55,247,919 36,743 96,911 (39,094) - 15,293,353 - 367,841 - - 367,841 - 45,360 - - 45,360 - - - - 2,022,183 - - - - (18,665,732) - 413,201 - - (16,230,348) 36,743 510,112 (39,094) - (936,995) 27,684 14,198,470 394,167 - 52,538,405 - - - - 166,574 27,684 14,198,470 394,167 - 52,704,979 $ 64,427 $ 14,708,582 $ 355,073 $ - $ 51,767,984 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 155 Deschutes County, Oregon FINANCIAL SECTION Justice Court Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Fines, forfeitures and penalties $ 504,200 $ 504,200 $ 523,360 $ 19,160 Investment earnings 2,000 2,000 2,380 380 Transfers in 380,521 380,521 323,301 (57,220) Total revenues 886,721 886,721 849,041 (37,680) Expenditures Current: Public safety 819,797 863,097 849,041 14,056 Not allocated to organizational units: Contingency 66,924 23,624 - 23,624 Total expenditures 886,721 886,721 849,041 37,680 Net change in fund balances - - - - Fund balances, budget basis - beginning of year - - - - Fund balances, budget basis - end of year $ - $ - - $ - Unrealized gain (loss) on investments 65 Fund balances, GAAP basis - end of year $ 65 156 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 350,000 $ 350,000 $ 331,530 $ (18,470) Investment earnings 30,000 30,000 43,705 13,705 Licenses and permits 5,000 5,000 17,150 12,150 Total revenues 385,000 385,000 392,385 7,385 Expenditures Current: General government 585,229 586,958 22,295 564,663 Not allocated to organizational units: Contingency 886,847 753,042 - 753,042 Transfers out 190,000 190,000 190,000 - Total expenditures 1,662,076 1,530,000 212,295 1,317,705 Net change in fund balances (1,277,076) (1,145,000) 180,090 1,325,090 Fund balances, budget basis - beginning of year 1,277,076 1,145,000 1,145,000 - Fund balances, budget basis - end of year $ - $ - 1,325,090 $ 1,325,090 Unrealized gain (loss) on investments 3,218 Fund balances, GAAP basis - end of year $ 1,328,308 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 157 Deschutes County, Oregon FINANCIAL SECTION County School Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 693,000 $ 693,000 $ 559,120 $ (133,880) Investment earnings 1,000 1,000 1,495 495 Total revenues 694,000 694,000 560,615 (133,385) Expenditures Current: General government 694,000 694,566 560,764 133,802 Total expenditures 694,000 694,566 560,764 133,802 Net change in fund balances - (566) (149) 417 Fund balances, budget basis - beginning of year - 566 566 - Fund balances, budget basis - end of year $ - $ - 417 $ 417 Unrealized gain (loss) on investments 1 Fund balances, GAAP basis - end of year $ 418 158 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 5,584,593 $ 5,584,593 $ 5,720,621 $ 136,028 Investment earnings 279,000 279,000 263,180 (15,820) Total revenues 5,863,593 5,863,593 5,983,801 120,208 Expenditures Current: County roads 14,447,482 11,795,100 8,731,912 3,063,188 Total expenditures 14,447,482 11,795,100 8,731,912 3,063,188 Net change in fund balances (8,583,889) (5,931,507) (2,748,111) 3,183,396 Fund balances, budget basis - beginning of year 8,583,889 5,931,507 5,931,507 - Fund balances, budget basis - end of year $ - $ - 3,183,396 $ 3,183,396 Unrealized gain (loss) on investments 17,164 Unavailable revenue - services provided (27,814) Fund balances, GAAP basis - end of year $ 3,172,746 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 159 Deschutes County, Oregon FINANCIAL SECTION Taylor Grazing Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 5,000 $ 5,000 $ 8,831 $ 3,831 Investment earnings 1,000 1,000 1,111 111 Total revenues 6,000 6,000 9,942 3,942 Expenditures Current: General government 6,294 6,294 - 6,294 Not allocated to organizational units: Transfers out 11,500 41,581 30,000 11,581 Total expenditures 17,794 47,875 30,000 17,875 Net change in fund balances (11,794) (41,875) (20,058) 21,817 Fund balances, budget basis - beginning of year 11,794 41,875 41,875 - Fund balances, budget basis - end of year $ - $ - 21,817 $ 21,817 Unrealized gain (loss) on investments 56 Fund balances, GAAP basis - end of year $ 21,873 160 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Investment earnings $ 68,000 $ 68,000 $ 99,249 $ 31,249 Charges for services - - 609 609 Taxes - other 12,100,000 12,332,800 12,538,518 205,718 Total revenues 12,168,000 12,400,800 12,638,376 237,576 Expenditures Current: General government 5,736,054 5,897,854 5,862,938 34,916 Not allocated to organizational units: Transfers out 8,431,946 8,502,946 8,439,250 63,696 Total expenditures 14,168,000 14,400,800 14,302,188 98,612 Net change in fund balances (2,000,000) (2,000,000) (1,663,812) 336,188 Fund balances, budget basis - beginning of year 2,000,000 3,163,809 3,163,812 3 Fund balances, budget basis - end of year $ - $ 1,163,809 1,500,000 $ 336,191 Unavailable revenue - services provided (11,477) Unrealized gain (loss) on investments 4,529 Accrued taxes 1,730,097 Fund balances, GAAP basis - end of year $ 3,223,149 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 161 Deschutes County, Oregon FINANCIAL SECTION Video Lottery Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 1,370,000 $ 1,370,000 $ 1,335,758 $ (34,242) Investment earnings 22,000 22,000 21,636 (364) Total revenues 1,392,000 1,392,000 1,357,394 (34,606) Expenditures Current: General government 877,601 993,451 983,401 10,050 Not allocated to organizational units: Contingency 1,122,808 1,066,767 - 1,066,767 Transfers out 500,000 500,000 500,000 - Total expenditures 2,500,409 2,560,218 1,483,401 1,076,817 Net change in fund balances (1,108,409) (1,168,218) (126,007) 1,042,211 Fund balances, budget basis - beginning of year 1,108,409 1,168,218 1,168,218 - Fund balances, budget basis - end of year $ - $ - 1,042,211 $ 1,042,211 Unrealized gain (loss) on investments 2,241 Fund balances, GAAP basis - end of year $ 1,044,452 162 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ - $ - $ 800 $ 800 Investment earnings 5,000 5,000 5,054 54 Total revenues 5,000 5,000 5,854 854 Expenditures Current: General government 131,143 131,143 28,457 102,686 Not allocated to organizational units: Contingency 9,046 22,000 - 22,000 Total expenditures 140,189 153,143 28,457 124,686 Net change in fund balances (135,189) (148,143) (22,603) 125,540 Fund balances, budget basis - beginning of year 135,189 148,143 148,143 - Fund balances, budget basis - end of year $ - $ - 125,540 $ 125,540 Unrealized gain (loss) on investments 324 Fund balances, GAAP basis - end of year $ 125,864 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 163 Deschutes County, Oregon FINANCIAL SECTION Victims’ Assistance Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Contributions and donations $ - $ - $ 74,052 $ 74,052 Intergovernmental 541,770 541,770 338,362 (203,408) Investment earnings 2,000 2,000 11,686 9,686 Transfers in 713,887 713,887 713,887 - Total revenues 1,257,657 1,257,657 1,137,987 (119,670) Expenditures Current: Public safety 1,499,693 1,499,693 1,161,319 338,374 Not allocated to organizational units: Contingency 119,975 178,490 - 178,490 Total expenditures 1,619,668 1,678,183 1,161,319 516,864 Net change in fund balances (362,011) (420,526) (23,332) 397,194 Fund balances, budget basis - beginning of year 362,011 420,526 420,527 1 Fund balances, budget basis - end of year $ - $ - 397,195 $ 397,195 Unavailable revenue - services provided (128,019) Unrealized gain (loss) on investments 952 Fund balances, GAAP basis - end of year $ 270,128 164 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Law Library Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 177,272 $ 177,272 $ 177,272 $ - Investment earnings 5,000 5,000 5,261 261 Total revenues 182,272 182,272 182,533 261 Expenditures Current: General government 304,620 304,620 187,148 117,472 Not allocated to organizational units: Contingency 13,519 13,434 - 13,434 Total expenditures 318,139 318,054 187,148 130,906 Net change in fund balances (135,867) (135,782) (4,615) 131,167 Fund balances, budget basis - beginning of year 135,867 135,782 135,781 (1) Fund balances, budget basis - end of year $ - $ - 131,166 $ 131,166 Unrealized gain (loss) on investments 338 Fund balances, GAAP basis - end of year $ 131,504 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 165 Deschutes County, Oregon FINANCIAL SECTION County Clerk Records Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 70,450 $ 70,450 $ 72,954 $ 2,504 Investment earnings 8,190 8,190 9,516 1,326 Total revenues 78,640 78,640 82,470 3,830 Expenditures Current: General government 133,170 133,170 115,429 17,741 Not allocated to organizational units: Contingency 254,792 261,181 - 261,181 Total expenditures 387,962 394,351 115,429 278,922 Net change in fund balances (309,322) (315,711) (32,959) 282,752 Fund balances, budget basis - beginning of year 309,322 315,711 315,710 (1) Fund balances, budget basis - end of year $ - $ - 282,751 $ 282,751 Unrealized gain (loss) on investments 728 Fund balances, GAAP basis - end of year $ 283,479 166 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Court Facilities Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Fines, forfeitures and penalties $ 68,500 $ 68,500 $ 76,386 $ 7,886 Investment earnings (losses) - - 25 25 Total revenues 68,500 68,500 76,411 7,911 Expenditures Current: Public safety 68,500 69,039 68,500 539 Total expenditures 68,500 69,039 68,500 539 Net change in fund balances - (539) 7,911 8,450 Fund balances, budget basis - beginning of year - 539 539 - Fund balances, budget basis - end of year $ - $ - 8,450 $ 8,450 Unrealized gain (loss) on investments 17 Fund balances, GAAP basis - end of year $ 8,467 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 167 Deschutes County, Oregon FINANCIAL SECTION Deschutes County Communication System Reserve Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ - $ - $ 500,000 $ 500,000 Investment earnings 9,000 9,000 14,202 5,202 Total revenues 9,000 9,000 514,202 505,202 Expenditures Current: Public safety - - - - Total expenditures - - - - Net change in fund balances 9,000 9,000 514,202 505,202 Fund balances, budget basis - beginning of year 285,000 384,875 384,875 - Fund balances, budget basis - end of year $ 294,000 $ 393,875 899,077 $ 505,202 Unrealized gain (loss) on investments 2,316 Fund balances, GAAP basis - end of year $ 901,393 168 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Community Development Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 9,318,782 $ 9,318,782 $ 9,801,911 $ 483,129 Fines, forfeitures and penalties 5,000 5,000 24,755 19,755 Intergovernmental 60,956 60,956 43,675 (17,281) Investment earnings 362,000 362,000 468,369 106,369 Transfers in 461,542 2,525,572 121,876 (2,403,696) Total revenues 10,208,280 12,272,310 10,460,586 (1,811,724) Expenditures Current: General government 10,060,295 10,227,066 9,705,838 521,228 Not allocated to organizational units: Contingency 1,040,985 305,691 - 305,691 Transfers out 261,542 2,325,572 - 2,325,572 Total expenditures 11,362,822 12,858,329 9,705,838 3,152,491 Net change in fund balances (1,154,542) (586,019) 754,748 1,340,767 Fund balances, budget basis - beginning of year 11,057,000 11,667,607 11,667,604 (3) Fund balances, budget basis - end of year $ 9,902,458 $ 11,081,588 12,422,352 $ 1,340,764 Unrealized gain (loss) on investments 32,847 Fund balances, GAAP basis - end of year $ 12,455,199 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 169 Deschutes County, Oregon FINANCIAL SECTION GIS Dedicated Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 198,000 $ 198,000 $ 206,073 $ 8,073 Intergovernmental 8,000 8,000 8,612 612 Investment earnings 18,000 18,000 11,675 (6,325) Total revenues 224,000 224,000 226,360 2,360 Expenditures Current: General government 383,934 383,934 326,228 57,706 Not allocated to organizational units: Contingency 183,628 192,045 - 192,045 Total expenditures 567,562 575,979 326,228 249,751 Net change in fund balances (343,562) (351,979) (99,868) 252,111 Fund balances, budget basis - beginning of year 343,562 351,979 351,979 - Fund balances, budget basis - end of year $ - $ - 252,111 $ 252,111 Unrealized gain (loss) on investments 664 Fund balances, GAAP basis - end of year $ 252,775 170 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 110,000 $ 110,000 $ 83,960 $ (26,040) Intergovernmental 1,277,940 1,277,940 919,005 (358,935) Investment earnings 59,000 59,000 85,496 26,496 Transfers in 45,250 75,331 63,750 (11,581) Total revenues 1,492,190 1,522,271 1,152,211 (370,060) Expenditures Current: General government 1,746,038 1,746,038 1,040,016 706,022 Not allocated to organizational units: Contingency 1,641,232 1,531,769 - 1,531,769 Transfers out 7,560 7,560 7,560 - Total expenditures 3,394,830 3,285,367 1,047,576 2,237,791 Net change in fund balances (1,902,640) (1,763,096) 104,635 1,867,731 Fund balances, budget basis - beginning of year 1,902,640 1,763,096 1,763,096 - Fund balances, budget basis - end of year $ - $ - 1,867,731 $ 1,867,731 Unavailable revenue - services provided (30,557) Unrealized gain (loss) on investments 6,164 Fund balances, GAAP basis - end of year $ 1,843,338 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 171 Deschutes County, Oregon FINANCIAL SECTION Federal Forest Title III Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 90,000 $ 90,000 $ - $ (90,000) Investment earnings 4,000 4,000 2,489 (1,511) Total revenues 94,000 94,000 2,489 (91,511) Expenditures Current: General government 120,000 120,000 67,919 52,081 Not allocated to organizational units: Contingency 56,123 39,430 - 39,430 Total expenditures 176,123 159,430 67,919 91,511 Net change in fund balances (82,123) (65,430) (65,430) - Fund balances, budget basis - beginning of year 82,123 65,430 65,430 - Fund balances, budget and GAAP basis - end of year $ - $ - $ - $ - 172 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Surveyor Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 39,070 $ 39,070 $ 37,708 $ (1,362) Investment earnings 9,000 9,000 14,678 5,678 Licenses and permits 202,736 202,736 221,276 18,540 Total revenues 250,806 250,806 273,662 22,856 Expenditures Current: General government 292,343 292,343 287,947 4,396 Not allocated to organizational units: Contingency 157,345 151,561 - 151,561 Total expenditures 449,688 443,904 287,947 155,957 Net change in fund balances (198,882) (193,098) (14,285) 178,813 Fund balances, budget basis - beginning of year 198,882 193,098 193,098 - Fund balances, budget basis - end of year $ - $ - 178,813 $ 178,813 Unrealized gain (loss) on investments 734 Fund balances, GAAP basis - end of year $ 179,547 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 173 Deschutes County, Oregon FINANCIAL SECTION Public Land Corner Preservation Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 241,677 $ 241,677 $ 297,177 $ 55,500 Investment earnings 45,000 45,000 52,167 7,167 Total revenues 286,677 286,677 349,344 62,667 Expenditures Current: County roads 411,248 516,633 510,867 5,766 Not allocated to organizational units: Contingency 1,111,003 991,874 - 991,874 Total expenditures 1,522,251 1,508,507 510,867 997,640 Net change in fund balances (1,235,574) (1,221,830) (161,523) 1,060,307 Fund balances, budget basis - beginning of year 1,235,574 1,221,830 1,221,832 2 Fund balances, budget basis - end of year $ - $ - 1,060,309 $ 1,060,309 Unrealized gain (loss) on investments 2,732 Fund balances, GAAP basis - end of year $ 1,063,041 174 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Investment earnings $ 122,000 $ 122,000 $ 109,575 $ (12,425) Licenses and permits 1,504,000 1,504,000 1,223,453 (280,547) Total revenues 1,626,000 1,626,000 1,333,028 (292,972) Expenditures Not allocated to organizational units: Contingency 1,623,077 1,738,974 - 1,738,974 Transfers out 2,000,000 2,000,000 384,428 1,615,572 Total expenditures 3,623,077 3,738,974 384,428 3,354,546 Net change in fund balances (1,997,077) (2,112,974) 948,600 3,061,574 Fund balances, budget basis - beginning of year 1,997,077 2,112,974 2,112,974 - Fund balances, budget basis - end of year $ - $ - 3,061,574 $ 3,061,574 Unavailable revenue - services provided - Unrealized gain (loss) on investments 7,888 Fund balances, GAAP basis - end of year $ 3,069,462 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 175 Deschutes County, Oregon FINANCIAL SECTION Dog Control Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Contributions and donations $ 5,000 $ 5,000 $ 5,407 $ 407 Fines, forfeitures and penalties - - 1,860 1,860 Investment earnings 3,000 3,000 5,504 2,504 Licenses and permits 251,900 251,900 241,966 (9,934) Transfers in 96,000 96,000 96,000 - Total revenues 355,900 355,900 350,737 (5,163) Expenditures Current: General government 405,984 408,784 359,008 49,776 Not allocated to organizational units: Contingency 31,000 64,191 - 64,191 Total expenditures 436,984 472,975 359,008 113,967 Net change in fund balances (81,084) (117,075) (8,271) 108,804 Fund balances, budget basis - beginning of year 81,084 117,075 117,075 - Fund balances, budget basis - end of year $ - $ - 108,804 $ 108,804 Unrealized gain (loss) on investments 388 Fund balances, GAAP basis - end of year $ 109,192 176 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Adult Parole and Probation Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 110,500 $ 110,500 $ 104,189 $ (6,311) Fines, forfeitures and penalties - - - - Intergovernmental 6,140,157 6,140,157 6,269,782 129,625 Investment earnings 73,000 73,000 125,990 52,990 Transfers in 703,369 703,369 703,369 - Total revenues 7,027,026 7,027,026 7,203,330 176,304 Expenditures Current: Public safety 8,371,685 8,371,685 7,310,311 1,061,374 Not allocated to organizational units: Contingency 680,000 506,824 - 506,824 Transfers out 76,405 76,405 76,405 - Total expenditures 9,128,090 8,954,914 7,386,716 1,568,198 Net change in fund balances (2,101,064) (1,927,888) (183,386) 1,744,502 Fund balances, budget basis - beginning of year 2,500,000 2,326,824 2,326,824 - Fund balances, budget basis - end of year $ 398,936 $ 398,936 2,143,438 $ 1,744,502 Unrealized gain (loss) on investments 6,345 Fund balances, GAAP basis - end of year $ 2,149,783 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 177 Deschutes County, Oregon FINANCIAL SECTION American Rescue Plan Act Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 8,510,978 $ 9,543,295 $ 9,539,196 $ (4,099) Investment earnings 134,000 183,392 183,392 - Total revenues 8,644,978 9,726,687 9,722,588 (4,099) Expenditures Current: General government 4,022,833 987,540 983,443 4,097 Not allocated to organizational units: Transfers out 4,622,145 9,038,089 9,038,089 - Total expenditures 8,644,978 10,025,629 10,021,532 4,097 Net change in fund balances - (298,942) (298,944) (2) Fund balances, budget basis - beginning of year - 298,942 298,943 1 Fund balances, budget basis - end of year $ - $ - (1) $ (1) Unrealized gain (loss) on investments 2,502 Fund balances, GAAP basis - end of year $ 2,501 178 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon PERS Reserve Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Investment earnings $ 151,000 $ 151,000 $ 182,939 $ 31,939 Total revenues 151,000 151,000 182,939 31,939 Expenditures Current: General government 1,000 1,000 849 151 Total expenditures 1,000 1,000 849 151 Net change in fund balances 150,000 150,000 182,090 32,090 Fund balances, budget basis - beginning of year 4,815,000 4,808,271 4,808,271 - Fund balances, budget basis - end of year $ 4,965,000 $ 4,958,271 4,990,361 $ 32,090 Unrealized gain (loss) on investments 12,857 Fund balances, GAAP basis - end of year $ 5,003,218 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 179 Deschutes County, Oregon FINANCIAL SECTION Coordinated Houseless Response Office Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 2,000 $ 2,000 $ - $ (2,000) Intergovernmental 730,000 730,000 155,783 (574,217) Investment earnings 20,000 20,000 26,168 6,168 Total revenues 752,000 752,000 181,951 (570,049) Expenditures Current: General government 505,130 505,130 155,784 349,346 Total expenditures 505,130 505,130 155,784 349,346 Net change in fund balances 246,870 246,870 26,167 (220,703) Fund balances, budget basis - beginning of year - 36,679 36,679 - Fund balances, budget basis - end of year $ 246,870 $ 283,549 62,846 $ (220,703) Unrealized gain (loss) on investments 1,581 Fund balances, GAAP basis - end of year $ 64,427 180 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Charges for services $ 618,400 $ 618,400 $ 657,253 $ 38,853 Intergovernmental 2,042,500 2,042,500 2,195,761 153,261 Investment earnings 426,000 426,000 601,312 175,312 Other 1,000 1,000 974 (26) Payments on contracts of sale - - 222 222 Taxes - property 11,646,000 11,646,000 11,656,595 10,595 Transfers in 515,000 515,000 - (515,000) Total revenues 15,248,900 15,248,900 15,112,117 (136,783) Expenditures Current: Public safety 17,254,619 17,254,619 14,334,090 2,920,529 Not allocated to organizational units: Contingency 5,188,631 7,984,725 - 7,984,725 Transfers out 515,000 515,000 - 515,000 Total expenditures 22,958,250 25,754,344 14,334,090 11,420,254 Net change in fund balances (7,709,350) (10,505,444) 778,027 11,283,471 Fund balances, budget basis - beginning of year 13,160,074 14,371,465 14,371,468 3 Fund balances, budget basis - end of year $ 5,450,724 $ 3,866,021 15,149,495 $ 11,283,474 Unvailable revenue - services provided (479,809) Unrealized gain (loss) on investments 38,896 Fund balances, GAAP basis - end of year $ 14,708,582 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 181 Deschutes County, Oregon FINANCIAL SECTION Extension and 4-H County Service District Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Investment earnings $ 14,000 $ 14,000 $ 21,005 $ 7,005 Payments on contracts of sale - - 14 14 Taxes - property 720,000 720,000 723,656 3,656 Total revenues 734,000 734,000 744,675 10,675 Expenditures Current: General government 771,160 771,160 729,924 41,236 Not allocated to organizational units: Contingency 272,124 301,903 - 301,903 Debt service 60,276 60,276 60,275 1 Total expenditures 1,103,560 1,133,339 790,199 343,140 Net change in fund balances (369,560) (399,339) (45,524) 353,815 Fund balances, budget basis - beginning of year 369,560 399,339 399,339 - Fund balances, budget basis - end of year $ - $ - 353,815 $ 353,815 Unrealized gain (loss) on investments 1,258 Fund balances, GAAP basis - end of year $ 355,073 182 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION 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, 2025 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final Revenues Intergovernmental $ 672,162 $ 672,162 $ 445,773 $ (226,389) Total revenues 672,162 672,162 445,773 (226,389) Expenditures Current: County roads 672,162 672,162 445,773 226,389 Total expenditures 672,162 672,162 445,773 226,389 Net change in fund balances - - - - Fund balances, budget basis - beginning of year - - - - Fund balances, budget and GAAP basis - end of year $ - $ - $ - $ - Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 183 Combining and Individual Funds Statements and Schedules – Nonmajor Governmental Funds – Debt Service Fund 184 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Debt Service Fund - Nonmajor Debt Service Fund Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2025 Budgeted Amounts Variance with Final Budget Original Final Actual Amounts Revenues Charges for services $ 998,200 $ 998,200 $ 997,995 $ (205) Intergovernmental 173,600 173,600 173,600 - Rentals 1,210,700 1,202,200 1,201,949 (251) Transfers in 2,955,500 2,964,000 2,960,679 (3,321) Total revenues 5,338,000 5,338,000 5,334,223 (3,777) Expenditures Current: General government 3,500 3,500 901 2,599 Not allocated to organizational units: Debt service 5,334,500 5,334,500 5,333,322 1,178 Total expenditures 5,338,000 5,338,000 5,334,223 3,777 Net change in fund balances - - - - Fund balances, budget basis - beginning of year 537,174 257,174 - (257,174) Fund balances, budget basis - end of year $ 537,174 $ 257,174 - $ (257,174) Unrealized gain (loss) on investments (273) Lease receivable 308,719 Unavailable lease revenue (298,863) Fund balances, GAAP basis - end of year $ 9,583 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 185 Combining and Individual Funds Statements and Schedules – Fiduciary Funds 186 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Fiduciary Funds Combining Statement of Fiduciary Net Position June 30, 2025 Taxes and Fees Miscellaneous Custodial Funds Total Custodial Funds Assets Cash and cash equivalents $ 869,577 $ 902,212 $ 1,771,789 Investments, at fair value; plus accrued interest 3,692,531 3,831,118 7,523,649 Taxes receivable for other governments 7,567,256 - 7,567,256 Accounts receivable 129,762 4,810 134,572 Notes receivable 446,220 - 446,220 Prepaid expenses 8,809 - 8,809 Total assets 12,714,155 4,738,140 17,452,295 Liabilities Accounts payable 54,121 107,531 161,652 Deposits 193,685 4,307,653 4,501,338 Due to other governments 8,374,096 272,013 8,646,109 Unearned revenue - land auction sales 446,220 - 446,220 Unearned revenue - services 123,299 - 123,299 Total liabilities 9,191,421 4,687,197 13,878,618 Net Position Restricted for: Individuals, organizations, and other governments 3,522,734 50,943 3,573,677 Total net position $ 3,522,734 $ 50,943 $ 3,573,677 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 187 Deschutes County, Oregon FINANCIAL SECTION Fiduciary Funds Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended June 30, 2025 Taxes and Fees Miscellaneous Custodial Funds Total Custodial Funds Additions Investment earnings Interest on land sale loans $ 25,422 $ - $ 25,422 Net increase in fair value of investments 398,858 61,985 460,843 Property tax collections for other governments 549,037,623 - 549,037,623 Fines, forfeitures and penalties 766,684 851,618 1,618,302 Collections for services provided to other governments 145,806 - 145,806 Charges for services 3,089,408 - 3,089,408 Other 2,014 - 2,014 Total additions 553,465,815 913,603 554,379,418 Deductions Payment of property taxes to other governments 547,958,424 - 547,958,424 Payment of services to other governments (2) 835,099 835,097 Public safety 4,170,939 - 4,170,939 Total deductions 552,129,361 835,099 552,964,460 Change in fiduciary net position 1,336,454 78,504 1,414,958 Net position - beginning 2,186,280 (27,561) 2,158,719 Net position - ending $ 3,522,734 $ 50,943 $ 3,573,677 188 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 189 Other Financial Schedules 190 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Schedule of Property Tax Transactions - All County Taxes June 30, 2025 Tax Year Beginning Balance and FY 2025 Levy Adjustments Interest (Discount) Turnovers from County Treasurer Taxes Receivable June 30, 2025 FY 2015 & Prior $ 93,071 $ (3,028) $ 23,995 $ 73,025 $ 41,013 FY 2016 (36,285) (2,986) 4,832 9,871 (44,310) FY 2017 19,498 (2,996) 2,804 6,181 13,125 FY 2018 31,387 (3,612) 3,147 7,927 22,995 FY 2019 52,714 (6,482) 9,497 23,879 31,850 FY 2020 87,863 (22,708) 25,279 37,877 52,557 FY 2021 306,662 (26,658) 88,022 289,118 78,908 FY 2022 1,061,149 (44,638) 209,981 884,706 341,786 FY 2023 1,845,016 (65,996) 169,080 946,867 1,001,233 FY 2024 5,536,335 (256,431) 324,523 3,461,381 2,143,046 FY 2025 563,623,778 (353,386) (14,733,196) 542,728,060 5,809,136 TOTALS $ 572,621,188 $ (788,921) $ (13,872,036) 548,468,892 $ 9,491,339 Other Distributions: Interest earned on unsegregated taxes 284,407 Other tax distribution and credits (407,987) TOTAL CASH COLLECTIONS $ 548,345,312 Summary of Taxes Receivable at June 30, 2025: Deschutes County General Fund $ 737,424 Special Revenue Funds 1,186,660 Other Taxing Jurisdictions 7,567,255 $ 9,491,339 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 191 Deschutes County, Oregon FINANCIAL SECTION Schedule of Long-Term Debt Principal Transactions For the Fiscal Year Ended June 30, 2025 Series Date of Issue Final Maturity Date Amount of Original Issue Outstanding June 30, 2024 Bonds Called and Matured Outstanding June 30, 2025 Pension Bonds Series 2002 03/28/2002 06/01/2028 $ 5,429,586 $ 1,850,000 $ - $ 1,850,000 Series 2004 05/27/2004 06/01/2028 7,090,000 2,810,000 700,000 2,110,000 Total Pension Bonds 12,519,586 4,660,000 700,000 3,960,000 Refunding Series 2019 03/12/2019 06/01/2028 6,455,000 3,215,000 750,000 2,465,000 Refunding Series 2021 09/02/2021 12/01/2032 15,325,000 12,610,000 1,320,000 11,290,000 Refunding Series 2023 12/05/2023 06/01/2044 24,095,000 23,820,000 825,000 22,995,000 Series 2022 08/30/2022 06/01/2043 18,220,000 17,670,000 580,000 17,090,000 Total Bonds 64,095,000 57,315,000 3,475,000 53,840,000 Refunding Series 2015 12/08/2015 12/01/2026 3,775,000 510,800 445,900 64,900 Refunding Series 2016 05/25/2016 06/01/2027 6,277,000 1,829,000 601,000 1,228,000 Total Notes 10,052,000 2,339,800 1,046,900 1,292,900 Total Long-Term Debt $ 86,666,586 $ 64,314,800 $ 5,221,900 $ 59,092,900 192 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Schedule of Long-Term Debt Interest Transactions Year Ended June 30, 2025 Series Interest Rates on Outstanding Balances Outstanding June 30, 2024 Coupons Called and Matured Outstanding June 30, 2025 Pension Bonds Series 2002 6.85% $ 360,310 $ 126,725 $ 233,585 Series 2004 6.10% 408,975 171,270 237,705 Total Pension Bonds 769,285 297,995 471,290 Bonds Series 2013 4.50% - - - Refunding Series 2019 5.00% 411,000 160,750 250,250 Refunding Series 2021 1.40% 817,589 168,495 649,094 Refunding Series 2023 5.00% 13,430,500 1,191,000 12,239,500 Series 2022 5.00% 10,106,750 883,500 9,223,250 Total Bonds 24,765,839 2,403,745 22,362,094 Notes from Direct Borrowings Refunding Series 2015 2.49% 8,777 7,167 1,610 Refunding Series 2016 1.68% 61,740 30,727 31,013 Total Notes 70,517 37,894 32,623 Total Long-Term Debt $ 25,605,641 $ 2,739,634 $ 22,866,007 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 193 Deschutes County, Oregon FINANCIAL SECTION Schedule of Future Debt Service Requirements of Pension Obligation Bonds June 30, 2025 Year of Maturity Total Requirements Series 2002 Series 2004 Principal Interest Total Principal Interest Principal Interest 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 $ 3,960,000 $ 471,290 $ 4,431,290 $ 1,850,000 $ 233,585 $ 2,110,000 $ 237,705 194 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings Governmental Activities June 30, 2025 Year of Maturity Total Requirements Series 2019 Ref Series 2021 Series 2023 Principal Interest Total Principal Interest Principal Interest Principal Interest 2026 $ 2,715,414 $ 1,391,031 $ 4,106,445 $ 785,000 $ 123,250 $ 1,060,414 $ 118,031 $ 870,000 $ 1,149,750 2027 2,807,240 1,293,245 4,100,485 820,000 84,000 1,072,240 102,995 915,000 1,106,250 2028 2,899,066 1,191,293 4,090,359 860,000 43,000 1,084,066 87,793 955,000 1,060,500 2029 2,104,834 1,085,147 3,189,981 - - 1,099,834 72,397 1,005,000 1,012,750 2030 2,174,545 1,019,250 3,193,795 - - 1,119,545 56,750 1,055,000 962,500 2031 2,245,313 950,604 3,195,917 - - 1,135,313 40,854 1,110,000 909,750 2032 2,323,965 878,929 3,202,894 - - 1,158,965 24,679 1,165,000 854,250 2033 2,390,792 804,255 3,195,047 - - 1,170,792 8,255 1,220,000 796,000 2034 1,285,000 735,000 2,020,000 - - - - 1,285,000 735,000 2035 1,345,000 670,750 2,015,750 - - - - 1,345,000 670,750 2036 1,410,000 603,500 2,013,500 - - - - 1,410,000 603,500 2037 1,485,000 533,000 2,018,000 - - - - 1,485,000 533,000 2038 1,560,000 458,750 2,018,750 - - - - 1,560,000 458,750 2039 1,120,000 380,750 1,500,750 - - - - 1,120,000 380,750 2040 1,175,000 324,750 1,499,750 - - - - 1,175,000 324,750 2041 1,235,000 266,000 1,501,000 - - - - 1,235,000 266,000 2042 1,295,000 204,250 1,499,250 - - - - 1,295,000 204,250 2043 1,360,000 139,500 1,499,500 - - - - 1,360,000 139,500 2044 1,430,000 71,500 1,501,500 - - - - 1,430,000 71,500 $ 34,361,169 $ 13,001,504 $ 47,362,673 $ 2,465,000 $ 250,250 $ 8,901,169 $ 511,754 $ 22,995,000 $ 12,239,500 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 195 Deschutes County, Oregon FINANCIAL SECTION Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings Business Type Activities June 30, 2025 Year of Maturity Total Requirements Direct Borrowing - 2015 Direct Borrowing - 2016 Refunding Series 2021 Series 2022 Principal Interest Total Principal Interest Principal Interest Principal Interest Principal Interest 2026 $ 1,532,286 $ 908,015 $ 2,440,301 $ 32,700 $ 1,209 $ 610,000 $ 20,630 $ 284,586 $ 31,676 $ 605,000 $ 854,500 2027 1,577,960 862,675 2,440,635 32,200 401 618,000 10,383 287,760 27,641 640,000 824,250 2028 960,934 815,811 1,776,745 - - - - 290,934 23,561 670,000 792,250 2029 1,000,166 778,179 1,778,345 - - - - 295,166 19,429 705,000 758,750 2030 1,040,455 738,730 1,779,185 - - - - 300,455 15,230 740,000 723,500 2031 1,079,687 697,464 1,777,151 - - - - 304,687 10,964 775,000 686,500 2032 1,126,035 654,373 1,780,408 - - - - 311,035 6,623 815,000 647,750 2033 1,169,208 609,216 1,778,424 - - - - 314,208 2,216 855,000 607,000 2034 900,000 564,250 1,464,250 - - - - - - 900,000 564,250 2035 940,000 519,250 1,459,250 - - - - - - 940,000 519,250 2036 990,000 472,250 1,462,250 - - - - - - 990,000 472,250 2037 1,040,000 422,750 1,462,750 - - - - - - 1,040,000 422,750 2038 1,090,000 370,750 1,460,750 - - - - - - 1,090,000 370,750 2039 1,145,000 316,250 1,461,250 - - - - - - 1,145,000 316,250 2040 1,200,000 259,000 1,459,000 - - - - - - 1,200,000 259,000 2041 1,265,000 199,000 1,464,000 - - - - - - 1,265,000 199,000 2042 1,325,000 135,750 1,460,750 - - - - - - 1,325,000 135,750 2043 1,390,000 69,500 1,459,500 - - - - - - 1,390,000 69,500 $ 20,771,731 $ 9,393,213 $ 30,164,944 $ 64,900 $ 1,610 $ 1,228,000 $ 31,013 $ 2,388,831 $ 137,340 $ 17,090,000 $ 9,223,250 196 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 FINANCIAL SECTION Deschutes County, Oregon Schedule of Cash Receipts and Turnovers - Elected Officials June 30, 2025 County Assessor County Clerk County District Attorney Justice of the Peace County Sheriff Total Cash as of June 30, 2024 $ - $ - $ 5,000 $ 18,103 $ 1,535,211 $ 1,558,314 Receipts: Grants and funding 830,680 - 474,500 - 5,090,674 6,395,854 Fines and fees 37,831 1,583,352 28,424 523,360 2,036,578 4,209,545 Other - - 8,332 - 378,117 386,449 Total receipts 868,511 1,583,352 511,256 523,360 7,505,369 10,991,848 Turnovers: County Treasurer (868,511) (1,583,352) (511,256) (515,371) (7,163,606) (10,642,096) Total turnovers (868,511) (1,583,352) (511,256) (515,371) (7,163,606) (10,642,096) Cash as of June 30, 2025 $ - $ - $ 5,000 $ 26,092 $ 1,876,974 $ 1,908,066 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 197 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k STATISTICALSTATISTICALSECTION ANNUAL COMPREHENSIVE FINANCIAL REPORT DESCHUTES COUNTY, OREGON Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 199 DESCHUTES COUNTY, OREGON TABLE OF CONTENTS Statistical Section This part of Deschutes County’s statistical comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County’s overall health. Sources: Unless otherwise noted, the information in these schedules is derived from the published annual comprehensive financial reports for the relevant year. Page Financial Trends 200 These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed overtime. Revenue Capacity 211 These schedules contain information to help the reader assess the County’s most significant local revenue source, the property tax. Debt Capacity 217 These schedules present information to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future. Demographic and Economic Information 225 These schedules offer demographic and economic indicators to help the reader understanding the environment within which the County’s financial activities take place. Operating Information 227 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. 200 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 Governmental activities Net investment in capital assets $ 101,724,105 $ 108,576,334 $ 113,719,602 $ 115,293,413 $ 121,372,936 Restricted 60,999,381 60,223,775 51,604,150 66,660,268 75,890,142 Unrestricted (9,004,273) (10,585,809) (13,117,584) (11,495,168) (14,936,196) Total governmental activities net position $ 153,719,213 $ 158,214,300 $ 152,206,168 $ 170,458,513 $ 182,326,882 Business-type activities Net investment in capital assets $ 33,549,044 $ 35,249,434 $ 37,025,828 $ 35,942,205 $ 38,733,640 Restricted 257,743 - - - - Unrestricted (4,431,920) (3,895,146) (2,045,078) 1,559,167 (1,509,993) Total business-type activities net position $ 29,374,867 $ 31,354,288 $ 34,980,750 $ 37,501,372 $ 37,223,647 Primary government Net investment in capital assets $ 135,273,150 $ 143,825,768 $ 150,745,430 $ 151,235,618 $ 160,106,576 Restricted 61,257,124 60,223,775 51,604,150 66,660,268 75,890,142 Unrestricted (13,436,194) (14,480,955) (15,162,662) (9,936,001) (16,446,189) Total primary government net position $ 183,094,080 $ 189,568,588 $ 187,186,918 $ 207,959,885 $ 219,550,529 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 201 Deschutes County, Oregon STATISTICAL SECTION Fiscal Year 2021 2022 2023 2024 2025 $ 126,591,425 $ 135,284,761 $ 161,842,824 $ 179,244,593 $ 207,238,139 86,559,219 90,450,775 86,626,839 102,213,751 125,412,153 (29,395,513) (28,233,666) (42,654,861) (53,796,060) (46,774,746) $ 183,755,131 $ 197,501,870 $ 205,814,802 $ 227,662,284 $ 285,875,546 $ 37,856,359 $ 35,830,576 $ 23,964,066 $ 37,443,048 $ 38,897,539 - - 13,974,687 17,778,135 18,567,429 3,784,281 7,281,323 6,500,623 (11,030,626) (9,796,010) $ 41,640,640 $ 43,111,899 $ 44,439,376 $ 44,190,557 $ 47,668,958 $ 164,447,785 $ 171,115,338 $ 185,806,890 $ 216,687,641 $ 246,135,678 86,559,219 90,450,775 100,601,526 119,991,886 143,979,582 (25,611,232) (20,952,344) (36,154,238) (64,826,686) (56,570,756) $ 225,395,771 $ 240,613,769 $ 250,254,178 $ 271,852,841 $ 333,544,504 202 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 Expenses Governmental activities: General government $ 35,463,814 $ 30,011,545 $ 36,105,776 $ 32,523,927 $ 50,607,355 Public safety 74,941,547 65,276,283 64,258,765 70,253,604 70,086,827 County roads 18,269,586 17,627,051 18,122,984 17,645,717 17,743,525 Health and welfare 43,850,703 39,370,403 50,068,445 45,086,737 45,728,065 Interest and fiscal charges 2,284,295 2,175,774 2,104,761 2,024,851 1,808,997 Total governmental activities expenses 174,809,945 154,461,056 170,660,730 167,534,837 185,974,769 Business-type activities: Solid waste 9,272,404 10,028,102 10,131,364 9,047,200 12,526,176 Fair and expo center/RV park* - - - - - Fair and expo center 4,290,630 4,173,908 4,504,592 5,085,859 4,759,772 RV park 477,924 407,928 411,993 409,672 420,191 Total business-type activities expenses 14,040,958 14,609,937 15,047,948 14,542,731 17,706,139 Total primary government expenses $ 188,850,903 $ 169,070,993 $ 185,708,679 $ 182,077,568 $ 203,680,908 Program Revenues Governmental activities: Charges for services: General government $ 18,675,554 $ 16,435,374 $ 16,271,509 $ 15,487,329 $ 16,303,016 Public safety 5,620,314 6,765,336 4,653,489 3,870,888 2,981,327 County roads 19,168,851 19,082,452 21,577,005 24,081,955 25,465,962 Health and welfare 2,021,579 1,940,978 2,683,447 2,892,082 3,161,716 Operating grants and contributions 42,990,874 40,087,120 52,587,330 53,767,845 59,658,417 Capital grants and contributions 7,003,178 1,084,073 1,918,307 30,000 145,584 Total governmental program revenues 95,480,350 85,395,333 99,691,086 100,130,099 107,716,021 Business-type activities: Charges for services: Solid waste 8,865,019 9,791,844 11,187,151 11,421,763 13,486,467 Fair and expo center/ RV park* - - - - - Fair and expo center 2,500,139 2,710,373 2,511,127 3,085,338 1,790,111 RV park 408,513 384,279 438,716 476,365 652,568 Operating grants and contributions 53,667 570,037 786,895 107,740 57,496 Capital grants and contributions - - - - - Total business-type program revenues 11,827,338 13,456,534 14,923,889 15,091,206 15,986,642 Total primary government program revenues $ 107,307,688 $ 98,851,866 $ 114,614,975 $ 115,221,305 $ 123,702,663 Net (Expense)/Revenue Governmental activities $ (79,329,594) $ (69,065,723) $ (70,969,644) $ (67,404,738) $ (78,258,747) Business-type activities (2,213,620) (1,153,403) (124,060) 548,475 (2,260,820) Total primary government net expense $ (81,543,214) $ (70,219,127) $ (71,093,704) $ (66,856,263) $ (80,519,567) Years prior to FY 2023 may not foot due to rounding. *Beginning in FY 2025, Fair and expo center and RV park were consolidated into one reporting fund. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 203 Deschutes County, Oregon STATISTICAL SECTION Fiscal Year 2021 2022 2023 2024 2025 $ 49,428,669 $ 48,556,006 $ 66,921,909 $ 34,521,844 $ 57,251,250 85,546,513 86,849,152 107,370,842 107,768,750 85,676,598 25,488,902 22,046,884 10,167,800 35,000,781 35,859,987 62,685,989 55,636,443 66,433,425 76,969,969 77,446,852 1,497,982 838,400 1,296,674 1,547,824 1,867,608 224,648,055 213,926,885 252,190,650 255,809,168 258,102,295 9,911,481 13,075,084 13,762,327 19,875,561 18,175,536 - - - - 8,467,650 3,018,117 4,509,320 5,938,023 6,883,063 - 420,836 368,229 436,441 493,271 - 13,350,434 17,952,633 20,136,791 27,251,895 26,643,186 $ 237,998,489 $ 231,879,518 $ 272,327,441 $ 283,061,063 $ 284,745,481 $ 18,863,342 $ 20,031,444 $ 18,320,916 $ 15,208,367 $ 30,418,435 3,968,606 2,822,080 4,952,871 5,859,723 5,128,619 28,723,520 27,343,594 27,039,616 30,635,504 30,587,732 3,994,244 3,173,349 4,486,491 5,042,923 3,121,080 77,638,551 83,007,298 98,552,785 92,606,334 100,553,549 93,134 - - - 12,490,351 133,281,397 136,377,765 153,352,679 149,352,851 182,299,766 13,486,467 13,991,671 14,099,929 17,380,055 20,281,425 - - - - 6,306,770 1,790,111 3,608,410 4,816,455 5,330,890 - 652,568 584,135 577,063 526,442 - 57,496 53,167 53,167 53,167 66,622 - - - - - 15,986,642 18,237,383 19,546,614 23,290,554 26,654,817 $ 149,268,038 $ 154,615,148 $ 172,899,293 $ 172,643,405 $ 208,954,583 $ (91,366,658) $ (77,549,119) $ (98,837,971) $ (106,456,317) $ (75,802,529) 2,636,207 284,751 (590,177) (3,961,341) 11,631 $ (88,730,451) $ (77,264,368) $ (99,428,148) $ (110,417,658) $ (75,790,898) 204 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, general purpose levy $ 33,533,883 $ 35,363,260 $ 36,746,058 $ 38,353,835 $ 40,987,718 Property taxes, sheriff services levy 29,508,509 31,128,138 33,028,808 35,960,629 38,315,278 Property taxes, bonded debt levy 84,233 - - - - Transient room tax 6,068,098 6,408,477 7,011,471 7,829,489 7,560,467 Investment earnings 1,643,757 1,351,378 1,940,860 5,151,181 4,888,442 Transfers (513,431) (690,447) (631,722) (1,638,051) (1,624,789) Loss on discontinued project - - - - - Total governmental activities 70,325,049 73,560,806 78,095,475 85,657,083 90,127,116 Business-type activities: Taxes Property taxes, bonded debt levy 2,555,831 2,368,281 - - - Investment earnings 94,674 74,094 129,837 334,098 358,306 Special item - - 3,369,910 - - Transfers 513,431 690,447 631,722 1,638,050 1,624,789 Total business-type activities 3,163,935 3,132,822 4,131,469 1,972,148 1,983,094 Total primary government $ 73,488,985 $ 76,693,630 $ 82,226,944 $ 87,629,231 $ 92,110,210 Change in Net Position Governmental activities $ (9,004,545) $ 4,495,083 $ 7,125,831 $ 18,252,345 $ 11,868,368 Business-type activities 950,315 1,979,419 4,007,409 2,520,623 (277,725) Total primary government $ (8,054,229) $ 6,474,504 $ 11,133,240 $ 20,772,968 $ 11,590,643 Years prior to FY 2023 may not foot due to rounding Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 205 Deschutes County, Oregon STATISTICAL SECTION Fiscal Year 2021 2022 2023 2024 2025 $ 42,614,194 $ 44,873,558 $ 47,364,947 $ 51,751,786 $ 54,143,075 39,843,081 41,208,892 44,320,775 53,933,341 56,426,064 - - - - - 11,431,704 13,114,807 12,597,706 12,438,741 12,738,933 648,532 (6,112,054) 4,612,463 11,982,540 14,722,447 (1,742,604) (1,789,344) (1,744,988) (1,802,609) (1,872,639) - - - - - 92,794,907 91,295,859 107,150,903 128,303,799 136,157,880 - - - - - 38,182 (602,836) 172,666 1,909,913 1,602,196 - - - - - 1,742,604 1,789,344 1,744,988 1,802,609 1,872,639 1,780,786 1,186,508 1,917,654 3,712,522 3,474,835 $ 94,575,692 $ 92,482,367 $ 109,068,557 $ 132,016,321 $ 139,632,715 $ 1,428,248 $ 13,746,739 $ 8,312,932 $ 21,847,482 $ 60,355,351 4,416,993 1,471,259 1,327,477 (248,819) 3,486,466 $ 5,845,242 $ 15,217,998 $ 9,640,409 $ 21,598,663 $ 63,841,817 206 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 General Fund Nonspendable $ 498,337 $ 469,020 $ 445,442 $ 144,473 $ 148,609 Committed 3,944,405 7,505,074 10,670,276 13,048,013 7,557,563 Assigned 6,311,144 5,369,619 6,598,027 6,743,043 7,362,270 Unassigned 10,620,333 10,483,020 11,461,766 12,458,530 13,620,704 Total General Fund $ 21,374,220 $ 23,826,733 $ 29,175,511 $ 32,394,059 $ 28,689,146 All Other Governmental Funds Nonspendable $ 2,663,703 $ 2,859,789 $ 1,786,302 $ 2,475,033 $ 2,690,983 Restricted, reported in: Special revenue funds 71,847,628 65,125,286 67,996,477 76,263,618 81,399,756 Capital projects funds - 7,809,685 9,542,598 17,794,245 25,086,097 Debt service funds - - - - - Total Restricted 71,847,628 72,934,971 77,539,075 94,057,863 106,485,853 Committed, reported in: Special revenue funds 11,491,305 13,469,571 14,715,465 16,713,561 2,867,188 Capital projects funds - - - - 4,928,892 Debt service funds 472,561 558,106 661,151 837,063 959,032 Total Committed 11,963,866 14,027,677 15,376,615 17,550,624 8,755,111 Unassigned, reported in: Special revenue funds - - - - (39,033) Capital projects funds - - - - - Debt service funds - - - - - Total Unassigned - - - - (39,033) Total all other governmental funds $ 86,475,197 $ 89,822,437 $ 94,701,992 $ 114,083,519 $ 117,892,914 Years prior to FY 2023 may not foot due to rounding Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 207 Deschutes County, Oregon STATISTICAL SECTION Fiscal Year 2021 2022 2023 2024 2025 $ 35,563 $ 80,692 $ 46,213 $ 47,062 $ 46,213 9,963,834 6,980,581 5,698,988 11,065,027 13,017,246 8,243,592 8,563,836 9,575,220 11,546,677 11,509,476 15,023,889 13,398,279 13,426,082 15,227,096 22,692,346 $ 33,266,878 $ 29,023,388 $ 28,746,503 $ 37,885,862 $ 47,265,281 $ 2,671,413 $ 3,041,475 $ 2,653,108 $ 2,798,174 $ 3,342,082 103,846,578 107,048,554 101,304,951 108,091,056 123,032,510 23,497,961 26,356,205 22,594,529 30,034,095 34,795,237 - - - - - 127,344,538 133,404,759 123,899,480 138,125,151 157,827,747 4,900,652 4,770,913 4,854,127 5,411,200 6,016,304 4,380,450 8,403,325 5,866,734 6,607,522 7,350,995 466,933 384,965 449,066 36,151 9,583 9,748,035 13,559,203 11,169,927 12,054,873 13,376,882 - (695,542) (13,004) (212) - - - - - - - - - - - - (695,542) (13,004) (212) - $ 139,763,986 $ 149,309,895 $ 137,709,511 $ 152,977,986 $ 174,546,711 208 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 Revenues Taxes $ 69,254,662 $ 72,725,317 $ 76,915,410 $ 82,039,791 $ 86,964,729 Licenses and permits 1,513,320 1,804,402 1,658,904 1,846,647 1,827,973 Fines, forfeitures and penalties 1,666,944 1,600,649 1,466,676 1,525,703 1,315,245 Special assessments 85,439 70,655 66,830 60,172 24,635 Interest and rents 3,191,867 3,042,808 3,555,878 6,254,855 6,127,824 Intergovernmental 102,449,003 92,313,282 105,988,087 111,616,358 116,778,213 Charges for services 16,657,205 18,295,208 19,115,410 17,409,307 19,549,186 Other 1,268,489 1,073,927 875,507 1,577,098 2,240,573 Total revenues 196,086,929 190,926,249 209,642,702 222,329,931 234,828,378 Expenditures General government 26,813,546 26,361,777 29,061,175 30,624,676 51,467,588 Public safety 91,353,457 86,897,612 93,072,384 97,971,830 105,095,862 County roads 15,351,922 16,195,155 14,241,574 13,601,142 13,934,215 Health and welfare 36,778,966 38,856,976 46,636,552 41,929,068 44,960,663 Education 610,125 263,106 - - - Debt service Principal 3,015,338 2,895,157 3,013,331 9,963,729 2,619,154 Interest 2,259,334 2,151,095 2,079,976 2,021,171 1,909,000 Trustee fees - 2,500 2,375 106,325 1,600 Debt issuance costs - - - - - Capital outlay 7,675,279 10,376,297 7,506,798 10,105,264 12,913,134 Total expenditures 183,857,968 183,999,674 195,614,166 206,323,204 232,901,216 Excess of revenues over (under) expenditures 12,228,961 6,926,574 14,028,536 16,006,728 1,927,163 Other Financing Sources (Uses) Issuance of long-term debt - leases - - - - - Issuance of long-term debt - subscriptions - - - - - Transfers in 10,564,827 23,284,540 18,339,320 28,268,112 33,312,721 Transfers out (12,403,247) (24,593,177) (19,240,045) (29,876,180) (35,135,401) Debt issuance 1,911,626 - - 7,512,685 - Bond premium/discount - - - - - Payments to escrow agent (1,904,328) - - - - Increase/(decrease) in inventory 98,478 181,815 (155,630) 688,731 - Total other financing sources (uses) (1,732,643) (1,126,822) (1,056,355) 6,593,348 (1,822,681) Net change in fund balances $ 10,496,318 $ 5,799,752 $ 12,972,180 $ 22,600,076 $ 104,482 Debt service as a percentage of noncapital expenditures 3.0% 2.9% 2.7% 2.7% 2.1% Prior year totals may not foot due to rounding. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 209 Deschutes County, Oregon STATISTICAL SECTION Fiscal Year 2021 2022 2023 2024 2025 $ 94,124,509 $ 99,264,276 $ 104,114,587 $ 117,874,095 $ 123,191,182 2,208,566 2,488,528 2,176,998 2,235,960 2,195,701 1,312,788 794,023 806,401 895,908 1,148,480 7,403 9,883 3,924 6,051 - 2,547,298 (3,256,047) 6,316,328 12,970,056 15,497,312 149,475,326 148,713,344 172,492,922 167,436,724 203,578,845 22,925,825 21,902,984 25,944,677 20,992,982 21,384,263 826,662 2,322,915 1,855,725 983,206 2,691,208 273,428,375 272,239,905 313,711,562 323,394,982 369,686,991 41,583,698 43,069,730 53,755,442 37,996,318 37,782,985 112,852,658 126,981,617 142,877,533 146,857,447 149,445,519 14,026,795 17,933,913 19,589,948 25,558,649 25,221,568 53,777,680 53,038,068 63,853,309 67,056,809 76,791,557 - - - - - 3,728,510 3,633,793 3,370,177 4,518,234 4,868,975 1,590,121 1,316,978 1,107,238 1,440,854 2,066,659 1,200 850 1,550 900 901 - - - 165,170 - 17,541,502 19,055,501 42,214,342 40,071,611 38,497,290 245,102,163 265,030,448 326,769,539 323,665,992 334,675,454 28,326,212 7,209,457 (13,057,977) (271,010) 35,011,537 - - 1,258,453 5,732,447 570,228 - - 1,855,136 241,427 457,521 21,904,660 32,384,479 36,264,492 34,373,156 37,197,339 (23,782,068) (34,291,517) (38,197,373) (36,340,955) (39,709,157) - - - 24,095,000 - - - - 2,497,687 - - - - (5,919,918) - - - - - - (1,877,408) (1,907,038) 1,180,708 24,678,844 (1,484,069) $ 26,448,804 $ 5,302,419 $ (11,877,269) $ 24,407,834 $ 33,527,468 2.3% 2.0% 1.6% 2.1% 2.4% 210 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 211 Deschutes County, Oregon STATISTICAL SECTION Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Fiscal Year Ended June 30, Real Property Personal Property Manufactured Homes Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value 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 2024 30,423,785 78,521,799 890,104 890,104 97,682 239,833 2025 31,914,865 80,823,922 920,364 920,364 99,731 291,944 Sources: Deschutes County Assessor’s Department and Deschutes County Tax Office (1) includes tax-exempt property 212 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Public Utilities Exemptions Total Range of Total Direct Tax Rates Paid Assessed Value (1) as a Percentage of Estimated Actual ValueAssessed Value Estimated Actual Value Assessed Value Taxable Assessed Value Estimated Actual Value $ 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 32,415,619 2.7311 - 6.0411 67.932% 600,475 628,510 47,457 23,218,325 36,786,662 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% 852,663 919,209 60,873 32,203,361 80,570,945 2.8525 - 6.6325 40.045% 862,379 917,540 57,882 33,739,457 82,953,770 2.8525 - 6.6325 40.673% Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 213 Deschutes County, Oregon STATISTICAL SECTION Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) Fiscal Year Taxes are Payable 2016 2017 2018 2019 2020 County direct rates Rates levied to all taxable County properties: General $ 1.2783 $ 1.2783 $ 1.2483 $ 1.2183 $ 1.2183 Fairgrounds Bond 0.1273 0.1186 - - - Sheriff (Countywide) 1.0200 1.0200 1.0200 1.0800 1.0800 County Extension/4H CSD 0.0224 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.3618 0.3618 0.3618 911 Local Option 0.2000 0.2000 - - - County districts paid by all properties 2.8098 2.8011 2.6525 2.6825 2.6825 Rates levied to taxable rural County properties: Sheriff (Rural) 1.4000 1.4000 1.4000 1.3400 1.3400 Certain County properties are subject to one of the following rates: Sunriver Library Bond 0.0438 - - - - Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt 0.5500 0.5500 0.5500 0.5500 0.5500 Paid by Sunriver properties only: Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Sunriver Service District Local Opt - - - - - Range of County Direct Rates Paid 2.8098 - 6.1198 2.8011 - 6.1111 2.6525 - 5.9625 2.6825 - 5.9925 2.6825 - 5.9925 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 2.8035 Redmond 4.4101 4.4101 4.4101 4.4101 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 2.6417 La Pine 1.9800 1.9800 1.9800 1.9800 1.9800 City of Bend Bond 2021 - - - - - City of Bend Bond 2011 0.2120 0.1895 0.1789 0.1685 0.1600 City of Bend Local Option - - 0.2000 0.2000 0.2000 City of Redmond Bond 0.0809 0.0710 0.0547 0.0547 - City of Redmond Bond 2022 - - - - - Library district rates 0.5500 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924 - 3.0691 1.0924 - 2.7317 1.0924 - 2.7317 1.0924 - 2.7317 1.0924 - 2.7317 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 School district rates 6.4033 - 8.4012 6.5893 - 8.4320 6.5893 - 8.4320 6.4912 - 8.2372 6.4554 - 8.1593 Road district rates 0.8140 - 3.0000 0.8140 - 3.0000 0.8140 - 3.0000 0.8140 - 3.0000 0.8140 - 3.0000 Other special district rates 0.2895 0.2895 0.2895 0.2895 0.2895 Sources: Deschutes County Assessor’s Office and Deschutes County Finance Department. 214 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Fiscal Year Taxes are Payable 2021 2022 2023 2024 2025 $ 1.2183 $ 1.2183 $ 1.2183 $ 1.2783 $ 1.2783 - - - - - 1.0800 1.0800 1.0500 1.2500 1.2500 0.0224 0.0224 0.0224 0.0224 0.0224 0.3618 0.3618 0.3618 0.3618 0.3618 - - - - - 2.6825 2.6825 2.6525 2.9125 2.9125 1.3400 1.3400 1.3400 1.5500 1.5500 - - - - - 1.0499 1.0499 1.0499 1.0499 1.0499 0.5500 0.6500 0.6500 0.6500 0.6500 3.3100 3.3100 3.3100 3.3100 3.4500 - - 0.4700 0.4700 0.4700 2.6825 - 5.9925 2.6825 - 5.9925 2.6525 - 6.4325 2.9125 - 6.6325 2.9125 - 6.8325 2.8035 2.8035 2.8035 2.8035 2.8035 4.4101 4.4101 4.4101 4.4101 4.4101 2.6417 2.6417 2.6417 2.6417 2.6417 1.9800 1.9800 1.9800 1.9800 1.9800 - - 0.1713 0.1621 0.4712 0.1600 0.1520 0.1292 0.1104 0.1054 0.2000 0.2000 0.2000 0.2000 0.7600 - - - - - - - 0.7232 0.6387 0.6387 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 2.1966 - 3.2277 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 .3000 - 1.5889 6.5337 - 8.1626 5.7044 - 7.2439 5.3871 - 7.2955 5.4063 - 7.2824 5.4851 - 7.1333 0.5882 - 3.0000 0.8140 - 3.0000 0.8140 - 3.0000 0.8140 - 3.2500 .5458 - 3.2500 0.2895 0.2895 0.2895 0.2895 0.2895 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 215 Deschutes County, Oregon STATISTICAL SECTION Principal Property Taxpayers - Current Fiscal and Nine Years Ago 2025 2016 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) $ 180,050,298 1 0.53% $ 85,994,000 2 0.41% Crowdstrike Inc. 127,360,310 2 0.38% - - 0% TDS Baja Broadband LLC 99,745,917 3 0.30% 218,359,000 1 1.04% Cascade Natural Gas Corporation 91,623,646 4 0.27% 54,078,000 4 0.26% Lonza Bend Inc. 89,386,880 5 0.26% - - 0% Deschutes Brewery Inc 64,514,720 6 0.19% 38,414,200 9 0.18% Touchmark at Mount Bachelor Village LLC 58,018,210 7 0.17% 44,466,290 6 0.21% Gas Transmission Northwest Corporation 74,611,996 8 0.22% 68,929,100 3 0.33% PCC Structurals, Inc. 49,099,450 9 0.15% - - 0% Suterra LLC 52,806,620 10 0.16% 47,416,970 7 0.23% Bend Research Inc. - - 0.00% 46,999,420 5 0.22% CVSC LLC - - 0.00% 38,467,390 8 0.18% Centurylink (Formerly Qwest) - - 0.00% 38,262,000 10 0.18% Wal-Mart Stores Inc. - - 0.00% - - 0% Total $ 887,218,047 2.63% $ 681,386,370 3.24% (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. 216 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Property Taxes, Levies and Collections - Last Ten Fiscal Years (dollars expressed in thousands) Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Ended June 30, Total Tax Levy for Fiscal Year (1) Amount Collected Percentage of Levy Collections in Subsequent Years Amount Collected Percentage of Levy 2016 $ 65,737 $ 64,747 98.494% $ 1,001 $ 65,737 100.000% 2017 68,956 67,895 98.461% 1,058 68,951 99.993% 2018 69,929 69,013 98.689% 911 69,922 99.990% 2019 74,425 73,442 98.678% 976 74,413 99.984% 2020 78,369 77,350 98.700% 1,007 78,349 99.974% 2021 82,470 81,661 99.019% 791 82,401 99.917% 2022 86,354 85,577 99.101% 700 86,117 99.726% 2023 91,736 90,881 99.068% 651 91,360 99.591% 2024 107,556 105,727 98.299% 1,340 105,727 98.299% 2025 111,018 109,842 98.941% - 109,842 98.941% Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 217 Deschutes County, Oregon STATISTICAL SECTION Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) Governmental Activities Limited Tax Bonds Fiscal Year Pension Obligation Bonds Full Faith and Credit Obligations Notes Payable Leases Right-of-Use Obligations Subscriptions Right-of-Use Obligations 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 23,175 680 2,127 - 2023 5,830 21,492 459 2,835 1,278 2024 4,660 39,947 233 7,722 1,233 2025 3,960 37,092 - 7,424 1,192 (1) See page 225 for personal income and population data. n/a - Not available. 218 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Business-Type Activities Total Fiscal Year General Obligation Bonds Full Faith and Credit Obligations Notes Payable Leases Right-of-Use Obligations Total Primary Government Percentage of Personal Income (1) Per Capita (1) 2016 $ 2,595 $ 4,666 $ 8,127 $ - $ 65,936 0.73% $ 386.18 2017 - 4,451 7,420 - 59,481 0.61% 336.75 2018 - 4,200 6,699 - 55,453 0.52% 303.14 2019 - 3,976 5,965 - 51,873 0.46% 274.49 2020 - 3,744 5,220 - 48,131 0.41% 249.38 2021 - 3,507 4,459 - 43,261 0.32% 219.58 2022 - 3,437 3,692 14 40,534 0.27% 199.29 2023 - 24,232 2,906 10 59,041 0.35% 284.45 2024 - 23,237 2,107 5 79,144 n/a 373.07 2025 - 22,208 1,293 13 73,183 n/a 284.45 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 219 Deschutes County, Oregon STATISTICAL SECTION Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years (dollars in thousands, except per capita) General Bonded/Gross Direct Debt Fiscal Year 2016 2017 2018 2019 General Obligation Bonds (1) $ 2,595 $ - $ - $ - Limited Tax Bonds 53,288 50,335 47,229 44,591 Notes from Direct Borrowings 10,053 9,146 8,224 7,282 Less: Amounts available in debt service fund (2) (264) - - - $ 65,672 $ 59,481 $ 55,453 $ 51,873 Debt as a percentage of estimated actual taxable value of property (3) 0.23% 0.18% 0.15% 0.13% General Bonded/ Gross Direct Debt per Capita (4) $ 385 $ 337 $ 303 $ 274 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 269) 220 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Fiscal Year 2020 2021 2022 2023 2024 2025 $ - $ - $ - $ - $ - $ 3,960 41,803 37,908 34,021 51,553 67,844 59,300 6,328 5,353 4,372 3,365 2,340 8,717 - - - - - - $ 48,131 $ 43,261 $ 38,393 $ 54,918 $ 70,184 $ 73,183 0.11% 0.09% 0.07% 0.10% 0.10% 0.09% $ 249 $ 220 $ 189 $ 265 $ 331 $ 351 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 221 Deschutes County, Oregon STATISTICAL SECTION Direct and Overlapping Governmental Activities Debt June 30, 2025 (dollars in thousands) Governmental Unit Debt Outstanding Estimated Percentage Applicable Amount Applicable to Primary Government Debt repaid with property taxes Alfalfa RFPD $ 146 94.2200% $ 138 Bend Metro Park & Rec District 16,090 100.0000% 16,090 Central Oregon Community College 32,800 85.6800% 28,103 Central Oregon Regional Housing Authority 2,550 100.0000% 2,550 City Of Bend 338,437 100.0000% 338,437 City Of La Pine 1,163 100.0000% 1,163 City Of Redmond 35,886 100.0000% 35,886 Cloverdale RFPD 1,660 100.0000% 1,660 Crook Cty School District 38,200 0.5700% 217 Crooked River Ranch RFPD 1,551 8.2500% 128 Deschutes Cty RFPD 2 (Bend) 7,345 100.0000% 7,345 Deschutes Cty SD 1 (Bend-La Pine) 400,511 100.0000% 400,511 Deschutes Cty SD 2J (Redmond) 270,988 93.8000% 254,185 Deschutes Cty SD 6 (Sisters) 38,242 99.9800% 38,232 Deschutes Public Library District 180,915 100.0000% 180,915 High Desert ESD 3,671 91.1000% 3,344 Howell Hilltop Acres Spec Rd District 152 100.0000% 152 Lapine Parks & Recreation District 215 100.0000% 215 Redmond Fire & Rescue 2,023 99.8300% 2,020 Sisters RFPD (Camp Sherman) 450 90.0000% 405 Subtotal, overlapping debt 1,311,696 Deschutes County direct debt 49,669 Total direct and overlapping debt $ 1,361,365 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. 222 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Legal Debt Margin Calculation for Fiscal Year 2025 Estimated Actual Value $ 82,955,728 Estimated Actual Value $ 82,955,728 Debt limit (2% of estimated actual value) (1) 1,659,115 Debt limit (1% of estimated actual value) (2) 829,557 Debt applicable to limit: Debt applicable to limit: General obligation bonds $ 3,960 Limited tax bonds $ 37,092 Less: Amount held for repayment of debt - Less: Amount held for repayment of debt - Total net debt applicable to limit $ 3,960 Total net debt applicable to limit $ 37,092 Legal debt margin $ 1,655,155 Legal debt margin $ 792,465 (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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 223 Deschutes County, Oregon STATISTICAL SECTION Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Fiscal Year 2016 2017 2018 2019 2020 Debt Limit (2%) (1) $ 577,687 $ 648,312 $ 735,733 $ 824,609 $ 897,925 Total net debt applicable to limit 2,595 - - - - Legal debt margin $ 575,092 $ 648,312 $ 735,733 $ 824,609 $ 897,925 Total net debt applicable to the limit as a percentage of debt limit 0.45% 0.00% 0.00% 0.00% 0.00% Debt Limit (1%) (2) $ 288,843 $ 324,156 $ 367,867 $ 412,304 $ 448,963 Total net debt applicable to limit 50,357 47,610 42,350 39,049 36,639 Legal debt margin $ 238,486 $ 276,546 $ 325,517 $ 373,255 $ 412,324 Total net debt applicable to the limit as a percentage of debt limit 17.43% 14.69% 11.51% 9.47% 8.16% (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. 224 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Fiscal Year 2021 2022 2023 2024 2025 $ 958,320 $ 1,122,878 $ 1,463,703 $ 1,611,419 $ 1,659,115 - - - - 3,960 $ 958,320 $ 1,122,878 $ 1,463,703 $ 1,611,419 $ 1,655,155 0.00% 0.00% 0.00% 0.00% 0.24% $ 479,160 $ 561,439 $ 731,851 $ 805,709 $ 829,557 33,124 30,585 27,322 44,607 37,092 $ 446,036 $ 530,854 $ 704,530 $ 761,102 $ 792,465 6.91% 5.45% 3.73% 5.54% 4.47% Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 225 Deschutes County, Oregon STATISTICAL SECTION Demographic and Economic Statistics - Last Ten Calendar Years Year Population Personal Income (thousands of dollars) Per Capita Personal Income Median Age Public School Enrollment Unemployment Rate 2016 170,740 $ 8,921,964 $ 49,709 40.96 25,598 4.9% 2017 176,635 9,744,419 52,566 41.13 26,446 4.2% 2018 182,930 10,529,174 55,443 41.33 26,868 4.1% 2019 188,980 11,265,156 57,689 41.50 27,008 3.9% 2020 193,000 12,781,035 64,080 41.63 27,237 9.1% 2021 197,015 14,408,123 70,161 41.82 25,687 6.0% 2022 203,390 14,794,468 71,627 42.64 25,576 4.2% 2023 207,561 16,864,729 81,025 43.28 25,593 4.4% 2024 212,141 n/a n/a 42.88 25,321 3.9% 2025 208,612 n/a n/a 43.23 25,186 4.3% Sources: Population data provided by Portland State University, Population Research Center. Prior to fiscal year 2024, personal income and per capita personal income information was provided by Portland State University, Population Research Center and Federal Reserve Economic Data. Historical data for these statistics have been updated to reflect information provided by the U.S Bureau of Economic Analysis. 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, 2024, reflect county population estimates available as of April 2025. Median age figures for 2016-2025 are based on mid-year data tables. School enrollment is based on the census at the start of the 2024-25 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 20245is an average of July 2024 through June 2025. n/a - Not available. 226 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Principal Employers - Current Year and Nine Years Ago 2025 2016 Employer Employees Rank Percentage of Total County Employment Employees Rank Percentage of Total County Employment St. Charles Health System 4,742 1 4.46% 2,694 1 3.15% Bend-La Pine School District 2,385 2 2.24% 1,797 2 2.10% Deschutes County 1,334 3 1.25% 1,064 3 1.24% Mt. Bachelor 1,094 4 1.03% 769 7 0.90% BASX Solutions 1,060 5 1.00% Sunriver Resort 975 6 0.92% 936 4 1.09% Redmond School District 901 7 0.85% 851 6 0.99% Central Oregon Community College (COCC) 801 8 0.75% 883 5 1.03% City of Bend 783 9 0.74% Safeway (includes Albertsons) 781 10 0.73% 674 9 0.79% Bend Memorial Clinic 701 8 0.82% Walmart 639 10 0.75% Total Employees of Principal Employers 14,856 13.97% 11,008 12.86% Total County Nonfarm Employment 106,318 100.00% 85,629 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 227 Deschutes County, Oregon STATISTICAL SECTION Full-Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government Executive 9.75 9.75 9.75 9.75 10.75 10.75 10.75 11.75 12.75 11.75 General services Judicial 54.05 54.55 57.30 59.50 65.60 63.30 69.00 71.10 71.80 68.95 Financial 39.53 39.73 39.73 40.23 40.23 41.23 41.23 46.23 49.03 47.23 Assessment 33.00 33.00 34.26 35.26 33.26 33.26 31.00 32.26 29.63 32.00 Community development 20.30 25.10 27.50 30.50 29.50 30.50 32.50 32.10 24.40 25.50 Building services 25.20 25.00 25.00 26.00 18.60 21.60 21.75 23.75 24.75 25.75 Information technology 16.00 15.70 15.70 15.70 15.70 15.70 16.70 15.70 18.00 19.00 Other 4.32 4.62 4.62 4.62 4.62 6.82 5.82 8.82 7.52 8.52 Public protection Law enforcement 113.75 113.75 115.25 117.45 117.50 124.00 127.50 129.25 125.55 133.50 Corrections 199.10 200.10 202.00 205.00 195.75 188.25 185.50 178.25 178.20 176.63 Protective inspection 15.70 19.90 25.50 24.50 24.50 23.50 27.30 25.70 22.60 25.50 Other Protection 57.50 59.00 60.00 60.00 54.00 54.00 55.00 52.57 55.15 56.00 Public works Streets & highways 53.50 54.00 54.00 56.00 54.00 55.00 56.00 56.00 59.00 58.00 Sanitation 23.50 23.50 24.50 25.50 24.00 21.00 24.00 30.00 37.00 40.00 Health & welfare Health services 265.25 303.85 313.45 309.95 291.95 330.78 353.75 382.10 385.43 384.18 Recreation & culture Fair & expo center 11.00 12.00 12.00 12.00 10.92 10.00 8.00 11.75 13.50 12.50 Total 941.45 993.55 1,020.56 1,031.96 990.88 1,029.69 1,065.80 1,107.33 1,114.31 1,125.01 Source: Deschutes County Finance Department. Note: Above amounts are for Primary Government. 228 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Fiscal Year Function/Program 2016 2017 2018 2019 General government Building permits issued for new homes 440 555 549 574 Total building permits issued 1,309 1,427 1,594 1,564 Police Physical arrests 1,568 1,797 1,791 1,810 Traffic violations Citations issued 2,104 2,159 2,412 2,382 Warnings 1,547 1,159 908 949 Calls for service 34,535 35,285 34,893 35,014 Traffic stops 10,533 12,608 12,539 13,532 Solid waste Solid waste collected (tons) 203,896 226,325 240,844 238,955 Average annual per capita waste 2,451 2,591 2,727 2,959 Recyclables collected (tons) 72,940 80,234 79,757 60,958 Road Street resurfacing (miles) 14.57 8.07 5.28 8.19 911 emergency services Emergency calls 62,181 64,158 64,047 68,434 Police officer initiated calls 252,333 256,923 250,834 261,196 Fire department initiated calls 25,308 27,426 26,894 27,856 Mental health crisis calls* - - - - 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. N/A: FY 2025 data is not available due to a delay in data provided to Solid Waste by Oregon DEQ. *This data was not tracked until 2024 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 229 Deschutes County, Oregon STATISTICAL SECTION Fiscal Year 2020 2021 2022 2023 2024 2025 586 744 698 393 402 365 1,589 1,885 1,927 1,557 1,357 1,363 1,463 964 1,271 1,507 1,573 1,353 1,905 1,832 1,580 1,007 1,486 1,412 731 571 646 544 513 646 38,823 36,601 35,602 35,303 33,625 35,032 12,225 10,915 12,158 9,940 11,332 11,251 263,464 267,940 296,470 309,429 310,342 N/A 2,788 2,777 3,010 2,165 2,177 N/A 83,472 84,347 98,491 89,304 84,413 N/A 10.63 95.76 92.56 52.13 91.94 99.42 71,987 75,179 77,685 76,870 67,513 66,959 247,085 242,077 216,636 226,877 221,828 218,596 27,670 31,089 30,767 31,511 32,513 34,308 - - - - 3,463 4,482 230 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 STATISTICAL SECTION Deschutes County, Oregon Capital Assets Statistics by Function/Program - Last Ten Fiscal Years Fiscal Year Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Public Safety Stations 4 4 4 4 4 4 4 4 4 4 Adult correctional facilities 2 2 2 2 2 2 2 2 2 2 Special services complex 1 1 1 1 1 1 1 1 1 1 Road Streets (miles) 927 927 931 917 929 929 927 925 925 925 Streetlights 4 4 32 32 35 74 74 94 108 108 Flashing lights 4 4 5 5 2 1 1 1 1 1 Signals 3 3 3 3 3 3 3 4 4 4 Sources: Deschutes County Road Department and the Deschutes County Sheriff’s Office. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 231 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k 232 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 Audit Comments and Disclosures Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 233 Deschutes County, Oregon SINGLE AUDIT SECTION Audit Comments and Disclosures Required by State Regulations Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit reports. The required statements and schedules are set forth in the preceding sections of this report. Required comments and disclosures related to the audit of such statements and schedules are set forth in the following pages. 234 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 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, 2025, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated December 1, 2025. 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 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 235 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 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 Moore, Principal, for Baker Tilly US, LLP Eugene, Oregon December 1, 2025 236 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 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 (Government Auditing Standards), 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, 2025, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated December 1, 2025. 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. Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 237 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 December 1, 2025 238 Annual Comprehensive Financial Report | For the Fiscal Year Ended June 30, 2025 T h e p a g e I n t e n t i o n a l l y l e f t b l a n k Deschutes County Deschutes County 1300 NW Wall Street, Suite 2001300 NW Wall Street, Suite 200 Bend, OR 97703Bend, OR 97703 www.deschutes.orgwww.deschutes.org