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HomeMy WebLinkAboutDeschutes County Popular Annual Financial Report FY2025 For the Fiscal Year Ended June 30, 2025 Deschutes County, Oregon Popular Annual Financial Report 1 DESCHUTES COUNTY, OREGON Introduction …….…………………………………………………………….……………………. 1 Assets and Liabilities……...………………………………………………………….………… 2 Net Position…………………...………………………………………………………….………… 3 Revenues and Expenses………………………..…………………………………………….. 4 Revenues and Expenses —10 Year History…………………..…….……………….. 5 Debt……………………………………………………..…………………………….……………….. 6 Where Do Your Taxes Go?........................……………………………………………... 7 Property Taxes…………………………………………………………………………….…….... 8 Demographics and Staffing Ratio………………………………………………….…….. 9 Glossary……………………………………………………………………………………….……... 10 Additional Resources…..……………………………………………………………….……... 10 Additional Information…………………………………………………………………..….... 11 Fiscal Year 2024 PAFR Award…………………………………..……………………..….... 12 Introduction Residents of Deschutes County, The purpose of the Deschutes County Popular Annual Financial Report (PAFR) is to provide residents with a relatively quick read of the highlights from the County’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025, and to provide insight into long-term trends of the County’s largest financial indicators. The ACFR is a detailed and complete financial presentation prepared in conformance with the United States Generally Accepted Accounting Principles (GAAP) and is available in its entirety online at www.deschutes.org/finance. The ACFR was audited by Baker Tilly US LLP, an independent auditing firm, and received a clean opinion. Respectfully Submitted, Robert Tintle, MPA Jana Cain, CPA Chief Financial Officer Controller Table of Contents Page 2 DESCHUTES COUNTY, OREGON Assets Liabilities Total assets held by Deschutes County as of June 30, 2025 was $725 million, an increase of 10% over the prior year. During fiscal year 2025, the County invested in capital assets which support long-term service delivery. Capital assets increased by $19 million primarily due to the county courthouse expansion and major transportation projects. The County’s cash position increased by $21 million. “Other” assets are made up of receivables and inventory. 44% 43% 44% 22% 15% Post-employment benefits (Pension and OPEB) continue to be the largest individual County liabilities. 24% 14% Assets by Percent Liabilities by Percent 41% 15% 18% 13% 43% 43% 41% 16% 26% 21% Total liabilities incurred by Deschutes County as of June 30, 2025 was $392 million, a 1% increase over the prior year. During fiscal year 2025, the County’s unearned revenues decreased by $25 million while the other post-employment benefits (OPEB) liability and net pension liability increased by $13 million and $18 million, respectively. 11% 44% 5% 21% 17% 13% 3 DESCHUTES COUNTY, OREGON Net Position Deschutes County’s net position as of June 30, 2025 was approximately $334 million. Net Position is broken into two types: Capital Assets and Other Assets. Net investment in capital assets represents the book value of the County’s capital assets (acquisition cost minus accumulated depreciation and amounts owed on the related assets). Capital assets includes the County’s investment in: · Buildings and building improvements · Land and land improvements · Equipment and vehicles · Infrastructure (e.g. roads, bridges, sidewalks) · Intangibles (e.g. computer software) The net position of capital assets could be viewed in a similar manner as home-equity (i.e. in 2025, capital assets are worth $246 million more than what is owed). Restricted net position represents funds that are limited to construction activities or specific programs by law. Unrestricted net position represents the resources that are available for services such as: · Cash · Investments · Receivables (business or people owing the County money) A negative unrestricted net position means the government’s spending and obligations exceed its available, uncommitted resources. Net Position (in millions) Net Position Per Capita * Since 2017, our total net position has shown consistent year-over-year growth. $1,596 per capita $800 $1,100 $1,400 $1,700 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 $(100) $(50) $- $50 $100 $150 $200 $250 $300 $350 $400 20 1 6 20 1 9 20 2 2 20 2 5 Unrestricted Net Position Restricted Net Position Net investment in Capital Assets 4 DESCHUTES COUNTY, OREGON Revenues Deschutes County revenues for Fiscal Year 2025 were $349 million, an increase of 14.4% over the prior year. Taxes include both property tax revenue and lodging-tax revenue. Total tax revenue for the year was $123 million, a 4.4% increase over the prior year. This was driven by increased assessed property values and 1,381 new property tax accounts. Charges for Services include payments made by residents for a specific service provided to the resident. Total charges for services for the year was $96 million, representing a 19.8% increase over the prior year driven by fee increases. Grants and Contributions include payments made for services by the Federal, State, and other local governments. Grants and contributions totaled $113 million, a 22.1% increase from the prior year. The increase was primarily driven by 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). Expenses Deschutes County expenses for Fiscal Year 2025 were $285 million. During FY 2025, the County prioritized 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%. $349 Million Revenue Solid Waste expenses decreased primarily due to the costs associated with the Knott Landfill closure decreasing by approximately $3 million. The landfill is projected to reach capacity in 2029. Solid Waste also completed the Negus Transfer Station in North County in July 2024. Fair and Expo / RV Park expenses increased 20.7% due to the continuing growth of events such as the High Desert Stampede, Fairwell Festival, and Cascade Equinox Festival. $285 Million Expense Public Safety expenses decreased 5% underscoring ongoing efforts to reduce materials and supply costs to offset increasing personnel expenses. Health and Welfare expenses increased by 0.5% remaining consistent with prior year costs. General Government expenses increased by 17% due to increases in personnel costs, related to increased cost of living adjustments, union contract negotiations, and rising health benefits and retirement costs. County Roads expenses increased 2.5%, staying aligned with last year’s costs, while realizing an increase in depreciation for FY 2025. 5 DESCHUTES COUNTY, OREGON Revenues — 10 Year History Expenses — 10 Year History Expenses (in millions)2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Public safety 75$ 69$ 64$ 70$ 70$ 86$ 87$ 107$ 110$ 103$ Health and welfare 44 45 50 45 46 63 56 66 77 78 General government 36 32 37 32 50 50 48 67 35 40 County roads 18 19 18 18 18 25 22 10 34 36 Solid Waste 9 11 10 9 13 10 13 14 20 18 Fair & Expo / RV Park 5 5 5 6 5 3 5 6 7 8 Interest and fiscal charges 2 2 2 2 2 1 1 1 2 2 Total Expenses 189$ 183$ 186$ 182$ 204$ 238$ 232$ 271$ 285$ 285$ 6 DESCHUTES COUNTY, OREGON Debt $386 PER CAPITA $309 PER CAPITA $0 $200 $400 $600 $0 $40 $80 $120 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 DE B T P E R C A P I T A OU T S T A N D I N G D E B T ( I N M I L L I O N S ) 10 Year History of Debt During fiscal year 2025, debt decreased to $64.6 million (Par Value of $59.2 million) through scheduled debt payments. No new debt was issued during the year. The chart below represents the amounts owed on June 30, 2025. Expansion of Deschutes County Courthouse $64.6 Million The chart below presents the amount of debt outstanding each year, as well as the amount attributable to each resident in Deschutes County. The debt per capita metric illustrates the County’s debt burden in relation to an individual resident. 7 DESCHUTES COUNTY, OREGON Where do your taxes go? Although Deschutes County is the tax collector for all taxing districts within the county, overall only 17 cents of each dollar paid in taxes is retained by the County. The remaining 83 cents is passed through to other government agencies to provide for schools, police and fire departments, parks, libraries, and more. NOTE: The tax allocation shown below is based on the City of Bend Taxing District (Tax Code 1001). All other city/rural allocations are similar. 43¢ 26¢ 17¢ 9¢ 5¢ Deschutes County uses its taxes to fund Public Safety, Health and Welfare, and General Government. Public Safety includes the Sheriff’s Office, Deschutes 9-1-1 District, Community Justice, and District Attorney’s Office (including Victims’ Assistance). Health and Welfare includes Deschutes County Health Services and Veterans’ Services. General Government includes a variety of departments such as the Assessor’s Office and Clerk’s Office (including elections). 9¢ 1¢ 4¢ 1¢ 2¢ Public Safety 12¢ 8 DESCHUTES COUNTY, OREGON Property Taxes 10 Year History of the Tax Rates* In Oregon, property taxes are billed based on the assessed value of a property multiplied by the approved (levied) tax rate. Deschutes County is funded, in part, by five separate tax levies. · General Deschutes County Levy: District Attorney, Assessor, Community Justice, and more, for all residents. · Countywide Law Enforcement Levy: County Jail, Civil Unit, and Search and Rescue for all residents. · Rural Law Enforcement Levy: Detectives, Patrol, and Records for residents outside of city limits. · 9-1-1 Levy: Traditional 9-1-1 services for all residents. · Extension and 4-H Levy: Extension and 4-H services for all residents. The cumulative total of tax rates levied and the assessed value for the past 10 years are shown below. Assessed Value x Tax Rate = Tax Bill *Rate per $1,000 of assessed value (excludes expired local option levies) 10 Year History of Assessed Value 5.0%*5.7%*5.9%*5.4%*5.4%*5.7%*5.6%*5.7%*4.8%* The average annual change in assessed value over the 10 year period is 5.4% $0 $5 $10 $15 $20 $25 $30 $35 $40 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bi l l i o n s *% Change in Assessed Value from prior year 9 DESCHUTES COUNTY, OREGON Demographics and Staffing Ratio Population for Deschutes County has increased by 22% over the 10 year period. This translates into an average annual growth rate of 2.3%. The average annual growth rate for the State or Oregon overall was 0.6% during the same period. Deschutes County’s population decreased by 1.7% in 2025 to 208,612. Source: Portland State University Median Age for Deschutes County has increased by 2.27 years since 2016. The median age for the United States over that same period hovered around 39 years old. At the end of Fiscal Year 2025, 50% of County residents were older than 43.23 years and 50% were younger. Source: Portland State University Unemployment Rate for Deschutes County during Fiscal Year 2025 was on average 4.3%. Deschutes County started the 10 year period shown with an unemployment rate of 4.9%. Source: Oregon Employment Department Population Per Full-Time Employee for Deschutes County has remained stable over the last 10 years. At the end of Fiscal Year 2025, there were 185 residents per County employee. This data point provides insight into the size of government versus the population governed. Source: Deschutes County Population Median Age (in years) Number of Residents per County Employee Unemployment Rate 150,000 170,000 190,000 210,000 230,000 2016 2019 2022 2025 39 41 43 45 2016 2019 2022 2025 2% 4% 6% 8% 10% 2016 2019 2022 2025 175 180 185 190 195 200 2016 2019 2022 2025 10 DESCHUTES COUNTY, OREGON Assessed Value (AV): dollar value assigned to a home or real estate for property tax purposes. Bonds: a type of debt-based investment where money is loaned to a government in return for an agreed rate of interest. Capital Assets: valuable, long-term items like buildings and equipment used for over one year. Fiscal Year (FY): a government or organization’s 12-month financial budget and reporting period. Fund: a fund is a separate fiscal and accounting entity used to segregate and account for resources related to a specific activity. Invested: commit capital (money or assets) into something (like bonds or property) with the expectation of generating future income, profit, or growth over time. It’s about putting money to work, rather than just holding onto it. Net Position: the difference between what the County owns and what the County owes; positive net position indicates a measure of financial stability. Other Post-Employment Benefits (OPEB): non-pension benefits provided to retired employees. Tax Levy: Amount of money a local taxing district intends to raise through property taxes to fund its budget. Glossary Additional Resources Dial (Property Information) https://dial.deschutes.org/ Emergency Information: During an incident in Deschutes County with evacuations or major impacts, this page will be updated as necessary. https://experience.arcgis.com/experience/6f8868c4477e462b8a653a89260268fc Inside Deschutes County Podcast: Join us as we discuss the exciting progress and growth of our area from the people who keep our County a wonderful place to call home. www.deschutes.org/administration/page/inside-deschutes-county-podcast Jobs and Volunteer Center www.deschutes.org/hr/page/job-and-volunteer-center Main Website www.deschutes.org/ Social Media Directory: Find us on Facebook, Twitter, Instagram and more! www.deschutes.org/administration/page/social-media-directory 11 DESCHUTES COUNTY, OREGON Intended audience: Residents seeking high-level financial information concerning the County. Measurement focus: The financial data presented in the Popular Annual Financial Report (PAFR) uses the same measurement focus and basis of accounting as the County’s Annual Comprehensive Financial Report (ACFR). Financial information: Financial information from the ACFR ‘s government-wide financials have been reproduced (full-accrual). Fund-level information has not been provided, but is available in the ACFR. All financial entities (including component units), as presented in the ACFR, have been consolidated in the PAFR. Departures from accounting terminology: In preparing the PAFR, minor departures were made from standard generally accepted accounting principal (GAAP) prescribed terminology. Such departures were made in an attempt to avoid confusion concerning the materials presented. Highlighted departures from GAAP are: · “Assets” as used in this report, at times, include both Assets and Deferred Outflows. · “Liabilities” as used in this report, at times, include both Liabilities and Deferred Inflows. Volatility due to changes in accounting measurement: Over the course of the 10 years presented, the Government Accounting Standards Board (GASB) has made modification to how certain items are presented (e.g. pensions and other post-employment benefits). Such changes in recognition practices introduced volatility to the 10 year trend information, as presented. Additional Information Special thank you to Finance Department staff and their commitment to the underlying debits/credits. Contact Information: Deschutes County Finance Department 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 finance@deschutes.org 12 DESCHUTES COUNTY, OREGON Fiscal Year 2024 PAFR Award