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Home My WebLink AboutFY 2014 Comprehensive Annual Financial ReportComprehensive Annual Financial Report As of and for the Year Ended June 30, 2014 Deschutes County, Oregon DESCHUTES COUNTY, OREGON 1300 NW Wall Street, Suite 200 Bend, Oregon 97701 COMPREHENSIVE ANNUAL FINANCIAL REPORT As of and for the Fiscal Year Ended June 30, 2014 Prepared by: Deschutes County Finance Department Wayne Lowry, CPA Finance Director Jeanine Faria Accounting Manager Deschutes County Table of Contents June 30, 2014 Introductory Section Letterof Transmittal.............................................................................................................................................. l OrganizationalChart .............................................................................................................................................. 6 List of Elected and Appointed Officials................................................................................................................ 8 GFOA Certification of Achievement..................................................................................................................... 9 Financial Section IndependentAuditors' Report .................................................................................................................................. 10 Management's Discussion and Analysis.................................................................................................................. 13 Basic Financial Statements Government -Wide Financial Statements Statementof Net Position................................................................................................................................ 26 Statementof Activities..................................................................................................................................... 27 Fund Financial Statements: Governmental Funds............................................................................................... 28 BalanceSheet...................................................................................................................................................28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .......................... 31 Statement of Revenues, Expenditures and Changes in Fund Balances............................................................ 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities................................................................................................................ 35 Fund Financial Statements: Proprietary Funds Statementof Net Position................................................................................................................................ 36 Statement of Revenues, Expenses, and Changes in Net Position.................................................................... 37 Statementof Cash Flows................................................................................................................................. 38 Fund Financial Statements: Fiduciary Funds Statement Fiduciary Assets and Liabilities — Agency Funds........................................................................... 40 Notesto Financial Statements..............................................................................................................................41 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Fund (Operations)......................................................................................................................................................... 77 Sub -Funds of the General Fund EconomicDevelopment............................................................................................................................... 79 CourtTechnology Reserve........................................................................................................................... 80 Assessment and Taxation Reserve............................................................................................................... 81 BethlehemInn.............................................................................................................................................. 82 HumaneSociety of Redmond...................................................................................................................... 83 ProjectDevelopment Fund........................................................................................................................... 84 GeneralCounty Projects.............................................................................................................................. 85 i GeneralCapital Reserve............................................................................................................................... 86 Property Management Operations............................................................................................................... 87 Community Justice — Juvenile..................................................................................................................... 88 CodeAbatement........................................................................................................................................... 89 Vehicle Maintenance and Replacement....................................................................................................... 90 Deschutes County Sheriff's Office.................................................................................................................. 91 Countywide Law Enforcement District........................................................................................................... 93 Sub -Fund of Countywide Law Enforcement District Countywide Law Enforcement District — Capital Reserve.......................................................................... 94 Rural Law Enforcement District...................................................................................................................... 95 Sub -Fund of Rural Law Enforcement District Rural Law Enforcement District — Capital Reserve..................................................................................... 96 RoadDepartment............................................................................................................................................. 97 Sub -Fund of Road Department Road Improvement Reserve......................................................................................................................... 98 RoadBuilding and Equipment..................................................................................................................... 99 DeschutesCounty 9-1-1................................................................................................................................. 100 Sub -Fund of Deschutes County 9-1-1 9-1-1 County Service District—Equipment Reserve................................................................................. 101 BehavioralHealth..........................................................................................................................................102 Notes to Required Supplementary Information.............................................................................................103 Other Supplementary Information Combining and Individual Fund Statements and Schedules Governmental Funds Major Funds and Sub -Funds Combining Balance Sheet GeneralFund.......................................................................................................................................... 104 Countywide Law Enforcement District................................................................................................. 107 Rural Law Enforcement District............................................................................................................ 108 Deschutes County Road Department..................................................................................................... 109 Deschutes County 9-1-1 County Service District.................................................................................. 110 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances GeneralFund.......................................................................................................................................... 111 Countywide Law Enforcement District................................................................................................. 115 Rural Law Enforcement District............................................................................................................ 116 M RoadDepartment Fund.......................................................................................................................... 117 Deschutes County 9-1-1 County Service District..................................................................................118 Non -major Governmental Funds CombiningBalance Sheet.......................................................................................................................... 119 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances .................................... 120 Nonmajor Special Revenue Funds CombiningBalance Sheet..........................................................................................................................121 Deschutes County Extension 4-H County Service Operating District ................................................... 131 Deschutes County Sunriver Service District..........................................................................................132 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances .................................... 133 Deschutes County Extension 4-H County Service District....................................................................144 Deschutes County Sunriver Service District..........................................................................................145 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual JusticeCourt ...........................................................................................................................................146 GrantProjects.........................................................................................................................................147 Industrial Lands Proceeds......................................................................................................................148 Park Acquisition and Development....................................................................................................... 149 ParkDevelopment Fees.........................................................................................................................150 CountySchool Fund...............................................................................................................................151 Special Transportation Fund..................................................................................................................152 TaylorGrazing....................................................................................................................................... 153 TransientRoom Tax...............................................................................................................................154 PERSReserve Fund...............................................................................................................................155 VideoLottery .........................................................................................................................................156 TransientRoom Tax — 1 %.....................................................................................................................157 ForeclosedLand Sales...........................................................................................................................158 Victims' Assistance................................................................................................................................159 LawLibrary ...........................................................................................................................................160 CountyClerk Records............................................................................................................................161 Children and Families Commission.......................................................................................................162 CourtFacilities.......................................................................................................................................163 Deschutes County Communication System........................................................................................... 164 Deschutes County Communication System Reserve.............................................................................165 PublicHealth..........................................................................................................................................166 HealthyStart .......................................................................................................................................... 167 iii PublicHealth Reserve............................................................................................................................ 168 OHP —Mental Health Services............................................................................................................... 169 AcuteCare Services............................................................................................................................... 170 OHP — Alcohol / Drug Services............................................................................................................. 171 CommunityDevelopment...................................................................................................................... 172 CDD Groundwater Partnership.............................................................................................................. 173 NewberryNeighborhood........................................................................................................................ 174 GISDedicated Fund............................................................................................................................... 175 Natural Resource Protection.................................................................................................................. 176 FederalForest Title III........................................................................................................................... 177 Surveyor................................................................................................................................................. 178 Public Land Corner Preservation........................................................................................................... 179 Countywide Transportation SDC Improvement Fee..............................................................................180 DogControl........................................................................................................................................... 181 AdultParole and Probation.................................................................................................................... 182 Extension4-H........................................................................................................................................183 Extension 4-H Construction................................................................................................................... 184 Black Butte Ranch Service District....................................................................................................... 185 Sunriver Service District — Operating Fund........................................................................................... 186 Sunriver Service District — Reserve Fund.............................................................................................. 187 Nonmajor Debt Service Funds CombiningBalance Sheet.......................................................................................................................... 188 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances .................................... 191 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Local Improvement District 2007 Series...............................................................................................195 Local Improvement District 2009 Series...............................................................................................196 CDD Building 1996 Full Faith and Credit, Refunding Series 2004 ......................................................197 Full Faith and Credit, REF Series 2012................................................................................................. 198 Full Faith and Credit, Series 2005......................................................................................................... 199 Full Faith and Credit, Series 2008......................................................................................................... 200 Full Faith and Credit, Series 2009......................................................................................................... 201 HHS/BJCC Full Faith and Credit, Refunding Series 2005.................................................................... 202 Full Faith and Credit 2010 — Secure Treatment Facility........................................................................203 Full Faith and Credit Jail Remodel Debt Service Series 2013............................................................... 204 General Obligation Bonds REF Series 2002/2012 Debt Service ...........................................................205 iv PERS, Series 2002 and 2004 Debt Service............................................................................................206 Bend Library County Service District Debt Service.............................................................................. 207 Sunriver Library County Service District Debt Service........................................................................208 Major Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual JailProject..............................................................................................................................................209 Nonmajor Capital Project Funds CombiningBalance Sheet.......................................................................................................................... 210 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances ................................... 211 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Local Improvement District................................................................................................................... 212 SistersHealth Clinic............................................................................................................................... 213 North County Services Building............................................................................................................214 CampusImprovement............................................................................................................................ 215 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity .................................. 216 Proprietary Funds Enterprise Funds Combining Schedule of Net Position Solid Waste Enterprise Sub-Funds.................................................................................................... 217 Fair and Expo Center Enterprise Sub-Funds...................................................................................... 218 Combining Schedule of Revenues, Expenses, and Changes in Net Position Solid Waste Enterprise Sub-Funds.................................................................................................... 219 Fair and Expo Center Enterprise — Sub Funds................................................................................... 220 Combining Schedule of Cash Flows Solid Waste Enterprise Sub-Funds.................................................................................................... 221 Fair and Expo Center Sub-Funds....................................................................................................... 222 Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual SolidWaste Operations...................................................................................................................... 223 LandfillClosure................................................................................................................................. 224 LandfillPostclosure........................................................................................................................... 225 Solid Waste Capital Projects..............................................................................................................226 Solid Waste Equipment Reserve........................................................................................................227 Fairand Expo Center......................................................................................................................... 228 AnnualCounty Fair............................................................................................................................ 229 v Fair and Expo Center Reserve.............................................................................. Fairgrounds Debt Service Fund............................................................................ RVPark................................................................................................................. Internal Service Funds Combining Schedules of Net Position.......................................................................... Combining Schedules of Revenues, Expenses, and Changes in Fund Net Position..... Combining Schedules of Cash Flows........................................................................... Schedule of Revenues, Expenses, and Changes in Net Position BuildingServices...................................................................................................... Administrative Services............................................................................................ Board of County Commissioners.............................................................................. Finance...................................................................................................................... Legal......................................................................................................................... Personnel................................................................................................................... Information Technology........................................................................................... ITReserve................................................................................................................. Insurance................................................................................................................... HealthBenefits Trust................................................................................................ Other Financial Schedules .. 230 .. 231 .. 232 .. 234 .. 236 .. 238 .. 241 .. 242 .. 243 .. 244 .. 245 .. 246 .. 247 .. 248 .. 249 .. 250 Schedule of Property Taxes Transactions — All County Taxes.......................................................................... 251 Schedule of Long -Term Debt Transactions....................................................................................................... 252 Schedule of Future Debt Service Requirements of General Obligation Bonds ................................................. 254 Schedule of Future Debt Service Requirements of Pension Obligation Bonds ................................................. 255 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds .............................................. 256 Schedule of Future Debt Service Requirements of Full Faith and Credit LID Bonds ....................................... 261 Schedule of Future Debt Service Requirements Notes...................................................................................... 262 Statistical Section Contents.................................................................................................................................263 Financial Trends Net Position by Component — Last Ten Fiscal Years........................................................................................ 264 Changes in Net Position — Last Ten Fiscal Years.............................................................................................. 266 Fund Balances - Governmental Funds — Last Ten Fiscal Years........................................................................ 268 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ............................. 270 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years............................................................... 273 Principal Property Taxpayers — Current Fiscal and Nine Years Ago................................................................ 276 Property Taxes Levies and Collections — Last Ten Fiscal Years....................................................................... 277 Debt Capacity Ratios of Outstanding Debt by Type — Last Ten Fiscal Years........................................................................... 278 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years.............................................................. 280 Direct and Overlapping Governmental Activities Debt..................................................................................... 281 Legal Debt Margin Information — Last Ten Fiscal Years.................................................................................. 282 Pledged -Revenue Coverage — Last Ten Fiscal Years........................................................................................ 284 vi Demographic and Economic Information Demographic and Economic Statistics — Last Ten Calendar Years................................................................... 286 Principal Employers — Current Year and Nine Years Ago................................................................................ 287 Operating Information Full -Time Equivalent County Government Employees by Function/Program — Last Ten Fiscal Years ........... 288 Operating Indicators by Function/Program — Last Ten Fiscal Years................................................................. 290 Capital Asset Statistics by Function / Program — Last Ten Fiscal Years........................................................... 292 Audit Comments And Disclosures Required By State Regulations................................................................ 294 Independent Auditor's Report Required by Oregon State Regulations................................................................. 295 Single Audit Compliance Report 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 ....................................... 297 Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by OMB Circular A-133.................................................................................................... 299 Schedule of Expenditures of Federal Awards........................................................................................................ 301 Notes to the Schedule of Expenditures of Federal Awards.................................................................................... 306 Schedule of Findings and Questioned Costs.......................................................................................................... 311 Statusof Prior Year Findings................................................................................................................................. 312 vii Introductory Section June 30, 2014 Deschutes County November 04, 2014 To the Board of County Commissioners and The citizens of Deschutes County, Oregon: DEPARTMENT OF ADMINISTRATIVE SERVICES Tom Anderson, County Administrator P. O. Box 6005, Bend, OR 97708-6005 1300 NW Wall St., Suite 206, Bend, OR 97701-1960 (541) 388-6565 - Fax (541) 385-3202 www.deschutes.org We are pleased to submit the Comprehensive Annual Financial Report of Deschutes County, Oregon as of and for the year ended June 30, 2014, together with the opinion thereon of our independent certified public accountants, Eide Bailly LLP. This report, required by Oregon Revised Statutes 297.425, is prepared by the Finance Department. Also included are Audit Comments and Disclosures required under the Minimum Standards for Audits of Oregon Municipal Corporations Section of the Oregon Administrative Rules. 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) Circular A-133 and the provisions of Government Auditing Standards promulgated by the U.S. Comptroller General as they pertain to the financial and compliance audits. A report on the County's compliance with applicable Federal laws and regulations related to the Single Audit Act, OMB Circular A-133 is included with this report beginning on page 299. This 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, 2014, 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. 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 MD&A and should be read in conjunction with it. Deschutes County's MD&A can be found immediately following the independent auditors' report. Profile of the Government The County was formed in 1916, is located in the central part of the state and covers an area of 3,055 square miles. 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 financial reporting entity, Deschutes County, includes all funds of Deschutes County, as well as all of its component units. Component units are legally separate entities for which Deschutes County is financially accountable. 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, social services for children and families, land use planning, building permitting and inspections, prosecution of criminals, justice court, parole & probation, election services, records maintenance, and operation of a landfill, a fair and expo center, and an RV park. Blended component units, although legally separate entities, are, in substance, part of Deschutes County's operations and are included as part of Deschutes County. Accordingly, the Countywide Law Enforcement District, Rural Law Enforcement District, Deschutes County 9-1-1 County Service District, Deschutes County Extension and 4-H County Service District, Black Butte Ranch and Sunriver Service Districts are reported as special revenue funds of Deschutes County. Bend Library County Service District and Sunriver Library County Service District are reported as debt service funds of Deschutes County. The County utilizes a budget committee, consisting of the three 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. Requested budgets are submitted for each fund, department and component unit county service district to the County's Budget Officer approximately four months prior to the beginning of the fiscal year. The Budget Officer prepares the proposed budget based on these requested budgets, and submits it to the Budget Committee, approximately two months prior to the beginning of the next fiscal year. The County is required to announce, in advance, and hold a public hearing on the approved budget and to adopt the budget by no later than June 30, the close of Deschutes County's fiscal year. The appropriated budget is prepared by fund, department and category (level of control). All transfers of appropriations between categories require approval by the Board of County Commissioners. 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 beginning on page 77 as part of the required supplementary information. All other funds are presented in a subsection of this report, which starts on page 146. Local economy Deschutes County is the outdoor recreation capital of Oregon. With noble, 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 has experienced rapid population growth. This growth is believed to be largely due to the area's invigorating climate and year-round recreation activities. The population is approximately 162,500, an increase of approximately 41% since 2000, and is projected to exceed 198,650 by 2025. Recreational activities include downhill and cross-country skiing, snowboarding, fishing, hunting, hiking, rock -climbing, road and mountain biking, mountain climbing, whitewater rafting and golfing. Deschutes County is the host of diverse annual events including the Bend Brewfest, Sunriver Music Festival, Sisters Outdoor Quilt Show, Cascade Children's 2 Festival/Balloons over Bend, Pole Pedal Paddle, Sisters Rodeo, Pacific Crest Weekend Sports Festival, WinterFest, Bend Film Festival, Golf World Pacific Amateur Golf Classic and the Cascade Cycling Classic. In Fiscal Year 2014, the County's assessed valuation of taxable property increased by 4.6%, approximately $817 million, to a total of $18.6 billion. Formerly a region dependent on wood products, Deschutes County has steadily diversified its employment and economic base. For the past decade, Deschutes County has lead Oregon in high technology growth and is home to several award winning craft breweries. Numerous companies from the Silicon Valley, Portland -Vancouver Metro and Puget Sound have relocated or expanded here. Many of these firms are small but extremely innovative, producing niche -market products from semiconductors to software, medical instruments to recreational equipment. Tourism in Deschutes County contributes to the diversified economy due to the abundance of year-round recreational activities. The County is home to a major medical center, designated as a level II trauma center, with more than 200 physicians on staff. 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 in order 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 or increases within existing authority) and fees due to temporary revenue shortfalls or unforeseeable one-time expenditures, the County will strive to maintain working capital balances in each fund. The amount of working capital, per fund, is a function of the type of fund. For most operating funds, the level is 8.3% of that fund's operating budget. For funds with property taxes as a significant portion of revenues, the level is one-third of estimated annual property tax collections. Long-term financial planning The County owns a motel facility that is being used by a non-profit as a homeless shelter. It was the intention of the County to facilitate the acquisition of the facility and to eventually recoup its investment over time. The County entered into a sale agreement with the non-profit entity in 2014 and it is anticipated the sale of the property will be completed soon. The County continues to analyze options for the physical consolidation of services provided to the citizens in the North County area. A property in the City of Redmond was purchased several years ago, potentially for this purpose. An additional property was purchased, in the City of Redmond, in Fiscal Year 2014 to house certain health services activities. It is the intent to sell the original North County facility and to use those proceeds to upgrade the Unger Building in Redmond. Even though contribution rates for the Public Employees Retirement System (PERS) have increased over the past several years, the County still maintains a sizable PERS reserve. PERS rates are expected to increase by 2% of payroll effective July 1, 2015. The PERS reserve may be used to offset the impact of this expected increase. Another option is to deposit a portion of the Fund's resources with PERS, in a side account, to buy down the rate over the next twenty years. Further analysis of the options for the use of the PERS reserve will be conducted in FY 2015. 3 Major initiatives In February 2011, the County opened its on-site employee health clinic, available to all individuals covered by the County's self-funded health insurance plan. Other jurisdictions, similar in size to Deschutes County, operating such clinics have realized cost savings in their health plans. The clinic is operated by a private provider under a fixed-price contract with the County. In May 2012, the County opened its on-site pharmacy. The pharmacy is also operated by a private provider and the County anticipates realizing a reduction in the cost of filling prescriptions, both to the County and to those covered under the County's health care plan. The status of both of these initiatives is being closely monitored to ensure that projected cost savings are realized over time. An expansion of the County jail facility was completed in the fall of 2014. Contributions from various funding sources, including a full faith and credit bond issue of $8,400,000 allowed the $11,000,000 project to move forward. The expansion, including additional jail beds and improvements to the jail medical facility will allow the Sheriff to avoid the need to lease additional jail beds from a neighboring county and to provide capacity for projected growth in the jail population into the future. First Responders from the Central Oregon Region and other partners including schools, hospitals, public works and various state agencies have been studying the concept of creating a regional emergency communication system that would provide the ability of all participants to communicate through a single system. A consultant's report was issued in July 2014 with a recommended solution. The estimated capital cost of the system is $14,000,000 with additional investments by each agency in compatible radio equipment upgrades. Discussions are ongoing regarding the funding for the project. It has been recommended that Deschutes County 9-1-1 County Service District be the coordinator of the project. During the recession, several revenue sources, commonly used for roads including federal forest receipts and payments in lieu of taxes (PILT), declined and were continually on the verge of being terminated during the federal budget crisis. Those funds continued to be received but have not been expended due to their precarious nature. As a result, many capital projects related to roads have been deferred. As the recovery continues, nearly $9 million of road capital projects are scheduled over the next several years. The County intends to upgrade its Financial and Human Resources software over the next several years. The project is currently being organized and a Request for Proposals is expected to be issued during Fiscal Year 2015 soliciting proposals from software vendors specializing in local government systems. from software vendors specializing in local government systems. 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 comprehensive annual financial report for the fiscal year ended June 30, 2013. This was the thirteenth consecutive year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, the County published an easily readable and efficiently organized comprehensive annual 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 is valid for a period of one year only. We believe that our current comprehensive annual 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 preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. El We would like to express our appreciation to all members of the Finance Department who assisted and contributed to the preparation of this report. Acknowledgment should also be given to the Board of County Commissioners for their interest and support in planning and conducting the operations of the County in a responsible and progressive manner. Respectfully submitted, 11 Oin Anderson County Administrator Imo" _f,r � c Wayne Lowry Finance Director County AssessorI I County Clerk Scot Langton Nancy Blankenship Appraisals I I Elections Assessment Document Records Recording Cartography Vital Records Property Tax Ar) Deals Citizens of Deschutes County County Sheriff Board of Commissioners Larry Blanton Tammy Baney An tho ny De Bo ne Alan Unger Corrections (Jail/ Work Center) Law Enforcement Administrative & Support Services Legal Counsel David Doyle County Legal Services Ad mi n ist ra tive/ Court Proce ed in os County Ad mi n ist rator Tom Anderson Victims' Assista County Treasurer Wayne Lowry Investments Tax Distribution Elected Offices Appointed Offices Department Functions 6 Justice of the District Attorney Peace Patrick Flaherty Charles Fadeley Prosecution in Traffic/ Ordinance Circuit Court Violations Treatment Courts I Small Claims Coui Victims' Assista County Treasurer Wayne Lowry Investments Tax Distribution Elected Offices Appointed Offices Department Functions 6 County Administrator Tom Anderson Heath Services I I Solid Waste I (Fair & Expo Center l Jane Smilie Timm Schimke Dan Despotopubs Public Heath Behavioral Heath Landfill Disposal Fair & Expo Center Community Child & Family Transfer Operation County Fair Heath Reproductive Adult Treatment Recycling Services RV Park Heath Matemal Child Developmental Health Disabilities Women, Infants & Access & Crisis Children (WIC) Services Alcohol & Drug Prave Mion Early Learning Internal Service Departments Road Department Community Chris Doty Development Nick Lelack Devebp/Maintain Planning Road System Deputy County County Surveyor Building Safety Noxious Weed Environmental Control Soils Fleet Equipment Code Services Enforcement GIS Community Justice Ken Hales Adult Parole & Probation Juvenile Justice Deputy County Offender Supervision Community Servi< Supervision Ad min'st nativeFina Electronic Mon ttorarg Juvenile Detention nce/Tax Transitional Services Probation & Diversion Deputy County Ad min'st nativeFina Admin'strator nce/Tax Services Erik Kropp Wayne Lowry Internal Auditing Accounting Property & Faciliti Risk Management Personnel Information Susan Ross Danielle Fegley Technology Veterans' Services Payroll Public Information Joe Sadony Budget Natural Resource BuildingWakens' Staff Recruitment Technology Protection Maintenance Compensation Law Library Tax Collection General & Vehicle Compensation Web Applications Property LiabilityManagement Dog Licensing Insurance GIS Unemployment Insurance Retirement County & Deputy County Administrator Americans with Programs Disabilities Act Appointed Offices Heath Benefits Department Functions List of Elected and Appointed Officials ELECTED OFFICIALS COUNTY COMMISSIONERS Tammy Baney Anthony DeBone Alan Unger ASSESSOR DISTRICT ATTORNEY Scot Langton Patrick Flaherty SHERIFF TREASURER Larry Blanton Wayne Lowry (Appointed) COUNTY CLERK JUSTICE COURT Nancy Blankenship Charles Fadely APPOINTED OFFICIALS County Administrator - Tom Anderson County Counsel — David Doyle Finance Director - Wayne Lowry Internal Auditor - David Givans Administrative Offices 1300 NW Wall Street, Suite 200 Bend, Oregon 97701 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Deschutes County Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2013 Executive Director/CEO Financial Section June 30, 2014 Deschutes County EideBailly CPAs & BUSINESS ADVISORS Independent Auditor's Report To the Deschutes County Board of Commissioners Deschutes County, Oregon Bend, Oregon Report on the Financial Statements We have audited the accompanying 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, 2014, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. www.eidebailly.com 877 W. Main St., Ste. 800 Boise, ID 83702-5858 T 208.344.7150 F 208.344.7435 1 EOE 10 Opinions In our opinion, the 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, 2014, 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. Emphasis of a Matter — Adoption of New Accounting Standard As described in Note 1 to the financial statements, the County adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. As discussed in Note 4.F to the financial statements, the County has retroactively restated the previously reported net position to account for bond issuance costs in accordance with this Statement. The County also now reports unavailable property tax revenues as deferred inflows of resources in accordance with this Statement. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, 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. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's financial statements. The introductory section, combining and individual nonmajor fund financial statements, schedule of capital assets used in the operation of governmental funds, schedule of property tax transactions, schedule of long-term debt transactions, schedules of future debt service requirements, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organization, and is also not a required part of the financial statements. 11 The combining and individual nonmajor fund financial statements, schedule of property tax transactions, schedule of long-term debt transactions, schedules of future debt service requirements, and schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements schedule of property tax transactions, schedule of long- term debt transactions, schedules of future debt service requirements, and schedules of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, schedule of capital assets used in the operation of governmental funds, and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 04, 2014 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 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 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 County's internal control over financial reporting and compliance. Report on Other Legal and Regulatory Requirements In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued our report dated November 04, 2014, on our consideration of the County's compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. 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. For Eide Bailly LLP Boise, Idaho November 04, 2014 12 Deschutes County Management's Discussion and Analysis June 30, 2014 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 as of and for the Fiscal Year ended June 30, 2014. We encourage readers to consider this information in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-5 of this report. Financial Highlights • Total assets and deferred outflows of resources of Deschutes County exceeded its liabilities by $204,037,000 as of June 30, 2014. Of this amount, $84,286,000 (unrestricted net position) may be used to meet the County's on-going obligations to citizens and creditors, compared to unrestricted net position of $71,674,000, restated for the write-off of prior years' bond issuance costs, as of June 30, 2013. • The County's governmental funds reported a combined fund balance of $94,569,000, an increase of $11,012,000 from June 30, 2013. Of this balance, $1,419,000, 1.5%, is non -spendable, $87,292,000, 92.3% is assigned and $5,858,000, 6.2% is unassigned. • County General Fund o The General Fund's fund balance was $15,682,000 as of June 30, 2014, an increase of $342,000. June 30, 2013 June 30, 2014 (as restated) General Fund (Operations) $ 8,486,000 $ 10,510,000 Sub -funds of the General Fund 7,196,000 4,830,000 $ 15,682,000 $ 15,340,000 o Fund balance is 51.6% percent of the Fund's combined revenues and transfers in and 52.1% of the fund's combined expenditures and transfers out. Assigned fund balance was $8,032,000 and unassigned fund balance was $7,650,000. • The County's Assessed Valuation of Taxable Property increased by 4.6% in Fiscal Year 2014. • Total bonded debt was $77,116,000 as of June 30, 2014, compared to total bonded debt of $76,955,000 as of June 30, 2013. 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. 13 Deschutes County Management's Discussion and Analysis June 30, 2014 Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of Deschutes County's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all of Deschutes County's assets, liabilities, deferred inflows/outflows 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 ended June 30, 2014. 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 inter -governmental 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, roads, health and welfare, and education. The business -type activities of Deschutes County include Solid Waste operations, the Deschutes County Fair & Expo Center and an RV Park. The government -wide financial statements include eight county service districts: Countywide Law Enforcement District, Rural Law Enforcement District, Deschutes County 9-1-1 County Service District, Deschutes County Extension and 4-H Service District, Black Butte Ranch Service District, Sunriver Service District, Bend Library County Service District and Sunriver Library County Service District. These entities are legally separate but are included as blended component units based on the criteria described in the Notes to Financial Statements (Note 1 — Summary of Significant Accounting Policies). Requests for copies of the separately issued financial statements for the county service districts should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Suite 200, Bend, OR 97701. The government -wide financial statements can be found on pages 26-27 of this report. 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. 14 Deschutes County Management's Discussion and Analysis June 30, 2014 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. Deschutes County reported activity in eighty-five (85) individual governmental funds and sub -funds during Fiscal Year 2014. 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 (Sheriff's Office, Countywide Law Enforcement District, Rural Law Enforcement District, Road, Deschutes County 9-1-1, Jail Project [a capital project fund] and Behavioral Health). Data from all other governmental funds are combined into a single, aggregated presentation. Individual data for each of these nonmajor 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. The Basic Governmental Fund Financial Statements can be found on pages 28-35 of this report. Proprietary funds. Deschutes County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions as business -type activities in the government -wide financial statements. Deschutes County uses enterprise funds to account for its Solid Waste, Fair & Expo Center operations and RV Park. An internal service fund is an accounting device used to accumulate and allocate costs internally among Deschutes County's various functions. Deschutes County uses internal service funds to account for its building, administrative, commissioner, finance, legal, personnel, information technology and insurance services. 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 as the government -wide financial statements. The proprietary fund financial statements provide information separately for Solid Waste, Fair & Expo Center operations and RV Park. Both Solid Waste and Fair & Expo Center are considered to be major funds of Deschutes County. The internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the "Other Supplementary Information" section of this report and in the budget to actual comparison schedules. The Basic Proprietary Funds Financial Statements can be found on pages 36-39 of this report. Fiduciary funds. Fiduciary funds, all of which are agency 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. 15 Deschutes County Management's Discussion and Analysis June 30, 2014 The Fiduciary Funds Statement of Assets and Liabilities can be found on page 40 of this report and the Statement of Changes in Assets and Liabilities on page 221. Notes to the 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. The notes to the financial statements can be found on pages 41-76 of this report. 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. Required supplementary information begins on page 80. 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. Government -wide Financial Analysis Net position, at a specific point in time, serves as a useful indicator of an entity's financial position. Deschutes County's assets and deferred outflows of resources exceeded liabilities by $204,037,000 at June 30, 2014. Approximately 58% of Deschutes County's net position represents its net investment in capital assets (land, infrastructure, buildings and equipment) less the related outstanding debt issued to acquire those capital assets. Deschutes County uses these capital assets to provide services to citizens and these net capital assets are not available for future spending. Although Deschutes County's investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, as the capital assets will not be liquidated to service the debt. Deschutes County's portion of net position restricted for use in its long- term capital projects and debt service requirements total $1,226,000, or .6% of the net position. The remaining 41%, $84,286,000, of Deschutes County's net position may be used to meet the County's on-going obligations to citizens and creditors. 16 Deschutes County Management's Discussion and Analysis June 30, 2014 As of June 30, 2014, Deschutes County reports positive balances in all three categories of net position (net investment in capital assets, restricted and unrestricted) for the government as a whole and for the governmental activities. The net position for the business -type activities is positive for capital assets, net of related debt and restricted for debt service but negative in the unrestricted category. Deschutes County's net position increased by $12,435,000 during Fiscal Year 2014. CHANGES DUE TO GOVERNMENTAL ACTIVITIES • During Fiscal Year 2014, net position for governmental activities increased by $10,216,000. Federal and State payments, dedicated for County Roads and for Health and Welfare activities, were received in FY 2014 and will be expended in future fiscal periods on building / maintaining roads and providing required health services to County residents. By most measures the recession has ended, and the County is rebuilding the reserves which had been used over the past several years. CHANGES DUE TO BUSINESS -TYPE ACTIVITIES • Net position of the business -type activities increased by $2,219,000. • Operating revenues in the County's solid waste enterprise have increased 8%. Due to a significant change in the estimate of the closure costs, the current year expenses have decreased nearly 23% from the previous year, and the Solid Waste activities operating income was $1,441,000. Had this change not been included in current year operations, operating expenses would have been $7,226,000. The net position increased $803,000 during Fiscal Year 2014. • The County's Fair & Expo Center had a net operating loss of $1,377,000. Non-operating revenues include $2,086,000 of property taxes levied to retire long term debt. The net position increased $1,375,000, to $13,083,000. 17 Governmental activities Business -type activities Total 2014 2013 2014 2013 2014 2013 (as restated) (as restated) (as restated) Assets other than capital assets $ 136,413,388 $ 115,851,607 $ 9,683,635 $ 9,147,393 $ 146,097,023 $ 124,999,000 Capital assets 135,360,163 129,765,742 49,987,335 52,385,449 185,347,499 182,151,191 Total assets 271,773,552 245,617,349 59,670,970 61,532,842 331,444,522 307,150,191 Deferred outflow of resources 1,131,855 8,582,492 420,428 516,600 1,552,283 9,099,092 Non-current liabilities 73,075,557 64,956,520 29,194,276 33,616,166 102,269,833 98,572,686 Current liabilities 22,537,373 22,166,545 4,152,194 3,907,820 26,689,567 26,074,365 Total liabilities 95,612,929 87,123,065 33,346,470 37,523,986 128,959,400 124,647,051 Net position Net investment in capital assets 90,528,453 89,462,800 27,996,595 27,369,640 118,525,048 116,832,440 Unrestricted 86,764,024 77,613,976 (1,251,667) (2,844,184) 85,512,356 74,769,792 Total net position $ 177,292,477 $ 167,076,776 $ 26,744,928 $ 24,525,456 $ 204,037,405 $ 191,602,232 Deschutes County's net position increased by $12,435,000 during Fiscal Year 2014. CHANGES DUE TO GOVERNMENTAL ACTIVITIES • During Fiscal Year 2014, net position for governmental activities increased by $10,216,000. Federal and State payments, dedicated for County Roads and for Health and Welfare activities, were received in FY 2014 and will be expended in future fiscal periods on building / maintaining roads and providing required health services to County residents. By most measures the recession has ended, and the County is rebuilding the reserves which had been used over the past several years. CHANGES DUE TO BUSINESS -TYPE ACTIVITIES • Net position of the business -type activities increased by $2,219,000. • Operating revenues in the County's solid waste enterprise have increased 8%. Due to a significant change in the estimate of the closure costs, the current year expenses have decreased nearly 23% from the previous year, and the Solid Waste activities operating income was $1,441,000. Had this change not been included in current year operations, operating expenses would have been $7,226,000. The net position increased $803,000 during Fiscal Year 2014. • The County's Fair & Expo Center had a net operating loss of $1,377,000. Non-operating revenues include $2,086,000 of property taxes levied to retire long term debt. The net position increased $1,375,000, to $13,083,000. 17 Deschutes County Management's Discussion and Analysis June 30, 2014 • The County's RV Park had a net operating loss of $49,000 but, due to a transfer from a special revenue fund, reported an increase in net position of $41,000. Program revenues Charges for services Operating grants and contributions Capital grants and contributions General revenues Property taxes Other taxes Other Total revenues Expenses General government Public safety County roads Health and welfare Education Interest on long-term debt Solid waste Fair & expo center RV park Total expenses Change in net assets before transfers Transfers Special item Change in net position Net position, beginning of year Net position, end of year Prior period adjustment (GASB #65) Net position, end of year (as restated) Governmental activities Business -type activities Total 2014 2013 2014 2013 2014 2013 $ 40,001,321 $ 37,678,393 $ 9,364,735 $ 8,719,573 $ 49,366,056 $ 46,397,966 40,070,038 31,233,012 50,964 49,790 40,121,002 31,282,802 437,240 86,514 176,289 - 613,529 86,514 62,346,458 61,340,020 2,086,179 2,417,152 64,432,637 63,757,172 4,340,159 3,656,126 - - 4,340,159 3,656,126 986,444 787,866 52,611 47,562 1,039,055 835,428 148,181,660 134,781,931 11,730,778 11,234,077 159,912,438 146,016,008 25,801,150 25,312,619 - - 25,801,150 25,312,619 57,786,656 57,806,152 - - 57,786,656 57,806,152 15,441,429 16,139,486 - - 15,441,429 16,139,486 35,154,506 31,682,855 - - 35,154,506 31,682,855 685,916 684,632 - - 685,916 684,632 2,556,364 2,485,174 - - 2,556,364 2,485,174 - - 6,327,028 8,122,538 6,327,028 8,122,538 - - 3,368,464 3,392,264 3,368,464 3,392,264 - - 355,752 339,145 355,752 339,145 137,426,021 134,110,918 10,051,244 11,853,947 147,477,264 145,964,865 10,755,639 671,013 1,679,534 (539,938) (337,272) 539,938 - (3,149,335) - 10,215,701 (2,815,594) 2,219,472 (619,870) 12,435,174 51,143 337,272 - - - - (3,149,335) (282,598) 12,435,174 (3,098,192) 167,076,776 170,734,310 24,525,456 25,108,712 191,602,232 195,843,022 177,292,477 167,918,716 26,744,928 24,826,114 204,037,405 192,744,830 - (841,940) - (300,658) - (1,142,598) $ 177,292,477 $ 167,076,776 $ 26,744,928 $ 24,525,456 $ 204,037,405 $ 191,602,232 Expenses and Program Revenues - Governmental Activities 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Deschutes County Management's Discussion and Analysis June 30, 2014 General Public safety County roads Health and Education Interest and government welfare fiscal charges Revenues by Source - Governmental Activities Property taxes 42% Ca contributions 0% Other taxes 3% ..ges for services 27% Other 1% nts and contributions 27% 19 Expenses and Program Revenues - Business -type Activities 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Deschutes County Management's Discussion and Analysis June 30, 2014 Solid waste Fair and expo center RV Park Revenues by Source - Business -type Activities Charges for service: 80% Other 0% )perating grants ad contributions 0% Capital grants 2% (es 20 Deschutes County Management's Discussion and Analysis June 30, 2014 Financial Analysis of the 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, 2014, $94,569,000 is the reported combined ending fund balance for Deschutes County's governmental funds, a net increase of $11,012,000 from June 30, 2013. Changes, amounts and percentages, in the fund balances of the major governmental funds and of the other governmental funds were: ►ITkVION General Fund (including sub -funds): increase of $342,000, 2.2% Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District (combined): decrease of $177,000, 1.5% • Road: increase of $3,104,000, 34.3.% • Deschutes County 9-1-1 County Service District: increase of $1,373,000, 10.8% • Jail Project (Capital Project Fund): increase of $266,000, 12.9% • Behavioral Health: increase of $255,000, 9.6% OTHER Nonmajor special revenue: increase of $6,571,000, 20.7% Nonmajor debt service: decrease of $568,000, 53.8% Nonmajor capital project: decrease of $153,000, 20.1% Significant Changes in Major Funds General Fund: As of June 30, 2014, the fund balance of Deschutes County's General Fund was $15,682,000. Of this fund balance, $8,032,000 is assigned for specific use and $7,650,000 is unassigned. One measure of the General Fund's liquidity is the relationship of the fund balance to the Fund's total expenditures. The fund balance as of June 30, 2014, for the General Fund is 77.8% of total General Fund expenditures and 52.3% of total General Fund combined expenditures and transfers out. Deschutes County's General Fund balance increased by $342,000 or 2.2% during Fiscal Year 2014. Revenues exceeded current expenditures by $9,821,000. These net resources along with Transfers In were used primarily to fund County services through transfers to other funds in the amount of $9,479,000. 21 Deschutes County Management's Discussion and Analysis June 30, 2014 Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District: The County's 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. Resources from the two law enforcement districts, totaling $33,096,000, were transferred to the Sheriff's fund where all Sheriff's services expenditures are recorded. Combined fund balances of these three major funds decreased by $177,000. Road: The fund balance in the Road fund increased by $3,104,000 or 34.3% over the prior year. The Road fund receives the majority of its revenue from the state of Oregon gas tax, vehicle registrations and from the federal secure rural schools program. Much less was spent on road projects due to the anticipated discontinuance of federal funds. Deschutes County 9-1-1 County Service District: The fund balance of Deschutes County 9-1-1 increased 10.8%, or $1,373,000 to a total of $14,120,000. A renewal of the serial levy was passed by voters and provides additional property tax resources for this function through Fiscal Year 2018. Jail Project (a Capital Project Fund): Beginning in Fiscal Year 2008, the County internally financed the initial costs of a planned expansion of the County's adult jail. The liability of $3,642,000 in this fund requires this capital project fund to be reported as a major fund. The internal debt is due primarily to a loan from the Solid Waste Reserve Fund. The County has developed a repayment plan to pay off this internal debt over a three year period. In Fiscal Year 2014, $1,206,000 was repaid and it is the intention to pay off the balance of $3,045,000 over the remaining two years. The County issued $8,405,000 of full faith and credit bonds in August 2013 to fund the construction of the improvements. Construction was completed in September 2014. Behavioral Health: The increase in fund balance was due largely to higher than anticipated state revenues to support behavioral health services. The number of Medicaid and Oregon Health Plan eligible clients increased dramatically in 2014. Revenues in this fund are paid to the County on a per -capita basis based on eligible population. Funding for a variety of health services is expected to be volatile over the next several years due the introduction of national health care and struggles at the federal level with budget deficits. The fund balances of the County's nonmajor special revenue funds increased by a net of $6,571,000. Certain special revenue funds have reported significant increases in fund balance: Community Development Department (CDD) — $459,000, Accountable Behavioral Health Alliance — $3,651,000, Countywide Transportation System Development Charges — $821,000, and Sunriver Service District — $578,000. In each case, revenues in excess of expenditures were received in Fiscal Year 2014 and will be used for expenditures in future years. The increase in fund balance in the CDD fund reflects the second year of a significant recovery in the real estate development market in Central Oregon. The PERS reserve fund balance increased by $367,000 as operating funds continued to contribute to the reserve fund. 22 Deschutes County Management's Discussion and Analysis June 30, 2014 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, 2014, the net position of the Solid Waste Department was $13,007,000, an increase of $803,000 over the June 30, 2013 balance. Of this balance, $14,713,000 is invested in capital assets, net of related debt, a decrease of $1,182,000 during Fiscal Year 2014. The operation of the Solid Waste Department provides the resources to be used in future years for the closure and postclosure costs associated with the landfills. Accrued landfill closure and postclosure cost is less than the amount accrued as of June 30, 2013 due to the reduction in the per -acre cost used in the estimate. The estimate for post closure liability at June 30, 2013 was $11,051,000 compared to the estimate at June 30, 2014 of $9,748,000. The June 30, 2014 net position of the Fair and Expo Center was $13,083,000, an increase of $1,375,000. The majority of the increase in net position resulted from the reduction in bonded debt of $2,336,000 combined with the operating loss of $1,377,000. The County opened its RV Park in July 2007. After an initial near -capacity usage during summer 2007, the effects of the recession have negatively impacted the operations; however, it is expected that with continued focus on marketing efforts, the RV Park will be a profitable enterprise. The unrestricted net position at June 30, 2014, was $30,000. General Fund Budgetary Highlights There were several budget adjustments between the General Fund's original budget and the final budget. Assumptions used for estimating revenues are generally conservative and General Fund actual revenues were $992,000 more than estimated. Most of the increase in revenues was due to property taxes with additional increases coming in the form of charges for services and state and federal payments. The variance between appropriations and expenditures was $693,000, approximately 5% of final appropriations. Several unrelated factors contributed to this variance including unfilled positions in several departments and lower than budgeted materials and services expenditures in the Clerk's Office and in the non -departmental department. Capital Asset and Debt Administration Capital Assets. Deschutes County's investment in capital assets for its governmental and business -type activities as of June 30, 2014, was $185,348,000, net of accumulated depreciation. The book value of the depreciable assets is 59% of historical cost. This investment in capital assets includes land, buildings, equipment and infrastructure such as roads and bridges. Additional information on Deschutes County's capital assets is included in Note III.D. Long-term Debt. As of June 30, 2014, Deschutes County's outstanding bonded debt was $77,116,000. Of this, $76,874,000 is backed by the full faith and credit of the County and $242,000 is special assessment debt for which the County is liable in the event of default by the property owners subject to the assessment. 23 Deschutes County Management's Discussion and Analysis June 30, 2014 DESCHUTES COUNTY'S Outstanding Debt General Obligation and Other Bonded Debt Governmental activities Business -type activities Total June 30, 2014 June 30, 2013 June 30, 2014 June 30, 2013 June 30, 2014 June 30, 2013 General Obligation Bonds $ 175,000 $ 2,670,000 $ 7,435,000 $ 9,590,000 $ 7,610,000 $ 12,260,000 Oregon Local Gov't Pension Bonds 10,799,172 11,026,387 - - 10,799,172 11,026,387 Full Faith & Credit Obligations 44,682,371 38,742,942 13,782,629 14,507,058 58,465,000 53,250,000 Special assessment debt with governmental commitment 242,269 419,000 - - 242,269 419,000 Total $ 55,898,813 $ 52,858,329 $ 21,217,629 $ 24,097,058 $ 77,116,441 $ 76,955,387 Deschutes County's bonded debt increased by $161,000 during the fiscal year. The County issued $8,405,000 in Full Faith & Credit Obligations and $8,244,000 of debt was retired as part of scheduled debt repayments. Moody's Investors Services has assigned a credit rating of Aa3 to Deschutes County's Full Faith & Credit obligations and a credit rating of Aa2 to its general obligation bonds. State statutes limit the amount of general obligation debt a governmental entity may issue to 2% of its real market value. With real market value of $22.1 billion, the current debt limitation for Deschutes County is $442,000,000. The County's current general obligation debt of $7,610,000 represents .02% of this limitation. Additional information on Deschutes County's long-term debt is included in Note III.F. Key Economic Factors and Budget Information for the Future The economic slowdown of the real estate market had a negative impact on Deschutes County in Fiscal Year 2008 through Fiscal Year 2012. The County's Community Development Fund had been most affected, with a 60% reduction in the workforce, from 72.80 Full Time Equivalent (FTE) employees to 28.60 FTE. Community Development received a transfer of $1,350,000 from the County's General Fund in Fiscal Year 2012. Increased activity began in Fiscal Year 2013 and continued in Fiscal Year 2014. This fund's ending fund balance reached $2,038,000 as of June 30, 2014 and it required no transfers from the General Fund. • The County provided the resources, on behalf of a not-for-profit entity, to acquire real property for use as a homeless shelter in 2007. The County collected rent on the facility through Fiscal Year 2014 and expects to enter into an agreement to sell the property to the not-for-profit during Fiscal Year 2015. 24 Deschutes County Management's Discussion and Analysis June 30, 2014 The County is self-insured for general liability, workers' compensation, unemployment and vehicle claims. Internal insurance rates are set each year to provide adequate funding for the self insurance programs. The Risk Management Fund reported net position in the amount of $256,000, an increase in net position of $839,000 compared to Fiscal Year 2013. The internal insurance rates have been increased over the past several years to improve the financial health of this fund. This fund will continue to be monitored over the next several years to ensure that a sufficient balance is maintained to protect against expected claims. The net position of the County's Health Benefits Trust Fund increased annually from its inception in Fiscal Year 2001 through Fiscal Year 2009. Beginning in Fiscal Year 2010 and continuing through Fiscal Year 2014, internal insurance premiums were adjusted so that claims and administrative costs exceeded revenues, resulting in a reduction of the net position of this fund. As of June 30, 2014, the fund's net position, $11,037,000, represents an estimated nine months of claims costs. With a 6% increase in the internal premium charged to operating departments for Fiscal Year 2015, the projection is that there will be no significant change in net position over the next Fiscal Year. This fund will continue to be monitored to ensure that it maintains a sufficient balance to protect against unexpected claims. • An increase in PERS contribution rates, effective July 1, 2013, increased the County's expenditure for its defined benefit retirement plans by $300,000 or 3%. Because rates are actuarially set every other year, rates for 2015 will remain unchanged. The rates for Fiscal Years 2016 and 2017 were released in September 2014 and increased by nearly 8 percent. The new rates will become effective on July 1, 2015 for the following two years. • The County's Assessed Valuation of Taxable Property increased from Fiscal Year 2014 to Fiscal Year 2015 by 5.6% for approximately $19.7 billion. 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, P.O. Box 6005, 1300 NW Wall Street, Suite 200, Bend, OR 97708. 25 Basic Financial Statements June 30, 2014 Deschutes County ASSETS Current assets Cash and cash equivalents Investments, at fair value; plus accrued interest Restricted cash Taxes receivable Accounts receivable Notes and contracts receivable, net of allowance Assessments receivable Internal balances (due (to) / from other funds) Inventory Prepaid expenses Total current assets Pension asset Capital assets Capital assets not being depreciated Land Construction in progress Capital assets net of accumulated depreciation Infrastructure Land improvements Building and improvements Equipment and vehicles Intangible assets Total capital assets Total assets DEFERRED OUTFLOW OF RESOURCES Deferred charge on refunding Total deferred outflow of resources LIABILITIES Current liabilities Accounts payable and other current liabilities Accrued interest Unearned revenues Current portion of noncurrent liabilities Total current liabilities Noncurrent liabilities Compensated leave Net OPEB obligation Bonds and notes payable (net of unamortized premiumns and discounts) Accrued claims payable Accrued landfill closure and postclosure costs Less current portion of noncurrent liabilities Total noncurrent liabilities Total liabilities NET POSITION Net investment in capital assets Unrestricted Total net position Governmental Activities 49,956,463 68,914,564 2,712,577 4,468,986 4,286,314 484,483 (2,676,483) 1,418,998 38,642 129,604,544 6,808,845 13,587,072 11,895,143 44,638,761 2,300,494 52,685,528 8,605,886 1,647,279 135,360,163 271,773,552 Deschutes County Statement of Net Position June 30, 2014 Business - Type Activities Total $ 2,449,188 3,681,400 144,207 588,508 2,676,483 143,849 9,683,635 1,924,037 1,022,748 19,944,153 24,530,538 2,530,591 35,269 49,987,335 59,670,970 52,405,651 72,595,964 2,856,784 5,057,493 4,286,314 484,483 1,418,998 182,491 139,288,179 6,808,845 15,511,109 12,917,891 44,638,761 22,244,647 77,216,066 11,136,476 1,682,548 185,347,499 331,444,522 1,131,855 420,428 1,552,283 1,131,855 420,428 1,552,283 5,877,849 197,717 3,778,951 12,682,856 22,537,373 8,409,111 16,258,089 56,896,306 4,194,907 (12,682,856) 73,075,557 95,612,929 90,528,453 86,764,024 $ 177,292,477 405,910 65,390 267,224 3,413,670 4,152,194 297,922 571,300 21,990,740 9,747,984 (3,413,670) 29,194,276 33,346,470 27,996,595 (1,251,667) $ 26,744,928 6,283,759 263,108 4,046,175 16,096,526 26,689,567 8,707,033 16,829,389 78,887,046 4,194,907 9,747,984 (16,096,526) 102,269,833 128,959,400 118,525,048 85,512,356 $ 204,037,405 See Notes to Financial Statements 26 Deschutes County, Oregon Statement of Activities Year Ended June 30, 2014 Business -type Solid Waste 6,327,028 7,364,322 - - - 1,037,294 Net (Expense) Revenue and Fair and Program Revenues Changes in Net Position Fees, Fines and Operating Capital Grants - (1,357,834) (1,357,834) RV Park Charges for Grants and and Governmental Business -type Activities Expenses Services Contributions Contributions Activities Activities Total Governmental 9,364,735 50,964 176,289 - (459,256) (459,256) Total $ 147,477,265 General (56,917,422) (459,256) (57,376,678) General revenues: government $ 25,801,150 $ 11,593,147 $ 3,831,969 $ 17,657 $ (10,358,378) $ - $ (10,358,378) Public safety 57,786,656 6,252,467 8,068,962 46,514 (43,418,713) - (43,418,713) County roads 15,441,429 16,933,084 - - 1,491,656 - 1,491,656 Health and welfare 35,154,506 5,222,623 27,483,450 373,069 (2,075,364) - (2,075,364) Education 685,916 - 685,657 - (259) - (259) Interest and 986,444 52,611 1,039,055 Transfers fiscal charges 2,556,364 - - - (2,556,364) - (2,556,364) Total 69,811,851 Change in net position 10,215,702 2,219,472 governmental activities 137,426,021 40,001,321 40,070,038 437,240 (56,917,422) - (56,917,422) Business -type Solid Waste 6,327,028 7,364,322 - - - 1,037,294 1,037,294 Fair and Expo Center 3,368,464 1,783,377 50,964 176,289 - (1,357,834) (1,357,834) RV Park 355,752 217,036 - - - (138,716) (138,716) Total business - type activities 10,051,244 9,364,735 50,964 176,289 - (459,256) (459,256) Total $ 147,477,265 $ 49,366,056 $ 40,121,002 $ 613,529 (56,917,422) (459,256) (57,376,678) General revenues: Taxes: Property taxes, levied for general purposes 35,079,263 - 35,079,263 Property taxes, levied for sheriff services 25,284,848 - 25,284,848 Property taxes, levied for bonded debt 1,982,347 2,086,179 4,068,526 Transient room tax 4,340,159 - 4,340,159 Investment earnings 986,444 52,611 1,039,055 Transfers (539,938) 539,938 - Total general revenues and transfers 67,133,123 2,678,728 69,811,851 Change in net position 10,215,702 2,219,472 12,435,174 Net position - beginning (as previously reported) Prior Period Adjustment: Write-off bond issuance costs, in accordance with GASB 65 Net position - Beginning of year (as restated) Net position - End of year 167,918,715 24,826,114 192,744,829 (841,940) (300,658) (1,142,598) 167,076,775 24,525,456 191,602,231 $ 177,292,477 $ 26,744,928 $ 204,037,405 See Notes to Financial Statements 27 Deschutes County Balance Sheet June 30, 2014 LIABILITIES Accounts payable $ 900,690 $ 219,420 $ 93 Countywide Due to other funds 478,454 - - - Law Rural Law - - - Unearned revenue Enforcement Enforcement General Fund Sheriff District District ASSETS Unavailable revenue - property taxes Cash and cash equivalents $ 7,482,651 $ 87,494 $ 2,608,479 $ 1,700,867 Investments, at fair value; - Unavailable revenue - loans 858,725 - - plus accrued interest 11,262,722 131,673 3,926,802 2,560,459 Taxes receivable 878,831 - 613,370 298,221 Accounts receivable 263,293 253 153,592 189,512 Notes and contracts receivable 3,367,322 - - - Assessments receivable - - - - Inventory - - - - Due from other funds 6,219 - 847,049 - Total assets $ 23,261,038 $ 219,420 $ 8,149,291 $ 4,749,058 LIABILITIES Accounts payable $ 900,690 $ 219,420 $ 93 $ - Due to other funds 478,454 - - - Deposits 9,693 - - - Unearned revenue 2,090,541 - 27,968 Total liabilities 3,479,377 219,420 28,061 - DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes 773,069 - 539,806 262,442 Unavailable revenue - special assessments - - - - Unavailable revenue - loans 858,725 - - - Unavailable revenue - contracts of sale 2,468,270 - - - Total deferred inflow of resources 4,100,064 - 539,806 262,442 FUND BALANCES Nonspendable - - - - Assigned 8,031,837 - 7,581,425 4,486,616 Unassigned 7,649,760 - - - Total fund balances 15,681,597 - 7,581,425 4,486,616 Total liabilities, deferred inflow of resources and fund balances $ 23,261,038 $ 219,420 $ 8,149,291 $ 4,749,058 See Notes to Financial Statements (continued) 28 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Assessments receivable Inventory Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Deschutes County Balance Sheet June 30, 2014 Des County Jail Project 9-1-1 Co (Cap Proj Behavioral Road Sery Dist Fund) Health — $ 4,315,194 $ 5,581,747 $ 738,498 $ 1,675,273 6,494,295 8,402,675 1,111,723 2,521,629 - 238,504 - - 1,019,100 214,871 - 437,227 484,483 - - - 1,418,998 - - - $ 13,732,070 $ 14,437,798 $1,850,221 $ 4,634,130 $ 1,098,378 $ 106,600 $ 597,074 $ 637,643 - - 3,045,077 - 120 - - 1,071,002 1,098,498 106,600 3,642,151 1,708,645 Unavailable revenue - property taxes - 210,865 - - Unavailable revenue - special assessments 484,483 - - - Unavailable revenue - loans - - - - Unavailable revenue - contracts of sale - - - - Total deferred inflow of resources 484,483 210,865 - - FUND BALANCES Nonspendable 1,418,998 - - - Assigned 10,730,092 14,120,332 - 2,925,485 Unassigned - - (1,791,930) - Total fund balances 12,149,090 14,120,332 (1,791,930) 2,925,485 Total liabilities, deferred inflow of resources and fund balances $ 13,732,070 $ 14,437,798 $1,850,221 $ 4,634,130 See Notes to Financial Statements (continued) 29 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Assessments receivable Inventory Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - special assessments Unavailable revenue - loans Unavailable revenue - contracts of sale Total deferred inflow of resources FUND BALANCES Nonspendable Assigned Unassigned Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes County Balance Sheet June 30, 2014 Other Total Governmental Governmental Funds Funds $ 18,200,516 $ 42,390,720 21,113,235 57,525,213 683,651 2,712,577 1,861,148 4,138,996 918,992 4,286,314 - 484,483 - 1,418,998 - 853,267 $ 42,777,542 $ 113,810,568 $ 1,664,172 $ 5,224,069 6,219 3,529,750 9,427 19,119 585,138 3,774,769 2,264,956 12,547,708 177,002 1,963,183 - 484,483 903,045 1,761,770 15,947 2,484,217 1,095,993 6,693,652 - 1,418,998 39,416,593 87,292,380 - 5,857,830 39,416,593 94,569,208 $ 42,777,542 $ 113,810,568 See Notes to Financial Statements 30 Deschutes County Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2014 Total fund balances for governmental funds $ 94,569,208 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 funds. Those assets consist of: Land 13,587,072 Construction in progress 11,895,143 Infrastructure, net of $48,490,093 accumulated depreciation 44,638,761 Land improvements, net of $2,130,298 accumulated depreciation 2,265,770 Buildings and improvements, net of $23,320,428 accumulated depreciation 52,685,528 Equipment and vehicles, net of $22,885,666 accumulated depreciation 8,350,735 Intangible, net of $2,555,987 of accumulated amortization 1,647,279 Total capital assets 135,070,288 Deferred charges are not financial resources and, therefore, are not reported in the funds: 1,131,855 Prepaid expenses and the pension asset are not available resources and, therefore, are not reported in the funds: Prepaid expenses 31,642 Pension asset 6,808,845 Internal service funds are used by the County to charge the cost of insurance, building services, administrative services, finance, legal, personnel and information technology to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Internal service fund net position are: 12,476,347 Some of the County's receivables will be collected after year-end, but are not available soon enough to pay for the current period's expenditures and, therefore, are reported as deferred revenues in the funds. 6,693,652 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. Balances at June 30, 2014, are: Accrued interest on bonds and notes payable (197,717) Bonds and notes payable (56,048,152) Net OPEB obligation (14,890,839) Compensated leave (7,504,497) Unamortized premium and discount on bonds (848,154) Noncurrent liabilities (79,291,643) Net position of governmental activities $177,292,477 See Notes to Financial Statements 31 Deschutes County Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 See Notes to Financial Statements (continued) 32 Countywide Law Rural Law Enforcement Enforcement General Fund Sheriff District District REVENUES Taxes - property $ 23,379,543 $ - $ 17,199,240 $ 8,235,345 Taxes - other - - - - Licenses and permits 33,125 - - - Fines, forfeitures and penalties 155 - 365,597 171,967 Special assessments - - - - Investment earnings 291,026 - 56,070 30,867 Rents 498,375 - - - Intergovernmental 3,874,215 33,096,040 2,693,192 4,033,345 Charges for services 1,481,836 - 242,072 23,354 Contributions and donations 8,438 - 38,361 12,030 Loan repayments 374,460 - - - Other 31,935 - 4,091 13,035 Total revenues 29,973,107 33,096,040 20,598,622 12,519,944 EXPENDITURES Current General government 13,377,570 - - - Public safety 5,923,273 32,486,588 20,897,324 12,398,716 County roads - - - - Health and welfare 292,672 - - - Education - - - - Debt service Principal payments - - - - Interest 17,035 - - - Trustee fees - - - - Debt issuance costs - - - - Capital outlay 541,609 364,700 - - Total expenditures 20,152,159 32,851,288 20,897,324 12,398,716 Excess (deficiency) of revenues over expenditures 9,820,948 244,752 (298,702) 121,227 OTHER FINANCING SOURCES (USES) Transfers in 439,080 - - - Transfers out (9,918,136) (244,752) - - Full faith & credit bonds issued - - - - Premium on full faith & credit bonds issued - - - - Total other financing sources ( uses) (9,479,056) (244,752) - - Net change in fund balances 341,892 - (298,702) 121,227 Fund balance - Beginning of Year 15,339,705 - 7,880,127 4,365,389 Fund balances - End of Year $ 15,681,597 $ - $ 7,581,425 $ 4,486,616 See Notes to Financial Statements (continued) 32 Deschutes County Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 EXPENDITURES Deschutes Jail Project Current County 9-1-1 (Capital Behavioral General government Road Co Sery Dist Project Fund) Health REVENUES - 6,417,138 - - Taxes - property $ - $ 6,450,574 $ - $ - Taxes - other - - - - Licenses and permits - - - 136,413 Fines, forfeitures and penalties - - - - Special assessments 11,020 - - - Investment earnings 61,541 84,073 35,582 22,646 Rents - - - 16,000 Intergovernmental 15,523,135 918,803 - 9,085,341 Charges for services 1,227,418 402,809 - 8,648,768 Contributions and donations - - - 34,509 Loan repayments - - - - Other 15,132 - - - Total revenues 16,838,245 7,856,259 35,582 17,943,677 EXPENDITURES Current General government - - - - Public safety - 6,417,138 - - County roads 13,235,436 - - - Health and welfare - - - 19,154,610 Education - - - - Debt service Principal payments - - - - Interest - - - - Trustee fees - - - - Debt issuance costs - - 219,610 - Capital outlay 780,503 66,498 9,238,589 - Total expenditures 14,015,940 6,483,636 9,458,200 19,154,610 Excess (deficiency) of revenues over expenditures 2,822,306 1,372,624 (9,422,618) (1,210,933) OTHER FINANCING SOURCES (USES) Transfers in 282,148 - 1,065,121 1,670,895 Transfers out - - - (204,900) Full faith & credit bonds issued - - 8,405,000 - Premium on full faith & credit bonds issued - - 218,092 - Total other financing sources ( uses) 282,148 - 9,688,213 1,465,995 Net change in fund balances 3,104,454 1,372,624 265,595 255,062 Fund balance - Beginning of Year 9,044,636 12,747,709 (2,057,525) 2,670,423 Fund balances - End of Year $ 12,149,090 $ 14,120,332 $ (1,791,930) $ 2,925,485 See Notes to Financial Statements (continued) 33 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Special assessments Investment earnings Rents Intergovernmental Charges for services Contributions and donations Loan repayments Other Total revenues EXPENDITURES Current General government Public safety County roads Health and welfare Education Debt service Principal payments Interest Trustee fees Debt issuance costs Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Full faith & credit bonds issued Premium on full faith & credit bonds issued Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of Year Fund balances - End of Year Deschutes County Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 Other Governmental Funds $ 7,552,665 4,340,159 1,115,687 1,026,007 114,979 277,501 1,242,583 26,240,094 9,111,470 42,017 14,973 92,374 Total Governmental Funds $ 62,817,367 4,340,159 1,285,225 1,563,725 125,999 859,306 1,756,958 95,464,165 21,137,727 135,354 389,433 156,567 51,170,508 190,031,985 10,808,213 9,786,987 870,148 20,223,795 685,916 5,387,017 2,421,394 27,810 1,571,616 51,782,894 24,185,783 87,910,026 14,105,5 84 39,671,077 685,916 5,387,017 2,438,429 27,810 219,610 12,563,515 187,194,767 (612,386) 2,837,218 7,775,859 11,233,103 (1,463,673) (11,831,461) 150,000 8,555,000 - 218,092 6,462,186 8,174,734 5,849,800 11,011,952 33,566,793 83,557,257 $ 39,416,593 $ 94,569,209 See Notes to Financial Statements 34 Deschutes County Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2014 Net change in fund balances - total governmental funds $ 11,011,952 Financial resources provided that are not revenues Repayments from borrowers (515,432) Proceeds from debt issuance (8,773,092) (9,288,524) Financial resources used that are not expenses Repayments on long-term debt 5,387,678 Acquisition of capital assets 14,006,056 19,393,734 Other adjustments: non-cash revenues and expenses and changes in accruals and deferrals Depreciation and amortization expense (8,411,056) Amortization of pension asset (486,346) Amortization of deferred debt refunding cost (155,448) Amortization of bond premium / (discount), net 72,969 Land sale in exchange for long-term note 108,800 Increase in interest receivable 49,200 Increase in prepaid expenses 24,852 Increase in interest payable (24,680) Decrease in deferred property taxes (470,908) Increase in net OPEB obligation (2,745,150) Increase in compensated leave (158,845) (12,196,613) Internal service funds 1,295,155 Total Adjustments - year ended June 30, 2014 (796,249) Change in net position of governmental activities - year ended June 30, 2014 $ 10,215,702 See Notes to Financial Statements 35 ASSETS Current assets Cash and cash equivalents Investments, plus accrued interest Accounts receivable Taxes receivable Due from other funds Prepaid expenses Total current assets Noncurrent assets Capital assets Capital assets not being depreciated Land Construction in progress Capital assets net of accumulated depreciation Land improvements Buildings and improvements Equipment and vehicles Intangible Total capital assets Total assets Deschutes County Proprietary Funds Statement of Net Position June 30, 2014 Enterprise Funds Internal Fair & Expo RV Park Service Solid Waste Center (nonmajor) Total Funds $ 2,200,737 $ 224,799 $ 23,652 $ 2,449,188 $ 7,565,743 3,308,891 338,409 34,101 3,681,400 11,389,351 542,261 46,246 - 588,508 329,990 - 144,207 - 144,207 - 2,676,483 - - 2,676,483 - - 143,849 - 143,849 7,000 8,728,372 897,510 57,753 9,683,635 19,292,084 1,791,352 132,685 - 1,924,037 1,022,748 - - 1,022,748 12,321,525 5,558,295 2,064,333 19,944,153 34,724 8,309,756 15,437,092 783,689 24,530,538 - 2,201,993 326,487 2,111 2,530,591 255,151 35,269 - - 35,269 - 25,682,643 21,454,560 2,850,133 49,987,335 289,875 34,411,014 22,352,070 2,907,886 59,670,970 19,581,959 DEFERRED OUTFLOW OF RESOURCES Deferred charge on refunding 249,647 170,782 - 420,428 Total deferred outlow of resources 249,647 170,782 - 420,428 LIABILITIES Current liabilities Accounts payable 346,600 38,348 20,962 405,910 634,661 Accrued interest 32,184 25,939 7,268 65,390 - Unavailable revenues - 267,224 - 267,224 4,181 Current portion of noncurrent liabilities 694,544 2,562,631 156,495 3,413,670 3,375,341 Total current liabilities 1,073,328 2,894,142 184,724 4,152,194 4,014,183 Noncurrent liabilities Compensated leave Net OPEB obligation Bonds and notes payable (net of unamortized premiums and discounts) Accrued claims payable Accrued landfill closure and postclosure costs Less current portion of non-current liabilities Total noncurrent liabilities Total liabilities NET POSITION Net investment in capital assets Unrestricted Total net position 169,641 128,281 387,010 184,290 297,922 904,613 571,300 1,367,250 10,969,756 8,795,672 2,225,313 21,990,740 - - - - 4,194,907 9,747,984 - - 9,747,984 - (694,544) (2,562,631) (156,495) (3,413,670) (3,375,341) 20,579,847 6,545,611 2,068,817 29,194,276 3,091,428 21,653,175 9,439,753 2,253,542 33,346,470 7,105,611 14,712,887 12,658,888 624,821 27,996,595 289,875 (1,705,401) 424,210 29,524 (1,251,667) 12,186,472 $13,007,486 $13,083,098 $ 654,344 $26,744,928 $12,476,348 See Notes to Financial Statements 36 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure Deschutes County Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2014 care costs Enterprise Funds - - Depreciation Fair & Expo RV Park 129,121 Solid Waste Center (nonmajor) Total $ 7,330,977 $ 1,783,377 $ 217,036 $ 9,331,390 33,345 - - 33,345 7,364,322 1,783,377 217,036 9,364,735 - 227,253 1,857,303 1,027,334 - 2,884,637 3,263,243 1,408,638 136,565 4,808,446 care costs (1,302,837) - - Depreciation 2,105,673 724,847 129,121 Total operating expenses 5,923,382 3,160,819 265,686 Operating income (loss) 1,440,940 (1,377,442) (48,650) NONOPERATING REVENUES (EXPENSES) Grants - 227,253 - Property taxes - 2,086,179 - Investment earnings 47,769 4,686 157 Interest expense (403,646) (207,645) (90,066) Gain (Loss) on sale of capital assets - - - Total nonoperating revenues (expenses) (355,877) 2,110,473 (89,909) Income (loss) before transfers in and out 1,085,063 OTHER FINANCING SOURCES (USES) Transfers in - Transfers out (282,148) Change in net position 802,915 Net position - beginning of year, (previously reported) Prior Period Adjustment: Write-off bond issuance costs, in accordance with GASB #65 Net position - beginning of year (as restated) Net position - end of year 12,395,507 733,031 (138,559) 642,086 1,375,117 11,777,968 (1,302,837) 2,959,641 9,349,887 14,848 227,253 2,086,179 52,612 (701,357) Internal $ 30,300,749 8,128,074 20,949,198 95,499 29,172,770 1,127,978 108,758 1,664,687 108,758 1,679,535 1,236,736 180,000 822,086 106,000 - (282,148) (47,580) 41,441 2,219,473 1,295,156 652,639 24,826,113 11,181,192 (190,935) (69,987) (39,736) (300,658) - 12,204,571 11,707,981 612,903 24,525,455 11,181,192 $ 13,007,486 $ 13,083,098 $ 654,344 $ 26,744,929 $ 12,476,348 See Notes to Financial Statements 37 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net cash used by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest Net cash used by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - Beginning of Year (418,132) (176,289) - (594,422) (528,312) Deschutes County (151,205) (2,897,810) (401,845) (246,081) (90,560) (738,486) Proprietary Funds Statement of Cash Flows Year Ended June 30, 2014 Enterprise Funds Fair & Expo RV Park Internal Solid Waste Center (nonmajor) Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 7,218,613 $ 1,744,359 $ 216,473 $ 9,179,446 $ 30,127,143 Payments to employees (1,777,663) (1,027,925) - (2,805,589) (7,914,525) Payments to suppliers (3,162,718) (1,404,264) (115,213) (4,682,195) (21,442,894) Net cash provided (used) by operating activities 2,278,232 (687,830) 101,260 1,691,662 769,724 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - 2,053,644 - 2,053,644 - Grants - 227,253 - 227,253 - Interfund loan repayments 1,206,125 - - 1,206,125 - Transfers in - 642,086 180,000 822,086 106,000 Transfers out (282,148) - - (282,148) (47,580) Net cash provided by noncapital financing activities 923,977 2,922,982 180,000 4,026,959 58,420 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net cash used by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest Net cash used by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - Beginning of Year (418,132) (176,289) - (594,422) (528,312) (2,218,293) (151,205) (2,897,810) (401,845) (246,081) (90,560) (738,486) (94,921) (1,348,289) (2,640,663) (241,765) (4,230,718) (94,921) (2,762,040) (194,980) (31,447) (2,988,467) (8,674,968) 22,354 4,604 46.57 27,004 87,703 (2,739,686) (190,376) (31,401) (2,961,463) (8,587,265) (885,766) (595,887) 8,094 (1,473,559) (7,854,042) 3,086,504 820,686 15,558 3,922,748 15,419,786 Cash and cash equivalents - End of Year $ 2,200,737 $ 224,799 $ 23,652 $ 2,449,188 $ 7,565,743 See Notes to Financial Statements 38 Deschutes County Proprietary Funds Statement of Cash Flows Year Ended June 30, 2014 Enterprise Funds Fair & Expo RV Park Internal Solid Waste Center (nonmajor) Total Service Funds Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ 1,440,940 $ (1,377,442) $ (48,650) $ 14,848 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 2,105,673 724,847 129,121 2,959,641 Loss on write off of capital asset 2,025 - - 2,025 Change in assets and liabilities Receivables, net (145,710) (37,616) - (183,326) Prepaid expenses - 2,703 11,309 14,012 Accounts payables and other liabilities (1,124,697) (321) 9,480 (1,115,538) Net cash provided (used) by operating activities $ 2,278,232 $ (687,830) $ 101,260 $ 1,691,662 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 1,826 $ 326 $ 14 $ 2,167 $ 1,127,978 95,499 (175,072) 36,252 (314,933) $ 769,724 $ 7,614 See Notes to Financial Statements 39 Deschutes County Fiduciary Funds Statement Fiduciary Assets and Liabilities — Agency Funds June 30, 2014 Agency Fund ASSETS Cash and cash equivalents $ 4,646,494 Investments, at fair value; plus accrued interest 6,908,674 Accounts receivable 219,290 Total assets $ 11,774,458 LIABILITIES Accounts payable $ 656,812 Due to other governments 1,001,911 Due to others 10,115,735 Total liabilities $ 11,774,458 See Notes Financial Statements 40 Deschutes County Notes to Financial Statements June 30, 2014 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 eight (8) component units, entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the County's operations. Following is a brief description of each blended component unit included within the reporting entity. The Deschutes County Board of County Commissioners is the governing body for each component unit and financial accountability for each component unit is the responsibility of the County. Countywide Law Enforcement District (District #1) — The District contracts with Deschutes County for law enforcement services that are provided to all county residents. Rural Law Enforcement District (District #2) — The District contracts with Deschutes County for patrol services in those portions of Deschutes County not serviced by city or special district law enforcement departments. Deschutes County 9-1-1 Service District — Operates the County 9-1-1 call center. Deschutes County Extension and 4-H Service District — Furnishes support staff and a program coordinator for Oregon State University Extension Service. Sunriver Service District — Provides police and fire services to Sunriver, Oregon. Black Butte Ranch Service District — Provides police services to Black Butte Ranch, Oregon. Bend Library County Service District and Sunriver Library County Service District — Each library county service district was established for the purpose of constructing a library and repaying the general obligation bonds issued to finance the cost of construction. The component units, described above, have been included in these financial statements. Component units' 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 any administrative or financial control. These districts are autonomous Oregon municipal corporations and are not considered component units of Deschutes County. 41 Deschutes County Notes to Financial Statements June 30, 2014 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. 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 properly 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 as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized in the year for which they are levied. Nonexchange 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. Grants and similar items are recognized as revenue if all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the fiscal year or soon enough thereafter 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, 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 capital leases are reported as other financing sources. 42 Deschutes County Notes to Financial Statements June 30, 2014 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 agency funds, have no measurement focus, but utilize the accrual basis of accounting, for purposes of asset and liability recognition. 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, liabilities, revenues and expenditures. The County also maintains certain additional sub -funds for its own specific management needs. These sub -funds are consolidated into the appropriate fund for financial statement purposes as required by accounting principles generally accepted in the United States of America. Major Funds Governmental Funds -The County reports the following major governmental funds: General Fund -The financial resources of the general government are accounted for in the General Fund and in sub -funds of the General Fund, except those that are accounted for in another fund. The General Fund's primary revenue sources are property taxes, Federal and State of Oregon payments and fees for services. The major expenditure category is general government services. Sheriff's Office -The payments received pursuant to intergovernmental agreements with the Countywide Law Enforcement District and Rural Law Enforcement District are accounted for in the Deschutes County Sheriff's Fund. Activities of the Sheriff's Office include administration, corrections, patrol, investigations, records, search and rescue activities, and court security. Countywide Law Enforcement District (District #1) -All resources, including property taxes, arising from countywide law enforcement activities are accounted for in this fund. The expenditures are limited to the payment made to Deschutes County, pursuant to an intergovernmental agreement, for countywide law enforcement services. Rural Law Enforcement District (District #2) - All resources, including property taxes, arising from rural law enforcement activities are accounted for in this fund. The expenditures are limited to the payment made to Deschutes County, pursuant to an intergovernmental agreement for patrol services in those portions of Deschutes County not served by city or special service district law enforcement departments. Road - The financial resources, primarily motor vehicle taxes received from the State of Oregon and Federal Forest Receipts, 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. Deschutes County 9-1-1 County Service District -All resources, including property taxes, arising from the 9-1- 1 activities, the County's emergency call center, are accounted for in this fund. 43 Deschutes County Notes to Financial Statements June 30, 2014 Jail Project (a Capital Project Fund) - The construction costs incurred for the remodel and expansion of the County's adult jail, are accounted for in this fund. Resources for the project were provided by proceeds of a full faith and credit bond issue, inter -fund borrowings and transfers. Behavioral Health - The financial resources, primarily fees for services and grants from the State of Oregon and federal government are used to provide mental health services and counseling. Enterprise Funds - The County operates three enterprise activities, two of which have been determined to be major. Solid Waste accounts for the operations of the County's sanitary landfill and transfer station sites. Fair & Expo Center accounts for the operations of the County's Fair & Expo Center, including the annual county fair and the collection of taxes to pay the debt service on the general obligation bonds which were issued to finance the construction of the fairgrounds. Additionally, the County reports the following fund types: Internal service funds account for building, administrative, county commissioner, finance, legal, personnel, information technology and insurance services provided to other County departments on a cost reimbursement basis. Agency funds are used for tracking 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 agent activities. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements, except as necessary to show the total cost of a program. 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, including special assessments. General revenues include all taxes and investment earnings. Operating revenues and expenses are reported separately from non-operating items in the Proprietary Funds. Operating revenues and expenses generally result from providing services in connection with a proprietary fund's principal on-going operations. The principal operating revenues of the RV Park, Solid Waste and the Fair & Expo Center are payments received from third parties for services. Operating expenses for the enterprise funds and internal service funds include the cost of providing services, administrative expenses and depreciation 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 on the modified accrual basis for all funds. Except for the Fiduciary Funds, all of which are agency funds that account for "pass-through" transactions, the County adopts annual budgets for each of its funds, and sub -funds as determined appropriate, as required by state law. Deschutes County Notes to Financial Statements June 30, 2014 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: personnel services, materials and services, debt service, capital outlay and transfers out. The County's published budget contains more specific detailed information for the above mentioned expenditure categories. Unexpected additional resources may be added to the budget 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 and Net Position/Fund Balance 1. Cash and cash equivalents and investments 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 substantially all funds, including the agency 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, 2014, 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 uncollectibles. Notes receivable 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. Inventory and prepaid expenses Inventories are valued at cost using the first in/first out (FIFO) method. The only material inventories of the County are accounted for in the Road Fund. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items. 4. 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, if constructed. 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) 45 Deschutes County Notes to Financial Statements June 30, 2014 include all such items acquired or constructed in fiscal years ending after June 30, 1980. Historical cost was estimated by backtrending (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 normal repairs, maintenance and remodel that do not add to the value of the asset or materially extend asset lives are not capitalized. Donated capital assets are recorded at their fair value at the date of donation. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 30-60 Building Improvements 10-15 Land Improvements 10-30 Equipment and Vehicles 3-20 Infrastructure 20-50 Intangibles 5. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government -wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources: property taxes, special assessments, loans, and contracts of sale. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 6. 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, family emergency and compensatory time) and sick leave. Except in the two cases as noted below, no liability for unpaid accumulated sick leave is recorded because the County does not pay sick leave when employees separate from service with the County. Exceptions to non-payment of sick leave are: 1) Non -represented employees receive one-half of any sick leave earned 2) Employees who are members of the Public Works union receive one-half of any sick leave upon separation, following at least five years of service. A liability for the vested portion of vacation, sick leave and time management is reported in the proprietary statement of net position and the government -wide statement of net position. M Deschutes County Notes to Financial Statements June 30, 2014 During Fiscal Year 2014, $6.9 million was paid in compensated leave — $2 million from Sheriff's Office, $852,000 from Behavioral Health, $524,000 from Public Health, $695,000 from General Fund, $329,000 from Road Department, $381,000 from Deschutes County 911, $372,000 from Juvenile Community Justice, $219,000 from Community Development, $588,000 from Internal Service Funds, $225,000 from enterprise fund and the remaining $715,000 from other special revenue funds. 7. Net other post -employment benefits obligation (Net OPEB Obligation) The net OPEB obligation is recognized as a long-term liability in the proprietary statement of net position and in the government -wide statement of net position. The liability reflects the present value of expected future payments. The net other post -employment benefits liability and expenditures in the governmental fund financial statements are limited to amounts that become due and payable as of the end of the fiscal year. 8. 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. 9. 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 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). Committed fund balance — amounts that can be used only for specific purposes because of a resolution approved by the County's highest level of decision-making authority, the Board of County Commissioners. Such constraint remains legally binding unless removed in the same manner. Assigned fund balance — amounts that are constrained by the County's intent to be used for specific purposes, but that do not meet the criteria to be classified as restricted or committed. Intent is stipulated by the Board of County Commissioners or the department head with budgetary responsibility for such fund. This policy is established by the Financial Policies approved by the Board of County Commissioners August 22, 2011. Unassigned fund balance — this is 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. 47 Deschutes County Notes to Financial Statements June 30, 2014 The County reduces restricted amounts, if any, first when expenditures are incurred for purposes for which restricted and unrestricted (committed, assigned or unassigned) amounts are available. The County reduces committed amounts first, followed by assigned amounts then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. Note 2 - Stewardship, Compliance and Accountability A. Budgetary Information On an annual basis, County department personnel submit requested budgets for each fund for which they are responsible. Requested budgets, which include estimated revenues and appropriations of the estimated revenues, are submitted to the Budget Officer, who is appointed by the Board of County Commissioners. The Budget Officer then prepares the proposed budget, by fund, department, program, category and line item. The proposed budget includes information on the prior two years, the current year and estimated resources and requested appropriations for the ensuing year. The proposed budget is presented by the Budget Officer to the Budget Committee. 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 terminate June 30 of the year of appropriation. Encumbrances are not reported in the financial statements. B. Funds with Negative Fund Balances / Negative Net Position Liabilities exceed assets in one of the County's governmental funds. Jail Project (Capital Project Fund) — Fund Balance ($1,792,000). The costs incurred for a proposed expansion of the County's adult jail were financed, in part, with an interfund loan from the County's Solid Waste Landfill Closure Fund. The County will use resources from the General Fund to repay this inter -fund loan. Liabilities exceed assets in several of the Internal Service Funds. Building Services — ($70,000), Board of County Commissioners — ($25,000) and Legal — ($99,000). This is due to the recognition of the noncurrent OPEB liability. At such time such postretirement benefits need to be paid, the internal service fund charges to the operating departments will be increased accordingly. Deschutes County Notes to Financial Statements June 30, 2014 Note 3 - Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial Credit Risk. Custodial credit risk is the risk that in the event of a bank failure, the County's deposits may not be returned to it. State statutes require that all bank deposits in excess of the FDIC or FSLIC insurance amounts be collateralized through the Oregon State Treasurer's Public Funds Collateralization Program. This program provides a structure for specified depositories to participate in a shared liability collateral pool. Securities pledged by individual institutions may range from 10% to 110% of public fund deposits depending on the financial institution's level of capitalization as determined by its federal regulatory authority. The securities pledged are designated as subject to the Pledge Agreement between the depository bank, custodian bank and Office of the State Treasurer (OST) and are held for the benefit of OST on behalf of the public depositors. The County's funds were held by financial institutions that participated in the State Treasurer's program and were in compliance with statutory requirements. The County has bank balances at June 30, 2014 as follows: Insured (FDIC) $ 625,051 Collateralized by securities held by the pledging financial institution in the financial institution's name Total Carrying value 8,799,165 $ 9,424,216 $ 6.086,394 Deschutes County Notes to Financial Statements June 30, 2014 Investments As of June 30, 2014, the County had the following investments and maturities: Weighted Average Investment Type Fair Value Maturity (Days) Federal Agency Securities $ 41,058,898 980 Corporate notes 29,077,396 661 Municipal bonds 3,923,240 823 Certificates of deposit 5,160,000 261 Total fair value 79,219,534 Accrued interest 285,104 Investments, at fair value; plus accrued interest 79,504,638 Local government investment pool 50,965,751 1 Money market 3,626,116 1 $ 134,096,505 Portfolio weighted average maturity 479 Deschutes County - Statement of Net Position $ 72,595,964 Fiduciary Funds - Statement of Fiduciary Assets and Liabilities 6,908,674 $ 79,504,638 Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the County investment policy requires that the maximum investment portfolio average maturity be two years. The investment in the State of Oregon Local Government Investment Pool is included in the amount reported on the Statement of Net Position as cash and cash equivalents. The investment policy requires that at least 10% of the portfolio matures in 30 days, 25% matures in under one year and 100% matures in less than five years. 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. These requirements limit investments in commercial paper and corporate bonds to 25% of the total portfolio and 5% in any one corporation, subsidiary or affiliate. Commercial paper and corporate bonds must also be rated at least Al/P1/F1 or A/A/A respectively by at least two nationally recognized statistical rating organizations. As of June 30, 2014, the County's investments in corporate bonds were rated A to AAA by Moody's Investors Service and Al to Aaa by Standard and Poor's. 50 Deschutes County Notes to Financial Statements June 30, 2014 Custodial Credit Risk Custodial credit risk is the risk that, in the event of the failure of the counterparty to a transaction, the government will not be able to recover the value of an investment or collateral securities in the possession of an outside party. The County's investment policy requires that the custodian provide annual financial statements, provide proof of its employees to act in this capacity and subject itself to the County's annual evaluation of the firm's creditworthiness. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The County's investment policy provides that the maximum that may be invested in any one issuer, as a percentage of total investments, is 100% for US Treasury, 100% for US Government agencies and 33% in any single government sponsored enterprise, $45,642,885 in the State of Oregon Investment Pool (the maximum imposed by state statute), 50% in Certificates of Deposit, 25% for Bankers' Acceptances, 25% for Commercial paper and Corporate notes and 5% in any one corporation, subsidiaries or affiliates, 25% for State and Local Government Securities. On June 30, 2014, 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. 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, 2014 as follows: Included in the following captions: Statement of Net Position Total cash and cash equivalents Total investments, at fair value; plus accrued interest Statement of Fiduciary Assets and Liabilities - Agency Funds Cash and cash equivalents Investments, at fair value; plus accrued interest Total $ 52,405,651 72,595,964 4,646,494 6,908,674 $ 136,556,783 51 Deschutes County Notes to Financial Statements June 30, 2014 B. Receivables Receivables as of year-end for the major funds and the nonmajor and internal service funds, in the aggregate, including the applicable allowances for uncollectible accounts are as follows: 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 zero to 4.5%. Sales of real property are often financed by the County and these interest-bearing notes are amortized over periods ranging from ten to twenty years. Interest rates are fixed at the time of the initial transaction at then prevailing rates. At June 30, 2014, $2,514,544 is due on contracts from sales of real property and $1,771,770 is 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. 52 Property Transient Room Total Taxes Notes and Taxes Taxes Receivable Accounts Contracts Assessments Total General Fund $ 878,831 $ - $ 878,831 $ 263,293 $ 3,367,322 $ - $ 4,509,446 Sheriff - - - 253 - - 253 Countywide Law Enforcement 613,370 - 613,370 153,592 - - 766,962 Rural Law Enforcement 298,221 - 298,221 189,512 - - 487,732 Road - - - 1,019,100 - 484,483 1,503,583 Deschutes County 9-1-1 238,504 - 238,504 214,871 - - 453,375 Behavioral Health - - - 437,227 - 437,227 Solid Waste - - - 542,261 - 542,261 Fair & Expo Center 144,207 - 144,207 46,246 - 190,454 Nonmajor and Internal Service 199,850 483,801 683,651 2,191,137 918,992 - 3,793,780 Total $ 2,372,983 $ 483,801 $ 2,856,784 $ 5,057,493 $ 4,286,314 $ 484,483 $ 12,685,074 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 zero to 4.5%. Sales of real property are often financed by the County and these interest-bearing notes are amortized over periods ranging from ten to twenty years. Interest rates are fixed at the time of the initial transaction at then prevailing rates. At June 30, 2014, $2,514,544 is due on contracts from sales of real property and $1,771,770 is 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. 52 Deschutes County Notes to Financial Statements June 30, 2014 C. Deferred Inflow of Resources and Unearned Revenue Unavailable revenues are reported as deferred inflows of resources on the governmental funds balance sheet. These are revenues which are earned or are collectible loan repayments, but are not available to liquidate liabilities of the current period. At the end of the current fiscal year, these balances are: Deferred Inflows of Resources Total Property Special Contracts Deferred Taxes Assessments Loans of Sale Inflows General Fund $ 773,069 $ - $ 858,725 $2,468,270 $ 4,100,064 Countywide Law Enforcement Rural Law Enforcement Road Deschutes County 9-1-1 Behavioral Health Nonmaj or funds Total Deferred Inflow of Resources and Unearned Revenues D. Pension Asset 539,806 - 262,442 - - 484,483 - - 539,806 - - 262,442 - - 484,483 Unearned Revenue $ 2,090,541 27,968 120 Total Deferred Inflow of Resources and Unearned $ 6,190,605 567,773 262,442 484,603 210,865 - - - 210,865 - 210,865 - - - - - 1,071,002 1,071,002 177,002 - 903,045 15,947 1,095,993 585,138 1,681,132 $1,963,183 $ 484,483 $1,761,770 $2,484,217 $ 6,693,652 $ 3,774,769 $ 10,468,422 The County's pension asset is amortized on the straight-line basis over the period benefitted. Pension Asset Series 2002 Series 2004 Total Pension Asset Governmental Activities $ 2,864,793 3,944,052 $ 6,808,845 Business -Type Activities Total $ 2,864,793 3,944,052 $ 6,808,845 53 Deschutes County Notes to Financial Statements June 30, 2014 E. Deferred Outflow of Resources The County's deferred charge of refunded debt is amortized on the straight-line basis over the period benefitted. Deferred Charge on Refunded Debt G.O. Bonds (Fairgrounds) CDD Building (1996 COPS) HHS/BJCC (1998 COPS ) County Buildings (FF&C 2003) Total Deferred Charge on Refunded Debt Total deferred outflow of resources Governmental Business -Type Activities Activities Total $ - $ 165,511 $ 165,511 13,032 - 13,032 74,504 - 74,504 1,044,319 254,917 1,299,236 1,131,855 420,428 1,552,283 $ 1,131,855 $ 420,428 $ 1,552,283 54 F. Capital Assets Capital asset activity for the year ended June 30, 2014 was as follows: Governmental Activities Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Deschutes County Notes to Financial Statements June 30, 2014 Beginning Ending Balance Increases Decreases Balance $ 13,497,072 $ 90,000 $ - $ 13,587,072 3,124,474 10,233,093 (1,462,425) 11,895,143 16,621,546 10,323,093 (1,462,425) 25,482,215 Buildings and improvements 74,555,238 Land improvements 4,592,044 Equipment 22,191,166 Vehicles 9,679,689 Infrastructure 91,483,503 Intangible assets 4,147,858 Total capital assets, being depreciated 206,649,498 Less accumulated depreciation for: Buildings and improvements Land improvements Equipment Vehicles Infrastructure Intangible assets Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net (21,370,253) (2,128,637) (16,883,335) (5,481,764) (45,012,093) (2,629,220) (93,505,302) 1,450,718 895,443 593,115 1,645,351 655,682 5,240,308 (1,950,175) (162,914) (1,850,717) (537,707) (3,478,001) (527,041) (8,506,555) 113,144,196 (3,266,247) $ 129,765,742 (231,246) (198,765) (430,011) 231,246 198,765 430,011 76,005,956 4,592,044 22,855,363 10,074,039 93,128,854 4,803,540 211,459,795 (23,320,428) (2,291,551) (18,502,806) (5,820,706) (48,490,094) (3,156,262) (101,581,846) 109,877,949 $ 7,056,846 $ (1,462,425) $ 135,360,163 55 Business -type activities: Capital assets, not being depreciated Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Beginning Balance Increases Deschutes County Notes to Financial Statements June 30, 2014 Decreases Ending Balance $ 1,924,037 $ - $ - $ 1,924,037 887,860 136,913 (2,025) 1,022,748 2,811,897 136,913 (2,025) 2,946,785 Buildings and improvements 32,488,388 Land improvements 34,496,133 Equipment 6,673,485 Vehicles 229,000 Intangible assets 87,429 Total capital assets, being depreciated 73,974,435 Less accumulated depreciation for Buildings and improvements Land improvements Equipment Vehicles Intangible assets Total accumulated depreciation Total capital assets, being depreciated, net Business -type activities capital assets, net (7,227,448) (12, 809,164) (4,164,135) (165,461) (34,675) (24,400,883) - 32,488,388 - - 34,496,133 402,974 - 7,076,459 23,666 - 252,666 - - 87,429 426,640 - 74,401,075 (730,404) (1,742,815) (452,061) (16,874) (17,486) (2,959,641) 49,573,552 (2,533,001) (7,957,852) (14,551,979) (4,616,196) (182,335) (52,161) (27,360,523) 47,040,552 $ 52,385,449 $ (2,396,088) $ (2,025) $ 49,987,336 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government General government $ 1,412,392 Public safety 2,696,355 County roads 4,022,104 Health and welfare 280,205 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 95,499 Total depreciation expense - governmental activities $ 8,506,555 56 Deschutes County Notes to Financial Statements June 30, 2014 Business -type activities: Solid waste $ 2,105,673 Fair & Expo center 724,847 RV Park 129,121 Total depreciation expense - business -type activities $ 2,959,641 Operating Leases — County as Lessor of Real Property The County received $1,495,000 in lease rental revenue for the year ended June 30, 2014, and the County expects to receive approximately $4.7 million in lease rental income over the next 5 years under non -cancelable leases which were in effect at June 30, 2014. These leases are cancelable if annual appropriations are not included in the lessee's annual appropriation resolution. The carrying value of real property, leased under non -cancelable operating leases, was $11.4 million as of June 30, 2014, and depreciation expense for Fiscal Year 2014 was $258,000. G. Interfund Activity Interfund Transfers Total $ 439,080 $ 282,148 $ 1,670,895 $ 1,065,121 $ 7,775,859 $ 106,000 $ 180,000 $ 642,086 $ 12,161,189 Interfund transfers are utilized for the following purposes: Certain special revenue funds, the Jail Project Fund, the Fair & Expo Center and Internal Service funds require additional resources transferred from the General Fund for operations; certain debt service funds require transfers from operating funds to meet annual debt service requirements; fees collected at the Solid Waste facility have been designated for road maintenance; and the RV Park requires additional resources from special revenue fund to meet its debt service requirements. 57 rans ers In Major Internal Fair & Behavioral Capital Nonmajor Service RV Expo General Road Health Project Governmental Funds Park Center Total Transfers Out: Governmental Activities General Fund $ - $ - $ 1,377,302 $ 1,065,121 $ 6,990,527 $ 106,000 $ - $ 379,186 $ 9,918,136 Sheriffs Office 244,752 244,752 Behavioral Health 204,900 - - - - 204,900 Road - - - - - - - Nonmajor Governmental 186,600 - 293,593 - 540,580 - 180,000 262,900 1,463,673 Solid Waste - 282,148 - - - - - - 282,148 Internal Service Funds 47,580 - - - - - - - 47,580 Total $ 439,080 $ 282,148 $ 1,670,895 $ 1,065,121 $ 7,775,859 $ 106,000 $ 180,000 $ 642,086 $ 12,161,189 Interfund transfers are utilized for the following purposes: Certain special revenue funds, the Jail Project Fund, the Fair & Expo Center and Internal Service funds require additional resources transferred from the General Fund for operations; certain debt service funds require transfers from operating funds to meet annual debt service requirements; fees collected at the Solid Waste facility have been designated for road maintenance; and the RV Park requires additional resources from special revenue fund to meet its debt service requirements. 57 Deschutes County Notes to Financial Statements June 30, 2014 Interfund Loans Costs, incurred for the design work related to a previously planned expansion of the County's adult jail and loans made to the Humane Society of Redmond, were financed with interfund loans. At June 30, 2014, $2,676,483 is owed to the County's Solid Waste Fund - $2,198,029 from the Jail Project Fund and $478,454 from Humane Society of Redmond Fund, a sub -fund of the General Fund. It is anticipated that the loan to the Humane Society Fund will be repaid with the proceeds from the repayments of the loans made to the Brightside Animal Clinic, formerly known as the Humane Society of Redmond. The loans for the design work of the expansion of the adult jail will be repaid with General Fund resources. Additionally, the Countywide Law Enforcement County Service District advanced resources to the Jail Project Fund for costs related to remodeling the Sheriff's Office. Resources will be available from public safety activities to repay this loan during Fiscal Year 2015. The General Fund loaned $6,219 to the Park Acquisition and Development Fund. The loan to the Park Acquisition and Development Fund was repaid in July 2014. H. Long -Term Obligations Operating Leases — County as Lessee The County leases buildings and office facilities and equipment under non -cancelable operating leases. The total expended for such leases for the year ended June 30, 2014, was approximately $232,000. The future minimum lease payments for these leases are as follow: Fiscal Year Ending June 30, Amount 2015 $ 244,716 2016 201,056 2017 89,311 2018 45,148 2019 11,476 $ 591,707 Notes and Bonds The County has issued General Obligation Bonds, Full Faith & Credit Obligations and Limited Tax Bonds, 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 County also issued special assessment debt to provide funds for the construction of streets in existing residential areas. These bonds will be repaid from amounts levied against the property owners benefited by these improvements. In the event that a deficiency exists because of unpaid or delinquent special assessments at the time a debt service payment is due, the County must provide resources to cover the deficiency until other resources, for example, foreclosure proceeds, are received. Deschutes County Notes to Financial Statements June 30, 2014 General Obligation, 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. General Obligation, Full Faith & Credit Obligation and Limited Tax bonds currently outstanding are as follows: Balance at Purpose Interest Rates June 30,2014 General Obligation and Full Faith & Credit Obligation Bonds: Governmental activities Governmental activities - refunding Business -type activities Business -type activities - refunding Limited Tax Improvement Bonds Governmental activities Notes Governmental activities Business -type activities 2.00-6.85% $ 33,048,658 2.00-4.43% 22,607,886 3.3-4.2% 8,885,514 0.59% 12,332,114 $ 76,874,172 4,75-5.35% $ 242,269 3.00% $ 149,339 5.00% 362,021 $ 511,360 59 Deschutes County Notes to Financial Statements June 30, 2014 Changes in Long -Term Liabilities Changes in long-term obligations for the year ended June 30, 2014, are as follows: Business -tune activities Full faith & credit obligations $ 14,507,057 $ - $ (724,429) $ 13,782,629 Due Within Unamortized prem / (disc) July 1, 2013 Increases Decreases June 30, 2014 One Year Governmental activities 9,590,000 - (2,155,000) 7,435,000 2,305,000 Claims 350,999 467,999 (371,523) 233,999 117,000 Internal service funds $ 4,730,833 $ 14,526,859 $ (15,062,785) $ 4,194,907 $ 2,792,748 Pension obligation bonds 11,026,387 - (227,215) 10,799,172 263,223 Full faith & credit obligations 38,742,942 8,405,000 (2,465,571) 44,682,371 2,530,581 Unamortized prem / (disc) 673,244 218,092 (43,182) 848,154 43,182 General obligation bonds 2,670,000 - (2,495,000) 175,000 85,000 Unamortized premiums 29,787 - (29,787) - - Loans Governmental funds 22,501 150,000 (23,162) 149,339 8,061 Full faith & credit LIDS 419,000 - (176,730) 242,269 242,269 Other post -employment benefit obligations - - - - - Net OPEB obligations Governmental funds 12,145,689 3,266,374 (521,223) 14,890,840 - Internal service funds 1,149,770 168,762 48,718 1,367,250 - Compensated absences Governmental funds 7,345,653 6,161,135 (6,002,291) 7,504,497 6,132,086 Internal service funds 908,543 584,320 (588,250) 904,613 585,705 $ 79,864,349 $ 33,480,542 $ (27,586,478) $ 85,758,412 $ 12,682,856 Business -tune activities Full faith & credit obligations $ 14,507,057 $ - $ (724,429) $ 13,782,629 $ 749,419 Unamortized prem / (disc) 187,350 - (10,262) 177,091 10,262 General obligation bonds 9,590,000 - (2,155,000) 7,435,000 2,305,000 Unamortized premiums 350,999 467,999 (371,523) 233,999 117,000 Net OPEB obligations 477,787 99,094 (5,581) 571,300 - Compensated absences 308,581 214,834 (225,493) 297,922 213,454 Landfill closure and postclosure 11,050,821 - (1,302,837) 9,747,984 - Notes payable 380,403 - (18,381) 362,021 18,535 $ 36,852,998 $ 781,926 $ (4,813,505) $ 32,607,946 $ 3,413,670 Deschutes County Notes to Financial Statements June 30, 2014 Debt Service Requirements Debt service requirements on the County bonds at June 30, 2014, are as follows: I. Fund Balance Constraints 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. Major Special Revenue Funds General Fund LED #1 LED #2 Road DC 9-1-1 Behavioral Other Funds Total Fund Balances: Governmental Activities Business -type Activities Full Faith & Credit LIDS Bonds & Notes Bonds & Notes Fiscal Year Principal Interest Principal Interest Principal Interest 2015 $ 242,270 $ 606 $ 2,886,865 $ 2,352,199 $ 3,072,954 $ 667,340 2016 - - 3,023,644 2,274,828 3,338,995 590,574 2017 - - 3,010,508 2,190,028 3,427,242 496,344 2018 - - 2,998,330 2,112,688 863,388 427,431 2019 - - 2,566,795 2,028,365 895,600 395,033 2020-2024 - - 16,189,632 7,581,654 5,018,634 1,444,293 2025-2029 - - 16,051,413 3,516,731 3,676,533 489,812 2030-2034 - - 7,123,695 1,026,704 1,286,305 82,632 2035-2038 - - 1,955,000 224,775 - - Total $ 242,270 $ 606 $ 55,805,882 $ 23,307,973 $ 21,579,650 $ 4,593,459 I. Fund Balance Constraints 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. Major Special Revenue Funds General Fund LED #1 LED #2 Road DC 9-1-1 Behavioral Other Funds Total Fund Balances: Nonspendable: Inventory $ - $ $ - $ 1,418,998 $ $ $ - $ 1,418,998 Assigned to: Economic - - - - - 10,172,086 10,172,086 stabilization Economic development 114,719 - - 776,258 890,977 Public safety 1,244,810 7,581,425 4,486,616 - 14,120,332 5,878,571 33,311,755 Social services - - - - 2,925,485 14,648,179 17,573,664 General government 5,144,980 - - - - 4,687,188 9,832,167 Debt service - - - - - 488,047 488,047 Technology improvements 549,540 - - - 549,540 Fleet repair & replacement 977,788 - - - 977,788 Road maintenance - - - 10,730,092 - - 2,766,264 13,496,356 Total Assigned 8,031,837 7,581,425 4,486,616 10,730,092 14,120,332 2,925,485 39,416,593 87,292,380 Unassigned: 7,649,760 - - - - - (1,791,930) 5,857,830 Total Fund Balance $ 15,681,597 $ 7,581,425 $ 4,486,616 $ 12,149,090 $ 14,120,332 $ 2,925,485 $ 37,624,663 $ 94,569,208 61 Deschutes County Notes to Financial Statements June 30, 2014 J. Segment Information The County maintains three enterprise funds. The RV Park Fund is used to account for the operations of the County's Recreational Vehicle Park, located in Redmond, Oregon. The Solid Waste Fund is used to account for the operations of the County's landfill at Knott Road and 27th Street and four transfer and recycle stations located throughout the County. The accumulation of resources that will be required for the closure and postclosure costs associated with the sanitary landfill are also accounted for in the Solid Waste Fund. The operations of the County's Fair & Expo Center, including the annual county fair, are accounted for in the Fair & Expo Center Fund. Also accounted for in this fund is activity related to servicing the general obligation bond, originally issued in 1996 (and refunded in 2002 and again in 2012), to finance the construction of the facility and the reserves for future capital needs. In order to maintain a high degree of fiscal management, the operations and the funded reserves are accounted for in sub -funds of Solid Waste and of the Fair & Expo Center. A budget is adopted for each of these sub -funds. A combining schedule of net position, schedule of revenues, expenses and changes in net position and schedule of cash flows is prepared for the sub -funds of Solid Waste and of the Fair & Expo Center. 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, catastrophic workers' compensation claims and stop loss on its medical/dental risks. It self -insures against losses for general liability, workers' compensation, medical and dental benefits, unemployment benefits and other risks. All operations of the County, as well as two county service districts (Deschutes County 9-1-1 and Extension and 4-H), participate in the County's self-insurance program. Neither Black Butte Ranch nor Sunriver Service District participates and Deschutes County 9-1-1 County Service District's participation is limited to unemployment benefits and medical/dental. The third party insurance coverage, obtained by the County service districts not covered by the County's self-insurance program, had no significant reductions in the levels of insurance coverage in the past year. Settled claims have not exceeded insurance coverage in any of the past three fiscal years. The County estimates liability 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 primarily based on individual case estimates for reported claims and through historical data for unreported claims as determined by the County's Risk Management department. Liabilities are based on estimated total cost of settling claims. Liabilities include an amount for claims for that have been incurred but not reported (IBNR). The result of the process to estimate the claims is not an exact amount and accordingly claims are reevaluated periodically to consider the effects of inflation, recent claims settlement trends and other economic and social factors. 62 Deschutes County Notes to Financial Statements June 30, 2014 Payments, from the funds whose activities are covered, are made to the internal service insurance funds, based on the estimated need to pay prior and current claims and to accumulate resources for future losses. Assets exceed liabilities as of June 30, 2014, in the Insurance Fund (all insurance programs other than medical/dental) by $255,846. The net position of the Health Benefits Trust Fund (medical/dental) at June 30, 2014, is $11,037,084 which is 81% of Fiscal Year 2014 claims expense. Changes in the Insurance Funds' claim liabilities are as follows: Claims payable, June 30, 2012 FY 2013 claims expense FY 2013 claims paid Claims payable, June 30, 2013 FY 2014 claims expense FY 2014 claims paid Claims payable, June 30, 2014 B. Contingent liabilities and Commitments Insurance Fund Health Benefits Total $ 3,209,331 $ 1,632,601 $ 4,841,932 1,095,872 14,571,139 15,667,011 1,135,031 14,643,079 15,778,110 3,170,172 1,560,661 4,730,833 857,086 13,669,773 14,526,859 1,222,941 13,839,844 15,062,785 $ 2,804,317 $ 1,390,590 $ 4,194,907 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. As of June 30, 2014, the County had three material commitments outstanding. Project Jail Expansion Sisters Health Clinic Radio Financing Contractor Total Contract Expended through June 30, 2014 Remaining Commitment Kirby Nagelhout $ 9,900,000 $ 8,400,000 $ 1,500,000 CS Contruction $ 676,442 $ 273,243 $ 403,199 Motorola $ 483,231 $ - $ 483,231 63 Deschutes County Notes to Financial Statements June 30, 2014 C. Participation in Public Employees Retirement System The Oregon Public Employees Retirement System (PERS or the System), provides statewide defined benefit and defined contribution plans for eligible employers such as units of state government, political subdivisions, community colleges and school districts. For the County and other eligible employers that have joined the State and Local Government Rate Pool, PERS is a cost-sharing, multiple -employer system. PERS is administered under Oregon Revised Statutes (ORS) Chapter 238, 238A and Internal Revenue Code Section 401(a) by the Public Employees Retirement Board. The Board has the authority under state statutes to amend the Plan's benefits and contribution rates. PERS issues publicly available financial reports that include financial statements and required supplementary information. The reports can be obtained from the Oregon Public Employees Retirement System, PO Box 23700, Tigard, Oregon 97281-3700 or by calling 1-503-598-7377. The Plans offer retirement and disability benefits, post -employment healthcare benefits, annual cost of living increases and death benefits to Plan members and beneficiaries. Benefits differ depending upon entry date. PERS Tier One and Tier Two plans and the Oregon Public Service Retirement Plan (OPSRP) established for employees hired after August 29, 2003, are established by state statute to provide benefits for state and local governments and their employees. The authority to establish and amend the benefit provisions of the Plan rests with the Oregon Legislature. The County funding policies and pension expense include all component units with the exception of Black Butte Ranch Service District and Sunriver Service District. These Districts have separate PERS accounts which are not significant in relation to the County. They are included in their separately issued annual reports. The required employee contribution of 6% is paid by the County. Effective January 1, 2004, this 6% contribution was remitted to the Individual Account Program (IAP) for all eligible employees under the ORS 238A Individual Account Program Plan. The County also contributes the remaining amounts necessary to pay benefits when due. For Fiscal Year 2014, the County's annual pension cost of $8,402,087 was equal to the County's required and actual contributions. The County is required by ORS 238.225 to contribute at an actuarially determined rate. The employer rate adopted by the PERS board based on the December 31, 2011 actuarial valuation for the County for Fiscal Year 2014 was 15.24% for Tier One and Tier Two general service employees. For OPSRP employees, the County remitted contributions based on employee class. OPSRP contribution rates were 11.10% for general services and 13.83% for police and fire employees. These OPSRP rates were adopted based on actuarial information regarding projected costs of the new plan. M Deschutes County Notes to Financial Statements June 30, 2014 The actuarial assumptions in the December 31, 2011, valuation included (a) 8.00% investment rate of return, (b) projected salary increases of 3.75% with additional increases for promotion and longevity that vary by age and service, (c) healthcare cost inflation of 6.90%, grading down to 4.5% in 2029 and (d) certain demographic assumptions. The underlying long-term assumed rate of inflation is 2.75% per year. The actuarial value of PERS assets at fair market value on the valuation date less a reserve equal to a prorate portion of the investment gains (losses) over the four-year period ending on the valuation date. The unfunded actuarial liability as of December 31, 2011, valuation is being amortized on a level percentage of covered payroll on a closed fixed term method, over 20 years, through December 31, 2027. Annual Percentage Fiscal Year Pension of APC Ending Cost (APC) Contributed 6/30/2012 $ 8,298,779 100% 6/30/2013 $ 8,487,345 100% 6/30/2014 $ 8,772,862 100% The County issued Limited Tax bonds in 2002 and 2004, the proceeds of which were used to finance a portion of its estimated unfunded actuarial liability (see Note 3.13 regarding the balance of the pension asset and Note 3.11 regarding the outstanding debt). Amortization of the pension asset for the year ended June 30, 2014, was $486,346. D. Post -Employment Benefits Oregon Public Employees Retirement System — Retirement Health Insurance Account (RHIA) Plan Description As a member of Oregon Public Employees Retirement System (OPERS) the County contributes to the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing multiple -employer defined benefit other postemployment benefit plan administered by OPERS. 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 after January 1, 2004. 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. 65 Deschutes County Notes to Financial Statements June 30, 2014 Funding Policy Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of the plan members and the participating employers were established and may be amended only by the Oregon Legislature. ORS require that an amount equal to $60 or the total monthly cost of Medicare companion health insurance premiums coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established by the employer, and any monthly cost in excess of $60 shall be paid by the eligible retired member in the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost the member must: (1) have eight years or more of qualifying service in PERS at the time of retirement or receive a disability allowance as if the member had eight years or more of creditable service in PERS, (2) receive both Medicare Parts A and B coverage, and (3) enroll in a PERS-sponsored health plan. A surviving spouse or dependent of a deceased PERS retiree who was eligible to receive the subsidy is eligible to receive the subsidy if he or she (1) is receiving a retirement benefit or allowance from PERS or (2) was insured at the time the member died and the member retired before May 1, 1991. Participating public employers are contractually required to contribute to RHIA at a rate assessed each year by OPERS, 0.59% of annual covered payroll for Tier 1/Tier 2 employees, 0.49% for OPSRP employees. The OPERS Board of Trustees sets the employer contribution rate based on the annual required contribution of the employers (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty years. The County's contributions to RHIA which equaled the required contributions each year were included with the payments for the retirement plan described in IV.0 above. Deschutes County Retiree Health Plan Plan Description The Deschutes County Retiree Health Plan is a single employer defined benefit postemployment healthcare plan that provides medical benefits to eligible retired employees of Deschutes County, Deschutes County Extension and 4-H Service District and Deschutes County 911 Service District and their beneficiaries. The plan has two components: the Self -Pay Health Plan which is required by Oregon Revised Statutes 243.303 to provide retirees with group health and dental insurance from the date of retirement to age 65 at the same rate provided to current employees and the Subsidized Health Plan under which the County pays all or part of the health care costs for eligible retirees under several collective bargaining agreements. The criteria to determine whether an employee is eligible include: years of service, employee age, disability due to line of duty and whether the employee has vested in the respective retirement plan. Funding Policy The County funds the benefits on a pay-as-you-go basis. Since the total annual contribution in the current year was less than the Annual Required Contribution, a liability is presented on the County's Statement of Net Position. Deschutes County Notes to Financial Statements June 30, 2014 Annual OPEB Cost and Net OPEB Obligation The County's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the County's annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the County's net OPEB obligation to Deschutes County Retiree Health Plan: June 30, 2014 Annual required contribution $ 4,389,157 Interest on the net OPEB obligation 415,354 Adjustment to ARC (746,436) Annual OPEB expense 4,058,075 Estimated Contributions (1,001,932) Increase in net OPEB obligation 3,056,143 Net OPEB obligation, beginning of year 13,773,246 Net OPEB obligation, end of year $ 16,829,389 The County's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for Fiscal Year 2014 was as follows: 67 Percentage of Fiscal Year Annual Annual OPEB Net OPEB Ending OPEB Cost Contributions Contributed Obligation 6/30/2012 $ 3,040,067 $ 617,532 20.31% $ 10,414,186 6/30/2013 4,182,580 823,520 19.69% 13,773,246 6/30/2014 4,058,075 1,001,932 24.69% 16,829,389 67 Deschutes County Notes to Financial Statements June 30, 2014 Funded Status and Funding Progress. As of June 30, 2014, the most recent actuarial valuation date, the Plan was considered unfunded. The actuarial accrued liability for benefits was $41,321,298, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $41,321,298. Of these amounts, $20,487,199 related to the Subsidized Health Plan and $20,834,099 related to the Self -Pay Health Plan. The covered payroll (annual payroll of active employees covered by the Plan) was $55,105,388, and the ratio of the UAAL to the covered payroll was 74.99%. 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 funded status of the plan and the annual required contributions 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 funding progress, presented as required supplementary information include below, presents trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Assumptions used in calculating the actuarial liabilities associated with the Deschutes County Retiree Health Plan include a 3% investment return; an assumed inflation rate of 2.5%; an insurance premium annual trend rate of 10.0% for Fiscal Year 2014, reducing to 5% over a 10 year period; a retiree health claims annual trend rate of 11.0% for Fiscal Year 2014, reducing to 5.5% over an 11 year period; and retirement rates used by Oregon PERS adjusted for County trends. The unfunded actuarial liability as of June 30, 2014, valuation is being amortized over a 30 year open period. The Entry Age Normal (EAN) Actuarial Cost Method is used to determine the Normal Cost and Actuarial Accrued Liability. 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 normal cost for that active employee. The sum of these individual normal costs is the Plan's Normal Cost for the valuation year. Deschutes County Notes to Financial Statements June 30, 2014 The portion of the actuarial present value of all projected benefits (including benefits for non-active participants) that is not provided for at the valuation date by the actuarial present value of future normal costs is called the Actuarial Accrued Liability. Under this method, the actuarial gains (losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability. The Deschutes County Retiree Health Plan is deemed "unfunded" in accordance with the relevant GASB statements. The table below presents a schedule of funding progress for the most recent actuarial valuations for the County's postretirement health plans. 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 these landfill closure and postclosure care costs is based on the amount of the landfill used each year. It is estimated that the total liability for closure and postclosure is $18,642,179, the current cost of equipment, facilities and services required to close, monitor and maintain the landfill and transfer stations. The closure and postclosure costs are based on engineering estimates, revised and updated in Fiscal Year 2014, of 60% usage of Knott Landfill (7,500,000 cubic yards used of 12,500,000 cubic yards available). Through June 30, 2014, $12,492,305 has been recognized as expense, $2,744,321 has been paid and $9,747,984 is reported as a liability at June 30, 2014. Based on current estimated costs, an additional $6,149,894 will be recognized as closure and postclosure expense through 2029, the date the landfill is currently projected to be filled to capacity. The liability at June 30, 2013 was based on closure cost estimated at $151,100 per acre. The closure cost has been revised to $130,135 per acre. The June 30, 2013 liability would have been $9,563,488, at this cost per acre, instead of $11,050,821. This change in estimate reduced the operating expenses by $1,487,333 in Fiscal Year 2014. The actual cost of closure and postclosure care may be higher or lower due to inflation, changes in technology or changes in regulations. Actuarial Accrued Unfunded UAAL as a Actuarial Liability (Overfunded) Percentage Actuarial Value of (AAL) ALL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b -a) (alb) (c) (b -a/c) July 1, 2008 $ - $ 27,371,450 $ 27,371,450 0.00% $ 46,966,544 58.28% June 30, 2011 - 28,290,503 28,290,503 0.00% 53,294,382 53.08% June 30, 2013 - 38,310,071 38,310,071 0.00% 51,566,646 74.29% 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 these landfill closure and postclosure care costs is based on the amount of the landfill used each year. It is estimated that the total liability for closure and postclosure is $18,642,179, the current cost of equipment, facilities and services required to close, monitor and maintain the landfill and transfer stations. The closure and postclosure costs are based on engineering estimates, revised and updated in Fiscal Year 2014, of 60% usage of Knott Landfill (7,500,000 cubic yards used of 12,500,000 cubic yards available). Through June 30, 2014, $12,492,305 has been recognized as expense, $2,744,321 has been paid and $9,747,984 is reported as a liability at June 30, 2014. Based on current estimated costs, an additional $6,149,894 will be recognized as closure and postclosure expense through 2029, the date the landfill is currently projected to be filled to capacity. The liability at June 30, 2013 was based on closure cost estimated at $151,100 per acre. The closure cost has been revised to $130,135 per acre. The June 30, 2013 liability would have been $9,563,488, at this cost per acre, instead of $11,050,821. This change in estimate reduced the operating expenses by $1,487,333 in Fiscal Year 2014. The actual cost of closure and postclosure care may be higher or lower due to inflation, changes in technology or changes in regulations. Deschutes County Notes to Financial Statements June 30, 2014 For the past several years, the County has designated resources for future closure and postclosure care and it anticipates continuing to do so. The County meets the "Local Government Financial Test" which provides financial assurance as to the County's ability to meet its financial obligations for closure and postclosure. F. Prior Period Adjustment In March 2012, the Governmental Accounting Standards Board (GASB) issued Statement No. 65: Items Previously Reported as Assets and Liabilities. This standard establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This standard is effective for the County during the year ended June 30, 2014 and must be applied retroactively by restating financial statements for all periods presented. The provisions of GASB 65 require that debt issuance costs (deferred financing costs) be recognized as an expense in the period incurred. As a result, beginning net position as of and for the year ended June 30, 2013 has been restated as follows: Net position, Beginning of Year - As Previously Stated Less adjustment to remove deferred bond costs as of June 30, 2013 Net position, Beginning of Year, As Restated G. Fund Structure Governmental Business -type Activities Activities Total $ 167,918,716 $ 24,826,113 $ 192,744,829 (841,940) (300,658) (1,142,598) $ 167,076,776 $ 24,525,455 $ 191,602,231 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, and county clerk. Sub -funds of the General Fund: Economic Development — loan repayment and interest revenues for loans and grants to business and not-for- profit entities. 70 Deschutes County Notes to Financial Statements June 30, 2014 Court Technology Reserve — transfers in and available resources for upgrades to Video Arraignment equipment. Assessment & Taxation Reserve — available resources for the upgrade or replacement of the assessment and taxation system for the County's property tax activities. Bethlehem Inn — available resources expended to purchase and upgrade of a facility for the homeless. Inactivated effective June 30, 2014. Humane Society of Redmond — loan from the County's Solid Waste enterprise fund to provide resources for loans to Brightside Animal Clinic, formerly known as the Humane Society of Redmond. Project Development — proceeds from sale of County lands, lease payments and Transfers In for transfers to debt service funds and acquisition of real property for use by the County. General County Projects — property taxes and inter -fund and third -party rents for general County capital projects and transfers to debt service funds. General Capital Reserve — available resources reserved for building remodel and future major maintenance of County buildings. Property Management Operations — rents for assistance with industrial development and management of County's real property. Inactivated effective June 30, 2014. Community Justice - Juvenile — state grants and fees for response to juvenile delinquency programs within the County. Code Abatement — available resources for enforcement of County solid waste and sanitation codes. Vehicle Maintenance and Replacement — transfers from County funds and departments for vehicle replacement and repair. Sheriff's Office — revenues pursuant to intergovernmental agreements with Countywide and Rural Law Enforcement Districts used for public safety, including the operation of the adult jail. Countywide Law Enforcement District (District #1) — property taxes, charges for services, Federal and State grants for public safety, countywide, including the operation of the adult jail. Sub -fund of Countywide Law Enforcement District: Countywide Law Enforcement District — Capital Reserve — available resources reserved for major capital purchases. Rural Law Enforcement District (District #2) — property taxes, charges for services, Federal and State grants for public safety in rural areas. 71 Deschutes County Notes to Financial Statements June 30, 2014 Sub -fund of Rural Law Enforcement District: Rural Law Enforcement District — Capital Reserve — available resources reserved for major capital purchases. Road — State gas tax apportionment and Federal payments for building and maintaining public roads and highways. Sub -funds of Road: Road Improvement Reserve — fees for future infrastructure requirements. Road Building and Equipment — transfers from Road Fund for future capital asset purchases. Deschutes County 9-1-1 County Service District — property taxes, charges for services and grants for operations of countywide emergency call center. Sub -fund of Deschutes County 9-1-1 County Service District: Deschutes County 9-1-1 County Service District Equipment Reserve — transfer from operating fund for future capital asset requirements. Jail Remodel — bond proceeds, transfers in and inter -fund loans for the expansion of the County's adult jail. Behavioral Health — fees for services, Federal and State grants for mental health services and counseling. Major Funds — Proprietary — Enterprise Solid Waste — fees and charges for services for the operation, maintenance and closure of the County's sanitary landfill and transfer and recycle stations. Fair & Expo Center — fees, inter -fund transfers and property taxes for the operation of a fair and expo center, annual county fair and payments for debt service. Nonmajor Governmental Funds Special Revenue Funds Grant Projects — grants for local programs as designated by the grantor. Inactivated effective June 30, 2014. Justice Court — fines, fees and transfers in for operating a justice court. Industrial Lands Proceeds — proceeds from land sales and lease payments for industrial development. Park Acquisition and Development — apportionment from the State of Oregon from recreational vehicle fees. 72 Deschutes County Notes to Financial Statements June 30, 2014 Park Development Fees — fees paid by developers in lieu of land donation for park development. County School — local taxes and Federal forest receipts for education. Special Transportation — State grants for transportation. Taylor Grazing — Federal funds administered by State for rangeland improvement. Transient Room Tax — lodging tax for promotion of tourism and County services. PERS Reserve — previous years' charges to County's operating funds and departments to establish a reserve for increases in the PERS rate. Video Lottery — State's video lottery apportionment for grants promoting economic development. Transient Room Tax -1 % — Lodging taxes for marketing of recreational facilities. Foreclosed Land Sales — land sale proceeds for supervision and maintenance of properties acquired through tax foreclosure. Victims' Assistance — grants for providing assistance to crime victims. Law Library — fines and fees for maintenance of the law library. County Clerk Records — fees for upgrading storage and retrieval systems. Children & Families Commission — Federal and State grants for family and children programs. Court Facilities — fines and fees to provide security in the court building. Deschutes County Communication System — contract payments for radio system for public safety organizations of Deschutes County. Communications System Reserve — payments from law enforcement districts which will be used for replacement of the County -wide communication system. Public Health — fees for services, State grants and General Fund transfer for community wide health care. Healthy Start — fees for services and State grants for comprehensive prenatal care for low-income women and their infants. Public Health Reserve — transfer from Public Health, made in Fiscal Year 2007, and interest on investments for reserve to enable sustained response to significant public health events. OHP — Mental Health Services — State grant for mental health services. Acute Care Services — State grant funds for acute care services to the mentally ill. 73 Deschutes County Notes to Financial Statements June 30, 2014 OHP — Alcohol / Drug Services — Oregon Health Plan and chemical dependency fees for drug abuse treatment. Community Development — fees and charges for services for planning, building safety, education and public services. CDD - Groundwater Partnership — transfers for maintenance of water quality and open space and fees from developers for the protection of groundwater, including rebates for replacement of septic systems. Newberry Neighborhood — proceeds from land sales and grants for maintenance of water quality and open space. GIS (Geographic Information Systems) Dedicated — recording fees and sales for map data system. Natural Resource Protection — grants for the control of noxious weeds and promotion of healthy forests. Federal Forest Title III — federal monies for grants related to National Forest activities in Deschutes County. Surveyor — fees for survey measurements, plat reviews and document filing. Public Land Corner Preservation — fees for maintaining permanent monuments of survey corner positions. Countywide Transportation SDC Improvement — 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 operation of County justice program. Deschutes County Extension and 4-H Service District — property taxes for Oregon State University's Extension Service programs. Sub -fund of Deschutes County Extension and 4-H Service District: Deschutes County Extension and 4-H Service District Reserve Fund — transfer from operations for future capital asset requirements. Black Butte Ranch Service District — property taxes and fees for security services and law enforcement within the District's boundaries. Sunriver Service District — property taxes and fees for law enforcement and fire services within the District's boundaries. 74 Deschutes County Notes to Financial Statements June 30, 2014 Sub -fund of Sunriver Service District: Sunriver Service District Reserve — funds transferred from Sunriver Service District for future capital asset requirements. Debt Service Funds Local Improvement District, Series 2007 — collection of special assessment liens for the debt service on special assessment bonds. Inactivated effective June 30, 2014. Local Improvement District, Series 2009 — collection of special assessment liens for the debt service on special assessment bonds. Inactivated effective June 30, 2014. CDD Building Full Faith & Credit, Refunding Series 2004 — funds transferred from Community Development for debt service on bonds issued to build Community Development building. Full Faith and Credit Refunding Series 2012 — resources transferred from departments for debt service on bonds issued for building, remodel and acquisition of office buildings, communication system. Full Faith and Credit, 2005 — funds transferred from department for debt service on bonds issued to finance ADA compliance projects. Full Faith and Credit, 2008 — long-term operating leases for debt service on bonds issued for new office building. Full Faith and Credit, 2009 — transfers from the General Fund and the Sheriff's Office for debt service on bonds which were issued to purchase real property to be used for future expansion of the public safety campus. HHS/BJCC Full Faith and Credit Refunding Series 2005 — inter -fund transfers for debt service on bonds issued for new construction and building remodel of facilities for use by Public and Behavioral Health Departments. Full Faith and Credit, 2010 — lease payments and remaining resources from capital project fund for debt service on bonds issued to build a secure treatment facility. Full Faith and Credit, 2013 — transfers from the General Fund and the Sheriff's Office for debt service on bonds issued to finance the expansion of the County's Adult Jail. General Obligation Refunding Series 2012, formerly known as Public Safety 1998/2002 G.O. — property taxes for debt service on bonds issued to build public safety complex. Final debt service payment made June 1, 2014. Inactivated effective June 30,2014. PERS Series 2002 and 2004 Debt Service — transfer from operating funds for debt service on bonds issued to fund pension liability. 75 Deschutes County Notes to Financial Statements June 30, 2014 Bend Library County Service District General Obligation — property taxes for debt service on bonds issued to build a public library in Bend. Final debt service payment made December 2, 2013. Inactivated effective June 30, 2014. Sunriver Library County Service District General Obligation — property taxes for debt service on bonds issued to build a public library in Sunriver. Capital Projects Funds Local Improvement District — collections on unbonded liens to improve roads and streets for benefited properties. North County Services Building —resources from the General County Projects fund to acquire property for potential use by various County departments. Campus Improvement — transfer from General Fund for campus improvements. Sisters Health Clinic — grants and transfers used to build a facility to provide health services in the Sisters area. Nonmajor Proprietary Funds — Enterprise Fund RV Park — charges for space rental and transfers for the operation and maintenance of the County's recreational vehicle park and debt service. Nonmajor Proprietary Funds — Internal Service Funds Building Services — interfund charges for custodial, repairs and maintenance for County facilities. Administrative Services — interfund charges for services provided by County administration. Board of County Commissioners — interfund charges for services provided by the County's commissioners. Finance — interfund charges for services provided by Finance Department. Legal — interfund charges for services provided by Legal Department. Personnel — interfund charges for services provided by Personnel Department. Information Technology — interfund charges for services provided by IT Department. Information Technology Reserve — interfund charges for future technology improvements. Insurance — interfund charges for general liability, property, vehicle, workers' compensation and unemployment insurance. Health Benefits Trust — interfund charges for medical and dental insurance. 76 Required Supplementary Information June 30, 2014 Deschutes County Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund (Operations) Year Ended June 30, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Local Taxes - property $ 21,793,962 $ 21,793,962 $ 22,648,900 $ 854,938 Licenses and permits 26,725 26,725 33,125 6,400 Fines, forfeitures and penalties 200 200 30 (170) Investment earnings 54,000 54,000 84,366 30,366 Rents - - 8,216 8,216 Charges for services 1,535,362 1,535,362 1,426,504 (108,858) Intergovernmental State 2,596,685 2,596,685 2,796,423 199,738 Federal 500,000 500,000 500,941 941 Total revenues 26,506,934 26,506,934 27,498,505 991,571 EXPENDITURES General government Assessor Personnel services 2,871,210 2,871,210 2,774,574 96,636 Materials and services 815,821 815,821 785,176 30,645 Capital outlay 100 100 - 100 Total Assessor 3,687,131 3,687,131 3,559,750 127,381 Clerk / Elections Personnel services 769,884 769,884 717,785 52,099 Materials and services 730,061 730,061 575,746 154,315 Capital outlay 100 100 - 100 Total Clerk / Elections 1,500,045 1,500,045 1,293,531 206,514 Board of Property Tax Appeals Personnel services 46,593 46,593 44,458 2,135 Materials and services 30,208 30,208 15,436 14,772 Capital outlay 100 100 - 100 Total Board of Prop Tax Appeals 76,901 76,901 59,895 17,007 District Attorney Personnel services 4,516,713 4,598,319 4,404,442 193,877 Materials and services 1,014,478 1,014,478 967,453 47,025 Capital outlay 15,000 15,000 - 15,000 Total District Attorney 5,546,191 5,627,797 5,371,894 255,903 Tax Personnel services 484,918 486,918 486,162 756 Materials and services 360,815 360,815 310,070 50,745 Capital outlay 1,000 1,000 - 1,000 Total Tax 846,733 848,733 796,232 52,501 See Notes to Required Supplementary Information (continued) 77 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund (Operations) Year Ended June 30, 2014 EXPENDITURES (Continued) Veteran's Services Personnel services Materials and services Capital outlay Total Veteran's Services Property Management Personnel services Materials and services Capital outlay Total Property Management Grant Projects Personnel services Materials and services Capital outlay Total Grant Projects Non -Departmental Materials and services Debt service Capital outlay Total Non -Departmental Total general government Operating contingency Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer out: District Attorney Property Management Non -Departmental Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Budgeted Amounts Variance with Original Final Actual Amounts Final Budget 211,887 211,887 207,479 4,408 87,176 87,176 85,193 1,983 100 100 - 100 299,163 299,163 292,672 6,491 206,950 203,950 196,756 7,194 48,097 51,097 47,637 3,460 100 100 - 100 255,147 255,147 244,394 10,753 122,922 123,022 122,909 113 6,929 7,729 7,145 584 100 - - - 129,951 130,751 130,054 697 1,392,893 1,447,543 1,432,177 15,366 100,000 - 100 100 - 100 1,492,993 1,447,643 1,432,177 15,466 13,834,255 13,873,311 13,180,599 692,713 9,142,461 4,426,805 - 4,426,805 22,976,716 18,300,116 13,180,599 5,119,513 3,530,218 8,206,818 14,317,906 6,111,084 (10,980) (10,980) (10,980) - (3,660) (3,660) (3,660) - (13,015,578) (16,340,578) (16,327,584) 12,994 (13,030,218) (16,355,218) (16,342,224) 12,994 (9,500,000) (8,148,400) (2,024,319) 6,124,081 9,500,000 9,500,000 10,510,071 1,010,071 Fund balance - End of year $ - $ 1,351,600 $ 8,485,753 $ 7,134,152 See Notes to Required Supplementary Information 78 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Economic Development (Sub -Fund of the General Fund) Year Ended June 30, 2014 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 1,043 $ 1,043 Loan repayments 26,667 26,667 35,997 9,330 Total revenues 26,667 26,667 37,040 10,373 EXPENDITURES Materials and services 126,667 126,667 67,000 59,667 Total expenditures 126,667 126,667 67,000 59,667 Excess (deficiency) of revenues over expenditures (100,000) (100,000) (29,960) 70,040 Net change in fund balance (100,000) (100,000) (29,960) 70,040 Fund balance - Beginning of year 100,000 100,000 144,679 44,679 Fund balance - End of year $ - $ - $ 114,719 $ 114,719 See Notes to Required Supplementary Information 79 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Court Technology Reserve (Sub -Fund of the General Fund) Year Ended June 30, 2014 See Notes to Required Supplementary Information 80 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 200 $ 200 $ 515 $ 315 Total revenues 200 200 515 315 EXPENDITURES Materials and services 32,000 32,000 7,897 24,103 Total expenditures 32,000 32,000 7,897 24,103 Excess (deficiency) of revenues over expenditures (31,800) (31,800) (7,383) 24,417 OTHER FINANCING SOURCES Transfers in 32,000 32,000 32,000 - Net other financing sources 32,000 32,000 32,000 - Net change in fund balance 200 200 24,617 24,417 Fund balance - Beginning of year 73,707 73,707 73,915 208 Fund balance - End of year $ 73,907 $ 73,907 $ 98,533 $ 24,626 See Notes to Required Supplementary Information 80 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Assessment and Taxation Reserve (Sub -Fund of the General Fund) Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING USES Transfers out Net other financing uses Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 2,400 $ 2,400 $ 2,719 $ 319 2,400 2,400 2,719 319 100,000 100,000 - 100,000 100,000 100,000 - 100,000 (97,600) (97,600) 2,719 100,319 (89,518) (89,518) - 89,518 (89,518) (89,518) - 89,518 (187,118) (187,118) 2,719 189,837 452,000 452,000 448,289 (3,711) $ 264,882 $ 264,882 $ 451,007 $ 186,125 See Notes to Required Supplementary Information 81 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Bethlehem Inn (Sub -Fund of the General Fund) Year Ended June 30, 2014 EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 24,408 24,408 13,617 10,791 24,408 24,408 13,617 10,791 2,700,600 2,700,600 2,700,600 2,700,600 10,791 (2,689,809) 2,689,590 2,689,590 2,689,590 2,689,590 2,700,381 (219) (2,700,600) (2,700,600) (2,700,381) 219 See Notes to Required Supplementary Information 82 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Rents $ 24,408 $ 24,408 $ 24,408 $ - Contributions and donations 2,700,600 2,700,600 - (2,700,600) Total revenues 2,725,008 2,725,008 24,408 (2,700,600) EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 24,408 24,408 13,617 10,791 24,408 24,408 13,617 10,791 2,700,600 2,700,600 2,700,600 2,700,600 10,791 (2,689,809) 2,689,590 2,689,590 2,689,590 2,689,590 2,700,381 (219) (2,700,600) (2,700,600) (2,700,381) 219 See Notes to Required Supplementary Information 82 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Humane Society of Redmond (Sub -Fund of the General Fund) Year Ended June 30, 2014 REVENUES Local Loan repayment Total revenues EXPENDITURES Debt Service Total expenditures Net change in fund balance Variance with Original Budget Final Budget Actual Final Budget $ 750,000 $ 750,000 $ 141,004 $ (608,996) 750,000 750,000 141,004 (608,996) 750,000 750,000 3,418 746,582 750,000 750,000 3,418 746,582 137,586 137,586 Fund balance - Beginning of year - - (616,039) (616,039) Fund balance - End of year $ - $ - $ (478,454) $ (478,454) See Notes to Required Supplementary Information 83 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Project Development Fund (Sub -Fund of the General Fund) Year Ended June 30, 2014 REVENUES Local Fines, forfeitures and penalties Investment earnings Loan repayments Other Intergovernmental Local Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Appropriation transfer Transfers in Transfer out Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Final Actual Variance with Amounts Final Budget $ - $ - $ 25 $ 25 217,792 217,792 171,930 (45,862) 30,000 30,000 197,458 167,458 - - 27,201 27,201 - - 19,910 19,910 247,792 247,792 416,524 168,732 38,000 163,000 108,986 54,014 100 100 - 100 38,100 163,100 108,986 54,114 209,692 84,692 307,538 222,846 - 125,000 - (125,000) 300,000 300,000 300,000 - (883,754) (883,754) (883,754) - (583,754) (458,754) (583,754) (125,000) (374,062) (374,062) (276,216) 97,846 2,541,740 2,541,740 2,540,551 (1,189) $ 2,167,678 $ 2,167,678 $ 2,264,335 $ 96,657 See Notes to Required Supplementary Information 84 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General County Projects (Sub -Fund of the General Fund) Year Ended June 30, 2014 REVENUES Local Taxes - property Investment earnings Rent Donations Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Original Budget Final Budget Actual Final Budget $ 676,000 $ 676,000 $ 730,643 $ 54,643 10,000 10,000 11,633 1,633 460,551 460,551 460,551 - - - 7,996 7,996 1,146,551 1,146,551 1,210,823 64,272 382,008 382,008 235,944 146,064 460,000 460,000 374,610 85,390 842,008 842,008 610,555 231,453 1,682,561 1,527,561 - 1,527,561 2,524,569 2,369,569 610,555 1,759,014 (1,378,018) (1,223,018) 600,269 1,823,287 OTHER FINANCING SOURCES (USES) Transfers in 295,945 295,945 251,193 (44,752) Transfers out (892,927) (1,047,927) (1,047,927) - Total other financing sources (uses) (596,982) (751,982) (796,734) (44,752) Net change in fund balance (1,975,000) (1,975,000) (196,465) 1,778,535 Fund balance - Beginning of year 1,975,000 1,975,000 1,982,531 7,531 Fund balance - End of year $ - $ - $ 1,786,065 $ 1,786,065 See Notes to Required Supplementary Information 85 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Capital Reserve (Sub -Fund of the General Fund) Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Capital outlay Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget 3,000 $ 3,000 $ 3,857 $ 857 3,000 3,000 3,857 857 640,000 640,000 - 640,000 640,000 640,000 - 640,000 (637,000) (637,000) 3,857 640,857 637,000 637,000 635,897 (1,103) $ - $ - $ 639,754 $ 639,754 See Notes to Required Supplementary Information 86 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Property Management Operations (Sub -Fund of the General Fund) Year Ended June 30, 2014 REVENUES Local Investment earnings Rents Total revenues EXPENDITURES Materials and services Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ - $ - $ 19 $ 19 1,800 1,800 - (1,800) 1,800 1,800 19 (1,781) 6,800 6,800 3,688 3,112 6,800 6,800 3,688 3,112 (5,000) (5,000) (3,669) (4,893) 5,000 5,000 3,669 (1,331) See Notes to Required Supplementary Information 87 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Community Justice - Juvenile (Sub -Fund of the General Fund) Year Ended June 30, 2014 Net change in fund balance Fund balance - Beginning of year Fund balance - End of year (1,125,000) (1,125,000) 67,514 1,192,514 1,125,000 1,125,000 1,177,296 52,296 $ - $ - $ 1,244,810 $ 1,244,810 See Notes to Required Supplementary Information 88 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties $ 475 $ 475 $ 100 $ (375) Investment earnings 6,000 6,000 8,086.11 2,086 Rents 1,200 1,200 5,200 4,000 Charges for services 245,175 245,175 55,332 (189,843) Contributions and donations 1,250 1,250 442 (808) Intergovernmental Local 20,000 20,000 145,429 125,429 State 439,136 439,136 402,078 (37,058) Federal 4,254 4,254 9,434 5,180 Total revenues 717,490 717,490 626,101 (91,389) EXPENDITURES Personnel services 5,109,496 5,109,496 4,887,572 221,924 Materials and services 1,085,433 1,085,433 1,035,701 49,732 Capital outlay 100 100 - 100 Total 6,195,029 6,195,029 5,923,273 271,756 Operating contingency 1,012,147 1,012,147 - 1,012,147 Total expenditures 7,207,176 7,207,176 5,923,273 1,283,903 Excess (deficiency) of revenues over expenditures (6,489,686) (6,489,686) (5,297,172) 1,192,514 OTHER FINANCING SOURCES (USES) Transfers in 5,368,346 5,368,346 5,368,346 - Transfers out (3,660) (31660) (3,660) - Total other financing sources (uses) 5,364,686 5,364,686 5,364,686 - Net change in fund balance Fund balance - Beginning of year Fund balance - End of year (1,125,000) (1,125,000) 67,514 1,192,514 1,125,000 1,125,000 1,177,296 52,296 $ - $ - $ 1,244,810 $ 1,244,810 See Notes to Required Supplementary Information 88 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Code Abatement (Sub -Fund of the General Fund) Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING USES Transfers out Total other financing uses Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Budget Final Budget $ 700 $ 700 $ 700 700 97,400 97,400 97,400 97,400 (96,700) (96,700) Variance with Actual Final Budget 586 $ (114) 586 (114) 97,400 97,400 586 97,286 (100) (100) - 100 (100) (100) - 100 (96,800) (96,800) 586 97,386 96,800 96,800 96,700 (100) $ - $ - $ 97,286 $ 97,286 See Notes to Required Supplementary Information 89 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Vehicle Maintenance and Replacement (Sub -Fund of the General Fund) Year Ended June 30, 2014 See Notes to Required Supplementary Information 90 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings S 5,800 $ 5,800 $ 6,272 $ 472 Sale of equipment - - 4,735 4,735 Total revenues 5,800 5,800 11,007 5,207 EXPENDITURES Materials and services 91,000 91,000 66,128 24,872 Capital outlay 250,000 250,000 166,998 83,002 Total expenditures 341,000 341,000 233,126 107,874 Excess (deficiency) of revenues over expenditures (335,200) (335,200) (222,120) 113,080 OTHER FINANCING SOURCES Transfers in 157,380 157,380 157,380 - Total other financing sources 157,380 157,380 157,380 - Net change in fund balance (177,820) (177,820) (64,740) 113,080 Fund balance - Beginning of year 948,201 948,201 1,042,528 94,327 Fund balance - End of year $ 770,381 $ 770,381 $ 977,788 $ 207,407 See Notes to Required Supplementary Information 90 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Deschutes County Sheriff's Office Year Ended June 30, 2014 Records Personnel services Budgeted Amounts 700,961 659,297 41,664 Materials and services 109,025 Actual Variance with 7,062 Original Final Amounts Final Budget REVENUES Total Records 774,452 810,086 761,260 Intergovernmental Adult jail Local $ 39,003,683 $ 39,003,683 $ 33,096,040 $ (5,907,643) Total revenues 39,003,683 39,003,683 33,096,040 (5,907,643) EXPENDITURES Capital outlay 76,590 76,590 63,176 Sheriffs services Total Adult jail 14,084,459 14,234,459 14,048,881 Personnel services 1,411,820 1,396,494 1,342,795 53,699 Materials and services 989,918 989,918 965,387 24,531 Capital outlay 100 100 - 100 Total Sheriffs services 2,401,838 2,386,512 2,308,182 78,330 Civil/special units Personnel services 1,009,306 1,099,232 1,027,640 71,592 Materials and services 95,769 110,769 104,389 6,380 Capital outlay 5,100 5,100 - 5,100 Total Civil/special units 1,110,175 1,215,101 1,132,029 83,072 Automotive/communications Personnel services 404,407 413,535 400,169 13,366 Materials and services 1,202,505 1,292,505 1,265,667 26,838 Capital outlay 37,000 37,000 35,750 1,250 Total Automotive/communications 1,643,912 1,743,040 1,701,586 41,454 Investigations/evidence Personnel services 1,338,593 1,323,285 1,277,983 45,302 Materials and services 133,985 148,985 140,761 8,224 Capital outlay 100 100 - 100 Total Investigations/evidence 1,472,678 1,472,370 1,418,744 53,626 Patrol Personnel services 7,723,459 7,694,405 7,450,178 244,227 Materials and services 563,921 563,921 547,640 16,281 Capital outlay 257,572 257,572 249,274 8,298 Total Patrol 8,544,952 8,515,898 8,247,092 268,806 Records Personnel services 665,327 700,961 659,297 41,664 Materials and services 109,025 109,025 101,963 7,062 Capital outlay 100 100 - 100 Total Records 774,452 810,086 761,260 48,826 Adult jail Personnel services 12,060,079 12,060,079 11,899,534 160,545 Materials and services 1,947,790 2,097,790 2,086,170 11,620 Capital outlay 76,590 76,590 63,176 13,414 Total Adult jail 14,084,459 14,234,459 14,048,881 185,578 See Notes to Required Supplementary Information (continued) 91 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Deschutes County Sheriff's Office Year Ended June 30, 2014 EXPENDITURES (Continued) Court security Personnel services Materials and services Capital outlay Total Court security Budgeted Amounts Actual Variance with Original Final Amounts Final Budget 265,966 285,966 284,173 1,793 9,786 14,786 10,390 4,396 G/0,006 JVV,OJb G7°i,JUJ U"407 Emergency services 169,170 Personnel services 196,825 Materials and services 26,348 Capital outlay 100 Total Emergency services 223,273 Special services 27,442 Personnel services 1,251,196 Materials and services 211,502 Capital outlay 35,600 Total Special services 1,498,298 Training 19,100 Personnel services 384,725 Materials and services 143,154 Capital outlay 100 Total Training 527,979 Other law enforcement services 30,851 Personnel services 705,392 Materials and services 74,131 Capital outlay 100 Total Other law enforcement services 779,623 Non -Departmental 18,961 Materials and services 81,701 Total Non -Departmental 81,701 Total 33,419,192 Operating contingency 5,284,491 Total expenditures 38,703,683 Excess (deficiency) of revenues over expenditures 300,000 Other financing sources (uses) Sale of capital assets - Transfers out (300,000) Total other financing sources (uses) (300,000) Net change in fund balance - Fund balance - Beginning of year - Fund balance - End of year $ - See Notes to Required Supplementary Information 190,882 169,170 21,712 31,348 25,718 5,630 100 - 100 222,330 194,888 27,442 1,281,831 1,152,258 129,573 211,502 183,769 27,733 35,600 16,500 19,100 1,528,933 1,352,528 176,405 415,342 385,634 29,708 153,154 122,303 30,851 100 - 100 568,596 507,938 60,658 750,083 731,122 18,961 84,131 70,773 13,358 100 - 100 834,314 801,895 32,419 81,701 81,701 33,914,192 4,789,491 38,703,683 300,000 «nn nnm 81,701 - 81,701 - 32,851,288 1,062,904 - 4,789,491 32,851,288 5,852,395 244,752 ilnn '7 (55,248) 55,248 55,248 92 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Countywide Law Enforcement District Year Ended June 30, 2014 REVENUES Local Taxes - property Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Other Intergovernmental Local State Federal Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING USES Transfers out Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts (5,441,699) (5,441,699) (301,541) (5,140,158) (100,000) (100,000) (100,000) - (5,541,699) (5,541,699) (401,541) (5,140,158) 5,541,699 5,541,699 6,610,117 1,068,418 $ - $ - $ 6,208,576 $ 6,208,576 See Notes to Required Supplementary Information 93 Actual Variance with Original Final Amounts Final Budget $ 16,611,279 $ 16,611,279 $ 17,199,240 $ 587,961 255,000 255,000 365,597 110,597 32,000 32,000 53,230 21,230 178,249 178,249 242,072 63,823 51,897 51,897 38,361 (13,536) 5,100 5,100 4,091 (1,009) 126,080 126,080 475,815 349,735 1,831,658 1,831,658 2,196,480 364,822 25,500 25,500 20,897 (4,603) 19,116,763 19,116,763 20,595,782 1,479,019 24,558,462 24,558,462 20,897,324 3,661,138 24,558,462 24,558,462 20,897,324 3,661,138 (5,441,699) (5,441,699) (301,541) (5,140,158) (100,000) (100,000) (100,000) - (5,541,699) (5,541,699) (401,541) (5,140,158) 5,541,699 5,541,699 6,610,117 1,068,418 $ - $ - $ 6,208,576 $ 6,208,576 See Notes to Required Supplementary Information 93 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Countywide Law Enforcement District — Capital Reserve (Sub -Fund of Countywide Law Enforcement District) Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 6,000 $ 6,000 $ 7,965 $ 1,965 6,000 6,000 7,965 1,965 100 100 - 100 1,373,900 1,373,900 - 1,373,900 1,374,000 1,374,000 - 1,374,000 (1,368,000) (1,368,000) 7,965 1,375,965 100,000 100,000 100,000 100,000 100,000 100,000 (1,268,000) (1,268,000) 107,965 (1,268,000) 1,268,000 1,268,000 1,268,064 64 $ - $ - $ 1,376,030 $ 1,376,030 See Notes to Required Supplementary Information 94 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Rural Law Enforcement District Year Ended June 30, 2014 REVENUES Local Taxes - property Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Other Intergovernmental Local State Federal Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING USES Transfers out Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts (100,000) (100,000) (100,000) - (2,620,213) (2,620,213) 13,262 2,633,475 2,620,213 2,620,213 3,097,325 477,112 $ - $ - $ 3,110,587 $ 3,110,587 See Notes to Required Supplementary Information 95 Actual Variance with Original Final Amounts Final Budget $ 8,103,790 $ 8,103,790 $ 8,235,345 $ 131,555 146,500 146,500 171,967 25,467 12,000 12,000 22,902 10,902 25,000 25,000 23,354 (1,646) - - 12,030 12,030 25,000 25,000 13,035 (11,965) 3,296,718 3,296,718 3,510,547 213,829 374,000 374,000 296,902 (77,098) 142,000 142,000 225,896 83,896 12,125,008 12,125,008 12,511,978 386,970 14,645,221 14,645,221 12,398,716 2,246,505 14,645,221 14,645,221 12,398,716 2,246,505 (2,520,213) (2,520,213) 113,262 2,633,475 (100,000) (100,000) (100,000) - (2,620,213) (2,620,213) 13,262 2,633,475 2,620,213 2,620,213 3,097,325 477,112 $ - $ - $ 3,110,587 $ 3,110,587 See Notes to Required Supplementary Information 95 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Rural Law Enforcement District — Capital Reserve (Sub -Fund of Rural Law Enforcement District) Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 6,000 $ 6,000 $ 7,965 $ 1,965 6,000 6,000 7,965 1,965 100 100 - 100 1,373,900 1,373,900 - 1,373,900 1,374,000 1,374,000 - 1,374,000 (1,368,000) (1,368,000) 7,965 1,375,965 100,000 100,000 100,000 100,000 100,000 100,000 (1,268,000) (1,268,000) 107,965 (1,268,000) 1,268,000 1,268,000 1,268,064 64 $ - $ - $ 1,376,030 $ 1,376,030 See Notes to Required Supplementary Information 96 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Road Department Year Ended June 30, 2014 REVENUES Local Licenses and permits Special assessments Investment earnings Charges for services Contributions and donations Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Budgeted Amounts Original Final Actual Amounts Variance with Final Budget $ 1,200 $ 1,200 $ - $ (1,200) - - 11,020 11,020 18,000 18,000 57,195 39,195 1,728,000 1,728,000 1,227,418 (500,582) - - 15,132 15,132 700,000 700,000 1,097,444 397,444 11,327,952 11,327,952 11,895,861 567,909 496,270 496,270 2,529,829 2,033,559 14,271,422 14,271,422 16,833,899 2,562,477 5,385,717 5,385,717 5,313,126 72,591 10,306,609 10,306,609 7,904,995 2,401,614 2,882,108 2,882,108 121,455 2,760,653 18,574,434 18,574,434 13,339,576 5,234,858 1,944,504 1,815,104 - 1,815,104 20,518,938 20,389,538 13,339,576 7,049,962 (6,247,516) (6,118,116) 3,494,323 9,612,439 OTHER FINANCING SOURCES (USES) Transfers in 683,148 683,148 282,148 (401,000) Transfers out (450,000) (450,000) (450,000) - Total other financing sources (uses) 233,148 233,148 (167,852) (401,000) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year (6,014,368) 6,014,368 (5,884,968) 3,326,471 9,211,439 6,014,368 8,117,017 2,102,649 $ 129,400 $ 11,443,488 $ 11,314,088 See Notes to Required Supplementary Information 97 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Road Improvement Reserve (Sub -Fund of Road Fund) Year Ended June 30, 2014 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings S 50 S 50 S 74 S 24 Total revenues EXPENDITURES Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING USES Transfers out Total other financing uses Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 50 50 74 24 (1,000) (11000) - 1,000 (1,000) (11000) - 1,000 (950) (950) 74 1,024 12,240 12,240 12,253 13 S 11,290 $ 11,290 $ 12,327 $ 1,037 See Notes to Required Supplementary Information 98 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Road Building and Equipment (Sub -Fund of Road Fund) Year Ended June 30, 2014 See Notes to Required Supplementary Information 99 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 4,000 $ 4,000 $ 4,272 $ 272 Total revenues 4,000 4,000 4,272 272 EXPENDITURES Materials and services 17,315 17,315 17,315 - Capital outlay 460,000 710,000 659,048 50,952 Total 477,315 727,315 676,363 50,952 Operating contingency 660,028 489,428 - 489,428 Total expenditures 1,137,343 1,216,743 676,363 540,380 Excess (deficiency) of revenues over expenditures (1,133,343) (1,212,743) (672,091) 540,652 OTHER FINANCING SOURCES Appropriation transfer - 79,400 - (79,400) Transfers in 450,000 450,000 450,000 - Total other financing sources 450,000 529,400 450,000 (79,400) Net change in fund balance (683,343) (683,343) (222,091) 461,252 Fund balance - Beginning of year 683,343 683,343 915,366 232,023 Fund balance - End of year $ - $ - $ 693,275 $ 693,275 See Notes to Required Supplementary Information 99 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Deschutes County 9-1-1 Year Ended June 30, 2014 EXPENDITURES Personnel services 4,432,356 4,654,796 4,420,333 Variance with Materials and services Original Budget Final Budget Actual Final Budget REVENUES 350,000 600,000 66,498 533,502 Local 6,914,832 7,387,272 6,483,636 903,636 Taxes -property $ 6,166,607 $ 6,166,607 $ 6,450,574 $ 283,967 Investment earnings 60,600 60,600 43,373 (17,227) Charges for services 456,791 456,791 402,809 (53,982) Intergovernmental over expenditures (2,000,000) (2,000,000) Local 60,000 60,000 73,701 13,701 State 786,000 786,000 798,589 12,589 Federal 200,000 200,000 46,514 (153,486) Total revenues 7,729,998 7,729,998 7,815,559 85,561 EXPENDITURES Personnel services 4,432,356 4,654,796 4,420,333 234,463 Materials and services 2,132,476 2,132,476 1,996,805 135,671 Capital outlay 350,000 600,000 66,498 533,502 Total 6,914,832 7,387,272 6,483,636 903,636 Operating contingency 2,815,166 2,342,726 - 2,342,726 Total expenditures 9,729,998 9,729,998 6,483,636 3,246,362 Excess (deficiency) of revenues over expenditures (2,000,000) (2,000,000) 1,331,923 3,331,923 OTHER FINANCING USES Transfers out (7,800,000) (7,800,000) (7,800,000) - Total other financing uses (7,800,000) (7,800,000) (7,800,000) - Net change in fund balance (9,800,000) (9,800,000) (6,468,077) 3,331,923 Fund balance - Beginning of year 9,800,000 9,800,000 10,436,247 636,247 Fund balance - End of year $ - $ - $ 3,968,170 $ 3,968,170 See Notes to Required Supplementary Information 100 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — 9-1-1 County Service District — Equipment Reserve (Sub -Fund of Deschutes County 911 County Service District) Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 14,000 $ 14,000 $ 40,700 $ 26,700 14,000 14,000 40,700 26,700 1,000 1,000 - 1,000 5,000 5,000 - 5,000 6,000 6,000 - 6,000 8,000 8,000 40,700 32,700 7,800,000 7,800,000 7,800,000 - 7,800,000 7,800,000 7,800,000 - 7,808,000 7,808,000 7,840,700 32,700 2,310,000 2,310,000 2,311,462 1,462 $ 10,118,000 $ 10,118,000 $ 10,152,162 $ 34,162 See Notes to Required Supplementary Information 101 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Behavioral Health Year Ended June 30, 2014 Net change in fund balance (3,461,651) (3,461,651) 255,062 3,716,713 Fund balance - Beginning of year 3,461,651 3,461,651 2,670,423 (791,228) Fund balance - End of year $ - $ - $ 2,925,485 $ 2,925,485 See Notes to Required Supplementary Information 102 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Licenses and permits $ 147,200 $ 147,200 $ 136,413 $ (10,787) Investment earnings 20,500 20,500 22,646.06 2,146 Rents 18,500 18,500 16,000 (2,500) Charges for services 8,603,725 8,603,725 8,648,768 45,043 Contributions and donations - - 34,509 34,509 Intergovernmental Local - - 25,334 25,334 State 8,466,583 9,106,272 8,811,277 (294,995) Federal 277,849 277,849 248,730 (29,119) Total revenues 17,534,357 18,174,046 17,943,677 (230,369) EXPENDITURES Personnel services 13,095,797 14,147,348 12,415,866 1,731,482 Materials and services 6,828,913 7,082,738 6,738,744 343,994 Capital outlay 10,000 10,000 - 10,000 Total 19,934,710 21,240,086 19,154,610 2,085,476 Operating contingency 2,527,293 1,861,606 - 1,861,606 Total expenditures 22,462,003 23,101,692 19,154,610 3,947,082 Excess (deficiency) of revenues over expenditures (4,927,646) (4,927,646) (1,210,933) 3,716,713 OTHER FINANCING SOURCES (USES) Transfers in 1,670,895 1,670,895 1,670,895 - Transfer out (204,900) (204,900) (204,900) - Total other financing sources (uses) 1,465,995 1,465,995 1,465,995 - Net change in fund balance (3,461,651) (3,461,651) 255,062 3,716,713 Fund balance - Beginning of year 3,461,651 3,461,651 2,670,423 (791,228) Fund balance - End of year $ - $ - $ 2,925,485 $ 2,925,485 See Notes to Required Supplementary Information 102 Deschutes County Notes to Required Supplementary Information June 30, 2014 Budgetary comparison for the County's General Fund and for each of its major special revenue funds is required and is presented as Required Supplementary Information. These budgets are prepared on the modified accrual basis and there is no difference between the basis used for budgets and the basis used for financial reporting of actual results. 103 Other Supplementary Information June 30, 2014 Deschutes County Combining and Individual Fund Statements and Schedules June 30, 2014 Deschutes County ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - loans Unavailable revenue - contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Unassigned Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes County General Fund Combining Balance Sheet June 30, 2014 $ 806,479 $ - $ 9,693 - - - 2,038,510 - - - 2,854,682 - - - 749,970 - - - - 332,445 - - 749,970 332,445 - - 357,539 114,719 98,533 451,007 8,128,214 - - - 8,485,753 114,719 98,533 451,007 $ 12,090,404 $ 447,163 $ 98,533 $ 451,007 (continued) 104 Court Assessment General Economic Technology & Taxation Fund Development Reserve Reserve $ 4,415,163 $ 45,789 $ 39,328 $ 180,015 6,645,049 68,930 59,204 270,992 852,567 - - - 161,406 - - - 10,000 332,445 - - 6,219 - - - $ 12,090,404 $ 447,163 $ 98,533 $ 451,007 $ 806,479 $ - $ 9,693 - - - 2,038,510 - - - 2,854,682 - - - 749,970 - - - - 332,445 - - 749,970 332,445 - - 357,539 114,719 98,533 451,007 8,128,214 - - - 8,485,753 114,719 98,533 451,007 $ 12,090,404 $ 447,163 $ 98,533 $ 451,007 (continued) 104 Deschutes County General Fund Combining Balance Sheet June 30, 2014 LIABILITIES Accounts payable $ - $ 16,460 $ 64,141 $ - Due to other funds 478,454 - - - Deposits - - - - Unearned revenue - 52,031 - Total liabilities 478,454 68,491 64,141 - DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Humane - General General 526,280 Society Project County Capital 2,468,270 of Redmond Development Projects Reserve ASSETS FUND BALANCES Cash and cash equivalents $ - $ 919,020 $ 737,229 $ 255,352 Investments, at fair value; - - - Total fund balances (478,454) plus accrued interest - 1,383,478 1,109,812 384,402 Taxes receivable - - 26,264 - Accounts receivable - 1 - - Notes and contracts receivable 526,280 2,498,598 - - Due from other funds - - - - Total assets $ 526,280 $ 4,801,097 $ 1,873,305 $ 639,754 LIABILITIES Accounts payable $ - $ 16,460 $ 64,141 $ - Due to other funds 478,454 - - - Deposits - - - - Unearned revenue - 52,031 - Total liabilities 478,454 68,491 64,141 - DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes - - 23,099 - Unavailable revenue - loans 526,280 - - - Unavailable revenue - contracts of sale - 2,468,270 - - Total deferred inflow of resources 526,280 2,468,270 23,099 - FUND BALANCES Assigned - 2,264,335 1,786,065 639,754 Unassigned (478,454) - - - Total fund balances (478,454) 2,264,335 1,786,065 639,754 Total liabilities, deferred inflow of resources and fund balances $ 526,280 $ 4,801,097 $ 1,873,305 $ 639,754 (continued) 105 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - loans Unavailable revenue - contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Unassigned Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes County General Fund Combining Balance Sheet June 30, 2014 Community Vehicle Justice Code Maintenance & Juvenile Abatement Replacement Total $ 461,649 $ 38,831 $ 390,275 $ 7,482,651 694,884 58,456 587,513 11,262,722 - - - 878,831 101,886 - - 263,293 - - - 3,367,322 - - - 6,219 $ 1,258,420 $ 97,286 $ 977,788 $ 23,261,038 $ 13,610 $ - $ - $ 900,690 - - - 478,454 - - 9,693 - - - 2,090,541 13,610 - - 3,479,377 - 773,069 - - - 858,725 - 2,468,270 - 4,100,064 1,244,810 97,286 977,788 8,031,837 - - - 7,649,760 1,244,810 97,286 977,788 15,681,597 $ 1,258,420 $ 97,286 $ 977,788 $ 23,261,038 106 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Due from other funds Total assets LIABILITIES Accounts payable Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Total deferred inflow of resources FUND BALANCES Assigned Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes County Countywide Law Enforcement District Combining Balance Sheet June 30, 2014 Operating Reserve Fund Fund Total $ 2,398,610 $ 209,868 $ 2,608,479 3,610,869 315,933 3,926,802 613,370 - 613,370 153,592 - 153,592 - 847,049 847,049 $ 6,776,442 $ 1,372,849 $ 8,149,291 $ 93 $ - $ 93 28,061 - 28,061 539,806 - 539,806 6,208,576 1,372,849 7,581,425 8 6,776,442 $ 1,372,849 8 8,149,291 107 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Total assets DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Total deferred inflow of resources FUND BALANCES Assigned Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes County Rural Law Enforcement District Combining Balance Sheet June 30, 2014 Operating Reserve $ 1,151,638 $ 549,229 $ 1,700,867 1,733,658 826,801 2,560,459 298,221 - 298,221 189,512 - 189,512 $ 3,373,029 $ 1,376,030 $ 4,749,058 $ 262,442 $ - $ 262,442 262,442 - 262,442 3,110,587 1,376,030 4,486,616 3,110,587 1,376,030 4,486,616 $ 3,373,029 $ 1,376,030 $ 4,749,058 Deschutes County Deschutes County Road Department Combining Balance Sheet June 30, 2014 LIABILITIES Accounts payable Road Dept Road Bldg Road 120 - - 120 Operating and Equip Improvement DEFERRED INFLOW OF RESOURCES Fund Fund Reserve Total ASSETS 484,483 - - 484,483 FUND BALANCES Cash and cash equivalents $ 4,033,560 $ 276,714 $ 4,920 $ 4,315,194 Investments, at fair value; plus accrued interest 6,070,327 416,561 7,407 6,494,295 Accounts receivable 1,019,100 - - 1,019,100 Assessments receivable 484,483 - - 484,483 Inventory 1,418,998 - - 1,418,998 Total assets $ 13,026,468 $ 693,275 $ 12,327 $ 13,732,070 LIABILITIES Accounts payable $ 1,098,378 $ - $ - $ 1,098,378 Unearned revenue 120 - - 120 Total liabilities 1,098,498 - - 1,098,498 DEFERRED INFLOW OF RESOURCES Unavailable revenue - special assessments 484,483 - - 484,483 Total deferred inflow of resources 484,483 - - 484,483 FUND BALANCES Nonspendable 1,418,998 - - 1,418,998 Assigned 10,024,490 693,275 12,327 10,730,092 Total fund balances 11,443,488 693,275 12,327 12,149,090 Total liabilities, deferred inflow of resources and fund balances $ 13,026,468 $ 693,275 $ 12,327 $ 13,732,070 109 Deschutes County Deschutes County 9-1-1 County Service District Combining Balance Sheet June 30, 2014 110 Deschutes County 9-1-1 Des Co 9-1-1 Operating Equipment Fund Reserve Total ASSETS Cash and cash equivalents $ 1,529,610 $ 4,052,138 $ 5,581,747 Investments, at fair value; plus accrued interest 2,302,651 6,100,024 8,402,675 Taxes receivable 238,504 - 238,504 Accounts receivable 214,871 - 214,871 Total assets $ 4,285,636 $ 10,152,162 $ 14,437,798 LIABILITIES Accounts payable $ 106,600 $ - $ 106,600 Total liabilities 106,600 - 106,600 DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes 210,865 210,865 Total deferred inflow of resources 210,865 - 210,865 FUND BALANCES Assigned 3,968,170 10,152,162 14,120,332 Total fund balances 3,968,170 10,152,162 14,120,332 Total liabilities, deferred inflow of resources and fund balances $ 4,285,636 $ 10,152,162 $ 14,437,798 110 REVENUES Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Intergovernmental Charges for services Contributions and donations Loan repayments Other Total revenues EXPENDITURES Current Deschutes County General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 General Economic Fund Development $ 22,648,900 $ - 33,125 - 30 - 84,366 1,043 8,216 - 3,297,364 - 1,426,504 - - 35,997 Court Assessment Technology & Taxation Reserve Reserve 515 2,719 General government 12,887,927 67,000 7,897 - Public safety - - - - Health and welfare 292,672 - - - Debt service Interest - - - - Capital outlay - - - - Total expenditures 13,180,599 67,000 7,897 - Excess (deficiency) of revenues over expenditures 14,317,906 (29,960) (7,383) 2,719 OTHER FINANCING SOURCES (USES) Inter -fund Transfers in - - - - Transfers out (7,986,455) - - - Intra -fund Transfers in - - 32,000 - Transfers out (8,355,769) - - - Total other financing sources (uses) (16,342,224) - 32,000 - Net change in fund balances (2,024,319) (29,960) 24,617 2,719 Fund balances - Beginning of year 10,510,071 144,679 73,915 448,289 Fund balances - End of year $ 8,485,753 $ 114,719 $ 98,533 $ 451,007 (continued) 111 Deschutes County General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Intergovernmental Charges for services Contributions and donations Loan repayments Other Total revenues EXPENDITURES Current General government Public safety Health and welfare Debt service Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Inter -fund Transfers in Transfers out Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year - - 108,986 235,944 13,617 3,418 - - - - - 374,610 13,617 3,418 108,986 610,555 10,791 137,586 307,538 600,269 300,000 - - - (883,754) (1,047,927) 2,689,590 - - 251,193 2,700,381 137,586 (276,216) (196,465) (2,700,381) (616,039) 2,540,551 1,982,531 $ - $ (478,454) $ 2,264,335 $ 1,786,065 (continued) 112 Humane General Bethlehem Society Project County Inn of Redmond Development Projects $ - $ - $ - $ 730,643 - - 25 - - - 171,930 11,633 24,408 - - 460,551 - - 19,910 - - - - 7,996 - 141,004 197,458 - - - 27,201 - 24,408 141,004 416,524 1,210,823 - - 108,986 235,944 13,617 3,418 - - - - - 374,610 13,617 3,418 108,986 610,555 10,791 137,586 307,538 600,269 300,000 - - - (883,754) (1,047,927) 2,689,590 - - 251,193 2,700,381 137,586 (276,216) (196,465) (2,700,381) (616,039) 2,540,551 1,982,531 $ - $ (478,454) $ 2,264,335 $ 1,786,065 (continued) 112 Deschutes County General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 (continued) 113 General Property Community Capital Management Justice Code Reserve Operations Juvenile Abatement REVENUES Taxes - property $ - $ - $ - $ - Licenses and permits - - - - Fines, forfeitures and penalties - - 100 - Investment earnings 3,857 19 8,086 586 Rents - - 5,200 - Intergovernmental - - 556,941 - Charges for services - - 55,332 - Contributions and donations - - 442 - Loan repayments - - - - Other - - - - Total revenues 3,857 19 626,101 586 EXPENDITURES Current General government - 3,688 - - Public safety - - 5,923,273 - Health and welfare - - - - Debt service Interest - - - - Capital outlay - - - - Total expenditures - 3,688 5,923,273 - Excess (deficiency) of revenues over expenditures 3,857 (3,669) (5,297,172) 586 OTHER FINANCING SOURCES (USES) Inter -fund Transfers in - - - - Transfers out - - - - Intra -fund Transfers in - - 5,368,346 - Transfers out - - (3,660) - Total other financing sources (uses) - - 5,364,686 - Net change in fund balances 3,857 (3,669) 67,514 586 Fund balances - Beginning of year 635,897 3,669 1,177,296 96,700 Fund balances - End of year $ 639,754 $ - $ 1,244,810 97,286 (continued) 113 Deschutes County General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Intergovernmental Charges for services Contributions and donations Loan repayments Other Total revenues EXPENDITURES Current General government Public safety Health and welfare Debt service Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Inter -fund Transfers in Transfers out Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Vehicle Maintenance & Replacement Total $ - $ 23,379,543 33,125 - 155 6,272 291,026 - 498,375 - 3,874,215 - 1,481,836 - 8,438 - 374,460 4,735 31,935 11,007 29,973,107 66,128 13,377,570 - 5,923,273 292,672 - 17,035 166,998 541,609 233,126 20,152,159 (222,120) 9,820,948 139,080 439,080 - (9,918,136) 18,300 8,359,429 - (8,359,429) 157,380 (9,479,056) (64,740) 341,892 1,042,528 15,339,705 $ 977,788 $ 15,681,597 114 Deschutes County Countywide Law Enforcement District Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Taxes - property Fines, forfeitures and penalties Investment earnings Charges for services Intergovernmental Contributions and donations Other Total revenues EXPENDITURES Current Public safety Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balances - End of year Operating Reserve Fund Fund Total $ 17,199,240 $ - $ 17,199,240 365,597 - 365,597 53,230 2,840 56,070 242,072 - 242,072 2,693,192 - 2,693,192 38,361 - 38,361 4,091 - 4,091 20,595,782 2,840 20,598,622 20,897,324 - 20,897,324 20,897,324 - 20,897,324 (301,541) 2,840 (298,702) 100,000 100,000 (100,000) - (100,000) (100,000) 100,000 - (401,541) 102,840 (298,702) 6,610,117 1,270,010 7,880,127 $ 6,208,576 $ 1,372,849 $ 7,581,425 115 Deschutes County Rural Law Enforcement District Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Taxes - property Fines, forfeitures and penalties Investment earnings Intergovernmental Charges for services Contributions and donations Other Total revenues EXPENDITURES Current Public safety Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Operating Reserve Fund Fund Total $ 8,235,345 $ - $ 8,235,345 171,967 - 171,967 22,902 7,965 30,867 4,033,345 - 4,033,345 23,354 - 23,354 12,030 - 12,030 13,035 - 13,035 12,511,978 7,965 12,519,944 12,398,716 - 12,398,716 12,398,716 - 12,398,716 113,262 7,965 121,227 100,000 (100,000) - (100,000) 100,000 100,000 (100,000) 13,262 107,965 121,227 3,097,325 1,268,064 4,365,389 $ 3,110,587 $ 1,376,030 $ 4,486,616 116 Deschutes County Road Department Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Special assessments Investment earnings Intergovernmental Charges for services Other Total revenues EXPENDITURES Current County roads Capital outlay Total expenditures Excess (deficiency) of revenues overrevenues OTHER FINANCING SOURCES (USES) Inter -fund Transfers in Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Road Dept Road Bldg Road Operating and Equip Improvement Fund Fund Reserve Total $ 11,020 $ - $ - $ 11,020 57,195 4,272 74 61,541 15,523,135 - - 15,523,135 1,227,418 - - 1,227,418 15,132 - - 15,132 13,218,121 17,315 121,455 659,048 3,494,323 (672,091) 13,235,436 780,503 14,015,940 74 2,822,306 282,148 - - 282,148 - 450,000 - 450,000 (450,000) - - (450,000) (167,852) 450,000 - 282,148 3,326,471 (222,091) 74 3,104,454 8,117,017 915,366 12,253 9,044,636 $ 11,443,488 $ 693,275 $ 12,327 $ 12,149,090 117 Deschutes County Deschutes County 9-1-1 County Service District Operating Fund and Sub -Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Local Taxes - property Investment earnings Rents Charges for services Local State Federal Total revenues EXPENDITURES Current General services Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Deschutes County 9-1-1 Des Co 9-1-1 Operating Equipment Fund Reserve Total $ 6,450,574 $ - $ 6,450,574 43,373 40,700 84,073 402,809 - 402,809 73,701 - 73,701 798,589 - 798,589 46,514 - 46,514 7,815,559 40,700 7,856,259 6,417,138 - 6,417,138 66,498 - 66,498 6,483,636 - 6,483,636 1,331,923 40,700 1,372,624 7,800,000 (7,800,000) (7,800,000) 7,800,000 7,800,000 (7,800,000) (6,468,077) 7,840,700 1,372,624 10,436,247 2,311,462 12,747,709 $ 3,968,170 $ 10,152,162 $ 14,120,332 118 Combining and Individual Fund Statements and Schedules — Nonmajor Funds June 30, 2014 Deschutes County Combining Nonmajor Governmental Funds June 30, 2014 Deschutes County Deschutes County Nonmajor Governmental Funds Combining Balance Sheet Year Ended June 30, 2014 119 Special Capital Nonmajor Revenue Debt Service Project Governmental Funds Funds Funds Funds ASSETS Cash and cash equivalents $ 17,865,844 $ 182,960 $ 151,713 $ 18,200,516 Investments, at fair value; plus 20,609,424 275,425 228,386 21,113,235 accrued interest Taxes receivable 680,332 3,319 - 683,651 Accounts receivable 1,441,578 39,251 380,319 1,861,148 Notes and contracts receivable 918,992 - - 918,992 Total assets $ 41,516,169 $ 500,955 $ 760,417 $ 42,777,542 LIABILITIES Accounts payable $ 1,510,046 $ - $ 154,126 $ 1,664,172 Due to other funds 6,219 - - 6,219 Deposits 9,427 - - 9,427 Unearned revenues 575,167 9,972 - 585,138 Total liabilities 2,100,858 9,972 154,126 2,264,956 DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes 174,065 2,937 - 177,002 Unavailable revenue - loans 903,045 - - 903,045 Unavailable revenue - contracts of sale 15,947 - - 15,947 Total deferred inflow of resources 1,093,056 2,937 - 1,095,993 FUND BALANCES Assigned 38,322,254 488,047 606,292 39,416,593 Total fund balances 38,322,254 488,047 606,292 39,416,593 Total liabilities, deferred inflow of resources and fund balances $ 41,516,169 $ 500,955 $ 760,417 $ 42,777,542 119 Deschutes County Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 120 Special Debt Capital Nonmajor Revenue Service Project Governmental Funds Funds Funds Funds REVENUES Local Taxes -property $ 5,447,608 $ 2,105,057 $ - $ 7,552,665 Taxes - other 4,340,159 - - 4,340,159 Licenses and permits 1,115,687 - - 1,115,687 Fines, forfeitures and penalties 1,026,007 - - 1,026,007 Special assessments - 114,979 - 114,979 Investment earnings 224,351 47,701 5,449 277,501 Rents 20,391 1,221,692 500 1,242,583 Charges for services 7,917,126 1,194,344 - 9,111,470 Contributions and donations 41,610 - 407 42,017 Loan repayments 14,973 - - 14,973 Other 92,374 - - 92,374 Intergovernmental Local 938,830 - - 938,830 State 23,254,621 - 17,250 23,271,871 Federal 1,656,323 - 373,069 2,029,393 Total revenues 46,090,060 4,683,773 396,676 51,170,508 EXPENDITURES Current General government 10,808,213 - - 10,808,213 Public safety 9,786,987 - - 9,786,987 County roads 870,148 - - 870,148 Health and welfare 20,223,795 - - 20,223,795 Education 685,916 - - 685,916 Debt service Principal 22,501 5,364,516 - 5,387,017 Interest 145 2,421,249 - 2,421,394 Trustee fees - 27,810 - 27,810 Capital outlay 337,003 - 1,234,613 1,571,616 Total expenditures 42,734,707 7,813,575 1,234,613 51,782,894 Excess (deficiency) of revenues over expenditures 3,355,353 (3,129,802) (837,937) (612,386) OTHER FINANCING SOURCES (USES) Transfers in from other funds 4,659,094 2,561,765 555,000 7,775,859 Transfer out to other funds (1,443,673) - (20,000) (1,463,673) Notes issued - - 150,000 150,000 Total other financing sources (uses) 3,215,421 2,561,765 685,000 6,462,186 Net change in fund balances 6,570,774 (568,037) (152,937) 5,849,800 Fund balance - Beginning of year 31,751,480 1,056,084 759,229 33,566,793 Fund balance - End of year $ 38,322,255 $ 488,047 $ 606,292 $ 39,416,593 120 Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 (continued) 121 Industrial Park Park Justice Lands Acquisition & Development Court Proceeds Development Fees ASSETS Cash and cash equivalents $ 41,448 $ 99,538 $ - $ 38,892 Investments, at fair value; plus accrued interest 61,191 149,842 - 58,548 Taxes receivable - - - - Accounts receivable 31,759 - 26,104 - Notes and contracts receivable - 15,947 - - Total assets $ 134,399 $ 265,327 $ 26,104 $ 97,440 LIABILITIES Accounts payable $ 4,063 $ - $ - $ 760 Deposits - - - - Due to other funds - - 6,219 - Unearned revenues - 410 - 7,634 Total liabilities 4,063 410 6,219 8,394 DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -loans - - - - Unavailable revenue -contracts of sale - 15,947 - - Total deferred inflow of resources - 15,947 - - FUND BALANCES Assigned 130,335 248,970 19,885 89,046 Total fund balances 130,335 248,970 19,885 89,046 Total liabilities, deferred inflow of resources and fund balances $ 134,399 $ 265,327 $ 26,104 $ 97,440 (continued) 121 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 PERS Special Taylor Transient Reserve Transportation Grazing Room Tax $ 10,172,086 $ 157,938 $ 26,147 $ 4,060,090 $ 54,321 $ 10,436 $ 28,302 6,111,996 81,774 15,711 42,606 - - - 483,801 - 21,843 - - $ 10,172,086 $ 157,938 $ 26,147 $ 554,709 $ - $ 156,317 $ - $ 37,332 - - - 1,595 156,317 - - 38,927 10,172,086 1,622 26,147 515,782 10,172,086 1,622 26,147 515,782 $ 10,172,086 $ 157,938 $ 26,147 $ 554,709 (continued) 122 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 Video Transient Foreclosed Victims' Lottery Room Tax -1% Land Sales Assistance $ 24,725 $ 42,210 $ 45,187 $ 19,858 37,221 63,542 68,023 29,811 - - - 12,011 $ 61,946 $ 105,752 $ 113,210 $ 61,679 $ 50,459 $ 105,733 $ 2,107 $ 2,011 - - - 7,665 50,459 105,733 2,107 9,676 11,487 19 111,103 52,003 11,487 19 111,103 52,003 $ 61,946 $ 105,752 $ 113,210 $ 61,679 (continued) 123 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 County Children & Des Co Law Clerk Families Communication Library Records Commission System $ 169,156 $ 147,570 $ 136,009 $ 118,680 254,645 222,149 204,745 178,659 - 204,023 - $ 423,802 $ 369,719 $ 544,777 $ 297,339 $ 7,557 $ 201 $ 209,855 $ 3,261 7,557 201 209,855 3,261 416,244 369,518 334,921 294,079 416,244 369,518 334,921 294,079 $ 423,802 $ 369,719 $ 544,777 $ 297,339 (continued) 124 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 Des Co Communication Public Public Health System Res Health Healthy Start Reserve $ 160,622 $ 899,622 $ 89,952 $ 134,050 241,797 1,352,922 135,413 201,797 - 170,051 - - $ 402,419 $ 2,422,594 $ 225,365 $ 335,847 $ 415,032 $ 166 454,419 _ 869,617 402,419 1,552,977 225,365 335,847 402,419 1,552,977 225,365 335,847 $ 402,419 $ 2,422,594 $ 225,365 $ 335,847 (continued) 125 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 OHP - Mental Acute Care OHP - Alochol / Community Health Services Services Drug Services Development $ 3,119,511 $ 465,701 $ 887,730 $ 804,551 4,696,063 701,060 1,336,375 1,210,632 571,572 32,956 127,473 116,202 - - - 60,000 $ 8,387,146 $ 1,199,717 $ 2,351,578 $ 2,191,385 $ - $ 97,351 $ - $ 93,698 - - - 130 - 97,351 - 93,828 - - - 60,000 - - - 60,000 8,387,146 1,102,366 2,351,578 2,037,557 8,387,146 1,102,366 2,351,578 2,037,557 $ 8,387,146 $ 1,199,717 $ 2,351,578 $ 2,191,385 (continued) 126 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 CDD Natural Groundwater Newberry GIS Resource Partnership Neighborhood Dedicated Protection $ 21,432 $ 125,048 $ 8,338 $ 77,408 32,263 188,245 12,553 116,528 - - - 93,812 - 843,045 - - $ 53,695 $ 1,156,337 $ 20,891 $ 287,747 $ 31,079 31,079 - 843,045 - - 843,045 - 53,695 313,292 20,891 256,668 53,695 313,292 20,891 256,668 $ 53,695 $ 1,156,337 $ 20,891 $ 287,747 (continued) 127 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 Federal Public Land Countywide Forest Title Corner Transportation III Surveyor Preservation SDC Imp $ 102,354 $ 37,017 $ 213,129 $ 719,218 154,082 55,725 320,840 1,082,700 $ 92,742 $ 1,801,919 $ 256,435 $ 533,969 $ 3,349 3,349 253,086 92,742 533,969 1,801,919 253,086 92,742 533,969 1,801,919 $ 256,435 $ 92,742 $ 533,969 $ 1,801,919 (continued) 128 Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 Des County Adult Parole Extension Black Butte Dog Control & Probation & 4-H Ranch ASSETS Cash and cash equivalents $ 100,455 $ 472,628 $ 217,641 $ 870,729 Investments, at fair value; plus accrued interest 151,223 711,110 327,633 - Taxes receivable - - 14,615 32,729 Accounts receivable 5,061 373 494 - Notes and contracts receivable - - - - Total assets $ 256,739 $ 1,184,111 $ 560,383 $ 903,458 LIABILITIES Accounts payable $ 55,427 $ 51,919 $ 10,766 $ 1,158 Deposits - - - - Due to other funds - - - - Unearned revenues - - 112,574 - Total liabilities 55,427 51,919 123,340 1,158 DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes - - 12,941 28,940 Unavailable revenue -loans - - - - Unavailable revenue -contracts of sale - - - - Total deferred inflow of resources - - 12,941 28,940 FUND BALANCES Assigned 201,313 1,132,192 424,102 873,360 Total fund balance 201,313 1,132,192 424,102 873,360 Total liabilities, deferred inflow of resources and fund balances $ 256,739 $ 1,184,111 $ 560,383 $ 903,458 (continued) 129 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Deposits Due to other funds Unearned revenues Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -loans Unavailable revenue -contracts of sale Total deferred inflow of resources FUND BALANCES Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2014 Sunriver Total Nonmajor Service Special District Revenue Funds $ 3,302,286 $ 17,865,844 - 20,609,424 149,187 680,332 27,843 1,441,578 - 918,992 $ 3,479,316 $ 41,516,169 $ 170,611 $ 1,510,046 - 9,427 6,219 - 575,167 170,611 2,100,858 132,184 174,065 - 903,045 - 15,947 132,184 1,093,056 3,176,522 38,322,254 3,176,522 38,322,254 $ 3,479,316 $ 41,516,169 130 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Total assets LIABILITIES Accounts payable Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property tax Total deferred inflow of resources FUND BALANCES Restricted Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes County Deschutes County Extension 4-H County Service District Combining Balance Sheet June 30, 2014 131 Des County Ext & 4-H Des County Operating Ext & 4-H Fund Construction Total $ 75,555 $ 142,086 $ 217,641 113,740 213,893 327,633 14,615 - 14,615 494 - 494 $ 204,404 $ 355,979 $ 560,383 $ 10,766 $ - $ 10,766 112,574 - 112,574 123,340 - 123,340 12,941 - 12,941 12,941 - 12,941 68,123 355,979 424,102 68,123 355,979 424,102 $ 204,404 $ 355,979 $ 560,383 131 ASSETS Cash and cash equivalents Taxes receivable Accounts receivable Total assets LIABILITIES Accounts payable Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue -property taxes Total deferred inflow of resources FUND BALANCES Restricted Total fund balances Total liabilities, deferred inflow of resources and fund balances Deschutes County Deschutes County Sunriver Service District Combining Balance Sheet June 30, 2014 Sunriver Service District Sunriver Operating Service District Fund Reserve Total $ 2,427,472 $ 874,814 $ 3,302,286 149,187 - 149,187 27,843 - 27,843 $ 2,604,502 $ 874,814 $ 3,479,316 $ 170,611 $ - $ 170,611 170,611 - 170,611 132,183 132,183 132,183 - 132,183 2,301,708 874,814 3,176,522 2,301,708 874,814 3,176,522 $ 2,604,502 $ 874,814 $ 3,479,316 132 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 Industrial Park Grant Justice Lands Acquisition & Projects Court Proceeds Development REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - 425,632 471 - Investment earnings 27 708 3,861 141 Rents - - 6,984 - Charges for services - - - - Contributions and donations - - - - Loan repayments - - 14,973 - Other - - 2,938 - Intergovernmental Local - - - - State - - - 204,778 Federal - - - - Total revenues 27 426,340 29,228 204,919 EXPENDITURES Current General government 6,091 590,604 22,634 10,000 Public safety - - - - County roads - - - - Health and welfare - - - - Education - - - - Debt service Principal - - - - Interest - - - - Capital outlay - - - - Total expenditures 6,091 590,604 22,634 10,000 Excess (deficiency) of revenues over expenditures (6,064) (164,264) 6,593 194,919 OTHER FINANCING SOURCES (USES) Transfers in from other funds - 140,819 - - Transfer out to other funds - - - (180,000) Total other financing sources (uses) - 140,819 - (180,000) Net change in fund balances (6,064) (23,445) 6,593 14,919 Fund balance - Beginning of year 6,064 153,780 242,376 4,966 Fund balance - End of year $ - $ 130,335 $ 248,970 $ 19,885 (continued) 133 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Local Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Loan repayments Other Intergovernmental Local State Federal Total revenues EXPENDITURES Current General government Public safety County roads Health and welfare Education Debt service Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Transfer out to other funds Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Park Development PERS County Special School Transportation 2,800 - - - 587 60,354 149 483 - 307,832 - - 5,996 - - - - 265,868 314,633 - - 419,789 - 9,382 368,185 685,806 315,116 7,914 850 - - - 314,633 685,916 - 7,914 850 685,916 314,633 1,469 367,335 (110) 483 1,469 367,335 (110) 483 87,578 9,804,750 110 1,139 $ 89,046 $ 10,172,086 $ - $ 1,622 (continued) 134 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 Taylor Transient Video Transient Grazing Room Tax Lottery Room Tax -1% REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - 3,794,816 - 545,343 Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 144 4,340 945 936 Rents - - - - Charges for services - - - - Contributions and donations - - - - Loan repayments - - - - Other - - - - Intergovernmental Local - - - - State 3,228 - 576,502 - Federal - - - - Total revenues 3,372 3,799,157 577,447 546,279 EXPENDITURES Current General government - 3,610,787 682,723 370,223 Public safety - - - - County roads - - - - Health and welfare - - - - Education - - - - Debt service Principal - - - - Interest - - - - Capital outlay - - - - Total expenditures - 3,610,787 682,723 370,223 Excess (deficiency) of revenues over expenditures 3,372 188,370 (105,276) 176,055 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - - Transfer out to other funds - (25,744) - (237,156) Total other financing sources (uses) - (25,744) - (237,156) Net change in fund balances 3,372 162,626 (105,276) (61,101) Fund balance - Beginning of year 22,775 353,156 116,763 61,119 Fund balance - End of year $ 26,147 $ 515,782 $ 11,487 $ 19 (continued) 135 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 (continued) 136 Foreclosed Victims' County Clerk Land Sales Assistance Law Library Records REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - 175 - - Investment earnings 423 297 2,593 2,104 Rents - - - - Charges for services - 31,885 88 98,996 Contributions and donations - 27 - - Loan repayments - - - - Other 84,150 - - - Intergovernmental Local - - - - State - 98,569 181,336 - Federal - 48,043 - - Total revenues 84,573 178,996 184,017 101,099 EXPENDITURES Current General government 86,171 - 178,051 94,556 Public safety - 369,556 - - County roads - - - - Health and welfare - - - - Education - - - - Debt service Principal - - - - Interest - - - - Capital outlay - - - - Total expenditures 86,171 369,556 178,051 94,556 Excess (deficiency) of revenues over expenditures (1,598) (190,560) 5,966 6,543 OTHER FINANCING SOURCES (USES) Transfers in from other funds - 209,687 - - Transfer out to other funds - - - - Total other financing sources (uses) - 209,687 - - Net change in fund balances (1,598) 19,127 5,966 6,543 Fund balance - Beginning of year 112,701 32,876 410,279 362,975 Fund balance - End of year $ 111,103 $ 52,003 $ 416,244 $ 369,518 (continued) 136 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Local Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Loan repayments Other Intergovernmental Local State Federal Total revenues EXPENDITURES Current General government Public safety County roads Health and welfare Education Debt service Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Transfer out to other funds Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Children & Des Co Des Co Families Court Communication Communication Commission Facilities System System Res 77,873 68,745 - - 3,094 98 2,715 1,767 - - 5,004 - 9,298 - 514,705 - 180 - - - 329,624 - - 200,000 436,636 - - - 465,511 - - - 1,322,217 68,843 522,424 201,767 68,843 347,709 - 1,903,791 - - - 1,903,791 68,843 347,709 - (581,575) 368,089 174,714 201,767 (143,957) 368,089 - (143,957) - (213,486) - 30,757 201,767 548,407 - 263,321 200,653 $ 334,921 $ - $ 294,079 $ 402,419 (continued) 137 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 (continued) 138 Public Public Health OHP - Mental Health Healthy Start Reserve Health Services REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties 155 - - - Investment earnings 9,718 1,524 2,136 39,185 Rents - - - - Charges for services 1,415,688 24 - - Contributions and donations 38,192 4 - - Loan repayments - - - - Other - - - - Intergovernmental Local 139,171 - - - State 4,373,433 20,154 - 10,500,244 Federal 161,576 - - - Total revenues 6,137,934 21,706 2,136 10,539,429 EXPENDITURES Current General government - - - - Public safety - - - - County roads - - - - Health and welfare 8,500,903 75,620 - 6,838,456 Education - - - - Debt service Principal - - - - Interest - - - - Capital outlay - - - - Total expenditures 8,500,903 75,620 - 6,838,456 Excess (deficiency) of revenues over expenditures (2,362,969) (53,913) 2,136 3,700,973 OTHER FINANCING SOURCES (USES) Transfers in from other funds 2,799,575 - - - Transfer out to other funds (157,320) - (33,000) (50,000) Total other financing sources (uses) 2,642,255 - (33,000) (50,000) Net change in fund balances 279,286 (53,913) (30,864) 3,650,973 Fund balance - Beginning of year 1,273,691 279,279 366,711 4,736,173 Fund balance -End of year $ 1,552,977 $ 225,365 $ 335,847 $ 8,387,146 (continued) 138 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Local Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Loan repayments Other Intergovernmental Local State Federal Total revenues EXPENDITURES Current General government Public safety County roads Health and welfare Education Debt service Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Transfer out to other funds CDD Acute Care OHP - Alcohol / Community Groundwater Services Drug Services Development Partnership - - 2,575 - 6,914 12,748 11,596 346 - - 3,060 - 24,610 - 4,196,669 - - - 264,039 - 951,897 1,509,423 13,000 - - - 41,430 6,023 983,421 1,522,171 4,532,370 6,370 4,182,924 71,250 548,478 1,606,982 - - - - - 22,501 - - - 145 - - 177,266 - 548,478 1,606,982 4,360,190 93,896 434,944 (84,810) 172,179 (87,526) (293,593) Total other financing sources (uses) (293,593) 495,360 60,000 (208,315) - 287,045 60,000 Net change in fund balances 141,351 (84,810) 459,224 (27,526) Fund balance - Beginning of year 961,015 2,436,388 1,578,333 81,222 Fund balance - End of year $ 1,102,366 $ 2,351,578 $ 2,037,557 $ 53,695 (continued) 139 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 Natural Federal Newberry GIS Resource Forest Title Neighborhood Dedicated Protection III REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 2,159 549 1,175 1,366 Rents - - - - Charges for services - 262,221 66,776 - Contributions and donations - - - - Loan repayments - - - - Other - - - - Intergovernmental Local - - - - State - 39,123 11,449 - Federal - - 375,667 138,283 Total revenues 2,159 301,893 455,067 139,649 EXPENDITURES Current General government 4,871 394,198 - - Public safety - - - - County roads - - 338,169 89,202 Health and welfare - - - - Education - - - - Debt service Principal - - - - Interest - - - - Capital outlay - - - - Total expenditures 4,871 394,198 338,169 89,202 Excess (deficiency) of revenues over expenditures (2,712) (92,305) 116,898 50,447 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - 22,416 - Transfer out to other funds (114,588) - - - Total other financing sources (uses) (114,588) - 22,416 - Net change in fund balances (117,300) (92,305) 139,314 50,447 Fund balance - Beginning of year 430,592 113,196 117,354 202,639 Fund balance - End of year $ 313,292 $ 20,891 $ 256,668 $ 253,086 (continued) 140 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 Public Land Countywide Corner Transportation Surveyor Preservation SDC Imp Dog Control REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits 24,665 - 812,272 275,950 Fines, forfeitures and penalties - - - 6,277 Investment earnings 501 4,538 8,592 1,590 Rents - - - - Charges for services 58,979 383,933 - 375 Contributions and donations - - - 3,206 Loan repayments - - - - Other - - - - Intergovernmental Local - - - - State - - - - Federal - - - - Total revenues 84,145 388,471 820,864 287,398 EXPENDITURES Current General government - - - - Public safety - - - - County roads 34,000 408,777 - - Health and welfare - - - 434,932 Education - - - - Debt service Principal - - - - Interest - - - - Capital outlay - - - - Total expenditures 34,000 408,777 - 434,932 Excess (deficiency) of revenues over expenditures 50,145 (20,306) 820,864 (147,535) OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - 111,959 Transfer out to other funds - - - - Total other financing sources (uses) - - - 111,959 Net change in fund balances 50,145 (20,306) 820,864 (35,576) Fund balance - Beginning of year 42,597 554,275 981,054 236,889 Fund balance - End of year $ 92,742 $ 533,969 $ 1,801,919 $ 201,313 (continued) 141 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 (continued) 142 Des County Extension & Black Butte Sunriver Adult Parole 4-H County Ranch Service & Probation Service Dist Service Dist District REVENUES Local Taxes -property $ - $ 406,097 $ 903,704 $ 4,137,807 Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties 444,104 - - - Investment earnings 8,206 3,597 4,864 17,282 Rents 1,323 4,020 - - Charges for services 187,047 86,614 26,137 245,250 Contributions and donations - - - - Loan repayments - - - - Other - - - 5,285 Intergovernmental Local - - - - State 3,744,147 5,356 - 4,845 Federal - - - - Total revenues 4,384,827 505,683 934,705 4,410,469 EXPENDITURES Current General government - 494,366 - - Public safety 4,451,154 - 838,872 3,710,853 County roads - - - - Health and welfare - - - - Education - - - - Debt service Principal - - - - Interest - - - - Capital outlay - - 37,851 121,886 Total expenditures 4,451,154 494,366 876,723 3,832,739 Excess (deficiency) of revenues over expenditures (66,327) 11,317 57,982 577,730 OTHER FINANCING SOURCES (USES) Transfers in from other funds 451,189 - - - Transfer out to other funds - - - - Total other financing sources (uses) 451,189 - - - Net change in fund balances 384,862 11,317 57,982 577,730 Fund balance - Beginning of year 747,330 412,785 815,378 2,598,792 Fund balance - End of year $ 1,132,192 $ 424,102 $ 873,360 $ 3,176,522 (continued) 142 Deschutes County Nonmajor Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 Total Nonmajor Excess (deficiency) of revenues over expenditures 3,355,353 OTHER FINANCING SOURCES (USES) Transfers in from other funds 4,659,094 Transfer out to other funds (1,443,673) Total other financing sources (uses) 3,215,421 Net change in fund balances 6,570,774 Fund balance - Beginning of year 31,751,480 Fund balance - End of year $ 38,322,255 143 Special Revenue Funds REVENUES Local Taxes - property $ 5,447,608 Taxes - other 4,340,159 Licenses and permits 1,115,687 Fines, forfeitures and penalties 1,026,007 Investment earnings 224,351 Rents 20,391 Charges for services 7,917,126 Contributions and donations 41,610 Loan repayments 14,973 Other 92,374 Intergovernmental Local 938,830 State 23,254,621 Federal 1,656,324 Total revenues 46,090,060 EXPENDITURES Current General government 10,808,213 Public safety 9,786,987 County roads 870,148 Health and welfare 20,223,795 Education 685,916 Debt service Principal 22,501 Interest 145 Capital outlay 337,003 Total expenditures 42,734,707 Excess (deficiency) of revenues over expenditures 3,355,353 OTHER FINANCING SOURCES (USES) Transfers in from other funds 4,659,094 Transfer out to other funds (1,443,673) Total other financing sources (uses) 3,215,421 Net change in fund balances 6,570,774 Fund balance - Beginning of year 31,751,480 Fund balance - End of year $ 38,322,255 143 Deschutes County Deschutes County Extension 4-H County Service District Combining Schedule of Revenues, Expenditures and Changes in Fund Balance Year Ended June 30, 2014 REVENUES Local Taxes - property Investment earnings Rents Charges for services Intergovernmental State Total revenues EXPENDITURES Current General services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Des County Ext & 4-H Des County Operating Ext & 4-H Fund Construction Total $ 406,097 $ - $ 406,097 1,649 1,947 3,597 4,020 - 4,020 86,614 - 86,614 5,356 - 5,356 503,736 1,947 505,683 494,366 - 494,366 494,366 - 494,366 9,370 1,947 11,317 - 50,000 50,000 (50,000) - (50,000) (50,000) 50,000 - (40,630) 51,947 11,317 108,753 304,032 412,785 $ 68,123 $ 355,979 $ 424,102 144 Deschutes County Deschutes County Sunriver Service District Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Local Taxes - property Investment earnings Charges for services Other Intergovernmental State Total revenues EXPENDITURES Current Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Sunriver Service District Sunriver Operating Service District $ 4,137,807 $ - $ 4,137,807 14,068 3,214 17,282 245,250 - 245,250 - 5,285 5,285 4,845 - 4,845 4,401,970 8,499 4,410,469 3,710,733 120 3,710,853 47,703 74,183 121,886 3,758,436 74,303 3,832,739 643,534 (65,804) 577,730 250,000 250,000 (250,000) - (250,000) (250,000) 250,000 - 393,534 184,196 577,730 1,908,174 690,618 2,598,792 $ 2,301,708 $ 874,814 $ 3,176,522 145 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Justice Court Year Ended June 30, 2014 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties $ 422,500 $ 422,500 $ 425,632 $ 3,132 Investment earnings 900 900 708 (192) Charges for services 600 600 - (600) Total revenues 424,000 424,000 426,340 2,340 EXPENDITURES Personnel services 445,984 445,984 407,456 38,528 Materials and services 190,210 190,210 183,148 7,062 Total expenditures 636,194 636,194 590,604 45,590 Operating contingency 52,866 52,866 - 52,866 Total expenditures 689,060 689,060 590,604 98,456 Excess (deficiency) of revenues over expenditures (265,060) (265,060) (164,264) 100,796 OTHER FINANCING SOURCES Transfers in 140,819 140,819 140,819 - Net other financing sources 140,819 140,819 140,819 - Net change in fund balance (124,241) (124,241) (23,445) 100,796 Fund balance - Beginning of year 124,241 124,241 153,780 29,539 Fund balance - End of year $ - $ - $ 130,335 $ 130,335 146 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Grant Projects Year Ended June 30, 2014 147 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 27 $ 27 Total revenues - - 27 27 EXPENDITURES Materials and services 6,000 6,100 6,091 9 Total expenditures 6,000 6,100 6,091 9 Excess (deficiency) of revenues over expenditures (6,000) (6,100) (6,064) 36 OTHER FINANCING SOURCES Appropriation transfer - 100 - (100) Total other financing sources - 100 - (100) Net change in fund balance (6,000) (6,000) (6,064) (64) Fund balance - Beginning of year 6,000 6,000 6,064 64 Fund balance - End of year $ - $ - $ - $ - 147 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Industrial Lands Proceeds Year Ended June 30, 2014 REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Loan repayments Other Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ - $ - $ 471 $ 471 4,000 4,000 3,861 (139) 5,000 5,000 6,984 1,984 - - 14,973 14,973 200,000 200,000 2,938 (197,062) 209,000 209,000 29,228 (179,772) 33,136 33,136 22,634 10,502 420,864 420,864 - 420,864 454,000 454,000 22,634 431,366 (245,000) (245,000) 6,593 251,593 245,000 245,000 242,376 (2,624) $ - $ - $ 248,970 $ 248,970 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park Acquisition and Development Year Ended June 30, 2014 149 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 150 $ 150 $ 141 $ (9) Intergovernmental State 200,000 200,000 204,778 4,778 Total revenues 200,150 200,150 204,919 4,769 EXPENDITURES Materials and services 45,000 45,000 10,000 35,000 Capital outlay 100 100 - 100 Total 45,100 45,100 10,000 35,100 Operating contingency 10,050 10,050 - 10,050 Total expenditures 55,150 55,150 10,000 45,150 Excess (deficiency) of revenues over expenditures 145,000 145,000 194,919 49,919 OTHER FINANCING USES Transfer out (180,000) (180,000) (180,000) - Total other financing uses (180,000) (180,000) (180,000) - Net change in fund balance (35,000) (35,000) 14,919 49,919 Fund balance - Beginning of year 35,000 35,000 4,966 (30,034) Fund balance - End of year $ - $ - $ 19,885 $ 19,885 149 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Park Development Fees Year Ended June 30, 2014 150 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Licenses and permits $ - $ - $ 2,800 $ 2,800 Investment earnings 1,000 1,000 587 (413) Intergovernmental Local - - 5,996 5,996 Total revenues 1,000 1,000 9,382 8,382 EXPENDITURES Materials and services 125,900 125,900 7,914 117,986 Capital outlay 100 100 - 100 Total expenditures 126,000 126,000 7,914 118,086 Net change in fund balance (125,000) (125,000) 1,469 126,469 Fund balance - Beginning of year 125,000 125,000 87,578 (37,422) Fund balance - End of year $ - $ - $ 89,046 $ 89,046 150 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual County School Fund Year Ended June 30, 2014 151 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 200 $ 200 $ 149 $ (51) Intergovernmental State 269,800 269,800 265,868 (3,932) Federal 125,000 125,000 419,789 294,789 Total revenues 395,000 395,000 685,806 290,806 EXPENDITURES Materials and services 395,000 690,000 685,916 4,084 Total expenditures 395,000 690,000 685,916 4,084 Excess (deficiency) of revenues over expenditures - (295,000) (110) 294,890 OTHER FINANCING SOURCES Appropriation transfer - 295,000 - (295,000) Total other financing sources - 295,000 - (295,000) Net change in fund balance - - (110) (110) Fund balance - Beginning of year - - 110 110 Fund balance - End of year $ - $ - $ - $ - 151 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Special Transportation Fund Year Ended June 30, 2014 REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 600 $ 600 $ 483 $ (117) 500,000 500,000 314,633 (185,367) 500,600 500,600 315,116 (185,484) 510,500 510,500 314,633 195,867 (10,000) (10,000) 483 10,483 10,000 10,000 1,139 (8,861) $ - $ - $ 1,622 $ 1,622 152 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Taylor Grazing Year Ended June 30, 2014 REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Materials and services Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 100 $ 100 $ 144 $ 44 5,000 5,000 3,228 (1,772) 5,100 5,100 3,372 (1,728) 25,100 25,100 - 25,100 25,100 25,100 - 25,100 (20,000) (20,000) 3,372 23,372 20,000 20,000 22,775 2,775 $ - $ - $ 26,147 $ 26,147 153 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Transient Room Tax Year Ended June 30, 2014 REVENUES Local Taxes - other Investment earnings Total revenues EXPENDITURES Personnel Materials and services Total expenditures Excess (deficiency) of revenues over expenditures Variance with Original Budget Final Budget Actual Final Budget $ 2,931,857 $ 2,931,857 $ 3,794,816 $ 862,959 2,000 2,000 4,340.36 2,340 2,933,857 2,933,857 3,799,157 865,300 45,841 48,741 46,814 1,927 2,862,272 3,568,772 3,563,973 4,799 2,908,113 3,617,513 3,610,787 6,726 25,744 (683,656) 188,370 872,026 OTHER FINANCING SOURCES (USES) Appropriation transfer - 709,400 - (709,400) Transfer out (25,744) (25,744) (25,744) - Total other financing sources (uses) (25,744) 683,656 (25,744) (709,400) Net change in fund balance - - 162,626 162,626 Fund balance - Beginning of year - - 353,156 353,156 Fund balance - End of year $ - $ - $ 515,782 $ 515,782 154 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual PERS Reserve Fund Year Ended June 30, 2014 REVENUES Local Investment earnings Charges for services Total revenues EXPENDITURES Personnel services Materials and services Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 155 Actual Variance with Original Budget Final Budget Amounts Final Budget $ 40,000 $ 40,000 $ 60,354 $ 20,354 - - 307,832 307,832 40,000 40,000 368,185 328,185 2,230,000 2,230,000 - 2,230,000 1,000 1,000 850 150 2,231,000 2,231,000 850 2,230,150 (2,191,000) (2,191,000) 367,335 2,558,335 9,810,000 9,810,000 9,804,750 (5,250) $ 7,619,000 $ 7,619,000 $ 10,172,086 $ 2,553,086 155 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Video Lottery Year Ended June 30, 2014 REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 945 $ (55) 600,000 600,000 576,502 (23,498) 601,000 601,000 577,447 (23,553) 12,009 2,749 947 1,803 629,595 698,151 681,776 16,375 59,296 - - - 701,000 701,000 682,723 18,278 (100,000) (100,000) (105,276) (5,276) (100,000) (100,000) (105,276) (5,276) 100,000 100,000 116,763 16,763 $ - $ - $ 11,487 $ 11,487 156 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Transient Room Tax — I% Year Ended June 30, 2014 OTHER FINANCING SOURCES (USES) Appropriation transfer - 120,600 - (120,600) Transfer out (189,156) (237,156) (237,156) - Total other financing sources (uses) (189,156) (116,556) (237,156) (120,600) Net change in fund balance - - (61,101) (61,101) Fund balance - Beginning of year - - 61,119 61,119 Fund balance - End of year $ - $ - $ 19 $ 19 157 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Taxes - other $ 488,643 $ 488,643 $ 545,343 $ 56,700 Investment earnings 500 500 935.64 436 Total revenues 489,143 489,143 546,279 57,136 EXPENDITURES Personnel 7,640 8,240 7,802 438 Materials and services 292,347 364,347 362,421 1,926 Total 299,987 372,587 370,223 2,364 Excess (deficiency) of revenues over expenditures 189,156 116,556 176,055 59,499 OTHER FINANCING SOURCES (USES) Appropriation transfer - 120,600 - (120,600) Transfer out (189,156) (237,156) (237,156) - Total other financing sources (uses) (189,156) (116,556) (237,156) (120,600) Net change in fund balance - - (61,101) (61,101) Fund balance - Beginning of year - - 61,119 61,119 Fund balance - End of year $ - $ - $ 19 $ 19 157 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Foreclosed Land Sales Year Ended June 30, 2014 EXPENDITURES Materials and services Total Operating contingency Total expenditures Net change in fund balance 89,448 89,448 86,171 3,277 89,448 89,448 86,171 3,277 101,552 101,552 101,552 191,000 191,000 86,171 104,829 (70,000) (70,000) (1,598) 68,402 Fund balance - Beginning of year 70,000 70,000 112,701 42,701 Fund balance - End of year $ - $ - $ 111,103 $ 111,103 158 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 1,000 $ 1,000 $ 423 $ (577) Other 120,000 120,000 84,150 (35,850) Total revenues 121,000 121,000 84,573 (36,427) EXPENDITURES Materials and services Total Operating contingency Total expenditures Net change in fund balance 89,448 89,448 86,171 3,277 89,448 89,448 86,171 3,277 101,552 101,552 101,552 191,000 191,000 86,171 104,829 (70,000) (70,000) (1,598) 68,402 Fund balance - Beginning of year 70,000 70,000 112,701 42,701 Fund balance - End of year $ - $ - $ 111,103 $ 111,103 158 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Victims' Assistance Year Ended June 30, 2014 REVENUES Local Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Intergovernmental State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 2,000 $ 2,000 $ 175 $ (1,825) 300 300 297 (3) 32,500 32,500 31,885 (615) 100 100 27 (73) 85,363 98,569 98,569 - 48,043 48,043 48,043 - 168,306 181,512 178,996 (2,516) 338,101 345,101 339,093 6,008 32,392 38,598 30,463 8,135 100 100 - 100 370,593 383,799 369,556 14,243 34,371 34,371 - 34,371 404,964 418,170 369,556 48,614 (236,658) (236,658) (190,560) 46,098 209,687 209,687 209,687 - 209,687 209,687 209,687 - (26,971) (26,971) 19,127 46,098 26,971 26,971 32,876 5,905 $ - $ - $ 52,003 $ 52,003 159 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Law Library Year Ended June 30, 2014 REVENUES Local Investment earnings Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 2,400 $ 2,400 $ 2,593 $ 193 - - 88 88 168,000 168,000 181,336 13,336 170,400 170,400 184,017 13,617 54,515 58,515 55,640 2,875 120,829 130,829 122,411 8,418 100 100 - 100 175,444 189,444 178,051 11,393 409,956 395,956 - 395,956 585,400 585,400 178,051 407,349 (415,000) (415,000) 5,966 420,966 415,000 415,000 410,279 (4,721) $ - $ - $ 416,244 $ 416,244 160 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual County Clerk Records Year Ended June 30, 2014 161 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 1,750 $ 1,750 $ 2,104 $ 354 Charges for services 102,500 102,500 98,996 (3,504) Total revenues 104,250 104,250 101,099 (3,151) EXPENDITURES Materials and services 216,531 216,531 94,556 121,975 Capital outlay 100 100 - 100 Total 216,631 216,631 94,556 122,075 Operating contingency 240,323 240,323 - 240,323 Total expenditures 456,954 456,954 94,556 362,398 Net change in fund balance (352,704) (352,704) 6,543 359,247 Fund balance - Beginning of year 352,704 352,704 362,975 10,271 Fund balance - End of year $ - $ - $ 369,518 $ 369,518 161 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Children and Families Commission Year Ended June 30, 2014 OTHER FINANCING SOURCES Transfers in 368,089 368,089 368,089 - Variance with 368,089 Original Budget Final Budget Actual Final Budget REVENUES (213,486) 162,218 Fund balance - Beginning of year 375,704 375,704 Local Fund balance - End of year $ - $ - $ 334,921 $ 334,921 Fines, forfeitures and penalties $ 75,034 $ 75,034 $ 77,873 $ 2,839 Investment earnings 1,000 1,000 3,094 2,094 Charges for services 2,000 7,600 9,298 1,698 Contributions and donations - - 180 180 Intergovernmental Local 350,375 350,375 329,624 (20,751) State 209,014 499,143 436,636 (62,507) Federal 451,811 629,086 465,511 (163,575) Total revenues 1,089,234 1,562,238 1,322,217 (240,021) EXPENDITURES Personnel services 573,849 539,665 501,770 37,895 Materials and services 1,093,135 1,530,796 1,402,021 128,775 Total 1,666,984 2,070,461 1,903,791 166,670 Operating contingency 166,043 235,570 - 235,570 Total expenditures 1,833,027 2,306,031 1,903,791 402,240 Excess (deficiency) of revenues over expenditures (743,793) (743,793) (581,575) 162,218 OTHER FINANCING SOURCES Transfers in 368,089 368,089 368,089 - Total other financing sources 368,089 368,089 368,089 - Net change in fund balance (375,704) (375,704) (213,486) 162,218 Fund balance - Beginning of year 375,704 375,704 548,407 172,703 Fund balance - End of year $ - $ - $ 334,921 $ 334,921 162 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Court Facilities Year Ended June 30, 2014 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties $ 99,318 $ 99,318 $ 68,745 $ (30,573) Investment earnings - - 98 98 Total revenues 99,318 99,318 68,843 (30,475) EXPENDITURES Materials and services 99,318 99,318 68,843 30,475 Total expenditures 99,318 99,318 68,843 30,475 Net change in fund balance - - - - Fund balance - Beginning of year - - - - Fund balance - End of year $ - $ - $ - $ - 163 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Deschutes County Communication System Year Ended June 30, 2014 164 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 3,000 $ 3,000 $ 2,715 $ (285) Rents - - 5,004 5,004 Charges for services 510,228 510,228 514,705 4,477 Total revenues 513,228 513,228 522,424 9,196 EXPENDITURES Personnel services 80,668 80,668 77,020 3,648 Materials and services 285,615 285,615 270,689 14,926 Capital outlay 100 100 - 100 Total 366,383 366,383 347,709 18,674 Operating contingency 258,127 258,127 - 258,127 Total expenditures 624,510 624,510 347,709 276,801 Excess (deficiency) of revenues over expenditures (111,282) (111,282) 174,714 285,996 OTHER FINANCING USES Transfers out (143,957) (43,957) (143,957) (100,000) Total other financing uses (143,957) (43,957) (143,957) (100,000) Net change in fund balance (255,239) (155,239) 30,757 185,996 Fund balance - Beginning of year 255,239 255,239 263,321 8,082 Fund balance - End of year $ - $ 100,000 $ 294,079 $ 194,079 164 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Deschutes County Communication System Reserve Year Ended June 30, 2014 165 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 500 $ 500 $ 1,767 $ 1,267 Intergovernmental 200,000 200,000 200,000 - Total revenues 200,500 200,500 201,767 1,267 Net change in fund balance 200,500 200,500 201,767 1,267 Fund balance - Beginning of year 200,650 200,650 200,653 3 Fund balance - End of year $ 401,150 $ 401,150 $ 402,419 $ 1,269 165 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Public Health Year Ended June 30, 2014 REVENUES Local Investment earnings Fines, forfeitures and penalties Charges for services Contributions and donations Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfer out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year (4,027,847) (4,027,847) (2,362,969) 1,664,878 2,799,575 2,799,575 2,799,575 - (157,320) (157,320) (157,320) - 2,642,255 2,642,255 2,642,255 - (1,385,592) (1,385,592) 279,286 1,664,878 1,385,592 1,385,592 1,273,691 (111,901) $ - $ - $ 1,552,977 $ 1,552,977 166 Variance with Original Budget Final Budget Actual Final Budget $ 6,000 $ 6,000 $ 9,718 $ 3,718 - - 155 155 1,625,092 1,530,892 1,415,688 (115,204) 32,715 166,723 38,192 (128,531) - 11,590 139,171 127,581 4,021,816 4,387,279 4,373,433 (13,846) 89,000 89,000 161,576 72,576 5,774,623 6,191,484 6,137,934 (53,550) 6,479,682 7,136,985 6,457,193 679,792 2,070,058 2,139,075 2,043,710 95,365 100 100 - 100 8,549,840 9,276,160 8,500,903 775,257 1,252,630 943,171 - 943,171 9,802,470 10,219,331 8,500,903 1,718,428 (4,027,847) (4,027,847) (2,362,969) 1,664,878 2,799,575 2,799,575 2,799,575 - (157,320) (157,320) (157,320) - 2,642,255 2,642,255 2,642,255 - (1,385,592) (1,385,592) 279,286 1,664,878 1,385,592 1,385,592 1,273,691 (111,901) $ - $ - $ 1,552,977 $ 1,552,977 166 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Healthy Start Year Ended June 30, 2014 REVENUES Local Investment earnings Charges for services Contributions and donations Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Total Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 2,000 $ 2,000 $ 1,524 $ (476) - - 24 24 - - 4 4 21,419 21,419 20,154 (1,265) 23,419 23,419 21,706 (1,713) 64,163 64,163 61,892 2,271 41,802 41,802 13,727 28,075 105,965 105,965 75,620 30,345 198,446 198,446 - 198,446 304,411 304,411 75,620 228,791 (280,992) (280,992) (53,913) (230,504) 280,992 280,992 279,279 (1,713) $ - $ - $ 225,365 $ (232,218) 167 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Public Health Reserve Year Ended June 30, 2014 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 2,300 $ 2,300 $ 2,136 $ (164) Total revenues 2,300 2,300 2,136 (164) EXPENDITURES Materials and services 100 100 - 100 Capital outlay 100 100 - 100 Total expenditures 200 200 - 200 Excess (deficiency) of revenues over expenditures 2,100 2,100 2,136 36 OTHER FINANCING USES Transfers out (33,000) (33,000) (33,000) - Total other financing uses (33,000) (33,000) (33,000) - Net change in fund balance (30,900) (30,900) (30,864) 36 Fund balance - Beginning of year 368,918 368,918 366,711 (2,207) Fund balance - End of year $ 338,018 $ 338,018 $ 335,847 $ (2,171) Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual OHP —Mental Health Services Year Ended June 30, 2014 169 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 16,500 $ 16,500 $ 39,185 $ 22,685 Intergovernmental State 6,698,643 6,698,643 10,500,244 3,801,601 Total revenues 6,715,143 6,715,143 10,539,429 3,824,286 EXPENDITURES 7,410,505 7,410,505 6,838,456 572,049 Total 7,410,505 7,410,505 6,838,456 572,049 Operating contingency 2,538,164 2,488,164 - 2,488,164 Total expenditures 9,948,669 9,898,669 6,838,456 3,060,213 Excess (deficiency) of revenues over expenditures (3,233,526) (3,183,526) 3,700,973 6,884,499 OTHER FINANCING SOURCES (USES) Transfers in 100 100 - (100) Transfers out (100) (50,100) (50,000) 100 Total other financing sources (uses) - (50,000) (50,000) - Net change in fund balance (3,233,526) (3,233,526) 3,650,973 6,884,499 Fund balance - Beginning of year 3,233,526 3,233,526 4,736,173 1,502,647 Fund balance - End of year $ - $ - $ 8,387,146 $ 8,387,146 169 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Acute Care Services Year Ended June 30, 2014 170 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 5,300 $ 5,300 $ 6,914 $ 1,614 Charges for services - - 24,610 24,610 Intergovernmental State 1,380,031 1,380,031 951,897 (428,134) Total revenues 1,385,331 1,385,331 983,421 (401,910) EXPENDITURES Materials and services 1,148,660 1,148,660 548,478 600,183 Total 1,148,660 1,148,660 548,478 600,183 Contingency 869,002 869,002 - 869,002 Total expenditures 2,017,662 2,017,662 548,478 1,469,185 Excess (deficiency) of revenues over expenditures (632,331) (632,331) 434,944 1,067,275 OTHER FINANCING USES Transfer out (293,593) (293,593) (293,593) - Total other financing uses (293,593) (293,593) (293,593) - Net change in fund balance (925,924) (925,924) 141,351 1,067,275 Fund balance - Beginning of year 925,924 925,924 961,015 35,091 Fund balance - End of year $ - $ - $ 1,102,366 $ 1,102,366 170 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual OHP — Alcohol / Drug Services Year Ended June 30, 2014 REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer in Transfer out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 12,000 $ 12,000 $ 12,748 $ 748 639,938 639,938 1,509,423 869,485 651,938 651,938 1,522,171 870,233 2,164,693 2,164,693 1,606,982 557,711 2,164,693 2,164,693 1,606,982 557,711 1,093,201 1,093,201 - 1,093,201 3,257,894 3,257,894 1,606,982 1,650,912 (2,605,956) (2,605,956) (84,810) 2,521,146 100 100 (100) (100) - (100) (2,605,956) (2,605,956) (84,810) 2,521,146 2,605,956 2,605,956 2,436,388 (169,568) $ - $ - $ 2,351,578 $ 2,351,578 171 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Year Ended June 30, 2014 172 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties $ 3,000 $ 3,000 $ 2,575 $ (425) Investment earnings 1,777 1,777 11,596 9,819 Rents 38,360 38,360 3,060 (35,300) Charges for services 2,907,651 2,907,651 4,196,669 1,289,018 Intergovernmental Local 204,800 204,800 264,039 59,239 State 13,000 13,000 13,000 - Federal - - 41,430 41,430 Total revenues 3,168,588 3,168,588 4,532,370 1,363,782 EXPENDITURES Personnel services 3,123,787 3,202,165 3,129,754 72,411 Materials and services 947,972 1,109,618 1,053,170 56,448 Capital outlay 250,800 250,800 177,266 73,534 Total 4,322,559 4,562,583 4,360,190 202,393 Operating contingency 384,103 144,079 - 144,079 Total expenditures 4,706,662 4,706,662 4,360,190 346,472 Excess (deficiency) of revenues over expenditures (1,538,074) (1,538,074) 172,179 1,710,253 OTHER FINANCING SOURCES (USES) Transfers in 1,050,099 1,050,099 495,360 (554,739) Transfers out (208,315) (208,315) (208,315) - Total other financing sources (uses) 841,784 841,784 287,045 (554,739) Net change in fund balance (696,290) (696,290) 459,224 1,155,514 Fund balance - Beginning of year 696,290 696,290 1,578,333 882,043 Fund balance - End of year $ - $ - $ 2,037,557 $ 2,037,557 172 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CDD Groundwater Partnership Year Ended June 30, 2014 173 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 600 $ 600 $ 346 $ (254) Intergovernmental Federal - - 6,023 6,023 Total revenues 600 600 6,370 5,770 EXPENDITURES Materials and services 278,432 278,432 71,250 207,182 Debt service 9,168 22,755 22,646 109 Total 287,600 301,187 93,896 207,291 Contingency 100,000 86,413 - 86,413 Total expenditures 387,600 387,600 93,896 293,704 Excess (deficiency) of revenues over expenditures (387,000) (387,000) (87,526) (299,474) OTHER FINANCING SOURCES Transfers in 300,000 300,000 60,000 (240,000) Total other financing sources 300,000 300,000 60,000 (240,000) Net change in fund balance (87,000) (87,000) (27,526) 59,474 Fund balance - Beginning of year 87,000 87,000 81,222 (5,778) Fund balance - End of year $ - $ - $ 53,695 $ 53,695 173 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Newberry Neighborhood Year Ended June 30, 2014 174 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 3,000 $ 3,000 $ 2,159 $ (841) Loan payments 20,000 20,000 - (20,000) Other 100,000 100,000 - (100,000) Total revenues 123,000 123,000 2,159 (120,841) EXPENDITURES Materials and services 100 20,100 4,871 15,229 Capital outlay 100 100 - 100 Total 200 20,200 4,871 15,329 Operating contingency 100,000 80,000 - 80,000 Total expenditures 100,200 100,200 4,871 95,329 Excess (deficiency) of revenues over expenditures 22,800 22,800 (2,712) (25,512) OTHER FINANCING USES Transfers out (354,588) (354,588) (114,588) 240,000 Total other financing uses (354,588) (354,588) (114,588) 240,000 Net change in fund balance (331,788) (331,788) (117,300) 214,488 Fund balance - Beginning of year 440,000 440,000 430,592 (9,408) Fund balance - End of year $ 108,212 $ 108,212 $ 313,292 $ 205,080 174 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual GIS Dedicated Fund Year Ended June 30, 2014 REVENUES Local Investment earnings Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 700 $ 700 $ 549 $ (151) 296,500 296,500 262,221 (34,279) 44,650 44,650 39,123 (5,527) 341,850 341,850 301,893 (39,957) 349,762 356,962 355,890 1,072 60,400 60,400 38,308 22,092 410,162 417,362 394,198 23,164 37,788 30,588 - 30,588 447,950 447,950 394,198 53,752 (106,100) (106,100) (92,305) 13,795 (106,100) (106,100) (92,305) 13,795 106,100 106,100 113,196 7,096 $ - $ - $ 20,891 $ 20,891 175 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Natural Resource Protection Year Ended June 30, 2014 176 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 1,175 $ 1,175 Charges for services 150,000 150,000 66,776 (83,224) Intergovernmental State - - 11,449 11,449 Federal 45,764 145,764 375,667 229,903 Total revenues 195,764 295,764 455,067 159,303 EXPENDITURES Personnel services 104,331 138,961 136,329 2,632 Materials and services 52,118 202,118 201,840 278 Total 156,449 341,079 338,169 2,910 Operating contingency 137,364 102,734 - 102,734 Total expenditures 293,813 443,813 338,169 105,644 Excess (deficiency) of revenues over expenditures (98,049) (148,049) 116,898 264,947 OTHER FINANCING SOURCES (USES) Appropriation transfer - 50,000 - (50,000) Transfers in - - 22,416 22,416 Total other financing sources (uses) - 50,000 22,416 (27,584) Net change in fund balance (98,049) (98,049) 139,314 237,363 Fund balance - Beginning of year 98,049 98,049 117,354 19,305 Fund balance - End of year $ - $ - $ 256,668 $ 256,668 176 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Federal Forest Title III Year Ended June 30, 2014 177 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 500 $ 500 $ 1,366 $ 866 Intergovernmental Federal - - 138,283 138,283 Total revenues 500 500 139,649 139,149 EXPENDITURES Materials and services 170,511 170,511 89,202 81,309 Total expenditures 170,511 170,511 89,202 81,309 Net change in fund balance (170,011) (170,011) 50,447 220,458 Fund balance - Beginning of year 170,011 170,011 202,639 32,628 Fund balance - End of year $ - $ - $ 253,086 $ 253,086 177 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Surveyor Year Ended June 30, 2014 REVENUES Local Licenses and permits Investment earnings Charges for services Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 8,800 $ 8,800 $ 24,665 $ 15,865 - - 501 501 25,815 25,815 58,979 33,164 34,615 34,615 84,145 49,530 34,000 34,000 34,000 - 34,000 34,000 34,000 - 31,670 31,670 - 31,670 65,670 65,670 34,000 31,670 (31,055) (31,055) 50,145 81,200 31,055 31,055 42,597 11,543 $ - $ - $ 92,742 $ 92,743 178 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Land Corner Preservation Year Ended June 30, 2014 179 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 3,800 $ 3,800 $ 4,538 $ 738 Charges for services 466,000 466,000 383,933 (82,067) Total revenues 469,800 469,800 388,471 (81,329) EXPENDITURES Materials and services 528,000 528,000 408,777 119,223 Total 528,000 528,000 408,777 119,223 Operating contingency 415,257 415,257 - 415,257 Total expenditures 943,257 943,257 408,777 534,480 Net change in fund balance (473,457) (473,457) (20,306) 453,151 Fund balance - Beginning of year 473,457 473,457 554,275 80,818 Fund balance - End of year $ - $ - $ 533,969 $ 533,969 179 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Countywide Transportation SDC Improvement Fee Year Ended June 30, 2014 REVENUES Local Licenses and permits Investment earnings Total revenues EXPENDITURES Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING USES Transfer out Total other financing sources uses Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 325,000 $ 325,000 $ 812,272 $ 487,272 3,000 3,000 8,592 5,592 328,000 328,000 820,864 492,864 810,125 810,125 - 810,125 810,125 810,125 - 810,125 (482,125) (482,125) 820,864 1,302,989 (400,000) (400,000) - 400,000 (400,000) (400,000) - 400,000 (882,125) (882,125) 820,864 1,702,989 882,125 882,125 981,054 98,930 $ - $ - $ 1,801,919 $ 1,801,919 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Dog Control Year Ended June 30, 2014 REVENUES Local Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Total revenues EXPENDITURES Personnel services Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 253,700 $ 253,700 $ 275,950 $ 22,250 3,060 3,060 6,277 3,217 800 800 1,590 790 250 250 375 125 2,500 2,500 3,206 706 260,310 260,310 287,398 27,088 89,498 89,498 88,484 1,014 415,858 415,858 346,449 69,409 505,356 505,356 434,932 70,424 61,913 61,913 - 61,913 567,269 567,269 434,932 132,337 (306,959) (306,959) (147,535) 159,424 111,959 111,959 111,959 - 111,959 111,959 111,959 - (195,000) (195,000) (35,576) 159,424 220,000 220,000 236,889 16,889 $ 25,000 $ 25,000 $ 201,313 $ 176,313 181 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Adult Parole and Probation Year Ended June 30, 2014 REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 331,000 $ 331,000 $ 444,104 $ 113,104 6,000 6,000 8,206 2,206 - - 1,323 1,323 191,814 191,814 187,047 (4,767) 3,203,871 3,662,014 3,744,147 82,133 3,732,685 4,190,828 4,384,827 193,999 3,326,077 3,385,157 3,343,789 41,368 955,003 1,176,980 1,107,365 69,615 100 100 - 100 4,281,180 4,562,237 4,451,154 111,083 610,647 787,733 - 787,733 4,891,827 5,349,970 4,451,154 898,816 (1,159,142) (1,159,142) (66,327) 1,092,815 451,189 451,189 451,189 - 451,189 451,189 451,189 - (707,953) (707,953) 384,862 1,092,815 707,953 707,953 747,330 39,377 $ - $ - $ 1,132,192 $ 1,132,192 182 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Extension 4-H Year Ended June 30, 2014 REVENUES Local Taxes - property Investment earnings Rents Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Variance with Original Budget Final Budget Actual Final Budget $ 392,723 $ 392,723 $ 406,097 $ 13,374 2,050 2,050 1,649 (401) 4,020 4,020 4,020 - 85,700 85,700 86,614 914 5,500 5,500 5,356 (144) 489,993 489,993 503,736 13,743 230,242 230,242 193,581 36,661 360,203 360,203 300,785 59,418 55,448 55,448 - 55,448 646,093 646,093 494,366 151,727 (156,100) (156,100) 9,370 165,470 100 100 - (100) (50,000) (50,000) (50,000) - (49,900) (49,900) (50,000) (100) (206,000) (206,000) (40,630) 165,370 206,000 206,000 108,753 (97,247) $ - $ - $ 68,123 $ 68,123 183 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Extension 4-H Construction Year Ended June 30, 2014 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 1,400 $ 1,400 $ 1,947 $ 547 Total revenues 1,400 1,400 1,947 547 EXPENDITURES Materials and services 100 100 - 100 Capital outlay 100 100 - 100 Total expenditures 200 200 - 200 Excess (deficiency) of revenues over expenditures 1,200 1,200 1,947 747 OTHER FINANCING SOURCES (USES) Transfers in 50,000 50,000 50,000 - Transfers out (100) (100) - 100 Total other financing sources (uses) 49,900 49,900 50,000 100 Not change in fund balance 51,100 51,100 51,947 847 Fund balance - Beginning of year 304,000 304,000 304,032 32 Fund balance - End of year $ 355,100 $ 355,100 $ 355,979 $ 879 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Black Butte Ranch Service District Year Ended June 30, 2014 185 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Taxes - property $ 928,000 $ 928,000 $ 903,704 $ (24,296) Investment earnings 2,000 2,000 4,864 2,864 Charges for services 14,200 14,200 26,137 11,937 Other - - - - Total revenues 944,200 944,200 934,705 (9,495) EXPENDITURES Personnel services 710,097 710,097 642,393 67,704 Materials and services 194,500 204,500 196,479 8,021 Capital outlay 45,000 45,000 37,851 7,149 Total 949,597 959,597 876,723 82,874 Operating contingency 100,000 90,000 - 90,000 Total expenditures 1,049,597 1,049,597 876,723 172,874 Net change in fund balance (105,397) (105,397) 57,982 163,379 Fund balance - Beginning of year 714,500 714,500 815,378 100,878 Fund balance - End of year $ 609,103 $ 609,103 $ 873,360 $ 264,257 185 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Sunriver Service District - Operating Fund Year Ended June 30, 2014 OTHER FINANCING SOURCES (USES) Transfer out (216,000) (266,000) (250,000) 16,000 Net change in fund balance (826,244) (826,244) 393,534 Variance with Fund balance - Beginning of year Original Budget Final Budget Actual Final Budget REVENUES $ 700,000 $ 700,000 $ 2,301,708 $ 1,601,708 Local Taxes -property $ 4,019,160 $ 4,019,160 $ 4,137,807 $ 118,647 Fines, forfeitures and penalties 6,000 6,000 10,556 4,556 Investment earnings 12,000 12,000 14,068 2,068 Charges for services 171,000 171,000 234,694 63,694 Intergovernmental Federal - - 4,845 4,845 Total revenues 4,208,160 4,208,160 4,401,970 193,810 EXPENDITURES Police Personnel services 1,472,311 1,472,311 1,256,698 215,613 Materials and services 203,624 203,624 171,126 32,498 Total 1,675,935 1,675,935 1,427,824 248,111 Fire and Emergency Services Personnel services 1,885,271 1,885,271 1,773,039 112,232 Materials and services 315,439 315,439 299,917 15,522 Total 2,200,710 2,200,710 2,072,956 127,754 Pathway Rangers Personnel services 81,388 81,388 49,301 32,087 Materials and services 5,500 5,500 3,904 1,596 Total 86,888 86,888 53,205 33,683 General Personnel services 13,175 13,175 5,997 7,178 Materials and services 130,350 184,350 150,751 33,599 Capital outlay 100 55,600 47,703 7,897 Debt service 100 100 - 100 Total 143,725 253,225 204,451 48,774 Operating contingency 711,146 551,646 - 551,646 Total expenditures 4,818,404 4,768,404 3,758,436 1,009,968 Excess (deficiency) of revenues over expenditures (610,244) (560,244) 643,534 1,203,778 OTHER FINANCING SOURCES (USES) Transfer out (216,000) (266,000) (250,000) 16,000 Net change in fund balance (826,244) (826,244) 393,534 1,219,778 Fund balance - Beginning of year 1,526,244 1,526,244 1,908,174 381,930 Fund balance - End of year $ 700,000 $ 700,000 $ 2,301,708 $ 1,601,708 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Sunriver Service District - Reserve Fund Year Ended June 30, 2014 Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 1,000 $ 1,000 $ 3,214 $ 2,214 Other - - 5,285 5,285 Total revenues 1,000 1,000 8,499 7,499 EXPENDITURES Materials and services Capital outlay Total expenditures Need to include appropriation transfer in Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 120 120 120 74,500 74,500 74,183 74,620 74,620 74,303 (73,620) (73,620) (65,804) 7,816 216,000 216,000 250,000 34,000 142,380 142,380 184,196 41,816 685,508 685,508 690,618 5,110 $ 827,888 $ 827,888 $ 874,814 $ 46,926 187 Deschutes County Nonmajor Debt Service Funds Combining Balance Sheet June 30, 2014 CDD Bldg Full Faith & FF & C, Credit Refunding Ref Series Full Faith & Full Faith & ASSETS Cash and cash equivalents $ 5,771 $ 8,819 $ 1,540 $ 60,274 Investments, plus accrued interest 8,687 13,276 2,318 90,736 Taxes receivable - - - - Accounts receivable - - - 39,251 Total assets $ 14,458 $ 22,095 $ 3,858 $ 190,260 LIABILITIES Unearned revenue $ - $ - $ - $ - Total liabilities - - - - DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes - - - - FUND BALANCE Assigned 14,458 22,095 3,858 190,260 Total fund balance 14,458 22,095 3,858 190,260 Total liabilities, deferred inflow of resources and fund balances $ 14,458 $ 22,095 $ 3,858 $ 190,260 (continued) 188 Deschutes County Nonmajor Debt Service Funds Combining Balance Sheet June 30, 2014 HHS/BJCC FF & C, Full Faith & Refunding Full Faith & Full Faith & ASSETS Cash and cash equivalents $ 252 $ 3,304 $ 90,590 $ 44 Investments, plus accrued interest 380 4,974 136,373 67 Taxes receivable - - - - Accounts receivable - - - - Total assets $ 633 $ 8,279 $ 226,963 $ 111 LIABILITIES Unearned revenue $ - $ - $ 9,972 $ - Total liabilities - - 9,972 - DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes - - - - FUND BALANCE Assigned 633 8,279 216,991 111 Total fund balance 633 8,279 216,991 111 Total liabilities, deferred inflow of resources and fund balances $ 633 $ 8,279 $ 226,963 $ ill (continued) 189 ASSETS Cash and cash equivalents Investments, plus accrued interest Taxes receivable Accounts receivable Total assets LIABILITIES Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes FUND BALANCE Assigned Total fund balance Total liabilities, deferred inflow of resources and fund balances Deschutes County Nonmajor Debt Service Funds Combining Balance Sheet June 30, 2014 Sunriver Library CSD PERS Series General 2002/2004 Obligation Total Nonmajor Debt Service Funds $ 9,472 $ 2,893 $ 182,960 14,259 4,355 275,425 - 3,319 3,319 - - 39,251 $ 23,731 $ 10,568 $ 500,955 $ - $ - $ 9,972 - - 9,972 - 2,937 2,937 23,731 7,631 488,047 23,731 7,631 488,047 $ 23,731 $ 10,568 $ 500,955 190 REVENUES Local Taxes - property Special assessments Investment earnings Rents Charges for services Total revenues EXPENDITURES Materials and services Debt service Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Deschutes County Nonmajor Debt Service Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 LID LID CDD Bldg FF & C, Refunding Full Faith & Credit Series Ref Series 85,409 29,570 - - 22,201 13,638 115 725 - - - 632,508 - - 500 400 115,711 61,019 165,000 833,857 9,671 8,948 14,035 606,373 125,382 69,967 179,535 1,440,630 (17,772) (26,759) (179,420) (807,397) 20,000 179,035 799,704 20,000 179,035 799,704 (17,772) (6,759) (385) (7,693) 17,772 6,759 14,843 29,787 $ - $ - $ 14,458 $ 22,095 (continued) 191 Deschutes County Nonmajor Debt Service Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 HHS/BJCC EXPENDITURES Materials and services 500 400 400 FF&C Debt service Full Faith & Full Faith & Full Faith & Refunding Principal Credit 2005 Credit 2008 Credit 2009 Series 2005 REVENUES 89,377 353,549 109,378 94,430 Local 251,592 763,949 249,778 574,930 Taxes - property $ - $ - $ - $ - Special assessments - - - - Investment earnings 148 1,938 69 188 Rents - 471,008 - - Charges for services - 251,866 - - Total revenues 148 724,812 69 188 EXPENDITURES Materials and services 500 400 400 500 Debt service - 248,000 574,430 Net change in fund balances (352) Principal 161,715 410,000 140,000 480,000 Interest 89,377 353,549 109,378 94,430 Total expenditures 251,592 763,949 249,778 574,930 Excess (deficiency) of revenues over expenditures (251,444) (39,137) (249,709) (574,742) OTHER FINANCING SOURCES Transfers in 251,092 - 248,000 574,430 Total other financing sources 251,092 - 248,000 574,430 Net change in fund balances (352) (39,137) (1,709) (312) Fund balance - Beginning of year 4,210 229,397 2,341 8,590 Fund balance - End of year $ 3,858 $ 190,260 $ 633 $ 8,279 (continued) 192 Deschutes County Nonmajor Debt Service Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Year Ended June 30, 2014 Excess (deficiency) of revenues over expenditures 24,769 G.O. Bonds (50,244) OTHER FINANCING SOURCES Full Faith & Ref Series Full Faith & PERS Series - 489,504 Credit 2010 2012 Credit 2013 2002/2004 REVENUES Net change in fund balances 24,769 (343,258) 111 (50,244) Local 192,222 343,258 - 73,976 Fund balance - End of year Taxes - property $ - $ 1,242,439 $ - $ - Special assessments - - - - Investment earnings 1,264 5,253 111 1,186 Rents 118,176 - - - Charges for services - - - 942,478 Total revenues 119,440 1,247,692 111 943,664 EXPENDITURES Materials and services 400 - - - Debt service Principal 55,000 1,560,000 220,000 227,215 Interest 39,271 30,950 269,504 766,693 Total expenditures 94,671 1,590,950 489,504 993,908 Excess (deficiency) of revenues over expenditures 24,769 (343,258) (489,393) (50,244) OTHER FINANCING SOURCES Transfers in - - 489,504 - Total other financing sources - - 489,504 - Net change in fund balances 24,769 (343,258) 111 (50,244) Fund balance - Beginning of year 192,222 343,258 - 73,976 Fund balance - End of year $ 216,991 $ - $ 111 $ 23,731 (continued) 193 Deschutes County Nonmajor Debt Service Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2014 1_.4' MCI 01 MEW Materials and services 24,710 Sunriver 27,810 Debt service Bend Library Library CSD Total Principal CSD General General Nonmajor Debt Interest Obligation Obligation Service Funds REVENUES 894,245 94,535 7,813,575 Local Excess (deficiency) of revenues Taxes - property $ 774,443 $ 88,175 $ 2,105,057 Special assessments - - 114,979 Investment earnings 555 310 47,701 Rents - - 1,221,692 Charges for services - - 1,194,344 Total revenues 774,998 88,485 4,683,773 1_.4' MCI 01 MEW Materials and services 24,710 - 27,810 Debt service Principal 855,000 80,000 5,364,516 Interest 14,535 14,535 2,421,249 Total expenditures 894,245 94,535 7,813,575 Excess (deficiency) of revenues over expenditures (119,247) (6,050) (3,129,802) OTHER FINANCING SOURCES Transfers in - - 2,561,765 Total other financing sources - - 2,561,765 Net change in fund balances (119,247) (6,050) (568,037) Fund balance - Beginning of year 119,247 13,681 1,056,084 Fund balance - End of year $ - $ 7,631 $ 488,047 194 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Local Improvement District 2007 Series Year Ended June 30, 2014 195 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Special assessments $ 160,000 $ 160,000 $ 85,409 $ (74,591) Investment earnings 18,600 18,600 22,201 3,601 Total revenues 178,600 178,600 107,611 (70,989) EXPENDITURES Debt service 172,500 172,500 125,382 47,118 Total expenditures 172,500 172,500 125,382 47,118 Net change in fund balance 6,100 6,100 (17,772) (23,872) Fund balance - Beginning of year - - 17,772 17,772 Fund balance - End of year $ 6,100 $ 6,100 $ - $ (6,100) 195 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Local Improvement District 2009 Series Year Ended June 30, 2014 EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 110,000 110,000 69,967 40,034 110,000 110,000 69,967 40,034 (19,900) (19,900) (26,759) (6,859) 20,000 20,000 20,000 - 20,000 20,000 20,000 - 100 100 (6,759) (6,859) - - 6,759 6,759 $ 100 $ 100 $ - $ (100) 196 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Special assessments $ 80,000 $ 80,000 $ 29,570 $ (50,430) Investment earnings 10,100 10,100 13,638 3,538 Total revenues 90,100 90,100 43,208 (46,892) EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 110,000 110,000 69,967 40,034 110,000 110,000 69,967 40,034 (19,900) (19,900) (26,759) (6,859) 20,000 20,000 20,000 - 20,000 20,000 20,000 - 100 100 (6,759) (6,859) - - 6,759 6,759 $ 100 $ 100 $ - $ (100) 196 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual CDD Building 1996 Full Faith and Credit, Refunding Series 2004 Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 100 $ 100 $ 115 $ 15 500 500 500 - 179,035 179,035 179,035 - 179,535 179,535 179,535 - (179,435) (179,435) (179,420) 15 179,035 179,035 179,035 - (400) (400) (385) 15 14,800 14,800 14,843 43 $ 14,400 $ 14,400 $ 14,458 $ 58 197 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Full Faith and Credit, REF Series 2012 Year Ended June 30, 2014 REVENUES Local Investment earnings Rents Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 500 $ 500 $ 725 $ 225 629,784 629,784 632,508 2,724 K11) ')QA 4'2n')on 411 ')22 ') nnn 1,000 1,000 400 600 1,440,230 1,440,230 1,440,230 - 1,441,230 1,441,230 1,440,630 600 (810,946) (810,946) (807,397) 3,549 799,704 799,704 799,704 - (11,242) (11,242) (7,693) 3,549 33,000 33,000 29,787 (3,213) $ 21,758 $ 21,758 $ 22,095 $ 336 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Full Faith and Credit, Series 2005 Year Ended June 30, 2014 199 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 100 $ 100 $ 148 $ 48 Total revenues 100 100 148 48 EXPENDITURES Materials and services 500 500 500 - Debt service 251,092 251,092 251,092 - Total expenditures 251,592 251,592 251,592 - Excess (deficiency) of revenues over expenditures (251,492) (251,492) (251,444) 47 OTHER FINANCING SOURCES Transfers in 251,092 251,092 251,092 - Net change in fund balance (400) (400) (352) 47 Fund balance - Beginning of year 3,600 3,600 4,210 610 Fund balance - End of year $ 3,200 $ 3,200 $ 3,858 $ 656 199 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Full Faith and Credit, Series 2008 Year Ended June 30, 2014 REVENUES Local Investment earnings Rents Intergovernmental Local Total revenues EXPENDITURES Materials and services Debt service Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 1,938 $ 938 469,745 469,745 471,008 1,263 251,866 251,866 251,866 - 722,611 722,611 724,812 2,201 400 400 400 - 763,549 763,549 763,549 - 763,949 763,949 763,949 - (41,338) (41,338) (39,137) 2,201 222,000 222,000 229,397 7,397 $ 180,662 $ 180,662 $ 190,260 $ 9,598 200 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Full Faith and Credit, Series 2009 Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 100 $ 100 $ 69 $ (31) 100 100 69 (31) 400 400 400 249,378 249,378 249,378 249,778 249,778 249,778 (249,678) (249,678) (249,709) 248,000 248,000 248,000 (1,678) (1,678) (1,709) $ 322 $ 322 $ 633 $ 311 201 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual HHS/BJCC Full Faith and Credit, Refunding Series 2005 Year Ended June 30, 2014 202 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 50 $ 50 $ 188 $ 138 Total revenues 50 50 188 138 EXPENDITURES Materials and services 500 500 500 - Debt service 574,430 574,430 574,430 - Total expenditures 574,930 574,930 574,930 - Excess (deficiency) of revenues over expenditures (574,880) (574,880) (574,742) 138 OTHER FINANCING SOURCES Transfers in 574,430 574,430 574,430 - Net change in fund balance (450) (450) (312) 138 Fund balance - Beginning of year 9,000 9,000 8,590 (410) Fund balance - End of year $ 8,550 $ 8,550 $ 8,279 $ (271) 202 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Full Faith and Credit 2010 — Secure Treatment Facility Year Ended June 30, 2014 203 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 500 $ 500 $ 1,264 $ 764 Rents 117,516 117,516 118,176 660 Total revenues 118,016 118,016 119,440 1,424 EXPENDITURES Materials and services 1,000 1,000 400 600 Debt service 94,272 94,272 94,271 1 Total expenditures 95,272 95,272 94,671 601 Net change in fund balance 22,744 22,744 24,769 2,025 Fund balance - Beginning of year 200,000 200,000 192,222 (7,778) Fund balance - End of year $ 222,744 $ 222,744 $ 216,991 $ (5,753) 203 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Full Faith and Credit Jail Remodel Debt Service Series 2013 Year Ended June 30, 2014 204 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ Total revenues - - 111 111 EXPENDITURES Materials and services 1,000 1,000 - 1,000 Debt service 499,000 499,000 489,504 9,496 Total expenditures 500,000 500,000 489,504 10,496 Excess (deficiency) of revenues over expenditures (500,000) (500,000) (489,393) 10,607 OTHER FINANCING SOURCES (USES) Transfers in 500,000 500,000 489,504 (10,496) Net change in fund balance - - 111 111 Fund balance - Beginning of year - - - - Fund balance - End of year $ - $ - $ 111 $ 111 204 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual General Obligation Bonds REF Series 2002/2012 Debt Service Year Ended June 30, 2014 REVENUES Local Taxes - property Investment earnings Total revenues EXPENDITURES Debt service Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 1,218,450 $ 1,218,450 $ 1,242,439 $ 23,989 7 CAVI 7 cnn C 11C1 1 '7C1 1,590,950 1,590,950 1,590,950 - 1,590,950 1,590,950 1,590,950 - (370,000) (370,000) (343,258) 26,742 205 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual PERS, Series 2002 and 2004 Debt Service Year Ended June 30, 2014 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 700 $ 700 $ 1,186 $ 486 Charges for services Total revenues EXPENDITURES Debt service Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 993,908 993,908 943,664 (50,244) 993,908 993,908 993,908 - 993,908 993,908 993,908 - - - (50,244) (50,244) 50,000 50,000 73,976 23,976 $ 50,000 $ 50,000 $ 23,731 $ (26,268) 206 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Bend Library County Service District Debt Service Year Ended June 30, 2014 REVENUES Local Taxes - property Investment earnings Total revenues EXPENDITURES Materials and services Debt service Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 738,035 $ 738,035 $ 774,443 $ 36,408 - - 24,710 (24,710) 869,535 869,535 869,535 - 869,535 869,535 894,245 (24,710) (131,000) (131,000) (119,247) 11,753 131,000 131,000 119,247 (11,753) $ - $ - $ - $ - 207 Deschutes County Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Sunriver Library County Service District Debt Service Year Ended June 30, 2014 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Taxes - property $ 88,036 $ 88,036 $ 88,175 $ 139 Investment earnings - - 310 310 Total revenues 88,036 88,036 88,485 449 EXPENDITURES Debt service 94,536 94,536 94,535 1 Total expenditures 94,536 94,536 94,535 1 Net change in fund balance (6,500) (6,500) (6,050) 450 Fund balance - Beginning of year 14,500 14,500 13,681 (819) Fund balance - End of year $ 8,000 $ 8,000 $ 7,631 $ (369) Deschutes County Major Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Jail Project Year Ended June 30, 2014 209 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 35,582 $ 35,582 Total revenues - - 35,582 35,582 EXPENDITURES Materials and services 1,311,667 1,311,667 987,420 324,247 Capital outlay 9,088,333 9,088,333 8,470,780 617,553 Total expenditures 10,400,000 10,400,000 9,458,200 941,800 Excess (deficiency) of revenues over expenditures (10,400,000) (10,400,000) (9,422,618) 977,382 OTHER FINANCING SOURCES Transfers in - - 1,065,121 1,065,121 Full faith & credit bonds issued - - 8,405,000 8,405,000 Premium on full faith & credit bonds issued - - 218,092 218,092 Total other financing sources - - 9,688,213 9,688,213 Net change in fund balance (10,400,000) (10,400,000) 265,595 10,665,595 Fund balance - Beginning of year 10,400,000 10,400,000 (2,057,525) (12,457,525) Fund balance - End of year $ - $ - $ (1,791,930) $ (1,791,930) 209 Deschutes County Nonmajor Capital Project Funds Combining Balance Sheet June 30, 2014 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ 113,750 $ 5,005 $ 35,371 $ 154,126 Total liabilities - 113,750 5,005 35,371 154,126 Fund balances Assigned 136,322 356,357 43,416 70,196 606,292 Total fund balance 136,322 356,357 43,416 70,196 606,292 Total liabilities and fund balances $ 136,322 $ 470,108 $ 48,421 $ 105,567 $ 760,417 210 Total Local North County Nonmajor Improvement Sisters Services Campus Capital District Health Clinic Building Improvement Projects Funds ASSETS Cash and cash equivalents $ 54,411 $ 38,732 $ 19,327 $ 39,242 $ 151,713 Investments, plus accrued interest 81,910 58,307 29,094 59,075 228,386 Accounts receivable - 373,069 - 7,250 380,319 Total assets $ 136,322 $ 470,108 $ 48,421 $ 105,567 $ 760,417 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ 113,750 $ 5,005 $ 35,371 $ 154,126 Total liabilities - 113,750 5,005 35,371 154,126 Fund balances Assigned 136,322 356,357 43,416 70,196 606,292 Total fund balance 136,322 356,357 43,416 70,196 606,292 Total liabilities and fund balances $ 136,322 $ 470,108 $ 48,421 $ 105,567 $ 760,417 210 Deschutes County Nonmajor Capital Projects Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2014 REVENUES Local Investment earnings Rents Contributions and donations Intergovernmental State Federal Total revenues EXPENDITURES Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Transfer out to other funds Notes issued Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Total Nonmajor Local North County Capital Improvement Sisters Services Campus Projects District Health Clinic Building Improvement Funds $ 961 $ 584 $ 2,695 $ 1,210 $ 5,449 - - 500 - 500 - - - 407 407 - - - 17,250 17,250 - 373,069 - - 373,069 961 373,653 3,195 18,867 396,676 9,712 268,003 657,753 299,145 1,234,613 9,712 268,003 657,753 299,145 1,234,613 (8,751) 105,650 (654,557) (280,279) (837,937) - 205,000 - 350,000 555,000 (20,000) - - - (20,000) - - 150,000 - 150,000 (20,000) 205,000 150,000 350,000 685,000 (28,751) 310,650 (504,557) 69,721 (152,937) 165,073 45,707 547,974 475 759,229 $ 136,322 $ 356,357 $ 43,416 $ 70,196 $ 606,292 211 Deschutes County Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Local Improvement District Year Ended June 30, 2014 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING USES Transfers out Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 961 $ (39) 1,000 1,000 961 (39) 10,500 10,500 9,712 788 10,500 10,500 9,712 788 135,962 135,962 - 135,962 146,462 146,462 9,712 136,750 (145,462) (145,462) (8,751) 136,711 (20,000) (20,000) (20,000) - (165,462) (165,462) (28,751) 136,711 $ - $ - $ 136,322 $ 136,322 212 Deschutes County Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Sisters Health Clinic Year Ended June 30, 2014 REVENUES Local Investment earnings Intergovernmental Federal Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 500 $ 500 $ 584 $ 84 460,000 460,000 373,069 (86,931) 460,500 460,500 373,653 (86,847) 35,555 35,555 11,684 23,871 474,945 474,945 256,318 218,627 510,500 510,500 268,003 242,497 (50,000) (50,000) (50,000) 105,650 155,650 - 205,000 205,000 (50,000) 310,650 360,650 $ - $ - $ 356,357 $ 356,357 213 Deschutes County Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual — North County Services Building Year Ended June 30, 2014 214 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 50,000 $ 50,000 $ 2,695 $ (47,305) Rents - - 500 500 Total revenues 50,000 50,000 3,195 (46,805) EXPENDITURES Materials and services 618,574 618,574 56,703 561,871 Capital outlay 5,481,426 5,481,426 601,050 4,880,376 Total expenditures 6,100,000 6,100,000 657,753 5,442,247 Excess (deficiency) of revenues over expenditures (6,050,000) (6,050,000) (654,557) 5,395,443 OTHER FINANCING SOURCES Bond issuance 5,500,000 5,500,000 150,000 (5,350,000) Total other financing sources 5,500,000 5,500,000 150,000 (5,350,000) Net change in fund balance (550,000) (550,000) (504,557) 45,443 Fund balance - Beginning of year 550,000 550,000 547,974 (2,026) Fund balance - End of year $ - $ - $ 43,416 $ 43,416 214 Deschutes County Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual — Campus Improvement Year Ended June 30, 2014 REVENUES Local Investment earnings Contributions and donations Intergovernmental State Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES Transfer in Total other financing sources Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 500 $ 500 $ 1,210 $ 710 - - 407 407 - - 17,250 17,250 500 500 18,867 18,367 420,500 420,500 299,145 121,355 30,000 30,000 - 30,000 (450,000) (450,000) (280,279) 169,721 350,000 350,000 350,000 - 350,000 350,000 350,000 - (100,000) (100,000) 69,721 169,721 100,000 100,000 475 (99,525) $ - $ - $ 70,196 $ 70,196 215 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds June 30, 2014 Deschutes County Deschutes County Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity June 30, 2014 Liabilities Accounts payable Balance $ 13,927,895 $ 13,829,351 Balance Due to other entities July 1, 2013 Additions Deductions June 30, 2014 Amounts Held for Others 1,217,949 271,244,500 271,460,538 1,001,911 Assets 10,246,749 51,329 182,344 10,115,735 Cash, cash equivalents and investments, $ 12,022,966 $ 285,223,725 $ 285,472,232 $ 11,774,458 at market; plus accrued interest $ 11,802,617 $ 285,149,932 $ 285,397,381 $ 11,555,168 Accounts receivable 220,349 73,793 74,852 219,290 $ 12,022,966 $ 285,223,725 $ 285,472,233 $ 11,774,458 Liabilities Accounts payable $ 558,268 $ 13,927,895 $ 13,829,351 $ 656,812 Due to other entities Governmental 1,217,949 271,244,500 271,460,538 1,001,911 Others 10,246,749 51,329 182,344 10,115,735 $ 12,022,966 $ 285,223,725 $ 285,472,232 $ 11,774,458 216 Combining Proprietary Funds June 30, 2014 Deschutes County ASSETS Current assets Cash and cash equivalents Investments, plus accrued interest Accounts receivable Due from other funds Total current assets Deschutes County Combining Schedule of Net Position Solid Waste Enterprise Sub -Funds June 30, 2014 Solid Waste Solid Waste Solid Waste Landfill Landfill Capital Equipment Operations Closure Postclosure Projects Reserve Total $ 795,188 $ 857,553 $ 206,950 $277,885 $ 63,161 $ 2,200,737 1,192,999 1,290,947 311,540 418,323 95,082 3,308,891 542,261 - - - - 542,261 - 2,676,483 - - - 2,676,483 2,530,448 4,824,982 518,490 696,208 158,244 8,728,372 Noncurrent assets 169,641 - Capital assets Net OPEB obligation 387,010 Capital assets not being depreciated - - - 387,010 Bonds and notes payable (net of Land 1,791,352 - - - - 1,791,352 Construction in progress 1,022,748 - - - - 1,022,748 Capital assets net of Accrued closure / postclosure 4,404,873 accumulated depreciation 518,490 - - 9,747,984 Less current portion of Land improvements 12,321,525 - - - - 12,321,525 Buildings and improvements 8,309,756 - - - - 8,309,756 Equipment 2,131,665 - - - - 2,131,665 Vehicles 70,328 - - - - 70,328 Intangibles 35,269 - - - - 35,269 Total capital assets 25,682,643 - - - - 25,682,643 Total assets 28,213,090 4,824,982 518,490 696,208 158,244 34,411,014 DEFERRED OUTLOW OF - - - 14,712,887 Unrestricted RESOURCES - - 658,635 158,244 (1,705,401) Deferred charge on refunding 249,647 - - - - 249,647 Total deferred outflow of resources 249,647 - - - - 249,647 LIABILITIES Current liabilities: Accounts payable 308,666 361 - 37,573 - 346,600.39 Interest payable 32,184 - - - - 32,184 Current portion of noncurrent liabilities 694,544 - - - - 694,544 Total current liabilities 1,035,394 361 - 37,573 - 1,073,328 Noncurrent liabilities Compensated leave 169,641 - - - - 169,641 Net OPEB obligation 387,010 - - - - 387,010 Bonds and notes payable (net of unamortized premiums and discounts) 10,969,756 - - - - 10,969,756 Accrued closure / postclosure 4,404,873 4,824,621 518,490 - - 9,747,984 Less current portion of noncurrent liabilities (694,544) - - - - (694,544) Total noncurrent liabilities 15,236,736 4,824,621 518,490 - - 20,579,847 Total liabilities 16,272,129 4,824,982 518,490 37,573 - 21,653,175 NET POSITION Net investment in capital assets 14,712,887 - - - - 14,712,887 Unrestricted (2,522,279) - - 658,635 158,244 (1,705,401) Total net position $12,190,608 $ - $ - $658,635 $158,244 $13,007,486 217 Deschutes County Combining Schedule of Net Position Fair and Expo Center Enterprise Sub -Funds June 30, 2014 Noncurrent assets Capital assets Capital assets not being depreciated Land 132,685 - - - 132,685 Capital assets net of accumulated depreciation Land improvements 5,558,295 Annual Fair & Expo Fairgrounds Building and improvements 15,437,092 Fair & Expo County Center G.O. Bonds 326,487 - Center Fair Reserve Debt Service Total ASSETS 21,454,560 Total assets 21,539,519 226,254 410,486 175,811 Current assets DEFERRED OUTFLOW OF Cash and cash equivalents $ 15,452 $ 32,891 $ 163,841 $ 12,614 $ 224,799 Investments, plus accrued interest 23,261 49,513 246,644 18,990 338,409 Accounts receivable 46,246 - - - 46,246 Taxes receivable - - - 144,207 144,207 Prepaid expenses - 143,849 - - 143,849 Total current assets 84,960 226,254 410,486 175,811 897,510 Noncurrent assets Capital assets Capital assets not being depreciated Land 132,685 - - - 132,685 Capital assets net of accumulated depreciation Land improvements 5,558,295 - - - 5,558,295 Building and improvements 15,437,092 - - - 15,437,092 Equipment and vehicles 326,487 - - - 326,487 Total capital assets 21,454,560 - - - 21,454,560 Total assets 21,539,519 226,254 410,486 175,811 22,352,070 DEFERRED OUTFLOW OF RESOURCES Deferred charge on refunding 5,271 - - 165,511 170,782 Total deferred outflow of resources 5,271 - - 165,511 170,782 LIABILITIES Current liabilities Accounts payable 32,316 6,031 - - 38,348 Unearned revenues 52,982 214,242 - - 267,224 Interest payable 11,385 - - 14,554 25,939 Current portion of noncurrent liabilities 116,620 24,011 - 2,422,000 2,562,631 Total current liabilities 213,303 244,285 - 2,436,554 2,894,142 Noncurrent liabilities Compensated leave 104,270 24,011 - - 128,281 Net OPEB obligation 184,290 - - - 184,290 Bonds and notes payable (net of unamortized premiums and discounts) 1,126,672 - - 7,668,999 8,795,672 Less current portion of noncurrent liabilities (116,620) (24,011) - (2,422,000) (2,562,631) Total noncurrent liabilities 1,298,612 - - 5,246,999 6,545,611 Total liabilities 1,511,915 244,285 - 7,683,554 9,439,753 NET POSITION Net investment in capital assets 20,327,887 - - (7,668,999) 12,658,888 Unrestricted (295,013) (18,031) 410,486 326,768 424,210 Total net position $ 20,032,875 _L±L8,031 $ 410,486 $(7,342,231) $ 13,083,098 218 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Interest expense Intrafund transfer of assets Total nonoperating revenues (expenses) Income (loss) before transfers OTHER FINANCING SOURCES (USES) Transfers in Transfers out Equity Transfer Total other financing sources (uses) Change in net position Net position - Beginning of year, Deschutes County Combining Schedule of Revenues, Expenses, and Changes in Net Position Solid Waste Enterprise Sub -Funds Year Ended June 30, 2014 Solid Waste Solid Waste Solid Waste Landfill Landfill Capital Equipment Operations Closure Post -Closure Projects Reserve $ 7,330,977 $ - $ - $ - $ - 33,345 - - - - 7,364,322 - - - - 1,857,303 - 3,182,510 27,619 (1,302,837) - 2,105,673 - 5,842,648 27,619 1,521,674 (27,619) 11,713 27,708 (403,646) - 327,478 - $ 7,330,977 33,345 7,364,322 - - - 1,857,303 - 50,023 3,091 3,263,243 (1,302,837) - - 2,105,673 50,023 3,091 5,923,382 (50,023) (3,091) 1,440,940 3,126 3,859 1,363 47,769 - - - (403,646) (136,913) (190,565) - (64,455) 27,708 3,126 (133,054) (189,201) (355,877) 1,457,219 89 3,126 (183,078) (192,293) 1,085,063 30,000 - 315,000 200,000 545,000 (827,148) - - - - (827,148) 33,214 (30,089) (3,126) - - - (793,934) (89) (3,126) 315,000 200,000 (282,148) 663,285 - - 131,922 7,707 802,915 (as previously reported) 11,718,258 - - 526,712 150,536 12,395,507 Prior Period Adjustment: Write-off bond issuance costs, in accordance with GASB #65 (190,935) - - - - (190,935) Net position - Beginning of year, (as restated) 11,527,323 - - 526,712 150,536 12,204,571 Net position - End of year $12,190,608 $ - $ - $ 658,635 $ 158,244 $13,007,486 219 Deschutes County Combining Schedule of Revenues, Expenses, and Changes in Net Position Fair and Expo Center Enterprise - Sub Funds Year Ended June 30, 2014 220 Fair & Expo Fairgrounds Fair & Expo Annual Center G.O. Bonds Center County Fair Reserve Debt Service Total OPERATING REVENUES Charges for services $ 765,102 $1,018,275 $ - $ - $ 1,783,377 Total operating revenues 765,102 1,018,275 - - 1,783,377 OPERATING EXPENSES Personnel 898,069 129,265 - - 1,027,334 Materials and services 672,862 735,776 - - 1,408,638 Depreciation 724,847 - - - 724,847 Total operating expenses 2,295,778 865,041 - - 3,160,819 Operating income (loss) (1,530,676) 153,234 - - (1,377,442) NONOPERATING REVENUES (EXPENSES) Grants 176,289 50,964 - - 227,253 Property taxes - - - 2,086,179 2,086,179 Investment earnings 399 299 2,811 1,177 4,686 Interest expense (49,081) - - (158,564) (207,645) Total nonoperating revenues (expenses), net 127,607 51,263 2,811 1,928,792 2,110,473 Income (loss) before transfers (1,403,069) 204,497 2,811 1,928,792 733,031 OTHER FINANCING SOURCES (USES) Transfers Equity transfer 310,746 - (310,746) - - Inter -fund Transfers in 637,086 5,000 - - 642,086 Intra -fund Transfers in 305,000 - - - 305,000 Transfers out - (205,000) (100,000) - (305,000) Net transfers 1,252,832 (200,000) (410,746) - 642,086 Change in net position (150,237) 4,497 (407,935) 1,928,792 1,375,117 Net position - Beginning of year, (as previously reported) 20,196,636 (22,528) 818,420 (9,214,560) 11,777,968 Prior Period Adjustment Write-off bond issuance costs, in accordance with GASB #65 (13,524) - - (56,463) (69,987) Net position - Beginning of year, (as restated) 20,183,112 (22,528) 818,420 (9,271,023) 11,707,981 Total net position - End of year $ 20,032,875$ (18,031) $ 410,485 $ (7,342,231) $13,083,098 220 Deschutes County Combining Schedule of Cash Flows Solid Waste Enterprise Sub -Funds Year Ended June 30, 2014 221 Solid Waste Solid Waste Solid Waste Landfill Landfill Capital Equipment Operations Closure Post -Closure Projects Reserve Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 7,218,613 $ - $ - $ - $ - $ 7,218,613 Payments to employees (1,777,663) - - - - (1,777,663) Payments to suppliers (3,071,981) (37,623) - (50,023) (3,091) (3,162,718) Net cash provided (used) by operating activities 2,368,969 (37,623) - (50,023) (3,091) 2,278,232 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loan repayments - 1,206,125 - - 1,206,125 Interfund cash transfers in/out (827,148) 30,000 - 315,000 200,000 (282,148) Net cash provided (used) by noncapital financing activities (827,148) 1,236,125 - 315,000 200,000 923,977 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (59,786) - - (167,781) (190,565) (418,132) Principal paid on capital debt (528,312) - - - - (528,312) Interest paid on capital debt (401,845) - - - - (401,845) Net cash used by capital and related financing activities (989,943) - - (167,781) (190,565) (1,348,289) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (978,757) (1,147,440) (234,357) (328,964) (72,521) (2,762,040) Interest 8,900 6,696 2,575 2,996 1,187 22,354 Net cash used by investing activities (969,857) (1,140,744) (231,782) (325,968) (71,335) (2,739,686) Net increase (decrease) in cash and cash equivalents (417,979) 57,759 (231,782) (228,773) (64,991) (885,766) Cash and cash equivalents - Beginning ofyear 1,213,167 799,794 438,732 506,658 128,153 3,086,504 Cash and cash equivalents - End ofyear $ 795,188 $ 857,553 $ 206,950 $ 277,885 $ 63,161 $ 2,200,738 Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ 1,521,674 $ (27,619) $ - $ (50,023) $ (3,091) $ 1,440,940 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 2,105,673 - - - - 21105,673 Loss on write off of capital asset 2,025 2,025 Change in assets and liabilities Receivables, net (145,710) - - - - (145,710) Accounts and other payables (1,114,693) (10,004) - - - (1,124,697) Net cash provided (used) by operating activities $ 2,368,969 $ (37,623) $ - $ (50,023) $ (3,091) $ 2,278,232 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 686 $ 601 $ 213 $ 263 $ 63 $ 1,826 221 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to employees Payments to suppliers Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Grants Subfunds transfers in / (out) Interfund transfers in / (out) Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net cash provided used by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest Net cash provided (used) by investing activities Net decrease in cash and cash equivalents Cash and cash equivalents - Beginning of year Cash and cash equivalents - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation expense Change in assets and liabilities Receivables, net Prepaid expenses Accounts and other payables Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments Deschutes County Combining Schedule of Cash Flows Fair and Expo Center Sub -Funds Year Ended June 30, 2014 Fairgrounds Fair & Expo Annual Fair & Expo G.O. Bonds Center County Fair Center Reserve Debt Service Total $ 725,571 $ 1,018,788 $ (895,582) (132,343) (674,255) (730,009) _ (844,266) 156,436 - $ - $ 1,744,359 (1,027,925) - - (1,404,264) - (687,831) - - - 2,053,644 2,053,644 176,289 50,964 - - 227,253 305,000 (205,000) (100,000) - - 637,086 5,000 - - 642,086 1,118,375 (149,036) (100,000) 2,053,644 2,922,982 (176,289) - - - (176,289) (63,293) - - (2,155,000) (2,218,293) (49,681) - - (196,400) (246,081) (289,263) - - (2,351,400) (2,640,663) (15,289) (38,308) (170,847) 29,464 (194,980) 377 202 2,503 1,523 4,604 (14,912) (38,106) (168,345) 30,987 (190,376) (30,066) (30,707) (268,345) (266,770) (595,888) 45,518 63,598 432,186 279,384 820,686 $ 15,452 $ 32,891 $ 163,841 $ 12,614 $ 224,799 $ (1,530,676) $ 153,234 $ - $ - $ (1,377,442) 724,847 - - - 724,847 (37,617) - - - (37,616) - 2,703 - - 2,703 (820) 498 - - (321) $ (844,266) $ 156,436 $ - $ - $ (687,830) $ 19 $ 32 $ 192 $ 83 $ 326 222 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Solid Waste Operations Year Ended June 30, 2014 NONOPERATING REVENUES (EXPENSES) Investment earnings 8,000 3,713 11,713 - Actual Interest expense - - Final Variance (403,646) Sub -fund transfer of capital assets - - - Budgeted with Final Budget GAAP 11,713 (76,168) Amounts Budget Basis Adjustments GAAP Basis OPERATING REVENUES OTHER FINANCING SOURCES (USES) Charges for services $ 6,701,776 $ 629,201 $ 7,330,977 $ - $ 7,330,977 Miscellaneous 45,000 (11,655) 33,345 - 33,345 Total operating revenues 6,746,776 617,546 7,364,322 - 7,364,322 OPERATING EXPENSES Personnel 1,896,392 118,729 1,777,663 79,640 1,857,303 Materials and services 3,336,993 122,618 3,214,375 (31,866) 3,182,510 Landfill closure/postclosure care costs - - - (1,302,837) (1,302,837) Depreciation - - - 2,105,673 2,105,673 Capital outlay 55,000 29,105 25,895 (25,895) - Debt service 930,157 - 930,157 (930,157) - Contingency 503,741 503,741 - - - Total operating expenses 6,722,283 774,192 5,948,091 (105,443) 5,842,648 Operating income (loss) 24,493 1,391,738 1,416,231 105,443 1,521,674 NONOPERATING REVENUES (EXPENSES) Investment earnings 8,000 3,713 11,713 - 11,713 Interest expense - - - (403,646) (403,646) Sub -fund transfer of capital assets - - - 327,478 327,478 Total nonoperating revenues (expenses), net 8,000 3,713 11,713 (76,168) (64,455) Income before transfers 32,493 1,395,452 1,427,945 29,275 1,457,219 OTHER FINANCING SOURCES (USES) Transfers out (827,148) - (827,148) - (827,148) Sub -fund equity transfer - - - 33,214 33,214 Total other financing sources (uses) (827,148) - (827,148) 33,214 (793,934) Change in net position Net position - Beginning of year, (as previously reported) Prior Period Adjustment: Write-off bond issuance costs, in accordance with GASB #65 Net position - Beginning of year, (as restated) Net position - End of year (794,655) 1,395,452 600,797 62,489 663,285 825,655 2,152,766 2,978,421 8,739,837 11,718,258 - - - (190,935) (190,935) 825,655 2,152,766 2,978,421 8,548,901 11,527,323 $ 31,000 $ 3,548,218 $ 3,579,218 $ 8,611,390 $12,190,608 223 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual Landfill Closure Year Ended June 30, 2014 224 Actual Final Budgeted Variance with Budget GAAP GAAP Amounts Final Budget Basis Adjustments Basis OPERATING EXPENSES Materials and services $ 67,300 $ 39,681 $ 27,619 $ - $ 27,619 Capital outlay 100 100 - - - Contingency 577,147 577,147 - - - Total operating expenses 644,547 616,928 27,619 - 27,619 Operating income (loss) (644,547) (616,928) (27,619) - (27,619) NONOPERATING REVENUES (EXPENSES) Investment earnings 2,000 8,506 10,506 17,202 27,708 Loan repayment 100,000 (100,000) - - - Total nonoperating revenues (expenses), net 102,000 (91,494) 10,506 17,202 27,708 Income (loss) before transfers (542,547) 525,434 (17,113) 17,202 89 OTHER FINANCING SOURCES (USES) Transfers In 30,000 - 30,000 (30,089) (89) Change in net position (512,547) 525,434 12,887 (12,887) - Total net position - Beginning of year 512,547 4,134,753 4,647,300 (4,647,300) - Total net position - End of year $ - $4,660,187 $ 4,660,187 $ (4,660,187) $ - 224 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual Landfill Postclosure Year Ended June 30, 2014 225 Actual Final Budgeted Variance with Budget GAAP Amounts Final Budget Basis Adjustments GAAP Basis OPERATING EXPENSES Materials and services $ 1,000 $ 1,000 $ - $ - $ - Total operating expenses 1,000 1,000 - - - Operating loss (1,000) 1,000 - - - NONOPERATING REVENUES Investment earnings 2,500 626 3,126 - 3,126 Total nonoperating revenues 2,500 626 3,126 - 3,126 Income before transfers 1,500 1,626 3,126 - 3,126 OTHER FINANCING USES Sub -fund equity transfer - - - (3,126) (3,126) Change in net position 1,500 1,626 3,126 (3,126) - Total net position - Beginning of year 515,507 (143) 515,364 (515,364) - Total net position - End of year $ 517,007 $ 1,483 $ 518,490 $ (518,490) $ - 225 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Solid Waste Capital Projects Year Ended June 30, 2014 NONOPERATING REVENUES (EXPENSES) Investment earnings 5,000 (1,141) 3,859 Actual Total nonoperating revenues (expenses), net 5,000 Final 3,859 - 3,859 Income (loss) before transfers (821,401) 638,323 Budgeted Variance with Budget GAAP Amounts Final Budget Basis Adjustments GAAP Basis OPERATING EXPENSES Sub -fund transfer of capital assets - - - (136,913) (136,913) Materials and services $ 162,421 $ 23,086 $ 139,334 $ (136,913) $ 2,421 Capital outlay 175,000 127,398 47,602 - 47,602 Contingency 488,980 488,980 - - - Total operating expenses 826,401 639,464 186,936 (136,913) 50,023 Operating income (loss) (826,401) 639,464 (186,936) (136,913) (50,023) NONOPERATING REVENUES (EXPENSES) Investment earnings 5,000 (1,141) 3,859 - 3,859 Total nonoperating revenues (expenses), net 5,000 (1,141) 3,859 - 3,859 Income (loss) before transfers (821,401) 638,323 (183,078) (136,913) (46,165) OTHER FINANCING SOURCES Transfers in 315,000 - 315,000 - 315,000 Sub -fund transfer of capital assets - - - (136,913) (136,913) Change in net position (506,401) 638,323 131,922 - 131,922 Total net position - Beginning of year 475,401 51,311 526,712 - 526,712 Total net position - End of year $ (31,000) $ 689,635 $ 658,635 $ - $ 658,635 226 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Solid Waste Equipment Reserve Year Ended June 30, 2014 227 Actual Final Budgeted Variance with Budget GAAP Amounts Final Budget Basis Adjustments GAAP Basis OPERATING EXPENSES Materials and services $ 3,092 $ - $ 3,091 $ - $ 3,091 Capital outlay 200,000 9,435 190,565 (190,565) - Total operating expenses 203,092 9,435 193,656 (190,565) 3,091 Operating loss (203,092) (9,435) (193,656) 190,565 (3,091) NONOPERATING REVENUES Investment earnings 1,000 363 1,363 - 1,363 Total nonoperating revenues 1,000 363 1,363 - 1,363 Loss before transfers (202,092) (9,072) (192,293) 190,565 (1,728) OTHER FINANCING SOURCES (USES) Transfers in 200,000 - 200,000 - 200,000 Capital asset, equity transfer - - - (190,565) (190,565) Change in net position (2,092) 9,799 7,707 - 7,707 Total net position - Beginning of year 150,461 75 150,536 - 150,536 Total net position - End of year $ 148,369 $ 9,874 $ 158,244 $ - $ 158,244 227 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Fair and Expo Center Year Ended June 30, 2014 NONOPERATING REVENUES (EXPENSES) Grants 180,000 (3,711) 176,289 Actual 176,289 Investment earnings Final Variance 399 - 399 Interest expense Budgeted with Final Budget GAAP (49,081) Total nonoperating revenues (expenses), net Amounts Budget Basis Adjustments GAAP Basis OPERATING REVENUES (987,913) 52,174 (935,739) (467,331) (1,403,069) Charges for services $ 730,900 $ 14,381 $ 745,281 $ 19,821 $ 765,102 Total operating revenues 730,900 14,381 745,281 19,821 765,102 OPERATING EXPENSES - - - 310,746 310,746 Personnel 896,593 1,011 895,582 2,487 898,069 Materials and services 685,733 12,871 672,862 - 672,862 Depreciation - - - 724,847 724,847 Capital outlay 180,100 3,811 176,289 (176,289) - Debt service 112,974 - 112,974 (112,974) - Contingency 23,413 23,413 - - - Total operating expenses 1,898,813 41,105 1,857,708 438,071 2,295,778 Operating income (loss) (1,167,913) 55,486 (1,112,427) (418,250) (1,530,676) NONOPERATING REVENUES (EXPENSES) Grants 180,000 (3,711) 176,289 - 176,289 Investment earnings - 399 399 - 399 Interest expense - - - (49,081) (49,081) Total nonoperating revenues (expenses), net 180,000 (3,312) 176,688 (49,081) 127,607 Income (loss) before transfers (987,913) 52,174 (935,739) (467,331) (1,403,069) OTHER FINANCING SOURCES Transfers in 939,086 3,000 942,086 - 942,086 Equity transfer - - - 310,746 310,746 Total other financing sources 939,086 3,000 942,086 310,746 1,252,832 Change in net position (48,827) 55,174 6,347 (156,584) (150,237) Net position - Beginning of year, (previously reported) 48,827 (55,513) (6,686) 20,203,322 20,196,636 Prior Period Adjustment Write-off bond issuance costs, in accordance with GASB #65 - - - (13,524) (13,524) Net position - Beginning of year, (Restated) 48,827 (55,513) (6,686) 20,189,798 20,183,112 Total net position - End of year $ - $ (33 9) $ (339) $ 20,033,213 $20,032,875 228 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual Annual County Fair Year Ended June 30, 2014 NONOPERATING REVENUES (EXPENSES) Grants 40,000 10,964 50,964 Actual Investment earnings 700 Final Variance - 299 Total nonoperating revenues (expenses), net 40,700 10,563 Budgeted with Final Income (loss) before transfers GAAP (26,951) 208,440 Amounts Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Transfers in 5,000 - 5,000 - 5,000 Charges for services $ 1,058,792 $ (40,004) $1,018,788 $ (513) $1,018,275 Total operating revenues 1,058,792 (40,004) 1,018,788 (513) 1,018,275 OPERATING EXPENSES Personnel 132,703 360 132,343 (3,078) 129,265 Materials and services 731,398 2,130 729,268 6,508 735,776 Total operating expenses 864,101 2,490 861,611 3,430 865,041 Operating income (loss) 194,691 (37,514) 157,177 (3,943) 153,234 NONOPERATING REVENUES (EXPENSES) Grants 40,000 10,964 50,964 - 50,964 Investment earnings 700 (401) 299 - 299 Total nonoperating revenues (expenses), net 40,700 10,563 51,263 - 51,263 Income (loss) before transfers 235,391 (26,951) 208,440 (3,943) 204,497 OTHER FINANCING SOURCES (USES) Transfers in 5,000 - 5,000 - 5,000 Transfers out (250,000) 45,000 (205,000) - (205,000) Change in net position Total net position - Beginning of year Total net position - End of year (9,609) 18,049 8,440 (3,943) 4,497 9,609 58,324 67,933 (90,461) (22,528) $ - $ 76,373 $ 76,373 $ (94,404) $ (18,031) 229 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual Fair and Expo Center Reserve Year Ended June 30, 2014 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING EXPENSES Materials and services $ 1,000 $ 1,000 $ - $ - $ - Capital outlay 175,000 175,000 - - - Total operating expenses 176,000 176,000 - - - Operating income (loss) (176,000) 176,000 - - - NONOPERATING REVENUES Investment earnings 3,000 (189) 2,811 - 2,811 Total nonoperating revenues 3,000 (189) 2,811 - 2,811 Income (loss) before transfers (173,000) 175,811 2,811 - 2,811 OTHER FINANCING SOURCES (USES) Transfers out (100,000) - (100,000) - (100,000) Equity transfer - - - (310,746) (310,746) Total other financing sources (uses) (100,000) - (100,000) (310,746) (410,746) Change in net position (373,000) 175,811 (97,189) (310,746) (407,935) Total net position - Beginning of year 508,000 (326) 507,674 310,746 818,420 Total net position - End of year $ 135,000 $ 175,486 $ 410,486 $ - $ 410,485 230 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual Fairgrounds Debt Service Fund Year Ended June 30, 2014 231 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Property taxes $2,070,200 $ (14,600) $2,055,600 $ 30,579 $ 2,086,179 Total operating revenues 2,070,200 (14,600) 2,055,600 30,579 2,086,179 OPERATING EXPENSES Debt service 2,351,400 - 2,351,400 (2,351,400) - Total operating expenses 2,351,400 - 2,351,400 (2,351,400) - Operating income (loss) (281,200) (14,600) (295,800) 2,381,979 2,086,179 NONOPERATING REVENUES (EXPENSES) Investment earnings 1,200 (23) 1,177 - 1,177 Interest expense - - - (158,564) (158,564) Total nonoperating revenues (expenses), net 1,200 (23) 1,177 (158,564) (157,387) Change in net position (282,400) (14,577) (294,623) 2,223,415 1,928,792 Net position - beginning (as previously reported) 380,000 (36,101) 343,899 (9,558,459) (9,214,560) Prior Period Adjustment Write-off bond issuance costs, in accordance with GASB #65 - - - (56,463) (56,463) Net position - Beginning of year, (Restated) 380,000 (36,101) 343,899 (9,614,922) (9,271,023) Total net position - End of year $ 97,600 $ (50,679) $ 49,275 $(7,391,507) $(7,342,231) 231 Deschutes County Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual RV Park Year Ended June 30, 2014 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Materials and services Depreciation Debt service Total operating expenses Operating loss NONOPERATING REVENUES (EXPENSES) Investment earnings Interest expense Total nonoperating revenues (expenses), net Loss before transfers OTHER FINANCING SOURCES (USES) Appropriation transfer Transfers in Change in net position Net position - Beginning of year, (previously reported) Prior Period Adjustment Write-off bond issuance costs, in accordance with GASB #65 Net position - Beginning of year, (Restated) Total net position - End of year Actual Final Variance Budgeted with Final Budget GAAP Amounts Budget Basis Adjustments GAAP Basis $ 139,600 $ 77,436 $ 217,036 $ - $ 217,036 139,600 77,436 217,036 - 217,036 136,774 209 136,565 - 136,565 - - - 129,121 129,121 241,765 - 241,765 (241,765) - 378,539 209 378,330 (112,644) 265,686 (238,939) 77,645 (161,294) 112,644 (48,650) 150 7 157 - 157 - - - (90,066) (90,066) 150 7 157 (90,066) (89,909) (238,789) 77,652 (161,137) 22,578 (138,559) 46,500 (46,500) - - - 180,000 - 180,000 - 180,000 (12,289) 31,152 18,863 22,578 41,441 12,289 5,639 17,928 634,711 652,639 - - - (39,736) (39,736) 12,289 5,639 17,928 594,975 612,903 $ - $ 36,791 $ 36,791 $ 617,553 $ 654,344 232 Internal Service Funds June 30, 2014 Deschutes County ASSETS Current assets Cash and cash equivalents Investments, at fair value; plus accrued interest Accounts receivable Prepaid expenses Total current assets Noncurrent assets Capital assets Capital assets net of accumulated depreciation Land improvements Equipment Vehicles Total noncurrent assets Total assets LIABILITIES Current liabilities Accounts payable Unearned revenue Current portion of noncurrent liabilities Total current liabilities Noncurrent liabilities Deschutes County Internal Service Funds Combining Schedules of Net Position June 30, 2014 Building Administrative Board of Services Services Co Comm Finance Legal Personnel $ 170,413 $ 115,203 $ 15,043 $ 215,707 $ 36,499 $ 136,123 256,537 173,425 22,645 324,722 54,946 204,917 171,015 - - - - - 7,000 - - - - - 604,965 288,628 37,688 540,429 91,445 341,041 4,724 - - - - - 2,871 - - 28,630 - - 10,901 - - - - - 18,496 - - 28,630 - - 623,461 288,628 37,688 569,059 91,445 341,041 67,105 5,716 6,943 4,186 1,309 16,968 2,181 - - - - - 147,878 72,254 - 74,626 58,119 64,812 217,165 77,970 6,943 78,812 59,428 81,780 Compensated leave 185,350 127,538 - 162,387 78,359 70,576 Net OPEB obligation 438,611 117,946 55,287 134,348 110,574 107,810 Accrued claims payable - - - - - - Less current portion of noncurrent liabilities (147,878) (72,254) - (74,626) (58,119) (64,812) Total noncurrent liabilities 476,082 173,230 55,287 222,108 130,814 113,573 Total liabilities 693,247 251,200 62,230 300,920 190,242 195,354 NET POSITION Net investment in capital assets 18,496 - - 28,630 - - Unrestricted (88,282) 37,428 (24,542) 239,509 (98,797) 145,687 Total net position $ (69,786) $ 37,428 $ (24,542) $ 268,139 $ (98,797) $ 145,687 234 Deschutes County Internal Service Funds Combining Schedules of Net Position June 30, 2014 Noncurrent liabilities Compensated leave Information - 21,179 Health 904,613 Net OPEB obligation Technology IT Reserve Insurance Benefits Trust Total ASSETS - - 2,804,317 1,390,590 4,194,907 Current assets Cash and cash equivalents $ 262,400 $ 282,131 $ 1,265,751 $ 5,066,472 $ 7,565,743 Investments, at fair value; 419,623 - 1,465,058 35,653 3,091,428 plus accrued interest 395,013 424,715 1,905,442 7,626,988 11,389,351 Accounts receivable - - 21,728 137,247 329,990 Prepaid expenses - - - - 7,000 Total current assets 657,414 706,846 3,192,921 12,830,706 19,292,084 Noncurrent assets $ 85,198 $ 840,090 $ 255,846 $ 11,037,084 $ 12,476,348 Capital assets Capital assets net of accumulated depreciation Land improvements - - 30,000 - 34,724 Equipment - 212,749 - - 244,250 Vehicles - - - - 10,901 Total noncurrent assets - 212,749 30,000 - 289,875 Total assets 657,414 919,596 3,222,921 12,830,706 19,581,959 LIABILITIES Current liabilities Accounts payable 3,864 79,506 81,685 367,379 634,661 Unearned revenue 2,000 - - - 4,181 Current portion of noncurrent liabilities 146,729 - 1,420,333 1,390,590 3,375,341 Total current liabilities 152,592 79,506 1,502,017 1,757,969 4,014,183 Noncurrent liabilities Compensated leave 258,587 - 21,179 638 904,613 Net OPEB obligation 307,765 - 59,894 35,015 1,367,250 Accrued claims payable - - 2,804,317 1,390,590 4,194,907 Less current portion of noncurrent liabilities (146,729) - (1,420,333) (1,390,590) (3,375,341) Total noncurrent liabilities 419,623 - 1,465,058 35,653 3,091,428 Total liabilities 572,215 79,506 2,967,075 1,793,622 7,105,611 NET POSITION Net investment in capital assets - 212,749 30,000 - 289,875 Unrestricted 85,198 627,340 225,846 11,037,084 12,186,472 Total net position $ 85,198 $ 840,090 $ 255,846 $ 11,037,084 $ 12,476,348 235 Deschutes County Internal Service Funds Combining Schedules of Revenues, Expenses, and Changes in Fund Net Position Year Ended June 30, 2014 Building Administrative Board of OTHER FINANCING SOURCES (USES) Transfers in Transfers out Change in net position Total net position - Beginning of year Total net position - End of year 40,000 - (40,260) - - (40,260) 40,000 - (11,505) (6,941) (5,301) (24,413) (36,012) 7,040 (58,280) 44,370 (19,241) 292,551 (62,784) 138,648 _L_L9,7861 $ 37,428 $ (24,542) $ 268,138 $ (98,796) $ 145,688 236 Services Services Co Comm Finance Legal Personnel OPERATING REVENUES Charges for services $ 2,835,280 $ 932,870 $ 478,056 $1,103,782 $ 828,509 $ 841,041 Total operating revenues 2,835,280 932,870 478,056 1,103,782 828,509 841,041 OPERATING EXPENSES Personnel 1,987,819 884,686 372,203 897,931 832,053 645,282 Materials and services 810,686 97,050 111,444 223,377 33,307 190,819 Depreciation 10,924 - - 10,041 - - Total operating expenses 2,809,429 981,736 483,647 1,131,349 865,361 836,101 Operating income (loss) 25,851 (48,866) (5,591) (27,567) (36,852) 4,940 NONOPERATING REVENUES Investment earnings 2,903 1,924 290 3,154 840 2,100 Total nonoperating revenues 2,903 1,924 290 3,154 840 2,100 Income (loss) before transfers 28,755 (46,941) (5,301) (24,413) (36,012) 7,040 OTHER FINANCING SOURCES (USES) Transfers in Transfers out Change in net position Total net position - Beginning of year Total net position - End of year 40,000 - (40,260) - - (40,260) 40,000 - (11,505) (6,941) (5,301) (24,413) (36,012) 7,040 (58,280) 44,370 (19,241) 292,551 (62,784) 138,648 _L_L9,7861 $ 37,428 $ (24,542) $ 268,138 $ (98,796) $ 145,688 236 Deschutes County Internal Service Funds Combining Schedulesof Revenues, Expenses, and Changes in Fund Net Position Year Ended June 30, 2014 237 Information Health Technology IT Reserve Insurance Benefits Trust Total OPERATING REVENUES Charges for services $2,145,903 $ 234,000 $ 2,770,494 $ 18,130,814 $ 30,300,749 Total operating revenues 2,145,903 234,000 2,770,494 18,130,814 30,300,749 OPERATING EXPENSES Personnel 2,052,846 - 330,228 125,027 8,128,074 Materials and services 351,494 116,726 1,609,264 17,405,031 20,949,198 Depreciation - 73,200 1,333 - 95,499 Total operating expenses 2,404,340 189,927 1,940,825 17,530,057 29,172,770 Operating income (loss) (258,437) 44,073 829,669 600,757 1,127,978 NONOPERATING REVENUES Investment earnings 4,567 4,001 16,762 72,217 108,758 Total nonoperating revenues 4,567 4,001 16,762 72,217 108,758 Income (loss) before transfers (253,870) 48,074 846,430 672,974 1,236,736 OTHER FINANCING SOURCES (USES) Transfers in 66,000 - - - 106,000 Transfers out - - (7,320) - (47,580) 66,000 - (7,320) - 58,420 Change in net position (187,870) 48,074 839,110 672,974 1,295,156 Total net position - Beginning of year 273,068 792,016 (583,264) 10,364,111 11,181,192 Total net position - End of year $_85 198 $ 840,089 $ 255,846 $ 11,037,084 $ 12,476,348 237 Deschutes County Internal Service Funds Combining Schedules of Cash Flows Year Ended June 30, 2014 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in - 40,000 Transfers out (40,260) - Net cash provided (used) by noncapital financing activities (40,260) 40,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets - Net cash used by capital and related activities - - CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Building Administrative Board of (247,654) (33,451) (160,248) Interest Services Services Co Comm Finance Legal Personnel CASH FLOWS FROM OPERATING ACTIVITIES (191,546) (128,916) (17,342) (245,103) (32,639) (158,563) Receipts from customers $ 2,794,657 $ 932,870 $ 478,056 $ 1,104,636 $ 830,255 $ 841,041 Payments to employees (1,926,190) (873,532) (363,153) (858,164) (850,158) (618,746) Payments to suppliers (821,712) (99,021) (111,220) (223,440) (33,856) (180,975) Net cash provided (used) by 355,463 243,802 28,703 437,778 122,897 253,366 operating activities 46,756 (39,683) 3,683 23,032 (53,759) 41,320 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in - 40,000 Transfers out (40,260) - Net cash provided (used) by noncapital financing activities (40,260) 40,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets - Net cash used by capital and related activities - - CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (193,988) (130,534) (17,587) (247,654) (33,451) (160,248) Interest 2,442 1,618 246 2,551 812 1,685 Net cash used by investing activities (191,546) (128,916) (17,342) (245,103) (32,639) (158,563) Net decrease in cash and cash 10,924 - 10,041 - - equivalents (185,050) (128,599) (13,659) (222,071) (86,397) (117,243) Cash and cash equivalents - (42,089) - - 855 1,747 - Beginning ofyear 355,463 243,802 28,703 437,778 122,897 253,366 Cash and cash equivalents - 59,069 9,182 9,273 39,703 (18,653) 36,380 End of year $ 170,413 $ 115,203 $ 15,043 $ 215,707 $ 36,499 $ 136,123 Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ 25,851 $ (48,866) $ (5,591) $ (27,567) $ (36,852) $ 4,940 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation expense 10,924 - 10,041 - - Change in assets and liabilities Receivables, net (42,089) - - 855 1,747 - Prepaid expenses (7,000) - - - - - Accounts and other payables 59,069 9,182 9,273 39,703 (18,653) 36,380 Net cash provided (used) by operating activities $ 46,756 $ (39,683) $ 3,683 $ 23,032 $ (53,759) $ 41,320 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 174 $ 118 $ 15 $ 217 $ 50 S 130 238 Deschutes County Internal Service Funds Combining Schedules of Cash Flows Year Ended June 30, 2014 Information Technology IT Reserve Insurance Health Benefits Trust Total CASH FLOWS FROM (284,882) (334,471) (1,501,087) (5,771,067) OPERATING ACTIVITIES Interest 3,976 3,120 12,808 Receipts from customers $ 2,145,903 $ 234,000 $ 2,768,064 $ 17,997,659 $ 30,127,143 Payments to employees (1,971,069) - (324,005) (129,509) (7,914,525) Payments to suppliers (324,664) (37,220) (1,975,075) (17,635,710) (21,442,894) Net cash provided (used) by operating activities (149,830) 196,780 468,985 232,440 769,724 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 66,000 Transfers out - Net cash provided (used) by noncapital financing activities 66,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets Net cash used by capital and related activities - CASH FLOWS FROM INVESTING ACTIVITIES (7,320) (7,320) (94,921) - (94,921) - 106,000 (47,580 58.420 - (94,921) (94,921) Purchase of investments (284,882) (334,471) (1,501,087) (5,771,067) (8,674,968) Interest 3,976 3,120 12,808 58,446 87,703 Net cash used by investing activities (280,906) (331,351) (1,488,279) (5,712,621) (8,587,265) Net decrease in cash and cash equivalents (364,736) (229,492) (1,026,615) (5,480,180) (7,854,042) Cash and cash equivalents - 24,232 - - 19,020 36,252 Beginning ofyear 627,136 511,623 2,292,366 10,546,652 15,419,786 Cash and cash equivalents - End of year $ 262,400 $ 282,131 $ 1,265,751 $ 5,066,472 $ 7,565,743 Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ (258,437) $ 44,073 $ 829,669 $ 600,757 $ 1,127,978 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense - 73,200 1,333 - 95,499 Change in assets and liabilities Receivables, net - - (2,430) (133,154) (175,072) Prepaid expenses 24,232 - - 19,020 36,252 Accounts and other payables 84,375 79,506 (359,588) (254,182) (314,933) Net cash provided (used) by operating activities $ (149,830) $ 196,780 $ 468,985 $ 232,440 $769,724 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 290 $ 266 $ 1,194 $ 5,160 $ 7,614 239 Page intentionally left blank. OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES Investment earnings Total nonoperating revenues Income (loss) before transfers OTHER FINANCING USES Transfers out Change in net position Total net position - Beginning of year Total net position - End of year Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Building Services Year Ended June 30, 2014 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 2,761,484 $ 73,796 $ 2,835,280 $ - $ 2,835,280 2,761,484 73,796 2,835,280 - 2,835,280 1,963,985 37,795 1,926,190 61,629 1,987,819 860,125 49,439 810,686 - 810,686 - - - 10,924 10,924 100 100 - - - 280,014 280,014 - - - 3,104,224 367,348 2,736,876 72,553 2,809,429 (342,740) 441,144 98,404 (72,553) 25,851 3,000 (97) 2,903 3,000 (97) 2,903 (339,740) 441,047 101,307 (40,260) - (40,260) (380,000) 441,047 61,047 - 2,903 2,903 (72,553) 28,755 (40,260) (72,553) (11,505) 380,000 94,632 474,632 (532,912) (58,280) $ - $ 535,679 $ 535,679 $ (605,465) $ (69,786) 241 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Administrative Services Year Ended June 30, 2014 242 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 932,782 $ 88 $ 932,870 $ - $ 932,870 Total operating revenues 932,782 88 932,870 - 932,870 OPERATING EXPENSES Personnel 922,922 49,390 873,532 11,154 884,686 Materials and services 103,031 5,981 97,050 - 97,050 Capital outlay 100 100 - - - Contingency 147,229 147,229 - - - Total operating expenses 1,173,282 202,700 970,582 11,154 981,736 Operating loss (240,500) 202,788 (37,712) (11,154) (48,866) NONOPERATING REVENUES (EXPENSES) Investment earnings 500 1,424 1,924 - 1,924 Total nonoperating revenues 500 1,424 1,924 - 1,924 Loss before transfers (240,000) 204,212 (35,788) (11,154) (46,941) OTHER FINANCING SOURCES Transfers in 40,000 - 40,000 - 40,000 Change in net position (200,000) 204,212 4,212 (11,154) (6,941) Total net position - Beginning of year 200,000 78,700 278,700 (234,330) 44,370 Total net position - End of year $ - $ 282,912 $ 282,912 $ (245,484) $ 37,428 242 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Board of County Commissioners Year Ended June 30, 2014 243 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 478,040 $ 16 $ 478,056 $ - $ 478,056 Total operating revenues 478,040 16 478,056 - 478,056 OPERATING EXPENSES Personnel 364,002 849 363,153 9,050 372,203 Materials and services 112,458 1,014 111,444 - 111,444 Capital outlay 100 100 - - - Contingency 21,980 21,980 - - - Total operating expenses 498,540 23,943 474,597 9,050 483,647 Operating income (loss) (20,500) 23,959 3,459 (9,050) (5,591) NONOPERATING REVENUES Investment earnings 500 (210) 290 - 290 Total nonoperating revenues 500 (210) 290 - 290 Change in net position (20,000) 23,749 3,749 (9,050) (5,301) Total net position - Beginning of year 20,000 6,996 26,996 (46,237) (19,241) Total net position - End of year $ - $ 30,745 $ 30,745$ (55,287) $ (24,542) 243 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Finance Year Ended June 30, 2014 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $1,093,390 $ 10,392 $ 1,103,782 $ - $ 1,103,782 Total operating revenues 1,093,390 10,392 1,103,782 - 1,103,782 OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES Investment earnings Total nonoperating revenues Change in net position Total net position - Beginning of year Total net position - End of year 953,660 95,496 858,164 39,767 897,931 261,033 37,656 223,377 - 223,377 - - - 10,041 10,041 5,000 5,000 - - - 252,697 252,697 - - - 1,472,390 390,849 1,081,541 49,808 1,131,349 (379,000) 401,240 22,240 (49,808) (27,567) 2,000 1,154 3,154 - 3,154 2,000 1,154 3,154 - 3,154 (377,000) 402,395 25,395 (49,808) (24,413) 377,000 154,312 531,312 (238,761) 292,551 $ - $ 556,707 $ 556,707 $ (288,568) $ 268,138 244 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Legal Year Ended June 30, 2014 245 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 830,604 $ (2,095) $ 828,509 $ - $ 828,509 Total operating revenues 830,604 (2,095) 828,509 - 828,509 OPERATING EXPENSES Personnel 866,822 16,664 850,158 (18,104) 832,053 Materials and services 38,049 4,742 33,307 - 33,307 Capital outlay 100 100 - - - Contingency 76,633 76,633 - - - Total operating expenses 981,604 98,139 883,465 (18,104) 865,361 Operating income (loss) (151,000) 96,044 (54,956) 18,104 (36,852) NONOPERATING REVENUES Investment earnings 1,000 (160) 840 - 840 Total nonoperating revenues (expenses), net 1,000 (160) 840 - 840 Change in net position (150,000) 95,884 (54,116) 18,104 (36,012) Total net position - Beginning of year 150,000 (8,238) 141,762 (204,546) (62,784) Total net position - End of year $ - $ 87,645 $ 87,645 $ (186,442) $ (98,796) 245 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Personnel Year Ended June 30, 2014 246 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 829,053 $ 11,988 $ 841,041 $ - $ 841,041 Total operating revenues 829,053 11,988 841,041 - 841,041 OPERATING EXPENSES Personnel 661,187 42,441 618,746 26,536 645,282 Materials and services 244,308 53,489 190,819 - 190,819 Capital outlay 100 100 - - - Contingency 165,458 165,458 - - - Total operating expenses 1,071,053 261,489 809,564 26,536 836,101 Operating income (loss) (242,000) 273,477 31,477 (26,536) 4,940 NONOPERATING REVENUES Investment earnings 2,000 100 2,100 - 2,100 Total nonoperating revenues 2,000 100 2,100 - 2,100 Change in net position (240,000) 273,577 33,577 (26,536) 7,040 Total net position - Beginning of year 240,000 32,520 272,520 (133,872) 138,648 Total net position - End of year $ - $ 306,096 $ 306,096 $ (160,409) $ 145,688 246 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Capital outlay Contingency Total operating expenses Operating loss NONOPERATING REVENUES Investment earnings Total nonoperating revenues Loss before transfers OTHER FINANCING SOURCES Transfers in Change in net position Total net position - Beginning of year Total net position - End of year Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Information Technology Year Ended June 30, 2014 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 2,136,403 $ 9,500 $ 2,145,903 $ - $ 2,145,903 2,136,403 9,500 2,145,903 - 2,145,903 2,032,623 61,554 1,971,069 81,777 2,052,846 425,557 74,063 351,494 - 351,494 100 100 - - - 358,700 358,700 - - - 2,816,980 494,417 2,322,563 81,777 2,404,340 (680,577) 503,917 (176,660) (81,777) (258,437) 3,500 1,067 4,567 - 4,567 3,500 1,067 4,567 - 4,567 (677,077) 504,984 (172,093) (81,777) (253,870) 66,000 - 66,000 - 66,000 (611,077) 504,984 (106,093) (81,777) (187,870) 611,077 146,566 757,643 (484,575) 273,068 $ - $ 651,550 $ 651,550 $ (566,353) $ 85,197 247 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position IT Reserve Year Ended June 30, 2014 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 234,000 $ - $ 234,000 $ - $ 234,000 Total operating revenues 234,000 - 234,000 - 234,000 OPERATING EXPENSES Materials and services 131,000 14,274 116,726 - 116,726 Depreciation - - - 73,200 73,200 Capital outlay 105,000 10,079 94,921 (94,921) - Total operating expenses 236,000 24,353 211,647 (21,720) 189,927 Operating income (loss) (2,000) 24,353 22,353 21,720 44,073 NONOPERATING REVENUES Investment earnings 1,500 2,501 4,001 - 4,001 Total nonoperating revenues 1,500 2,501 4,001 - 4,001 Change in net position (500) 26,853 26,353 21,720 48,074 Total net position - Beginning of year 494,096 106,891 600,987 191,029 792,016 Total net position - End of year $ 493,596 $ 133,744 _L627,340 $ 212,749 $ 840,089 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Insurance Year Ended June 30, 2014 249 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $2,642,270 $ 128,224 $ 2,770,494 $ - $ 2,770,494 Total operating revenues 2,642,270 128,224 2,770,494 - 2,770,494 OPERATING EXPENSES Personnel 333,327 9,322 324,005 6,223 330,228 Materials and services 2,109,773 134,654 1,975,119 (365,855) 1,609,264 Depreciation - - - 1,333 1,333 Capital outlay 100 100 - - - Contingency 2,721,279 2,721,279 - - - Total operating expenses 5,164,479 2,865,355 2,299,124 (358,298) 1,940,825 Operating income (loss) (2,522,209) 2,993,579 471,370 358,298 829,669 NONOPERATING REVENUES Investment earnings 12,050 4,712 16,762 - 16,762 Total nonoperating revenues 12,050 4,712 16,762 - 16,762 Income (loss) before transfers (2,510,159) 2,998,291 488,132 358,298 846,430 OTHER FINANCING USES Transfers out (7,320) - (7,320) - (7,320) Change in net position (2,517,479) 2,998,291 480,812 358,298 839,110 Total net position - Beginning of year 2,517,479 112,946 2,630,425 (3,213,689) (583,264) Total net position - End of year $ - $ 3,111,237 $ 31111,237 $ (2,855,390) _$_255 846 249 Deschutes County Schedule of Revenues, Expenses, and Changes in Net Position Health Benefits Trust Year Ended June 30, 2014 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 17,890,714 $ 240,100 $ 18,130,814 $ - $18,130,814 Total operating revenues 17,890,714 240,100 18,130,814 - 18,130,814 OPERATING EXPENSES Personnel 209,676 80,167 129,509 (4,482) 125,027 Materials and services 19,143,356 1,568,254 17,575,102 (170,072) 17,405,031 Contingency 10,297,682 10,297,682 - - - Total operating expenses 29,650,714 11,946,103 17,704,611 (174,554) 17,530,057 Operating income (loss) (11,760,000) 12,186,203 426,203 174,554 600,757 NONOPERATING REVENUES Investment earnings 60,000 12,217 72,217 - 72,217 Total nonoperating revenues 60,000 12,217 72,217 - 72,217 Change in net position (11,700,000) 12,198,420 498,420 174,554 672,973 Total net position - Beginning of year 11,700,000 264,908 11,964,908 (1,600,797) 10,364,111 Total net position - End of year $ - $ 12,463,327 $ 12,463,327 $(1,426,243) $11,037,084 250 Other Financial Schedules June 30, 2014 Deschutes County Deschutes County Schedule of Property Taxes Transactions - All County Taxes Year Ended June 30, 2014 Tax Year Beginning Adjustments Interest Turnovers from Taxes Receivable FY 2005 & Prior $ 45,966 $ (1,369) $ 9,385 $ 17,413 $ 36,570 FY 2006 9,626 (1,001) 330 706 8,249 FY 2007 13,449 (1,959) 1,045 2,496 10,039 FY 2008 66,440 (14,012) 22,453 57,339 17,541 FY 2009 150,597 (19,044) 29,617 85,805 75,364 FY 2010 640,954 (27,796) 182,086 652,805 142,438 FY 2011 1,832,018 (23,113) 418,465 1,758,912 468,458 FY 2012 3,018,849 (17,868) 319,989 1,957,926 11363,045 FY 2013 6,362,327 (265,880) 250,167 3,976,479 21370,135 FY 2014 279,868,511 (915,377) (6,801,699) 266,725,196 5,426,239 TOTALS $ 292,008,737 1 $ (1,287,420) $ (5,568,162) Other Distributions: Interest earned on unsegregated taxes Other tax distribution TOTAL CASH COLLECTIONS Summary: Deschutes County General Fund Special Revenue Funds Debt Service Funds Proprietary Funds Other taxing jurisdictions 275,235,076 $ 9,918,079 30,427 71,130 $ 275,336,633 $ 878,831 1,346,626 3,319 144,207 7,545,096 $ 9,918,079 251 Deschutes County Schedule of Long -Term Debt Transactions Year Ended June 30, 2014 252 Final Amount of Outstanding Bonds Outstanding Date of Maturity Original July 1, Bonds Called and June 30, Series Issue Date Issue 2013 Issued Matured 2014 BONDSPAYABLE General Obligation Bonds Series 1996 10/01/1996 06/01/2016 $ 1,145,000 $ 255,000 $ - $ 80,000 $ 175,000 Refunding Series 2003 12/01/2003 06/01/2014 5,750,000 855,000 - 855,000 - Refunding Series 2012 12/16/2012 12/01/2016 12,640,000 11,150,000 - 3,715,000 7,435,000 Total General Obligation Bonds 19,535,000 12,260,000 - 4,650,000 7,610,000 Pension Bonds Series 2002 03/28/2002 06/01/2028 5,429,586 4,286,387 - 82,215 4,204,172 Series 2004 05/27/2004 06/01/2028 7,090,000 6,740,000 - 145,000 6,595,000 Total Pension Bonds 12,519,586 11,026,387 - 227,215 10,799,172 Full Faith and Credit Bonds Refunding Series 2004 09/15/2004 12/01/2015 1,790,000 505,000 - 165,000 340,000 Series 2005 02/01/2005 12/01/2024 6,300,000 4,315,000 - 290,000 4,025,000 Refunding Series 2005 08/11/2005 06/01/2018 5,915,000 2,560,000 - 480,000 2,080,000 Series 2007 04/10/2007 06/02/2027 9,615,000 7,515,000 - 410,000 7,105,000 Series 2008 12/30/2008 06/01/2028 9,635,000 8,315,000 - 410,000 7,905,000 Series 2009 04/09/2009 06/01/2028 3,215,000 2,720,000 - 140,000 2,580,000 Series 2010 05/27/2010 12/01/2029 1,320,000 1,215,000 - 55,000 1,160,000 Refunding Series 2012 03/29/2012 12/01/2032 26,345,000 26,105,000 - 1,020,000 25,085,000 Series 2013 08/08/2013 06/01/2038 8,405,000 - 8,405,000 220,000 8,185,000 Total Full Faith and Credit Bonds 72,540,000 53,250,000 8,405,000 3,190,000 58,465,000 Full Faith and Credit LID Bonds Series 2007 03/20/2007 06/01/2017 1,077,000 237,560 - 115,711 121,849 Series 2009 01/15/2009 01/01/2018 502,250 181,440 - 61,019 120,421 Total Full Faith and Credit LID Bonds 1,579,250 419,000 - 176,730 242,270 Total all Bonds 106,173,836 76,955,387 8,405,000 8,243,945 77,116,442 Notes Payable Oregon Economic Develc 01/01/2003 01/01/2027 550,000 380,402 18,381 362,021 Oregon DEQ 03/01/2011 09/01/2015 40,000 22,501 22,501 - Antler Butte Properties 05/15/2014 05/15/2017 150,000 - 150,000 661 149,339 Total Notes Payable 740,000 402,903 150,000 41,543 511,360 Total Long -Term Debt $ 106,913,836 $77,358,290 $ 8,555,000 $ 8,285,488 $77,627,802 252 Deschutes County Schedule of Long -Term Debt Interest Transactions Year Ended June 30, 2014 253 Unmatured Unmatured Interest and and Rates on Outstanding Coupons Outstanding Outstanding July 1, Bonds Called and June 30, Series Balances 2013 Issued Matured 2014 BONDSPAYABLE General Obligation Bonds Series 1996 5.70% $ 29,640 $ - $ 14,535 $ 15,105 Refunding Series 2003 3.40% 14,535 - 14,535 - Refunding Series 2012 2%-3% 521,075 - 227,350 293,725 Total General Obligation Bonds 565,250 - 256,420 308,830 Pension Bonds Series 2002 6.85% 4,146,718 - 360,893 3,785,825 Series 2004 5.35% - 6.095% 4,028,142 - 405,801 3,622,341 Total Pension Bonds 8,174,860 766,693 7,408,167 Full Faith and Credit Bonds Refunding Series 2004 3.3%-3.4% 25,683 - 14,035 11,648 Series 2005 3.4%-4.2% 1,108,362 - 160,279 948,083 Refunding Series 2005 3.5%-4% 296,320 - 94,430 201,890 Series 2007 4-4.25% 2,507,325 - 305,425 2,201,900 Series 2008 4-4.625% 3,175,569 - 353,549 2,822,020 Series 2009 3.375 - 4.45% 995,059 - 109,378 885,682 Series 2010 2-4% 414,028 - 39,271 374,757 Refunding Series 2012 2-4% 8,445,847 - 753,463.76 7,692,383 Series 2013 3.25-4.5% - 5,166,017 269,504 4,896,513 Total Full Faith and Credit Bonds 16,968,193 5,166,017 2,099,334 20,034,876 Full Faith and Credit LID Bonds Series 2007 4.75% 7,962 - 7,652 310 Series 2009 5.35% 16,281 - 15,985 296 Total Full Faith and Credit LID Bonds 24,243 - 23,637 606 Total all Bonds 25,732,546 5,166,017 3,146,084 27,752,479 Notes Payable Oregon Economic Development 5.00% 156,174 - 18,668 137,506 Oregon DEQ 1.25% 425 - 425 - Antler Butte Properties 3.00% - 12,429 375 12,054 Total Notes Payable 156,599 12,429 19,468 149,560 Total Long -Term Debt $ 25,889,145 $ 5,178,446 $ 3,165,552 $ 27,902,039 253 Deschutes County Schedule of Future Debt Service Requirements of General Obligation Bonds June 30, 2014 254 Governmental Activities Business Activities Total Requirements Series 1996 Ref Series 2012 Year of Maturity Principal Interest Total Principal Interest Principal Interest 2015 $2,390,000 $ 161,575 $2,551,575 $ 85,000 $ 9,975 $ 2,305,000 $ 151,600 2016 2,625,000 108,330 2,733,330 90,000 5,130 2,535,000 103,200 2017 2,595,000 38,925 2,633,925 - - 2,595,000 38,925 $7,610,000 $ 308,830 $7,918,830 $ 175,000 $ 15,105 $7,435,000 $ 293,725 254 Year of Maturity Principal Deschutes County Schedule of Future Debt Service Requirements of Pension Obligation Bonds June 30, 2014 Total Requirements Interest Total Series 2002 Series 2004 Principal Interest Principal interest 2015 $ 263,223 $ 777,607 $ 1,040,830 $ 83,223 $ 379,885 $ 180,000 $ 397,723 2016 300,634 789,989 1,090,623 85,634 402,474 215,000 387,515 2017 335,902 797,313 1,133,215 85,902 422,206 250,000 375,107 2018 377,660 805,878 1,183,537 87,660 445,448 290,000 360,430 2019 423,139 813,170 1,236,309 88,139 469,969 335,000 343,201 2020 503,615 792,544 1,296,158 118,615 469,493 385,000 323,051 2021 805,000 550,261 1,355,261 365,000 250,368 440,000 299,893 2022 920,000 498,792 1,418,792 420,000 225,365 500,000 273,427 2023 1,040,000 439,947 1,479,947 480,000 196,595 560,000 243,352 2024 1,170,000 373,383 1,543,383 540,000 163,715 630,000 209,668 2025 700,000 297,995 997,995 - 126,725 700,000 171,270 2026 1,465,000 255,330 1,720,330 685,000 126,725 780,000 128,605 2027 1,640,000 160,866 1,800,866 770,000 79,803 870,000 81,064 2028 855,000 55,095 910,095 395,000 27,058 460,000 28,037 $10,799,172 $ 71408,167 $18,207,339 $ 45204,172 $ 35785,826 $ 61595,000 $ 31622,341 255 Year of Maturity Principal 2015 $ 3,280,000 2016 3,405,000 2017 3,350,000 2018 3,460,000 2019 3,015,000 2020 3,120,000 2021 3,225,000 2022 3,340,000 2023 3,470,000 2024 3,470,000 2025 3,600,000 2026 3,275,000 2027 3,390,000 2028 2,805,000 2029 1,895,000 2030 1,965,000 2031 1,935,000 2032 2,005,000 2033 2,070,000 2034 435,000 2035 455,000 2036 480,000 2037 500,000 2038 520,000 766,364 $ 58,465,000 Deschutes County Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds June 30, 2014 Total Requirements Ref Series 2004 Interest Total Principal Interest $ 2,058,154 $ 5,338,154 $ 165,000 $ 8,673 1,945,988 5,350,988 175,000 2,975 1,830,730 5,180,730 - - 1,719,531 5,179,531 - - 1,596,685 4,611,685 - - 1,490,019 4,610,019 - - 1,384,928 4,609,928 - - 1,274,331 4,614,331 - - 1,151,579 4,621,579 - - 1,022,135 4,492,135 - - 894,153 4,494,153 - - 766,364 4,041,364 - - 642,996 4,032,996 - - 513,771 3,318,771 - - 409,401 2,304,401 - - 347,201 2,312,201 - - 283,929 2,218,929 - - 219,381 2,224,381 - - 151,275 2,221,275 - - 107,550 542,550 - - 87,975 542,975 - - 67,500 547,500 - - 45,900 545,900 - - 23,400 543,400 - - $ 20,034,875 $ 78,499,875 $ 340,000 $ 11,648 (continued) 256 Deschutes County Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds June 30, 2014 Series 2005 Year of Maturity Principal 2015 $ 300,000 2016 310,000 2017 325,000 2018 335,000 2019 350,000 2020 360,000 2021 375,000 2022 390,000 2023 410,000 2024 425,000 2025 445,000 2026 - 2027 - 2028 - 2029 - 2030 - 2031 - 2032 - 2033 - 2034 - 2035 - 2036 - 2037 - 2038 - Interest 150,394 139,869 128,594 116,672 104,038 90,500 76,025 60,725 44,520 27,403 9,345 Ref Series 2005 Principal $ 495,000 510,000 530,000 545,000 Interest 77,870 60,545 41,675 21,800 $ 4,025,000 $ 948,083 $ 2,080,000 $ 201,890 (continued) 257 Deschutes County Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds June 30, 2014 Series 2007 Year of Maturity Principal 2015 $ 425,000 2016 445,000 2017 460,000 2018 480,000 2019 500,000 2020 520,000 2021 540,000 2022 560,000 2023 585,000 2024 610,000 2025 635,000 2026 660,000 2027 685,000 2028 - 2029 - 2030 - 2031 - 2032 - 2033 - 2034 - 2035 - 2036 - 2037 - 2038 - Interest 289,025 272,025 254,225 235,825 216,625 196,625 175,825 154,225 131,825 107,694 82,531 56,338 29,113 Series 2008 Principal $ 425,000 450,000 465,000 485,000 500,000 525,000 545,000 565,000 590,000 615,000 640,000 670,000 700,000 730,000 Interest 337,149 320,149 302,149 283,549 264,149 244,149 223,149 200,531 176,519 151,149 124,243 95,763 65,613 33,763 $ 7,105,000 $ 2,201,900 $ 7,905,000 $ 2,822,020 (continued) 258 Deschutes County Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds June 30, 2014 Series 2009 Year of Maturitv Principal 2015 $ 145,000 2016 150,000 2017 155,000 2018 160,000 2019 165,000 2020 170,000 2021 175,000 2022 185,000 2023 190,000 2024 200,000 2025 210,000 2026 215,000 2027 225,000 2028 235,000 2029 - 2030 - 2031 - 2032 - 2033 - 2034 - 2035 - 2036 - 2037 - 2038 - Interest 104,828 99,934 94,684 89,181 83,501 76,901 70,101 63,101 55,470 47,633 39,383 30,038 20,470 10,458 Series 2010 Principal $ 55,000 55,000 60,000 60,000 65,000 65,000 65,000 70,000 70,000 75,000 80,000 80,000 85,000 90,000 90,000 95,000 Interest 38,171 37,071 35,809 34,309 32,628 30,799 28,858 26,713 24,394 21,806 18,900 15,900 12,700 9,200 5,600 1,900 $ 2,580,000 $ 885,681 $ 1,160,000 $ 374,757 (continued) 259 Deschutes County Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds June 30, 2014 Ref Series 2012 Year of $ 324,531 Maturity Principal 2015 $ 1,050,000 2016 1,085,000 2017 1,120,000 2018 1,155,000 2019 1,185,000 2020 1,225,000 2021 1,260,000 2022 1,295,000 2023 1,340,000 2024 1,250,000 2025 1,285,000 2026 1,330,000 2027 1,365,000 2028 1,405,000 2029 1,445,000 2030 1,495,000 2031 1,545,000 2032 1,600,000 2033 1,650,000 2034 - 2035 - 2036 - 2037 - 2038 - Interest 727,514 695,489 662,414 634,064 598,814 562,864 531,714 499,054 458,495 416,070 381,170 341,945 301,520 259,970 217,220 173,120 126,748 77,800 26,400 $ 25,085,000 $ 7,692,383 Series 2013 Principal Interest $ 220,000 $ 324,531 225,000 317,931 235,000 311,181 240,000 304,131 250,000 296,931 255,000 288,181 265,000 279,256 275,000 269,981 285,000 260,356 295,000 250,381 305,000 238,581 320,000 226,381 330,000 213,581 345,000 200,381 360,000 186,581 375,000 172,181 390,000 157,181 405,000 141,581 420,000 124,875 435,000 107,550 455,000 87,975 480,000 67,500 500,000 45,900 520,000 23,400 $ 8,185,000 $ 4,896,513 260 Deschutes County Schedule of Future Debt Service Requirements of Full Faith and Credit LID Bonds June 30, 2014 Total Requirements Governmental Activities Series 2007 Series 2009 Year of Maturity Principal Interest Total Principal Interest Principal Interest 2015 $ 242,270 $ 606 $ 242,876 $ 121,849 $ 310 $ 120,421 $ 296 $ 242,270 $ 606 $ 242,876 $ 121,849 $ 310 $ 120,421 $ 296 261 Deschutes County Schedule of Future Debt Service Requirements Notes June 30, 2014 $ 149,339 $ 12,054 $ 362,021 $ 137,506 262 Governmental Activities Business Activities Antler Butte Properties OR Economic Development Year of Maturity Principal Interest Principal Interest 2015 $ 8,061 $ 4,370 $ 18,535 $ 17,832 2016 8,306 4,125 23,699 16,971 2017 132,973 3,559 23,875 15,845 2018 - - 24,059 14,711 2019 - - 24,256 13,544 2020 - - 24,465 12,355 2021 - - 29,683 11,157 2022 - - 29,918 9,672 2023 - - 30,163 8,177 2024 - - 30,422 6,668 2025 - - 30,693 5,147 2026 - - 35,977 3,613 2027 - - 36,276 1,814 $ 149,339 $ 12,054 $ 362,021 $ 137,506 262 Statistical Section June 30, 2014 Deschutes County Deschutes County Statistical Section Contents 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. Pages Financial Trends 264-269 These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed over time. Revenue Capacity 270-277 These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. Debt Capacity 278-285 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 286-287 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 288-293 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. Sources: Unless otherwise noted, the information in these schedules is derived from the published comprehensive annual financial reports for the relevant year. The County implemented GASB Statement No. 65 in fiscal 2014; schedules containing information for years prior to fiscal year 2014 have not been restated in accordance with GASB No. 65, unless otherwise stated. Deschutes County Net Position by Component — Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2005 Restated 2006 2007 2008 2009 Governmental activities Net investment in capital assets $ 40,512,761 $ 42,869,115 $ 48,887,100 $ 70,023,840 $ 76,240,077 Restricted 15,300,732 2,215,621 2,292,308 2,261,887 2,411,903 Unrestricted 33,928,281 52,915,414 60,027,183 63,957,826 67,437,330 Total governmental activities net position $ 89,741,774 $ 98,000,150 $ 111,206,591 $ 136,243,553 $ 146,089,310 Business -type activities Net investment in capital assets $ 12,364,858 $ 12,336,714 $ 12,921,454 $ 17,577,695 $ 20,821,757 Restricted 897,205 3,822,723 7,004,402 1,172,262 1,130,284 Unrestricted 5,180,223 5,951,233 5,320,037 8,835,465 4,004,099 Total business -type activities net position $ 18,442,286 $ 22,110,670 $ 25,245,893 $ 27,585,422 $ 25,956,140 Primary government Net investment in capital assets $ 52,877,619 $ 55,205,829 $ 61,808,554 $ 87,601,535 $ 97,061,834 Restricted 16,197,937 6,038,344 9,296,710 3,434,149 3,542,187 Unrestricted 39,108,504 58,866,647 65,347,220 72,793,291 71,441,429 Total primary government net position $ 108,184,060 $ 120,110,820 $ 136,452,484 $ 163,828,975 $ 172,045,450 264 Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business -type activities Net investment in capital assets Restricted Unrestricted Total business -type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position Deschutes County Net Position by Component — Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2010 2011 2012 2013 2014 $ 89,584,653 $ 92,525,275 $ 95,512,157 $ 89,462,800 $ 90,528,453 3,755,874 3,979,615 4,015,788 2,368,923 899,558 72,846,870 73,592,055 71,206,363 76,086,991 85,864,467 $166,187,397 $ 170,096,945 $ 170,734,308 $ 167,918,714 $ 177,292,478 $ 23,311,911 $ 25,780,444 $ 25,824,953 $ 27,369,640 $ 27,996,595 1,177,729 1,191,785 951,696 726,437 326,768 615,719 (1,399,646) (1,667,939) (3,269,965) (1,578,435) $ 25,105,359 $ 25,572,583 $ 25,108,710 $ 24,826,112 $ 26,744,928 $112,896,564 $ 118,305,719 $ 121,337,110 $ 116,832,440 $ 118,525,048 4,933,603 5,171,400 4,967,484 3,095,362 1,226,325 73,462,589 72,192,409 69,538,424 72,817,030 84,286,032 $191,292,756 $ 195,669,528 $ 195,843,018 $ 192,744,832 $ 204,037,405 265 Expenses Governmental activities General government Public safety County roads Health and welfare Education Interest and fiscal charges Total governmental activities expenses Business -type activities Solid waste Fair & expo center RV park Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities Charges for services General government Public safety County roads Health and welfare Education Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities Charges for services Solid waste Fair & expo center RV park Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net Deschutes County Changes in Net Position — Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year �z�I�I.�z�1�r��Ia►��ml:��m>:� $ 18,872,551 $ 25,751,315 $ 24,161,521 $ 26,992,445 $ 27,241,378 35,908,104 Business -type activities 35,536,067 (413,913) 39,055,432 149,374 45,723,250 (780,359) 47,493,147 9,133,389 (4,184,828) 14,362,681 $ (26,567,161) 13,360,074 $ (38,702,670) 14,609,557 $ (58,736,182) 17,478,873 20,471,295 21,977,467 23,923,726 22,733,857 23,203,391 1,151,264 1,196,665 1,217,999 1,213,866 1,137,873 3,486,134 3,370,842 3,221,880 3,160,571 3,311,808 89,022,737 Property taxes, levied for general purpose 102,195,037 21,637,975 104,940,632 23,605,720 114,433,546 25,894,192 119,866,470 5,291,801 $ 31,833,253 5,908,747 7,033,143 6,462,905 8,414,867 4,205,671 21,530,214 4,160,993 Property taxes, levied for bonded debt 4,275,272 2,824,853 4,539,224 3,076,576 4,152,893 - - 3,233,344 - - 312,882 9,497,472 3,299,895 10,069,740 3,535,226 11,308,415 Investment earnings 11,002,129 1,758,483 12,880,642 $ 98,520,209 $ 112,264,777 $ 116,249,047 $ 125,435,675 $ 132,747,112 - (6,016) - - Interfund gain (loss) on transfer of capital assets $ 17,215,978 $ 14,338,082 $ 14,021,619 $ 9,692,948 $ 14,590,354 4,808,358 (22,183) 5,187,798 5,638,521 (27,954) 11,503,488 - 3,665,436 12,685,581 13,907,252 15,208,589 14, 899,440 12,822,399 2,396,392 Loss on discontinued project 5,079,797 - 4,913,531 - 5,134,211 - 1,146,444 1,150,241 - 1,194,230 1,022,945 1,021,353 919,915 23,126,283 58,847,972 23,433,909 Business -type activities 24,221,298 22,035,484 30,390,518 1,486,656 1,015,624 1,991,818 16,335,611 1,780,050 62,869,489 64,156,692 67,018,321 Property taxes, levied for bonded debt 80,622,535 1,904,154 65,315,116 2,072,731 2,013,593 1,959,960 2,292,465 Investment earnings 427,756 7,102,223 851,352 7,909,923 1,324,391 8,221,483 989,381 7,749,609 Interfund equity transfer 6,639,633 1,905,840 2,149,531 2,199,765 2,709,993 - 1,912,771 - (671) - 109,698 - - - 89,005 75,496 159,660 106,808 84,955 54,405 - Transfers - 682,685 - 485,230 94,190 584,556 - 9,083,559 (248,733) 10,219,114 10,528,056 10,638,747 8,695,814 $ 71,953,048 $_74,375,806 2,555,546 $_77,546,3 77 $ 91,261,282 $ 74,010,930 Governmental activities $ (26,153,248) $ (38,038,345) $ (37,922,311) $ (33,811,011) $ (54,551,354) Business -type activities (413,913) 149,374 (780,359) (363,382) (4,184,828) Total primary government net expense $ (26,567,161) $ (37,888,971) $ (38,702,670) $ (34,174,393) $ (58,736,182) General Revenues and Other Changes in Net Postion Governmental activities Taxes Property taxes, levied for general purpose $ 21,637,975 $ 23,605,720 $ 25,894,192 $ 26,369,350 $ 31,833,253 Property taxes, levied for sheriff services 12,890,168 14,066,727 15,368,010 21,530,214 22,976,966 Property taxes, levied for bonded debt 2,824,853 3,076,576 2,935,056 3,097,850 3,233,344 Transient room tax 3,048,662 3,283,905 3,299,895 3,535,226 3,212,173 Investment earnings 1,758,483 2,858,718 4,250,120 4,068,901 2,892,642 Interfund equity transfer - - (6,016) - - Interfund gain (loss) on transfer of capital assets 671 (109,698) Gain (loss) on sale of capital assets (22,183) (27,954) - - Transfers (682,685) (485,230) (584,556) 246,431 248,733 Loss on discontinued project - - - - - Total governmental activities 41,455,944 46,296,718 51,128,747 58,847,972 64,397,111 Business -type activities Taxes Property taxes, levied for bonded debt 1,904,154 2,072,731 2,013,593 1,959,960 2,292,465 Investment earnings 427,756 851,352 1,324,391 989,381 511,814 Interfund equity transfer - - 6,016 - - Interfund gain (loss) on transfer of capital assets (671) 109,698 - Gain (loss) on sale of capital assets (45,016) - (12,974) Transfers 682,685 485,230 584,556 (246,431) (248,733) Total business -type activities 2,968,908 3,519,011 3,915,582 2,702,910 2,555,546 Total primary government $ 44,424,852 $ 49,815,729 $ 55,044,329 $ 61,550,882 $ 66,952,657 Change in Net Position Governmental activities $ 15,302,696 $ 8,258,373 $ 13,206,436 $ 25,036,961 $ 9,845,757 Business -type activities 2,554,995 3,668,385 3,135,223 2,339,528 (1,629,282) Total primary government $ 17,857,691 $ 11,926,758 $ 16,341,659 $ 27,376,489 $ 81216,475 266 Expenses Governmental activities: General government Public safety County roads Health and welfare Education hiterest and fiscal charges Total governmental activities expenses Business -type activities: Solid waste Fair & expo center RV park Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public safety County roads Health and welfare Education Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Solid waste Fair & expo center RV park Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net Deschutes County Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year rc�4411E $ 24,782,169 $ 22,540,890 $ 24,888,722 $ 25,312,619 $ 25,801,150 50,033,277 53,944,031 56,696,103 (3,305,787) 57,806,152 57,786,656 14,701,828 $ (48,842,769) 18,600,706 _L± 16,436,367 $ (57,376,677) 16,139,486 15,441,429 23,831,929 28,828,892 30,416,145 Governmental activities: 31,682,855 35,154,506 1,078,769 979,980 687,511 Taxes 684,632 685,916 3,401,395 3,275,788 2,716,110 Property taxes, levied for general purpose 2,485,174 33,441,245 2,556,364 117,829,367 $ 33,682,238 128,170,287 $ 131,840,958 Property taxes, levied for sheriff services 134,110,918 24,094,637 137,426,020 7,335,596 23,551,915 7,347,661 7,801,912 Property taxes, levied for bonded debt 8,122,538 3,513,631 6,327,028 3,710,074 3,290,215 3,819,399 3,876,575 Transient room tax 3,392,264 2,959,337 3,368,464 322,179 3,357,365 343,898 338,003 Investment earnings 339,145 1,450,594 355,752 11,367,849 908,178 11,510,958 12,016,490 Interfund equity transfer 11,853,947 - 10,051,244 $ 129,197,216 $ 139,681,245 $ 143,857,448 $ 145,964,865 $ 147,477,264 Gain (loss) on sale of capital assets - $ 12,272,431 $ 11,744,342 $ 9,975,482 $ 11,827,132 $ 11,593,147 7,508,624 (447,771) 7,434,816 6,317,924 Loss on discontinued project 8,876,636 - 6,252,467 13,118,125 - 13,808,489 15,917,719 Total governmental activities 14,730,662 65,672,327 16,933,084 1,018,990 64,342,140 1,747,716 2,062,633 Business -type activities: 2,243,963 5,222,623 29,127,520 32,195,732 33,630,072 Taxes 31,233,012 40,070,038 9,209,437 765,663 232,363 Property taxes, levied for bonded debt 86,514 2,459,814 437,240 72,255,127 2,334,005 67,696,758 68,136,193 Investment earnings 68,997,919 170,817 80,508,599 71,876 60,134 47,562 52,612 Interfund equity transfer - 6,362,100 - 6,665,487 6,506,366 Interfund gain (loss) on transfer of capital assets 6,793,369 7,364,322 1,536,329 1,992,262 1,963,398 Gain (loss) on sale of capital assets 1,761,108 1,783,377 115,126 - 162,049 154,633 Transfers 165,096 (212,883) 217,036 85,765 447,771 39,271 86,306 Total business -type activities 49,790 2,417,748 50,964 - 2,841,910 - - Total primary government - 68,090,075 176,289 8,099,320 $ 67,184,050 8,859,069 $ 8,710,703 Change in Net Position 8,769,363 9,591,988 $ 80,354,447 $ 76,555,827 $ 76,846,896 $ 77,767,282 $ 90,100,587 Governmental activities $ (45,574,240) $ (60,473,529) $ (63,704,765) $ (65,112,999) $ (56,917,421) Business -type activities (3,268,529) (2,651,889) (3,305,787) (3,084,584) (459,255) Total primary government net expense $ (48,842,769) _Lj6 _L± _Lj6 $ (57,376,677) General Revenues and Other Changes in Net Postion Governmental activities: Taxes Property taxes, levied for general purpose $ 33,441,245 $ 33,663,728 $ 33,682,238 $ 33,971,127 $ 35,079,263 Property taxes, levied for sheriff services 24,094,637 23,666,633 23,551,915 24,285,093 25,284,848 Property taxes, levied for bonded debt 3,513,631 3,460,558 3,290,215 3,083,800 1,982,347 Transient room tax 2,959,337 3,151,974 3,357,365 3,656,126 4,340,159 Investment earnings 1,450,594 981,569 908,178 787,866 986,444 Interfund equity transfer - - - - - Interfund gain (loss) on transfer of capital assets Gain (loss) on sale of capital assets - Transfers 212,883 (541,385) (447,771) (337,272) (539,938) Loss on discontinued project - - - (3,149,335) - Total governmental activities 65,672,327 64,383,077 64,342,140 62,297,405 67,133,123 Business -type activities: Taxes Property taxes, levied for bonded debt 2,459,814 2,505,852 2,334,005 2,417,152 2,086,179 Investment earnings 170,817 71,876 60,134 47,562 52,612 Interfund equity transfer - - - - - Interfund gain (loss) on transfer of capital assets Gain (loss) on sale of capital assets - - - - Transfers (212,883) 541,385 447,771 337,272 539,938 Total business -type activities 2,417,748 3,119,113 2,841,910 2,801,986 2,678,729 Total primary government $ 68,090,075 $ 67,502,190 $ 67,184,050 $ 65,099,391 $ 69,811,852 Change in Net Position Governmental activities $ 20,098,087 $ 3,909,548 $ 637,375 $ (2,815,594) $ 10,215,702 Business -type activities (850,781) 467,224 (463,877) (282,598) 2,219,473 Total primary government $ 19,247,306 $ 4,376,772 $ 173,498 $ (3,098,192) $ 12,435,175 267 Deschutes County Fund Balances - Governmental Funds — Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2005 2006 2007 2008 2009 General Fund Unreserved $ 5,669,705 $ 6,830,482 $ 6,841,976 $ 6,729,202 $ 7,119,757 Committed n/a n/a n/a n/a n/a Assigned n/a n/a n/a n/a n/a Unassigned n/a n/a n/a n/a n/a Total General Fund $ 5,669,705 $ 6,830,482 $ 6,841,976 $ 6,729,202 $ 71119,757 All Other Governmental Funds Reserved/Nonspendable $ 766,609 $ 857,174 $ 792,928 $ 989,812 $ 871,486 Unreserved, reported in: Special revenue funds 41,773,226 46,203,588 50,401,270 50,491,712 49,541,406 Capital projects funds 2,066,324 287,502 677,141 (2,879,998) 7,228,678 Debt service funds 1,638,674 1,330,609 1,157,785 1,127,264 959,147 Total Unreserved 45,478,224 47,821,699 52,236,196 48,738,978 57,729,231 Assigned, reported in: Special revenue funds n/a n/a n/a n/a n/a Capital projects funds n/a n/a n/a n/a n/a Debt service funds n/a n/a n/a n/a n/a Total Assigned - - - - - Unassigned, reported in: Special revenue funds n/a n/a n/a n/a n/a Capital projects funds n/a n/a n/a n/a n/a Debt service funds n/a n/a n/a n/a n/a Total Unassigned - - - - - Total all other governmental funds $ 46,244,833 $48,678,873= $ 53,029,124 $ 49,728,790 $ 58,600,717 n/a - Not available General Fund Unreserved Committed Assigned Unassigned Total General Fund All Other Governmental Funds Reserved/Nonspendable Unreserved, reported in: Special revenue funds Capital projects funds Debt service funds Total Unreserved Assigned, reported in: Special revenue funds Capital projects funds Debt service funds Total Assigned Unassigned, reported in: Special revenue funds Capital projects funds Debt service funds Total Unassigned Total all other governmental funds n/a - Not available Deschutes County Fund Balances - Governmental Funds — Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2010 2011 2012 2013 2014 $ 9,933,612 $ - $ - $ - $ - n/a - - - - n/a 9,481,113 10,082,716 8,657,374 8,031,837 n/a 4,623,757 5,244,633 6,836,112 7,649,760 $ 9,933,612 $ 14,104,870 $15,327,349 $15,493,486 $15,681,597 $ 806,696 $ 888,106 $ 894,228 $ 1,272,249 $ 1,418,998 58,071,242 958,911 1,101,183 60,131,336 n/a 56,410,286 60,437,838 67,033,736 78,166,205 n/a 1,548,651 1,911,068 759,229 606,292 n/a 1,500,888 1,338,499 1,056,083 488,047 - 59,459,825 63,687,405 68,849,048 79,260,543 n/a - - - - n/a (3,223,574) (3,989,721) (2,057,525) (1,791,930) n/a - - - - - (3,223,574) (3,989,721) (2,057,525) (1,791,930) $ 60,938,032 $ 57,124,357 $ 60,591,912 $ 68,063,772 $ 78,887,611 269 Deschutes County Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Sources: Deschutes County Assessor's Department and Deschutes County Tax Office (1) includes tax-exempt property 270 Real Property Personal Property Manufactured Homes Taxable Taxable Taxable Assessed Estimated Assessed Estimated Assessed Estimated Fiscal Year Value Actual Value Value Actual Value Value Actual Value 2005 $ 11,497,220 $ 16,890,285 $ 308,985 $ 308,999 $ 73,771 $ 82,344 2006 12,640,050 20,207,657 339,456 339,486 62,959 67,888 2007 13,870,767 27,611,646 383,447 383,447 61,946 67,553 2008 15,020,692 36,089,166 415,380 415,548 58,898 65,957 2009 15,988,780 36,759,449 466,756 466,839 55,989 61,302 2010 16,729,496 32,244,472 439,296 439,299 54,578 60,723 2011 16,875,389 22,613,760 411,330 411,330 48,228 51,783 2012 16,786,626 20,692,642 390,053 390,053 44,522 47,327 2013 17,006,004 20,134,879 376,567 376,567 42,964 45,308 2014 17,812,786 21,290,547 372,149 372,149 47,241 50,377 Sources: Deschutes County Assessor's Department and Deschutes County Tax Office (1) includes tax-exempt property 270 Deschutes County Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years (in thousands of dollars) 271 Assessed Public Utilities Exem tions Total Range of Value (1) as a Taxable Taxable Taxable Total Percentage of Assessed Estimated Assessed Assessed Estimated Direct Tax Estimated Value Actual Value Value Value Actual Value Rates Paid Actual Value $ 348,827 $ 351,843 $ 16,242 $ 12,212,561 $ 17,633,471 2.7001-5.6809 69.350% 323,329 327,647 16,319 13,349,475 20,942,678 2.6938-5.7206 63.821% 331,845 338,869 22,612 14,625,393 28,401,515 2.6548-5.7385 51.575% 352,616 369,411 23,638 15,823,948 36,940,082 2.9780-5.8087 42.901% 388,838 403,899 25,803 16,874,560 37,691,489 2.9170-6.1060 44.839% 417,996 430,990 28,577 17,612,789 33,175,484 2.7805-6.2059 53.176% 436,787 450,305 31,009 17,740,725 23,527,178 2.8947-6.2598 75.537% 438,134 453,696 33,166 17,626,169 21,583,718 2.8818-6.2468 81.818% 429,361 445,442 34,370 17,820,526 21,002,197 2.9121-6.2710 85.014% 441,711 455,806 36,566 18,637,321 22,168,879 2.8159-6.1734 84.235% 271 Page intentionally left blank. Deschutes County Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) Fiscal Year Taxes are Payable 2005 2006 2007 2008 County direct rates Rates levied to all taxable County properties: General 1.2783 1.2783 1.2783 1.2783 Jail Bond 0.1659 0.1612 0.1402 0.1370 Fairgrounds Bond 0.1617 0.1601 0.1421 0.1285 Sheriff (Countywide) - - - 0.9500 County Extension/41-1 CSD 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.1618 0.1618 911 Local Option 0.0900 0.0900 0.0900 - County districts paid by all properties 1.8801 1.8738 1.8348 2.6780 Rates levied to taxable rural County properties: Sheriff (County) 1.6000 1.6000 1.6000 - Sheriff (Rural) - - - 1.4000 Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) 0.8200 0.8200 0.8200 - Certain County properties are subject to one of the following rates: Bend Library Bond 0.0925 0.0991 0.0856 0.0858 Redmond Library Bond 0.0782 0.0723 0.0618 0.0588 Sunriver Library Bond 0.0708 0.0668 0.0637 0.0607 Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt - - 0.4000 0.4000 Paid by Sunriver properties only: Sunriver Service District 2.9100 2.9600 3.0200 3.0700 Range of County Direct Rates Paid 2.7001 - 5.6809 2.6938 - 5.7206 2.6548 - 5.7385 2.6780 - 5.8087 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 Redmond 6.0643 6.0643 6.0643 6.1643 Sisters 2.6417 2.6417 2.6417 2.6417 La Pine - - - 1.8800 Bend Gap Bond - - - - Bend Urban Renewal Special Levy 0.2358 0.2192 0.2266 0.2595 City of Redmond Bond 0.1439 0.1196 0.0893 0.0755 Sunriver Service District 2.9100 2.9600 3.0200 3.0700 Redmond Downtown Urban Renewal Lei 0.4718 0.4676 0.3248 0.1719 Redmond Airport Urban Renewal Levy - - - - Library district rates 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924 - 2.7317 1.0924 - 2.7317 1.0924 - 2.7317 1.0924 - 3.2087 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 School district rates 5.4946 - 7.5716 5.4915 - 7.5031 6.4665 - 7.3835 6.4474 - 7.2751 Road district rates 0.4249 - 3.6500 0.7831 - 3.6500 0.7831 - 3.6500 0.7831 - 3.6500 Other special district rates 0.2895 0.2895 0.2895 0.3898 Sources: Deschutes County Assessor's Office and Deschutes County Finance Department (continued) 273 Deschutes County Direct Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) Fiscal Year Taxes are Payable 2009 2010 2011 2012 County direct rates Rates levied to all taxable County properties: General 1.2783 1.2783 1.2783 1.2783 Jail Bond 0.1335 0.1395 0.1358 0.1324 Fairgrounds Bond 0.1410 0.1441 0.1464 0.1369 Sheriff (Countywide) 0.9500 0.9500 0.9200 0.9200 County Extension/41-1 CSD 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.1618 0.1618 911 Local Option 0.2300 0.2300 0.2300 0.2300 County districts paid by all properties 2.9170 2.9261 2.8947 2.8818 Rates levied to taxable rural County properties: Sheriff (County) - - - - Sheriff (Rural) 1.4000 1.4000 1.4000 1.4000 Rates levied to incorporated and CSD tax codes: Sheriff (hicorporated) - - - - Certain County properties are subject to one of the following rates: Bend Library Bond 0.0852 0.0868 0.0880 0.0836 Redmond Library Bond 0.0567 0.0572 0.0558 0.0498 Sunriver Library Bond 0.0590 0.0598 0.0551 0.0550 Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt 0.4000 0.4000 0.5500 0.5500 Paid by Sunriver properties only: Sunriver Service District 3.1300 3.2200 3.3100 3.3100 Range of County Direct Rates Paid 2.9170 - 6.1060 2.7805 - 6.2059 2.8947-6.2598 2.8818-6.2468 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 Redmond 6.1643 6.1643 6.1643 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 La Pine 1.9800 1.9800 1.8000 1.8000 Bend Gap Bond - - - Bend Urban Renewal Special Levy 0.2700 0.2666 0.2791 - City of Redmond Bond 0.1020 0.1168 0.0947 0.0831 Sunriver Service District 3.1300 3.2200 3.3100 3.3100 Redmond Downtown Urban Renewal Lei - - - - Redmond Airport Urban Renewal Levy - - - - Library district rates 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924 - 3.0742 1.0924 - 3.0705 1.0924-3.0744 1.0924-3.0744 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 School district rates 6.8851 - 7.2424 6.5907 - 8.4371 6.4923-8.1206 6.6649-8.4065 Road district rates 0.7831 - 3.6500 0.6600 - 3.6500 0.3248-3.6500 0.5180-2.7331 Other special district rates 0.3848 0.3809 0.3793 0.3776 Sources: Deschutes County Assessor's Office and Deschutes County Finance Department (continued) 274 Deschutes County Direct Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) County direct rates Rates levied to all taxable County properties: General Jail Bond Fairgrounds Bond Sheriff (Countywide) County Extension/41-1 CSD 911 CSD 911 Local Option County districts paid by all properties Rates levied to taxable rural County properties: Sheriff (County) Sheriff (Rural) Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) Certain County properties are subject to one of the following rates: Bend Library Bond Redmond Library Bond Sunriver Library Bond Paid by Black Butte properties only: Black Butte Ranch CSD Black Butte Ranch CSD Local Opt Paid by Sunriver properties only: Sunriver Service District Range of County Direct Rates Paid City and town rates Bend Redmond Sisters La Pine Bend Gap Bond Bend Urban Renewal Special Levy City of Redmond Bond Sunriver Service District Redmond Downtown Urban Renewal Levy Redmond Airport Urban Renewal Levy Library district rates Fire district rates Parks and recreation district rates School district rates Road district rates Other special district rates Sources: Deschutes County Assessor's Office and Deschutes County Finance Department Fiscal Year Taxes are Payable 2013 2014 1.2783 1.2783 0.1291 0.0673 0.1405 0.1121 0.9500 0.9500 0.0224 0.0224 0.1618 0.1618 0.2300 0.2240 2.9121 2.8159 1.4000 1.4000 0.0791 0.0723 0.0489 0.0475 1.0499 1.0499 0.5500 0.5500 3.3100 3.3100 2.9121-6.2710 2.8159-6.1734 2.8035 2.8035 4.4101 4.4101 2.6417 2.6417 1.9000 1.9300 0.0870 0.0886 3.3100 3.3100 0.5500 0.5500 1.0924-3.0522 1.0924-3.0691 0.2200 - 1.4610 0.2200 - 1.6673 6.6692-8.4108 6.5526-8.4699 0.4377-3.6500 0.9005-3.6500 0.2895 0.2895 275 Taxpayer Pacificorp (PP&L) Gas Transmission Northwest Corporation Cascade Natural Gas Corporation Bend Cable Communications LLC Touchmark at Mount Bachelor Village LLC CVSC LLC Suterra LLC Centurylink (Formerly Qwest Corporation) Deschutes Brewery Inc Wal-Mart Stores Inc High Desert Development Company LLC Eagle Crest Inc Mt. Bachelor Inc Sunriver Resort Limited Partnership Bend Millwork Systems Inc Total Deschutes County Principal Property Taxpayers — Current Fiscal and Nine Years Ago June 30, 2014 2014 2005 Taxable Assessed Value Rank $ 84,889,000 1 70,935,300 2 49,790,800 3 49,126,000 4 37,623,690 5 35,345,300 6 33,784,850 7 33,294,300 8 33,262,940 9 25,766,970 10 $ 453,819,150 Source: Deschutes County Assessor's Department Percentage of Total County Taxable Taxable Assessed Assessed Value Value Rank 0.46% $ 42,421,000 3 0.38% 76,547,101 2 0.27% 32,122,580 8 0.26% - - 0.20% - - 0.19% - - 0.18% - - 0.18% 100,061,100 1 0.18% 21,700,976 10 0.14% - - - 39,334,527 4 - 38,353,238 5 - 34,127,074 6 - 32,984,210 7 - 22,037,480 9 2.44% $ 439,689,286 Percentage of Total County Taxable Assessed Value 0.35% 0.63% 0.26% 0.82% 0.18% 0.32% 0.31% 0.28% 0.27% 0.18% 3.60% 276 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Tax Levy for Fiscal Year (1) $ 40,721 42,784 46,212 53,123 60,474 63,162 63,166 62,532 63,483 64,379 Deschutes County Property Taxes Levies and Collections - Last Ten Fiscal Years (amounts expressed in thousands) Collected within the Fiscal Year of the Levy Collections Amount Percentage in Subsequent Collected of Levy Years $ 39,718 97.537% $ 1,001 41,871 97.867% 911 44,875 97.108% 1,334 50,752 95.537% 2,367 56,843 93.996% 3,612 60,015 95.018% 3,113 60,557 95.870% 2,498 60,527 96.794% 1,676 61,932 97.557% 973 63,094 98.005% - Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Total Collections to Date Amount Collected $ 40,719 42,782 46,210 53,119 60,455 63,128 63,054 62,203 62,905 63,094 Percentage of Levy 99.996% 99.996% 99.995% 99.992% 99.970% 99.946% 99.824% 99.474% 99.090% 98.005% 277 Deschutes County Ratios of Outstanding Debt by Type — Last Ten Fiscal Years (dollars in thousands, except per capita) (1) See page 286 for personal income and population data. n/a - Not available. 278 Governmental Activities General Limited Special Certificates Full Faith Fiscal Obligation Tax Assessment of and Credit Capital Year Bonds Bonds Bonds Participation Obligations Leases Loans 2005 $ 23,683 $ 12,460 $ 286 $ 7,360 $ 31,821 $ 43 $ 400 2006 21,553 12,424 136 955 36,177 22 350 2007 19,299 12,380 77 670 35,838 188 300 2008 16,908 12,329 30 370 34,225 - 250 2009 14,392 12,246 - - 46,043 - 200 2010 11,717 12,137 - - 45,491 - 150 2011 8,873 11,386 - - 43,352 - 140 2012 5,853 11,223 - - 42,299 - 81 2013 2,700 11,026 - - 39,835 - 23 2014 175 10,799 - - 45,773 - 149 (1) See page 286 for personal income and population data. n/a - Not available. 278 Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Deschutes County Ratios of Outstanding Debt by Type — Last Ten Fiscal Years (dollars in thousands, except per capita) Business-Tvne Activities General Full Faith Obligation and Credit Per Bonds Obligations Loans $ 22,930 $ 8,893 $ 513 21,791 8,695 501 20,408 18,141 488 19,144 17,629 470 17,630 17,039 453 15,992 16,432 435 14,203 15,804 417 12,260 15,423 399 9,941 14,695 380 7,669 13,960 362 Total Percentage Primary of Personal Per Government Income (1) Capita (1) $ 108,389 2.39% $ 799.39 102,604 2.05% 715.93 107,789 2.00% 718.05 101,355 1.80% 654.24 108,003 1.89% 686.99 102,354 1.78% 648.20 94,175 1.58% 592.76 87,538 1.40% 546.63 78,600 n/a 483.62 78,887 n/a n/a 279 Deschutes County Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years (dollars in thousands, except per capita) 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 on pages 270-271. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 286. Less: Amounts Percentage of General Available in Estimated Fiscal Obligation Debt Service Actual Taxable Year Bonds (1) Fund (2) Total Value of Per Capita (4) 2005 $ 46,613 $ 811 $ 45,802 0.26% $ 361.49 2006 43,344 961 42,383 0.21% 319.67 2007 39,707 825 38,882 0.14% 277.06 2008 36,052 655 35,397 0.10% 240.17 2009 32,022 799 31,223 0.08% 206.70 2010 27,709 1,220 26,489 0.08% 176.25 2011 23,076 1,483 21,593 0.10% 146.14 2012 18,113 1,243 16,870 0.08% 114.01 2013 12,641 1,042 11,599 0.06% 78.94 2014 7,844 186 7,658 0.04% 48.26 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 on pages 270-271. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 286. Governmental Unit Debt repaid with property taxes Deschutes County Direct and Overlapping Governmental Activities Debt (dollars in thousands) June 30, 2014 Estimated Debt Percentage Outstanding Applicable Amount Applicabli to Primary Government Bend Juniper Ridge Urban Renewal Agency $ 3,529 100.0000% $ 3,529 Bend Metro Park & Rec District 28,230 100.0000% 28,230 Central Oregon Community College 59,550 83.1652% 49,525 City of Bend 52,003 100.0000% 52,003 City of La Pine 475 100.0000% 475 City of Redmond 1,902 100.0000% 1,902 Cloverdale RFPD 165 100.0000% 165 Crook County School District 52,779 1.3045% 689 Crooked River Ranch RFPD VI -503 2,585 9.1494% 237 Crooked River Ranch Special Road District 335 9.2800% 31 Deschutes County RFPD 2 (Bend) 1,440 100.0000% 1,440 Deschutes County School District 1 (Bend -La Pine) 276,457 100.0000% 276,457 Deschutes County School District 2 (Redmond) 161,806 93.7607% 151,710 Deschutes County School District 6 (Sisters) 19,308 99.9549% 19,299 La Pine Parks & Recreation District 470 100.0000% 470 La Pine Special Sewer District 126 100.0000% 126 Lazy River Special Road District 15 100.0000% 15 Redmond Area Park & Recreation District 760 100.0000% 760 Redmond Fire & Rescue 765 99.9363% 765 Sisters RFPD (Camp Sherman) 2,095 85.5765% 1,793 Terrebonne Water District 580 100.0000% 580 Subtotal, overlapping debt 590,200 Deschutes County direct debt 56,896 Total direct and overlapping debt $ 647,096 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. 281 Deschutes County Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Legal Debt Margin Calculation for Fiscal Year 2014 Estimated Actual Value $ 22,168,879 Estimated Actual Value $ 22,168,879 Debt limit (2% of estimated Debt limit (1% of estimated actual value) ' 443,378 actual value) 2 221,689 Debt applicable to limit: Debt applicable to limit: General obligation bonds 7,844 Limited tax bonds 56,572 Total net debt applicable to limit 7,844 Less: Amount set aside for repayment of debt 451 Total net debt applicable to limit 56,121 Legal debt margin $ 435,534 Legal debt margin $ 165,568 Fiscal Year 2005 2006 2007 2008 2009 Debt Limit (2%) ' $ 352,669 $ 418,854 $ 568,030 $ 738,802 $ 753,830 Total net debt applicable to limit 45,949 42,336 38,929 35,264 31,345 Legal debt margin $ 306,720 $ 376,518 $ 529,101 $ 703,538 $ 722,485 Total net debt applicable to the limit as a percentage of debt limit 13.03% 10.11% 6.85% 4.77% 4.16% Debt Limit (1%) 2 $ 176,335 $ 209,427 $ 284,015 $ 369,401 $ 376,915 Total net debt applicable to limit 53,033 48,147 47,750 46,139 57,509 Legal debt margin $ 123,302 $ 161,280 $ 236,265 $ 323,262 $ 319,406 Total net debt applicable to the limit as a percentage of debt limit 30.08% 22.99% 16.81% 12.49% ' 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 I% of the real market value of all taxable property within the County's boundaries. This became effective January 1, 2008 superseding ORS 287.053. 15.26% 282 Deschutes County Legal Debt Margin Information — Last Ten Fiscal Years (dollars in thousands) Fiscal Year 2010 2011 2012 2013 2014 $ 663,510 $ 470,544 $ 431,674 $ 420,044 $ 443,378 27,141 22,618 17,765 12,260 7,844 $ 636,369 $ 447,926 $ 413,909 $ 407,784 $ 435,534 4.09% 4.81% 4.12% 2.92% 1.77% $ 331,755 $ 235,272 $ 215,837 $ 210,022 $ 221,689 56,953 53,806 52,137 49,647 56,121 $ 274,802 $ 181,466 $ 163,700 $ 160,375 $ 165,568 17.17% 22.87% 24.16% 23.64% 25.32% 283 Deschutes County Pledged -Revenue Coverage — Last Ten Fiscal Years (dollars in thousands) Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. 284 Special Assessment Bonds - (Series 2000) Special Fiscal Assessment Debt Service Year Collections Principal Interest Coverage 2005 $ 75 $ 61 $ 19 0.94 2006 158 149 15 0.96 2007 43 60 7 0.64 2008 49 47 4 0.96 2009 26 30 1 0.84 2010 - - - - 2011 - - - - 2012 - - - - 2013 - - - - 2014 - - - - Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. 284 Deschutes County Pledged -Revenue Coverage — Last Ten Fiscal Years (dollars in thousands) Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. 285 Full Faith and Credit Obligations (Series 2003, 2005, 2007, 2009) Special Fiscal Assessment Debt Service Year Collections Principal Interest Coverage 2005 $ 381 $ 303 $ 30 1.14 2006 301 349 33 0.79 2007 206 176 18 1.06 2008 390 344 70 0.94 2009 381 223 46 1.42 2010 259 299 71 0.70 2011 258 263 48 0.83 2012 207 175 36 0.98 2013 221 183 27 1.05 2014 151 177 19 0.77 Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. 285 Deschutes County Demographic and Economic Statistics — Last Ten Calendar Years June 30, 2014 Sources: Population, personal income and per capita personal income information provided by Portland State University, Population Research Center and the Bureau of Economic Analysis. Median age based on data obtained from Portland State University. School enrollment provided by the Oregon Department of Education. Unemployment provided by Oregon Employment Department, Oregon Labor Market Information System. Note: Population information are Census Bureau midyear population estimates. Estimates for July 1, 2013, reflect county population estimates available as of April 2014. Median age figures for 2005-2014 based on mid -year data tables. School enrollment is based on the census at the start of the 2013-14 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2014 is an average of January through June 2014. n/a - Not available. 286 Personal Per Income Capita Public (thousands Personal Median School Unemployment Year Population of dollars) Income Age Enrollment Rate 2005 128,948 $ 4,534,433 $ 32,094 38.08 22,044 5.8% 2006 135,590 4,996,527 33,522 39.45 22,668 4.6% 2007 143,316 5,391,673 35,057 39.79 23,652 4.9% 2008 150,113 5,635,347 35,728 40.15 24,421 7.1% 2009 154,920 5,705,290 35,966 39.95 24,578 15.3% 2010 157,211 5,756,539 36,449 40.21 24,106 14.8% 2011 157,905 5,946,037 37,084 40.46 24,437 13.5% 2012 158,875 6,239,199 38,448 40.29 24,168 11.8% 2013 160,140 n/a n/a 40.43 24,518 10.8% 2014 162,525 n/a n/a 40.63 24,790 8.8% Sources: Population, personal income and per capita personal income information provided by Portland State University, Population Research Center and the Bureau of Economic Analysis. Median age based on data obtained from Portland State University. School enrollment provided by the Oregon Department of Education. Unemployment provided by Oregon Employment Department, Oregon Labor Market Information System. Note: Population information are Census Bureau midyear population estimates. Estimates for July 1, 2013, reflect county population estimates available as of April 2014. Median age figures for 2005-2014 based on mid -year data tables. School enrollment is based on the census at the start of the 2013-14 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2014 is an average of January through June 2014. n/a - Not available. 286 Deschutes County Principal Employers — Current Year and Nine Years Ago 2014 2005 Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment St. Charles Medical Center 2,419 1 3.57% 2,337 1 3.20% Bend/La Pine School District 1,690 2 2.49% 1,130 2 1.55% Deschutes County 1,051 3 1.55% 721 5 0.99% Sunriver Resort 900 4 1.33% 870 3 1.19% Mt. Bachelor 756 5 1.12% 750 4 1.03% Redmond School District 754 6 1.11% 623 9 0.85% IBEX (formerly TRG Solutions & !SKY; 700 7 1.03% 625 8 0.86% Walmart 686 8 1.01% - - - Central Oregon Community College 661 9 0.98% - - - Bend Memorial Clinic 639 10 0.94% - - - T -Mobile - - - 674 6 0.92% Beaver Motor Coaches - - - 654 7 0.90% JELD-WEN/Pozzi Windows & Doors - - - 521 10 0.71% Total Employees of Principal Employers 10,256 15.14% 8,905 12.20% Total County Nonfarm Employment 67,760 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department 287 Deschutes County Full -Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years Source: Deschutes County Finance Department Above amounts are for Primary Government NM 2005 2006 2007 2008 2009 Function/Program General government Executive 8.00 9.90 8.83 9.65 9.65 General services Judicial 47.00 46.25 48.75 49.75 51.00 Financial 39.18 40.73 39.78 39.58 38.58 Assessment 33.25 32.75 33.75 33.25 32.15 Community development 29.15 31.68 33.20 30.90 24.50 Building services 20.50 22.50 22.65 22.85 23.85 Information technology 14.84 15.68 15.50 15.44 15.58 Other 12.33 6.29 7.47 8.23 6.84 Public protection Law enforcement 101.68 100.75 104.75 112.75 114.50 Corrections 153.30 151.80 155.65 192.45 190.10 Protective inspection 29.35 34.32 35.80 30.10 23.60 Public works Streets & highways 57.00 66.50 63.50 61.50 59.50 Sanitation 23.00 24.00 24.00 26.00 23.00 Health & welfare Health 49.45 49.50 50.35 54.85 53.15 Welfare 89.85 89.50 94.03 102.70 101.75 Recreation & culture Fair & expo center 13.00 14.00 13.00 13.00 12.00 Other Economic development 0.55 1.15 1.08 1.10 1.10 Total 721.43 737.30 752.09 804.10 780.85 Source: Deschutes County Finance Department Above amounts are for Primary Government NM Deschutes County Full -Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years Source: Deschutes County Finance Department Above amounts are for Primary Government 2010 2011 2012 2013 2014 Function/Program General government Executive 9.65 9.65 8.80 8.75 8.75 General services Judicial 49.85 46.45 47.35 50.10 48.10 Financial 38.58 38.43 36.68 33.83 34.71 Assessment 29.90 30.00 30.50 30.75 31.00 Community development 21.05 17.50 17.50 15.60 17.30 Building services 22.95 21.95 21.95 23.45 22.30 Information technology 16.90 14.90 16.00 15.70 15.50 Other 6.42 6.42 6.32 5.62 4.47 Public protection Law enforcement 115.50 111.75 108.15 109.46 105.75 Corrections 184.30 182.68 178.40 176.54 181.50 Protective inspection 19.55 11.00 11.10 10.00 12.70 Public works Streets & highways 58.50 57.50 56.50 48.75 52.75 Sanitation 22.00 21.75 19.75 21.00 21.50 Health & welfare Health 55.00 70.10 71.55 67.90 68.77 Welfare 104.55 118.80 128.55 135.80 154.00 Recreation & culture Fair & expo center 12.00 11.00 10.00 10.00 10.00 Other Economic development 1.10 1.10 1.10 1.00 1.00 Total 767.80 770.98 770.20 764.25 790.10 Source: Deschutes County Finance Department Above amounts are for Primary Government Deschutes County Operating Indicators by Function/Program - Last Ten Fiscal Years Function/Prouam General Government Building permits issued for new homes Total building permits issued Police Physical arrests Traffic violations Citations issued Warnings Calls for service Traffic stops Solid waste Solid waste collected (tons) Average annual per capita waste generation (pounds) Recyclables collected (tons) Road Street resurfacing (miles) 911 emergency services Emergency calls Police officer initiated calls Fire department initiated calls Fiscal Year 2005 2006 2007 2008 2009 781 847 701 331 176 1,885 1,958 1,753 1,222 797 1,714 1,715 1,586 1,508 1,542 7,122 5,936 5,486 6,165 4,811 6,371 6,275 5,623 7,481 6,842 37,170 37,077 37,677 36,731 35,243 13,380 12,467 11,023 15,606 14,744 207,225 243,986 247,652 257,863 253,418 2,904 3,056 3,111 3,379 3,152 54,225 55,400 62,523 69,717 75,825 22.41 14.06 10.13 10.62 23.53 63,994 68,403 70,104 66,004 59,793 232,700 235,629 244,633 261,420 251,675 16,603 18,478 19,461 19,828 20,820 Source: Deschutes County Community Development Department, Deschutes County Sheriffs Office, Deschutes County Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District 290 Deschutes County Operating Indicators by Function/Program - Last Ten Fiscal Years Function/Prouam General Government Building permits issued for new homes Total building permits issued Police Physical arrests Traffic violations Citations issued Warnings Calls for service Traffic stops Solid waste Solid waste collected (tons) Average annual per capita waste generation (pounds) Recyclables collected (tons) Road Street resurfacing (miles) 911 emergency services Emergency calls Police officer initiated calls Fire department initiated calls Fiscal Year 2010 2011 2012 2013 2014 109 104 127 218 327 636 613 643 811 988 1,592 1,375 1,334 1,421 1,451 3,566 2,504 2,517 2,261 2,462 5,091 4,727 4,317 1,906 1,570 33,315 32,661 33,409 33,331 34,187 12,856 10,202 10,507 14,125 14,840 207,515 192,657 177,113 185,692 185,788 2,485 2,257 2,243 2,338 1,419 65,116 75,365 62,083 72,941 72,178 29.11 6.26 16.10 2.50 8.20 57,978 54,395 59,697 58,673 59,886 242,851 241,785 249,032 246,458 249,217 19,980 19,597 21,048 21,541 22,398 Source: Deschutes County Community Development Department, Deschutes County Sheriffs Office, Deschutes County Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District 291 Deschutes County Capital Asset Statistics by Function / Program — Last Ten Fiscal Years Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office 292 2005 2006 2007 2008 2009 Function/Program Police Stations 4 4 4 4 4 Adult correctional facilities 1 1 1 2 2 Special services complex 1 1 1 1 1 Road Streets (miles) 904 904 911 927 927 Streetlights 4 4 4 4 4 Flashing lights 6 6 6 6 5 Signals 2 2 2 2 3 Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office 292 Deschutes County Capital Asset Statistics by Function / Program — Last Ten Fiscal Years Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office 293 2010 2011 2012 2013 2014 Function/Program Police Stations 4 4 4 4 4 Adult correctional facilities 2 2 2 2 2 Special services complex 1 1 1 1 1 Road Streets (miles) 927 927 927 927 927 Streetlights 4 4 4 4 4 Flashing lights 5 5 5 5 5 Signals 3 3 3 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office 293 Deschutes County Audit Comments and Disclosures Required by State Regulations June 30, 2014 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. 294 EideBailly CPAs & BUSINESS ADVISORS Independent Auditor's Report Required by Oregon State Regulations To Deschutes County Commissioners Deschutes County, Oregon Bend, Oregon We have audited the basic financial statements of Deschutes County, Oregon (the County) as of and for the year ended June 30, 2014, and have issued our report thereon dated November 04, 2014. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minimum Standards of Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. Compliance As part of obtaining reasonable assurance about whether the District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010- 0000 through 162-010-0330, as set forth below, noncompliance with which could have a direct and material effect on the determination of financial statements amounts: www.eidebailly.com 877 W. Main St., Ste. 800 Boise, ID 83702-5858 T 208.344.7150 F 208.344.7435 1 EOE 295 Instances of Non - OAR Section Compliance Identified 162-010-0000 Preface Not Applicable 162-010-0010 Definitions Not Applicable 162-010-0020 General Requirements None noted 162-010-0030 Contracts None noted 162-010-0050 Financial Statements None noted 162-010-0115 Required Supplementary Information (RSI) None noted 162-010-0120 Supplementary Financial Information None noted 162-010-0130 Schedule of Revenues, Expenditures / Expenses, and Changes in Fund None noted Balances / Net Position, Budget and Actual (Each Fund) 162-010-0140 Schedule of Accountability for Independently Elected Officials Not Applicable 162-010-0150 Schedule of Property Tax Transactions or Acreage Assessments None noted 162-010-0190 Other Financial or Statistical Information None noted 162-010-0200 Independent Auditor's Review of Fiscal Affairs None noted 162-010-0230 Accounting Records and Internal Control None noted 162-010-0240 Public Fund Deposits None noted 162-010-0250 Indebtedness None noted 162-010-0260 Budget None noted 162-010-0270 Insurance and Fidelity Bonds None noted 162-010-0280 Programs Funded from Outside Sources None noted 162-010-0295 Highway Funds None noted 162-010-0300 Investments None noted 162-010-0310 Public Contracts and Purchasing None noted 162-010-0315 State School Fund Not Applicable 162-010-0316 Public Charter Schools Not Applicable 162-010-0320 Other Comments and Disclosures Not Applicable 162-010-0330 Extensions of Time to Deliver Audit Reports Not Applicable www.eidebailly.com 877 W. Main St., Ste. 800 Boise, ID 83702-5858 T 208.344.7150 F 208.344.7435 1 EOE 295 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 test disclosed no instances of noncompliance that are required to be reported under Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Internal Control Over Financial Reporting In planning and performing our audit, we considered the District's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the District's internal control over financial reporting. 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting 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 may exist that have not yet 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. This report is an integral part of an audit performed in accordance with Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State, in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. r— 011 19 1 � � -11 Z �W. For Eide Bailly LLP Boise Idaho November 04, 2014 296 Single Audit Compliance June 30, 2014 Deschutes County EideBailly CPAs & BUSINESS ADVISORS Independent Auditor's Report 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 To the 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, 2014, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated November 04, 2014. 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) to determine the 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting 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 may exist that have not yet been identified. www.eidebailly.com 877 W. Main St., Ste. 800 Boise, ID 83702-5858 T 208.344.7150 F 208.344.7435 1 EOE 297 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 determination of financial statement amounts. 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. Boise, Idaho November 04, 2014 EideBailly CPAs & BUSINESS ADVISORS Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by OMB Circular A-133 To the Deschutes County Commissioners Deschutes County, Oregon Bend, Oregon Report on Compliance for Each Major Federal Program We have audited Deschutes County, Oregon's (the County) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the County's major federal programs for the year ended June 30, 2014. The County's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on the compliance for each of the County's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the County's compliance. Opinion on Each Major Federal Program In our opinion, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2014. www.eidebailly.com 877 W. Main St., Ste. 800 Boise, ID 83702-5858 T 208.344.7150 F 208.344.7435 1 EOE 299 Report on Internal Control over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance 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. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Boise, Idaho November 04, 2014 300 Deschutes County Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 Accrued or Accrued or Federal Award or Pass- Program or (Deferred) (Deferred) Federal Grantor / Pass Through CFDA Through Award Revenues Revenues July Grantor / Program Title Number Number Amount July 1, 2013 Receipts Expenditures 1, 2014 U.S. Department of Agriculture Direct Programs Forest Service Cooperative Forestry 10.664 11 -DG -11062752 $ 200,000 $ $ 49,591 $ 49,591 $ Assistance -Sweat Equity 011 - Cooperative Forestry 13 -DG -11062752 Assistance -Bend Fuels 10.664 219,125 23,153 98,019 74,866 709 2013 Schools and Roads -Public 11 -DG -11060120 Education and Outreach 10.665 74,100 8,642 18,150 9,508 005 for Noxious Weed Control Collaborative Forest Restoration -Deschutes 11 -DG -11060120• 10.679 66,880 2,328 12,967 20,077 9,438 County Noxious Weed Cost 009 Share Program Pass ThrouEh Programs State Department of Education School Breakfast Program 10.553 0904001 7,193 648 7,841 7,755 562 National Lunch School 10.555 0904001 14,885 1,262 14,564 14,324 1,022 Program Oregon Health Authority Special Supplemental Nutrition Program for 10.557 280559/280664 700,552 53,831 693,028 698,787 59,590 Women, Infants and Children State Department of Administrative Services Schools and Roads: Grants to States Title I 10.665 None 1,679,156 - 1,679,156 1,679,156 Title III 10.665 None 138,283 (202,687) 138,283 87,929 (253,041) Total Department of Agriculture 2,673,788 U.S. Department of the Interior Pass Through Programs State Department of Administrative Services Non -Sale Disposals of 15.214 None 165,883 - 165,883 165,883 - Mineral Material Distribution of Receipts to State and Local 15.227 None 3,228 (22,511) 3,228 - (25,739) Governments State Historic Preservation Office Historic Preservation Fund 15.904 OR -13-05 13,000 - 13,000 13,000 - Grants Total Department of the Interior 178,883 (continued) 301 Deschutes County Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 (continued) 302 Accrued or Accrued or Federal Award or Pass- Program or (Deferred) (Deferred) Federal Grantor / Pass Through CFDA Through Award Revenues Revenues July Grantor / Program Title Number Number Amount July 1, 2013 Receipts Expenditures 1, 2014 U.S. Department of Justice Direct Programs Violence Against Women Office Supervised Visitation: Safe 2010 -CW -AX- 16.527 349,891 27,775 57,179 29,404 - Havens for Children K020 Supervised Visitation: Safe 2013 -FLAX- 16.527 349,971 - 62,713 86,652 23,939 Havens for Children K019 Grants to Encourage Arrest 2010 - Policies and Enforcement of 16.590 599,904 31,984 140,516 142,407 33,875 0038 0038 Protection Orders Program Bureau of Justice Assistance State Criminal Alien 2013 -AP -BX- 16.606 12,649 - 12,649 12,649 - Assistance Program 0506 Bulletproof Vest Partnership 16.607 None 81,897 6,314 6,314 - Program Pass Through Programs Department of Education Juvenile Accountability 16.523 2012-6309 4,625 7,090 9,434 2,344 - Block Grant State Department of Justice 2012 DAVAP- Crime Victim Assistance 16.575 96,086 12,011 48,043 48,043 12,011 00056 Drug Control Discretionary LOA No. 2012- 16.580 37,000 - 1,940 1,940 - Grantl 104 State Criminal Justice Commission Edward Byrne Memorial 2013 -DJ -BX - Justice Assistance Grant 16.738 22,912 22,912 22,912 0328 Program Edward Byrne Memorial Justice Assistance Grant 16.738 DC009-13 285,966 36,617 36,617 Program Edward Byrne Memorial Justice Assistance Grant 16.738 None 116 116 116 Program Total Department of Justice 383,084 (continued) 302 Deschutes County Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 Pass Through Programs National Association of County and City Health Officials Medical Reserve Corps 93.008 MRC 13-1937 4,000 (3,370) 3,370 Small Grant Pgm Medical Reserve Corps 93.008 MRC 12-1937 5,000 (5,000) 5,000 Small Grant Pgm (continued) 303 Accrued or Accrued or Federal Award or Pass- Program or (Deferred) (Deferred) Federal Grantor / Pass Through CFDA Through Award Revenues Revenues July Grantor / Program Title Number Number Amount July 1, 2013 Receipts Expenditures 1, 2014 U.S. General Services Administration Pass Through Programs State Department of Administrative Services Disposal of Federal Surplus 39.002 None 141 141 141 Real Property Total General Services Administration 141 U.S. Environmental Protection Agency Direct Programs Office of Solid Waste and Emergency Response Brownfields Assessment and Cleanup Cooperative 66.818 OOJ80001 400,000 - 34,271 41,430 7,159 Agreements -RECOVERY Pass Through Programs Oregon Health Authority State Public Water System 66.432 280557 27,965 25,353 27,965 2,612 Supervision Capitalization Grants for Drinking Water State 66.468 280655 25,128 22,518 25,128 2,610 Revolving Fund - RECOVERY Total Environmental Protection Agency 94,523 U.S. Department of Health and Human Services Direct Programs Health Resources and Services Administration Affordable Care Act Grants for School -Based Health 93.501 C12CS21835 500,000 373,069 373,069 Center Capital Expenditures Pass Through Programs National Association of County and City Health Officials Medical Reserve Corps 93.008 MRC 13-1937 4,000 (3,370) 3,370 Small Grant Pgm Medical Reserve Corps 93.008 MRC 12-1937 5,000 (5,000) 5,000 Small Grant Pgm (continued) 303 Deschutes County Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 (continued) 304 Accrued or Accrued or Federal Award or Pass- Program or (Deferred) (Deferred) Federal Grantor / Pass Through CFDA Through Award Revenues Revenues July Grantor / Program Title Number Number Amount July 1, 2013 Receipts Expenditures 1, 2014 U.S. Department of Health and Human Services, continued Pass Through Programs, continued Oregon Health Authority/Department of Human Services Public Health Emergency 93.069 280619 136,421 11,551 127,488 127,045 11,108 Preparedness Environmental Public Health and Emergency 93.070 280673 6,770 - 6,770 6,770 - Response ACA Personal Responsibility Education 93.092 280529 98,493 12,459 83,364 79,947 9,042 Program Project Grants and Cooperative Agreements for 93.116 280549 608 96 646 608 58 Tuberculosis Control Programs Projects for Assistance in Transition from 93.150 207001 94,000 - 94,000 94,000 - Homelessness (PATH) Family Planning: Services 93.217 280558 116,538 13,337 120,420 116,538 9,455 Linking Actions for Unmet 93.243 280501 651,054 79,821 574,155 598,064 103,730 Needs in Children's Health Youth Suicide 93.243 250050 180,000 - 180,000 180,000 - Prevention/Intervention Immunization Cooperative 93.268 280540 600 311 911 600 - Agreements Centers for Disease Control & Prevention Investigations 93.283 Various 54,170 6,780 36,257 36,257 6,780 and Technical Assistance PPHF 2012 Prevention & Public Health Immunization 93.539 280643 - 8,506 8,506 - - ACA The Patient Protection and Affordable Care Act of 2010 authorizes Coordinated Chronic 93.544 280561 10,006 10,006 10,006 Disease Prevention and Health Promotion Program Empowering Older Adults and Adults with Disabilities through Chronic Disease 93.734 280676 27,080 20,310 20,310 Self-Mgmt Education Programs National Bioterrorism Hospital Preparedness 93.889 280609 2,725 - 2,725 2,725 - Program HIV Prevention Activities- 93.940 280501 29,874 1,975 25,251 25,396 2,120 Health Department Based (continued) 304 Deschutes County Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 ' Grant amount includes funds utilized by a fiduciary organization in the amount of $262,621 305 Accrued or Accrued or Federal Award or Pass- Program or (Deferred) (Deferred) Federal Grantor / Pass Through CFDA Through Award Revenues Revenues July Grantor / Program Title Number Number Amount July 1, 2013 Receipts Expenditures 1, 2014 U.S. Department of Health and Human Services, continued Pass Through Programs, continued Oregon Health Authority/Department of Human Services, continued Assistance Programs for Chronic Disease Prevention 93.945 280528/280624 7,907 7,907 7,907 and Control MOCK yams ror Community Mental Health 93.958 112001 106,200 106,200 106,200 - e -.,.e.. Block Grants for Prevention and Treatment of Substance 93.959 135001 428,737 335,317 335,317 - Abuse Maternal and Child Health Services Block Grant to 93.994 180514 137,038 12,326 147,604 146,718 11,440 States State Commission on Children and Families Promoting Safe and Stable 93.556 1936002292-001 79,067 5,494 5,494 - - Families Social Services Block Grant 93.667 1936002292-001 393,795 20,112 20,112 - Medical Assistance Program 93.778 1936002292-001 72,377 8,906 8,906 - - Oregon Department of Education Promoting Safe and Stable 93.556 936002292 38,291 - 27,817 38,291 10,474 Families Social Services Block Grant 93.667 936002292 125,048 93,786 124,493 30,707 Total Department of Health and Human Services 2,438,631 U.S. Department of Homeland Security Pass Through Programs Oregon State Marine Board Boating Safety Financial 97.012 2013 150,177 6,394 6,394 - Assistance Boating Safety Financial 97.012 2014 155,292 - 2,915 2,915 Assistance Department of State Police Emergency Management 97.042 12-510 95,620 20,462 43,408 22,946 Performance Grant Emergency Management 97.042 13-509 85,370 - 40,386 61,680 21,294 Performance Grant Total Department of Homeland Security 87,541 Office of National Drug Control Policy Pass Through Programs State Department of Justice High Intensity Drug Traffic 95.001 None 10,851 300,164 297,564 8,251 Area (HIDTA) I Total Office of National Drug Control Policy 297,564 Total Federal Assistance $ 129,056 $ 5,727,271 $ 6,154,155 $ 555,940 ' Grant amount includes funds utilized by a fiduciary organization in the amount of $262,621 305 Deschutes County Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 Note 1 - Purpose of this Schedule The accompanying Schedule of Expenditures of Federal Awards is a supplementary schedule to Deschutes County, Oregon's (the County) basic financial statements and is presented for purposes of additional analysis. Because the schedule presents only a selected portion of the activities of the County, it does not present the financial position, changes in financial position, or the cash flows of the County. Note 2 - Significant Accounting Policies A. Reporting Entity The reporting entity is fully described in Note I.A. to the County's basic financial statements. The schedule includes all federal programs administered by the primary government for the fiscal year ended June 30, 2014. B. Basis of Presentation The information in the schedule is presented in accordance with OMB Circular A-133. C. Federal Financial Assistance Pursuant to the Single Audit Act and OMB Circular A-133, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and is reported on the schedule (if applicable). Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the County and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. D. Major Programs The Single Audit Act and OMB Circular A-133 establish criteria to be used in defining major programs. Major programs are those programs selected for testing using a risk -assessment model, as well as certain minimum expenditure requirements, as outlined in OMB Circular A-133. Programs with similar requirements may be grouped into a cluster for testing purposes. E. Basis of Accounting Receipts and expenditures are accounted for using the modified accrual basis of accounting. Revenues are recorded when measurable and available, or in the case of grants where expenditure is the prime factor for determining eligibility, when the expenditure is made. Expenditures are recorded when a liability is incurred. Note 3 - Schedule of Federal Awards by Department and Program The Schedule of Expenditures of Federal Awards is organized by federal department and the organization the County contracted with; either the federal government (direct) or a non-federal entity (pass-through). As a result, total federal expenditures by Catalog of Federal Domestic Assistance (CFDA) number are not apparent. The following Listing of Federal Awards by Department and Program as of June 30, 2014 summarizes expenditures of federal awards by CFDA number regardless of who the County contracted with. 306 Deschutes County Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 Note 4 - Schedule of Federal Awards by Cluster The Schedule of Expenditures of Federal Awards contains various programs that are considered to be "clusters". As defined by OMB Circular A-133, a cluster of programs are those Federal programs with different CFDA numbers that are closely related and share common compliance requirements. The following Listing of Federal Awards by Cluster for the year ended June 30, 2014 is provided to disclose this information. 307 Deschutes County Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program Year Ended June 30, 2014 Department / Program Title U.S. Department of Agriculture School Breakfast Program National School Lunch Program Special Supplemental Nutrition Program for Women, Infants, and Children Cooperative Forestry Assistance Schools and Roads - Grants to States Collaborative Forest Restoration Total Department of Agriculture U.S. Department of the Interior Non -Sale Disposals of Mineral Material Historic Preservation Fund Grants -In -Aid Total Department of the Interior U.S. Department of Justice Juvenile Accountability Block Grants Supervised Visitation, Safe Havens for Children Crime Victim Assistance Edward Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program State Criminal Alien Assistance Program Edward Byrne Memorial Justice Assistance Grant Program Total Department of Justice U.S. General Services Administration Disposal of Federal Surplus Real Property Total General Services Administration U.S. Environmental Protection Agency State Public Water System Supervision Capitalization Grants for Drinking Water State Revolving Funds Brownfields Assessment and Cleanup Cooperative Agreements Total Environmental Protection Agency CFDA Number Expenditures 10.553 $ 7,755 10.555 14,324 10.557 698,787 10.664 147,610 10.665 1,785,235 10.679 20,077 2,673,788 15.214 165,883 15.904 13,000 178,883 16.523 2,344 16.527 116,056 16.575 48,043 16.580 1,940 16.590 142,407 16.606 12,649 16.738 59,645 383,084 39.002 141 141 66.432 27,965 66.468 25,128 66.818 41,430 94,523 Deschutes County Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program Year Ended June 30, 2014 Department / Program Title CFDA Number. Expenditures U.S. Department of Health and Human Services Medical Reserve Corps Small Grant Program 93.008 8,370 Public Health Emergency Preparedness 93.069 127,045 Environmental Public Health and Emergency Response 93.070 6,770 Affordable Care Act (ACA) Personal Responsibility Education Program 93.092 79,947 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 608 Projects for Assistance in Transition from Homelessness (PATH) 93.150 94,000 Family Planning Services 93.217 116,538 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 778,064 Immunization Cooperative Agreements 93.268 600 Centers for Disease Control and Prevention Investigations and Technical Assistance 93.283 36,257 Affordable Care Act (ACA) Grants for School -Based Health Center Capital Expenditures 93.501 373,069 The Patient Protection and Affordable Care Act of 2010 (Affordable Care Act) authorizes Coordinated Chronic Disease prevention and Health Promotion Program 93.544 10,006 Promoting Safe and Stable Families 93.556 38,291 Social Services Block Grant 93.667 124,493 Empowering Older Adults and Adults with Disabilities through Chronic Disease Self -Management Education Programs — financed by Prevention and Public Health Funds (PPHF) 93.734 20,310 National Bioterrorism Hospital Preparedness Program 93.889 2,725 HIV Prevention Activities Health Department Based 93.940 25,396 Assistance Programs for Chronic Disease Prevention and Control 93.945 7,907 Block Grants for Community Mental Health Services 93.958 106,200 Block Grants for Prevention and Treatment of Substance Abuse 93.959 335,317 Maternal and Child Health Services Block Grant to the States 93.994 146,718 Total Health and Human Services 2,438,631 Office of National Drug Control Policy High Intensity Drug Trafficking Areas Program 95.001 297,564 Total Office of National Drug Control Policy 297,564 U.S. Department of Homeland Security Boating Safety Financial Assistance 97.012 2,915 Emergency Management Performance Grants 97.042 84,626 87,541 Total Federal Assistance $ 6,154,155 309 Deschutes County Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Cluster Year Ended June 30, 2014 Federal Awards by Cluster Program Child Nutrition Cluster Program School Breakfast Program National School Lunch Program Total Child Nutrition Cluster Program Forest Service Schools and Roads Cluster Program Schools and Roads - Grants to States Total Forest Service Schools and Roads Cluster Program Edward Byrne Memorial Justice Assistant Grant (JAG) Cluster Program Edward Byrne Memorial Justice Assistance Grant Program Total Edward Byrne Memorial Justice Assistant Grant (JAG) Cluster Program Capitalization Grants for Drinking Water Cluster Program Capitalization Grants for Drinking Water State Revolving Funds Total Capitalization Grants for Drinking Water Cluster Program CFDA Number Expenditures 10.553 $ 7,755 10.555 14,324 22,079 10.665 1,785,235 1,785,235 16.738 59,645 59,645 66.468 25,128 25,128 310 Deschutes County Schedule of Findings and Questioned Costs Year Ended June 30, 2014 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting Material weaknesses identified? No Significant deficiency identified not considered to be material weaknesses? None reported Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs Material weaknesses identified? No Significant deficiency identified not considered to be material weaknesses? None reported Type of auditor's report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section 510(a)? No Identification of major programs: Name of Federal Program CFDA Number U. S. Department of Agriculture Direct Programs Schools and Roads -Public Education and Outreach for Noxious Weed Control 10.665 U. S. Department of Health and Human Services Direct Programs Affordable Care Act Grants for School -Based Health Care Center Capital Expenditures 93.501 Dollar threshold used to distinguish between Type A and Type B programs $300,000 Auditee qualified as low-risk auditee? Yes 311 There were no findings or questioned costs for the fiscal year ended June 30, 2013. Deschutes County Status of Prior Year Findings Year Ended June 30, 2014 312