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Home My WebLink AboutFY 2016 Comprehensive Annual Financial ReportComprehensive Annual Financial Report As of and for the Year Ended June 30, 2016 Deschutes County, Oregon DESCHUTES COUNTY, OREGON 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 COMPREHENSIVE ANNUAL FINANCIAL REPORT As of and for the Fiscal Year Ended June 30, 2016 Prepared by: Deschutes County Finance Department Wayne Lowry, CPA Finance Director Jeanine Faria Accounting Manager Deschutes County Table of Contents As of and For the Year Ended June 30, 2016 Introductory Section Letterof Transmittal.................................................................................................................................................. l OrganizationalChart .............................................................................................................................................. 5 List of Elected and Appointed Officials................................................................................................................. 7 GFOACertification of Achievement......................................................................................................................... 8 Financial Section IndependentAuditors' Report ........................................................................................................................................9 Management's Discussion and Analysis.................................................................................................................. 12 Basic Financial Statements Government -Wide Financial Statements Statementof Net Position................................................................................................................................ 24 Statementof Activities.................................................................................................................................... 26 Fund Financial Statements: Governmental Funds BalanceSheet.................................................................................................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ......................... 30 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........................................................................................ 34 Fund Financial Statements: Proprietary Funds Statementof Net Position................................................................................................................................ 36 Statement of Revenues, Expenses, and Changes in Net Position.................................................................... 38 Statementof Cash Flows................................................................................................................................. 39 Fund Financial Statements: Fiduciary Funds Statement of Fiduciary Assets and Liabilities................................................................................................. 40 Notes to Financial Statements.............................................................................................................................. 41 Required Supplementary Information Schedule of the Proportionate Share of the Net Pension Liability (Asset)............................................................. 75 Scheduleof Employer Contributions.................................................................................................................... 76 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual GeneralFund................................................................................................................................................... 77 Deschutes County Sheriff's Office.................................................................................................................. 80 Countywide Law Enforcement District........................................................................................................... 81 Rural Law Enforcement District...................................................................................................................... 82 RoadDepartment............................................................................................................................................. 83 Deschutes County 9-1-1 County Service District............................................................................................ 84 HealthServices................................................................................................................................................ 85 Notes to Required Supplementary Information............................................................................................... 86 HE Deschutes County Table of Contents As of and For the Year Ended June 30, 2016 Other Supplementary Information Combining and Individual Fund Statements and Schedules — Governmental Funds Major Funds and Sub -Funds Combining Balance Sheet GeneralFund........................................................................................................................................... 87 Deschutes County Road Department....................................................................................................... 90 Deschutes County 9-1-1 County Service District.................................................................................... 91 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances GeneralFund........................................................................................................................................... 92 Countywide Law Enforcement District................................................................................................... 95 Rural Law Enforcement District............................................................................................................. 96 Deschutes County Road Department....................................................................................................... 97 Deschutes County 9-1-1 County Service District.................................................................................... 98 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Sub -Funds of the General Fund Economic Development..................................................................................................................... 99 CourtTechnology Reserve............................................................................................................... 100 Assessment and Taxation Reserve................................................................................................... 101 Humane Society of Redmond........................................................................................................... 102 Project Development Fund............................................................................................................... 103 General County Projects................................................................................................................... 104 GeneralCapital Reserve................................................................................................................... 105 Community Justice — Juvenile.......................................................................................................... 106 CodeAbatement............................................................................................................................... 107 Vehicle Maintenance and Replacement........................................................................................... 108 Sub -Fund of Countywide Law Enforcement District Countywide Law Enforcement District — Capital Reserve............................................................... 109 Sub -Fund of Rural Law Enforcement District Rural Law Enforcement District — Capital Reserve......................................................................... 110 Sub -Funds of Road Department RoadBuilding and Equipment......................................................................................................... 111 Sub -Fund of Deschutes County 9-1-1 County Service District 9-1-1 County Service District — Equipment Reserve....................................................................... 112 Nonmajor Governmental Funds CombiningBalance Sheet.......................................................................................................................... 113 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 114 Nonmajor Special Revenue Funds CombiningBalance Sheet.......................................................................................................................... 115 Deschutes County Community Development Department and Sub -Funds .......................................... 123 Deschutes County Extension 4-H County Service District and Sub -Fund ............................................ 124 lv Deschutes County Table of Contents As of and For the Year Ended June 30, 2016 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 125 Deschutes County Community Development Department and Sub -Funds ......................................... 134 Deschutes County Extension 4-H County Service District and Sub -Fund .......................................... 135 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual JusticeCourt ........................................................................................................................................ 136 Industrial Lands Proceeds.................................................................................................................... 137 Park Acquisition and Development..................................................................................................... 138 ParkDevelopment Fees....................................................................................................................... 139 CountySchool Fund............................................................................................................................ 140 Special Transportation Fund................................................................................................................ 141 TaylorGrazing..................................................................................................................................... 142 TransientRoom Tax............................................................................................................................ 143 PERSReserve Fund............................................................................................................................. 144 VideoLottery ....................................................................................................................................... 145 TransientRoom Tax — 1%................................................................................................................... 146 ForeclosedLand Sales......................................................................................................................... 147 Victims' Assistance............................................................................................................................. 148 LawLibrary ......................................................................................................................................... 149 CountyClerk Records.......................................................................................................................... 150 EarlyLearning Hub............................................................................................................................. 151 CourtFacilities..................................................................................................................................... 152 Deschutes County Communication System......................................................................................... 153 Deschutes County Communication System Reserve........................................................................... 154 Community Development Department................................................................................................ 155 Community Development Reserve (Sub -Fund of Community Development Department) ................ 156 CDD Building Program Reserve (Sub -Fund of Community Development Department) ................... 157 CDD Building Improvement Reserve (Sub -Fund of Community Development Department)............ 158 CDD Groundwater Partnership............................................................................................................ 159 NewberryNeighborhood..................................................................................................................... 160 GISDedicated Fund............................................................................................................................. 161 Natural Resource Protection................................................................................................................ 162 FederalForest Title III......................................................................................................................... 163 Surveyor............................................................................................................................................... 164 Public Land Corner Preservation......................................................................................................... 165 Countywide Transportation SDC Improvement Fee........................................................................... 166 DogControl......................................................................................................................................... 167 Adult Parole and Probation.................................................................................................................. 168 Extension4-H...................................................................................................................................... 169 Extension 4-H Construction (Sub -Fund of Extension 4-H)................................................................. 170 Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 171 Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual Deschutes County Debt Service.......................................................................................................... 172 Sunriver Library County Service District Debt Service...................................................................... 173 Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 174 Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual ...................... 175 North County Services Building.......................................................................................................... 176 CampusImprovement.......................................................................................................................... 177 v Deschutes County Table of Contents As of and For the Year Ended June 30, 2016 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity ........................................... 179 Combining and Individual Fund Statements and Schedules — Proprietary Funds Enterprise Funds Combining Schedule of Net Position Solid Waste Enterprise Operations Fund and Sub-Funds.................................................................... 180 Fair and Expo Center Enterprise Operations Fund and Sub -Funds ..................................................... 181 Combining Schedule of Revenues, Expenses, and Changes in Net Position Solid Waste Enterprise Operations Fund and Sub-Funds.................................................................... 182 Fair and Expo Center Enterprise Operations Fund and Sub -Funds ..................................................... 183 Combining Schedule of Cash Flows Solid Waste Enterprise Operations Fund and Sub-Funds.................................................................... 184 Fair and Expo Center Enterprise Operations Fund and Sub -Funds ..................................................... 185 Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual Solid Waste Operations (Sub -Fund of Solid Waste Enterprise).......................................................... 186 Landfill Closure (Sub -Fund of Solid Waste Enterprise)...................................................................... 187 Landfill Postclosure (Sub -Fund of Solid Waste Enterprise)................................................................ 188 Solid Waste Capital Projects (Sub -Fund of Solid Waste Enterprise) .................................................. 189 Solid Waste Equipment Reserve (Sub -Fund of Solid Waste Enterprise) ............................................ 190 Fair and Expo Center (Sub -Fund of Fair and Expo Enterprise).......................................................... 191 Annual County Fair (Sub -Fund of Fair and Expo Enterprise)............................................................. 192 Fair and Expo Center Reserve (Sub -Fund of Fair and Expo Enterprise) ............................................. 193 Fairgrounds Debt Service Fund (Sub -Fund of Fair and Expo Enterprise) .......................................... 194 RVPark............................................................................................................................................... 195 Internal Service Funds Combining Statement of Net Position....................................................................................................... 196 Combining Statement of Revenues, Expenses, and Changes in Net Position .......................................... 198 Combining Statement of Cash Flows........................................................................................................ 200 Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Propertyand Facilities......................................................................................................................... 202 AdministrativeServices....................................................................................................................... 203 Board of County Commissioners......................................................................................................... 204 Finance................................................................................................................................................. 205 FinanceReserve................................................................................................................................... 206 Legal.................................................................................................................................................... 207 HumanResources................................................................................................................................ 208 InformationTechnology...................................................................................................................... 209 ITReserve............................................................................................................................................ 210 Insurance.............................................................................................................................................. 211 HealthBenefits.................................................................................................................................... 212 vi Deschutes County Table of Contents As of and For the Year Ended June 30, 2016 Other Financial Schedules Schedule of Property Taxes Transactions — All County Taxes............................................................................. 213 Schedule of Long -Term Debt Transactions.......................................................................................................... 214 Schedule of Long -Term Debt Interest Transactions............................................................................................. 215 Schedule of Future Debt Service Requirements of General Obligation Bond ...................................................... 216 Schedule of Future Debt Service Requirements of Pension Obligation Bonds .................................................... 217 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds — Governmental Activities....... 218 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds — Business -Type Activities...... 221 Statistical Section Statistical Section Contents................................................................................................................................. 223 Financial Trends Net Position by Component — Last Ten Fiscal Years..................................................................................... 224 Changes in Net Position — Last Ten Fiscal Years.......................................................................................... 226 Fund Balances - Governmental Funds — Last Ten Fiscal Years..................................................................... 228 Changes in Fund Balances - Governmental Funds — Last Ten Fiscal Years .................................................. 230 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years .......................... 232 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years............................................................ 234 Principal Property Taxpayers — Current Fiscal and Nine Years Ago............................................................. 236 Property Taxes Levies and Collections — Last Ten Fiscal Years................................................................... 237 Debt Capacity Ratios of Outstanding Debt by Type — Last Ten Fiscal Years.......................................................................238 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years ..........................................................240 Direct and Overlapping Governmental Activities Debt.................................................................................241 Legal Debt Margin Information — Last Ten Fiscal Years...............................................................................242 Pledged -Revenue Coverage — Last Ten Fiscal Years.....................................................................................244 Demographic and Economic Information Demographic and Economic Statistics — Last Ten Calendar Years............................................................... 245 Principal Employers — Current Year and Nine Years Ago............................................................................ 246 Operating Information Full -Time Equivalent County Government Employees by Function/Program — Last Ten Fiscal Years ....... 248 Operating Indicators by Function/Program — Last Ten Fiscal Years.............................................................250 Capital Asset Statistics by Function / Program — Last Ten Fiscal Years .......................................................252 Audit Comments and Disclosures Required By State Regulations Audit Comments and Disclosures Required by State Regulations................................................................255 Independent Auditor's Report Required by Oregon State Regulations .........................................................256 Single Audit Compliance Internal 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........................................................................................................................................................259 Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance and Report on Expenditures of Federal Awards Required by the Uniform Guidance...... 261 Schedule of Expenditures of Federal Awards................................................................................................263 Notes to the Schedule of Expenditures of Federal Awards............................................................................266 Schedule of Findings and Questioned Costs..................................................................................................271 Schedule of Prior Year Findings....................................................................................................................273 vu Introductory Section June 30, 2016 Deschutes County, Oregon ErA%AA DEPARTMENT OF ADMINISTRATIVE SERVICES Torn Anderson, County Administrator a-� 1300 NW Wall Street, Suite 206 ■ Bend, Oregon 97703 (541) 388-6565 • FAX (541) 385-3202 www.deschutes.ar� October 28, 2016 To the Board of County Commissioners and citizens of Deschutes County, Oregon: We are pleased to submit the Comprehensive Annual Financial Report of Deschutes County, Oregon as of and for the year ended June 30, 2016, together with the opinion 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) Compliance Supplement and the provisions of Government Auditing Standards promulgated by the U.S. Comptroller General as they pertain to the financial and compliance audits. A report on the County's compliance with applicable Federal laws and regulations related to the Single Audit Act, OMB Compliance Supplement is included with this report beginning on page 261. 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, 2016, 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 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, veterans services, justice court, parole & probation, election services, records maintenance, and operation of a landfill, a fair and expo center, and an RV park. 1 Lnlr,wacit7y the Lives of Citize ns &zt Delaverthy Qmali% Services irr a Cost-ec'iryMarxe re 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 and Deschutes County Extension / 4-H Districts are reported as special revenue funds of Deschutes County. Sunriver Library CSD is reported as a debt service fund 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 three 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 87 as part of the required supplementary information. All other funds are presented in a subsection of this report, which starts on page 113. 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 166,400, an increase of approximately 33% over the last 10 years, and is projected to exceed 198,000 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 Festival/Balloons over Bend, Pole Pedal Paddle, Sisters Rodeo, WinterFest, Bend Film Festival and the Cascade Cycling Classic. In Fiscal Year 2016, the County's assessed valuation of taxable property increased by 6.3%, approximately $1.2 billion, to a total of $20.9 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 experienced growth in the technology sector and is home to many 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 11 Trauma Center with nearly 300 active medical staff. Bonds were recently sold by the Hospital Facilities Authority to expand the ICU facility over the next two years. 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) 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 North County Facility — The County purchased property in the City of Redmond several years ago with the intent to partner with the state or Oregon to coordinate public services in the North County area. Due to several changing circumstances, the County elected to remodel an existing County owned building and the County has entered into a sale agreement for the original North County building. That sale was completed in FY 2016 realizing a gain of nearly $800,000. PERS Rates — The state retirement system, known as PERS, sets rates for employers every two years. PERS rates reached an all-time high in FY 2013 due to the effects of the recession on pension fund earnings and due to years of greater than anticipated retirement payouts. The Oregon Legislature passed several bills that changed some of the rules related to cost of living adjustments and other features of the plan. The effect of the legislative changes was to effectively lower employer rates and to stem future rate increases. The Oregon Supreme Court, in April 2015, overturned the majority of the changes made by the legislature. As a result, it appears that employer rates will significantly increase in the next rate setting cycle and could continue to increase significantly for the next several cycles. Local government employers are bracing for significant increases in PERS rates beginning in FY 2018 and again in FY 2020. The County's 9-1-1 center is funded through property taxes levied by the Deschutes County 9-1-1 County Service District. The District's property taxes will be levied at a permanent rate of $.1618 per $1,000 of assessed valuation and a five-year local option levy of $.20 per $1,000, through FY 2017. An updated strategic plan was adopted by the District's governing board and implemented by the District during FY 2015. The plan called for the enhancement of services available for first responders and for the development of an updated communications system consisting of the integration of telephone, radio and public safety records systems. Voters overwhelmingly approved the formation of a new district, to replace the existing District, with a permanent rate of $.425 per $1,000. The assets and liabilities of the District will be transferred to the new district effective July 1, 2017. This new levy authority is expected to provide adequate funding into the future for growth and enhanced services. Major Initiatives Finance/Human Resource Software — The County has been using a Finance/Human Resources program since FY 2000 as its base accounting system. The County determined the current system should be replaced and issued an RFP in April 2015 to solicit proposals from software vendors. Six proposals were received. After initial screening, three proposals were advanced to the demonstration phase. Demonstrations were held in August and September of 2015. The County awarded a contract in the spring of 2016 to Tyler Technologies for a two -phased project that officially began in May 2016. The financial phase of the project is expected to be completed in July 2017 and the payroll/human resources phase of the project is expected to be completed in January 2018. Road Projects — The County plans to spend nearly $10,000,000 during the next five years on road improvement projects. Four projects make up most of the current capital plan including Huntington/Deer Run paving project estimated at $2,400,000, in the La Pine area, improvements to the Old Bend/Redmond Corridor estimated at $3,000,000, improvements to NE 17t' and NE Negus in the Redmond area estimated at $1,500,000 and the paving of Rickard road in Bend estimated at $800,000. The County established a capital project fund in its FY 2017 budget and will transfer resources that have accumulated for the funding of these major capital improvements. The Road department expects to contribute a share of future revenues to this fund to continue future planning and improvements to the County's road systems. Self -Funded Health Benefits — In February 2011, the County opened its on-site employee health clinic 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. Both of these operations are an extension of the County's self-funded employee health and dental insurance fund. The County has used these features to help contain employee health insurance costs. The County recently hired a benefits consultant to help continue the advantages of self -funding and to assist in the implementation of coming ACA requirements. The County will receive additional analysis and recommendations over the next several years on issues including rate setting, reserve levels, benefit structures, adequate stop loss levels and many other topics to assist with the ongoing management of the self- insured programs. 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, 2015. This was the fifteenth 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 County also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for FY 2016. To qualify for this Distinguished Budget Presentation Award, the County's budget document had to be judged proficient as a policy document, a financial plan, an operations guide and a communication device. 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. We would like to express our appreciation to all members of the Finance Department who assisted and contributed to the preparation of this report with special acknowledgement to Jeanine Faria, Accounting Manager. 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, 7z�L,4.re�� Tom Anderson County Administrator Wayne Lowry Finance Director 4 County Assessor SW Langton C Mly Ckirk. Ha TB Aplraisak Elac s Assessanent Rerxxb ❑ocume#tt Recording aPhY ilial Records Prooertv Tax Citizens of Deschutes County Cwr Sherif Board of CCCIMSSipners. Justice of the D;ohn Attwrtey County Trea,sury L. Shane Nelson Anlhcary CeRcne John Hunrme4 Peace 44ayce Lcrary IAWcinted} Plar Unger Chides Fa" Tarrsmy Berney ConeLYonS Prosea"n in Traffid OrdlnanmET- 4ilefl6 .Jailf Work Center) cirm t cow VAA3tons Law Enforcernent County Trea 9 Corrin Small Clams Ctnvt sfibuticn L Counsel Q3vid Doyle Admin,strator M Tom Acm n statve 3 L4ctims' A.sslstance County Legal D.P... Adnenistatiwe. Court Pnoceeu T�gs lb 0 Elected Offices 0 Appointed Offices 0 Department Functions Aanlrl*'. tar mcaunn TaAndersan Heath Sereces Sakti Wage I F&AErgra Cxnib Raad Department Cmnmunitiy Dr. George A. 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MCrntonng Detem6aa TnarhstlCnal Pra6aton8 Sautoes DR�erbFnn f County & Deputy County Administrator Appointed Offices Department Functions FlnanceTax Prsrperty Mayne Lowy P,Sana4••e+neit James Lewd Accmnling Pnopen}• Veierd r6'u^en+e�s Paymi Marnagle�mem Lav Ubrary EWDgH f County & Deputy County Administrator Appointed Offices Department Functions List of Elected and Appointed Officials ELECTED OFFICIALS COUNTY COMMISSIONERS Tammy Baney Anthony DeBone Alan Unger ASSESSOR Scot Langton SHERIFF Shane Nelson — Appointed July 1, 2015 COUNTY CLERK Nancy Blankenship 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 97703 DISTRICT ATTORNEY John Hummel TREASURER Wayne Lowry JUSTICE COURT Charles Fadely r Government. Finance Offluers Association Certificate of Achievement for Excellence in Financial Reporting Presented t Deschutes County Oregon For its Comprehensive Annual Financial Deport for the Fiscal Year Ended June 30, 2015 Executive Director/CEO Financial Section June 30, 2016 Deschutes County, Oregon EideBally, 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, 2016, 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. 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, 2016, 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. www.eidebaiIIy.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, schedule of proportionate share of the net pension liability (asset), schedule of employer contributions, and the schedules of revenues, expenditures, and changes in fund balances — budget and actual and related notes (budgetary schedules), 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 management's discussion and analysis, schedule of proportionate share of the net pension liability, schedule of employer contributions and budgetary schedules 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 management's discussion and analysis, schedule of proportionate share of the net pension liability, schedule of employer contributions and budgetary schedules 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, the combining and individual fund statements and schedules and budgetary comparison schedules — governmental funds, the statement of changes in assets and liabilities — agency funds — detail activity, combining individual fund statements and schedules and budgetary comparison schedules — proprietary funds, schedule of property tax transactions, schedules of long-term debt transactions, schedules of future debt service requirements, and statistical section as listed in the table of contents 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 Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the financial statements. The combining and individual fund statements and schedules and budgetary comparison schedules — governmental funds, the statement of changes in assets and liabilities — agency funds — detail activity, combining individual fund statements and schedules and budgetary comparison schedules — proprietary funds, schedule of property tax transactions, schedules of long-term debt transactions, schedules of future debt service requirements, and the 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, combining and individual fund statements and schedules and budgetary comparison schedules — governmental funds, the statement of changes in assets and liabilities — agency funds — detail activity, combining individual fund statements and schedules and budgetary comparison schedules — proprietary funds, schedule of property tax transactions, schedules of long-term debt transactions, schedules of future debt service requirements, and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory 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. 10 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated October 28, 2016, 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, 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. 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 October 28, 2016, 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 October 28, 2016 11 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 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, 2016. 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 1-4 of this report. Financial Highlights On a government -wide basis, total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $183,094,084 as of June 30, 2016, a reduction of $8,054,229 in net position from June 30, 2015. Deferred outflows and inflows are mostly pension related balances that are more fully explained in the footnotes to the financial statements. • On a governmental funds basis, the County reported a combined fund balance of $107,849,417, an increase of $10,496,318 from June 30, 2015. Of this balance, $32,839,748 is available to meet the County's obligations. The remainder is either non - spendable or restricted. • County General Fund o The General Fund fund balance, including the sub -funds of the general fund, was $21,374,220 as of June 30, 2016, an increase of $3,668,384 over the balance at June 30, 2015. June 30, 2016 June 30, 2015 General fund (Operations) $ 11,308,301 $ 9,871,908 Sub -funds of the General Fund 10,065,919 7,833,927 $ 21,374,220 $ 17,705,835 o Fund balance is 59.1% percent of the Fund's combined revenues and transfers in and 65.8% of the fund's combined expenditures and transfers out. • The County's Assessed Valuation of Taxable Property increased by 6.3% in Fiscal Year 2016. • Total bonded debt was $65,012,315 as of June 30, 2016, compared to total bonded debt of $70,940,949 as of June 30, 2015. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Deschutes County's basic financial statements. These basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of Deschutes County's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all of Deschutes County's assets, 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, 2016. 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. 12 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 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-govemmental 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 the RV Park. The government -wide financial statements include five county service districts: Countywide Law Enforcement District, Rural Law Enforcement District, Deschutes County 9-1-1 District, Deschutes County Extension and 4-H Service District, and Sunriver Library District. These entities are legally separate but are included as blended component units based on the criteria described in the Notes to Financial Statements (Note 1 — Summary of Significant Accounting Policies). Requests for copies of the separately issued financial statements for the county service districts should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Suite 200, Bend, OR 97703. The government -wide financial statements can be found on pages 24-26 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 ou flows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government -wide Statement of Net Position and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government - wide Statement of Activities have been included in this report. Reconciliation of the Governmental Funds Balance Sheet to the Governmental Activities column on the Statement of Net Position — The measurement criteria for each statement result in several significant differences between these two statements. Capital assets of $140,545,111 used in governmental activities are not financial resources and therefore are not included in fund balance but are part of net position. Liabilities which will be liquidated more than one year from balance sheet date of $108,825,594, are not reported on the Balance Sheet but are reported on the Statement of Net Position. Deferred outflows and inflows of resources, related primarily to reporting the County's defined benefit pension plan, are reported in the Statement of Net Position but not on the Balance Sheet. The full reconciliation can be found on page 34. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Governmental Activities column on Statement of Activities — The fund balances of the County's governmental funds increased by $10,496,318 during FY 2016 while the net position of governmental activities decreased by $9,004,545. This $19,500,866 difference is due to fiscal year transactions that are reported differently on each statement. Repayments of long term debt of $4,919,666 and expenditures for the acquisition of capital assets of $10,509,977 are not reported as expenses on the Statement of Activities. Instead they are reductions of noncurrent liabilities and additions to capital assets, respectively. The County reported a capital grant of $6,991,011 that was the resource for acquiring infrastructure. Other reconciling items include accrued revenues and expenses and changes in accruals and deferrals netting a reduction in net position of $39,225,762. The largest item is the recognition of pension expense in the amount of $27,180,414 as required by GASB 68 that is reported only in the statement of activities, not the governmental fund statements as it is not a use of financial resources in the current period. 13 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 Deschutes County reported activity in sixty (60) individual governmental funds and sub -funds during Fiscal Year 2016. 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 and Health Services). Data from all other governmental funds are combined into a single, aggregated presentation. Individual data for each of these non -major governmental funds is provided in the form of combining statements in the "Other Supplementary Information" section of this report and in the budget to actual comparison schedules. Deschutes County adopts an annual budget for each of its funds and a budgetary comparison statement has been provided for each to demonstrate compliance with its annual budget. The Basic Governmental Fund Financial Statements can be found on pages 28-34 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 compared to the government -wide financial statements. The proprietary fund financial statements provide information separately for Solid Waste, Fair & Expo Center operations and the 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. 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 179. 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 41-73 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 75. 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. 14 Government -wide Financial Analysis Assets other than capital assets Capital assets Total assets Deferred outflows of resources Non-current liabilities Current liabilities Total liabilities Deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Net position Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 Deschutes County Net Position Governmental activities Business -type activities Total 2016 2015 2016 2015 2016 2015 $ 145,732,204 $ 144,837,755 $ 9,646,936 $ 9,315,521 $ 155,379,140 $ 154,153,276 141,065,655 133,537,282 48,708,875 50,419,335 189,774,530 183,956,617 286,797,859 278,375,037 58,355,810 59,734,856 345,153,670 338,109,893 9,009,867 6,152,382 490,225 475,306 9,500,092 6,627,688 107,398,671 71,852,192 24,516,075 26,246,826 131,914,746 98,099,018 24,880,746 23,172,730 4,635,201 4,746,770 29,515,947 27,919,500 132,279,417 95,024,922 29,151,276 30,993,596 161,430,693 126,018,518 9,809,093 26,778,734 319,892 792,015 10,128,985 27,570,749 101,724,105 91,385,492 33,549,044 31,628,811 135,273,150 123,014,303 60,999,381 57,774,179 257,743 416,356 61,257,124 58,190,535 (9,004,273) 13,564,092 (4,431,920) (3,620,616) (13,436,194) 9,943,476 $ 153,719,217 $ 162,723,763 $ 29,374,867 $ 28,424,551 $ 183,094,084 $ 191,148,314 Fiscal Year 2016 ended with net position $8,054,229 less than the end of Fiscal Year 2015. Net position may serve as a useful indicator of an entity's financial strength as it measures the entity's excess of assets and other resources over its obligations on a long term basis. The County's net position decreased during the year primarily due to the change from a Pension Asset at June 30, 2015 of $13,913,943 to a Pension Liability of $36,983,685 at June 30, 2016. The effect of this can be seen in the significant increase in the June 30, 2016 noncurrent liabilities. This resulted from the implementation of GASB 68 in FY 2015 that requires pension related items be recorded on the government -wide statements. In addition, the State of Oregon's PERS system financial position changed dramatically from June 30, 2014 to June 30, 2015 due to an Oregon Supreme Court decision in the spring of 2015 that overturned a number of cost savings legislative changes to the pension system's terms for retirees. The impact of PERS related items on the statement of net position was a reduction of over $30,000,000. The impact of PERS related items was mitigated by financial events during FY 2016 which increased the County's net position by $20,000,000. Most of this increase relates to increased revenues and a federal contribution to a County road project of $6,991,011. Details for governmental and business -type activities are noted on the following page. Seventy-four percent of Deschutes County's net position of $183,094,084 represents its investment in capital assets including land, infrastructure, buildings, roads and equipment, net of related debt. These assets are used to provide core services to Deschutes County citizens. The portion of net position restricted for use in its long term capital projects, debt service requirements, public safety, roads and health programs totaled $61,257,124 or 33.5%. Due in part to the significant increase in the pension liability and its impact on net position, the unrestricted category of net position is negative for both governmental activities and business -type activities by a total of $13,436,194. 15 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 Changes in Net Position 16 Governmental activities Business -type activities Total 2016 2015 2016 2015 2016 2015 Program revenues: Charges for services $ 45,486,299 $ 40,041,937 $ 11,773,671 $ 10,692,140 $ 57,259,970 $ 50,734,077 Operating grants and contributions 42,990,874 40,911,962 53,667 51,244 43,044,541 40,963,206 Capital grants and contributions 7,003,177 193,226 - - 7,003,177 193,226 General revenues: Property taxes 63,126,625 58,485,588 2,555,831 2,623,509 65,682,456 61,109,097 Other taxes 6,068,098 5,248,200 - - 6,068,098 5,248,200 Other 1,643,757 1,188,209 94,674 71,740 1,738,431 1,259,949 Total revenues 166,318,830 146,069,122 14,477,843 13,438,633 180,796,673 159,507,755 Expenses: General government 34,853,689 24,792,417 - - 34,853,689 24,792,417 Public safety 74,941,547 46,351,357 - - 74,941,547 46,351,357 County roads 18,269,586 16,818,974 - - 18,269,586 16,818,974 Health and welfare 43,850,703 31,944,749 - - 43,850,703 31,944,749 Education 610,125 656,218 - - 610,125 656,218 Interest on long-term debt 2,284,295 2,385,397 - - 2,284,295 2,385,397 Solid waste - - 9,272,404 7,614,444 9,272,404 7,614,444 Fair & expo center - - 4,290,630 3,466,338 4,290,630 3,466,338 RV park - - 477,924 473,792 477,924 473,792 Total expenses 174,809,945 122,949,112 14,040,958 11,554,574 188,850,903 134,503,686 Change in net position before transfers (8,491,115) 23,120,011 436,885 1,884,058 (8,054,230) 25,004,069 Transfers (513,431) (559,305) 513,431 559,305 - Change in net position (9,004,546) 22,560,706 950,315 2,443,363 (8,054,230) 25,004,069 Net position, beginning of year 162,723,763 140,163,057 28,424,551 25,981,188 191,148,314 166,144,245 Net position, end of year $ 153,719,217 $ 162,723,763 $ 29,374,867 $ 28,424,551 $ 183,094,084 $ 191,148,314 16 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 As described above, the net position of the County decreased by $8,054,229 during FY 2016. Discussion and analysis of the changes for both governmental activities and business -type activities are included below. CHANGES DUE TO GOVERNMENTAL ACTIVITIES During Fiscal Year 2016, net position for governmental activities decreased by $9,004,545. Several key factors produced this result for FY 2016. The most significant was the dramatic change in pension expense for governmental activities. Due to the Oregon Supreme Court's recent decision to overturn legislative changes to the terms of the statewide PERS system, the County's proportionate share of the collective pension expense was $28,025,060. Pension expense reported for Fiscal Year 2015 for governmental activities was a negative $11,991,057. In addition to this impact, significant changes in net position occurred in several major funds with less significant amounts reported in nonmajor funds as described below. • The County's General Fund's net position increased by $3,668,384 due in part to a 6.3% increase in assessed value and its impact on property tax revenues. Increases in revenues generally exceeded increases in operating expenses. In addition, capital projects in the amount of $2,064,076 were capitalized and therefore not shown as expenses when arriving at net position. • Increased permit activity in the County's Community Development Department contributed $1,234,771 to net position due to robust real property development in the region. Additional personnel will be required in FY 2017 to handle increased permit activity and maintain appropriate permit issuance timelines. • Road fund revenues from various sources were greater than expenditures for maintenance and operations by $3,417,645 for the year. Resources not expended during Fiscal Year 2016 will be transferred to a capital projects fund in FY 2017 to finance projects over the next five years. • Transient room taxes increased by nearly $820,000 due to increased tourism activity. These resources are available to promote tourism. CHANGES DUE TO BUSINESS -TYPE ACTIVITIES During FY 2016, the net position of business -type activities increased by $950,315. The impacts on the changes in net position for the business -type activities are indicated below. o The most significant impact was due to pension expense for business -type activities. For the same reasons described above, pension expense for FY 2016 was $960,522, whereas pension expense for FY 2015 was a negative $371,426. o The County's Fair & Expo Center reported a net operating loss of $1,686,295, however, after considering $2,555,831 of property taxes levied to retire long-term debt and other non-operating revenues, the net position increased $1,135,689 excluding the impacts of pension expense. o The Solid Waste operation experienced a decrease in net position of $86,914 in addition to the impacts of the pension expense. Revenues from the current rate structure do not cover operations of the solid waste function due to the inclusion of depreciation, interest expense related to debt and increasing landfill post -closure costs and the fact that the per ton rate has not changed since before the recession. o The RV Park experienced greater rental nights during FY 2016 generating increased revenues that exceeded expenses. 17 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 Expenses and Program Revenues - Governmental Activities 50,000 40,000 30,000 20,000 10,000 0 -10,000 Revenues by Source - Governmental Activities Property taxes 40% Car Othertaxes 4% `--ges for services contributions 0% 18 27% Other 1% uperating grants and contributions 28% Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 Expenses and Program Revenues - Business -type Activities 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Solid waste Fair and expo center RV Park Revenues by Source - Business -type Activities Charges for service 80% Other 1% 19 ?rating grants and contributions 0% rty taxes 9% Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 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, near-term 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, 2016, $107,849,417 is the reported combined ending fund balance for Deschutes County's governmental funds, a net increase of $10,496,318 from June 30, 2015. Changes, amounts and percentages, in the fund balances of the major governmental funds and of the other governmental funds were: MAJOR o General Fund (including sub -funds): increase of $3,668,384, 20.7% o Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District (combined): increase of $1,206,118, 11.9% o Road: increase of $3,417,645, 24% o Deschutes County 9-1-1 County Service District: decrease of $61,425, -.4% o Health Services: decrease of $302,225, -1.8% NONMAJOR o Nonmajor special revenue: increase of $2,983,370, 13.4% o Nonmajor debt service: decrease of $21,145, -4.3% o Nonmajor capital project: decrease of $394,405, decrease of 100% as the projects were completed Significant Changes in Major Funds General Fund: As of June 30, 2016, the fund balance of Deschutes County's General Fund was $21,374,220. Of this fund balance, $10,753,886 is restricted, committed or assigned for specific use and $10,620,333 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, 2016, for the General Fund is 92.6% of total General Fund expenditures and 65.8% of total General Fund combined expenditures and transfers out. Deschutes County's General Fund balance increased by $3,668,384 or 20.7% during Fiscal Year 2016. Property tax revenues increased by $1,258,494. In addition, revenues for the County Clerk exceeded expenditures by $274,295. The balance of the change was due to lower capital expenditures resulting from the completion in FY 2015 of the Jail expansion project. 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 $36,172,611, were transferred to the Sheriff's fund where all Sheriff's services expenditures are recorded. Combined fund balances of these three major funds increased by $1,206,118 due to an increase in FY 2016 in the levy rate for the Countywide district and an increase in assessed value generally greater than the increases in expenditures. Road: The fund balance of the Road fund increased by $3,417,645, or 24% during FY 2016. 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. Motor vehicle revenues were up over the previous year by $960,235 and charges to other governments for contracted services were up by $311,472 while expenditures for operations and capital projects were similar to FY 2015 levels. 20 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 Deschutes County 9-1-1 County Service District: The fund balance of Deschutes County 9-1-1 decreased by $61,425 to a total of $15,188,557. This activity is supported primarily by property taxes which increased by 5.4% during FY 2016 due mainly to the increase in assessed value. Whereas, operating revenues exceeded operating expenditures by $1,759,803, the District expended $1,821,228 on the communication systems project. Health Services: The Health Services Fund reflects the combination of several previously separately presented health related funds with the two largest being Public Health and Behavioral Health. These funds were combined as part of a departmental restructure. Fund balance for the Health Services Fund decreased by $302,225 or 1.8%. It is anticipated that fund balance will continue to decline over the next several years given the expected changes to the delivery of health services in Oregon. The combined fund balances of the County's nonmajor special revenue funds increased by $2,567,821. Room tax revenue increased $819,899 over FY 2015, due to increased tourism activity, which resulted in an increase in fund balance of $821,261. Revenues related to community development activities increased by $992,197 due to continued strength in real estate development. The adult parole and probation department received additional state revenues for the Justice Reinvestment Program in the amount of $845,836 and expects to expend those funds during FY 2017. 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, 2016, the net position of the Solid Waste Department was $12,148,030, a decrease of $651,260. Of this balance, $16,287,882 is invested in capital assets, net of related debt, a decrease of $173,042 during Fiscal Year 2016. The operation of the Solid Waste Department provides the resources to be used in future years for the closure and post -closure costs associated with the landfills. The estimate for post closure liability at June 30, 2016 is of $10,690,372. The June 30, 2016 net position of the Fair and Expo Center was $16,391,649, an increase of $1,476,515. The majority of the increase in net position resulted from the reduction in bonded debt of $2,535,000. 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 and an improving economy, the RV Park will be a profitable enterprise. The unrestricted net position at June 30, 2016, was $171,438, an increase of $112,057. 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 $854,907 more than estimated. The variance is due to property taxes, charges for services and state payments in excess of amounts estimated. The variance between appropriations and the expenditures was $1,019,160, approximately 7.0% of final appropriations. Several factors contributed to this variance including unfilled positions in several departments and lower than budgeted materials and services expenditures in the Assessor's Office, Clerk's Office and Tax Office. 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, 2016, was $189,774,530, net of accumulated depreciation. The book value of the depreciable assets is 56% 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 3.1) on pages 52-53 of this report. Long-term debt. As of June 30, 2016, Deschutes County's outstanding bonded debt was $65,012,315, all of which is backed by the full faith and credit of the County. 21 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 Governmental activities Business -type activities Total 6/30/2016 6/30/2015 6/30/2016 6/30/2015 6/30/2016 6/30/2015 General Obligation Bonds $ - $ 90,000 $ 2,595,000 $ 5,130,000 $ 2,595,000 $ 5,220,000 Oregon Local Gov't Pension Bonds 10,235,315 10,535,949 - - 10,235,315 10,535,949 Full Faith & Credit Obligations 39,548,053 42,151,790 12,633,947 13,376,696 52,182,000 55,528,486 Total $ 49,783,368 $ 52,777,739 $ 15,228,947 $ 18,506,696 $ 65,012,315 $ 71,284,435 Deschutes County's bonded debt decreased by $6,272,120 during the fiscal year due to scheduled debt repayments. This reduction is related to the normal debt service schedule of the County's outstanding debt. In addition, the County refinanced two bond issues and one promissory note during FY 2016 with a total principal of new bonds issued of $10,052,000 and principal of $9,650,000 called. Both new issues were bank placements rather than market issues and resulted in estimated interest savings of $1,203,403 through 2027, the remaining life of the debt. 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. These ratings were confirmed in FY 2016. 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 $28.8 billion, the current debt limitation for Deschutes County is $577,000,000. The County's general obligation debt at June 30, 2016 of $2,595,000 represents less than 1.0% of this limitation. Additional information on Deschutes County's long-term debt is included in Note 3.H on pages 54-57 of this report Key Economic Factors and Budget Information for the Future An increase in PERS contribution rates, effective July 1, 2017, is expected to increase the County's expenditure for its defined benefit retirement plans by an estimated 4.0% of payroll. At current staffing levels, it is projected that the FY 2018 contributions to PERS will exceed FY 2017 amounts by $2,400,000. The most recent interim valuation issued by PERS in September 2015 indicated that PERS employer rates could increase significantly over the next several rate setting biennia. This expected increase is due to the State Supreme Court decision to nullify the bulk of the cost saving legislative changes from the 2013 legislative session and changes to a number of actuarial assumption changes approved by the PERS Board in 2015 and 2016. In addition, the earnings rate of the PERS fund were less than the assumed rate of 7.5% for the past two calendar years. Earnings rate through July 2016 was 4.55%. The next rate setting valuation, projected to be completed Fall 2016, will set the rates for FY 2018 and FY 2019. • The County maintains a PERS Reserve fund. The balance at June 30, 2016 was $10,321,178. The purpose of the fund is to provide relief to departments should PERS rates increase beyond normal levels. As such an increase is expected in FY 2018, the County's FY 2017 budget includes a General Fund transfer to the PERS Reserve of $2,000,000. As part of the County's strategy to deal with impending PERS rate increases, the County has raised the PERS rates charged to departments for FY 2017 that is projected to increase the balance in the PERS Reserve fund by $1,000,000 during FY 2017. Beginning in FY 2018, the resources in the PERS Reserve fund will be used to lessen the impact on operating departments over the following six to eight years. • The County's Assessed Valuation of Taxable Property increased from Fiscal Year 2016 to Fiscal Year 2017 by 5.0% to approximately $22.0 billion. 22 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2016 • The Community Development Department and the Board of County Commissioners have taken steps to implement Oregon's law allowing recreational use of marijuana in the County. Although the County has no tax on the sale of these products, which is allowed by state law, permit activity for grow and sales facilities will begin to generate revenues in the Community Development Department beginning September 1, 2016. • The County awarded a contract for a finance and human resources software in the spring of 2016. The MUNIS product from Tyler Technologies will be implemented in two phases over the next two years with final implementation expected to be completed in January 2018. The County hopes to achieve best business practices in all financial areas and efficiencies in the transacting of County business. 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. 23 Basic Financial Statements June 30, 2016 Deschutes County, Oregon This page left intentionally blank. Deschutes County, Oregon Statement of Net Position June 30, 2016 ASSETS Current assets: Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable, net of allowance Assessments receivable Inventory Prepaid expenses Total current assets 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 OUTFLOWS OF RESOURCES Deferred charge on refunding Differences between Expected/Actual Experience Changes in Proportionate Share Contributions subsequent to measurement date Total deferred outflows of resources See notes to financial statements Totals may not add due to rounding 24 Governmental Business - Type Activities Activities Total $ 29,785,478 102,987,614 2,332,806 3,218,084 5,333,176 277,407 1,760,177 37,461 145,732,204 13,172,909 4,075,056 49,430,490 2,320,023 63,993,508 7,202,725 870,943 141,065,655 286,797,859 971,643 1,931,362 504,024 5,602,839 9,009,867 $ 1,962,710 6,751,096 72,800 674,271 24,921 161,138 9,646,936 1,924,037 1,078,951 20,037,977 23,078,747 2,584,644 4,520 48,708,875 58,355,810 228,084 62,985 16,437 182,719 490,225 $ 31,748,187 109,738,710 2,405,607 3,892,355 5,333,176 277,407 1,785,098 198,599 155,379,140 15,096,946 5,154,007 49,430,490 22,358,000 87,072,255 9,787,369 875,463 189,774,530 345,153,670 1,199,726 1,994,348 520,461 5,785,558 9,500,092 Deschutes County, Oregon Statement of Net Position June 30, 2016 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 Net pension liability Bonds and notes payable (net of unamortized premiums and discounts) Accrued claims payable Accrued landfill closure and postclosure costs Less current portion of noncurrent liabilities Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Difference between contributions and system share Net difference (projected & actual earnings) Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Debt service Public safety Road Health services Unrestricted Total net position See notes to financial statements Totals may not add due to rounding 25 Governmental Business - Type Activities Activities $ 6,343,444 166,535 2,732,541 15,638,226 24,880,746 8,686,991 19,561,703 35,815,671 50,548,504 8,424,028 (15,638,226) 107,398,671 132,279,417 2,301,316 7,507,777 9,809,093 101,724,105 306,026 26,507,888 17,671,267 16,514,200 (9,004,273) $ 153,719,217 $ 464,390 31,228 307,049 3,832,533 4,635,201 380,553 721,755 1,168,014 15,387,914 10,690,372 (3,832,533) 24,516,075 29,151,276 75,050 244,842 319,892 33,549,044 257,743 (4,431,920) $ 29,374,867 Total $ 6,807,834 197,763 3,039,590 19,470,760 29,515,947 9,067,544 20,283,458 36,983,685 65,936,418 8,424,028 10,690,372 (19,470,760) 131,914,746 161,430,693 2,376,366 7,752,619 10,128,985 135,273,150 563,769 26,507,888 17,671,267 16,514,200 (13,436,194) $ 183,094,084 Deschutes County, Oregon Statement of Activities Year Ended June 30, 2016 Business -type: Solid Waste 9,272,404 8,865,019 - - (407,385) Net (Expense) Revenue and Fair and Expo Center 4,290,630 2,500,139 53,667 Program Revenues (1,736,824) Changes in Net Position RV Park 477,924 Fees, Fines and Operating Capital Grants (69,411) Total business -type activities 14,040,958 11,773,671 53,667 - Charges for Grants and and Governmental Business -type Function/Program Expenses Services Contributions Contributions Activities Activities Total Governmental General government $ 34,853,689 $ 18,675,554 $ 3,107,092 $ 12,167 $ (13,058,876) $ $ (13,058,876) Public safety 74,941,547 5,620,314 10,108,243 - (59,212,990) (59,212,990) County roads 18,269,586 19,168,851 - 6,991,011 7,890,276 7,890,276 Health services 43,850,703 2,021,579 29,165,586 - (12,663,538) (12,663,538) Education 610,125 - 609,954 - (171) (171) Interest and fiscal charges 2,284,295 - - - (2,284,295) (2,284,295) Total governmental activities 174,809,945 45,486,299 42,990,874 7,003,178 (79,329,594) (79,329,594) Business -type: Solid Waste 9,272,404 8,865,019 - - (407,385) (407,385) Fair and Expo Center 4,290,630 2,500,139 53,667 - (1,736,824) (1,736,824) RV Park 477,924 408,513 - - (69,411) (69,411) Total business -type activities 14,040,958 11,773,671 53,667 - - (2,213,620) (2,213,620) Total $ 188,850,903 $ 57,259,970 $ 43,044,541 $ 7,003,178 (79,329,594) (2,213,620) (81,543,214) General revenues: Taxes: Property taxes, levied for general purposes 33,533,883 33,533,883 Property taxes, levied for sheriff services 29,508,509 29,508,509 Property taxes, levied for bonded debt 84,233 2,555,831 2,640,063 Transient room tax 6,068,098 - 6,068,098 Investment earnings 1,643,757 94,674 1,738,431 Transfers (513,431) 513,431 - Total general revenues and transfers 70,325,049 3,163,935 73,488,985 Change in net position (9,004,545) 950,315 (8,054,229) Net position - Beginning of year Net position - End of year See notes to financial statements Totals may not add due to rounding 26 162,723,762 28,424,552 191,148,314 $ 153,719,217 $ 29,374,867 $ 183,094,084 This page left intentionally blank. Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2016 LIABILITIES Liabilities: Accounts payable $ 1,197,813 $ 415,235 $ 65 Countywide Law Rural Law Deposits 3,832 - - - Enforcement Enforcement 2,066,905 - 33,600 General Fund Sheriff District District Road ASSETS 1,932,940 DEFERRED INFLOWS OF RESOURCES Cash and cash equivalents $ 5,322,332 $ 93,248 $ 1,268,730 $ 1,175,449 $ 3,862,841 Investments, at fair value; - - - - 277,407 Unavailable revenue - contracts of sale plus accrued interest 18,401,357 321,491 4,388,480 4,064,917 13,354,430 Taxes receivable 661,074 - 496,693 227,775 - Accounts receivable 359,850 496 171,444 219,227 626,760 Notes and contracts receivable 4,426,092 - - - - Assessments receivable - - - - 277,407 Inventory - - - - 1,760,177 Total assets $ 29,170,704 $ 415,235 $ 6,325,347 $ 5,687,367 $ 19,881,614 LIABILITIES Liabilities: Accounts payable $ 1,197,813 $ 415,235 $ 65 $ 2,250 $ 1,932,940 Deposits 3,832 - - - - Unearned revenue 2,066,905 - 33,600 - - Total liabilities 3,268,550 415,235 33,665 2,250 1,932,940 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 600,181 - 450,685 206,783 - Unavailable revenue - special assessments - - - - 277,407 Unavailable revenue - contracts of sale 3,927,754 - - - - Total deferred inflows of resources 4,527,935 - 450,685 206,783 277,407 FUND BALANCES Nonspendable 498,337 - - - 1,760,177 Restricted - - 5,840,997 5,478,335 15,911,090 Committed 3,944,405 - - - - Assigned 6,311,144 - - - - Unassigned 10,620,333 - - - - Total fund balances 21,374,220 - 5,840,997 5,478,335 17,671,267 Total liabilities, deferred inflows of resources and fund balances $ 29,170,704 $ 415,235 $ 6,325,347 $ 5,687,367 $ 19,881,614 See notes to financial statements Totals may not add due to rounding 28 Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2016 Deschutes County 9-1-1 Health Co Sery Dist Services ASSETS Other Total Governmental Governmental Funds Funds Cash and cash equivalents $ 3,400,825 $ 3,730,058 $ 5,618,985 $ 24,472,468 Investments, at fair value; plus accrued interest 11,760,671 12,896,107 19,426,806 84,614,258 Taxes receivable 180,679 - 766,586 2,332,806 Accounts receivable 380,155 829,991 469,822 3,057,743 Notes and contracts receivable - - 907,085 5,333,176 Assessments receivable - - - 277,407 Inventory - - - 1,760,177 Total assets $ 15,722,330 $ 17,456,156 $ 27,189,282 $ 121,848,036 LIABILITIES Liabilities: Accounts payable $ 369,448 $ 814,565 $ 892,787 $ 5,625,103 Deposits - - - 3,832 Unearned revenue - 127,391 500,813 2,728,709 Total liabilities 369,448 941,956 1,393,600 8,357,644 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 164,325 - 10,282 1,432,255 Unavailable revenue - special assessments - - - 277,407 Unavailable revenue - contracts of sale - - 3,559 3,931,313 Total deferred inflows of resources 164,325 - 13,841 5,640,975 FUND BALANCES Nonspendable - - 903,526 3,162,040 Restricted 15,188,557 16,514,200 12,914,449 71,847,628 Committed - - 11,963,866 15,908,271 Assigned - - - 6,311,144 Unassigned - - - 10,620,333 Total fund balances 15,188,557 16,514,200 25,781,841 107,849,417 Total liabilities, deferred inflows of resources and fund balances $ 15,722,330 $ 17,456,156 $ 27,189,282 $ 121,848,035 See notes to financial statements Totals may not add due to rounding 29 Deschutes County, Oregon Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position Year Ended June 30, 2016 Total fund balances for governmental funds 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. Deferred Outflows of Resources Defined Benefit Pension Plan Deferred charge on refunding 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 net position of the internal services funds is included in governmental activities in the statement of net position. 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 inflows of resources in the funds. Noncurrent liabilities applicable to the County's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Interest on bonds and notes payable is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities, current and noncurrent, are reported in the statement of net position. Balances at June 30, 2016, are: Accrued interest on bonds and notes payable Bonds and notes payable Unamortized premium and discount on bonds Net OPEB obligation Net pension liability Compensated leave Noncurrent liabilities and accrued interest Deferred inflows of resources Defined benefit pension plan Net position of governmental activities See notes to financial statements Totals may not add due to rounding 30 $ (166,535) (49,783,368) (765,136) (17,881,200) (32,642,221) (7,587,133) $ 107,849,417 140,545,111 7,325,997 971,643 9,151,622 5,640,979 (108,825,594) (8,939,958) $ 153,719,217 This page left intentionally blank. Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Special assessments Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Education Debt service: Principal payments Interest Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Refunding bonds issued Payment to refunded bond escrow agent Debt issuance costs Total other financing sources and uses Net change in fund balances Fund balances - Beginning of year Fund balances - End of year See notes to financial statements Totals may not add due to rounding General Fund Sheriff $ 25,900,311 $ - 34,400 - 6,437 - 409,059 - 498,186 - 3,921,459 36,172,611 3,299,391 - 165 - 326,424 - 562,628 - 34,958,460 36,172,611 Countywide Law Rural Law Enforcement Enforcement District District Road $ 20,444,517 $ 9,077,925 $ - 367,831 156,799 - - - 85,439 85,859 70,486 186,919 - - 957 2,520,052 4,378,830 16,516,237 287,632 85,290 1,588,991 37,585 10,932 - 12,532 42,460 - 23,756,008 13,822,722 18,378,543 14,500,356 - - - - 6,120,344 34,888,731 23,338,902 13,033,709 - - - - - 14,250,877 333,745 - - - - 2,064,076 1,012,645 - - 2,036,561 23,018,521 35,901,377 23,338,902 13,033,709 16,287,437 11,939,939 271,234 1,191,492 - (9,463,047) (271,234) (8,271,555) (271,234) 3,668,384 - 32 417,105 789,013 2,091,106 - 1,326,539 417,105 789,013 3,417,645 Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 EXPENDITURES Current: General government Deschutes - Other Total Public safety County 9-1-1 Health Governmental Governmental County roads Co Sery Dist Services Funds Funds REVENUES - 34,534,133 1,911,088 36,778,966 Taxes - property $ 7,227,499 $ - $ 536,313 $ 63,186,564 Taxes - other - - 6,068,098 6,068,098 Licenses and permits - 138,599 1,340,321 1,513,320 Fines, forfeitures and penalties - - 1,135,877 1,666,944 Special assessments - - - 85,439 Investment earnings 173,642 174,836 309,442 1,410,242 Rents - 5,375 1,277,107 1,781,625 Intergovernmental 1,277,814 27,741,628 9,920,371 102,449,003 Charges for services 875,173 2,432,627 8,088,101 16,657,205 Contributions and donations - 254,165 16,766 319,614 Payments on contracts of sale - - 4,831 331,256 Other - - - 617,619 Total revenues 9,554,127 30,747,231 28,697,228 196,086,929 EXPENDITURES Current: General government - - 12,313,190 26,813,546 Public safety 7,794,324 - 6,177,447 91,353,457 County roads - - 1,002,567 15,253,444 Health and welfare - 34,534,133 1,911,088 36,778,966 Education - - 610,125 610,125 Debt service: (61,425) (302,225) 2,567,821 10,496,318 Fund balances - Beginning of year Principal payments - - 3,015,338 3,015,338 Interest - - 2,259,334 2,259,334 Capital outlay 1,821,228 213,459 527,309 7,675,279 Total expenditures 9,615,552 34,747,592 27,816,400 183,759,490 Excess (deficiency) of revenues over expenditures (61,425) (4,000,362) 880,828 12,327,439 OTHER FINANCING SOURCES (USES) Transfers in - 4,143,877 3,902,919 10,564,827 Transfers out - (445,740) (2,223,225) (12,403,247) Refunding bonds issued - - 1,925,295 1,925,295 Payment to refunded bond escrow agent - - (1,904,328) (1,904,328) Debt issuance costs - - (13,668) (13,668) Total other financing sources and uses - 3,698,137 1,686,992 (1,831,121) Net change in fund balances (61,425) (302,225) 2,567,821 10,496,318 Fund balances - Beginning of year 15,249,982 16,816,425 23,214,021 97,353,099 Fund balances - End of year $ 15,188,557 $ 16,514,200 $ 25,781,841 $ 107,849,417 See notes to financial statements Totals may not add due to rounding 33 Deschutes County, Oregon Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2016 Net change in fund balances - total governmental funds Financial resources provided that are not revenues Payments on land sale contracts Issuance of debt Financial resources provided for/by Capital Assets Capital Grants Notes on sale of capital assets Financial resources used that are not expenditures Repayments on long-term debt Acquisition of capital assets Other adjustments: non-cash revenues and expenses and chanEes in accruals and deferrals 4,919,666 10,509,977 Depreciation and amortization expense (8,780,836) Pension Expense (27,180,414) Contributions to pension plan, susbsequent to measurement date 415,971 Amortization of deferred debt refunding cost (73,590) Amortization of bond premium / (discount), net 39,836 Book value of capital assets sold, retired or transferred (1,427,501) Decrease in accrued interest 22,462 Decrease in deferred property taxes (59,935) Increase in net OPEB obligation (1,690,657) Increase in compensated leave (491,094) Internal service funds Total Adjustments - year ended June 30, 2016 Change in net position of governmental activities - year ended June 30, 2016 See notes to financial statements Totals may not add due to rounding 34 $ 10,496,318 (420,334) (1,925,295) 6,991,011 1,860,562 15,429,642 (39,225,758) (2,210,690) (19,500,862) $ (9,004,545) This page left intentionally blank. ASSETS Current assets: Cash and cash equivalents Investments, plus accrued interest Accounts receivable Taxes receivable Due from other funds Inventory 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, Oregon Proprietary Funds Statement of Net Position June 30, 2016 Enterprise Funds Fair & Expo Internal Solid Waste Center RV Park Total Service Funds $ 1,732,716 $ 185,136 $ 44,857 $ 1,962,710 $ 5,313,010 5,979,946 617,063 154,088 6,751,096 18,373,357 662,033 12,238 - 674,271 160,341 - 72,800 - 72,800 - - 24,921 - 24,921 - - 161,138 - 161,138 37,461 8,374,695 1,073,295 198,945 9,646,936 23,884,169 1,791,352 132,685 - 1,924,037 - 1,078,951 - - 1,078,951 241,190 13,024,280 5,165,689 1,848,008 20,037,977 30,798 7,810,098 14,525,670 742,978 23,078,747 - 2,224,650 359,993 - 2,584,644 248,553 4,520 - - 4,520 - 25,933,851 20,184,037 2,590,986 48,708,875 520,541 34,308,547 21,257,332 2,789,931 58,355,810 24,404,709 DEFERRED OUTFLOWS OF RESOURCES 163,356 - 380,553 1,099,857 484,761 236,994 - Deferred charge on refunding 223,368 4,716 - 228,084 - Differences between Expected/Actual Experience 37,006 25,979 - 62,985 171,128 Changes in Proportionate Share 9,657 6,780 - 16,437 44,659 Contributions subsequent to measurement date 107,355 75,364 - 182,719 496,440 Total deferred outlows of resources 377,387 112,838 - 490,225 712,227 LIABILITIES 163,356 - 380,553 1,099,857 484,761 236,994 - Current liabilities: 686,256 481,758 - 1,168,014 3,173,450 9,869,337 Accounts payable 382,206 60,586 21,598 464,390 718,341 Accrued interest 19,823 8,202 3,203 31,228 - Unearned revenues - 304,343 2,706 307,049 - Current portion of noncurrent liabilities 180,273 135,586 - 315,859 6,352,701 Total current liabilities 582,302 508,718 27,507 1,118,527 7,071,041 Noncurrent liabilities: Compensated leave Net OPEB obligation Net pension liability 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 See notes to financial statements Totals may not add due to rounding 217,197 163,356 - 380,553 1,099,857 484,761 236,994 - 721,755 1,680,503 686,256 481,758 - 1,168,014 3,173,450 9,869,337 3,591,340 1,927,237 15,387,914 - 8 424 028 10,690,372 - - 10,690,372 (180,273) (135,586) - (315,859) (6,352,701) 21,767,650 4,337,862 1,927,237 28,032,749 8,025,138 22,349,952 4,846,579 1,954,744 29,151,276 15,096,179 36 Deschutes County, Oregon Proprietary Funds Statement of Net Position June 30, 2016 Enterprise Funds Fair & Expo Internal Solid Waste Center RV Park Total Service Funds DEFERRED INFLOWS OF RESOURCES Differences between contributions and proportionate share of contributions 44,095 30,955 - 75,050 203,908 Net difference (projected & actual earnings) 143,855 100,987 - 244,842 665,227 Total deferred inflows of resources 187,950 131,942 - 319,892 869,135 NET POSITION Net investment in capital assets 16,287,882 16,597,413 663,749 33,549,044 520,541 Restricted for debt service - 257,743 - 257,743 - Unrestricted (4,139,851) (463,507) 171,438 (4,431,920) 8,631,081 Total net position $ 12,148,031 $ 16,391,649 $ 835,187 $ 29,374,867 $ 9,151,622 See notes to financial statements Totals may not add due to rounding 37 Deschutes County, Oregon Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2016 OPERATING EXPENSES Personnel 2,617,931 Enterprise Funds - 4,209,838 11,553,126 Materials and services 3,616,325 Fair & Expo 274,950 5,790,559 Internal Landfill closure/postclosure care costs Solid Waste Center RV Park Total Service Funds OPERATING REVENUES 2,122,399 695,242 128,518 2,946,160 102,271 Charges for services $ 8,824,346 $ 2,500,139 $ 408,513 $ 11,732,998 $ 34,418,304 Miscellaneous 40,673 - - 40,673 - Total operating revenues 8,865,019 2,500,139 408,513 11,773,671 34,418,304 OPERATING EXPENSES Personnel 2,617,931 1,591,908 - 4,209,838 11,553,126 Materials and services 3,616,325 1,899,284 274,950 5,790,559 26,532,100 Landfill closure/postclosure care costs 546,199 - - 546,199 - Depreciation 2,122,399 695,242 128,518 2,946,160 102,271 Total operating expenses 8,902,854 4,186,434 403,467 13,492,756 38,187,498 Operating income (loss) NONOPERATING REVENUES (EXPENSES) (37,835) (1,686,295) 5,045 (1,719,085) (3,769,194) Grants - 53,667 - 53,667 - Property taxes - 2,555,831 - 2,555,831 - Investment earnings 82,662 8,856 3,157 94,674 233,515 Bond issuance costs - (3,323) - (3,323) - Interest expense (369,548) (100,873) (74,456) (544,877) - Total nonoperating revenues (expenses) (286,886) 2,514,157 (71,300) 2,155,971 233,515 Income (loss) before transfers (324,721) 827,862 (66,255) 436,886 (3,535,679) OTHER FINANCING SOURCES (USES) Transfers in - 648,654 191,316 839,970 1,789,249 Transfers out (326,539) - - (326,539) (464,260) Net other financing sources (uses) (326,539) 648,654 191,316 513,431 1,324,989 Change in net position (651,260) 1,476,515 125,062 950,317 (2,210,690) Net position - Beginning of year 12,799,293 14,915,134 710,125 28,424,552 11,362,312 Net position - End of year $ 12,148,033 $ 16,391,649 $ 835,187 $ 29,374,869 $ 9,151,622 See notes to financial statements Totals may not add due to rounding 38 Deschutes County, Oregon Proprietary Funds Statement of Cash Flows Year Ended June 30, 2016 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - 2,576,482 2,576,482 - Grants - 53,667 53,667 - Interfund loan repayments 481,878 - - 481,878 - Transfers in - 648,654 191,316 839,970 1,584,000 Transfers out (326,539) - - (326,539) (259,011) Net cash provided (used) by noncapital financing activities 155,339 3,278,802 191,316 3,625,457 1,324,989 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Enterprise Funds (21,841) - (6,708) Acquisition and construction of capital assets Fair & Expo (53,829) - Internal (337,991) Solid Waste Center RV Park Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Bond issuance costs - (3,323) - (3,323) Receipts from customers $ 8,807,186 $ 2,523,859 $ 411,219 $ 11,742,263 $ 34,395,608 Payments to employees (1,967,190) (1,157,097) - (3,124,287) (8,637,718) Payments to suppliers (3,645,290) (1,895,716) (270,533) (5,811,538) (24,594,536) Net cash provided (used) by operating activities 3,194,706 (528,954) 140,686 2,806,438 1,163,355 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - 2,576,482 2,576,482 - Grants - 53,667 53,667 - Interfund loan repayments 481,878 - - 481,878 - Transfers in - 648,654 191,316 839,970 1,584,000 Transfers out (326,539) - - (326,539) (259,011) Net cash provided (used) by noncapital financing activities 155,339 3,278,802 191,316 3,625,457 1,324,989 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES (35,864) (21,841) - (6,708) Acquisition and construction of capital assets (1,399,411) (53,829) - (1,453,240) (337,991) Proceeds from refunding debt 5,285,895 916,830 1,923,981 8,126,705 - Bond issuance costs - (3,323) - (3,323) - Principal paid on capital debt (5,820,132) (3,516,727) (2,067,595) (11,404,454) - Interest paid on capital debt (376,987) (148,230) (75,967) (601,184) - Net cash provided (used) by capital and related (528,954) $ 140,686 $ 2,806,438 $ 1,163,355 financing activities (2,310,635) (2,805,279) (219,582) (5,335,496) (337,991) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (982,044) 20,836 (90,566) (1,051,774) (2,218,373) Interest 69,545 8,120 2,489 80,154 197,253 Net cash provided (used) by investing activities (912,499) 28,956 (88,077) (971,620) (2,021,120) Net increase (decrease) in cash and cash equivalents 126,911 (26,476) 24,344 124,779 129,233 Balances - Beginning of year 1,605,806 211,611 20,514 1,837,931 5,183,777 Balances - End of year $ 1,732,716 $ 185,136 $ 44,857 $ 1,962,710 $ 5,313,010 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 operating accruals Receivables Prepaid expenses Defined benefit pension accounts (NPL,DOR & DIR) Accounts payable Claims payable Unearned revenues Compensated leave OPEB obligation Accrued closure / postclosure Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments See notes to financial statements Totals may not add due to rounding $ (37,835) $ (1,686,295) $ 5,045 $ (1,719,085) $ (3,769,194) 2,122,399 695,242 128,518 2,946,160 102,271 (57,833) 21,969 (35,864) (21,841) - (6,708) (6,708) (30,461) 578,423 406,078 - 984,502 2,664,754 (28,965) 8,162 4,417 (16,386) 31,184 - - - 1,936,842 - 1,750 2,706 4,456 (855) 17,359 13,752 - 31,110 85,453 54,958 17,095 72,054 165,201 546,199 - - 546,199 - $ 3,194,706 $ (528,954) $ 140,686 $ 2,806,438 $ 1,163,355 $ 4,010 $ 537 $ 53 $ 4,601 $ 39,661 39 Deschutes County, Oregon Statement of Assets and Liabilities Fiduciary Funds June 30, 2016 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Accounts receivable Total assets LIABILITIES Accounts payable Due to other governments Due to others Total liabilities See notes to financial statements Totals may not add due to rounding 40 Agency Fund $ 3,198,945 11,062,535 369,525 $ 14,631,005 $ 4,026,883 1,104,407 9,499,716 $ 14,631,005 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Note 1— Summary of Significant Accounting Policies A. Reporting Entity Deschutes County is a municipal corporation governed by three Commissioners, elected at -large. The accompanying financial statements present the activities of Deschutes County (the County), and its five (5) component units, entities for which the County is considered to be financially accountable and for which a financial benefit or burden exists. Blended component units, although legally separate entities, are, in substance, part of the County's operations. The Board of County Commissioners is the governing body for each component unit. Following is a brief description of each blended component unit included within the reporting entity. Countywide Law Enforcement District (District #1) — The District contracts with Deschutes County for law enforcement services that are provided to all County residents. Rural Law Enforcement District (District #2) — The District contracts with Deschutes County for patrol services in those portions of Deschutes County not serviced by city or special district law enforcement departments. Deschutes County 9-1-1 Service District— Operates the County 9-1-1 call center. Deschutes County Extension and 4-H Service District — Provides resources for support staff and a program coordinator for Oregon State University Extension Service. Sunriver Library County Service District — Established for the purpose of constructing a library and repaying the general obligation bonds issued to finance the cost of construction. As the final payment on the bond was made June 1, 2016, the District was dissolved on June 22, 2016. 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, financial control and have a financial benefit or burden. These districts are autonomous Oregon municipal corporations and are not considered component units of Deschutes County. B. Government -wide and Fund Financial Statements The government -wide financial statements, consisting of the Statement of Net Position and the Statement of Activities, report information on all non -fiduciary activities of the County and its component units. The effect of interfund activity has been removed from these statements, except where necessary to account for the cost of a program. Governmental activities, which are supported primarily by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 in separate columns in the fund financial statements. 41 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in financial statements. The government -wide 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. Non-exchange transactions, in which the County gives, or receives, value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements and donations. Grants and similar items are recognized as revenue if all eligibility requirements imposed by the provider have been met. The 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 after to pay liabilities of the current fiscal year. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the fiscal year. Expenditure - driven grants are recorded as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service, compensated absences, certain post -employment benefits, and claims and judgments expenditures are recorded at the time such payment is due. Capital asset transactions are reported as expenditures in governmental funds. Proceeds of general long-term debt and financing from capital leases are reported as other financing sources. Property taxes, transient room taxes, licenses and interest associated with the current fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. Only the portion of special assessments receivable, due within the current fiscal year, is considered to be susceptible to accrual as revenue of the current fiscal year. All other revenue items are considered to be measureable 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, deferred outflows of resources, liabilities, deferred inflows of resources, revenues and expenditures. Separate statements for each fund category — governmental, proprietary or fiduciary — are presented. The County also maintains certain additional sub -funds for its own specific management needs. These sub -funds are combined into the appropriate fund for financial statement purposes as required by accounting principles generally accepted in the United States of America. Major Funds Governmental Funds — the County reports the following major governmental funds: 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 corrections, patrol, investigations, records, search and rescue activities, court security, and administration. 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 payments made to Deschutes County, pursuant to an intergovernmental agreement, for countywide law enforcement services. 42 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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 payments made to Deschutes County, pursuant to an intergovernmental agreement for patrol services in those portions of Deschutes County not served by city or special service district law enforcement departments. Road. The financial resources, primarily Federal Forest Receipts, Federal Payment in Lieu of Taxes and State Motor Vehicle revenue, of the County's Road Department are used for the building, repair and maintenance of the County's roads, bridges, culverts, street lighting and drainage. 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. Health Services. The financial resources, primarily fees for services and grants from the State of Oregon and federal government, are used to provide public and mental health services and counseling. 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 property taxes to pay the debt service on the general obligation bonds. The bonds were issued in FY 1997 to finance the construction of the fairgrounds. Additionally, the County reports the following fund types: Internal service funds account for the building, administrative, county commission, 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 activities. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. General revenues include all taxes and investment earnings. Operating revenues and expenses are reported separately from non-operating items in the Proprietary Funds. Operating revenues and expenses generally result from providing services in connection with a proprietary fund's principal on-going operations. The principal operating revenues of the RV Park, Solid Waste and Fair & Expo Center are payments received from third parties for services. Operating expenses for the enterprise funds and internal service funds include the cost of providing services, administrative expenses and depreciation 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. 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 43 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources 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, 2016, based on market prices and include accrued interest. Earnings on the pooled monies are apportioned and credited to each fund monthly, based on the average daily balances of each participating fund. 2. Receivables and payables All trade and property tax receivables are shown net of an allowance for uncollectible amounts. Notes receivable 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. Inventories 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 and in the Fair & Expo Center Fund. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid expenses. 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) 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. As required by GASB 72, donated capital assets are recorded at acquisition value at the date of donation. Capital assets are depreciated using the straight-line method 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 44 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 5. Deferred outflows/ inflows of resources In addition to assets, the government -wide statement of net position and proprietary funds statement of net 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 County reports two items in this category — the deferred charge on refunding debt and the contributions to the PERS retirement plan made subsequent to the measurement date. In addition to liabilities, the government -wide statement of net position and/or the governmental funds balance sheets 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 future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Deferred inflows of resources, as a result of the accounting for the County's defined benefit retirement plans, are reported on the government -wide statement of net position and proprietary funds statement of net position. Deferred inflows of resources are reported on the governmental funds balance sheets as a result of reporting using the modified accrual method. The government funds report unavailable revenues from three sources: property taxes, special assessments and contracts of sale. These amounts are deferred and recognized as an inflow of resources in the period 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), 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 funds statement of net position and the government -wide statement of net position. 7. Pension plans For purposes of measuring the net pension liability (asset) and pension expense, information about the fiduciary net position of the Oregon Public Employee Retirement System cost-sharing multiple employer defined benefit pension plan (benefit plan) and additions to/deductions from the benefit plan's fiduciary net position have been determined on the same basis as they are reported by the benefit plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 8. 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. 9. 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. 10. 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. 45 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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. 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 next reduces committed amounts, followed by assigned amounts then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those restricted fund balance classifications could be used. Sometimes the County will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. 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' actual revenues and expenditures, the current year budget 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. 46 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 B. Funds with Negative Fund Balances / Negative Net Position Negative fund balance is reported in one nonmajor special revenue fund, Foreclosed Land Sales. Resources will be available in FY 2017 and it is projected that this fund will have a positive balance at June 30, 2017. Negative net position is reported in seven of the Internal Service Funds: Property and Facilities — $1,120,157, Administrative Services — $562,355, Board of County Commissioners - $116, 888, Finance $613,097, Legal — $195,363, Information Technology $1,063,786 and Insurance $1,107,358. For each of the funds listed above, with the exception of Insurance, such negative net position balances are due to (1) the recognition of the noncurrent liabilities and (2) recording the liabilities and deferred inflows of resources related to the application of GASB 68. It will be necessary to expend future resources to satisfy the noncurrent liabilities. The amortization in future periods of the deferred inflows of resources will increase net position. The premiums paid internally to the Insurance fund are set based on a long range average of claims experience. Events occurring in FY 2016 could result in claims expense in excess of the average. Resources will be provided to the Insurance Fund through a combination of increased premiums and a one-time transfer from reserves to return the net position to meet the County's fiscal fund balance requirement. 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, 2016 as follows: Insured (FDIC) $ 277,110 Collateralized by securities held by the pledging financial institution in the financial institution's name 6,245,530 Total Carrying value $ 6,522,640 $ 6,237,914 The amounts above include the County's investments in certificates of deposit and money market funds, which are reported as investments on the Statement of Net Position. 47 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Investments As of June 30, 2016, the County had the following investments and maturities: Weighted Average Maturity Investment Type Fair Value (Days) Federal Agency Securities Corporate notes Certificates of Deposit Municipal bonds Total fair value Accrued interest Investments, at fair value; plus accrued interest Local government investment pool $ 72,668,154 429 38,451,478 404 440,000 434 8,836,888 633 120,396,520 394,810 120,791,330 28,694,093 $ 149,485,422 Portfolio weighted average maturity 351 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 less than 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, 2016, 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. 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, $46,801,588 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, 2016, the County did not hold investments with any one issuer that exceeded these limits. 48 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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, 2016 as follows: Reconciliation of deposits and investments to the Statement of Net Position and Statement of Fiduciary Assets and Liabilities Total cash and cash equivalents $ 34,932,007 Total investments, at fair value plus accrued interest 120,791,329 Total cash and cash equivalents and investments $ 155,723,336 Included in the following captions: Statement of net position Total cash and cash equivalents $ 31,748,187 Total investments, at fair value; plus accrued interest 109,738,710 Total Statement of Net Position 141,486,897 Statement of Fiduciary Assets and Liabilities - Agency Funds Cash and cash equivalents 3,198,945 Investments 11,062,535 Total Fiduciary Funds 14,261,480 Total cash and cash equivalents and investments $ 155,748,377 GASB Statement No. 72, Fair Value Measurement and Application (GASB 72), specifies a hierarchy of valuation classifications based on whether the inputs to the valuation techniques used in each valuation classification are observable or unobservable. These classifications are summarized in three broad levels listed below: Level 1 — Unadjusted quoted prices for identical instruments in active markets. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risk and default rates). Level 3 — Valuations derived from valuation techniques in which significant inputs or significant valuation drivers are unobservable. 49 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Federal Agency Securities, Corporate Notes, and Municipal Bonds are categorized as Level 2 based upon a matrix pricing technique that values securities based on their relationship to benchmark quoted prices. June 30, 2016 Federal Agency Securities Corporate Notes Municipal Bonds Total assets B. Receivables Total $ 72,668,154 38,451,478 8,836,888 Quoted Prices in Active Markets (Level 1) Other Observable Unobservable Inputs Inputs (Level 2) (Level 3) $ 72,668,154 $ - 38,451,478 - 8,836,888 - $ 119,956,520 $ - $ 119,956,520 $ - 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 0.0% to 4.5%. Sales of real property have been financed by the County and these interest-bearing notes are amortized over periods ranging from ten to twenty years. Interest rates are fixed at the time of the initial transaction at then prevailing rates. At June 30, 2016, $3,931,133 is due on contracts from sales of real property and $1,401,863, net of allowance for uncollectible amounts of $318,890, 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. 50 Property Transient Notes and Taxes Room Taxes Total Taxes Accounts Contracts Assessments Receivable Receivable Receivable Receivable Receivable Receivable Total General Fund $ 661,074 $ - $ 661,074 $ 359,850 $ 4,426,092 $ - $ 5,447,016 Sheriff - - - 496 - - 496 Countywide Law Enforcement 496,693 - 496,693 171,444 - - 668,137 Rural Law Enforcement 227,775 - 227,775 219,227 - - 447,002 Road - - - 626,760 - 277,407 904,167 Deschutes County 9-1-1 180,679 - 180,679 380,155 - - 560,834 Health Services - - - 829,991 - - 829,991 Solid Waste - - - 662,033 - - 662,033 Fair & Expo Center 72,800 - 72,800 12,238 - - 85,038 Nonmajor and Internal Service 11,281 755,305 766,586 630,162 907,085 - 2,303,833 Total $ 1,650,302 $ 755,305 $ 2,405,607 $ 3,892,355 $ 5,333,176 $ 277,407 $ 11,908,545 The County holds promissory notes as a result of its lending and real estate sale activities. Loans are made to not-for-profit entities and bear interest at rates from 0.0% to 4.5%. Sales of real property have been financed by the County and these interest-bearing notes are amortized over periods ranging from ten to twenty years. Interest rates are fixed at the time of the initial transaction at then prevailing rates. At June 30, 2016, $3,931,133 is due on contracts from sales of real property and $1,401,863, net of allowance for uncollectible amounts of $318,890, 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. 50 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 C. Deferred outflows of resources The difference between the carrying value of refunded debt and its reacquisition price was deferred and is amortized on the straight- line basis over the period benefitted. The contributions made to OPERS during the year ended June 30, 2016 have been classified as a deferred outflow of resources. Governmental Business -Type Deferred Outflows of Resources Activities Activities Total Differences between expected and actual experience Changes in proportionate share Subtotal - Defined Benefit Plan Contributions subsequent to the measurement date $ 1,931,362 $ 62,985 $ 1,994,348 504,024 16,437 520,461 2,435,386 79,422 2,514,808 5,602,839 182,719 5,785,558 Deferred Outflows of Resources - Defined Benefit Plan 8,038,225 262,141 8,300,366 Deferred Charges on Refunding Debt HHS/BJCC (1998 COPS) County Buildings (FF&C 2003) Total Deferred Outflows of Resources 37,252 - 37,252 934,391 228,084 1,162,475 $ 9,009,867 $ 490,225 $ 9,500,092 51 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 D. Capital Assets Capital asset activity for the year ended June 30, 2016 was as follows: Governmental Activities Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Land improvements Equipment Vehicles Infrastructure Intangible assets Total capital assets, being depreciated 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 July 1, 2015 $ 13,637,072 2,391,520 16,028,592 88,348,699 4,853,416 23,255,627 7,911,710 95,467,833 4,840,767 224,678,052 (25,062,029) (2,460,965) (17,966,770) (5,853,933) (52,059,300) (3,766,365) (107,169,362) 117,508,690 $ 133,537,282 52 Increases 5,517,476 5,517,476 4,007,448 103,699 686,411 1,094,153 9,831,222 432,510 16,155,442 (2,362,760) (176,127) (1,270,533) (628,453) (3,809,266) (635,969) (8,883,107) 7,272,335 $ 12,789,811 Decreases $ (464,163) (3,833,940) (4,298,103) (947,889) (761,948) (551,569) (2,261,406) 10,039 739,786 548,244 1,298,068 (963,338) $ (5,261,441) June 30, 2016 $ 13,172,909 4,075,056 17,247,965 91,408,258 4,957,115 23,180,090 8,454,294 105,299,055 5,273,277 238,572,088 (27,414,750) (2,637,092) (18,497,517) (5,934,142) (55,868,566) (4,402,334) (114,754,401) 123,817,686 $ 141,065,652 Business -type activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Land improvements Equipment Vehicles Intangible assets Total capital assets, being depreciated 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 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 July 1, 2015 $ 1,924,037 4,181,779 6,105,816 32,496,282 34,512,659 6,954,674 313,330 87,429 74,364,374 (8,687,563) (16,208,525) (4,886,024) (199,095) (69,647) (30,050,854) 44,313,520 $ 50,419,336 Increases 192,905 192,905 3,464,551 873,978 Decreases (3,295,734) (3,295,734) (12,338) 4,338,528 (12,338) (729,974) (1,730,706) (453,752) (18,464) (13,263) (2,946,160) 1,392,369 $ 1,585,274 12,338 12,338 $ (3,295,734) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public safety County roads Health and welfare Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets Total depreciation expense - governmental activities Business -type activities: Solid waste Fair & Expo center RV Park Total depreciation expense - business -type activities 53 June 30, 2016 $ 1,924,037 1,078,950 3,002,987 32,496,282 37,977,210 7,816,314 313,330 87,429 78,690,564 (9,417,537) (17,939,231) (5,327,438) (217,559) (82,910) (32,984,676) 45,705,889 $ 48,708,876 $ 1,553,731 2,483,629 4,330,538 412,938 8,780,836 102,271 $ 8,883,107 $ 2,122,399 695,242 128,518 $ 2,946,160 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Operating Leases — County as Lessor of Real Property The County received $1,530,000 in lease rental revenue for the year ended June 30, 2016, and the County expects to receive approximately $7.4 million in lease rental income over the next 5 years under non -cancelable leases which were in effect at June 30, 2016. 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 $10.9 million as of June 30, 2016, and depreciation expense for Fiscal Year 2016 was $258,000. E. Interfund Activity Interfund Transfers: Transfers Out General Fund Sheriffs Office Health Services Nonrnajor governmental Solid Waste Internal Service Funds Total Transfers In Internal Health Nonmajor Service Fair & General Road Services governmental Funds RV Park Expo Center Total $ - $ - $ 4,143,877 445,740 464,492 281,260 1.191.492 1,000,000 326,539 $ 3,412,921 $ 1,606,249 $ 271,234 - 218,764 - 183,000 $ 300,000 191,316 348,654 $ 9,463,047 271,234 445,740 2,223,225 326,539 464,260 1.326.539 5 4.143.877 � 3.902.919 1.789.249 � 191.316 $ 648.654 13.194.046 Interfund transfers are utilized for the following purposes: Certain special revenue funds, 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 a special revenue fund to meet its debt service requirements. F. 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, 2016, was approximately $196,021. The future minimum lease payments for these leases are as follow: Fiscal Year Ending June 30, Amount 2017 $ 231,952 2018 183,262 2019 117,676 2020 25,930 $ 532,890 54 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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 were retired in July 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, 2016 General Obligation and Full Faith & Credit Obligation Bonds: Governmental activities 2.00-6.85% $ 28,340,315 Governmental activities - refunding 1.68-4.00% 21,443,053 Business -type activities - refunding 1.99-4.20% 15,228,947 $ 65,012,315 Notes Business -type activities Debt Refundings 5.00% $ 319,787 $ 65,332,102 In December 2015, the County issued $3,775,000 of full faith and credit refunding bonds, Refunding Series 2015, to provide resources to retire its Faith and Credit Series 2005 and its loan with Oregon Economic and Community Development Department. This refunding was undertaken to reduce the total debt service payments over the remaining life of the original bond and the loan by $378,328, for an economic gain of $342,246. In May 2016, the County issued $6,277,000 of full faith and credit refunding bonds, Refunding Series 2016, to provide resources to retire its Faith and Credit Series 2007. This refunding was undertaken to reduce the total debt service payments over the remaining life of the original bond by $1,073,591, for an economic gain of $861,157. W Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Changes in Long -Term Liabilities Changes in long-term obligations for the year ended June 30, 2016, are as follows: Business -tune activities: Full faith & credit obligations $13,033,210 $ 8,126,705 $ (8,525,968) $ 12,633,947 Due Within Unamortized prem / (disc) July 1, 2015 Increases Decreases June 30, 2016 One Year Governmental activities: 5,130,000 - (2,535,000) 2,595,000 2,595,000 Claims 117,000 - (117,000) - - Internal service funds $ 6,487,186 $18,359,473 $(16,422,631) $ 8,424,028 $ 5,489,669 Pension obligation bonds 10,535,949 - (300,634) 10,235,315 335,902 Full faith & credit obligations 42,151,790 1,925,295 (4,529,032) 39,548,053 2,559,255 Unamortized prem /(disc) 804,972 - (39,836) 765,136 43,199 General obligation bonds 90,000 - (90,000) - - Compensated absences Governmental funds 7,096,039 6,547,426 (6,056,331) 7,587,133 6,297,321 Internal service funds 1,014,404 652,002 (566,548) 1,099,857 912,881 $68,180,340 $27,484,195 $(28,005,012) $ 67,659,523 $15,638,226 Business -tune activities: Full faith & credit obligations $13,033,210 $ 8,126,705 $ (8,525,968) $ 12,633,947 $ 911,145 Unamortized prem / (disc) 166,829 - (7,861) 158,967 10,529 General obligation bonds 5,130,000 - (2,535,000) 2,595,000 2,595,000 Unamortized premiums 117,000 - (117,000) - - Compensated absences 349,443 281,296 (250,186) 380,553 315,859 Landfill closure and postclosure 10,144,173 546,199 - 10,690,372 - Notes payable 343,486 - (343,486) - - $29,284,140 $ 8,954,201 $(11,779,501) $ 26,458,840 $ 3,832,533 During Fiscal Year 2016, $6,873,065 was paid in compensated leave — $2,123,000 from Sheriff's Office, $1,577,000 from Health Services, $604,000 from General Fund, $380,000 from Road Department, $359,000 from Deschutes County 9-1-1, $383,000 from Juvenile Community Justice, $298,000 from Community Development, $296,000 from Adult Parole & Probation $566,000 from Internal Service Funds, $250,000 from enterprise funds and the remaining $37,000 from other special revenue funds. The claims liability is reported in two of the County's internal service funds — Risk Management and Health Benefits Fund. The liability will be liquidated by these funds. The resources to retire the pension obligation bonds are provided by charges to those operating departments with personnel. In FY 2016 the Sheriffs Office, Health Services, General, Internal Service Funds and Road funds provided 30%, 23%, 15%, 9% and 6%, respectively. The remaining 17% is provided by other governmental and proprietary funds. The Full faith and credit obligations are liquidated by third party rents, charges to departments occupying various buildings and general fund transfers. 56 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Debt Service Requirements Debt service requirements on the County bonds at June 30, 2016, are as follows: Fiscal Year 2017 2018 2019 2020 2021-2025 2026-2030 2031-2035 2036-2040 Total Governmental Activities Bonds & Notes Principal Interest $ 2,895,157 3,013,331 2,578,729 2,729,154 16,642,255 14,505,320 5,919,423 1,500,000 $ 49,783,368 G. Deferred Inflows of Resources $ 2,151,095 2,079,976 1,998,630 1,907,300 6,619,169 2,800,997 802,881 136,800 $ 18,496,849 Business -type Activities Bonds & Notes Principal Interest $ 3,506,145 931,829 951,110 969,061 5,157,645 2,732,580 980,578 $ 311,563 253,234 234,064 214,544 782,353 297,200 47,229 $ 15,228,947 $ 2,140,185 Governmental Funds Balance Sheet: Unavailable revenues are reported as deferred inflows of resources on the governmental funds balance sheet. These are revenues which are earned, but not available to liquidate liabilities of the current period. At the end of the current fiscal year, these balances are: Deferred Inflows of Resources Total Deferred Special Contracts of Inflows of Property Taxes Assessments Sale Resources General Fund $ 600,181 $ - $ 3,927,754 $ 4,527,935 Countywide LED 450,685 - - 450,685 Rural LED 206,783 - - 206,783 Road - 277,407 - 277,407 Deschutes County 9-1-1 164,325 - - 164,325 Nonmajor funds 10,282 - 3,559 13,841 Total Deferred Inflows of Resources $ 1,432,255 $ 277,407 $ 3,931,313 $ 5,640,975 Statement of Net Position: An acquisition of net position, applicable to a future reporting period, is reported as deferred inflows of resources on the Statement of Net Position. At the end of the current fiscal year, these balances, all related to pensions by the application of GASB 68 are: Net difference between projected and actual earnings on investments Differences between employer contributions and employer's proportionate share of system contributions Total Deferred Inflows of Resources 61FA Deferred Inflows of Resources Governmental Business -Type Activities Activities Total $ 7,507,777 $ 244,842 $ 7,752,619 2,301,316 75,050 2,376,366 $ 9,809,093 $ 319,892 $ 10,128,985 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 H. Fund Balance Constraints Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The County itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). Major Special Revenue Funds Assigned to: Public safety 1,418,587 - - - - - - - 1,418,587 General government 3,025,892 3,025,892 Technology Improvements 914,788 914,788 Fleet repair & replacement 951,878 951,878 Total Assigned 6,311,144 6,311,144 Unassigned: 10,620,333 10,620,333 Total Fund Balance $ 21,374,220 $ $ 5,840,997 $ 5,478,335 $ 17,671,267 $ 15,188,557 $ 16,514,200 $ 25,781,841 $ 107,849,417 The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the County's highest level of decision-making authority. The Board of County Commissioners is the highest level of decision-making authority for Deschutes County which can, by adoption of a resolution prior to the end of the fiscal year, commit a fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) or to remove or revise the limitation. LED#1, LED#2 and DC 9-1-1 are all special revenue funds funded through voter approved property taxes for their specific purposes. Funds balances restricted in LED #1 and LED #2 are not being restricted for specific purposes but rather exist for liquidity purposes due to the cyclical nature of property tax collections. Fund balances in the DC 9-1-1 fund are restricted to provide liquidity and to fund communication system improvements in FY 2017. Road fund balance is restricted to provide funding for the road improvement plan over the next five years. Health Services fund balance is restricted to meet the growing population of eligible clients expected in FY 2017 and beyond. 58 Countywide Law Rural Law Enforcement Enforcement Deschutes General Fund Sheriff District District Road County 9-1-1 Health Services Other Funds Total Fund Balances: Nonspendable: Long-term Notes Receivable $ 498337 $ - $ - $ - $ - $ - $ - $ 903,526 $ 1,401,863 Inventory 1,760,177 1,760,177 Total Nonspendable 498,337 1,760,177 903,526 3,162,040 Restricted to: Public safety - 5,840,997 5,478,335 - 15,188,557 - 1,519,793 28,027,681 Economic development - - - 1,164,211 1,164,211 Health services - - - - - - 16,514,200 457,814 16,972,015 General government - 5,523,979 5,523,979 Marketing & promotion - - - - - - - 500,661 500,661 Law library 438,053 438,053 Park Development and Rangeland - - - - - - - 774,623 774,623 Technology Improvements - - - - - - - 181,783 181,783 Road improvement and maintenance - - - - 15,911,090 - - 2,353,532 18,264,622 Debt Service Total Restricted 5,840,997 5,478,335 15,911,090 15,188,557 16,514,200 12,914,449 71,847,628 Committed to: Economic development 211,457 - - - - - - - 211,457 Economic stabilization - - - - - - - 10,321,178 10,321,178 Court activities 162,085 162,085 Health services 193,569 193,569 Debt Service - - - - - - - 472,561 472,561 Communication systems - - - - - - - 814,473 814,473 Expansion of facilities 3,732,948 3,732,948 Total Committed 3,944,405 11,963,866 15,908,272 Assigned to: Public safety 1,418,587 - - - - - - - 1,418,587 General government 3,025,892 3,025,892 Technology Improvements 914,788 914,788 Fleet repair & replacement 951,878 951,878 Total Assigned 6,311,144 6,311,144 Unassigned: 10,620,333 10,620,333 Total Fund Balance $ 21,374,220 $ $ 5,840,997 $ 5,478,335 $ 17,671,267 $ 15,188,557 $ 16,514,200 $ 25,781,841 $ 107,849,417 The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the County's highest level of decision-making authority. The Board of County Commissioners is the highest level of decision-making authority for Deschutes County which can, by adoption of a resolution prior to the end of the fiscal year, commit a fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) or to remove or revise the limitation. LED#1, LED#2 and DC 9-1-1 are all special revenue funds funded through voter approved property taxes for their specific purposes. Funds balances restricted in LED #1 and LED #2 are not being restricted for specific purposes but rather exist for liquidity purposes due to the cyclical nature of property tax collections. Fund balances in the DC 9-1-1 fund are restricted to provide liquidity and to fund communication system improvements in FY 2017. Road fund balance is restricted to provide funding for the road improvement plan over the next five years. Health Services fund balance is restricted to meet the growing population of eligible clients expected in FY 2017 and beyond. 58 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Amounts in the assigned fund balance classification are intended to be used by the County for specific purposes but do not meet the criteria to be classified as committed. The Board of County Commissioners has, by resolution, assigned fund balance as it does when appropriating fund balance for the difference between estimated revenues and appropriations in the subsequent year's adopted budget. Unlike commitments, assignments generally exit only temporarily. Additional action does not have to be taken to remove an assignment. Fund balances, as listed in aggregate in the Statement of Revenues, Expenditures and Changes in Fund Balance, are constrained to the balance classification and activities of the funds. Constraints are at the level of which the fund was originally established. The County has activity between funds for various purposes. Any balances outstanding at year end are reported as due from / to other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Balances between the funds included in the governmental activities, the governmental and internal service funds, are eliminated so that only the net amount is included as internal balances in the governmental activities column on the Statement of Net Position. Similarly, balances between the funds included in the business -type activities, the enterprise funds, are eliminated so that only the net amount is included as internal balances in the business -type activities column on the Statement of Net Position. Certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as Transfers In / Out. While reported in fund financial statements, certain eliminations are made in the preparation of the government -wide Statement of Activities. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Transfer between the funds in business -type activities are eliminated so that only the net amount is included as transfers in the business -type activities column. L Segment Information The County has three enterprise activities. 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, refunded in 2002 and in 2012, to finance the construction of the facility and the reserves for future capital needs. The final payment on the general obligation bond will occur effective December 1, 2016. In order to maintain a higher 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. 59 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 All operations of the County participate in the County's self-insurance program, with the exception of Deschutes County 9-1-1 County Service District. That District is covered under only the medicaUdental plan and unemployment insurance. Settled claims have not exceeded insurance coverage in any of the past three fiscal years. The County estimates liabilities for incurred losses on both reported and unreported claims for general and vehicle/fleet liability, workers' compensation and employee medical coverage. Workers' compensation, general and vehicle/fleet liability estimates are 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. Payments, from the funds whose activities are covered, are made to internal service insurance funds, based on the estimated need to pay prior and current claims and to accumulate resources for future losses. The Insurance fund, which accounts for all insurance programs other than medical and dental, is reporting a negative net position as of June 30, 2016 of $1,107,358. The net position of the Health Benefits fund (medical/dental) at June 30, 2016, is $11,924,570 which is 80% of Fiscal Year 2016 claims expense. Changes in the Insurance Funds' claim liabilities are as follows: Claims payable, June 30, 2014 FY 2015 claims expense FY 2015 claims paid Claims payable, June 30, 2015 FY 2016 claims expense FY 2016 claims paid Claims payable, June 30, 2016 B. Contingent Liabilities and Commitments Insurance Health Benefits Total Paid Through June 30, 2016 Balance $ 2,804,317 $ 1,390,590 $ 4,194,907 322,154 $ 161,077 Roads 2,730,686 15,106,413 17,837,099 1,100,614 14,444,205 15,544,820 1,317,119 901,717 415,403 $ 4,434,389 $ 2,052,797 $ 6,487,186 133,873 78,125 2,403,431 15,956,043 18,3 59,473 969,101 15,453,530 16,422,631 $ 5,868,719 $ 2,555,309 $ 8,424,028 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, 2016, the County had $1,220,948 material commitments outstanding. Project Contractor Total Contract Paid Through June 30, 2016 Balance Radio financing Motorola $ 483,231 $ 322,154 $ 161,077 Roads High Desert Aggregate 1,617,773 1,051,430 566,343 Powell Butte Roundabout Shamrock NW 1,317,119 901,717 415,403 Compost Facility Relocation Robinson & Owen 211,998 133,873 78,125 60 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 C. Participation in Public Employees Retirement System Plan descriptions: Employees of the County are provided with pensions through the Oregon Public Employees Retirement System, (OPERS), which is a cost-sharing multiple -employer defined benefit plan. All the benefits of OPERS are established by the Oregon legislature pursuant to Oregon Revised Statute (ORS) Chapters 238 and 238A. The ORS Chapter 238 Defined Benefit Pension Plan, known as Tier 1/Tier 2 is closed to new members hired on or after August 29, 2003. A second program, the Chapter 238A-OPERS Pension Program (OPSRP-DB), is described in the second portion of this note. Membership in the programs is delineated based on date of hire. OPERS issues a publicly available financial report which can be obtained at http://www.oregon.gov/pers/Pages/section/financial reports/financials.aspx. Benefits Provided Under the Programs 61 Chapter 238 -Tier One and Tier Two Chapter 238A-OPERS Pension Program (OPSRP- DB Pension The OPERS retirement allowance is payable monthly for life. The ORS 238A Defined Benefit Pension Program Benefits The allowance may be selected from 13 retirement benefit provides benefits to members hired on or after August options. These options include survivorship benefits and 29, 2003. This portion of the OPSRP provides a life lump -sum refunds. The basic benefit is based on years of pension funded by employer contributions. Benefits service and final average salary. A percentage (2.0 percent for are calculated with the following formula for members police and fire employees, 1.67 percent for general service who attain normal retirement age: employees) is multiplied by the number of years of service and the final average salary. Benefits may also be calculated Police and fire: 1.8 percent is multiplied by the under a formula plus an annuity (for members who were number of years of service and the final average contributing before August 21, 1981,) or a money match salary. Normal retirement age for police and fire computation if a greater benefit results. members is age 60 or age 53 with 25 years of retirement credit. To be classified as a police or fire member, the individual must have been employed continuously as a police or fire member for at least five years immediately preceding retirement. General service: 1.5 percent is multiplied by the number of years of service and the final average salary. Normal retirement age for general service members is 65, or age 58 with 30 years of retirement credit. A member of the pension program becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, and, if the pension program is terminated, the date on which termination becomes effective. 61 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Contributions OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulated sufficient assets to pay benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other Postemployment Benefit Plans. Ultimate authority for setting and changing the laws governing contributions rests with the Oregon legislature. Employer contribution rates during the period were based on the December 31, 2011 actuarial valuation, which became effective July 1, 2013. The state of Oregon and certain schools, community colleges, and political subdivisions have made unfunded actuarial liability payments, and their rates have been reduced. Employer contributions for the year ended June 30, 2016 were $5,785,558, excluding amounts to fund employer specific liabilities. The rates, presented as a percentage of covered payroll, for the County in effect for the fiscal year ended June 30, 2016 were: Chapter 238 -Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 12.71% 7.33% Police and Fire 16.58% 11.44% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the County reported a liability of $36,983,685 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2013 and rolled forward to June 30, 2015. The County's proportion of the net pension liability was based on the County's projected long-term contribution effort as compared to the total projected long-term contribution effort of all employers. Rates of every employer have at least two major components: 1. Normal Cost Rate: The economic value, stated as a percent of payroll, for the portion of each active member's total projected retirement benefit that is allocated to the upcoming year of service. The rate is in effect for as long as each member continues in OPERS-covered employment. The current value of all projected future Normal Cost Rate contributions is the Present Value of Future Normal Costs (PVFNC). The PVFNC represents the portion of the projected long-term contribution effort related to future service. 62 Chapter 238 -Tier One and Tier Two Chapter 238A-OPERS Pension Program (OPSRP- DB Disability A member with 10 or more years of creditable service A member who has accrued 10 or more years of Benefits who becomes disabled from other than duty -connected retirement credits before the member becomes causes may receive a non -duty disability benefit. A disabled or a member who becomes disabled due to disability resulting from a job -incurred injury or illness job-related injury shall receive a disability benefit of qualifies a member (including OPERS judge members) 45 percent of the member's salary determined as the for disability benefits regardless of the length of last full month of employment before the disability OPERS-covered service. Upon qualifying for either a occurred. non -duty or duty disability, service time is computed to age 58 (55 for police and fire members) when determining the monthly benefit. Benefit Members may choose to continue participation in a No ability to change. Changes after variable equities investment account after retiring and Retirement may experience annual benefit fluctuations due to changes in the market value of equity investments. Cost of Living Under ORS 23 8.3 60 monthly benefits are adjusted Under ORS 238Z.210 monthly benefits are adjusted Adjustments annually through cost -of -living changes (COLA). The annually through cost -of -living changes. The cap on cap on the COLA in Fiscal Year 2016 and beyond will the COLA in Fiscal Year 2016 and beyond will vary vary based on the amount of the annual benefit. based on the amount of the annual benefit. Contributions OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulated sufficient assets to pay benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other Postemployment Benefit Plans. Ultimate authority for setting and changing the laws governing contributions rests with the Oregon legislature. Employer contribution rates during the period were based on the December 31, 2011 actuarial valuation, which became effective July 1, 2013. The state of Oregon and certain schools, community colleges, and political subdivisions have made unfunded actuarial liability payments, and their rates have been reduced. Employer contributions for the year ended June 30, 2016 were $5,785,558, excluding amounts to fund employer specific liabilities. The rates, presented as a percentage of covered payroll, for the County in effect for the fiscal year ended June 30, 2016 were: Chapter 238 -Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 12.71% 7.33% Police and Fire 16.58% 11.44% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the County reported a liability of $36,983,685 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2013 and rolled forward to June 30, 2015. The County's proportion of the net pension liability was based on the County's projected long-term contribution effort as compared to the total projected long-term contribution effort of all employers. Rates of every employer have at least two major components: 1. Normal Cost Rate: The economic value, stated as a percent of payroll, for the portion of each active member's total projected retirement benefit that is allocated to the upcoming year of service. The rate is in effect for as long as each member continues in OPERS-covered employment. The current value of all projected future Normal Cost Rate contributions is the Present Value of Future Normal Costs (PVFNC). The PVFNC represents the portion of the projected long-term contribution effort related to future service. 62 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 2. UAL Rate: If system assets are less than the actuarial liability, an Unfunded Actuarial Liability (UAL) exists. UAL can arise in a biennium when an event such as experience differing from the assumptions used in the actuarial valuation occurs. An amortization schedule is established to eliminate the UAL that arises in a given biennium over a fixed period of time if future experience follows assumptions. The UAL Rate is the upcoming year's fixed component of the cumulative amortization schedules, stated as a percent of payroll. The employer's PVFNC depends on both the normal cost rates charged on the employer's payrolls, and on the underlying demographics of the respective payrolls. For OPERS funding, employers have up to three different payrolls, each with a different normal cost rate: (1) Tier 1/Tier 2 payroll, (2) OPSRP general service payroll, and (3) OPSRP police and fire payroll. Since many governments in Oregon have sold pension obligation bonds and deposited the proceeds with OPERS (referred to as side accounts or transitional liability or surplus), adjustments are required. After each employer's projected long-term contribution effort is calculated, that amount is reduced by the value of the employer's side account, transitional liability/surplus, and the pre-SLGRP liability/surplus (if any). This is done as those balances increase/decrease the employer's projected long-term contribution effort because side accounts are effectively pre -paid contributions. Looking at both rate components, the projected long-term contribution effort is the sum of the PVFNC and UAL. The PVFNC part of the contribution effort pays for the value of future service while the UAL part of the contribution effort pays for the value of past service not already funded by accumulated contributions and investment earnings. Each of the two contribution effort components are calculated at the employer -specific level. The sum of these components across all employers is the total projected long-term contribution effort. At June 30, 2016, the County's proportion was 0.64415108 percent. For the year ended June 30, 2016, the County recognized a pension expense of $36,199,255. At June 30, 2016, the County reports deferred outflows of resources and deferred inflows of resources related to pensions from the following sources as shown in footnote 3.0 and 3.I. Net difference between projected and actual earnings on investments Changes in proportion and differences between employer contributions and proportionate share of contributions Contributions made to the defined benefit plan subsequent to measurement date Differences between expected and actual experience Changes in employer proportion Total 63 Deferred Deferred Inflows of Outflows of Resources Resources $ 7,752,619 2,376,366 5,785,558 1,994,348 520,461 $ 10,128,985 $ 8,300,367 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 The County's contributions made subsequent to the measurement date will be recognized in the County's pension expense in the following year. The net amount of the County's remaining deferred outflows of resources and deferred inflows of resources that will be recognized in the County's pension expense in the subsequent five years in the aggregate are shown in the table below. 1st Fiscal Year - Fiscal Year 2017 $ (3,696,131) 2nd Fiscal Year - Fiscal Year 2018 (3,696,131) 3rd Fiscal Year - Fiscal Year 2019 (3,696,131) 4th Fiscal Year - Fiscal Year 2020 3,410,229 5th Fiscal Year - Fiscal Year 2021 63,987 Total $ (7,614,177) Actuarial Assumptions: The employer contribution rates effective July 1, 2015, through June 30, 2017, were set using the entry age normal actuarial cost method. For the Tier One / Tier Two component of the OPERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), and (2) an amount for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with new unfunded actuarial accrued liabilities being amortized over 20 years. For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an employer contribution rate consisting of (a) an amount for the normal cost (the estimated amount necessary to finance benefits earned by the employees during the current service year), (b) an actuarially determined amount for funding a disability benefit component, and (c) an amount for the amortization of unfunded actuarially accrued liabilities, which are being amortized over a fixed period with new unfunded actuarially accrued liabilities being amortized over 16 years. A summary of the economic assumptions used for the December 31, 2013 actuarial valuation are shown below: Assumption December 31, 2013 Valuation Inflation (other than healthcare) 2.75% Real wage growth Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in accordance with Moro decision; blend based on service Payroll growth 3.75% Regular investment return 7.75% Variable account investment return 8.25% OPSRP administrative expenses $5.5 million/year Healthcare cost inflation rates ■ 2013 rate ■ Ultimate inflation rate ■ Year reaching ultimate rate 8.00% 4.70% 2083 64 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Actuarial valuations of an on-going plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31st of even numbered years. The experience study used to develop assumptions and estimates for the December 2012 actuarial valuation upon which the GASB 68 reporting data is based was adopted on September 18, 2013. Mortality assumptions are shown in the table below. Assumptions December 31 2013 Valuation Healthy Annuitant Mortality RP2000 Generational, Combined Active / Healthy Annuitant, Sex Distinct ■ School District male No collar, set back 24 months ■ Other General Service male (and male beneficiary) Blended 25% blue collar, set back 12 months ■ Police & Fire male Blended 25% blue collar, set back 12 months ■ School District female White collar, set back 24 months ■ Other female (and female beneficiary) White collar, no setback Disabled Retiree Mortality ■ Male RP 2000 Static, Disabled, No Collar, Sex distinct 65% of Disabled table ■ Female 90% of Disabled table Non -Annuitant Mortality Fixed Percentage of Healthy Annuitant Mortality ■ School District male 70% ■ Other General Service male 85% ■ Police & Fire male 95% ■ School District female 60% ■ Other female 55% 65 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 The long-term expected rate of return on plan investments was developed based on the forward looking capital market economic model. The table below presents the assumptions related to asset allocation and expected rates of return by major asset class using the 50' percentile. The target allocation and best estimates of arithmetic real rates of return for each major class are summarized in the following table: Asset Class Core Fixed Income Short -Term Bonds Intermediate -Term Bonds High Yield Bonds Large Cap US Equities Mid Cap US Equities Small Cap US Equities Developed Foreign Equities Emerging Market Equities Private Equity Hedge Funds/Absolute Return Real Estate (Property) Real Estate (REITS) Commodities Portfolio - Gross of Expenses Portfolio - Net of Expenses Discount Rate Target Allocation 7.20% 8.00% 3.00% 1.80% 11.65% 3.88% 2.27% 14.21% 5.49% 20.00% 5.00% 13.75% 2.50% 1.25% 100.00% 100.00% Compound Annual Arithmetic Standard Annual Return Return Deviation 4.50% 3.70% 4.10% 6.66% 7.20% 7.30% 7.45% 6.90% 7.40% 8.26% 6.01% 6.51% 6.76% 6.07% 7.62% 7.57% 4.70% 3.76% 4.23% 7.21% 8.60% 9.38% 10.38% 8.73% 11.51% 11.95% 6.46% 7.27% 8.41% 7.71% 8.39% 8.34% 6.60% 3.45% 5.15% 11.10% 17.90% 22.00% 26.40% 20.55% 31.70% 30.00% 10.00% 13.00% 19.45% 19.70% 13.01% 13.01% The discount rate used to measure the total pension liability was 7.75 percent for the Defined Benefit Pension Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the County's Proportionate share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the County's proportionate share of the net pension liability (asset) calculated using the discount rate of 7.75 percent, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage point lower (6.75 percent) or 1 -percentage point higher (8.75 percent) than the current rate: 1% Decrease Discount Rate 1 % Increase (6.75%) (7.75%) (8.75%) Proportionate share of Net Pension Liability (Asset) $ 89,258,748 $ 36,983,685 $ (7,070,459) Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS financial report that can be found at htip://www.oregon.gov/pers. 66 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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. 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 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs 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 Note 4.0 above. Other Post -Employment Benefits (OPEB) - 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 and Deschutes County 9-1-1 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. 67 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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 costs 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: Annual required contribution $ 3,482,307 Interest on the net OPEB obligation 550,666 Adjustment to the ARC (936,486) Annual OPEB expense 3,096,487 Estimated contributions (1,168,575) Increase in net OPEB obligation 1,927,912 Net OPEB obligation, beginning of year 18,355,546 Net OPEB obligation, end of year $ 20,283,458 The County's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for Fiscal Year 2016 was as follows: Fiscal Year Ending Percentage of Annual Annual OPEB Cost Contributions OPEB Cost Contributed Net OPEB Obligation June 30, 2014 $ 3,900,481 $ 1,000,496 25.65% $ 16,457,565 June 30, 2015 2,991,089 1,093,108 36.55% 18,355,546 June 30, 2016 3,096,487 1,168,575 37.74% 20,283,458 Funded Status and Funding Progress. As of June 30, 2016, the most recent actuarial valuation date, the Plan was considered unfunded. The actuarial accrued liability for benefits was $33,599,537, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $33,599,537. Of these amounts, $13,496,354 related to the Subsidized Health Plan and $20,103,183 related to the Self -Pay Health Plan. The covered payroll (annual payroll of active employees covered by the Plan) was $57,523,175 and the ratio of the UAAL to the covered payroll was 58.4%. 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 on the following page, 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. 68 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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 8.5% for Fiscal Year 2016, reducing to 5% over a 10 year period; a retiree health claims annual trend rate of 9.5% for Fiscal Year 2016, reducing to 5.0% over an 11 year period; and retirement rates used by Oregon PERS adjusted for County trends. The unfunded actuarial liability as of June 30, 2016, 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. 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 $19,122,808, 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 of 63.9% usage of Knott Landfill (7,987,500 cubic yards used of 12,500,000 cubic yards available). Through June 30, 2016, $13,434,693 has been recognized as expense, $2,744,321 has been paid and $10,690,373 is reported as a liability at June 30, 2016. Based on current estimated costs, an additional $5,688,115 will be recognized as closure and postclosure expense through 2029, the date the landfill is currently projected to be filled to capacity. For the past several years, the County has designated resources for future closure and postclosure care and it anticipates continuing to do so. The County meets the "Local Government Financial Test'' which provides financial assurance as to the County's ability to meet its financial obligations for closure and postclosure. 69 Unfunded UAAL as a Actuarial (Overfunded) Percentage Actuarial Actuarial Accrued AAL Funded Covered of Covered Valuation Value of Liability (AAL) (UAAL) Ratio Payroll Payroll Date Assets a (b) (b -a) (a/b) (c) (b -a/c) 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% June 30, 2015 - 32,004,383 32,004,383 0.00% 57,844,601 55.33% 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 $19,122,808, 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 of 63.9% usage of Knott Landfill (7,987,500 cubic yards used of 12,500,000 cubic yards available). Through June 30, 2016, $13,434,693 has been recognized as expense, $2,744,321 has been paid and $10,690,373 is reported as a liability at June 30, 2016. Based on current estimated costs, an additional $5,688,115 will be recognized as closure and postclosure expense through 2029, the date the landfill is currently projected to be filled to capacity. For the past several years, the County has designated resources for future closure and postclosure care and it anticipates continuing to do so. The County meets the "Local Government Financial Test'' which provides financial assurance as to the County's ability to meet its financial obligations for closure and postclosure. 69 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 F. Fund Structure The County maintains certain additional sub -funds for specific management needs. These sub -funds are consolidated into the appropriate fund for financial reporting purposes as required by generally accepted accounting principles. Major Funds — Governmental General Fund — accounts for the financial operations of the County which are not accounted for in any other fund. Principal sources of revenues are property taxes and revenues from the State of Oregon and Federal government. Expenditures are primarily for general government activities including assessment, taxation, district attorney, 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. 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. 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 and Transfers In. Resources are transferred to debt service funds and used to acquire real property for use by the County. General County Projects — property taxes and inter -fund building rentals for upgrades, remodels and major maintenance projects of existing County real property. General Capital Reserve — available resources designated for building remodel and future major maintenance of County buildings. Community Justice - Juvenile — state grants and fees for juvenile delinquency programs within the County. Code Abatement — available resources for enforcement of County solid waste and sanitation codes. Vehicle Maintenance and Replacement — transfers from 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. The resources of the sub -fund were merged into the primary fund and the fund was inactived effective June 30, 2016. Rural Law Enforcement District (District #2) — property taxes, charges for services, Federal and State grants for public safety in rural areas. Sub -fund of Rural Law Enforcement District: Rural Law Enforcement District — Capital Reserve — available resources reserved for major capital purchases. The resources of the sub -fund were merged into the primary fund and the fund was inactivated effective June 30, 2016. FTI Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Road — State gas tax apportionment and Federal payments for building and maintaining public roads and highways. Sub -fund of Road: 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. Health Services— fees for services, Federal and State grants for community wide health care, mental health services and counseling. Major Funds — Proprietary — Enterprise Solid Waste — fees and charges for services for the operation, maintenance, closure and postclosure monitoring of the County's sanitary landfill and transfer and recycle stations. Fair & 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 Justice Court — fines, fees and General Fund transfers 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. 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 and General Fund transfers for providing assistance to crime victims. 71 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 Law Library — State shared revenues for operating a law library. County Clerk Records — fees for upgrading storage and retrieval systems. Early Learning Hub — 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. Deschutes County 9-1-1 County Service District assumed the responsibility for the radio system during the fiscal year. The assets of this fund were transferred to the District. This fund was inactivated effective June 30, 2016. Communications System Reserve — payments from law enforcement districts which will be used for replacement of the countywide communication system. Community Development — fees and charges for services for planning, building safety, education and public services. Sub -fund of Community Development Community Development Reserve — Transfer from Community Development to create a reserve for economic stability. CDD Building Program Reserve — Transfer from Community Development for use in CDD's building inspection activities. CDD Building Improvement Reserve — Transfer from Community Development to create a reserve for the maintenance of CDD's facilities. 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. 72 Deschutes County, Oregon Notes to Financial Statements June 30, 2016 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. Debt Service Funds Full Faith and Credit Debt Service Fund — long-term operating lease payments, inter -fund rents and inter -fund transfers for debt service payments on bonds issued for remodel and acquisition of real property, purchase of long-lived personal property and funding of pension liability. Sunriver Library County Service District General Obligation — property taxes for debt service on bonds issued to build a public library in Sunriver. The final debt service payment was made on June 1, 2016 and this fund has been inactivated effective June 30, 2016. Capital Project Fund Resources from inter -fund transfers to remodel and upgrade existing properties. 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 Property and Facilities — interfund charges for custodial, repairs and maintenance for County facilities. Administrative Services — interfund charges for services provided by County administration. Board of County Commissioners — interfund charges for services provided by the County's commissioners. Finance — interfund charges for services provided by Finance Department. Finance Reserve — interfund charges for purchase of financial software. Legal — interfund charges for services provided by Legal Department. Human Resources — interfund charges for services provided by 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 — interfund charges for medical and dental insurance. 73 Required Supplementary Information June 30, 2016 Deschutes County, Oregon Deschutes County, Oregon Schedule of Proportionate Share of the Net Pension Liability (Asset) Oregon Public Employees Retirement System Last 10 Fiscal Years* Proportionate share of the net pension liability (asset) as a percentage of its covered -employee payroll N/A N/A N/A N/A N/A N/A N/A 58.78% 25.25% Plan fiduciary net position as a percentage of the total pension liability N/A N/A N/A N/A N/A N/A N/A 91.97% 103.59% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year was determined as of 6/30. See notes to required supplementary information Totals may not add due to rounding ►167 63.94% 88.43% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Proportion of the net pension liability (asset) N/A N/A N/A N/A N/A N/A N/A 0.61% 0.61% 0.64% Proportionate share of the net pension liability (asset) N/A N/A N/A N/A N/A N/A N/A $31,325,022 $(13,913,943) $36,983,685 Covered -employee payroll N/A N/A N/A N/A N/A N/A N/A 53,294,382 55,105,388 57,844,601 Proportionate share of the net pension liability (asset) as a percentage of its covered -employee payroll N/A N/A N/A N/A N/A N/A N/A 58.78% 25.25% Plan fiduciary net position as a percentage of the total pension liability N/A N/A N/A N/A N/A N/A N/A 91.97% 103.59% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year was determined as of 6/30. See notes to required supplementary information Totals may not add due to rounding ►167 63.94% 88.43% See notes to required supplementary information Totals may not add due to rounding 76 Deschutes County, Oregon Schedule of Employer Contributions Oregon Public Employees Retirement System Last 10 Fiscal Years* 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Contractually required contributions N/A N/A N/A N/A N/A N/A N/A N/A $ 5,012,940 $ 5,785,558 Contributions in relation to the contractually required contribution N/A N/A N/A N/A N/A N/A N/A N/A 5,012,940 5,785,558 Contribution deficiency (excess) N/A N/A N/A N/A N/A N/A N/A N/A - - County's covered -employee payroll N/A N/A N/A N/A N/A N/A N/A N/A 57,844,601 59,448,532 Contributions as a percentage of covered -employee payroll N/A N/A N/A N/A N/A N/A N/A N/A 8.67% 9.73% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year was determined as of 6/30. See notes to required supplementary information Totals may not add due to rounding 76 Deschutes County, Oregon General Fund Operations Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2016 District Attorney Personnel services Budgeted Amounts 5,025,512 4,762,948 262,564 Materials and services 1,058,859 1,058,859 Variance with 2,132 Original Budget Final Budget Actual Final Budget REVENUES Total District Attorney 6,135,871 6,135,871 5,819,675 Local Tax Taxes -property $ 24,638,450 $ 24,638,450 $ 25,115,897 $ 477,447 Licenses and permits 33,800 33,800 34,400 600 Fines, forfeitures and penalties - - 90 90 Investment earnings 120,000 120,000 146,332 26,332 Rents - - 98 98 Charges for services 1,651,820 1,651,820 1,834,644 182,824 Intergovernmental State 2,622,897 2,650,118 2,816,147 166,029 Federal 500,000 500,000 501,486 1,486 Total revenues 29,566,967 29,594,188 30,449,095 854,907 EXPENDITURES General government Assessor Personnel services 3,254,482 3,184,482 2,954,751 229,731 Materials and services 870,717 940,717 902,863 37,854 Capital outlay 100 100 - 100 Total Assessor 4,125,299 4,125,299 3,857,613 267,686 Clerk / Elections Personnel services 811,092 811,092 802,648 8,444 Materials and services 813,524 813,524 644,674 168,850 Capital outlay 100 100 - 100 Total Clerk / Elections 1,624,716 1,624,716 1,447,322 177,394 Board of Property Tax Appeals Personnel services 47,031 48,031 47,434 597 Materials and services 18,503 17,503 14,477 3,026 Capital outlay 100 100 - 100 Total Board of Prop Tax Appeals 65,634 65,634 61,911 3,723 District Attorney Personnel services 5,025,512 5,025,512 4,762,948 262,564 Materials and services 1,058,859 1,058,859 1,056,727 2,132 Capital outlay 51,500 51,500 - 51,500 Total District Attorney 6,135,871 6,135,871 5,819,675 316,196 Tax Personnel services 452,278 452,278 380,172 72,106 Materials and services 413,135 413,135 371,146 41,989 Capital outlay 100 100 - 100 Total Tax 865,513 865,513 751,319 114,194 See notes to required supplementary information Totals may not add due to rounding Continued 77 Deschutes County, Oregon General Fund Operations Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Year Ended June 30, 2016 Property Management Personnel services Budgeted Amounts 253,952 227,938 26,014 Materials and services 55,862 60,862 57,179 Variance with Capital outlay Original Final Actual Amounts Final Budget EXPENDITURES (Continued) 289,914 314,914 285,116 29,798 Veteran's Services 14,659,369 14,737,190 13,718,030 Personnel services 284,842 284,842 238,294 46,548 Materials and services 103,837 131,058 95,451 35,607 Capital outlay 100 100 - 100 Total Veteran's Services 388,779 416,000 333,745 82,255 Property Management Personnel services 233,952 253,952 227,938 26,014 Materials and services 55,862 60,862 57,179 3,683 Capital outlay 100 100 - 100 Total Property Management 289,914 314,914 285,116 29,798 Non -Departmental Materials and services 1,163,543 1,189,143 1,161,328 27,815 Capital outlay 100 100 - 100 Total Non -Departmental 1,163,643 1,189,243 1,161,328 27,915 Total general government 14,659,369 14,737,190 13,718,030 1,019,160 Operating contingency 8,424,710 7,671,886 - 7,671,886 Total expenditures 23,084,079 22,409,076 13,718,030 8,691,046 Excess of revenues over expenditures 6,482,888 7,185,112 16,731,066 9,545,954 See notes to required supplementary information Totals may not add due to rounding Continued 78 Deschutes County, Oregon General Fund Operations Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Year Ended June 30, 2016 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget OTHER FINANCING SOURCES (USES) Transfers in 438,360 438,360 240,000 (198,360) Transfer out: District Attorney (10,980) (10,980) (8,235) 2,745 Property Management (3,660) (3,660) (2,745) 915 Non -Departmental (15,537,408) (15,537,408) (15,523,693) 13,715 Total other financing sources (uses) (15,113,688) (15,113,688) (15,294,673) (180,985) Net change in fund balance (8,630,800) (7,928,576) 1,436,392 9,364,968 Fund balance - Beginning of year 8,630,800 8,630,800 9,871,908 1,241,108 Fund balance - End of year $ - $ 702,224 11,308,301 $ 10,606,076 Adjustment to generally accepted accounting principles (GAAP) basis: Economic Development 442,405 Court Technology Reserve 161,384 Assessment & Taxation Reserve 753,404 Humane Society of Redmond (214,488) Project Development 1,621,844 General County Projects 1,109,132 General Capital Reserve 3,732,948 Community Justice Juvenile 1,418,587 Code Abatement 88,825 Vehicle Maintenance & Replacement 951,878 Fund balance - US GAAP Basis $ 21,374,220 See notes to required supplementary information Totals may not add due to rounding W Deschutes County, Oregon Deschutes County Sheriff's Office Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Intergovernmental Local $ 43,358,911 $ 43,358,911 $ 36,172,611 $ (7,186,300) Total revenues 43,358,911 43,358,911 36,172,611 (7,186,300) EXPENDITURES Personnel services 29,213,507 29,228,817 28,363,174 865,643 Materials and services 6,705,637 6,887,637 6,525,558 362,079 Capital outlay 868,231 1,059,944 1,012,645 47,299 Total 36,787,375 37,176,398 35,901,377 1,275,021 Operating contingency 6,299,920 5,910,897 - 5,910,897 Total expenditures 43,087,295 43,087,295 35,901,377 7,185,918 Excess (deficiency) of revenues over expenditures 271,616 271,616 271,234 (382) Other financing sources (uses) Transfers out (271,616) (271,616) (271,234) 382 Total other financing sources (uses) (271,616) (271,616) (271,234) 382 Net change in fund balance - - - - Fund balance - Beginning of year - - - - Fund balance - End of year $ - $ - $ - $ - See notes to required supplementary information Totals may not add due to rounding 80 Deschutes County, Oregon Countywide Law Enforcement District Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Year Ended June 30, 2016 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 SOURCES (USES) Transfers out Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 20,140,313 $ 20,140,313 $ 20,444,517 $ 304,204 401,000 401,000 367,831 (33,169) 40,000 40,000 83,755 43,755 180,272 180,272 287,632 107,360 66,058 66,058 37,585 (28,473) 5,000 5,000 12,532 7,532 118,225 118,225 145,814 27,589 2,187,517 2,187,517 2,362,230 174,713 - - 12,008 12,008 23,138,385 23,138,385 23,753,904 615,519 27,654,824 27,654,824 22,706,418 4,948,406 27,654,824 27,654,824 22,706,418 4,948,406 (4,516,439) (4,516,439) 1,047,486 5,563,925 (100,000) (100,000) (4,616,439) (4,616,439) - 100,000 1,047,486 5,663,925 4,616,439 4,616,439 4,793,510 177,071 $ - $ - $ 5,840,997 $ 5,840,997 See notes to required supplementary information Totals may not add due to rounding 81 Deschutes County, Oregon Rural Law Enforcement District Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2016 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 Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 9,000,959 $ 9,000,959 $ 9,077,925 $ 76,966 151,500 151,500 156,799 5,299 21,000 21,000 65,524 44,524 10,000 10,000 85,290 75,290 - - 10,932 10,932 22,000 22,000 42,460 20,460 3,876,527 3,876,527 3,931,134 54,607 262,000 262,000 313,141 51,141 123,500 123,500 134,555 11,055 13,467,486 13,467,486 13,817,759 350,273 15,904,087 15,904,087 11,541,533 4,362,554 15,904,087 15,904,087 11,541,533 4,362,554 (2,436,601) (2,436,601) 2,276,226 4,712,827 OTHER FINANCING SOURCES (USES) Transfers out (100,000) (100,000) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year (2,536,601) (2,536,601) - 100,000 2,276,226 4,812,827 2,536,601 2,536,601 3,202,108 665,507 $ - $ - $ 5,478,335 $ 5,478,335 See notes to required supplementary information Totals may not add due to rounding 82 Deschutes County, Oregon Road Department Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Year Ended June 30, 2016 REVENUES Local Special assessments Investment earnings Rents Charges for services 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) Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 120,000 $ 120,000 $ 85,439 $ (34,561) 80,000 80,000 175,189 95,189 - - 957 957 1,262,925 1,262,925 1,5 88,991 326,066 902,000 902,000 728,980 (173,020) 12,043,572 12,043,572 13,090,735 1,047,163 2,700,000 2,700,000 2,696,522 (3,478) 17,108,497 17,108,497 18,366,813 1,258,316 5,704,814 5,764,308 5,668,320 95,988 10,846,101 10,846,101 8,559,502 2,286,599 8,503,257 8,503,257 1,605,077 6,898,180 25,054,172 25,113,666 15,832,899 9,280,767 2,079,334 2,019,840 27,133,506 27,133,506 (10,025,009) (10,025,009) 15,832,899 2,533,915 2,019,840 11,300,607 12,558,924 Transfers in 1,326,539 1,326,539 1,326,539 - Transfers out (600,000) (600,000) (600,000) - Total other financing sources (uses) 726,539 726,539 726,539 - Net change in fund balance (9,298,470) (9,298,470) 3,260,454 12,558,924 Fund balance - Beginning of year 9,298,470 9,298,470 13,378,247 4,079,777 Fund balance - End of year $ - $ - 16,638,701 $ 16,638,701 Adjustment to generally accepted accounting principles (GAAP) basis: Road Building and Equipment Fund balance - US GAAP Basis See notes to required supplementary information Totals may not add due to rounding 83 1,032,566 $ 17,671,267 Deschutes County, Oregon Deschutes County 9-1-1 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Taxes - property Investment earnings Charges for services Intergovernmental Local 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 Total other financing sources (uses) Net change in fund balance $ 7,040,000 $ 7,040,000 $ 7,227,499 $ 187,499 43,000 43,000 97,757 54,757 897,441 897,441 875,173 (22,268) 389,089 389,089 399,205 10,116 786,000 1,064,000 878,609 (185,391) 9,155,530 9,433,530 9,478,243 44,713 6,336,511 6,336,511 5,066,537 1,269,974 2,335,766 2,595,766 2,727,787 (132,021) 450,000 5,971,091 1,821,228 4,149,863 9,122,277 14,903,368 9,615,552 5,287,816 4,883,253 4,903,253 - 4,903,253 14,005,530 19,806,621 9,615,552 10,191,069 (4,850,000) (10,373,091) (137,309) 200,000 5,723,091 5,723,091 200,000 5,723,091 5,723,091 (4,650,000) (4,650,000) 5,585,782 10,235,782 10,235,782 Fund balance - Beginning of year 4,650,000 4,650,000 5,018,966 368,966 Fund balance - End of year $ - $ - $ 10,604,748 $ 10,604,748 Adjustment to generally accepted accounting principles (GAAP) basis: Deschutes County 9-1-1 Equipment Reserve 4,583,809 Fund balance - US GAAP Basis $ 15,188,557 See notes to required supplementary information Totals may not add due to rounding 84 Deschutes County, Oregon Health Services Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2016 REVENUES Local Licenses and permits Investment earnings Rents 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, Behavioral Health Consolidation of Health Services funds Public Health Public Health Reserve Fund OHP - Mental Health Services Acute Care Services OHP - Alcohol / Drug Services Fund balance - Beginning of year Health Services Fund balance - End of year See notes to required supplementary information Totals may not add due to rounding Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 147,200 $ 147,200 $ 138,599 $ (8,601) 118,600 118,600 174,836 56,236 18,800 18,800 5,375 (13,425) 3,406,625 3,406,625 2,432,627 (973,998) 168,196 189,805 254,165 64,360 127,000 127,000 487,578 360,578 24,361,307 25,301,541 26,787,409 1,485,868 368,964 493,964 466,642 (27,322) 28,716,692 29,803,535 30,747,231 943,696 23,318,123 24,262,540 22,494,050 1,768,490 13,510,155 14,117,432 12,040,082 2,077,350 300 210,840 213,459 (2,619) 36,828,578 38,590,812 34,747,592 3,843,220 10,467,553 10,317,162 - 10,317,162 47,296,131 48,907,974 34,747,592 14,160,382 (18,579,439) (19,104,439) (4,000,362) 15,104,077 4,371,464 4,371,464 4,143,877 (227,587) (1,723,327) (1,198,327) (445,740) 752,587 2,648,137 3,173,137 3,698,137 525,000 (15,931,302) (15,931,302) (302,225) 15,629,077 4,040,201 1,780,910 338,455 6,655,769 971,019 3,030,071 16,212,562 16,212,562 16,816,425 603,863 $ 281,260 $ 281,260 $ 16,514,200 $ 16,232,940 85 Deschutes County, Oregon Notes to Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) June 30, 2016 Note 1— Adjustments from Budgetary Basis of Accounting to GAAP The County has certain governmental funds maintained for budgetary purposes that do not meet the definition of Special Revenue Funds for GAAP reporting purposes. At year-end, the ending fund balances for these funds are combined with the General Fund, Countywide Law Enforcement District, Rural Law Enforcement District, Road Department Fund, and Deschutes County 9-1-1 County Service District, as applicable. Note 2 — Stewardship, Compliance and Accountability The Board of County Commissioners adopts a resolution authorizing appropriations for each fund, which establishes the level by which expenditures cannot lawfully exceed appropriations. Appropriations are established at the principal object level for each department of the General Fund — personnel services, materials and services, capital outlay, debt service, transfers to other funds and operating contingency. For all other funds, the appropriations are established at the principal object level. 86 Other Supplementary Information June 30, 2015 Deschutes County, Oregon Combining and Individual Funds Statements and Schedules — Major Governmental Funds and Sub -Funds June 30, 2015 Deschutes County, Oregon Totals may not add due to rounding Continued 87 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2016 General Court Assessment Fund Economic Technology & Taxation Operations Development Reserve Reserve ASSETS Cash and cash equivalents $ 3,035,318 $ 52,142 $ 36,200 $ 168,994 Investments, at fair value; plus accrued interest 10,492,618 180,316 125,185 584,410 Taxes receivable 641,317 - - - Accounts receivable 240,486 - - - Notes and contracts receivable - 230,947 - - Due from other funds 481,878 - - - Total assets $ 14,891,617 $ 463,405 $ 161,384 $ 753,404 LIABILITIES Accounts payable $ 930,336 $ 21,000 $ - $ - Due to other funds - - - Deposits 3,832 - - - Unearned revenue 2,066,905 - - - Total liabilities 3,001,073 21,000 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 582,244 - - - Unavailable revenue - contracts of sale - - - - Total deferred inflows of resources 582,244 - - - FUND BALANCES Nonspendable - 230,947 - - Committed - 211,457 - - Assigned 206,090 - 161,384 753,404 Unassigned 11,102,211 - - - Total fund balances 11,308,301 442,405 161,384 753,404 Total liabilities, deferred inflows of resources and fund balances $ 14,891,617 $ 463,405 $ 161,384 $ 753,404 Totals may not add due to rounding Continued 87 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2016 Humane General General Society Project County Capital of Redmond Development Projects Reserve ASSETS Cash and cash equivalents $ - $ 360,058 $ 287,416 $ 837,325 Investments, at fair value; plus accrued interest - 1,245,147 993,938 2,895,623 Taxes receivable - - 19,757 - Accounts receivable - 21,892 - - Notes and contracts receivable 267,390 3,927,754 - - Due from other funds - - - - Total assets $ 267,390 $ 5,554,852 $ 1,301,111 $ 3,732,948 LIABILITIES Accounts payable $ - $ 5,253 $ 174,043 $ - Due to other funds 481,878 - - - Deposits - - - - Unearned revenue - - - - Total liabilities 481,878 5,253 174,043 - DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes - - 17,937 - Unavailable revenue - contracts of sale - 3,927,754 - - Total deferred inflow of resources - 3,927,754 17,937 - FUND BALANCES Nonspendable 267,390 - - - Committed - - - 3,732,948 Assigned - 1,621,844 1,109,132 - Unassigned (481,878) - - - Total fund balances (214,488) 1,621,844 1,109,132 3,732,948 Total liabilities, deferred inflows of resources and fund balances $ 267,390 $ 5,554,852 $ 1,301,111 $ 3,732,948 Totals may not add due to rounding Continued 88 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2016 Community Vehicle Justice Code Maintenance & Juvenile Abatement Replacement Total ASSETS Cash and cash equivalents $ 306,085 $ 19,924 $ 218,871 $ 5,322,332 Investments, at fair value; plus accrued interest 1,058,323 68,901 756,895 18,401,357 Taxes receivable - - - 661,074 Accounts receivable 97,472 - - 359,850 Notes and contracts receivable - - - 4,426,092 Due from other funds - - - 481,878 Total assets $ 1,461,880 $ 88,825 $ 975,766 $ 29,652,582 LIABILITIES Accounts payable $ 43,293 $ - $ 23,888 $ 1,197,813 Due to other funds - - - 481,878 Deposits - - - 3,832 Unearned revenue - - - 2,066,905 Total liabilities 43,293 - 23,888 3,750,428 DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes - - - 600,181 Unavailable revenue - contracts of sale - - - 3,927,754 Total deferred inflow of resources - - - 4,527,935 FUND BALANCES Nonspendable - - - 498,337 Committed - - - 3,944,405 Assigned 1,418,587 88,825 951,878 6,311,144 Unassigned - - - 10,620,333 Total fund balances 1,418,587 88,825 951,878 21,374,220 Total liabilities, deferred inflows of resources and fund balances $ 1,461,880 $ 88,825 $ 975,766 $ 29,652,582 Totals may not add due to rounding 89 Deschutes County, Oregon Deschutes County Road Department — Operating Fund & Sub -Fund Combining Balance Sheet June 30, 2016 Totals may not add due to rounding 90 Road Dept Road Bldg Operating and Equip Fund Fund Total ASSETS Cash and cash equivalents $ 3,581,234 $ 281,606 $ 3,862,841 Investments, at fair value; plus accrued interest 12,380,584 973,845 13,354,430 Accounts receivable 626,760 - 626,760 Assessments receivable 277,407 - 277,407 Inventory 1,760,177 - 1,760,177 Total assets $ 18,626,163 $ 1,255,451 $ 19,881,614 LIABILITIES Accounts payable $ 1,710,055 $ 222,885 $ 1,932,940 Unearned revenue - - - Total liabilities 1,710,055 222,885 1,932,940 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments 277,407 - 277,407 Total deferred inflows of resources 277,407 - 277,407 FUND BALANCES Nonspendable 1,760,177 - 1,760,177 Restricted 14,878,524 1,032,566 15,911,090 Total fund balances 16,638,701 1,032,566 17,671,267 Total liabilities, deferred inflows of resources and fund balances $ 18,626,163 $ 1,255,451 $ 19,881,614 Totals may not add due to rounding 90 Deschutes County, Oregon Deschutes County 9-1-1 County Service District — Operating Fund & Sub -Fund Combining Balance Sheet June 30, 2016 Deschutes County 9-1-1 Des Co 9-1-1 Operating Equipment Fund Reserve Total ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Total assets LIABILITIES Accounts payable Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Restricted Total fund balances Total liabilities, deferred inflow of resources and fund balances Totals may not add due to rounding 91 $ 2,372,646 8,205,041 180,679 380,155 $ 11,138,521 $ 369,448 369,448 $ 1,028,179 3,555,630 $ 4,583,809 $ 3,400,825 11,760,671 180,679 380,155 $ 15,722,330 $ - $ 369,448 - 369,448 164,325 - 164,325 164,325 - 164,325 10,604,748 4,583,809 15,188,557 10,604,748 4,583,809 15,188,557 $ 11,138,521 $ 4,583,809 $ 15,722,330 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding Continued 92 General Court Assessment Fund Economic Technology & Taxation Operations Development Reserve Reserve REVENUES Taxes - property $ 25,115,897 $ - $ - $ - Licenses and permits 34,400 - - - Fines, forfeitures and penalties 90 - - - Investment earnings 146,332 8,385 1,554 7,443 Rents 98 - - - Intergovernmental 3,317,634 - - - Charges for services 1,834,644 - - - Contributions and donations - - - - Payments on contracts of sale - - - - Other - - - - Total revenues 30,449,095 8,385 1,554 7,443 EXPENDITURES Current: General government 13,384,285 152,680 1,818 - Public safety - - - - Health and welfare 333,745 - - - Capital outlay - - - - Total expenditures 13,718,030 152,680 1,818 - Excess (deficiency) of revenues over expenditures 16,731,066 (144,295) (264) 7,443 OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in 240,000 200,000 - - Transfers out (7,868,399) - - - Intra -fund: Transfers in - - 32,000 100,000 Transfers out (7,666,274) - - - Total other financing sources and uses (15,294,673) 200,000 32,000 100,000 Net change in fund balances 1,436,392 55,705 31,736 107,443 Fund balances - Beginning of year 9,871,908 386,699 129,648 645,961 Fund balances - End of year $ 11,308,301 $ 442,405 $ 161,384 $ 753,404 Totals may not add due to rounding Continued 92 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding Continued 93 Humane General General Society Project County Capital of Redmond Development Projects Reserve REVENUES Taxes - property $ - $ - $ 784,413 $ - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 2,367 174,618 11,010 30,430 Rents - 464,329 - - Intergovernmental - - - - Charges for services - - 1,354,452 - Contributions and donations - - - - Payments on contracts of sale - 326,424 - - Other - 530,579 - - Total revenues 2,367 1,495,951 2,149,875 30,430 EXPENDITURES Current: General government - 203,440 581,402 - Public safety - - - - Health and welfare - - - - Capital outlay - - 1,716,426 - Total expenditures - 203,440 2,297,828 - Excess (deficiency) of revenues over expenditures 2,367 1,292,511 (147,952) 30,430 OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in - 300,000 - - Transfers out - (1,379,648) (120,000) - Intra -fund: Transfers in - - - 2,055,043 Transfers out - - - - Total other financing sources and uses - (1,079,648) (120,000) 2,055,043 Net change in fund balances 2,367 212,863 (267,952) 2,085,473 Fund balances - Beginning of year (216,855) 1,408,981 1,377,085 1,647,475 Fund balances - End of year $ (214,488) $ 1,621,844 $ 1,109,132 $ 3,732,948 Totals may not add due to rounding Continued 93 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding 94 Community Vehicle Justice Code Maintenance & Juvenile Abatement Replacement Total REVENUES Taxes - property $ - $ - $ - $ 25,900,311 Licenses and permits - - - 34,400 Fines, forfeitures and penalties 6,347 - - 6,437 Investment earnings 15,450 968 10,501 409,059 Rents 33,759 - - 498,186 Intergovernmental 603,825 - - 3,921,459 Charges for services 110,294 - - 3,299,391 Contributions and donations 165 - - 165 Payments on contracts of sale - - - 326,424 Other - - 32,049 562,628 Total revenues 769,840 968 42,549 34,958,460 EXPENDITURES Current: General government - 10,185 166,546 14,500,356 Public safety 6,120,344 - - 6,120,344 Health and welfare - - - 333,745 Capital outlay - - 347,650 2,064,076 Total expenditures 6,120,344 10,185 514,196 23,018,521 Excess (deficiency) of revenues over expenditures (5,350,504) (9,217) (471,647) 11,939,939 OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in - - 451,492 1,191,492 Transfers out - - (95,000) (9,463,047) Intra -fund: Transfers in 5,464,591 - 18,300 7,669,934 Transfers out (3,660) - - (7,669,934) Total other financing sources and uses 5,460,931 - 374,792 (8,271,555) Net change in fund balances 110,427 (9,217) (96,855) 3,668,384 Fund balances - Beginning of year 1,308,160 98,042 1,048,732 17,705,836 Fund balances - End of year $ 1,418,587 $ 88,825 $ 951,878 $ 21,374,220 Totals may not add due to rounding 94 Deschutes County, Oregon Countywide Law Enforcement District — Operating Fund & Sub -Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Operating Reserve Fund Fund 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 Net change in fund balances Fund balance - Beginning of year Fund balances - End of year Totals may not add due to rounding 95 Total $ 20,444,517 $ - $ 20,444,517 367,831 - 367,831 83,755 2,103 85,859 287,632 - 287,632 2,520,052 - 2,520,052 37,585 - 37,585 12,532 - 12,532 23,753,904 2,103 23,756,008 22,706,418 632,484 23,338,902 22,706,418 632,484 23,338,902 1,047,486 (630,381) 417,105 4,793,510 630,381 5,423,891 $ 5,840,997 $ - $ 5,840,997 Deschutes County, Oregon Rural Law Enforcement District — Operating Fund & Sub -Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Operating Reserve Fund Fund Total REVENUES Taxes - property $ 9,077,925 $ - $ 9,077,925 Fines, forfeitures and penalties 156,799 - 156,799 Investment earnings 65,524 4,962 70,486 Intergovernmental 4,378,830 - 4,378,830 Charges for services 85,290 - 85,290 Contributions and donations 10,932 - 10,932 Other 42,460 - 42,460 Total revenues 13,817,759 4,962 13,822,722 EXPENDITURES Current: Public safety 11,541,533 1,492,176 13,033,709 Total expenditures 11,541,533 1,492,176 13,033,709 Net change in fund balances 2,276,226 (1,487,214) 789,013 Fund balances - Beginning of year 3,202,108 1,487,214 4,689,322 Fund balances - End of year $ 5,478,335 $ - $ 5,478,335 Totals may not add due to rounding 96 Deschutes County, Oregon Deschutes County Road Department — Operating Fund & Sub -Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 REVENUES Special assessments Investment earnings Rents Intergovernmental Charges for services Total revenues EXPENDITURES Current: County roads Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 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 Totals may not add due to rounding Road Dept Road Bldg Operating and Equip Fund Fund Total $ 85,439 $ - $ 85,439 175,189 11,730 186,919 957 - 957 16,516,237 - 16,516,237 1,588,991 - 1,588,991 18,366,813 11,730 18,378,543 14,227,822 23,055 14,250,877 1,605,077 431,484 2,036,561 15,832,899 454,539 16,287,437 2,533,915 (442,809) 1,326,539 2,091,106 1,326,539 600,000 600,000 (600,000) - (600,000) 726,539 600,000 1,326,539 3,260,454 157,191 3,417,645 13,378,247 875,375 14,253,622 $ 16,638,701 $ 1,032,566 $ 17,671,267 Deschutes County, Oregon Deschutes County 9-1-1 County Service District — Operating Fund & Sub -Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Deschutes County 9-1-1 Des Co 9-1-1 Operating Equipment Fund Reserve Total REVENUES Local Taxes - property Investment earnings Charges for services Intergovernmental Local State Federal 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 Totals may not add due to rounding 98 $ 7,227,499 $ - $ 7,227,499 97,757 75,884 173,642 875,173 - 875,173 399,205 - 399,205 878,609 - 878,609 9,478,243 75,884 9,554,127 7,794,324 - 7,794,324 1,821,228 - 1,821,228 9,615,552 - 9,615,552 (137,309) 75,884 (61,425) 5,723,091 - 5,723,091 - (5,723,091) (5,723,091) 5,723,091 (5,723,091) - 5,585,782 (5,647,207) (61,425) 5,018,966 10,231,015 15,249,982 $ 10,604,748 $ 4,583,809 $ 15,188,557 Deschutes County, Oregon Economic Development (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 700 $ 700 $ 8,385 $ 7,685 Loan repayments 40,000 40,000 - (40,000) Total revenues 40,700 40,700 8,385 (32,315) EXPENDITURES Materials and services 183,700 383,700 152,680 231,020 Total expenditures 183,700 383,700 152,680 231,020 Excess (deficiency) of revenues over expenditures (143,000) (343,000) (144,295) 198,705 OTHER FINANCING SOURCES (USES) Appropriation transfer - 200,000 - (200,000) Transfer in - - 200,000 200,000 Net other financing sources (uses) - 200,000 200,000 - Net change in fund balance (143,000) (143,000) 55,705 198,705 Fund balance - Beginning of year 143,000 143,000 386,699 243,699 Fund balance - End of year $ - $ - $ 442,405 $ 442,405 Totals may not add due to rounding 99 Totals may not add due to rounding 100 Deschutes County, Oregon Court Technology Reserve (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 1,554 $ 1,554 Total revenues - - 1,554 1,554 EXPENDITURES Materials and services 80,000 80,000 1,818 78,182 Capital outlay 20,000 20,000 20,000 Total expenditures 100,000 100,000 1,818 98,182 Excess (deficiency) of revenues over expenditures (100,000) (100,000) (264) 99,736 OTHER FINANCING SOURCES (USES) Transfers in 32,000 32,000 32,000 - Net change in fund balance (68,000) (68,000) 31,736 99,736 Fund balance - Beginning of year 110,000 110,000 129,648 19,648 Fund balance - End of year $ 42,000 $ 42,000 $ 161,384 $ 119,384 Totals may not add due to rounding 100 Deschutes County, Oregon Assessment and Taxation Reserve (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Total revenues EXPENDITURES Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year $ 5,500 $ 5,500 $ 7,443 $ 1,943 5,500 5,500 7,443 1,943 5,500 5,500 7,443 1,943 100,000 100,000 100,000 - 100,000 100,000 100,000 - 105,500 105,500 107,443 1,943 645,000 645,000 645,961 961 $ 750,500 $ 750,500 $ 753,404 $ 2,904 Totals may not add due to rounding 101 Deschutes County, Oregon Humane Society of Redmond (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Loan repayment Total revenues EXPENDITURES Debt Service Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year $ - $ - $ 2,367 $ 2,367 530,000 530,000 - (530,000) 530,000 530,000 2,367 (527,633) 530,000 530,000 - 530,000 530,000 530,000 - 530,000 - - 2,367 2,367 - - (216,855) (216,855) $ - $ - $ (214,488) $ (214,488) Totals may not add due to rounding 102 Deschutes County, Oregon Project Development Fund (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Investment earnings Rentals Payments on contracts of sale Other Total revenues EXPENDITURES Materials and services Capital outlay Total Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 73,157 $ 73,157 $ 174,618 $ 101,461 452,842 452,842 464,329 11,487 - - 326,424 326,424 - - 530,579 530,579 525,999 525,999 1,495,951 969,952 over expenditures 66,007 66,007 25,000 304,000 203,440 100,560 50,000 50,000 - 50,000 75,000 354,000 203,440 150,560 Operating contingency 384,992 105,992 - 105,992 Total expenditures 459,992 459,992 203,440 256,552 Excess (deficiency) of revenues over expenditures 66,007 66,007 1,292,511 1,226,504 OTHER FINANCING SOURCES (USES) Appropriation transfer - - - - Transfers in 300,000 300,000 300,000 - Transfer out (1,404,337) (1,404,337) (1,379,648) 24,689 Net other financing sources (uses) (1,104,337) (1,104,337) (1,079,648) 24,689 Net change in fund balance (1,038,330) (1,038,330) 212,863 1,251,193 Fund balance - Beginning of year 1,278,000 1,278,000 1,408,981 130,981 Fund balance - End of year $ 239,670 $ 239,670 $ 1,621,844 $ 1,382,174 Totals may not add due to rounding 103 Deschutes County, Oregon General County Projects (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 EXPENDITURES Materials and services Budgeted Amounts 595,936 581,402 14,534 Capital outlay 1,240,000 Variance with 1,716,426 Original Budget Final Budget Actual Final Budget REVENUES 2,297,828 81,108 Operating contingency Local 692,064 - 692,064 Taxes - property $ 770,000 $ 770,000 $ 784,413 $ 14,413 Investment earnings 11,000 11,000 11,010 10 Charges for services - - 1,354,452 1,354,452 Total revenues 781,000 781,000 2,149,875 1,368,875 EXPENDITURES Materials and services 645,936 595,936 581,402 14,534 Capital outlay 1,240,000 1,783,000 1,716,426 66,574 Total 1,885,936 2,378,936 2,297,828 81,108 Operating contingency 1,185,064 692,064 - 692,064 Total expenditures 3,071,000 3,071,000 2,297,828 773,172 Excess (deficiency) of revenues over expenditures (2,290,000) (2,290,000) (147,952) 2,142,048 OTHER FINANCING SOURCES (USES) Transfers in 1,050,000 1,050,000 - (1,050,000) Transfers out (220,000) (220,000) (120,000) 100,000 Total other financing sources (uses) 830,000 830,000 (120,000) (950,000) Net change in fund balance (1,460,000) (1,460,000) (267,952) 1,192,048 Fund balance - Beginning of year 1,460,000 1,460,000 1,377,085 (82,915) Fund balance - End of year $ - $ - $ 1,109,132 $ 1,109,132 Totals may not add due to rounding 104 Deschutes County, Oregon General Capital Reserve (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Original Budget Final Budget Actual Variance with Final Budget $ 5,000 $ 5,000 $ 30,430 $ 25,430 5,000 5,000 30,430 25,430 650,000 650,000 650,000 650,000 (645,000) (645,000) 30,430 2,055,043 2,055,043 2,055,043 _ 2,055,043 2,055,043 2,055,043 1,410,043 1,410,043 2,085,473 1,645,000 1,645,000 1,647,475 $ 3,055,043 $ 3,055,043 $ 3,732,948 $ Totals may not add due to rounding 105 650,000 650,000 675,430 675,430 2,475 677,905 Deschutes County, Oregon Community Justice - Juvenile (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Intergovernmental Local State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency $ 6,050 $ 6,050 $ 6,347 $ 297 7,000 7,000 15,450 8,450 7,200 7,200 33,759 26,559 61,100 61,100 110,294 49,194 800 800 165 (635) 20,000 20,000 20,000 - 551,764 551,764 583,825 32,061 653,914 653,914 769,840 115,926 5,319,157 1,153,324 100 6,472,581 913,588 5,319,157 1,193,324 100 6,512,581 873,588 4,947,639 371,518 1,172,705 20,619 - 100 6,120,344 392,237 - 873,588 Total expenditures 7,386,169 7,386,169 6,120,344 1,265,825 Excess (deficiency) of revenues over expenditures (6,732,255) (6,732,255) (5,350,504) 1,381,751 OTHER FINANCING SOURCES (USES) Transfers in 5,464,591 5,464,591 5,464,591 - Transfers out (3,660) (3,660) (3,660) - Total other financing sources (uses) 5,460,931 5,460,931 5,460,931 - Net change in fund balance (1,271,324) (1,271,324) 110,427 1,381,751 Fund balance - Beginning of year 1,271,324 1,271,324 1,308,160 36,836 Fund balance - End of year $ - $ - $ 1,418,587 $ 1,418,587 Totals may not add due to rounding 106 Deschutes County, Oregon Code Abatement (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 600 $ 600 $ 968 $ 368 Total revenues 600 600 968 368 EXPENDITURES Materials and services 98,300 98,300 10,185 88,115 Total expenditures 98,300 98,300 10,185 88,115 Net change in fund balance (97,700) (97,700) (9,217) 88,483 Fund balance - Beginning of year 97,700 97,700 98,042 342 Fund balance - End of year $ - $ - $ 88,825 $ 88,825 Totals may not add due to rounding 107 Deschutes County, Oregon Vehicle Maintenance and Replacement (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Investment earnings Sale of equipment Total revenues EXPENDITURES 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 Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 5,000 $ 5,000 $ 10,501 $ 5,501 - - 32,049 32,049 5,000 5,000 42,549 37,549 95,000 95,000 166,546 (71,546) 400,000 400,000 347,650 52,350 495,000 495,000 514,196 (19,196) 878,925 878,925 - 878,925 1,373,925 1,373,925 514,196 859,729 (1,368,925) (1,368,925) (471,647) 897,278 449,056 449,056 469,792 20,736 (95,000) (95,000) (95,000) - 354,056 354,056 374,792 20,736 (1,014,869) (1,014,869) (96,855) 918,014 Fund balance - Beginning of year 1,014,869 1,014,869 1,048,732 33,863 Fund balance - End of year $ - $ - $ 951,878 $ 951,878 Totals may not add due to rounding 108 Deschutes County, Oregon Countywide Law Enforcement District — Capital Reserve (Sub -Fund of Countywide Law Enforcement District) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures $ 3,705 $ 3,705 $ 2,103 $ (1,602) 3,705 3,705 2,103 (1,602) 733,118 733,118 632,484 100,634 733,118 733,118 632,484 100,634 Excess (deficiency) of revenues over expenditures (729,413) (729,413) (630,381) 99,032 OTHER FINANCING SOURCES (USES) Appropriation transfer - - Transfers in 100,000 100,000 Net change in fund balance Fund balance - Beginning of year Fund balance - End of year (629,413) (629,413) - (100,000) (630,381) (968) 629,413 629,413 630,381 Totals may not add due to rounding 109 968 Deschutes County, Oregon Rural Law Enforcement District — Capital Reserve (Sub -Fund of Rural Law Enforcement District) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 9,078 $ 9,078 $ 4,962 $ (4,116) Total revenues 9,078 9,078 4,962 (4,116) EXPENDITURES Materials and services 1,593,942 1,593,942 1,492,176 101,766 Total expenditures 1,593,942 1,593,942 1,492,176 101,766 Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding (1,584,864) (1,584,864) 100,000 100,000 (1,484,864) (1,484,864) (1,487,214) 97,650 - (100,000) (1,487,214) (2,350) 1,484,864 1,484,864 1,487,214 2,350 110 Deschutes County, Oregon Road Building and Equipment (Sub -Fund of Road Department Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) 1,584,703 1,584,703 (1,580,703) (1,580,703) 454,539 1,130,164 (442,809) 1,137,894 Transfers in Budgeted Amounts 700,000 600,000 (100,000) Total other financing sources (uses) 700,000 700,000 Variance with (100,000) Original Budget Final Budget Actual Final Budget REVENUES Fund balance - Beginning of year 880,703 880,703 875,375 Local Fund balance - End of year $ - $ - $ 1,032,566 $ Investment earnings $ 4,000 $ 4,000 $ 11,730 $ 7,730 Total revenues 4,000 4,000 11,730 7,730 EXPENDITURES Materials and services 23,055 23,055 23,055 - Capital outlay 854,000 854,000 431,484 422,516 Total 877,055 877,055 454,539 422,516 Operating contingency 707,648 707,648 - 707,648 Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) 1,584,703 1,584,703 (1,580,703) (1,580,703) 454,539 1,130,164 (442,809) 1,137,894 Transfers in 700,000 700,000 600,000 (100,000) Total other financing sources (uses) 700,000 700,000 600,000 (100,000) Net change in fund balance (880,703) (880,703) 157,191 1,037,894 Fund balance - Beginning of year 880,703 880,703 875,375 (5,328) Fund balance - End of year $ - $ - $ 1,032,566 $ 1,032,566 Totals may not add due to rounding 111 Deschutes County, Oregon 9-1-1 County Service District — Equipment Reserve (Sub -Fund of Deschutes County 911 County Service District) Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding $ 70,000 $ 70,000 $ 75,884 $ 5,884 - 500,000 - (500,000) 70,000 570,000 75,884 (494,116) 1,000 1,000 1,003,000 1,003,000 1,004,000 1,004,000 1,000 1,003,000 1,004,000 (934,000) (434,000) 75,884 509,884 (200,000) (5,723,091) (5,723,091) - (200,000) (5,723,091) (5,723,091) - (1,134,000) (6,157,091) (5,647,207) 509,884 10,204,000 10,204,000 10,231,015 27,015 $ 9,070,000 $ 4,046,909 $ 4,583,809 $ 536,900 112 Combining and Individual Funds Statements and Schedules — Nonmajor Governmental Funds and Sub -Funds June 30, 2016 Deschutes County, Oregon Deschutes County, Oregon Nonmajor Governmental Funds Combining Balance Sheet June 30, 2016 Total liabilities, deferred inflows of resources and fund balances Totals may not add due to rounding 113 $ 26,716,722 $ 472,561 $ 27,189,282 Total Special Nonmajor Revenue Debt Governmental Funds Service Fund Funds ASSETS Cash and cash equivalents $ 5,522,112 $ 96,873 $ 5,618,985 Investments, at fair value; plus accrued interest 19,091,801 335,005 19,426,806 Taxes receivable 766,586 - 766,586 Accounts receivable 429,139 40,683 469,822 Notes and contracts receivable 907,085 - 907,085 Total assets $ 26,716,722 $ 472,561 $ 27,189,282 LIABILITIES Accounts payable $ 892,787 $ - $ 892,787 Unearned revenues 500,813 - 500,813 Total liabilities 1,393,600 - 1,393,600 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 10,282 - 10,282 Unavailable revenue - contracts of sale 3,559 - 3,559 Total deferred inflows of resources 13,841 - 13,841 FUND BALANCES Nonspendable 903,526 - 903,526 Restricted 12,914,449 - 12,914,449 Committed 11,491,305 472,561 11,963,866 Total fund balances 25,309,281 472,561 25,781,841 Total liabilities, deferred inflows of resources and fund balances Totals may not add due to rounding 113 $ 26,716,722 $ 472,561 $ 27,189,282 Deschutes County, Oregon Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding 114 Total Special Nonmajor Revenue Debt Capital Governmental Funds Service Funds Project Fund Funds REVENUES Local Taxes - property $ 449,614 $ 86,698 $ - $ 536,313 Taxes - other 6,068,098 - - 6,068,098 Licenses and permits 1,340,321 - - 1,340,321 Fines, forfeitures and penalties 1,135,877 - - 1,135,877 Investment earnings 297,948 10,756 738 309,442 Rents 18,442 1,258,665 - 1,277,107 Charges for services 6,982,886 1,105,215 - 8,088,101 Contributions and donations 4,600 - 12,167 16,766 Payments on contracts of sale 4,831 - - 4,831 Intergovernmental Local 850,519 399,833 - 1,250,352 State 7,184,566 - - 7,184,566 Federal 1,485,453 - - 1,485,453 Total revenues 25,823,156 2,861,167 12,904 28,697,228 EXPENDITURES Current: General government 12,307,586 5,604 - 12,313,190 Public safety 6,177,447 - - 6,177,447 County roads 1,002,567 - - 1,002,567 Health and welfare 1,911,088 - - 1,911,088 Education 610,125 - - 610,125 Debt service: Principal - 3,015,338 - 3,015,338 Interest - 2,259,334 - 2,259,334 Trustee fees - - - - Capital outlay - - 527,309 527,309 Total expenditures 22,008,813 5,280,277 527,309 27,816,400 Excess (deficiency) of revenues over expenditures 3,814,343 (2,419,110) (514,405) 880,828 OTHER FINANCING SOURCES (USES) Transfers in from other funds 1,392,253 2,390,666 120,000 3,902,919 Transfer out to other funds (2,223,225) - - (2,223,225) Refunding bonds issued - 1,925,295 - 1,925,295 Payment to refunded bond escrow agent - (1,904,328) - (1,904,328) Debt issuance costs - (13,668) - (13,668) Total other financing sources (uses) (830,972) 2,397,965 120,000 1,686,992 Net change in fund balances 2,983,370 (21,145) (394,405) 2,567,821 Fund balances - Beginning of year 22,325,911 493,705 394,405 23,214,021 Fund balances - End of year $ 25,309,281 $ 472,561 $ - $ 25,781,841 Totals may not add due to rounding 114 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 Totals may not add due to rounding Continued 115 Industrial Park Park Justice Lands Acquisition & Development Court Proceeds Development Fees ASSETS Cash and cash equivalents $ 37,318 $ 10,318 $ 25,504 $ 20,607 Investments, at fair value; plus accrued interest 126,285 35,681 88,197 71,264 Taxes receivable - - - - Accounts receivable - - 34,025 - Notes and contracts receivable - 3,559 - - Total assets $ 163,603 $ 49,557 $ 147,726 $ 91,871 LIABILITIES Accounts payable $ 1,518 $ - $ 2,909 $ - Unearned revenues - - - - Total liabilities 1,518 - 2,909 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -contracts of sale - 3,559 - Total deferred inflows of resources - 3,559 - FUND BALANCES Nonspendable - - - - Restricted - 45,999 144,817 91,871 Committed 162,085 - - - Total fund balance 162,085 45,999 144,817 91,871 Total liabilities, deferred inflow of resources and fund balance $ 163,603 $ 49,557 $ 147,726 $ 91,871 Totals may not add due to rounding Continued 115 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 Totals may not add due to rounding Continued 116 PERS Special Taylor Transient Reserve Transportation Grazing Room Tax ASSETS Cash and cash equivalents $ 2,315,109 $ 37,053 $ 7,942 $ 85,738 Investments, at fair value; plus accrued interest 8,006,069 128,135 27,463 296,498 Taxes receivable - - - 660,892 Accounts receivable - 10,921 - 26,364 Notes and contracts receivable - - - - Total assets $ 10,321,178 $ 176,108 $ 35,405 $ 1,069,492 LIABILITIES Accounts payable $ - $ 140,349 $ - S 94,294 Unearned revenues - - - - Total liabilities - 140,349 - 94,294 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -contracts of sale - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable - - - - Restricted - 35,760 35,405 975,198 Committed 10,321,178 - - - Total fund balance 10,321,178 35,760 35,405 975,198 Total liabilities, deferred inflow of resources and fund balance $ 10,321,178 $ 176,108 $ 35,405 $ 1,069,492 Totals may not add due to rounding Continued 116 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 Video Transient Foreclosed Lottery Room Tax -1% Land Sales ASSETS Cash and cash equivalents $ 57,297 $ 91,124 $ Investments, at fair value; plus accrued interest 198,143 315,124 Taxes receivable - 94,413 Accounts receivable 1,700 - Notes and contracts receivable - - Total assets $ 257,139 $ 500,661 $ LIABILITIES Accounts payable $ 114,125 $ - $ Y Unearned revenues - - - $ 7,487 25,890 - 91,628 n e Total liabilities 114,125 - 340 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - Unavailable revenue -contracts of sale - - - Total deferred inflows of resources - - - FUND BALANCES N d b1 657 657 onspen a e - - - - Restricted 143,014 500,661 (340) 124,347 Committed - - - - Total fund balance 143,014 500,661 (340) 124,347 Total liabilities, deferred inflow of resources and fund balance $ 257,139 $ 500,661 $ - $ 125,005 Totals may not add due to rounding Continued 117 Totals may not add due to rounding Continued 118 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 County Des Co Law Clerk Court Communication Library Records Facilities System Res ASSETS Cash and cash equivalents $ 98,258 $ 74,039 $ 9,117 $ 182,692 Investments, at fair value; plus accrued interest 339,795 256,039 31,528 631,781 Taxes receivable - - - - Accounts receivable - - 9,372 - Notes and contracts receivable - - - - Total assets $ 438,053 $ 330,077 50,017 $ 814,473 LIABILITIES Accounts payable $ - $ 2,837 $ - $ - Unearned revenues - - - - Total liabilities - 2,837 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -contracts of sale - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable - - - - Restricted 438,053 327,240 50,017 Committed - - - 814,473 Total fund balance 438,053 327,240 50,017 814,473 Total liabilities, deferred inflow of resources and fund balance $ 438,053 $ 330,077 50,017 $ 814,473 Totals may not add due to rounding Continued 118 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interes Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -contracts of sale Total deferred inflows of resources FUND BALANCES Nonspendable Restricted Committed Total fund balance Total liabilities, deferred inflow of resources and fund balance Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 CDD Community Groundwater Newberry GIS Development Partnership Neighborhood Dedicated $ 938,920 $ 1,189 $ 48,334 $ 40,776 t 3,245,920 4,113 167,147 141,012 71,650 - - - - - 903,526 - $ 4,256,489 $ 5,302 $ 1,119,006 $ 181,788 $ 127,245 $ - $ - $ 6 51,349 -- - 178,593 - - 6 - - 903,526 - 4,077,896 5,302 215,480 181,783 4,077,896 5,302 1,119,006 181,783 $ 4,256,489 $ 5,302 $ 1,119,006 8 181,788 Totals may not add due to rounding Continued 119 Totals may not add due to rounding Continued 120 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 Natural Federal Public Land Resource Forest Title Corner Protection III Surveyor Preservation ASSETS Cash and cash equivalents $ 88,981 $ 74,079 $ 29,438 $ 130,905 Investments, at fair value; plus accrued interest 307,711 256,177 101,803 452,692 Taxes receivable - - - - Accounts receivable 125,698 - - - Notes and contracts receivable - - - - Total assets $ 522,390 $ 330,256 $ 131,241 $ 583,597 LIABILITIES Accounts payable $ 19,860 $ 1,624 $ - S 10 Unearned revenues - - - Total liabilities 19,860 1,624 - 10 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Unavailable revenue -contracts of sale - - - - Total deferred inflows of resources - - - - FUND BALANCES Nonspendable - - - - Restricted 502,530 328,632 131,241 583,588 Committed - - - - Total fund balance 502,530 328,632 131,241 583,588 Total liabilities, deferred inflow of resources and fund balance $ 522,390 $ 330,256 $ 131,241 $ 583,597 Totals may not add due to rounding Continued 120 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued intere Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Unavailable revenue -contracts of sale Total deferred inflows of resources FUND BALANCES Nonspendable Restricted Committed Total fund balance Total liabilities, deferred inflow of resources and fund balance Deschutes County, Oregon st Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 Countywide Early Transportation Adult Parole Learning SDC Imp Dog Control & Probation Hub $ 367,572 $ 57,659 $ 419,899 $ 76,355 1,271,131 199,397 1,451,221 264,049 - 2,840 4,911 50,031 $ 1,638,703 $ 259,896 $ 1,876,030 $ 390,435 $ - $ 66,327 $ 61,142 $ 92,727 - - 345,112 - - 66,327 406,255 92,727 1,638,703 - 1,469,775 297,707 - 193,569 - - 1,638,703 193,569 1,469,775 297,707 $ 1,638,703 $ 259,896 $ 1,876,030 $ 390,435 Totals may not add due to rounding Continued 121 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2016 Totals may not add due to rounding 122 Des County Total Nonmajor Extension Special & 4-H Revenue Funds ASSETS Cash and cash equivalents $ 188,404 $ 5,522,112 Investments, at fair value; plus accrued interest 651,536 19,091,801 Taxes receivable 11,281 766,586 Accounts receivable - 429,139 Notes and contracts receivable - 907,085 Total assets $ 851,220 $ 26,716,722 LIABILITIES Accounts payable $ 166,818 $ 892,787 Unearned revenues 104,352 500,813 Total liabilities 271,170 1,393,600 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes 10,282 10,282 Unavailable revenue -contracts of sale - 3,559 Total deferred inflows of resources 10,282 13,841 FUND BALANCES Nonspendable - 903,526 Restricted 569,768 12,914,449 Committed - 11,491,305 Total fund balance 569,768 25,309,281 Total liabilities, deferred inflow of resources and fund balance $ 851,220 $ 26,716,722 Totals may not add due to rounding 122 Totals may not add due to rounding 123 Deschutes County, Oregon Deschutes County Community Development Department — Operating Fund and Sub -Funds Combining Balance Sheet June 30, 2016 Community Community CDD Building Development Development Program CDD Buildng Operating Reserve Reserve Improvement Fund Fund Fund Reserve Total ASSETS Cash and cash equivalents $ 548,256 $ 301,343 $ 78,029 $ 11,292 $ 938,920 Investments, at fair value; plus accrued interest 1,894,933 1,042,099 269,838 39,051 3,245,920 Accounts receivable 71,650 - - - 71,650 Total assets 2,514,839 1,343,442 347,866 50,343 4,256,489 LIABILITIES Accounts payable 127,245 - - - 127,245 Unearned revenue 51,349 - - - 51,349 Total liabilities 178,593 - - - 178,593 FUND BALANCES Assigned 2,336,245 1,343,442 347,866 50,343 4,077,896 Total fund balances 2,336,245 1,343,442 347,866 50,343 4,077,896 Total liabilities and fund balances $ 2,514,839 $ 1,343,442 $ 347,866 $ 50,343 $ 4,256,489 Totals may not add due to rounding 123 Deschutes County, Oregon Deschutes County Extension 4-H County Service District — Operating Fund and Sub -Fund Combining Balance Sheet June 30, 2016 Des County Ext & 4-H Des County Operating Ext & 4-H Fund Construction Total ASSETS Cash and cash equivalents $ 84,470 $ 103,934 $ 188,404 Investments, at fair value; plus accrued interest 292,114 359,422 651,536 Taxes receivable 11,281 - 11,281 Accounts receivable - - - Total assets LIABILITIES Accounts payable Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property tax Total deferred inflows of resources FUND BALANCES Restricted Total fund balances Total liabilities, deferred inflows of resources and fund balances Totals may not add due to rounding 387,865 463,355 851,220 166,818 - 166,818 104,352 - 104,352 271,170 - 271,170 10,282 10,282 10,282 10,282 106,413 463,355 569,768 106,413 463,355 569,768 $ 387,865 $ 463,355 $ 851,220 124 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding Continued 125 Industrial Park Park Justice Lands Acquisition & Development Court Proceeds Development Fees REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - 2,100 Fines, forfeitures and penalties 530,437 210 - - Investment earnings 1,151 1,035 1,137 957 Rents - - - - Charges for services - - - - Contributions and donations - - - - Payments on contracts of sale - 4,831 - - Intergovernmental Local - - - - State - - 288,533 - Federal - - - - Total revenues 531,588 6,076 289,670 3,057 EXPENDITURES Current: General government 594,008 6,913 19,792 1,426 Public safety - - - - County roads - - - - Health and welfare - - - - Education - - - - Capital outlay - - - - Total expenditures 594,008 6,913 19,792 1,426 Excess (deficiency) of revenues over expenditures (62,420) (837) 269,878 1,631 OTHER FINANCING SOURCES (USES) Transfers in from other funds 145,747 - - - Transfer out to other funds - - (190,000) - Total other financing sources (uses) 145,747 - (190,000) - Net change in fund balances 83,327 (837) 79,878 1,631 Fund balance - Beginning of year 78,758 46,836 64,940 90,241 Fund balance - End of year $ 162,085 $ 45,999 $ 144,817 $ 91,871 Totals may not add due to rounding Continued 125 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding Continued 126 PERS County Special Taylor Reserve School Transportation Grazing REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 107,705 171 2,052 346 Rents - - - - Charges for services - - - - Contributions and donations - - - - Payments on contracts of sale - - - - Intergovernmental Local - - - - State - 254,073 489,279 4,727 Federal - 355,881 43,684 - Total revenues 107,705 610,125 535,015 5,073 EXPENDITURES Current: General government 35,764 - - - Public safety - - - - County roads - - - - Health and welfare - - 563,394 - Education - 610,125 - - Capital outlay - - - - Total expenditures 35,764 610,125 563,394 - Excess (deficiency) of revenues over expenditures 71,942 - (28,379) 5,073 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - - Transfer out to other funds - - - - Total other financing sources (uses) - - - - Net change in fund balances 71,942 - (28,379) 5,073 Fund balance - Beginning of year 10,249,236 - 64,139 30,332 Fund balance - End of year $ 10,321,178 $ - $ 35,760 $ 35,405 Totals may not add due to rounding Continued 126 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 REVENUES Local Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Payments on contracts of sale Intergovernmental Local State Federal Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Education 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 Transient Room Tax Video Lottery Transient Foreclosed Room Tax -1% Land Sales 5,309,608 - 758,491 - 3,840 2,043 31841 441 11,575 682,021 - - 5,313,447 684,064 762,332 12,016 4,859,783 541,921 11,428 93,795 541,921 93,795 4,859,783 11,428 453,664 142,143 750,904 (81,780) (25,744) (25,744) 427,920 547,278 $ 975,198 142,143 871 $ 143,014 (524,226) - (524,226) - 226,678 (81,780) 273,983 81,439 $ 500,661 $ (340) Totals may not add due to rounding Continued 127 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding Continued 128 Victims' County Clerk Court Assistance Law Library Records Facilities REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - 131,769 Investment earnings 185 4,930 3,298 297 Rents - - - - Charges for services 33,866 - 112,809 - Contributions and donations - - - - Payments on contracts of sale - - - - Intergovernmental Local - - - - State 126,622 152,671 - - Federal 140,317 - - - Total revenues 300,990 157,601 116,107 132,066 EXPENDITURES Current: General government - 183,357 128,792 - Public safety 501,031 - - 100,075 County roads - - - - Health and welfare - - - - Education - - - - Capital outlay - - - - Total expenditures 501,031 183,357 128,792 100,075 Excess (deficiency) of revenues over expenditures (200,041) (25,756) (12,685) 31,991 OTHER FINANCING SOURCES (USES) Transfers in from other funds 295,648 - - - Transfer out to other funds - - - - Total other financing sources (uses) 295,648 - - - Net change in fund balances 95,607 (25,756) (12,685) 31,991 Fund balance - Beginning of year 28,740 463,809 339,925 18,026 Fund balance - End of year $ 124,347 $ 438,053 $ 327,240 $ 50,017 Totals may not add due to rounding Continued 128 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Des Co Des Co Communication Communication Community System System Res Development REVENUES Local Taxes - property $ - $ - $ - Taxes - other - - - Licenses and permits - - - Fines, forfeitures and penalties - - 75 Investment earnings 148 7,869 39,226 Rents - - 17,437 Charges for services - - 5,905,923 Contributions and donations - - - Payments on contracts of sale - - - Intergovernmental Local - 200,000 547,414 State - - 7,974 Federal - - 156,737 Total revenues 148 207,869 6,674,785 EXPENDITURES Current: General government - - 5,152,094 Public safety 316,063 - - County roads - - - Health and welfare - - - Education - - - Capital outlay - - - Total expenditures 316,063 - 5,152,094 Excess (deficiency) of revenues over expenditures (315,915) 207,869 1,522,691 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - 99,039 Transfer out to other funds - - (386,960) Total other financing sources (uses) - - (287,921) Net change in fund balances (315,915) 207,869 1,234,771 Fund balance - Beginning of year 315,915 606,605 2,843,125 Fund balance - End of year $ - $ 814,473 $ 4,077,896 Totals may not add due to rounding Continued 129 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Totals may not add due to rounding Continued 130 CDD Natural Groundwater Newberry GIS Resource Partnership Neighborhood Dedicated Protection REVENUES Local Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 86 41,950 1,789 5,657 Rents - - - - Charges for services - - 289,684 - Contributions and donations - - - - Payments on contracts of sale - - - - Intergovernmental Local - - - 3,084 State - - 11,459 - Federal - - - 419,446 Total revenues 86 41,950 302,932 428,187 EXPENDITURES Current: General government 7,500 9,844 229,183 - Public safety - - - - County roads - - - 397,655 Health and welfare - - - - Education - - - - Capital outlay - - - - Total expenditures 7,500 9,844 229,183 397,655 Excess (deficiency) of revenues over expenditures (7,414) 32,105 73,749 30,533 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - 18,221 Transfer out to other funds - (54,824) - - Total other financing sources (uses) - (54,824) - 18,221 Net change in fund balances (7,414) (22,719) 73,749 48,753 Fund balance - Beginning of year 12,716 1,141,725 108,034 453,777 Fund balance - End of year $ 5,302 $ 1,119,006 $ 181,783 $ 502,530 Totals may not add due to rounding Continued 130 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 REVENUES Local Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Payments on contracts of sale Intergovernmental Local State Federal Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Education 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 Federal Public Land Countywide Forest Title Corner Transportation III Surveyor Preservation SDC Imp - 102,935 - 956,853 3,034 2,303 7,568 21,502 - 39,999 438,254 - 117,231 - - - 120,266 145,237 445,822 978,355 59,777 174,443 370,692 59,777 174,443 370,692 60,488 (29,207) 75,130 978,355 (1,000,000) - - - (1,000,000) 60,488 (29,207) 75,130 (21,645) 268,144 160,448 508,458 1,660,348 $ 328,632 $ 131,241 $ 583,588 $ 1,638,703 Totals may not add due to rounding Continued 131 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 REVENUES Local Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Payments on contracts of sale Intergovernmental Local State Federal Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Education 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 288,774 96,736 4,888,581 5,455,999 3,285 278,626 252,157 621,310 544,507 - - - Des County - 5,260,278 Early Extension & 409,838 Adult Parole Learning 4-H County Dog Control & Probation Hub Service Dist $ - $ - $ - $ 449,614 278,433 - - - 2,803 391,569 79,014 - 2,526 18,739 3,755 8,367 - - - 1,005 412 60,373 4,473 85,520 4,600 - - - 288,774 96,736 4,888,581 5,455,999 3,285 278,626 252,157 621,310 544,507 - - - 431,986 - 5,260,278 - - 409,838 - 937,856 - 431,986 5,260,278 409,838 937,856 (121,065) 195,721 (316,546) 112,521 118,059 451,189 264,350 - - (41,472) - - 118,059 409,717 264,350 - (3,006) 605,438 (52,196) 112,521 196,575 864,337 349,904 457,247 $ 193,569 $ 1,469,775 $ 297,707 $ 569,768 Totals may not add due to rounding Continued 132 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 EXPENDITURES Total Nonmajor Current: Special General government Revenue Funds REVENUES 6,177,447 Local 1,002,567 Taxes - property $ 449,614 Taxes - other 6,068,098 Licenses and permits 1,340,321 Fines, forfeitures and penalties 1,135,877 Investment earnings 297,948 Rents 18,442 Charges for services 6,982,886 Contributions and donations 4,600 Payments on contracts of sale 4,831 Intergovernmental Local 850,519 State 7,184,566 Federal 1,485,453 Total revenues 25,823,156 EXPENDITURES Current: General government 12,307,586 Public safety 6,177,447 County roads 1,002,567 Health and welfare 1,911,088 Education 610,125 Capital outlay - Total expenditures 22,008,814 Excess (deficiency) of revenues over expenditures 3,814,343 OTHER FINANCING SOURCES (USES) Transfers in from other funds 1,392,253 Transfer out to other funds (2,223,225) Total other financing sources (uses) (830,972) Net change in fund balances 2,983,370 Fund balance - Beginning of year 22,325,911 Fund balance - End of year $ 25,309,281 Totals may not add due to rounding 133 Deschutes County, Oregon Deschutes County Community Development Department - Operating Fund and Sub -Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Charges for services Intergovernmental Local State Federal Total revenues EXPENDITURES Current General government Total expenditures Excess (deficiency) of revenues over expenditures Community Community CDD Building Development Development Program CDD Buildng Operating Reserve Reserve Improvement - Fund Fund Fund Reserve Total $ 75 $ - $ - $ - $ 75 24,845 11,666 2,372 343 39,226 17,437 - - - 17,437 5,905,923 - - - 5,905,923 547,414 - - - 547,414 7,974 - - - 7,974 156,737 - - - 156,737 6,660,404 11,666 2,372 343 6,674,785 5,152,094 - - 5,152,094 - - 1,508,310 11,666 2,372 - 5,152,094 5,152,094 343 1,522,691 OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in 99,039 - - - 99,039 Transfers out (386,960) - - - (386,960) Intra -fund Transfers in - 643,161 344,491 50,000 1,037,652 Transfers out (1,037,652) - - - (1,037,652) Total other financing sources (uses) (1,325,573) 643,161 344,491 50,000 (287,921) Net change in fund balance 182,737 654,827 346,863 50,343 1,234,771 Fund balance - Beginning of year 2,153,508 688,614 1,003 - 2,843,125 Fund balance - End of year $ 2,336,245 $ 1,343,442 $ 347,866 $ 50,343 $ 4,077,896 Totals may not add due to rounding 134 Deschutes County, Oregon Deschutes County Extension 4-H County Service District - Operating Fund and Sub -Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 Des County Ext & 4-H Des County Operating Ext & 4-11 Fund Construction Total REVENUES Local Taxes - property Investment earnings Rents Charges for services Total revenues EXPENDITURES Current: General services 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 Totals may not add due to rounding $ 449,614 $ - $ 449,614 3,878 4,490 8,367 1,005 - 1,005 85,520 - 85,520 540,017 4,490 544,507 431,986 - 431,986 431,986 - 431,986 108,032 4,490 112,521 - 50,000 50,000 (50,000) - (50,000) (50,000) 50,000 - 58,032 54,490 112,521 48,381 408,866 457,247 $ 106,413 $ 463,355 $ 569,768 135 Deschutes County, Oregon Justice Court Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Fines, forfeitures and penalties Investment earnings Total revenues EXPENDITURES Personnel services Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Budget Final Budget Variance with Actual Final Budget $ 450,000 $ 450,000 $ 530,437 $ 80,437 527 527 1,151 624 450,527 450,527 531,588 81,061 436,236 436,236 435,314 922 173,942 173,942 158,695 15,247 610,178 610,178 594,008 16,170 46,096 46,096 - 46,096 656,274 656,274 594,008 62,266 (205,747) (205,747) (62,420) 143,327 145,747 145,747 145,747 - (60,000) (60,000) 83,327 143,327 60,000 60,000 78,758 18,758 $ - $ - $ 162,085 $ 162,085 Totals may not add due to rounding 136 Deschutes County, Oregon Industrial Lands Proceeds Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Fines, forfeitures and penalties Investment earnings Payments on contracts of sale Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Net change in fund balance Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ - $ - $ 210 $ 210 500 500 1,035 535 - - 4,831 4,831 500 500 6,076 53576 6,150 7,150 6,913 6,150 7,150 6,913 237 237 44,350 43,350 - 43,350 50,500 50,500 6,913 43,587 (50,000) (50,000) (837) 49,163 Fund balance - Beginning of year 50,000 50,000 46,836 (3,164) Fund balance - End of year $ - $ - $ 45,999 $ 45,999 Totals may not add due to rounding 137 Totals may not add due to rounding 138 Deschutes County, Oregon Park Acquisition and Development Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 200 $ 200 $ 1,137 $ 937 Intergovernmental State 200,000 200,000 288,533 88,533 Total revenues 200,200 200,200 289,670 89,470 EXPENDITURES Materials and services 20,000 20,000 19,792 208 Total 20,000 20,000 19,792 208 Operating contingency 20,200 20,200 - 20,200 Total expenditures 40,200 40,200 19,792 20,408 Excess (deficiency) of revenues over expenditures 160,000 160,000 269,878 109,878 OTHER FINANCING SOURCES (USES) Transfer out (190,000) (190,000) (190,000) - Net change in fund balance (30,000) (30,000) 79,878 109,878 Fund balance - Beginning of year 30,000 30,000 64,940 34,940 Fund balance - End of year $ - $ - $ 144,817 $ 144,817 Totals may not add due to rounding 138 Deschutes County, Oregon Park Development Fees Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts REVENUES Local Licenses and permits Investment earnings Total revenues EXPENDITURES Materials and services Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding Original Budget Final Budget 1,000 1,000 1,000 1,000 Actual Variance with Final Budget 2,100 $ 2,100 957 (43) 3,057 2,057 98,000 98,000 1,426 96,574 98,000 98,000 1,426 96,574 (97,000) (97,000) 1,631 98,631 97,000 97,000 90,241 (6,759) $ - $ - $ 91,871 $ 91,871 139 Deschutes County, Oregon County School Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Intergovernmental State Federal Total revenues EXPENDITURES Materials and services Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding $ 100 $ 100 $ 171 $ 71 273,000 273,000 254,073 (18,927) 415,000 415,000 355,881 (59,119) 688,100 688,100 610,125 (77,975) 688,100 688,100 610,125 77,975 140 Deschutes County, Oregon Special Transportation Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Intergovernmental State Federal Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures OTHER FINANCING SOURCES (USES) Appropriation Transfer Net change in fund balance Fund balance - Beginning of year Fund balance - End of year $ 1,000 $ 1,000 $ 490,000 491,000 490,000 491,000 2,052 $ 489,279 43,684 535,015 1,052 (721) 43,684 44,015 522,000 665,864 563,394 102,470 522,000 665,864 563,394 102,470 33,000 33,000 555,000 698,864 143,864 (64,000) (64,000) - 33,000 563,394 135,470 - (143,864) (28,379) 35,621 64,000 64,000 64,139 $ - $ - $ 35,760 $ Totals may not add due to rounding 141 139 35,760 Deschutes County, Oregon Taylor Grazing Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Totals may not add due to rounding 142 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 175 $ 175 $ 346 $ 171 Intergovernmental State 5,000 5,000 4,727 (273) Total revenues 5,175 5,175 5,073 (102) EXPENDITURES Materials and services 36,595 36,595 - 36,595 Total expenditures 36,595 36,595 - 36,595 Net change in fund balance (31,420) (31,420) 5,073 36,493 Fund balance - Beginning of year 31,420 31,420 30,332 (1,088) Fund balance - End of year $ - $ - $ 35,405 $ 35,405 Totals may not add due to rounding 142 Deschutes County, Oregon Transient Room Tax Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Taxes - other Investment earnings Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 4,716,250 $ 4,716,250 $ 5,309,608 $ 593,358 - - 3,840 3,840 4,716,250 4,716,250 5,313,447 597,197 4,693,348 4,911,708 4,859,783 51,925 4,693,348 4,911,708 4,859,783 51,925 22,902 (195,458) 453,664 649,122 Appropriation transfer - 218,360 - (218,360) Transfer out (25,744) (25,744) (25,744) - Total other financing sources (uses) (25,744) 192,616 (25,744) (218,360) Net change in fund balance (2,842) (2,842) 427,920 430,762 Fund balance - Beginning of year 2,842 2,842 547,278 544,436 Fund balance - End of year $ - $ - $ 975,198 $ 975,198 Totals may not add due to rounding 143 Deschutes County, Oregon PERS Reserve Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings 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 $ 80,000 $ 80,000 $ 107,705 $ 27,705 80,000 80,000 107,705 27,705 10,316,000 10,281,085 2,000 36,915 10, 318, 000 10, 318, 000 (10,238,000) (10,238,000) - 10,281,085 35,764 1,151 35,764 10,282,236 71,942 10,309,942 10,238,000 10,238,000 10,249,236 11,236 $ - $ - $ 10,321,178 $ 10,321,178 Totals may not add due to rounding 144 Deschutes County, Oregon Video Lottery Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget 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 $ 500 $ 500 $ 2,043 $ 1,543 600,000 600,000 682,021 82,021 600,500 600,500 684,064 83,564 600,500 600,500 541,921 58,579 600,500 600,500 541,921 58,579 - - 142,143 142,143 - - 871 871 $ - $ - $ 143,014 $ 143,014 Totals may not add due to rounding 145 Deschutes County, Oregon Transient Room Tax - 1% Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Taxes - other Investment earnings Total revenues EXPENDITURES Materials and services Total Excess (deficiency) of revenues over expenditures Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 673,750 $ 673,750 $ 758,491 $ 84,741 - - 3,841 3,841 673,750 673,750 762,332 88,582 12,551 12,551 11,428 1,123 12,551 12,551 11,428 1,123 661,199 661,199 750,904 89,705 OTHER FINANCING SOURCES (USES) Transfer out (811,819) (811,819) (524,226) 287,593 Total other financing sources (uses) (811,819) (811,819) (524,226) 287,593 Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding (150,620) (150,620) 226,678 377,298 150,620 150,620 273,983 123,363 - $ - $ 500,661 $ 500,661 146 Deschutes County, Oregon Foreclosed Land Sales Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Other Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures OTHER FINANCING SOURCES (USES) Appropriation Transfer Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding $ 500 $ 500 $ 441 $ (59) - - 11,575 11,575 500 500 12,016 11,516 62,631 105,500 93,795 11,705 62,631 105,500 93,795 11,705 22,869 85,500 105,500 93,795 11,705 20,000 - (20,000) (85,000) (85,000) (81,780) 3,220 85,000 85,000 81,439 (3,561) (340) $ (340) 147 Deschutes County, Oregon Victims' Assistance Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 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 (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding Budgeted Amounts Original Budget Final Budget 500 $ 300 32,100 100 500 $ 300 32,100 100 Variance with Actual Final Budget - $ (500) 185 (115) 33,866 1,766 - (100) 98,569 101,980 126,622 24,642 48,043 189,892 140,317 (49,575) 179,612 324,872 300,990 (23,882) 425,458 491,055 446,317 44,738 38,723 104,073 54,714 49,359 100 100 - 100 464,281 595,228 501,031 94,198 45,687 60,000 - 60,000 509,968 655,228 501,031 154,198 (330,356) (330,356) (200,041) 130,315 295,648 295,648 295,648 - (34,708) (34,708) 95,607 130,315 34,708 34,708 28,740 (5,968) $ - $ - $ 124,347 $ 124,347 148 EXPENDITURES Personnel services Deschutes County, Oregon 62,638 9,575 53,063 Law Library 549,762 549,762 Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Capital outlay Year Ended June 30, 2016 100 - 100 Budgeted Amounts 612,500 612,500 183,357 429,143 Variance with Net change in fund balance Original Budget Final Budget Actual Final Budget REVENUES Fund balance - Beginning of year 430,000 430,000 Local 33,809 Investment earnings $ 2,400 $ 2,400 $ 4,930 $ 2,530 Charges for services 100 100 - (100) Intergovernmental State 180,000 180,000 152,671 (27,329) Total revenues 182,500 182,500 157,601 (24,899) EXPENDITURES Personnel services 62,638 62,638 9,575 53,063 Materials and services 549,762 549,762 173,782 375,980 Capital outlay 100 100 - 100 Total expenditures 612,500 612,500 183,357 429,143 Net change in fund balance (430,000) (430,000) (25,756) 404,244 Fund balance - Beginning of year 430,000 430,000 463,809 33,809 Fund balance - End of year $ - $ - $ 438,053 $ 438,053 Totals may not add due to rounding 149 Totals may not add due to rounding 150 Deschutes County, Oregon County Clerk Records Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 2,200 $ 2,200 $ 3,298 $ 1,098 Charges for services 100,000 100,000 112,809 12,809 Total revenues 102,200 102,200 116,107 13,907 EXPENDITURES Materials and services 211,975 211,975 128,792 83,183 Capital outlay 100 100 - 100 Total 212,075 212,075 128,792 83,283 Operating contingency 230,616 230,616 - 230,616 Total expenditures 442,691 442,691 128,792 313,899 Net change in fund balance (340,491) (340,491) (12,685) 327,806 Fund balance - Beginning of year 340,491 340,491 339,925 (566) Fund balance - End of year $ - $ - $ 327,240 $ 327,240 Totals may not add due to rounding 150 Deschutes County, Oregon Early Learning Hub Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Fines, forfeitures and penalties Investment earnings Charges for services Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Budget Final Budget 77,086 $ 2,400 2,000 77,086 $ 2,400 2,000 - Variance with Actual Final Budget 79,014 $ 1,928 3,755 1,355 4,473 2,473 - - 3,285 3,285 105,326 243,569 278,626 35,057 213,382 256,245 252,157 (4,088) 400,194 581,300 621,310 40,010 304,598 304,598 275,543 29,055 494,118 675,224 662,313 12,911 798,716 979,822 937,856 41,966 140,127 140,127 - 140,127 938,843 1,119,949 937,856 182,093 (538,649) (538,649) (316,546) 222,103 264,350 264,350 264,350 - (274,299) (274,299) (52,196) 222,103 274,299 274,299 Totals may not add due to rounding 151 349,904 75,605 297,707 $ 297,707 Deschutes County, Oregon Court Facilities Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Fines, forfeitures and penalties $ 80,000 $ 80,000 $ 131,769 $ 51,769 Investment earnings 75 75 297 222 Total revenues 80,075 80,075 132,066 51,991 EXPENDITURES Materials and services 100,075 100,075 100,075 - Total expenditures 100,075 100,075 100,075 - Net change in fund balance (20,000) (20,000) 31,991 51,991 Fund balance - Beginning of year 20,000 20,000 18,026 (1,974) Fund balance - End of year $ - $ - 50,017 $ 50,017 Totals may not add due to rounding 152 Deschutes County, Oregon Deschutes County Communication System Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding S 148 $ 148 148 148 329,089 329,089 316,063 13,026 329,089 329,089 316,063 13,026 (329,089) (329,089) (315,915) 13,174 329,089 329,089 315,915 (13,174) 153 Deschutes County, Oregon Deschutes County Communication System Reserve Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 2,886 $ 2,886 $ 7,869 $ 4,983 Intergovernmental 200,000 200,000 200,000 - Total revenues 202,886 202,886 207,869 4,983 Net change in fund balance 202,886 202,886 207,869 4,983 Fund balance - Beginning of year 605,234 605,234 606,605 1,371 Fund balance - End of year $ 808,120 $ 808,120 $ 814,473 $ 6,353 Totals may not add due to rounding 154 Deschutes County, Oregon Community Development Department Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Charges for services 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 Variance with Original Budget Final Budget Actual Final Budget $ 1,738 $ 1,738 $ 75 $ (1,663) 12,000 12,000 24,845 12,845 12,000 12,000 17,437 5,437 4,996,914 4,996,914 5,905,923 909,009 281,500 281,500 547,414 265,914 13,000 13,000 7,974 (5,026) 197,492 197,492 156,737 (40,755) 5,514,644 5,514,644 6,660,404 1,145,760 3,874,324 1,405,455 100 5,279,879 3,923,080 1,510,455 100 5,433,635 508,907 355,151 3,754,700 168,380 1,397,394 113,061 - 100 5,152,094 281,541 - 355,151 5,788,786 5,788,786 5,152,094 636,692 (274,142) (274,142) 1,508,310 OTHER FINANCING SOURCES (USES) Transfers in 99,039 99,039 99,039 Transfers out (1,424,897) (1,424,897) (1,424,612) Total other financing sources (uses) (1,325,858) (1,325,858) (1,325,573) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding 1,782,452 285 285 (1,600,000) (1,600,000) 182,737 1,782,737 1,600,000 1,600,000 2,153,508 553,508 $ - $ - $ 2,336,245 $ 2,336,245 155 Deschutes County, Oregon Community Development Reserve (Sub -Fund of Community Development Department) Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 11,666 $ 11,666 Total revenues - - 11,666 11,666 OTHER FINANCING SOURCES (USES) Transfers in 643,161 643,161 643,161 - Net change in fund balance 643,161 643,161 654,827 11,666 Fund balance - Beginning of year 686,470 686,470 688,614 2,144 Fund balance - End of year $ 1,329,631 $ 1,329,631 $ 1,343,442 $ 13,811 Totals may not add due to rounding 156 Deschutes County, Oregon CDD Building Program Reserve (Sub -Fund of Community Development Department) Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Total revenues OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding 2,372 $ 2,372 - - 2,372 2,372 344,491 344,491 344,491 344,491 344,491 346,863 2,372 1,000 1,000 1,003 3 $ 345,491 $ 345,491 $ 347,866 $ 2,375 INFA Deschutes County, Oregon CDD Building Improvement Reserve (Sub -Fund of Community Development Department) Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 343 $ 343 Total revenues - - 343 343 OTHER FINANCING SOURCES (USES) Transfers in 50,000 50,000 50,000 - Net change in fund balance 50,000 50,000 50,343 343 Fund balance - Beginning of year - - - - Fund balance - End of year $ 50,000 $ 50,000 $ 50,343 $ 343 Totals may not add due to rounding 158 Deschutes County, Oregon CDD Groundwater Partnership Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 400 $ 400 $ 86 $ (314) Total revenues 400 400 86 (314) EXPENDITURES Materials and services Total Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year 37,500 37,500 7,500 30,000 37,500 37,500 7,500 30,000 33,858 33,858 - 33,858 71,358 71,358 7,500 63,858 (70,958) (70,958) (7,414) 63,544 70,958 70,958 12,716 (58,242) Totals may not add due to rounding 159 5,302 $ 5,302 Deschutes County, Oregon Newberry Neighborhood Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Investment earnings Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 1,500 $ 1,500 $ 41,950 $ 40,450 1,500 1,500 41,950 40,450 16,000 16,000 9,844 6,156 100 100 - 100 16,100 16,100 9,844 6,256 250,576 250,576 - 250,576 266,676 266,676 9,844 256,832 (265,176) (265,176) 32,105 (54,824) (54,824) (54,824) (320,000) (320,000) (22,719) 297,281 297,281 320,000 320,000 1,141,725 821,725 $ - $ - $ 1,119,006 $ 1,119,006 160 EXPENDITURES Personnel services Deschutes County, Oregon 213,199 200,784 12,415 GIS Dedicated Fund 47,714 47,714 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Capital outlay Year Ended June 30, 2016 - - - Budgeted Amounts 260,913 260,913 229,183 31,730 Operating contingency Variance with 42,102 Original Budget Final Budget Actual Final Budget REVENUES Total expenditures 303,015 303,015 Local 73,832 Investment earnings $ 250 $ 250 $ 1,789 $ 1,539 Charges for services 253,000 253,000 289,684 36,684 Intergovernmental 72,269 State 14,000 14,000 11,459 (2,541) Total revenues 267,250 267,250 302,932 35,682 EXPENDITURES Personnel services 213,199 213,199 200,784 12,415 Materials and services 47,714 47,714 28,399 19,315 Capital outlay - - - - Total 260,913 260,913 229,183 31,730 Operating contingency 42,102 42,102 - 42,102 Total expenditures 303,015 303,015 229,183 73,832 Net change in fund balance (35,765) (35,765) 73,749 109,514 Fund balance - Beginning of year 35,765 35,765 108,034 72,269 Fund balance - End of year $ - $ - $ 181,783 $ 181,783 Totals may not add due to rounding 161 Deschutes County, Oregon Natural Resource Protection Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding $ 1,000 $ 1,000 $ 5,657 $ 4,657 150,000 150,000 3,084 (146,916) 8,000 8,000 - (8,000) 1,416,000 1,416,000 419,446 (996,554) 1,575,000 1,575,000 428,187 (1,146,813) 155,413 155,413 138,536 16,877 1,229,784 1,229,784 259,118 970,666 1,385,197 1,385,197 397,655 987,542 704,670 2,089,867 704,670 704,670 2,089,867 397,655 1,692,212 (514,867) (514,867) 30,533 545,400 35,000 35,000 18,221 (16,779) (479,867) (479,867) 48,753 528,620 479,867 479,867 453,777 (26,090) $ - $ - $ 502,530 $ 502,530 162 Deschutes County, Oregon Federal Forest Title III Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ - $ - $ 3,034 $ 3,034 Intergovernmental Federal 125,400 125,400 117,231 (8,169) Total revenues 125,400 125,400 120,266 (5,134) EXPENDITURES Materials and services 150,000 150,000 59,777 90,223 Total 150,000 150,000 59,777 90,223 Operating contingency 103,578 103,578 - 103,578 Total expenditures 253,578 253,578 59,777 193,801 Net change in fund balance (128,178) (128,178) 60,488 188,666 Fund balance - Beginning of year 128,178 128,178 268,144 139,966 Fund balance - End of year $ - $ - $ 328,632 $ 328,632 Totals may not add due to rounding 163 Deschutes County, Oregon Surveyor Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Licenses and permits Investment earnings Charges for services Total revenues EXPENDITURES Materials and services Total Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 131,270 $ 131,270 $ 102,935 $ (28,335) 1,000 1,000 2,303 1,303 48,150 48,150 39,999 (8,151) 180,420 180,420 145,237 (35,183) (157,562) (29,206) 128,356 179,270 179,270 174,443 4,827 179,270 179,270 174,443 4,827 Operating contingency 158,712 158,712 - 158,712 Total expenditures 337,982 337,982 174,443 163,539 Net change in fund balance (157,562) (157,562) (29,206) 128,356 Fund balance - Beginning of year 157,562 157,562 160,448 2,886 Fund balance - End of year $ - $ - $ 131,242 $ 131,242 Totals may not add due to rounding 164 Deschutes County, Oregon Public Land Corner Preservation Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local 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 Totals may not add due to rounding $ 3,700 $ 3,700 $ 7,568 $ 3,868 399,000 399,000 438,254 39,254 402,700 402,700 445,822 43,122 380,730 380,730 370,692 10,038 380,730 380,730 370,692 10,038 511,624 511,624 511,624 892,354 892,354 370,692 521,662 (489,654) (489,654) 75,130 564,784 489,654 489,654 508,458 18,804 $ - $ - $ 583,588 $ 583,588 165 Deschutes County, Oregon Countywide Transportation SDC Improvement Fee Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Licenses and permits Investment earnings Total revenues EXPENDITURES Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer out Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 750,000 $ 750,000 $ 956,853 $ 206,853 8,000 8,000 21,502 13,502 758,000 758,000 978,355 220,355 1,346,600 1,346,600 1,346,600 1,346,600 (588,600) (588,600) - 1,346,600 - 1,346,600 978,355 (1,000,000) (1,000,000) (1,000,000) (1,588,600) (1,588,600) (21,645) 1,566,955 1,566,955 1,588,600 1,588,600 1,660,348 71,749 $ - $ - $ 1,638,703 $ 1,638,703 166 Deschutes County, Oregon Dog Control Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding Budgeted Amounts Original Budget Final Budget Variance with Actual Final Budget $ 307,700 $ 307,700 $ 278,433 $ (29,267) 3,900 3,900 2,803 (1,097) 800 800 2,526 1,726 300 300 412 112 3,000 3,000 4,600 1,600 315,700 315,700 288,774 (26,926) 531,275 531,275 409,838 121,437 531,275 531,275 409,838 121,437 58,558 58,558 - 58,558 589,833 589,833 409,838 179,995 (274,133) (274,133) (121,065) 153,068 118,059 118,059 118,059 - (156,074) (156,074) (3,006) 153,068 156,074 156,074 196,575 40,501 $ - $ - $ 193,569 $ 193,569 167 Deschutes County, Oregon Adult Parole and Probation Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Fines, forfeitures and penalties Investment earnings Rents Charges for services Intergovernmental Local 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) Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 435,000 $ 435,000 $ 391,569 $ (43,431) 7,000 7,000 18,739 11,739 1,500 1,500 - (1,500) 56,500 56,500 60,373 3,873 96,736 96,736 96,736 - 3,961,278 4,881,032 4,888,581 7,549 4,558,014 5,477,768 5,455,999 (21,769) 3,890,276 4,013,941 3,770,605 243,336 1,304,248 1,551,315 1,489,673 61,642 100 68,100 - 68,100 5,194,624 5,633,356 5,260,278 373,078 456,359 916,645 - 916,645 5,650,983 6,550,001 5,260,278 1,289,723 (1,092,969) (1,072,233) 195,721 1,267,954 Transfers in 451,189 451,189 451,189 - Transfers out (20,736) (41,472) (41,472) - Total other financing sources (uses) 430,453 409,717 409,717 - Net change in fund balance (662,516) (662,516) 605,438 1,267,954 Fund balance - Beginning of year 662,516 662,516 864,337 201,821 Fund balance - End of year $ - $ - $ 1,469,775 $ 1,469,775 Totals may not add due to rounding 168 Deschutes County, Oregon Extension 4-11 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 EXPENDITURES Personnel services Budgeted Amounts 3,230 2,759 471 Materials and services 410,606 564,826 Variance with 135,599 Original Budget Final Budget Actual Final Budget REVENUES Total 568,156 568,156 431,986 Local Operating contingency 65,727 65,727 - Taxes - property $ 442,313 $ 442,313 $ 449,614 $ 7,301 Investment earnings 1,250 1,250 3,878 2,628 Rents 4,020 4,020 1,005 (3,015) Charges for services 86,200 86,200 85,520 (680) Total revenues 533,783 533,783 540,017 6,234 EXPENDITURES Personnel services 157,450 3,230 2,759 471 Materials and services 410,606 564,826 429,227 135,599 Capital outlay 100 100 - 100 Total 568,156 568,156 431,986 136,170 Operating contingency 65,727 65,727 - 65,727 Total expenditures 633,883 633,883 431,986 201,897 Excess (deficiency) of revenues over expenditures (100,100) (100,100) 108,032 208,132 OTHER FINANCING SOURCES (USES) Transfers in 100 100 - (100) Transfers out (50,000) (50,000) (50,000) - Total other financing sources (uses) (49,900) (49,900) (50,000) (100) Net change in fund balance (150,000) (150,000) 58,032 208,032 Fund balance - Beginning of year 150,000 150,000 48,381 (101,619) Fund balance - End of year $ - $ - $ 106,413 $ 106,413 Totals may not add due to rounding 169 Deschutes County, Oregon Extension 4-11 Construction (Sub -Fund of Extension 4-H) Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Totals may not add due to rounding 170 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget REVENUES Local Investment earnings $ 2,400 $ 2,400 $ 4,490 $ 2,090 Total revenues 2,400 2,400 4,490 2,090 EXPENDITURES Materials and services 100 100 - 100 Capital outlay 100 100 - 100 Total expenditures 200 200 - 200 Excess (deficiency) of revenues over expenditures 2,200 2,200 4,490 2,290 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 Net change in fund balance 52,100 52,100 54,490 2,390 Fund balance - Beginning of year 408,100 408,100 408,866 766 Fund balance - End of year $ 460,200 $ 460,200 $ 463,355 $ 3,155 Totals may not add due to rounding 170 Deschutes County, Oregon Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 5,604 Full Faith Sunriver and Credit Library CSD Debt Service General Fund Obligation REVENUES Local Taxes - property Investment earnings Rents Charges for services Intergovernmental Local Total revenues EXPENDITURES Materials and services Debt Service: Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Refunding bonds issued Premium on refunding bonds issued Payment to refunded bond escrow agent Debt issuance costs Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding 10,274 1,258,665 1,105,215 399,833 2,773,987 Total Nonmajor Debt Service Funds $ 86,698 $ 86,698 481 10,756 - 1,258,665 - 1,105,215 - 399,833 87,180 2,861,167 2,585 3,020 5,604 2,925,338 90,000 3,015,338 2,254,204 5,130 2,259,334 5,182,127 98,150 5,280,277 (2,408,140) (10,970) (2,419,110) 2,390,666 1,925,295 (1,904,328) (13,668) 2,397,965 2,390,666 1,925,295 (1,904,328) (13,668) 2,397,965 (10,175) (10,970) (21,145) 482,736 10,970 493,705 $ 472,561 $ - $ 472,561 171 Deschutes County, Oregon Deschutes County Debt Service Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual Year Ended June 30, 2016 REVENUES Local Investment earnings Rents Charges for services Intergovernmental Local Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Refunding bonds issued Payment to refunded bond escrow agent Debt issuance costs Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 2,450 $ 2,450 $ 10,274 $ 7,824 1,257,997 1,257,997 1,258,665 668 1,140,623 1,140,623 1,105,215 (35,408) 399,833 399,833 399,833 - 2,800,903 2,800,903 2,773,987 (26,916) 3,350 3,350 2,585 765 5,190,915 5,198,622 5,179,543 19,079 5,194,265 5,201,972 5,182,127 19,845 (2,393,362) (2,401,069) (2,408,140) (7,071) 2,416,618 2,416,618 2,390,666 (25,952) - 1,925,295 1,925,295 - - (1,904,328) (1,904,328) - - (13,260) (13,668) (408) 2,416,618 2,424,325 2,397,965 (26,360) 23,256 23,256 (10,175) (33,431) 452,634 452,634 482,736 30,102 $ 475,890 $ 475,890 $ 472,561 Totals may not add due to rounding 172 $ (3,329) Deschutes County, Oregon Sunriver Library County Service District Debt Service Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget 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 Totals may not add due to rounding $ 91,530 $ 91,530 $ 86,698 $ (4,832) 100 100 481 381 91,630 91,630 87,180 (4,450) 5,000 5,000 3,020 1,980 95,130 95,130 95,130 - 100,130 100,130 98,150 1,980 (8,500) (8,500) (10,970) (2,470) 8,500 8,500 10,970 2,470 173 Deschutes County, Oregon Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2016 REVENUES Local Investment earnings Contributions and donations Intergovernmental Local State Federal Total revenues EXPENDITURES Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers out Transfers in 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 Totals may not add due to rounding Total North County Nonmajor Services Campus Capital Building Improvement Projects Funds $ 40 $ 697 $ 738 - 12,167 12,167 40 12,864 12,904 174 207,060 320,249 527,309 207,060 320,249 527,309 (207,020) (307,385) (514,405) 120,000 120,000 120,000 120,000 (207,020) (187,385) (394,405) 207,020 187,385 394,405 Deschutes County, Oregon Nonmajor Capital Project Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Investment earnings Contributions & donations Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Appropriation transfer Transfers in Net other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Budget Final Budget Variance with Actual Final Budget $ 1,500 $ 1,500 $ 738 $ (762) - - 12,167 12,167 1,500 1,500 12,904 11,404 133,383 133,383 71,861 61,522 669,117 789,117 455,448 333,669 802,500 922,500 527,309 395,191 (801,000) (921,000) (514,405) 406,595 - 120,000 - (120,000) 120,000 120,000 120,000 - 120,000 240,000 120,000 (120,000) (681,000) (681,000) (394,405) 286,595 681,000 681,000 394,405 (286,595) Totals may not add due to rounding 175 Deschutes County, Oregon North County Services Building Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Investment earnings 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 Totals may not add due to rounding Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,000 $ 1,000 $ 40 $ (960) 1,000 1,000 40 (960) 82,000 82,000 34,105 47,895 500,000 500,000 172,956 327,044 582,000 582,000 207,060 374,940 (581,000) (581,000) (207,020) 373,980 581,000 581,000 207,020 (373,980) 176 Deschutes County, Oregon Campus Improvement Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) Year Ended June 30, 2016 REVENUES Local Investment earnings Contributions & Donations Total revenues EXPENDITURES Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 500 $ 500 500 $ 697 $ 197 - 12,167 12,167 500 12,864 12,364 Materials and services 51,383 51,383 37,756 13,627 Capital outlay 169,117 289,117 282,493 6,624 Total expenditures 220,500 340,500 320,249 20,251 Excess (deficiency) of revenues over expenditures (220,000) (340,000) (307,385) 32,615 OTHER FINANCING SOURCES (USES) 120,000 - (120,000) Transfer in 120,000 120,000 120,000 - Total other financing sources (uses) 120,000 240,000 120,000 (120,000) Net change in fund balance (100,000) (100,000) (187,385) (87,385) Fund balance - Beginning of year 100,000 100,000 187,385 87,385 Fund balance - End of year $ - $ - $ - $ - Totals may not add due to rounding 177 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds June 30, 2015 Deschutes County, Oregon Deschutes County, Oregon Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity For the Year Ended June 30, 2016 Liabilities Accounts payable Balance $ 18,859,215 $ 15,407,305 Balance Due to other entities July 1, 2015 Additions Deductions June 30, 2016 Amounts Held for Others 1,040,843 316,305,393 316,241,829 1,104,407 Assets 10,015,070 75,014 590,368 9,499,716 Cash, cash equivalents and investments, $ 11,630,887 $ 335,239,621 $ 332,239,502 $ 14,631,005 at market; plus accrued interest $ 11,524,471 $ 334,860,326 $ 332,123,317 $ 14,261,480 Accounts receivable 106,416 379,295 116,185 369,525 $ 11,630,887 $ 335,239,621 $ 332,239,502 $ 14,631,005 Liabilities Accounts payable $ 574,973 $ 18,859,215 $ 15,407,305 $ 4,026,883 Due to other entities Governmental 1,040,843 316,305,393 316,241,829 1,104,407 Others 10,015,070 75,014 590,368 9,499,716 $ 11,630,887 $ 335,239,621 $ 332,239,502 $ 14,631,005 Totals may not add due to rounding 179 Combining Funds and Individual Funds Statements and Schedules — Proprietary Funds — Enterprise Funds June 30, 2016 Deschutes County, Oregon This page left intentionally blank. Deschutes County, Oregon Solid Waste Enterprise Operations Fund and Sub -Funds Combining Schedule of Net Position June 30, 2016 Total liabilities 18,610,580 2,837,911 779,324 64,177 57,960 22,349,952 DEFERRED INFLOWS OF RESOURCES Differences between contributions and proportionate share of contributions 44,095 - - - - 44,095 Net difference (projected & actual earnings) 143,855 - - - - 143,855 Total deferred inflows of resources 187,950 - - - - 187,950 NET POSITION Net investment in capital assets 16,287,882 - - - - 16,287,882 Unrestricted (6,037,999) - 1,858,931 39,217 (4,139,851) Total net position $ 10,249,884 $ - $ - $ 1,858,931 $ 39,217 $ 12,148,031 Totals may not add due to rounding 180 Solid Waste Solid Waste Solid Waste Landfill Landfill Capital Equipment Operations Closure Postclosure Prgjects Reserve Total ASSETS Current assets: Cash and cash equivalents $ 468,183 $ 636,562 $ 174,808 $ 431,366 $ 21,797 $ 1,732,716 Investments, plus accrued interest 1,606,959 2,201,349 604,516 1,491,742 75,380 5,979,946 Accounts receivable 662,033 - - - - 662,033 Due from other funds - - - - - - Total current assets 2,737,175 2,837,911 779,324 1,923,108 97,177 8,374,695 Noncurrent assets: Capital assets: Capital assets not being depreciated: Land 1,791,352 - - - - 1,791,352 Construction in progress 1,078,951 - - - - 1,078,951 Capital assets net of accumulated depreciation: Land improvements 13,024,280 - - - - 13,024,280 Buildings and improvements 7,810,098 - - - - 7,810,098 Equipment 2,128,883 - - - - 2,128,883 Vehicles 95,767 - - - - 95,767 Intangibles 4,520 - - - - 4,520 Total capital assets 25,933,851 - - - 25,933,851 Total assets 28,671,027 2,837,911 779,324 1,923,108 97,177 34,308,547 DEFERRED OUTLOWS OF RESOURCES Deferred charge on refunding 223,368 - - - 223,368 Differences between Expected/Actual Experience 37,006 - - - 37,006 Changes in Proportionate Share 9,657 - - - 9,657 Contributions subsequent to measurement date 107,355 - - - 107,355 Total deferred outflows of resources 377,387 - - - - 377,387 LIABILITIES Current liabilities: Accounts payable 259,999 70 - 64,177 57,960 382,206 Interest payable 19,823 - - - - 19,823 Current portion of noncurrent liabilities 830,089 - - - - 830,089 Total current liabilities 1,109,911 70 - 64,177 57,960 1,232,118 Noncurrent liabilities: Compensated leave 217,197 - - - - 217,197 Net OPEB obligation 484,761 - - - - 484,761 Net pension liability 686,256 - - - - 686,256 Bonds and notes payable (net of unamortized premiums and discounts) 9,869,337 - - - - 9,869,337 Accrued closure / postclosure 7,073,207 2,837,841 779,324 - - 10,690,372 Less current portion of noncurrent liabilities (830,089) - - - - (830,089) Total noncurrent liabilities 17,500,669 2,837,841 779,324 - - 21,117,834 Total liabilities 18,610,580 2,837,911 779,324 64,177 57,960 22,349,952 DEFERRED INFLOWS OF RESOURCES Differences between contributions and proportionate share of contributions 44,095 - - - - 44,095 Net difference (projected & actual earnings) 143,855 - - - - 143,855 Total deferred inflows of resources 187,950 - - - - 187,950 NET POSITION Net investment in capital assets 16,287,882 - - - - 16,287,882 Unrestricted (6,037,999) - 1,858,931 39,217 (4,139,851) Total net position $ 10,249,884 $ - $ - $ 1,858,931 $ 39,217 $ 12,148,031 Totals may not add due to rounding 180 Deschutes County, Oregon Fair and Expo Center Enterprise Operations Fund and Sub -Funds Combining Schedule of Net Position June 30, 2016 Annual Fair & Expo Fairgrounds Fair & Expo County Center G.O. Bonds Center Fair Reserve Debt Service ASSETS Current assets: Cash and cash equivalents Investments, plus accrued interest Due to/from Fair & Expo sub -fund Accounts receivable Taxes receivable Inventory 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 Building and improvements Equipment and vehicles Total capital assets Total assets Total $ 32,800 $ 16,657 $ 92,740 $ 42,939 $ 185,136 90,258 57,603 320,711 148,491 617,063 12,238 - - 12,238 - - - 72,800 72,800 24,921 - - 24,921 - 161,138 - - 161,138 160,216 235,398 413,451 264,230 11073,295 132,685 132,685 5,165,689 - - 5,165,689 14,525,670 - 14,525,670 359,993 - 359,993 20,184,037 - - - 20,184,037 20,344,253 235,398 413,451 264,230 21,257,332 DEFERRED OUTFLOWS OF RESOURCES 54,672 5,914 Unearned revenues Deferred charge on refunding 4,716 - 4,716 Differences between Expected/Actual Experience 22,349 3,630 25,979 Changes in Proportionate Share 5,832 947 - 6,780 Contributions subsequent to measurement date 64,835 10,529 75,364 Total deferred outflows of resources 97,732 15,106 112,838 LIABILITIES Current liabilities Accounts payable 54,672 5,914 Unearned revenues 57,987 246,357 Interest payable 1,715 - Current portion of noncurrent liabilities 135,586 - Total current liabilities 249,959 252,271 Noncurrent liabilities Compensated leave 163,356 - Net OPEB obligation 236,994 - Net pension liability 414,451 67,307 Bonds and notes payable (net of unamortized premiums and discounts) 996,340 - Less current portion of noncurrent liabilities (135,586) - Total noncurrent liabilities 1,675,555 67,307 Total liabilities DEFERRED INFLOWS OF RESOURCES Differences between contributions and proportionate share of contributions Net difference (projected & actual earnings) Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for capital projects Restricted for debt service Unrestricted Total net position Totals may not add due to rounding 1,925,514 319,578 60,586 - 304,343 6,488 8,202 - 135,586 6,488 508,718 163,356 - 236,994 481,758 2,595,000 3,591,340 - (135,586) 2,595,000 4,337,862 2,601,488 4,846,579 26,630 4,325 30,955 86,878 14,109 100,987 113,509 18,434 131,942 19,192,413 - (2,595,000) 16,597,413 - - 257,743 257,743 (789,451) (87,507) 413,451 - (463,507) $ 18,402,962 $ (87,507) $ 413,451 $ (2,337,257) $ 16,391,649 181 Deschutes County, Oregon Solid Waste Enterprise Operations Fund and Sub -Funds Combining Schedule of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2016 Totals may not add due to rounding 182 Solid Waste Solid Waste Solid Waste Landfill Landfill Capital Equipment Operations Closure Post -Closure Prqjects Reserve Total OPERATING REVENUES Charges for services $ 8,824,346 $ - $ - $ $ - $ 8,824,346 Miscellaneous 40,673 - - - 40,673 Total operating revenues 8,865,018 - - - 8,865,018 OPERATING EXPENSES Personnel 2,617,931 - - - 2,617,931 Materials and services 3,508,189 102,934 - 5,202 3,616,325 Landfill closure/postclosure care costs 546,199 - - - 546,199 Depreciation 2,122,399 - - - 2,122,399 Total operating expenses 8,794,719 102,934 - 5202, 8,902,855 Operating income (loss) 70,300 (102,934) - (5,202) (37,836) NONOPERATING REVENUES (EXPENSES) Investment earnings 28,119 27,120 6,807 18,950 1,666 82,662 Interest expense (369,548) - - - - (369,548) Loss on sale of capital assets - - - - Net nonoperating revenues (expenses) (341,428) 27,120 6,807 18,950 1,666 (286,886) Income (loss) before transfers (271,129) (75,814) 6,807 18,950 (3,536) (324,723) OTHER FINANCING SOURCES (USES) Inter -fund Transfers out (326,539) - - - - (326,539) Intra -fund Transfers in - 600,000 250,000 350,000 200,000 1,400,000 Transfers out (1,400,000) - - - - (1,400,000) Equity Transfer 1,890,858 (524,186) (256,807) (372,117) (737,748) Net other financing sources (uses) 164,319 75,814 (6,807) (22,117) (537,748) (326,539) Change in net position (106,810) - - (3,167) (541,284) (651,262) Net position - Beginning of year 10,356,694 - - 1,862,098 580,501 12,799,293 Net position - End of year $ 10,249,884 $ - $ - $ 1,858,931 $ 39,217 $ 12,148,031 Totals may not add due to rounding 182 Deschutes County, Oregon Fair and Expo Center Enterprise Operations Fund and Sub -Funds Combining Schedule of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2016 Fair & Expo Fairgrounds Fair & Expo Annual Center G.O. Bonds Center County Fair Reserve Debt Service Total OPERATING REVENUES Charges for services $ 1,242,116 $ 1,258,023 $ - $ - $ 2,500,139 OPERATING EXPENSES Personnel Materials and services Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grants Property taxes Investment earnings Bond issuance costs Interest expense Net nonoperating revenues (expenses) Income (loss) before transfers OTHER FINANCING SOURCES (USES) Equity transfer Inter -fund: Transfers in Intra -fund: Transfers in Transfers out Net other financing sources (uses) Change in net position Net position - Beginning of year Net position - End of year Totals may not add due to rounding 1,417,450 174,457 921,041 978,244 695,242 - 3,033,733 1,152,701 (1,791,617) 105,322 - - 1,591,908 - - 1,899,284 - 695,242 - 4,186,434 - (1,686,295) 53,667 - - 53,667 - - - 2,555,831 2,555,831 1,768 778 4,023 2,286 8,856 (3,323) - - - (3,323) (36,143) - - (64,731) (100,873) (37,698) 54,445 4,023 2,493,386 2,514,156 (1,829,314) 159,766 4,023 2,493,386 827,861 53,829 - (53,829) - - 575,851 69,296 3,506 - 648,654 283,000 - 62,740 - 345,740 (62,740) (283,000) - - (345,740) 849,940 (213,704) 12,417 - 648,654 (979,375) (53,938) 16,441 2,493,386 1,476,515 19,382,337 (33,570) 397,010 (4,830,643) 14,915,134 $ 18,402,962 $ (87,507) $ 413,451 $ (2,337,257) $ 16,391,649 183 Deschutes County, Oregon Solid Waste Enterprise Operations Fund and Sub -Funds Combining Schedule of Cash Flows Year Ended June 30, 2016 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Interfund loan made Interfund loan repayments 481,878 - - Solid Waste Solid Waste Interfund cash transfers in/out (1,726,539) 600,000 Solid Waste Landfill Landfill Capital Equipment 17,803 3,393 Operations Closure Post -Closure Projects Reserve Total 155,339 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM OPERATING ACTIVITIES Acquisition and construction of capital assets (72,006) - - (647,617) (679,788) Receipts from customers $ 8,807,186 $ $ $ $ $ 8,807,186 Payments to employees (1,967,190) 5,285,895 (1,967,190) Payments to suppliers (3,531,634) (108,454) (5,202) (3,645,290) Net cash provided (used) by operating activities 3,308,362 (108,454) (5,202) 31194,706 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Interfund loan made Interfund loan repayments 481,878 - - 481,878 Interfund cash transfers in/out (1,726,539) 600,000 250,000 350,000 200,000 (326,539) Net cash provided (used) by noncapital financing 17,803 3,393 69,545 activities (1,726,539) 1,081,878 250,000 350,000 200,000 155,339 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (72,006) - - (647,617) (679,788) (1,399,411) Sale of capital assets - 47,658 - Proceeds from refunding debt 5,285,895 5,285,895 Bond issuance costs - Principal paid on capital debt (5,820,132) (5,820,132) Interest paid on capital debt (376,987) (376,987) Net cash provided (used) by capital and related financing activities (983,230) (647,617) (679,788) (2,310,635) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - 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 Loss of write off of capital asset Change in assets, liabilities and deferred inflows/outflows Receivables, net Defined Benefit Pension Accounts (NPL,DOR & DIR) Accounts payable Compensated leave OPEB obligation Accrued closure / postclosure Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments (508,274) (804,024) (207,277) 175,398 362,134 (982,044) 23,359 20,055 4,935 17,803 3,393 69,545 (484,915) (783,969) (202,342) 193,200 365,527 (912,499) 113,677 189,455 47,658 (104,417) (119,462) 126,911 354,506 447,107 127,150 535,783 141,260 1,605,806 $ 468,183 $ 636,562 $ 174,808 $ 431,366 $ 21,797 $ 1,732,716 $ 70,301 $ (102,934) $ 2,122,399 - $ - $ (5,202) $ (37,835) 2,122,399 (57,833) (57,833) 578,423 578,423 (23,445) (5,519) (28,965) 17,359 17,359 54,958 54,958 546,199 546,199 $ 3,308,362 $ (108,454) $ $ $ (5,202) $ 3,194,706 $ 743 $ 1,010 $ Totals may not add due to rounding 184 304 $ 1,543 $ 411 $ 4,010 Deschutes County, Oregon Fair and Expo Center Enterprise Operations Fund and Sub -Funds Combining Schedule of Cash Flows Year Ended June 30, 2016 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - - - 2,576,482 2,576,482 Grants - 53,667 - - 53,667 Subfunds transfers in / (out) 220,260 (283,000) 62,740 - - Interfund transfers in / (out) 575,851 69,296 3,506 - 648,654 Net cash provided (used) by noncapital financing activities 796,111 (160,037) 66,246 2,576,482 3,278,802 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Sale of capital assets Proceeds from refunding debt Bond issuance costs 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 increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Change in assets and liabilities Receivables Prepaid expenses Defined benefit pension accounts (NPL,DOR & DIR) Accounts payable Unearned revenues Compensated leave OPEB obligation Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments Totals may not add due to rounding (53,829) - (53,829) 916,830 - - - 916,830 (3,323) Fairgrounds (981,727) Fair & Expo Annual Fair & Expo G.O. Bonds - - 406,078 Center County Fair Center Reserve Debt Service Total CASH FLOWS FROM OPERATING ACTIVITIES 24,617 - - 1,750 35,113 Receipts from customers $ 1,241,219 $ 1,282,640 $ - $ - $ 2,523,859 Payments to employees (1,016,963) (140,134) - - (1,157,097) Payments to suppliers (915,029) (980,687) - - (1,895,716) Net cash provided (used) by operating activities (690,774) 161,819 - - (528,954) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - - - 2,576,482 2,576,482 Grants - 53,667 - - 53,667 Subfunds transfers in / (out) 220,260 (283,000) 62,740 - - Interfund transfers in / (out) 575,851 69,296 3,506 - 648,654 Net cash provided (used) by noncapital financing activities 796,111 (160,037) 66,246 2,576,482 3,278,802 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Sale of capital assets Proceeds from refunding debt Bond issuance costs 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 increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Change in assets and liabilities Receivables Prepaid expenses Defined benefit pension accounts (NPL,DOR & DIR) Accounts payable Unearned revenues Compensated leave OPEB obligation Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments Totals may not add due to rounding (53,829) - (53,829) 916,830 - - - 916,830 (3,323) - - - (3,323) (981,727) - - (2,535,000) (3,516,727) (45,030) - - (103,200) (148,230) - - 406,078 6,891 (113,251) - (53,829) (2,638,200) (2,805,279) 2,545 (3,256) (19,773) 41,319 20,836 1,658 683 3,486 2,293 8,120 4,203 (2,573) (16,287) 43,612 28,956 (3,710) (791) (3,869) (18,106) (26,476) 36,510 17,448 96,609 61,045 211,611 $ 32,800 $ 16,657 $ 92,740 $ 42,939 $ 185,136 $ (1,791,617) $ 105,322 $ - $ - $ (1,686,295) 695,242 - - - 695,242 21,969 - - - 21,969 (880) (5,828) - - (6,708) 348,279 57,799 - - 406,078 6,891 1,270 - - 8,162 (22,867) 24,617 - - 1,750 35,113 (21,362) - - 13,752 17,095 - - - 17,095 $ (690,774) $ 161,819 $ - $ - $ (528,954) $ 86 $ 40 $ 228 $ 184 $ 537 185 Deschutes County, Oregon Solid Waste Operations (Sub -Fund of Solid Waste Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual Year Ended June 30, 2016 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Capital outlay Debt service Contingency Total operating expenses Operating income (loss) Final Variance Budgeted with Final Amounts Budget Actual Budget GAAP Basis Adjustments GAAP Basis $ 8,123,301 S 701,045 $ 8,824,346 $ - $ 8,824,346 29,000 11,673 40,673 - 40,673 8,152,301 712,718 8,865,019 - 8,865,019 2,084,433 117,243 1,967,190 650,740 2,617,931 3,643,447 137,565 3,505,882 2,307 3,508,189 - - - 546,199 546,199 - - - 2,122,399 2,122,399 116,450 42,137 74,313 (74,313) - 946,594 1 946,593 (946,593) - 130,000 130,000 - - - 6,920,924 426,946 61493,978 2,300,740 8,794,718 NONOPERATING REVENUES (EXPENSES) 1,231,377 1,139,664 2,371,041 (2,300,740) 70,301 Investment earnings 10,000 18,119 28,119 - 28,119 Interest expense - - - (369,548) (369,548) Sub -fund transfer of capital assets - - - 1,109,865 1,109,865 Gain (loss) on equipment disposition - - - - - Total nonoperating revenues (expenses), net 10,000 18,119 28,119 740,317 768,436 Income (loss) before transfers 1,241,377 1,157,784 2,399,161 (1,560,423) 838,737 OTHER FINANCING SOURCES (USES) Inter -fund Transfers out (326,539) - (326,539) - (326,539) Intra -Fund Net position - Beginning of year 646,922 2,479,702 3,126,624 Transfers out (1,400,000) - (1,400,000) - (1,400,000) Sub -fund equity transfer - - - 780,993 780,993 Refunding bonds issued 5,285,895 - 5,285,895 (5,285,895) - Payment to refunded bond escrow agent (5,250,526) - (5,250,526) 5,250,526 Net other financing sources (uses) (1,691,170) - (1,691,171) 745,625 (945,546) Change in net position (449,793) 1,157,784 707,990 (814,799) (106,808) Net position - Beginning of year 646,922 2,479,702 3,126,624 7,230,070 10,356,694 Net position - End of year $ 197,129 $ 3,637,485 $ 3,834,614 $ 6,415,272 $ 10,249,885 Totals may not add due to rounding 186 Deschutes County, Oregon Landfill Closure (Sub -Fund of Solid Waste Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 NONOPERATING REVENUES (EXPENSES) Investment earnings 18,265 180,788 199,053 Actual 27,121 Final - - - - Budgeted Variance with Budget GAAP 199,053 Amounts Final Budget Basis Adjustments GAAP Basis OPERATING EXPENSES 96,119 (171,932) (75,814) OTHER FINANCING SOURCES (USES) Materials and services $ 68,700 $ 53,317 $ 15,383 $ - $ 15,383 Capital outlay 225,000 137,449 87,551 - 87,551 Contingency 2,151,042 2,151,042 - - - Total operating expenses 2,444,742 2,341,808 102,934 - 102,934 Operating income (loss) (2,444,742) (2,341,808) (102,934) - (102,934) NONOPERATING REVENUES (EXPENSES) Investment earnings 18,265 180,788 199,053 (171,932) 27,121 Loan repayment - - - - - Total nonoperating revenues (expenses), net 18,265 180,788 199,053 (171,932) 27,121 Income (loss) before transfers (2,426,477) 2,522,596 96,119 (171,932) (75,814) OTHER FINANCING SOURCES (USES) Transfers in 600,000 - 600,000 - 600,000 Equity transfer - - - (524,186) (524,186) Net other financing sources (uses) 600,000 - 600,000 (524,186) 75,814 Change in net position (1,826,477) 2,522,596 696,119 (696,119) - Net position - Beginning of year 1,826,477 315,246 2,141,723 (2,141,723) - Net position - End of year $ - $ 2,837,841 $ 2,837,841 $ (2,837,841) $ - Totals may not add due to rounding 187 Deschutes County, Oregon Landfill Postclosure (Sub -Fund of Solid Waste Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Totals may not add due to rounding 188 Actual Final Budgeted Variance with Budget GAAP Amounts Final Budget Basis Adiustments GAAP Basis OPERATING EXPENSES Materials and services $ 1,000 $ 1,000 $ - $ - $ - Operating income (loss) (1,000)1,000 - - - NONOPERATING REVENUES (EXPENSES) Investment earnings 5,217 1,590 6,807 - 6,807 Total nonoperating revenues (expenses), net 5,217 1,590 6,807 - 6,807 Income (loss) before transfers 4,217 2,590 6,807 - 6,807 OTHER FINANCING SOURCES (USES) Transfers in (out) 250,000 - 250,000 - 250,000 Sub -fund equity transfer - - - (256,807) (256,807) Change in net position 254,217 2,590 256,807 (256,807) Net position - Beginning of year 521,698 819 522,517 (522,517) - Net position - End of year $ 775,915 $ 3,409 $ 779,324 $ (779,324) $ Totals may not add due to rounding 188 Deschutes County, Oregon Solid Waste Capital Projects (Sub -Fund of Solid Waste Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 OTHER FINANCING SOURCES (USES) Intra -fund Transfers in Sub -fund transfer of capital assets Change in net position Net position - Beginning of year Net position - End of year Totals may not add due to rounding 350,000 - (1,541,663) 1,538,495 350,000 - 350,000 - (372,117) (372,117) (3,167) - (3,167) 1,767,021 95,077 1,862,098 - 1,862,098 $ 225,358 $ 1,633,572 $ 1,858,931 $ - $ 1,858,931 W&I Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING EXPENSES Materials and services $ 82,199 $ 35,143 $ 47,055 $ (47,055) $ - Capital outlay 650,000 324,939 325,061 (325,061) - Contingency 1,173,134 1,173,134 - - - Total operating expenses 1,905,333 1,533,215 372,117 (372,117) - Operating income (loss) (1,905,333) 1,533,215 (372,117) (372,117) - NONOPERATING REVENUES (EXPENSES) Investment earnings 13,670 5,280 18,950 - 18,950 Income (loss) before transfers (1,891,663) 1,538,495 (353,167) (372,117) 18,950 OTHER FINANCING SOURCES (USES) Intra -fund Transfers in Sub -fund transfer of capital assets Change in net position Net position - Beginning of year Net position - End of year Totals may not add due to rounding 350,000 - (1,541,663) 1,538,495 350,000 - 350,000 - (372,117) (372,117) (3,167) - (3,167) 1,767,021 95,077 1,862,098 - 1,862,098 $ 225,358 $ 1,633,572 $ 1,858,931 $ - $ 1,858,931 W&I Deschutes County, Oregon Solid Waste Equipment Reserve (Sub -Fund of Solid Waste Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Totals may not add due to rounding 190 Actual Final Budgeted Variance with Budget GAAP Amounts Final Budget Basis Adjustments GAAP Basis OPERATING EXPENSES Materials and services $ 5,202 $ - $ 5,202 $ - $ 5,202 Capital outlay 330,000 (407,748) 737,748 (737,748) - Contingency 22,366 22,366 - - - Total operating expenses 357,568 (385,382) 742,950 (737,748) 5,202 Operating income (loss) (357,568) 385,382 (742,950) 737,748 (5,202) NONOPERATING REVENUES (EXPENSES) Investment earnings 1,560 106 1,666 - 1,666 Income (loss) before transfers (356,008) 385,487 (741,284) 737,748 (3,536) OTHER FINANCING SOURCES (USES) Appropriation Transfer 197,129 197,129 - - - Transfers in (out) 200,000 - 200,000 - 200,000 Capital asset, equity transfer - - - (737,748) (737,748) Change in net position 41,121 (582,405) (541,284) - (541,284) Net position - Beginning of year 156,008 424,493 580,501 - 580,501 Net position - End of year $ 197,129 $ (157,912) $ 39,217 $ - $ 39,217 Totals may not add due to rounding 190 Deschutes County, Oregon Fair and Expo Center (Sub -Fund of Fair and Expo Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual Year Ended June 30, 2016 NONOPERATING REVENUES (EXPENSES) Grants Investment earnings 300 1,468 1,768 Actual 1,768 Interest expense Final Variance - (36,143) (36,143) Total nonoperating revenues (expenses), net Budgeted with Final Budget GAAP (34,374) Income (loss) before transfers Amounts Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 1,170,322 $ 71,794 $ 1,242,116 $ - $ 1,242,116 OPERATING EXPENSES (62,740) - (62,740) - (62,740) Personnel 1,064,706 47,743 1,016,963 400,488 1,417,450 Materials and services 1,019,066 98,025 921,041 - 921,041 Depreciation - - - 695,242 695,242 Capital outlay - - - - - Debt service 116,709 (481) 117,190 (117,190) - Contingency 42,403 42,403 - - - Total operating expenses 2,242,884 187,691 2,057,193 978,540 3,033,733 Operating income (loss) (1,072,562) 259,485 (813,077) (978,540) (1,791,617) NONOPERATING REVENUES (EXPENSES) Grants Investment earnings 300 1,468 1,768 - 1,768 Interest expense - - - (36,143) (36,143) Total nonoperating revenues (expenses), net 300 1,468 1,768 (36,143) (34,374) Income (loss) before transfers (1,072,262) 260,953 (811,309) (1,014,682) (1,825,991) OTHER FINANCING SOURCES (USES) Transfers in 1,033,220 (174,369) 858,851 - 858,851 Transfers out (62,740) - (62,740) - (62,740) Refunding bonds issued 916,830 (0) 916,830 (916,830) - Bond issuance costs (3,324) 1 (3,323) - (3,323) Payment to refunded bond escrow agent (911,724) 2,157 (909,567) 909,567 - Equity transfer - - - 53,829 53,829 Net other financing sources (uses) 972,262 (172,211) 800,051 46,566 846,616 Change in net position (100,000) 88,742 (11,258) (968,116) (979,375) Net position - Beginning of year 100,000 (41,184) 58,816 19,323,521 19,382,337 Net position - End of year $ - $ 47,557 $ 47,557 $ 18,355,405 $ 18,402,962 Totals may not add due to rounding 191 Deschutes County, Oregon Annual County Fair (Sub -Fund of Fair and Expo Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual Year Ended June 30, 2016 OPERATING REVENUES Charges for services OPERATING EXPENSES Actual Final Variance Budgeted with Final GAAP Amounts Budget Budget Basis Adjustments GAAP Basis $ 1,284,975 $ (2,335) $ 1,282,640 $ (24,617) $ 1,258,023 Personnel 141,365 1,231 140,134 34,323 174,457 Materials and services 1,063,584 70,661 992,923 (14,679) 978,244 Contingency - - - - - Total operating expenses 1,204,949 71,892 1,133,057 19,644 1,152,701 Operating income (loss) 80,026 69,557 149,583 (44,261) 105,322 NONOPERATING REVENUES (EXPENSES) Grants 50,000 3,667 53,667 - 53,667 Investment earnings 250 528 778 - 778 Total nonoperating revenues (expenses), net 50,250 4,195 54,445 - 54,445 Income (loss) before transfers 130,276 73,752 204,028 (44,261) 159,766 OTHER FINANCING SOURCES (USES) Transfers in 164,559 (95,263) 69,296 - 69,296 Transfers out (294,835) 11,835 (283,000) - (283,000) Net other financing sources (uses) (130,276) (83,428) (213,704) - (213,704) Change in net position Net position - Beginning of year Net position - End of year Totals may not add due to rounding (9,676) (9,676) (44,261) (53,938) 77,522 77,522 (111,092) (33,570) $ - $ 67,846 $ 67,846 $ (155,353) $ (87,507) 192 Deschutes County, Oregon Fair and Expo Center Reserve (Sub -Fund of Fair and Expo Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual Year Ended June 30, 2016 OTHER FINANCING SOURCES (USES) Transfers in 62,740 3,506 66,246 - 66,246 Equity transfer - - - (53,829) (53,829) Net other financing sources (uses) 62,740 3,506 66,246 (53,829) 12,417 Change in net position (134,560) 151,001 16,441 - 16,441 Net position - Beginning of year 400,000 (2,990) 397,010 - 397,010 Net position - End of year $ 265,440 $ 148,011 $ 413,451 $ - $ 413,451 Totals may not add due to rounding 193 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING EXPENSES Capital outlay $ 200,000 $ 146,171 $ 53,829 $ (53,829) $ - Total operating expenses 200,000 146,171 53,829 (53,829) - Operating income (loss) (200,000) 146,171 (53,829) 53,829 - NONOPERATING REVENUES (EXPENSES) Investment earnings 2,700 1,323 4,023 - 4,023 Total nonoperating revenues (expenses), net 2,700 1,323 4,023 - 4,023 Income (loss) before transfers (197,300) 147,495 (49,805) 53,829 4,023 OTHER FINANCING SOURCES (USES) Transfers in 62,740 3,506 66,246 - 66,246 Equity transfer - - - (53,829) (53,829) Net other financing sources (uses) 62,740 3,506 66,246 (53,829) 12,417 Change in net position (134,560) 151,001 16,441 - 16,441 Net position - Beginning of year 400,000 (2,990) 397,010 - 397,010 Net position - End of year $ 265,440 $ 148,011 $ 413,451 $ - $ 413,451 Totals may not add due to rounding 193 Deschutes County, Oregon Fairgrounds Debt Service Fund (Sub -Fund of Fair and Expo Enterprise) Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 NONOPERATING REVENUES (EXPENSES) Investment earnings 1,000 1,286 2,286 - 2,286 Interest expense - - - (64,731) (64,731) Total nonoperating revenues (expenses), net 1,000 1,286 2,286 (64,731) (62,444) Change in net position (75,000) 12,027 (62,973) 2,556,359 2,493,386 Net position - Beginning of year 175,000 86,640 261,640 (5,092,283) (4,830,643) Net position - End of year $ 100,000 $ 98,667 $ 198,667 $ (2,535,924) $ (2,337,257) Totals may not add due to rounding 194 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Property taxes $ 2,562,200 $ 10,741 $ 2,572,941 $ (17,110) $ 2,555,831 Total operating revenues 2,562,200 10,741 2,572,941 (17,110) 2,555,831 OPERATING EXPENSES Debt service 2,638,200 - 2,638,200 (2,638,200) - Total operating expenses 2,638,200 - 2,638,200 (2,638,200) - Operating income (loss) (76,000) 10,741 (65,259) 2,621,090 2,555,831 NONOPERATING REVENUES (EXPENSES) Investment earnings 1,000 1,286 2,286 - 2,286 Interest expense - - - (64,731) (64,731) Total nonoperating revenues (expenses), net 1,000 1,286 2,286 (64,731) (62,444) Change in net position (75,000) 12,027 (62,973) 2,556,359 2,493,386 Net position - Beginning of year 175,000 86,640 261,640 (5,092,283) (4,830,643) Net position - End of year $ 100,000 $ 98,667 $ 198,667 $ (2,535,924) $ (2,337,257) Totals may not add due to rounding 194 Deschutes County, Oregon RV Park Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual Year Ended June 30, 2016 OTHER FINANCING SOURCES (USES) Transfers in 226,259 Refunding bonds issued 1,923,980 Payment to refunded bond escrow agent (1,905,367) Total other financing sources (uses) 244,872 Change in net position Net position - Beginning of year Net position - End of year (34,943) 191,316 - 1 1,923,981 (1,923,981) 1 (1,905,366) 1,905,366 (34,941) 209,931 (18,615) 191,316 191,316 (50,000) 158,454 108,454 16,607 125,062 50,000 16,186 66,186 643,939 710,125 - $ 174,641 $ 174,641 $ 660,546 $ 835,187 Totals may not add due to rounding 195 Actual Final Variance Budgeted with Final Budget GAAP Amounts Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 286,034 $ 122,479 $ 408,513 $ - $ 408,513 Total operating revenues 286,034 122,479 408,513 - 408,513 OPERATING EXPENSES Materials and services 291,148 16,199 274,950 - 274,950 Depreciation - - - 128,518 128,518 Debt service 241,745 3,549 238,196 (238,196) - Contingency 48,813 48,813 - - - Total operating expenses 581,706 68,560 513,146 (109,678) 403,467 Operating income (loss) (295,672) 191,039 (104,633) 109,678 5,045 NONOPERATING REVENUES (EXPENSES) Investment earnings 800 2,357 3,157 - 3,157 Interest expense - - - (74,456) (74,456) Total nonoperating revenues (expenses), net 800 2,357 3,157 (74,456) (71,300) Income (loss) before transfers (294,872) 193,396 (101,476) 35,222 (66,255) OTHER FINANCING SOURCES (USES) Transfers in 226,259 Refunding bonds issued 1,923,980 Payment to refunded bond escrow agent (1,905,367) Total other financing sources (uses) 244,872 Change in net position Net position - Beginning of year Net position - End of year (34,943) 191,316 - 1 1,923,981 (1,923,981) 1 (1,905,366) 1,905,366 (34,941) 209,931 (18,615) 191,316 191,316 (50,000) 158,454 108,454 16,607 125,062 50,000 16,186 66,186 643,939 710,125 - $ 174,641 $ 174,641 $ 660,546 $ 835,187 Totals may not add due to rounding 195 Combining and Individual Funds Statements and Schedules — Proprietary Funds — Internal Service Funds June 30, 2016 Deschutes County, Oregon This page left intentionally blank. Deschutes County, Oregon Internal Service Funds Combining Statements of Net Position June 30, 2016 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 not being depreciated Construction in progress Capital assets net of accumulated depreciation: Land improvements Equipment Vehicles Total capital assets Total assets DEFERRED OUTFLOWS OF RESOURCES Differences between Expected/Actual Experience Changes in Proportionate Share Contributions subsequent to measurement date Total deferred outflows of resources Property & Administrative Board of 441,042 1,005,950 Finance 38,934 Facilities Services Co Comm Finance Reserve Legal 1,506 8,208 - 3,293 $ 79,233 $ 38,266 $ 14,513 $ 42,166 $ 221,395 $ 57,523 274,004 132,330 50,189 145,816 765,624 198,924 84,668 - - 65 - 523 7,000 - - - 18,931 11,530 444,905 170,596 64,702 188,047 1,005,950 268,500 241,190 - - 3,464 - - - - - - - - 11,805 - - 3,464 - - 252,995 - - 448,370 170,596 64,702 441,042 1,005,950 268,500 38,934 21,450 5,771 31,450 - 12,619 10,161 5,598 1,506 8,208 - 3,293 112,947 62,227 16,743 91,237 - 36,608 162,041 89,275 24,020 130,895 - 52,521 LIABILITIES Current liabilities: Accounts payable 52,231 6,168 4,637 2,462 57,887 4,462 Unearned revenue - - - - - - Current portion of noncurrent liabilities 179,000 136,042 - 189,635 70,174 Total current liabilities 231,231 142,210 4,637 192,098 57,887 74,636 Noncurrent liabilities Compensated leave 215,663 163,906 - 228,476 - 84,547 Net OPEB obligation 542,932 145,428 64,635 211,140 - 129,269 Net Pension Liability 722,002 397,782 107,027 583,223 - 234,014 Accrued claims payable - - - - - - Less current portion of noncurrent liab (179,000) (136,042) - (189,635) - (70,174) Total noncurrent liabilities 1,301,597 571,074 171,661 833,204 - 377,657 Total liabilities 1,532,828 713,284 176,299 1,025,302 57,887 452,292 DEFERRED INFLOWS OF RESOURCES Changes in proportion 46,392 25,559 6,877 37,475 - 15,036 Net difference (projected & actual earnings) 151,348 83,384 22,435 122,257 - 49,055 Total deferred inflows of resources 197,740 108,943 29,312 159,731 - 64,091 NET POSITION Net investment in capital assets 3,464 - - 252,995 - - Unrestricted (1,123,621) (562,355) (116,888) (866,092) 948,063 (195,363) Total net position $ (1,120,157) $ (562,355) $ (116,888) $ (613,097) $ 948,063 $ (195,363) Totals may not add due to rounding 196 Deschutes County, Oregon Internal Service Funds Combining Statements of Net Position June 30, 2016 Noncurrent assets: Capital assets: Capital assets not being depreciated Construction in progress Capital assets net of accumulated depreciation: Land improvements Equipment Vehicles Total capital assets - 241,190 - 27,333 - 30,798 236,748 - 248,553 236,748 27,333 - 520,541 Total assets Human Information 1,054,479 5,038,006 15,020,793 Health DEFERRED OUTFLOWS OF RESOURCES Unearned revenue Resources Technology IT Reserve Insurance Benefits Total ASSETS - 5,446 1,765 171,128 Changes in Proportionate Share 2,770 11,242 Current assets: 461 44,659 Contributions subsequent to measurement date 30,794 124,965 - 15,800 Cash and cash equivalents $ 89,742 $ 99,749 $ 183,423 $ 1,123,927 $ 3,363,073 $ 5,313,010 Investments, at fair value; plus accrued interest 310,345 344,952 634,308 3,886,745 11,630,119 18,373,357 Accounts receivable 47,383 100 - - 27,601 160,341 Prepaid expenses - - - - - 37,461 Total current assets 447,471 444,801 817,731 5,010,672 15,020,793 23,884,169 Noncurrent assets: Capital assets: Capital assets not being depreciated Construction in progress Capital assets net of accumulated depreciation: Land improvements Equipment Vehicles Total capital assets - 241,190 - 27,333 - 30,798 236,748 - 248,553 236,748 27,333 - 520,541 Total assets 447,471 444,801 1,054,479 5,038,006 15,020,793 24,404,709 DEFERRED OUTFLOWS OF RESOURCES Unearned revenue - - - - Differences between Expected/Actual Experience 10,615 43,077 - 5,446 1,765 171,128 Changes in Proportionate Share 2,770 11,242 - 1,421 461 44,659 Contributions subsequent to measurement date 30,794 124,965 - 15,800 5,120 496,440 Total deferred outflows of resources 44,179 179,283 - 22,667 7,346 712,227 LIABILITIES Current liabilities Accounts payable 14,582 3,566 18,879 70,602 482,864 718,341 Unearned revenue - - - - - - Current portion of noncurrent liabilities 45,863 267,242 2,909,435 2,555,309 6,352,701 Total current liabilities 60,446 270,808 18,879 2,980,037 3,038,174 7,071,041 Noncurrent liabilities Compensated leave 55,257 321,978 - 30,030 - 1,099,857 Net OPEB obligation 148,660 344,719 - 70,021 23,699 1,680,503 Net Pension Liability 196,846 798,827 - 100,998 32,732 3,173,450 Accrued claims payable - - - 5,868,719 2,555,309 8,424,028 Less current portion of noncurrent liab (45,863) (267,242) - (2,909,435) (2,555,309) (6,352,701) Total noncurrent liabilities 354,899 1,198,282 - 3,160,333 56,431 8,025,138 Total liabilities 415,345 1,469,090 18,879 6,140,370 3,094,605 15,096,179 DEFERRED INFLOWS OF RESOURCES Changes in proportion 12,648 51,328 - 6,490 2,103 203,908 Net difference (projected & actual earnings) 41,263 167,452 - 21,171 6,861 665,227 Total deferred inflows of resources 53,912 218,780 - 27,661 8,964 869,135 NET POSTION Net investment in capital assets - - 236,748 27,333 - 520,541 Unrestricted 22,393 (1,063,786) 798,852 (1,134,692) 11,924,570 8,631,081 Total net position $ 22,393 $ (1,063,786) $ 1,035,600 $ (1,107,358) $ 11,924,570 $ 9,151,622 Totals may not add due to rounding 197 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2016 OTHER FINANCING SOURCES (USES) Transfers in Property & Administrative Board of - Finance Transfers out (40,260) Facilities Services Co Comm Finance Reserve Legal OPERATING REVENUES 241,190 (241,190) Net other financing sources (uses) (40,260) 40,000 Charges for services $ 3,122,329 $ 1,169,076 $ 380,723 $ 1,551,803 $ 240,000 $ 1,072,663 Total operating revenues 3,122,329 1,169,076 380,723 1,551,803 240,000 1,072,663 OPERATING EXPENSES (246,003) (64,592) (48,241) - (163,928) Personnel 2,803,886 1,312,506 475,364 1,815,435 - 981,463 Materials and services 1,092,118 215,001 163,562 353,765 206,954 124,829 Depreciation 5,097 - - 7,870 - - Total operating expenses 3,901,101 1,527,507 638,926 2,177,071 206,954 1,106,291 Operating income (loss) (778,772) (358,432) (258,203) (625,267) 33,046 (33,628) NONOPERATING REVENUES (EXPENSES) Investment earnings 4,105 2,079 658 2,221 13,207 2,193 Total nonoperating revenues (expenses) 4,105 2,079 658 2,221 13,207 2,193 Income (loss) before transfers (774,667) (356,352) (257,545) (623,046) 46,253 (31,435) OTHER FINANCING SOURCES (USES) Transfers in - 40,000 205,249 - 1,383,000 - Transfers out (40,260) - - (183,000) (240,000) Equity transfer 241,190 (241,190) Net other financing sources (uses) (40,260) 40,000 205,249 58,190 901,810 - Change in net position (814,927) (316,352) (52,296) (564,856) 948,063 (31,435) Net position - Beginning of year (305,230) (246,003) (64,592) (48,241) - (163,928) Net position - End of year $ (1,120,157) $ (562,355) $ (116,888) $ (613,097) $ 948,063 $ (195,363) Totals may not add due to rounding 198 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2016 Operating income (loss) (70,148) Human Information (604,009) (345,166) Health Resources Technology IT Reserve Insurance Benefits Total OPERATING REVENUES Investment earnings 4,409 5,212 8,057 47,922 Charges for services $ 1,050,518 $ 2,434,651 $ 234,000 $ 3,012,435 $ 20,150,106 $ 34,418,304 Total operating revenues 1,050,518 2,434,651 234,000 3,012,435 20,150,106 34,418,304 OPERATING EXPENSES Income (loss) before transfers (65,738) (786,055) 70,708 Personnel 837,940 2,798,352 - 402,414 125,767 11,553,126 Materials and services 282,725 427,566 83,377 3,212,698 20,369,505 26,532,100 Depreciation - - 87,971 1,333 - 102,271 Total operating expenses 1,120,665 3,225,918 171,348 3,616,445 20,495,272 38,187,498 Operating income (loss) (70,148) (791,267) 62,652 (604,009) (345,166) (3,769,194) NONOPERATING REVENUES (EXPENSES) Investment earnings 4,409 5,212 8,057 47,922 143,452 233,515 Total nonoperating revenues (expenses), net 4,409 5,212 8,057 47,922 143,452 233,515 Income (loss) before transfers (65,738) (786,055) 70,708 (556,088) (201,714) (3,535,679) OTHER FINANCING SOURCES (USES) Transfers in Transfers out Net other financing sources (uses) Change in net position Net position - Beginning of year Net position - End of year Totals may not add due to rounding 66,000 95,000 - 1,789,249 - (1,000) - (464,260) - 66,000 - 94,000 - 1,324,989 (65,738) (720,055) 70,708 (462,088) (201,714) (2,210,690) 88,131 (343,731) 964,891 (645,270) 12,126,284 11,362,312 $ 22,393 $ (1,063,786) $ 1,035,600 $ (1,107,358) $ 11,924,570 $ 9,151,622 199 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2016 Property & Administrative Board of Finance Facilities Services Co Comm Finance Reserve Legal CASH FLOWS FROM OPERATING ACTIVITIES (20,195) (31,521) 186,244 (760,735) (112,100) 4,107 Receipts from customers $ 3,135,342 $ 1,169,076 $ 380,723 $ 1,551,738 $ 240,000 $ 1,073,402 Payments to employees (2,097,746) (958,727) (385,869) (1,268,218) - (797,947) Payments to suppliers (1,108,489) (229,657) (160,430) (354,592) (167,998) (134,840) Net cash provided (used) by operating activities (70,893) (19,308) (165,576) (71,072) 72,002 140,615 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES (19,308) $ (165,576) $ (71,072) $ 72,002 $ 140,615 Transfers in 40,000 - 1,383,000 - Transfers out (40,260) - 205,249 (183,000) (240,000) Net cash provided (used) by noncapital financing activities (40,260) 40,000 205,249 (183,000) 1,143,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets 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 increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - 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 operating accruals Receivables Prepaid Expenses Defined benefit pension accounts (NPL,DOR & DIR) Accounts payable Claims payable Unearned revenues Compensated leave OPEB obligation Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments Totals may not add due to rounding (241,190) (241,190) 74,274 (20,195) (31,521) 186,244 (760,735) (112,100) 4,107 11797 431 2,964 8,318 1,355 78,380 (18,398) (31,090) 189,208 (752,417) (110,745) (827) 57,887 1,520 (255) - (32,773) 2,294 8,583 (64,864) 221,395 29,870 112,007 35,972 5,930 107,029 - 27,653 $ 79,233 $ 38,266 $ 14,513 $ 42,166 $ 221,395 $ 57,523 $ (778,772) $ (358,432) $ (258,203) $ (625,267) $ 33,046 $ (33,628) 5,097 7,870 13,268 (65) 739 - - - - (18,931) (11,530) 614,118 328,767 84,833 506,752 - 183,791 (16,371) (14,656) 3,132 (827) 57,887 1,520 (255) - - 22,871 14,522 - 25,235 (9,600) 69,150 10,490 4,662 15,230 - 9,325 $ (70,893) $ (19,308) $ (165,576) $ (71,072) $ 72,002 $ 140,615 $ 484 $ 290 $ 134 $ 110 $ 2,324 $ 518 200 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2016 Human Information Health Resources Technoloav IT Reserve Insurance Benefits Total CASH FLOWS FROM OPERATING ACTIVITIES 66,000 95,000 Receipts from customers $ 1,021,266 $ 2,434,051 $ 234,000 $ 3,012,435 $ 20,143,576 $ 34,395,608 Payments to employees (654,392) (2,058,929) - (308,591) (107,299) (8,637,718) Payments to suppliers (293,231) (433,684) (64,498) (1,737,893) (19,909,224) (24,594,536) Net cash provided (used) by operating activities 73,643 (58,562) 169,502 965,952 127,054 1,163,355 Transfers in 66,000 95,000 1,584,000 Transfers out - (1,000) (259,011) Net cash provided (used) by noncapital financing $ (70,148) $ (791,267) $ 62,652 $ (604,009) $ (345,166) $ (3,769,194) activities 66,000 94,000 - 1,324,989 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES 87,971 1,333 102,271 Capital assets (96,801) (337,991) Net cash provided (used) by capital and related (29,252) - - (6,530) (21,841) financing activities - - (96,801) - - (337,991) CASH FLOWS FROM INVESTING ACTIVITIES 160,693 676,309 - 84,075 25,417 2,664,754 Sale (purchase) of investments (65,918) (17,477) (75,425) (923,690) (471,830) (2,218,373) Interest 3,653 41653 6,811 37,954 125,212 197,253 Net cash provided (used) by investing activities (62,265) (12,824) (68,615) (885,737) (346,618) (2,021,120) Net increase (decrease)in cash and cash equivalents 11,378 (5,387) 4,087 174,215 (219,564) 129,233 Balances - Beginningofyear 78,365 105,136 179,336 949,712 3,582,637 5,183,777 Balances - End of year $ 89,742 $ 99,749 $ 183,423 $ 1,123,927 $ 3,363,073 $ 5,313,010 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (70,148) $ (791,267) $ 62,652 $ (604,009) $ (345,166) $ (3,769,194) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 87,971 1,333 102,271 Change in operating accruals Receivables (29,252) - - (6,530) (21,841) Prepaid Expenses - - - - (30,461) Defined benefit pension accounts (NPL,DOR & DIR) 160,693 676,309 - 84,075 25,417 2,664,754 Accounts payable (10,506) (6,118) 18,879 40,475 (42,231) 31,184 Claims payable - - 1,434,330 502,512 1,936,842 Unearned revenues (600) - - (855) Compensated leave (9,858) 44,245 4,697 (6,659) 85,453 OPEB obligation 32,713 18,869 - 5,051 (289) 165,201 Net cash provided (used) by operating activities $ 73,643 $ (58,562) $ 169,502 $ 965,952 $ 127,054 $ 1,163,355 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 698 $ 720 $ 1,368 $ 8,847 $ 24,168 $ 39,661 Totals may not add due to rounding 201 Deschutes County, Oregon Property and Facilities Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 OPERATING REVENUES Charges for services OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Contingency Total operating expenses Operating income (loss) Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adiustments GAAP Basis $ 3,036,470 $ 85,859 $ 3,122,329 $ - $ 3,122,329 2,193,026 95,280 2,097,746 706,140 2,803,886 1,123,605 31,487 1,092,118 - 1,092,118 - - - 5,097 5,097 100 100 - - - 157,102 157,102 - - - 3,473,833 283,969 3,189,864 711,236 3,901,101 (437,363) 369,828 (67,535) (711,236) (778,772) NONOPERATING REVENUES (EXPENSES) Investment earnings 3,800 305 4,105 - 4,105 Income (loss) before transfers (433,563) 370,133 (63,431) (711,236) (774,667) OTHER FINANCING SOURCES (USES) Transfers out (40,260) - (40,260) - (40,260) Change in net position (473,823) 370,133 (103,691) (711,236) (814,927) Net position - Beginning of year 473,823 22,542 496,365 (801,594) (305,230) Net position - End of year $ - $ 392,674 $ 392,674 $ (1,512,831) $ (1,120,157) Totals may not add due to rounding 202 Deschutes County, Oregon Administrative Services Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 1,167,014 $ 2,062 $ 1,169,076 $ - $ 1,169,076 OPERATING EXPENSES Personnel 1,011,151 52,424 958,727 353,779 1,312,506 Materials and services 227,279 12,278 215,001 - 215,001 Capital outlay 100 100 - - - Contingency 220,484 220,484 - - - Total operating expenses 1,459,014 285,286 1,173,728 353,779 1,527,507 Operating income (loss) (292,000) 287,347 (4,653) (353,779) (358,432) NONOPERATING REVENUES (EXPENSES) Investment earnings 2,000 79 2,079 - 2,079 Income (loss) before transfers (290,000) 287,427 (2,573) (353,779) (356,352) OTHER FINANCING SOURCES (USES) Transfers in 40,000 - 40,000 - 40,000 Change in net position (250,000) 287,427 37,427 (353,779) (316,352) Net position - Beginning of year 250,000 (122,998) 127,002 (373,005) (246,003) Net position - End of year $ - $ 164,429 $ 164,429 $ (726,784) $ (562,355) Totals may not add due to rounding 203 Deschutes County, Oregon Board of County Commissioners Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Totals may not add due to rounding 204 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 380,698 $ 25 $ 380,723 $ - $ 380,723 OPERATING EXPENSES Personnel 386,743 874 385,869 89,495 475,364 Materials and services 182,306 18,744 163,562 - 163,562 Capital outlay 100 100 - - - Contingency 47,298 47,298 - - - Total operating expenses 616,447 67,016 549,431 89,495 638,926 Operating income (loss) (235,749) 67,041 (168,708) (89,495) (258,203) NONOPERATING REVENUES (EXPENSES) Investment earnings 500 158 658 - 658 Income (loss) (235,249) 67,199 (168,050) (89,495) (257,545) OTHER FINANCING SOURCES (USES) Transfers In 205,249 - 205,249 - 205,249 Change in net position (30,000) 67,199 37,199 (89,495) (52,296) Net position - Beginning of year 30,000 (7,134) 22,866 (87,458) (64,592) Net position - End of year $ - $ 60,065 $ 60,065 $ (176,953) $ (116,888) Totals may not add due to rounding 204 Deschutes County, Oregon Finance Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 NONOPERATING REVENUES (EXPENSES) Investment earnings 6,800 (4,579) 2,221 Actual 2,221 Total nonoperating revenues (expenses), net Final (4,579) 2,221 - 2,221 Income (loss) Budgeted Variance with (67,959) GAAP (623,046) OTHER FINANCING SOURCES (USES) Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES (183,000) - (183,000) - (183,000) Charges for services $ 1,537,608 $ 14,195 $ 1,551,803 $ - $ 1,551,803 OPERATING EXPENSES (183,000) - (183,000) 241,190 58,190 Personnel 1,344,689 76,471 1,268,218 547,218 1,815,435 Materials and services 365,576 11,811 353,765 - 353,765 Depreciation - - - 7,870 7,870 Capital outlay - - - - - Contingency 137,143 137,143 - - - Total operating expenses 1,847,408 225,425 1,621,983 555,088 2,177,071 Operating income (loss) (309,800) 239,620 (70,180) (555,088) (625,267) NONOPERATING REVENUES (EXPENSES) Investment earnings 6,800 (4,579) 2,221 - 2,221 Total nonoperating revenues (expenses), net 6,800 (4,579) 2,221 - 2,221 Income (loss) (303,000) 235,041 (67,959) (555,088) (623,046) OTHER FINANCING SOURCES (USES) Transfers out (183,000) - (183,000) - (183,000) Equity transfer - - - 241,190 241,190 Total other financing sources (uses) (183,000) - (183,000) 241,190 58,190 Change in net position (486,000) 235,041 (250,959) (313,898) (564,856) Net position - Beginning of year 486,000 (28,993) 457,007 (505,248) (48,241) Net position - End of year $ - $ 206,048 $ 206,048 $ (819,145) $ (613,097) Totals may not add due to rounding 205 Deschutes County, Oregon Finance Reserve Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 240,000 $ - $ 240,000 $ - $ 240,000 OPERATING EXPENSES Materials and services 1,283,000 1,076,046 206,954 - 206,954 Capital outlay 100,000 (141,190) 241,190 (241,190) - Total operating expenses 1,383,000 934,856 448,144 (241,190) 206,954 Operating income (loss) (1,143,000) 934,856 (208,144) 241,190 33,046 NONOPERATING REVENUES (EXPENSES) Investment earnings - 13,207 13,207 - 13,207 Total nonoperating revenues (expenses), net - 13,207 13,207 - 13,207 Income (loss) (1,143,000) 948,063 (194,937) 241,190 46,253 OTHER FINANCING SOURCES (USES) Transfers in 1,383,000 - 1,383,000 1,383,000 Transfers out (240,000) - (240,000) - (240,000) Equity transfer - - - (241,190) (241,190) Total other financing sources (uses) 1,143,000 - 1,143,000 (241,190) 901,810 Change in net position - 948,063 948,063 - 948,063 Net position - Beginning of year Net position - End of year $ - $ 948,063 $ 948,063 $ - $ 948,063 Totals may not add due to rounding 206 Deschutes County, Oregon Legal Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 995,554 $ 77,109 $ 1,072,663 $ - $ 1,072,663 Total operating revenues 995,554 77,109 1,072,663 - 1,072,663 OPERATING EXPENSES Personnel 878,590 80,643 797,947 183,516 981,463 Materials and services 134,020 9,191 124,829 - 124,829 Capital outlay 100 100 - - - Contingency 118,558 118,558 - - - Total operating expenses 1,131,268 208,492 922,776 183,516 1,106,291 Operating income (loss) (135,714) 285,601 149,887 (183,516) (33,628) NONOPERATING REVENUES (EXPENSES) Investment earnings 1,000 1,193 2,193 - 2,193 Change in net position (134,714) 286,794 152,080 (183,516) (31,435) Net position - Beginning of year 134,714 (25,247) 109,467 (273,395) (163,928) Net position - End of year $ - $ 261,547 $ 261,547 $ (456,910) $ (195,363) Totals may not add due to rounding 207 Deschutes County, Oregon Human Resources Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 1,091,136 $ (40,618) $ 1,050,518 $ - $ 1,050,518 Total operating revenues 1,091,136 (40,618) 1,050,518 - 1,050,518 OPERATING EXPENSES Personnel Materials and services Capital outlay Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Income (loss) before transfers OTHER FINANCING SOURCES (USES) Transfers in Change in net position 772,230 117,838 654,392 183,548 837,940 364,104 81,379 282,725 - 282,725 100 100 - - - 125,089 125,089 - - - 1,261,523 324,406 937,117 183,548 1,120,665 (170,387) 283,787 113,400 (183,548) (70,148) - 4,409 4,409 - 4,409 (170,387) 288,197 117,810 (183,548) (65,738) (170,387) 288,197 117,810 (183,548) (65,738) Net position - Beginning of year 170,387 126,715 297,102 (208,971) 88,131 Net position - End of year $ - $ 414,912 $ 414,912 $ (392,519) $ 22,393 Totals may not add due to rounding 208 Deschutes County, Oregon Information Technology Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Contingency Total operating expenses Operating income (loss) Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 2,405,548 $ 29,103 $ 2,434,651 $ - $ 2,434,651 2,405,548 29,103 2,434,651 - 2,434,651 2,138,295 79,366 2,058,929 739,422 2,798,352 504,088 76,522 427,566 - 427,566 100 100 - - - 221,664 221,664 - - - 2,864,147 377,652 2,486,495 739,422 3,225,918 (458,599) 406,754 (51,845) (739,422) (791,267) NONOPERATING REVENUES (EXPENSES) Investment earnings 3,000 2,212 5,212 - 51212 Income (loss) before transfers (455,599) 408,966 (46,633) (739,422) (786,055) OTHER FINANCING SOURCES (USES) Transfers in 66,000 - 66,000 - 66,000 Change in net position (389,599) 408,966 19,367 (739,422) (720,055) Net position - Beginning of year 389,599 32,269 421,868 (765,598) (343,731) Net position - End of year $ - $ 441,235 $ 441,235 $ (1,505,021) $ (1,063,786) Totals may not add due to rounding 209 Deschutes County, Oregon IT Reserve Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual Year Ended June 30, 2016 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adiustments GAAP Basis OPERATING REVENUES Charges for services $ 234,000 $ - $ 234,000 $ - $ 234,000 OPERATING EXPENSES Materials and services Depreciation Capital outlay Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings 119,000 35,623 83,377 - 83,377 - - - 87,971 87,971 100,000 3,200 96,801 (96,801) - 219,000 38,822 180,178 (8,829) 171,348 15,000 38,822 53,822 8,829 62,652 Change in net position - 8,057 8,057 - 8,057 15,000 46,879 61,879 8,829 70,708 Net position - Beginning of year 602,715 134,258 736,973 227,918 964,891 Net position - End of year $ 617,715 $ 181,137 $ 798,852 $ 236,748 $ 1,035,600 Totals may not add due to rounding 210 Deschutes County, Oregon Insurance Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 NONOPERATING REVENUES (EXPENSES) Investment earnings 25,000 22,922 47,922 - 47,922 Actual 25,000 22,922 47,922 Final Income (loss) before transfers (3,294,000) 4,267,398 973,398 (1,529,486) (556,088) OTHER FINANCING SOURCES (USES) Budgeted Variance with GAAP 95,000 - 95,000 Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES 94,000 - 94,000 - 94,000 Charges for services $ 2,939,104 $ 73,331 $ 3,012,435 $ - $ 3,012,435 Total operating revenues 2,939,104 73,331 3,012,435 - 3,012,435 OPERATING EXPENSES Personnel 339,585 30,994 308,591 93,823 402,414 Materials and services 2,659,736 881,368 1,778,368 1,434,330 3,212,698 Depreciation - - - 1,333 1,333 Capital outlay 100 100 - - - Contingency 3,258,683 3,258,683 - - - Total operating expenses 6,258,104 4,171,146 2,086,958 1,529,486 3,616,445 Operating income (loss) (3,319,000) 4,244,477 925,477 (1,529,486) (604,009) NONOPERATING REVENUES (EXPENSES) Investment earnings 25,000 22,922 47,922 - 47,922 Total nonoperating revenues (expenses), net 25,000 22,922 47,922 - 47,922 Income (loss) before transfers (3,294,000) 4,267,398 973,398 (1,529,486) (556,088) OTHER FINANCING SOURCES (USES) Transfers in 95,000 - 95,000 95,000 Transfers out (1,000) - (1,000) - (1,000) Total other financing sources (uses) 94,000 - 94,000 - 94,000 Change in net position Net position - Beginning of year Net position - End of year Totals may not add due to rounding (3,200,000) 4,267,398 1,067,398 (1,529,486) (462,088) 3,200,000 672,672 3,872,672 (4,517,942) (645,270) $ - $ 4,940,070 $ 4,940,070 $ (6,047,428) $ (1,107,358) 211 Deschutes County, Oregon Health Benefits Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Year Ended June 30, 2016 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 20,384,000 $ (233,894) $ 20,150,106 $ - $ 20,150,106 OPERATING EXPENSES Personnel 117,753 10,454 107,299 18,469 125,767 Materials and services 19,906,594 39,602 19,866,992 502,512 20,369,505 Contingency 13,661,653 13,661,653 - - - Total operating expenses 33,686,000 13,711,709 19,974,291 520,981 20,495,272 Operating income (loss) (13,302,000) 13,477,815 175,815 (520,981) (345,166) NONOPERATING REVENUES (EXPENSES) Investment earnings 112,000 31,452 143,452 - 143,452 Change in net position (13,190,000) 13,509,267 319,267 (520,981) (201,714) Net position - Beginning of year 13,190,000 1,028,662 14,218,662 (2,092,378) 12,126,284 Net position - End of year $ - $ 14,537,929 $ 14,537,929 $ (2,613,359) $ 11,924,570 Totals may not add due to rounding 212 Other Financial Schedules June 30, 2016 Deschutes County, Oregon Deschutes County, Oregon Schedule of Property Taxes Transactions - All County Taxes Fiscal Year Ended June 30, 2016 Beginning Turnovers Taxes Balance and Interest from County Receivable Tax Year FY 2016 Levy Adjustments (Discount) Treasurer June 30, 2016 FY 2007 & Prior $ 52,300 $ (1,772) $ 6,978 $ 12,753 $ 44,752 FY 2008 15,738 (2,008) 1,259 2,724 12,265 FY 2009 56,369 (25,902) 7,770 18,283 19,955 FY 2010 75,217 (28,789) 12,564 31,329 27,663 FY 2011 107,692 (28,813) 17,784 49,965 46,698 FY 2012 365,084 (26,234) 99,097 364,367 73,579 FY 2013 959,666 (27,331) 210,199 883,630 258,903 FY 2014 1,806,521 (24,832) 196,362 1,175,811 802,240 FY 2015 4,764,890 (28,255) 228,559 3,172,098 1,793,096 FY 2016 318,180,186 (2,852,885) (7,857,810) 302,841,611 4,627,881 TOTALS $ 326,383,662 $ (3,046,822) $ (7,077,239) 308,552,570 $ 7,707,032 Other Distributions: Interest earned on unsegregated taxes 40,683 Other tax distribution 215,534 TOTAL CASH COLLECTIONS $ 308,808,787 Summary: Deschutes County General Fund $ 661,074 Special Revenue Funds 905,147 Debt Service Funds 11,281 Proprietary Funds 72,800 Other taxing jurisdictions 6,056,730 $ 7,707,032 Totals may not add due to rounding 213 Deschutes County, Oregon Schedule of Long -Term Debt Transactions Fiscal Year Ended June 30, 2016 Final Amount of Outstanding Bonds Outstanding Date of Maturity Original July 1, Bonds Called and June 30, Issue Date Issue 2016 Issued Matured 2016 Series BONDSPAYABLE General Obligation Bonds Series 1996 10/01/1996 06/01/2016 $ 1,145,000 $ 90,000 $ - $ 90,000 $ - Refunding Series 2012 12/19/2012 12/01/2016 12,640,000 5,130,000 - 2,535,000 2,595,000 Total General Obligation Bonds 13,785,000 5,220,000 - 2,625,000 2,595,000 Pension Bonds Series 2002 03/28/2002 06/01/2028 5,429,586 4,120,949 - 85,634 4,035,315 Series 2004 05/27/2004 06/01/2028 7,090,000 6,415,000 - 215,000 6,200,000 Total Pension Bonds 12,519,586 10,535,949 - 300,634 10,235,315 Full Faith and Credit Bonds Refunding Series 2004 09/15/2004 12/01/2015 1,790,000 175,000 - 175,000 - Series 2005 02/01/2005 12/01/2024 6,300,000 3,725,000 - 3,725,000 - Refunding Series 2005 08/11/2005 06/01/2018 5,915,000 1,585,000 - 510,000 1,075,000 Series 2007 04/10/2007 06/01/2027 9,615,000 6,680,000 6,680,000 - Series 2008 12/30/2008 06/01/2028 9,635,000 7,480,000 - 450,000 7,030,000 Series 2009 04/09/2009 06/01/2028 3,215,000 2,435,000 150,000 2,285,000 Series 2010 05/27/2010 12/01/2029 1,320,000 1,105,000 55,000 1,050,000 Refunding Series 2012 03/29/2012 12/01/2032 26,345,000 24,035,000 - 1,085,000 22,950,000 Series 2013 08/08/2013 06/01/2038 8,405,000 7,965,000 - 225,000 7,740,000 Refunding Series 2015 12/08/2015 12/01/2026 3,775,000 - 3,775,000 - 31775,000 Refunding Series 2016 05/25/2016 06/01/2027 6,277,000 6,277,000 6,277,000 Total Full Faith and Credit Bonds 82,592,000 55,185,000 10,052,000 13,055,000 52,182,000 Total all Bonds 108,896,586 70,940,949 10,052,000 15,980,634 65,012,315 Notes Payable Oregon Economic Development 01/01/2003 01/01/2027 550,000 343,486 343,486 - Total Notes Payable 550,000 343,486 - 343,486 - Total Long -Term Debt $ 109,446,586 $ 71,284,435 $ 10,052,000 $ 16,324,120 $ 65,012,315 Totals may not add due to rounding 214 Deschutes County, Oregon Schedule of Long -Term Debt Interest Transactions Fiscal Year Ended June 30, 2016 Totals may not add due to rounding 215 Unmatured Unmatured Interest and and Rates on Outstanding Coupons Outstanding Outstanding July 1, Bonds Called and June 30, Balances 2015 Issued Matured 2016 Series BONDSPAYABLE General Obligation Bonds Series 1996 5.70% $ 5,130 $ $ 5,130 $ - Refunding Series 2012 3.00% 142,125 103,200 38,925 Total General Obligation Bonds 147,255 - 108,330 38,925 Pension Bonds Series 2002 6.85% 3,405,941 402,474 3,003,468 Series 2004 5.35% - 6.095% 3,224,619 387,515 2,837,104 Total Pension Bonds 6,630,560 789,989 5,840,571 Full Faith and Credit Bonds Refunding Series 2004 3.40% 2,975 2,975 - Series 2005 3.75%-4.2% 797,689 797,689 - Refunding Series 2005 3.75%-4% 124,020 60,545 63,475 Series 2007 4-4.25% 1,912,875 - 1,912,875 - Series 2008 4-4.625% 2,484,871 - 320,149 2,164,723 Series 2009 3.375 - 4.45% 780,854 99,934 680,920 Series 2010 2-4% 336,586 37,071 299,514 Refunding Series 2012 2-4% 6,964,869 - 695,489 6,269,381 Series 2013 3.25-4.5% 4,571,981 - 317,931 4,254,050 Refunding Series 2015 1.99-2.49% - 409,204 36,101 373,104 Refunding Series 2016 1.68% - 652,371 652,371 Total Full Faith and Credit Bonds 17,976,721 1,061,575 4,280,759 14,757,538 Total all Bonds 24,754,536 1,061,575 5,179,077 20,637,034 Notes Payable Oregon Economic Development 5.00% 119,673 - 119,673 - Total Notes Payable 119,673 - 119,673 - Total Long -Term Debt $ 24,874,209 $ 1,061,575 $ 5,298,751 $ 20,637,034 Totals may not add due to rounding 215 Deschutes County, Oregon Schedule of Future Debt Service Requirements General Obligation Bonds June 30, 2016 Business Activities Total Requirements Ref Series 2012 Year of Maturity Principal Interest Total Principal Interest 2017 $ 2,595,000 $ 38,925 $ 2,633,925 $ 2,595,000 $ 38,925 $ 2,595,000 $ 38,925 $ 2,633,925 $ 2,595,000 $ 38,925 Totals may not add due to rounding 216 Year of Maturity Principal Deschutes County, Oregon Schedule of Future Debt Service Requirements Pension Obligation Bonds June 30, 2016 Total Requirements Interest Total Series 2002 Series 2004 Principal Interest Principal Interest 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 $ 10,235,315 $ 5,840,571 $ 16,075,886 $ 4,035,315 $ 3,003,468 $ 6,200,000 $ 2,837,104 Totals may not add due to rounding 217 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Governmental Activities June 30, 2016 Total Requirements Year of Maturity Principal Interest Total 2017 $ 2,559,255 $ 1,353,782 $ 3,913,037 2018 2,635,671 1,274,098 3,909,770 2019 2,155,590 1,185,460 3,341,050 2020 2,225,539 1,114,757 3,340,296 2021 2,293,510 1,046,422 3,339,932 2022 2,367,236 978,363 3,345,599 2023 2,451,317 896,225 3,347,543 2024 2,405,329 810,558 3,215,888 2025 2,489,863 727,223 3,217,087 2026 2,343,015 640,099 2,983,114 2027 2,425,858 552,223 2,978,080 2028 2,517,678 460,607 2,978,285 2029 1,599,498 364,980 1,964,477 2030 1,659,273 311,798 1,971,071 2031 1,619,048 258,009 1,877,056 2032 1,677,800 203,471 1,881,271 2033 1,732,575 145,876 1,878,451 2034 435,000 107,550 542,550 2035 455,000 87,975 542,975 2036 480,000 67,500 547,500 2037 500,000 45,900 545,900 2038 520,000 23,400 543,400 $ 39,548,053 $ 12,656,277 $ 52,204,330 Totals may not add due to rounding 218 Ref Series 2005 Principal 530,000 545,000 Interest 41,675 21,800 $ 1,075,000 $ 63,475 Totals may not add due to rounding 219 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Governmental Activities June 30, 2016 Series 2008 Series 2009 Series 2010 Year of Maturity Principal Interest Principal Interest Principal Interest 2017 $ 465,000 $ 302,149 $ 155,000 $ 94,684 $ 60,000 $ 35,809 2018 485,000 283,549 160,000 89,181 60,000 34,309 2019 500,000 264,149 165,000 83,501 65,000 32,628 2020 525,000 244,149 170,000 76,901 65,000 30,799 2021 545,000 223,149 175,000 70,101 65,000 28,858 2022 565,000 200,531 185,000 63,101 70,000 26,713 2023 590,000 176,519 190,000 55,470 70,000 24,394 2024 615,000 151,149 200,000 47,633 75,000 21,806 2025 640,000 124,243 210,000 39,383 80,000 18,900 2026 670,000 95,763 215,000 30,038 80,000 15,900 2027 700,000 65,613 225,000 20,470 85,000 12,700 2028 730,000 33,763 235,000 10,458 90,000 9,200 2029 - - - - 90,000 5,600 2030 - - - - 95,000 1,900 2031 - - - - - - 2032 - - - - - - 2033 - - - - - - 2034 - - - - - - 2035 - - - - - - 2036 - - - - - - 2037 - - - - - - 2038 - - - - - - $ 7,030,000 $ 2,164,723 $ 2,285,000 $ 680,920 $ 1,050,000 $ 299,514 Totals may not add due to rounding 219 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Governmental Activities June 30, 2016 Ref Series 2012 Year of Maturity Principal Interest 2017 $ 915,402 $ 531,950 2018 943,863 508,780 2019 968,484 479,972 2020 1,001,091 450,591 2021 1,029,600 425,136 2022 1,058,159 398,449 2023 1,094,824 365,310 2024 994,375 330,984 2025 1,022,218 303,221 2026 1,058,015 272,017 2027 1,085,858 239,859 2028 1,117,678 206,806 2029 1,149,498 172,799 2030 1,189,273 137,717 2031 1,229,048 100,828 2032 1,272,800 61,890 2033 1,312,575 21,001 2034 - - 2035 - - 2036 - - 2037 - - 2038 - - 405,000 $ 18,442,758 $ 5,007,309 Totals may not add due to rounding Series 2013 Ref Series 2015 Principal Interest Principal Interest $ 235,000 $ 311,181 $ 198,853 $ 36,335 240,000 304,131 201,809 32,348 250,000 296,931 207,106 28,280 255,000 288,181 209,448 24,135 265,000 279,256 213,909 19,922 275,000 269,981 214,077 19,587 285,000 260,356 221,493 14,177 295,000 250,381 225,954 8,606 305,000 238,581 232,646 2,896 320,000 226,381 - - 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 - - $ 7,740,000 $ 4,254,050 $ 1,925,295 $ 186,286 220 Totals may not add due to rounding 221 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds - Business -Type Activities June 30, 2016 Total Requirements Refunding Series 2012 Refunding Series 2015 Refunding Series 2016 Year of Maturity Principal Interest Total Principal Interest Principal Interest Principal Interest 2017 $ 911,145 $ 272,638 $ 1,183,783 $ 204,598 $ 130,464 $ 185,547 $ 34,963 $ 521,000 $ 107,211 2018 931,829 253,234 1,185,062 211,137 125,284 187,691 31,249 533,000 96,701 2019 951,110 234,064 1,185,174 216,516 118,842 191,594 27,475 543,000 87,746 2020 969,061 214,544 1,183,604 223,909 112,273 193,152 23,647 552,000 78,624 2021 991,090 195,656 1,186,747 230,400 106,578 200,691 19,728 560,000 69,350 2022 1,004,364 180,238 1,184,602 236,841 100,605 199,523 19,690 568,000 59,942 2023 1,030,283 158,250 1,188,533 245,176 93,185 205,107 14,665 580,000 50,400 2024 1,054,871 135,261 1,190,132 255,625 85,086 208,246 9,519 591,000 40,656 2025 1,077,037 112,947 1,189,984 262,783 77,949 213,254 4,271 601,000 30,727 2026 914,685 91,767 1,006,452 271,985 69,928 32,700 1,209 610,000 20,630 2027 929,343 72,444 1,001,787 279,143 61,661 32,200 401 618,000 10,382 2028 287,323 53,164 340,486 287,323 53,164 - - - - 2029 295,503 44,421 339,924 295,503 44,421 - - - 2030 305,728 35,403 341,131 305,728 35,403 - - - 2031 315,953 25,920 341,872 315,953 25,920 - - - 2032 327,200 15,910 343,110 327,200 15,910 - - - 2033 337,425 5,399 342,824 337,425 5,399 - - - - $12,633,947 $ 2,101,260 $14,735,207 $ 4,507,242 $ 1,262,071 $ 1,849,705 $ 186,818 76 $ 652,371 Totals may not add due to rounding 221 Statistical Section June 30, 2016 Deschutes County, Oregon Deschutes County, Oregon 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 224-231 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 232-237 These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. Debt Capacity 238-244 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 245-246 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 248-253 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. 223 Deschutes County, Oregon Net Position by Component — Last Ten Fiscal Years (accrual basis of accounting) Business -type activities Fiscal Year Invested in capital assets, net of related debt 2007 2008 2009 2010 2011 Governmental activities 7,004,402 1,172,262 1,130,284 1,177,729 1,191,785 Invested in capital assets, net of related debt $ 48,887,100 $ 70,023,840 $ 76,240,077 $ 89,5849653 $ 92,525,275 Restricted 2,292,308 2,261,887 2,411,903 3,755,874 3,979,615 Unrestricted 60,027,183 63,957,826 67,437,330 72,846,870 73,592,055 Total governmental activities net position $ 111,206,591 $ 136,243,553 $ 146,089,310 $ 166,187,397 $ 170,096,945 Business -type activities Invested in capital assets, net of related debt $ 12,921,454 $ 17,577,695 $ 20,821,757 $ 23,311,911 $ 25,780,444 Restricted 7,004,402 1,172,262 1,130,284 1,177,729 1,191,785 Unrestricted 5,320,037 8,835,465 4,004,099 615,719 (1,399,646) Total business -type activities net position $ 25,245,893 $ 27,585,422 $ 25,956,140 $ 25,105,359 $ 25,572,583 Primary government Invested in capital assets, net of related debt $ 61,808,554 $ 87,601,535 $ 97,061,834 $ 112,896,564 $ 118,305,719 Restricted 9,296,710 3,434,149 3,542,187 4,933,603 5,171,400 Unrestricted 65,347,220 72,793,291 71,441,429 73,462,589 72,192,409 Total primary government net position $ 136,452,484 $ 163,828,975 $ 172,045,450 $ 191,292,756 $ 195,669,528 Totals may not add due to rounding 224 Deschutes County, Oregon Net Position by Component — Last Ten Fiscal Years (accrual basis of accounting) Business -type activities Fiscal Year Invested in capital assets, net of related debt 2012 2013 2014 2015 2016 Governmental activities 951,696 726,437 326,768 416,356 257,743 Invested in capital assets, net of related debt $ 95,512,157 $ 89,462,800 $ 90,528,453 $ 91,385,492 $ 101,724,105 Restricted 4,015,788 2,368,923 899,558 57,774,179 60,999,381 Unrestricted 71,206,363 76,086,991 85,864,467 13,564,091 (9,004,273) Total governmental activities net position $ 170,734,308 $ 167,918,714 $ 177,292,478 $ 162,723,762 $ 153,719,213 Business -type activities Invested in capital assets, net of related debt $ 25,824,953 $ 27,369,640 $ 27,996,595 $ 31,628,811 $ 33,549,044 Restricted 951,696 726,437 326,768 416,356 257,743 Unrestricted (1,667,939) (3,269,965) (1,578,435) (3,620,616) (4,431,920) Total business -type activities net position $ 25,108,710 $ 24,826,112 $ 26,744,928 $ 28,424,551 $ 29,374,867 Primary government Invested in capital assets, net of related debt $ 121,337,110 $ 116,832,440 $ 118,525,048 $ 123,014,302 $ 135,273,150 Restricted 4,967,484 3,095,362 1,226,325 58,190,535 61,257,124 Unrestricted 69,538,424 72,817,030 84,286,032 9,943,475 (13,436,194) Total primary government net position $ 195,843,018 $ 192,744,832 $ 204,037,405 $ 191,148,313 $ 183,094,080 Totals may not add due to rounding 225 Deschutes County, Oregon Changes in Net Position — Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 226 Fiscal Year 2007 2008 2009 2010 2011 Expenses Governmental activities: General government $ 24,161,521 $ 26,992,445 $ 27,241,378 $ 24,782,169 $ 22,540,890 Public safety 39,055,432 45,723,250 47,493,147 50,033,277 53,944,031 County roads 13,360,074 14,609,557 17,478,873 14,701,828 18,600,706 Health and welfare 23,923,726 22,733,857 23,203,391 23,831,929 28,828,892 Education 1,217,999 1,213,866 1,137,873 1,078,769 979,980 Interest and fiscal charges 3,221,880 3,160,571 3,311,808 3,401,395 3,275,788 Total governmental activities expenses 104,940,632 114,433,546 119,866,470 117,829,367 128,170,287 Business -type activities: Solid waste 7,033,143 6,462,905 8,414,867 7,335,596 7,347,661 Fair & expo center 4,275,272 4,539,224 4,152,893 3,710,074 3,819,399 RV park 312,882 322,179 343,898 Total business -type activities expenses 11,308,415 11,002,129 12,880,642 11,367,849 11,510,958 Total primary government expenses $ 116,249,047 $ 125,435,675 $ 132,747,112 $ 129,197,216 $ 139,681,245 Program Revenues Governmental activities: Charges for services: General government $ 14,021,619 $ 9,692,948 $ 14,590,354 $ 12,272,431 $ 11,744,342 Public safety 5,638,521 11,503,488 3,665,436 7,508,624 7,434,816 County roads 15,208,589 14,899,440 12,822,399 13,118,125 13,808,489 Health and welfare 4,913,531 5,134,211 1,146,444 1,018,990 1,747,716 Education 1,022,945 1,021,353 919,915 - - Operating grants and contributions 24,221,298 22,035,484 30,390,518 29,127,520 32,195,732 Capital grants and contributions 1,991,818 16,335,611 1,780,050 9,209,437 765,663 Total governmental activities program revenues 67,018,321 80,622,535 65,315,116 72,255,127 67,696,758 Business -type activities: Charges for services: Solid waste 8,221,483 7,749,609 6,639,633 6,362,100 6,665,487 Fair & expo center 2,199,765 2,709,993 1,912,771 1,536,329 1,992,262 RV park - - 89,005 115,126 162,049 Operating grants and contributions 106,808 84,955 54,405 85,765 39,271 Capital grants and contributions 94,190 Total business -type activities program revenues 10,528,056 10,638,747 8,695,814 8,099,320 8,859,069 Total primary government program revenues $ 77,546,377 $ 91,261,282 $ 74,010,930 $ 80,354,447 $ 76,555,827 Net (Expense)/Revenue Governmental activities $ (37,922,311) $ (33,811,011) $ (54,551,354) $ (45,574,240) $ (60,473,529) Business -type activities (780,359) (363,382) (4,184,828) (3,268,529) (2,651,889) Total primary government net expense $ (38,702,670) $ (34,174,393) $ (58,736,182) $ (48,842,769) $ (63,125,418) General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, levied for general purpose $ 25,894,192 $ 26,369,350 $ 31,833,253 $ 33,441,245 $ 33,663,728 Property taxes, levied for sheriff services 15,368,010 21,530,214 22,976,966 24,094,637 23,666,633 Property taxes, levied for bonded debt 2,935,056 3,097,850 3,233,344 3,513,631 3,460,558 Transient room tax 3,299,895 3,535,226 3,212,173 2,959,337 3,151,974 Investment earnings 4,250,120 4,068,901 2,892,642 1,450,594 981,569 Interfund equity transfer (6,016) - - - - Gain (loss) on sale of capital assets (27,954) - - - Transfers (584,556) 246,431 248,733 212,883 (541,385) Loss on discontinued project Total governmental activities 51,128,747 58,847,972 64,397,111 65,672,327 64,383,077 Business -type activities: Taxes Property taxes, levied for bonded debt 2,013,593 1,959,960 2,292,465 2,459,814 2,505,852 Investment earnings 1,324,391 989,381 511,814 170,817 71,876 Interfund equity transfer 6,016 - - - - Gain (loss) on sale of capital assets (12,974) - Transfers 584,556 (246,431) (248,733) (212,883) 541,385 Total business -type activities 3,915,582 2,702,910 2,555,546 2,417,748 3,119,113 Total primary government $ 55,044,329 $ 61,550,882 $ 66,952,657 $ 68,090,075 $ 67,502,190 Change in Net Position Governmental activities $ 13,206,436 $ 25,036,961 $ 9,845,757 $ 20,098,087 $ 3,909,548 Business -type activities 3,135,223 2,339,528 (1,629,282) (850,781) 467,224 Total primary government $ 16,341,659 $ 27,376,489 $ 8,216,475 $ 19,247,306 $ 4,376,772 Continued Totals may not add due to rounding 226 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not add due to rounding 227 Fiscal Year 2012 2013 2014 2015 2016 Expenses Governmental activities: General government $ 24,888,722 $ 25,312,619 $ 25,801,150 $ 24,792,417 $ 34,853,689 Public safety 56,696,103 57,806,152 57,786,656 46,351,357 74,941,547 County roads 16,436,367 16,139,486 15,441,429 16,818,974 18,269,586 Health and welfare 30,416,145 31,682,855 35,154,506 31,944,749 43,850,703 Education 687,511 684,632 685,916 656,218 610,125 Interest and fiscal charges 2,716,110 2,485,174 2,556,364 2,385,397 2,284,295 Total governmental activities expenses 131,840,958 134,110,918 137,426,020 122,949,114 174,809,945 Business -type activities: Solid waste 7,801,912 8,122,538 6,327,028 7,614,444 9,272,404 Fair & expo center 3,876,575 3,392,264 3,368,464 3,466,338 4,290,630 RV park 338,003 339,145 355,752 473,792 477,924 Total business -type activities expenses 12,016,490 11,853,947 10,051,244 11,554,573 14,040,958 Total primary government expenses $ 143,857,448 $ 145,964,865 $ 147,477,264 $ 134,503,687 $ 188,850,903 Program Revenues Governmental activities: Charges for services: General government $ 9,975,482 $ 11,827,132 $ 11,593,147 $ 14,463,863 $ 18,675,554 Public safety 6,317,924 8,876,636 6,252,467 6,051,487 5,620,314 County roads 15,917,719 14,730,662 16,933,084 17,690,071 19,168,851 Health and welfare 2,062,633 2,243,963 5,222,623 1,836,516 2,021,579 Education - - - - - Operating grants and contributions 33,630,072 31,233,012 40,070,038 40,911,962 42,990,874 Capital grants and contributions 232,363 86,514 437,240 193,226 7,003,178 Total governmental activities program revenues 68,136,193 68,997,919 80,508,599 81,147,126 95,480,351 Business -type activities: Charges for services: Solid waste 6,506,366 6,793,369 7,364,322 8,088,089 8,865,019 Fair & expo center 1,963,398 1,761,108 1,783,377 2,257,064 2,500,139 RV park 154,633 165,096 217,036 346,987 408,513 Operating grants and contributions 86,306 49,790 50,964 51,244 53,667 Capital grants and contributions - - 176,289 - - Total business -type activities program revenues 8,710,703 8,769,363 9,591,988 10,743,383 11,827,338 Total primary government program revenues $ 76,846,896 $ 77,767,282 $ 90,100,587 $ 91,890,509 $ 107,307,688 Net (Expense)/Revenue Governmental activities $ (63,704,765) $ (65,112,999) $ (56,917,421) $ (41,801,988) $ (79,329,594) Business -type activities (3,305,787) (3,084,584) (459,255) (811,190) (2,213,620) Total primary government net expense $ (67,010,552) $ (68,197,583) $ (57,376,677) $ (42,613,178) $ (81,543,214) General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, levied for general purpose $ 33,682,238 $ 33,971,127 $ 35,079,263 $ 31,747,666 $ 33,533,883 Property taxes, levied for sheriff services 23,551,915 24,285,093 25,284,848 26,640,494 29,508,509 Property taxes, levied for bonded debt 3,290,215 3,083,800 1,982,347 97,428 84,233 Transient room tax 3,357,365 3,656,126 4,340,159 5,248,199 6,068,098 Investment earnings 908,178 787,866 986,444 1,188,209 1,643,757 Interfund equity transfer - - - - - Gain (loss) on sale of capital assets Transfers (447,771) (337,272) (539,938) (559,305) (513,431) Loss on discontinued project (3,149,335) Total governmental activities 64,342,140 62,297,405 67,133,123 64,362,692 70,325,049 Business -type activities: Taxes Property taxes, levied for bonded debt 2,334,005 2,417,152 2,086,179 2,623,509 2,555,831 Investment earnings 60,134 47,562 52,612 71,740 94,674 Interfund equity transfer - - - - - Gain (loss) on sale of capital assets - - - - - Transfers 447,771 337,272 539,938 559,305 513,431 Total business -type activities 2,841,910 2,801,986 2,678,729 3,254,554 3,163,935 Total primary government $ 67,184,050 $ 65,099,391 $ 69,811,852 $ 67,617,246 $ 73,488,985 Change in Net Position Governmental activities $ 637,375 $ (2,815,594) $ 10,215,702 $ 22,560,704 $ (9,004,545) Business -type activities (463,877) (282,598) 2,219,473 2,443,364 950,315 Total primary government $ 173,498 $ (3,098,192) $ 12,435,175 $ 25,004,068 $ (8,054,229) Totals may not add due to rounding 227 Totals may not add due to rounding 228 Deschutes County, Oregon Fund Balances — Governmental Funds — Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2007 2008 2009 2010 2011 General Fund Unreserved $ 6,841,976 $ 6,729,202 $ 7,119,757 $ 9,933,612 $ - Nonspendable n/a n/a n/a n/a - Committed n/a n/a n/a n/a - Assigned n/a n/a n/a n/a 9,481,113 Unassigned n/a n/a n/a n/a 4,623,757 Total General Fund $ 6,841,976 $ 6,729,202 $ 7,119,757 $ 9,933,612 $ 14,104,870 All Other Governmental Funds Reserved/Nonspendable $ 792,928 $ 989,812 $ 871,486 $ 806,696 $ 888,106 Unreserved, reported in: Special revenue funds 50,401,270 50,491,712 49,541,406 58,071,242 n/a Capital projects funds 677,141 (2,879,998) 7,228,678 958,911 n/a Debt service funds 1,157,785 1,127,264 959,147 1,101,183 n/a Total Unreserved 52,236,196 48,738,978 57,729,231 60,131,336 - Restricted, reported in: Special revenue funds n/a n/a n/a n/a 36,777,325 Capital projects funds n/a n/a n/a n/a 1,251,643 Debt service funds n/a n/a n/a n/a 661,359 Total Restricted - - - - 38,690,327 Committed, reported in: Special revenue funds n/a n/a n/a n/a 13,396,391 Capital projects funds n/a n/a n/a n/a 122,361 Debt service funds n/a n/a n/a n/a - Total Committed - - - - 13,518,752 Assigned, reported in: Special revenue funds n/a n/a n/a n/a 6,236,570 Capital projects funds n/a n/a n/a n/a 174,647 Debt service funds n/a n/a n/a n/a 839,529 Total Assigned - - - - 7,250,746 Unassigned, reported in: Capital projects funds n/a n/a n/a n/a (3,223,574) Total Unassigned - - - - (3,223,574) Total all other governmental funds $ 53,029,124 $ 49,728,790 $ 58,600,717 $ 60,938,032 $ 57,124,357 n/a - Not applicable Totals may not add due to rounding 228 Deschutes County, Oregon Fund Balances — Governmental Funds — Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year n/a - Not applicable * Beginning in 2014 it had been determined the Assigned Fund Balance should be reported as Committed or Restricted Totals may not add due to rounding 229 2012 2013 2014 2015 2016 General Fund Unreserved $ $ $ - $ - $ - Nonspendable - - - 516,523 498,337 Committed - - - 1,782,674 3,944,405 Assigned 10,082,716 8,657,374 8,031,837 6,222,698 6,311,144 Unassigned 5,244,633 6,836,112 7,649,760 9,183,941 10,620,333 Total General Fund $ 15,327,349 $ 15,493,486 $ 15,681,597 $ 17,705,836 $ 21,374,220 All Other Governmental Funds Reserved/Nonspendable $ 894,228 $ 1,272,249 $ 1,418,998 $ 2,542,621 $ 16,814,616 Unreserved, 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 Unreserved - - - - - Restricted, reported in: Special revenue funds 42,713,782 52,491,478 64,710,171 62,650,077 12,914,449 Capital projects funds 1,048,534 - - - - Debt service funds 585,900 476,186 7,631 10,970 - Total Restricted 44,348,216 52,967,664 64,717,802 62,661,047 12,914,449 Committed, reported in: Special revenue funds 11,821,006 10,372,114 13,456,033 13,566,455 11,491,305 Capital projects funds 122,361 - 606,292 394,405 - Debt service funds - 579,897 480,416 482,736 472,561 Total Committed 11,943,367 10,952,011 14,542,741 14,443,595 11,963,866 Assigned, reported in: Special revenue funds 5,903,050 4,170,144 - - - Capital projects funds 740,173 759,229 - - - Debt service funds 752,599 - - - - Total Assigned 7,395,822 4,929,373 - - - Unassigned, reported in: Capital projects funds (3,989,721) (2,057,525) (1,791,930) - - Total Unassigned (3,989,721) (2,057,525) (1,791,930) - - Total all other governmental funds $ 60,591,912 $ 68,063,772 $ 78,887,611 $ 79,647,264 $ 41,692,931 n/a - Not applicable * Beginning in 2014 it had been determined the Assigned Fund Balance should be reported as Committed or Restricted Totals may not add due to rounding 229 Deschutes County, Oregon Changes in Fund Balances — Governmental Funds — Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year Revenues Taxes Licenses and permits Fines, forfeitures and penalties Special assessments Interest and rents Intergovernmental Charges for services Other Total revenues Expenditures General government Public safety County roads Health and welfare Education Debt service Principal Interest Trustee fees Debt issuance costs Capital outlay Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Debt issuance Bond premium/discount Bonds issued Payments to escrow agent Proceeds of sale of assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 2007 2008 2009 2010 2011 $ 47,100,658 $ 53,685,756 $ 59,765,686 $ 63,729,316 $ 63,806,103 621,774 551,882 452,980 549,013 689,142 1,573,822 1,696,965 1,648,134 1,645,313 1,596,621 270,151 482,493 474,559 257,916 193,605 4,974,934 4,721,688 4,000,663 2,360,035 2,595,846 43,230,353 75,576,276 77,123,068 77,287,814 82,326,719 20,983,902 18,698,609 16,999,531 17,615,561 17,515,802 978,935 477,816 357,166 925,947 505,740 12,250 - 237,657 49,471 - 119,734,529 155,891,485 160,821,787 164,370,915 169,229,578 23,946,449 26,919,775 24,916,432 22,473,173 22,614,321 38,127,862 73,785,397 74,219,306 74,626,653 78,159,464 13,274,067 15,263,147 17,004,218 15,806,002 16,648,991 26,828,472 25,966,357 28,199,244 25,840,307 31,725,577 1,217,999 1,213,866 1,137,873 1,078,769 979,980 4,003,240 4,349,917 4,523,312 4,595,659 5,678,728 3,069,252 3,051,380 3,090,228 3,296,705 3,157,964 5,710 5,210 3,066 2,455 3,218 12,250 - 237,657 49,471 - 5,110,510 8,658,464 11,559,996 12,596,751 8,245,442 115,595,811 159,213,513 164,891,332 160,365,945 167,213,685 4,138,718 (3,322,028) (4,069,545) 4,004,970 2,015,893 20,769,508 18,214,344 (22,203,870) (18,421,256) 1,077,000 580,384 115,835 223,022 (91,077) 6.6% 5.5% Totals may not add due to rounding 230 23,231,232 (23,297,732) 13,352,250 46,277 19,839,328 (20,008,290) 1,320,000 (4,838) 12,313,816 (14,012,126) 40,000 13,332,027 1,146,200 (1,658,310) 5.0% 5.8% 5.6% Deschutes County, Oregon Changes in Fund Balances — Governmental Funds — Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Taxes Licenses and permits Fines, forfeitures and penalties Special assessments Interest and rents Intergovernmental Charges for services Other Total revenues Expenditures General government Public safety County roads Health and welfare Education Debt service Principal Interest Trustee fees Debt issuance costs Capital outlay Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Debt issuance Bond premium/discount Bonds issued Payments to escrow agent Proceeds of sale of assets Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2012 2013 2014 2015 2016 $ 64,546,883 $ 66,038,130 $ 67,157,527 $ 64,043,653 $ 69,254,662 778,227 900,224 1,285,225 1,395,229 1,513,320 1,417,245 1,355,143 1,563,725 1,713,279 1,666,944 161,466 176,518 125,999 116,946 85,439 2,559,272 2,463,869 2,616,264 2,801,165 3,191,867 85,663,964 83,911,882 95,464,165 97,854,728 102,449,003 16,159,689 19,108,543 21,137,727 24,577,248 16,657,205 439,269 832,505 681,354 1,867,249 1,268,489 171,726,015 174,786, 814 190,031,985 194,369,496 196,086,929 22,606,034 23,036,320 24,185,783 25,028,450 26,813,546 81,610,756 83,718,648 87,910,026 89,007,502 91,353,457 16,632,188 13,454,003 14,105,584 14,795,591 15,253,444 32,905,053 35,248,861 39,671,077 46,096,095 36,778,966 687,511 684,632 685,916 656,218 610,125 5,296,870 5,720,036 5,387,017 3,270,413 3,015,338 2,631,321 2,386,628 2,438,429 2,354,101 2,259,334 2,950 2,610 27,810 - - 372,216 23,429 219,610 - - 3,692,419 2,465,339 12,563,515 6,906,759 7,675,279 166,437,318 166,740,506 187,194,767 188,115,129 183,759,490 5,288,697 8,046,308 2,837,218 6,254,367 12,327,439 10,701,765 13,191,583 11,233,103 14,542,905 10,564,827 (11,673,036) (13,625,455) (11,831,461) (15,350,629) (12,403,247) - - (13,668) - 49,109 218,092 - - 21,893,362 3,000,000 8,555,000 1,925,295 (21,520,747) (3,023,549) - - (1,904,328) (598,656) (408,312) 8,174,734 (807,724) (1,831,121) $ 4,690,041 $ 7,637,996 $ 11,011,952 $ 5,446,643 $ 10,496,318 5.0% 4.9% 4.5% 3.1% 3.0% Totals may not add due to rounding 231 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Real Property Personal Property I I Manufactured Homes Fiscal Year Ended Estimated Estimated Estimated June 30, Assessed Value Actual Value Assessed Value Actual Value Assessed Value Actual Value 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 2015 18,803,090 24,417,972 393,213 393,227 53,660 58,261 2016 19,847,234 27,721,055 415,663 415,679 60,520 70,526 Sources: Deschutes County Assessor's Department and Deschutes County Tax Office (1) includes tax-exempt property Totals may not add due to rounding 232 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years (in thousands of dollars) Public Utilities Exemption Total Assessed Value(1) as a Range of Total Percentage of Estimated Taxable Estimated Direct Tax Estimated Assessed Value Actual Value Assessed Value Assessed Value Actual Value Rates Paid Actual Value $ 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% 475,914 492,477 39,534 19,686,343 25,361,937 2.7502-6.1111 77.777% 652,906 677,075 43,033 20,933,290 28,884,335 2.7398-6.0936 72.622% Totals may not add due to rounding 233 Sources: Deschutes County Assessor's Office and Deschutes County Finance Department Totals may not add due to rounding 234 Deschutes County, Oregon Direct Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1, 000 of assessed value) Fiscal Year Taxes are Payable 2007 2008 2009 2010 2011 County direct rates Rates levied to all taxable County properties: General 1.2783 1.2783 1.2783 1.2783 1.2783 Jail Bond 0.1402 0.1370 0.1335 0.1395 0.1358 Fairgrounds Bond 0.1421 0.1285 0.1410 0.1441 0.1464 Sheriff (Countywide) - 0.9500 0.9500 0.9500 0.9200 County Extension/41-1 CSD 0.0224 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.1618 0.1618 0.1618 911 Local Option 0.0900 - 0.2300 0.2300 0.2300 County districts paid by all properties 1.8348 2.6780 2.9170 2.9261 2.8947 Rates levied to taxable rural County properties: Sheriff (County) 1.6000 - - - - Sheriff (Rural) - 1.4000 1.4000 1.4000 1.4000 Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) 0.8200 - - - - Certain County properties are subject to one of the following rates: Bend Library Bond 0.0856 0.0858 0.0852 0.0868 0.0880 Redmond Library Bond 0.0618 0.0588 0.0567 0.0572 0.0558 Sunriver Library Bond 0.0637 0.0607 0.0590 0.0598 0.0551 Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt 0.4000 0.4000 0.4000 0.4000 0.5500 Paid by Sunriver properties only: Sunriver Service District 3.0200 3.0700 3.1300 3.2200 3.3100 Range of County Direct Rates Paid 2.6548 - 5.7385 2.6780 - 5.8087 2.9170 - 6.1060 2.7805 - 6.2059 2.8947-6.2598 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 2.8035 Redmond 6.0643 6.1643 6.1643 6.1643 6.1643 Sisters 2.6417 2.6417 2.6417 2.6417 2.6417 La Pine - 1.8800 1.9800 1.9800 1.8000 Bend Urban Renewal Special Levy 0.2266 0.2595 0.2700 0.2666 0.2791 City of Redmond Bond 0.0893 0.0755 0.1020 0.1168 0.0947 Sunriver Service District 3.0200 3.0700 3.1300 3.2200 3.3100 Redmond Downtown Urban Renewal Levy 0.3248 0.1719 - - - Library district rates 0.5500 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924 - 2.7317 1.0924 - 3.2087 1.0924 - 3.0742 1.0924 - 3.0705 1.0924-3.0744 rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 School district rates 6.4665 - 7.3835 6.4474 - 7.2751 6.8851 - 7.2424 6.5907 - 8.4371 6.4923-8.1206 Road district rates 0.7831 - 3.6500 0.7831 - 3.6500 0.7831 - 3.6500 0.6600 - 3.6500 0.3248-3.6500 Other special district rates 0.2895 0.3898 0.3848 0.3809 0.3793 Sources: Deschutes County Assessor's Office and Deschutes County Finance Department Totals may not add due to rounding 234 Totals may not add due to rounding 235 Deschutes County, Oregon Direct Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1, 000 of assessed value) Fiscal Year Taxes are Payable 2012 2013 2014 2015 2016 County direct rates Rates levied to all taxable County properties: General 1.2783 1.2783 1.2783 1.2783 1.2783 Jail Bond 0.1324 0.1291 0.0673 - - Fairgrounds Bond 0.1369 0.1405 0.1121 0.1377 0.1273 Sheriff (Countywide) 0.9200 0.9500 0.9500 0.9500 0.9500 County Extension/41-1 CSD 0.0224 0.0224 0.0224 0.0224 0.0224 911 CSD 0.1618 0.1618 0.1618 0.1618 0.1618 911 Local Option 0.2300 0.2300 0.2240 0.2000 0.2000 County districts paid by all properties 2.8818 2.9121 2.8159 2.7502 2.7398 Rates levied to taxable rural County properties: Sheriff (County) - - - - - Sheriff (Rural) 1.4000 1.4000 1.4000 1.4000 1.4000 Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) - - - - - Certain County properties are subject to one of the following rates: Bend Library Bond 0.0836 0.0791 0.0723 Redmond Library Bond 0.0498 - - - - Sunriver Library Bond 0.0550 0.0489 0.0475 0.5090 0.0438 Paid by Black Butte properties only: Black Butte Ranch CSD 1.0499 1.0499 1.0499 1.0499 1.0499 Black Butte Ranch CSD Local Opt 0.5500 0.5500 0.5500 0.5500 0.5500 Paid by Sunriver properties only: Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Range of County Direct Rates Paid 2.8818-6.2468 2.9121-6.2710 2.8159-6.1734 2.7502-6.1111 2.7398-6.0936 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 2.8035 Redmond 4.4101 4.4101 4.4101 4.4101 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 2.6417 La Pine 1.8000 1.9000 1.9300 1.9800 1.9800 Bend Urban Renewal Special Levy - - - - - City of Redmond Bond 0.0831 0.0870 0.0886 0.0809 0.0809 Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Redmond Downtown Urban Renewal Levy - - - - - Library district rates 0.5500 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924-3.0744 1.0924-3.0522 1.0924-3.0691 1.0924-3.0641 1.0924-3.0641 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.6673 0.2200 - 1.6566 0.2200 - 1.4610 School district rates 6.6649-8.4065 6.6692-8.4108 6.5526-8.4699 6.2181-8.4979 6.4033-8.4012 Road district rates 0.5180-2.7331 0.4377-3.6500 0.9005-3.6500 0.7831-3.0000 1.3081-3.6500 Other special district rates 0.3776 0.2895 0.2895 0.2895 0.2895 Totals may not add due to rounding 235 Deschutes County, Oregon Principal Property Taxpayers — Current Fiscal and Nine Years Ago Source: Deschutes County Assessor's Department Totals may not add due to rounding 236 2016 2007 Percentage of Percentage of Total County Total County Taxable Taxable Assessed Taxable Taxable Assessed Taxpayer Assessed Value Rank Value Assessed Value Rank Value TDS Baja Broadband LLC (Prev Bend Cable) $ 218,359,000 1 1.04% $ - - - Pacificorp (PP&L) 85,994,000 2 0.41% 46,818,000 4 0.32% Gas Transmission Northwest Corporation 68,929,100 3 0.33% 72,491,300 1 0.50% Cascade Natural Gas Corporation 54,078,000 4 0.26% 36,688,000 6 0.25% Suterra LLC 47,416,970 5 0.23% - - - Bend Research Inc 46,999,420 6 0.22% - - - Touchmark at Mount Bachelor Village LLC 44,466,290 7 0.21% - - - CVSC LLC 38,467,390 8 0.18% 25,226,589 9 0.17% Deschutes Brewery Inc 38,414,200 9 0.18% - - Centurylink (Prev Qwest) 38,262,000 10 0.18% 59,287,100 2 0.41% Pronghorn Investors LLC - - - 55,264,883 3 0.38% Eagle Crest Inc - - 40,425,179 5 0.28% Mt. Bachelor Inc - - - 35,491,614 7 0.24% Sunriver Resort Limited Partnership - - 34,896,821 8 0.24% Bend Millwork Systems Inc - - 25,182,750 10 0.17% Total $ 681,386,370 3.24% $ 431,772,236 2.96% Source: Deschutes County Assessor's Department Totals may not add due to rounding 236 Deschutes County, Oregon Property Taxes Levies and Collections - Last Ten Fiscal Years (amounts expressed in thousands) Collected within the Fiscal Year of the Levy Total Collections to Date Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Totals may not add due to rounding 237 Total Tax Levy Collections in Fiscal Year Ended for Fiscal Year Amount Percentage of Subsequent Percentage of June 30, (1) Collected Levy Years Amount Collected Levy 2007 $ 42,485 $ 41,256 97.108% $ 1,227 $ 42,483 99.996% 2008 49,203 47,007 95.537% 2,194 49,200 99.995% 2009 56,344 52,961 93.996% 3,378 56,339 99.992% 2010 58,800 55,871 95.018% 2,923 58,794 99.990% 2011 58,521 56,104 95.870% 2,407 58,511 99.982% 2012 57,774 55,921 96.793% 1,836 57,757 99.972% 2013 58,607 57,176 97.557% 1,373 58,549 99.901% 2014 59,380 58,195 98.005% 1,014 59,210 99.713% 2015 62,247 61,220 98.349% 654 61,873 99.399% 2016 65,737 64,747 98.494% - 64,747 98.494% Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Totals may not add due to rounding 237 General Fiscal Obligation Year Bonds Deschutes County, Oregon Ratios of Outstanding Debt by Type — Last Ten Fiscal Years (dollars in thousands, except per capita) Governmental Activities Limited Special Certificates Full Faith Tax Assessment of and Credit Bonds Bonds Participation Obligations Capital Leases Loans 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 2015 90 10,536 - - 42,957 - - 2016 - 10,235 - - 40,313 - (1) See page 297 for personal income and population data. n/a - Not available. Totals may not add due to rounding 238 Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Deschutes County, Oregon Ratios of Outstanding Debt by Type — Last Ten Fiscal Years (dollars in thousands, except per capita) Business-Tvoe Activities General Full Faith Obligation and Credit Per Bonds Obligations Loans $ 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 5,247 13,200 343 2,595 12,793 - Totals may not add due to rounding 239 Total Percentage Primary of Personal Per Government Income (1) Capita (1) 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 1.20% 483.62 78,887 1.11% 474.08 72,373 n/a 423.88 65,936 n/a n/a Deschutes County, Oregon 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 page 232. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 245. Totals may not add due to rounding 240 Percentage of Less: Amounts Estimated Actual Fiscal General Obligation Available in Debt Taxable Value of Year Bonds (1) Service Fund (2) Total Property (3) Per Capita (4) 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 2015 5,337 358 4,979 0.02% 32.07 2016 2,595 264 2,331 0.01% 15.20 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 page 232. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 245. Totals may not add due to rounding 240 Deschutes County, Oregon Direct and Overlapping Governmental Activities Debt As of June 30, 2016 (dollars in thousands) Amount Estimated Applicable to Debt Percentage Primary Governmental Unit Outstanding Applicable Government Debt repaid with property taxes Bend Metro Park & Rec District $ 30,671 100.0000% $ 30,671 Central Oregon Community College 56,959 84.0125% 47,853 Central Oregon Regional Housing Authority 4,618 100.0000% 4,618 City of Bend 49,899 100.0000% 49,899 City of La Pine 435 100.0000% 435 City of Redmond 9,428 100.0000% 9,428 Cloverdale RFPD 2,575 100.0000% 2,575 Crook County School District 51,045 1.1032% 563 Crooked River Ranch RFPD 2,480 8.7616% 217 Crooked River Ranch Special Road District 115 8.8722% 10 Deschutes County RFPD 2 (Bend) 1,265 100.0000% 1,265 Deschutes County School District 1 (Bend -La Pine) 251,878 100.0000% 251,878 Deschutes County School District 2 (Redmond) 146,472 93.9479% 137,607 Deschutes County School District 6 (Sisters) 15,867 99.9745% 15,863 HFA Deschutes County 111,750 100.0000% 111,750 High Desert ESD 3,831 91.6655% 3,511 La Pine Parks & Recreation District 430 100.0000% 430 Redmond Area Park & Recreation District 922 100.0000% 922 Redmond Fire & Rescue 939 99.9195% 938 Sisters RFPD (Camp Sherman) 1,905 86.6837% 1,651 Terrebonne Water District 540 100.0000% 540 Subtotal, overlapping debt 672,625 Deschutes County direct debt 50,548 Total direct and overlapping debt $ 723,173 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. Totals may not add due to rounding 241 Estimated Actual Value Debt limit (2% of estimated actual value) Debt applicable to limit: General obligation bonds Total net debt applicable to limit Legal debt margin Debt Limit (2%)' Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Deschutes County, Oregon 2008 Legal Debt Margin Information - Last Ten Fiscal Years 2010 (dollars in thousands) $ 568,030 Legal Debt Margin Calculation for Fiscal Year 2016 $ 753,830 $ 28,884,335 Estimated Actual Value $ 28,884,335 577,687 Debt limit (1% of estimated actual value) z 288,843 Debt applicable to limit: 27,141 2,595 Limited tax bonds 50,548 2,595 Less: Amount set aside for repayment of debt 191 Total net debt applicable to limit 50,357 $ 575,092 Legal debt margin $ 238,486 Fiscal Year 2007 2008 2009 2010 2011 $ 568,030 $ 738,802 $ 753,830 $ 663,510 $ 470,544 38,929 35,264 31,345 27,141 22,618 319,406 $ 274,802 $ 181,466 6.85% 4.77% 4.16% 4.09% 4.81% Debt Limit (1%) 2 $ 284,015 $ 369,401 $ 376,915 $ 331,755 $ 235,272 Total net debt applicable to limit 47,750 46,139 57,509 56,953 53,806 Legal debt margin $ 236,265 $ 323,262 $ 319,406 $ 274,802 $ 181,466 Total net debt applicable to the limit as a percentage of debt limit 16.81% 12.49% 15.26% 17.17% 22.87% 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. Totals may not add due to rounding 242 Deschutes County, Oregon Legal Debt Margin Information — Last Ten Fiscal Years (dollars in thousands) Fiscal Year 2012 2013 2014 2015 2016 $ 431,674 $ 420,044 $ 443,378 $ 507,239 $ 577,687 17,765 12,260 7,844 5,337 2,595 $ 413,909 $ 407,784 $ 435,534 $ 501,902 $ 575,092 4.12% 2.92% 1.77% 1.05% 0.45% $ 215,837 $ 210,022 $ 221,689 $ 253,619 $ 288,843 52,137 49,647 56,121 53,231 50,357 $ 163,700 $ 160,375 $ 165,568 $ 200,388 $ 238,486 24.16% 23.64% 25.32% 20.99% 17.43% Totals may not add due to rounding 243 Deschutes County, Oregon Pledged -Revenue Coverage — Last Ten Fiscal Years (dollars in thousands) 2015 2016 Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Totals may not add due to rounding 244 Special Assessment Bonds - (Series 2000) Full Faith and Credit Obligations (Series 2003, 2005, 2007, 2009) Special Special Fiscal Assessment Debt Service Assessment Debt Service Year Collections Principal Interest Coverage Collections Principal Interest Coverage 2007 $ 43 $ 60 $ 7 0.64 $ 206 $ 176 $ 18 1.06 2008 49 47 4 0.96 390 344 70 0.94 2009 26 30 1 0.84 381 223 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 2015 2016 Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Totals may not add due to rounding 244 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, 2015, reflect county population estimates available as of April 2016. Median age figures for 2007-2016 based on mid -year data tables. School enrollment is based on the census at the start of the 2015-16 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2016 is an average of January through June 2016. n/a - Not available. Totals may not add due to rounding 245 Deschutes County, Oregon Demographic and Economic Statistics — Last Ten Calendar Years Personal Per Income Capita Public (thousands Personal Median School Unemployment Year Population of dollars) Income Age Enrollment Rate 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 6,547,882 39,456 40.43 24,518 10.8% 2014 162,525 7,100,843 41,675 40.63 24,790 8.8% 2015 166,400 n/a n/a 40.82 25,302 6.3% 2016 170,740 n/a n/a 40.96 25,598 5.0% 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, 2015, reflect county population estimates available as of April 2016. Median age figures for 2007-2016 based on mid -year data tables. School enrollment is based on the census at the start of the 2015-16 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2016 is an average of January through June 2016. n/a - Not available. Totals may not add due to rounding 245 Deschutes County, Oregon Principal Employers — Current Year and Nine Years Ago Employer St. Charles Medical Center Bend/La Pine School District Deschutes County Sunriver Resort Central Oregon Community College Redmond School District Mt. Bachelor Bend Memorial Clinic Safeway Walmart T -Mobile iSKY JELD-WEN Windows & Doors Columbia Aircraft Manufacturing 2016 2007 Total Employees of Principal Employers 11,008 13.82% 9,871 13.40% Total County Nonfarm Employment 79,670 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not add due to rounding 246 Percentage of Percentage of Total County Total County Employees Rank Employment Employees Rank Employment 2,694 1 3.38% 2,512 1 3.41% 1,797 2 2.25% 1,661 2 2.25% 1,064 3 1.34% 1,003 3 1.36% 936 4 1.17% 870 4 1.18% 883 5 1.11% - - - 851 6 1.07% 564 8 0.77% 769 7 0.97% 765 5 1.04% 701 8 0.88% - - - 674 9 0.85% - - - 639 10 0.80% - - - 701 6 0.95% 700 7 0.95% 550 9 0.75% 545 10 0.74% Total Employees of Principal Employers 11,008 13.82% 9,871 13.40% Total County Nonfarm Employment 79,670 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not add due to rounding 246 This page left intentionally blank. Deschutes County, Oregon Full -Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years Function/Program General government Executive General services Judicial Financial Assessment Community development Building services Information technology Other Public protection Law enforcement Corrections Protective inspection Other Protection Public works Streets & highways Sanitation Health & welfare Health Welfare Recreation & culture Fair & expo center Other Conservation Economic development Total 8.82 9.65 9.65 9.65 9.65 48.45 50.45 50.45 50.45 49.45 42.33 41.08 40.58 39.58 39.08 36.75 36.75 36.25 32.15 31.25 34.20 36.50 24.40 25.05 19.50 23.65 23.85 24.85 22.95 22.95 16.50 16.44 15.58 16.90 16.90 8.47 8.23 7.09 6.67 6.67 111.75 116.75 118.50 118.50 118.75 185.65 199.05 206.30 199.10 194.60 37.80 37.10 23.60 23.05 13.00 38.00 38.50 40.50 40.50 40.50 66.50 64.50 62.50 61.50 60.50 24.00 26.00 26.00 26.00 22.00 59.48 57.95 57.95 59.60 73.25 101.57 108.78 110.18 112.28 123.90 14.00 14.00 13.00 13.00 13.00 3.00 3.00 3.00 2.00 2.00 1.07 1.10 1.10 1.10 1.10 861.99 889.68 871.48 860.03 858.05 Source: Deschutes County Finance Department Above amounts are for Primary Government Totals may not add due to rounding 248 Deschutes County, Oregon Full -Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years Function/Program General government Executive General services Judicial Financial Assessment Community development Building services Information technology Other Public protection Law enforcement Corrections Protective inspection Other Protection Public works Streets & highways Sanitation Health & welfare Health Welfare Recreation & culture Fair & expo center Other Conservation Economic development Total 9.65 9.40 9.40 9.75 9.75 50.45 50.45 51.45 52.05 54.05 38.33 38.83 37.46 38.53 39.53 32.00 31.75 31.00 31.00 33.00 17.50 17.60 17.30 19.30 20.30 22.95 23.45 23.80 23.80 25.20 17.00 16.70 16.70 16.30 16.00 6.57 5.62 5.27 4.47 4.32 118.15 114.46 113.75 113.75 113.75 193.20 190.09 185.00 188.60 199.10 11.10 11.00 12.70 14.70 15.70 41.50 43.50 46.50 52.50 57.50 60.50 56.50 52.75 52.75 53.50 22.00 22.00 22.50 22.50 23.50 75.65 73.70 76.67 71.60 70.50 139.30 146.00 170.25 176.40 194.75 11.00 10.00 10.00 11.00 11.00 2.00 3.00 3.00 2.00 0.00 1.10 1.10 1.10 0.00 0.00 869.95 865.15 886.60 901.00 941.45 Source: Deschutes County Finance Department Above amounts are for Primary Government Totals may not add due to rounding 249 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Fiscal Year Function/Program 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 2007 2008 2009 2010 2011 701 331 176 109 104 1,753 1,222 797 636 613 1,586 1,508 1,542 1,592 1,375 5,486 6,165 4,811 3,566 2,504 5,623 7,481 6,842 5,091 4,727 37,677 36,731 35,243 33,315 32,661 11,023 15,606 14,744 12,856 10,202 247,652 257,863 253,418 207,515 192,657 3,111 3,379 3,152 2,485 2,257 62,523 69,717 75,825 65,116 75,365 10.13 10.62 23.53 29.11 6.26 70,104 66,004 59,793 57,978 54,395 244,633 261,420 251,675 242,851 241,785 19,461 19,828 20,820 19,980 19,597 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 Totals may not add due to rounding 250 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Fiscal Year Function/PYOQram 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 2012 2013 2014 2015 2016 127 218 327 355 440 643 811 988 1,142 1,309 1,334 1,421 1,451 1,545 1,568 2,517 2,261 2,462 2,189 2,104 4,317 1,906 1,570 1,883 1,547 33,409 33,331 34,187 35,664 34,535 10,507 14,125 14,840 14,698 10,533 177,113 185,692 185,788 193,779 203,896 2,243 2,338 2,320 2,385 2,451 62,083 72,941 72,178 74,097 72,940 16.10 2.50 8.20 7.60 14.57 59,697 58,673 59,886 60,460 62,181 249,032 246,458 249,217 250,369 252,333 21,048 21,541 22,398 23,655 25,308 Source: Deschutes County Community Development Department, Deschutes County Sheriff s Office, Deschutes County Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District Totals may not add due to rounding 251 Deschutes County, Oregon Capital Asset Statistics by Function/Program — Last Ten Fiscal Years Function/Program Public Safety Stations Adult correctional facilities Special services complex Road Streets (miles) Streetlights Flashing lights Signals 2007 2008 2009 2010 2011 4 4 4 4 4 1 2 2 2 2 1 1 1 1 1 911 927 927 927 927 4 4 4 4 4 6 6 5 5 5 2 2 3 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office Totals may not add due to rounding 252 Deschutes County, Oregon Capital Asset Statistics by Function/Program — Last Ten Fiscal Years Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office Totals may not add due to rounding 253 Fiscal Year 2012 2013 2014 2015 2016 Function/Program Public Safety Stations 4 4 4 4 4 Adult correctional facilities 2 2 2 2 2 Special services complex 1 1 1 1 l Road Streets (miles) 927 927 927 927 927 Streetlights 4 4 4 4 4 Flashing lights 5 5 5 5 4 Signals 3 3 3 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office Totals may not add due to rounding 253 Audit Comments and Disclosures Required by State Regulations June 30, 2016 Deschutes County, Oregon Deschutes County, Oregon Audit Comments and Disclosures Required by State Regulations Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit reports. The required statements and schedules are set forth in the preceding sections of this report. Required comments and disclosures related to the audit of such statements and schedules are set forth in the following pages. 255 EideBally, CPAs & BUSINESS ADVISORS Independent Auditor's Report Required by Oregon State Regulations To Deschutes County Commissioners Deschutes County, Oregon Bend, Oregon 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, 2016, and have issued our report thereon dated October 28, 2016. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10-330 of the Minimum Standards for Audits of Oregon Municipal Corporations, 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. We performed procedures to the extent we considered necessary to address the required comments and disclosures which included, but were not limited to the following: 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 www.eidebaiIIy.com 256 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE 162-010-0315 State School Fund Not Applicable 162-010-0316 Public Charter Schools Not Applicable Instances of Non - OAR Section Compliance Identified 162-010-0320 Other Comments and Disclosures Not Applicable 162-010-0330 Extensions of Time to Deliver Audit Reports Not Applicable In connection with our testing nothing came to our attention that caused us to believe the County was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10-330 of the Minimum Standards for Audits of Oregon Municipal Corporations, except as noted below: The County's expenditures exceeded appropriations for the following funds: a. Health Services (275): Capital Outlay b. Deschutes County 9-1-1 (701): Materials and Services c. Vehicle Maintenance & Replacement: Materials and Services OAR 162-10-0230 Internal Control In planning and performing our audit, we consider the County's internal control over financial reporting as a basis for designing out 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 County's control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County'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 County's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County'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. I - - W-1 -19; � 4--W� LN�P. - For Eide Bailly LLP Boise, Idaho October 28, 2016 257 Single Audit Compliance June 30, 2016 Deschutes County, Oregon EideBally, 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 County 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, 2016, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated October 28, 2016. 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 been identified. 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. 259 www.eidebaiIIy.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE 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 October 28, 2016 260 EideBally, CPAs & BUSINESS ADVISORS Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Expenditures of Federal Awards Required by the Uniform Guidance To the Deschutes County Board of Commissioners Deschutes County, Oregon Bend, Oregon Report on Compliance for Each Major Federal Program We have audited the Deschutes County, Oregon's (the County) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the County's major federal programs for the year ended June 30, 2016. 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 federal statutes, regulations, and the terms and conditions of its federal awards 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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, 2016. www.eidebaiIIy.com 261 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE 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 Uniform Guidance, 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. ,L. Boise, Idaho October 28, 2016 262 Deschutes County, Oregon Schedules of Expenditures of Federal Awards June 30, 2016 See notes to the Schedule of Federal Expenditures Totals may not add due to rounding Continued 263 Accrued or Accrued or Federal Program or (Deferred) (Deferred) Federal Grantor / Pass Through Grantor / Program CFDA Award or Pass- Award Revenues July 1, Revenues July Title Number Through Number. Amount 2015 Receipts Expenditures 1, 2016 U.S. Department of Agriculture Direct Programs Forest Service Cooperative Forestry Assistance -Bend Fuels 13 -DG -11062752- 2013 10.664 709 $ 219,125 $ 47,183 $ 71,302 $ 24,119 $ Cooperative Forestry Assistance -Southern 14 -DG -11062752 - Deschutes Fuels Project 10.664 733 175,300 9,688 34,309 24,621 - Schools and Roads -Public Education and 14 -DG -11060120 - Outreach for Noxious Weed Control 10.665 041 23,750 2,543 10,518 13,014 5,039 Pass Through Programs State Department of Education School Breakfast Program 10.553 0904001 8,390 579 8,147 8,390 822 National Lunch School Program 10.555 0904001 15,421 1,077 14,976 15,421 1,522 Oregon Health Authority Special Supplemental Nutrition Program for Women, Infants and Children 10.557 280559/280664 663,132 57,132 664,839 663,446 55,739 Watershed Research and Training Center Cooperative Forestry Assistance -Fire Adapted Communities Learning Network 10.664 194_2015_125 24,700 - 24,700 24,700 - Oregon Department of Forestry Cooperative Forestry Assistance-Whychus 15 -DG -11062765 - Creek and Canyon Fuels Reduction Project 10.664 727 88,625 - 2,255 2,255 State Department of Administrative Services Schools and Roads: Grants to States Title I 10.665 None 1,423,524 1,423,524 1,423,524 - Title III 10.665 None 117,231 (267,938) 117,231 57,315 (327,854) Total Department of Agriculture 2,256,805 U.S. Department of the Interior Pass Through Programs State Department of Administrative Services Non -Sale Disposals of Mineral Material 15.214 None 98,642 98,642 98,642 Distribution of Receipts to State and Local Governments 15.227 None 4,727 (29,707) 4,727 - (34,434) State Historic Preservation Office Historic Preservaton Fund Grants 15.904 OR -15-06 13,000 - 7,974 7,974 Total Department of the Interior 106,616 U.S. Department of Justice Direct Programs Violence Against Women Office Supervised Visitation: Safe Havens for Children 16.527 2013-FL-AX-KO19 120,909 23,007 107,019 112,016 28,004 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 2014 -WE -AX -0055 95,076 22,693 94,000 93,334 22,027 Bureau of Justice Assistance Edward Byrne Memorial Justice Assistance Grant Program 16.738 2014 -DJ -BX -0634 23,640 1,477 1,488 11 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015 -DJ -BX -0070 18,695 - 18,695 18,695 Pass Through Programs State Department of Justice Crime Victim Assistance 16.575 2012 DAVAP-00056 155,549 14,866 14,866 - - Crime Victim Assistance 16.575 2015 DAVAP-00031 263,084 - 49,538 82,923 33,385 Crime Victim Assistance 16.575 2016 DAVAP-00089 61,354 - 27,662 27,662 Total Department of Justice 334,641 See notes to the Schedule of Federal Expenditures Totals may not add due to rounding Continued 263 Deschutes County, Oregon Schedules of Expenditures of Federal Awards June 30, 2016 Federal Grantor / Pass Through Grantor / Program Title Federal CFDA Number Award or Pass- Through Number. Program or Award Amount Accrued or (Deferred) Revenues July 1, 2014 Receipts Expenditures Accrued or (Deferred) Revenues July 1, 2015 U.S. Department of Transportation Substance Abuse and Mental Health Services Administration 35,234 Alliance for Substance Abuse Prevention 93.276 IH79SP021072-01 Pass Through Programs 3,460 Pass Through Programs Oregon Health Authority 3,460 - Public Health Emergency Preparedness 93.069 280619 Public Health Emergency Preparedness - Oregon Department of Transportation 508 Ebola Supplement 93.074 280620 Sodium Reduction in Communities 93.082 280588 Enhanced Mobility of Seniors and Individuals 94,000 - Program 93.092 280529 Project Grants and Cooperative Agreements 40,472 Individuals with Disabilities 20.513 Mar -84 87,371 10,924 43,687 43,684 10,921 Total Department of Transportation 207001 Family Planning: Services 93.217 280558 Youth Suicide Prevention/Intervention 43,684 250051/280649 U.S. General Services Administration 65,275 62,071 Investigations and technical Assistance 93.283 280577/280511 Empowering Older Adults and Adults with Pass Through Programs Disabilities through Chronic Disease Self - Management Education Programs 93.734 280676 State and Local Public Health Actions to State Department of Administrative Services Prevent Obesity, Diabetes, Heart Disease and Stroke (PPHF) 93.757 280724 Disposal of Federal Surplus Real Property 39.003 None 5,170 5,170 5,170 Total General Services Administration 5,170 U.S. Environmental Protection Agency Direct Prourams Office of Solid Waste and Emergency Response Brownfields Assessment and Cleanup Cooperative Agreements - RECOVERY 66.818 OOJ80001 400,000 18,222 133,672 138,515 23,065 Pass Through Programs Oregon Health Authority State Public Water System Supervision 66.432 280557 33,788 2,819 26,654 26,654 2,819 Capitalization Grants for Drinking Water State Revolving Fund - RECOVERY 66.468 280655 20,027 - 17,521 20,027 2,506 Total Environmental Protection Agency - 23,932 U.S. Department of Health and Human Services 22,837 102,090 Direct Programs 104,523 102,090 Substance Abuse and Mental Health Services Administration 35,234 Alliance for Substance Abuse Prevention 93.276 IH79SP021072-01 Pass Through Programs 3,460 - Oregon Health Authority 3,460 - Public Health Emergency Preparedness 93.069 280619 Public Health Emergency Preparedness - 8,205 508 Ebola Supplement 93.074 280620 Sodium Reduction in Communities 93.082 280588 ACA Personal Responsibility Education 94,000 - Program 93.092 280529 Project Grants and Cooperative Agreements 40,472 67,308 for Tuberculosis Control Programs 93.116 280549 Project for Assistance in Transition from 32,313 Homelessness (PATH) 93.150 207001 Family Planning: Services 93.217 280558 Youth Suicide Prevention/Intervention 93.243 250051/280649 Centers for Disease Control & Prevention 65,275 62,071 Investigations and technical Assistance 93.283 280577/280511 Empowering Older Adults and Adults with Disabilities through Chronic Disease Self - Management Education Programs 93.734 280676 State and Local Public Health Actions to Prevent Obesity, Diabetes, Heart Disease and Stroke (PPHF) 93.757 280724 See notes to the Schedule of Federal Expenditures Totals may not add due to rounding 264 185,196 125,000 - 23,932 46,769 22,837 102,090 10,943 104,523 102,090 8,510 35,234 - 19,886 21,265 1,379 3,460 - 3,460 3,460 - 93,874 11,070 97,874 95,009 8,205 508 30 33 - (3) 94,000 - 94,000 94,000 - 123,464 10,054 95,769 126,187 40,472 67,308 (77,853) 73,613 151,466 - 32,313 32,313 32,313 14,285 - 14,285 14,285 - 138,476 3,370 65,275 62,071 166 Continued Deschutes County, Oregon Schedules of Expenditures of Federal Awards June 30, 2016 Federal Grantor / Pass Through Grantor / Program Title Federal CFDA Number Award or Pass - Through Number. U.S. Department of Health and Human Services (continued) 250 National Bioterroism Hospital Preparedness - 4,213 Program 93.889 280609 HIV Care Formula Grants 93.917 280544 HIV Prevention Activities -Health - 6,780 Department Based 93.940 280501 Assistance Programs for Chronic Disease - 309,086 Prevention and Control 93.945 280528/280624 Block Grants for Community Mental Health 244,400 244,400 Services 93.958 112001 Block Grants for Prevention and Treatment 85,783 7,534 of Substance Abuse 93.959 135001 Maternal and Child Health Services Block - - Grant to States 93.994 180514 Department of Human Services Abstinence Education Grant Program 93.235 254000 Pass Through Programs Oregon Department of Education Promoting Safe and Stable Families 93.556 936002292 Total Department of Health and Human Services Department of Homeland Security Pass Through Programs Department of State Police Emergency Management Performance Grant 97.042 14-509 Emergency Management Performance Grant 97.042 15-509 Oregon Military Department State Homeland Security Program Grant 97.073 EMS -2013 -PC -001 Total Department of Homeland Security Office of National Drug Control Policy Pass Through Programs State Department of Justice High Intensity Drug Traffic Area (HIDTA) ' 95.001 None Total Office of National Drug Control Policy Total Federal Assistance ' Expenditures include funds utilized by a fiduciary organization in the amount of $238,534. See notes to the Schedule of Federal Expenditures Totals may not add due to rounding 265 Accrued or Accrued or Program or (Deferred) (Deferred) Award Revenues July 1, Revenues July Amount 2014 Receipts Expenditures 1, 2015 250 - 250 250 4,213 - 4,213 4,213 - 16,277 2,496 17,010 16,277 1,763 - 6,780 34,200 32,912 5,492 309,086 - 309,086 309,086 - 244,400 - 244,400 244,400 - 86,900 8,651 86,900 85,783 7,534 35,964 - 35,964 35,964 - - 4,385 13,155 8,770 1,486,570 88,876 20,640 20,640 - - 110,023 - 78,405 103,736 25,331 3,000,000 - 120,660 120,660 224,396 11,066 263,525 263,360 10,901 263,360 $ (73,803) $ 4,717,686 $ 4,906,438 $ 114,949 Deschutes County, Oregon Notes to the Schedules of Expenditures of Federal Awards Fiscal Year Ended June 30, 2016 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, 2016. B. Basis of Presentation The information in the schedule is presented in accordance with the Uniform Guidance. C. Federal Financial Assistance Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, nonmonetary 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. The County has elected to use the 10% de minimus cost rate. D. Major Programs The Uniform Guidance establishes 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 the Uniform Guidance. 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. 266 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2016 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 Schedule of Federal Awards by Department and Program as of June 30, 2016, beginning on page 297, summarizes expenditures of federal awards by CFDA number regardless of who is contracted with the County. 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 the Uniform Guidance, a cluster of programs are those Federal programs with different CFDA numbers that are closely related and share common compliance requirements. The Schedule of Federal Awards by Cluster for the year ended June 30, 2016, on page 299, is provided to disclose this information. 267 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program Fiscal Year Ended June 30, 2016 Department / Program Title CFDA Number Expenditures U.S. Department of Aariculture 16.575 110,585 School Breakfast Program 10.553 $ 8,390 National School Lunch Program 10.555 15,421 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 663,446 Cooperative Forestry Assistance 10.664 75,695 Schools and Roads - Grants to States 10.665 1,493,853 Total Department of Agriculture Enhanced Mobility of Seniors and Individuals with Disabilities 2,256,805 U.S. Department of the Interior Total Department of Transportation Non -Sale Disposals of Mineral Material 15.214 98,642 Historic Preservaton Fund Grants 15.904 7,974 Total Department of the Interior 5,170 106,616 U.S. Department of Justice Supervised Visitation, Safe Havens for Children 16.527 112,016 Crime Victim Assistance 16.575 110,585 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 93,334 Edward Byrne Memorial Justice Assistance Grant Program 16.738 18,706 Total Department of Justice 334,641 U.S. Department of Transportation Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 43,684 Total Department of Transportation 43,684 U.S. General Services Administration Disposal of Federal Surplus Real Property 39.003 5,170 U.S. Environmental Protection ALenc State Public Water System Supervision 66.432 26,654 Capitalization Grants for Drinking Water State Revolving Funds 66.468 20,027 Brownfields Assessment and Cleanup Cooperative Agreements 66.818 138,515 Total Environmental Protection Agency 185,196 268 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program Fiscal Year Ended June 30, 2016 Department / Program Title CFDA Number Expenditures U.S. Department of Health and Human Services Public Health Emergency Preparedness 93.069 102,090 Public Health Emergency Preparedness 93.074 21,265 Sodium Reduction in Communities 93.082 3,460 ACA Personal Responsibility Education Program 93.092 95,009 Projects for Assistance in Transition from Homelessness (PATH) 93.150 94,000 Family Planning Services 93.217 126,187 Abstinence Education Grant Program 93.235 35,964 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 151,466 Alliance for Substance Abuse Prevention 93.276 46,769 Centers for Disease Control and Prevention Investigations and Technical Assistance 93.283 32,313 Promoting Safe and Stable Families 93.556 8,770 Empowering Older Adults and Adults with Disabilities through Chronic Disease Self -Management Education Programs 93.734 14,285 State and Local Public Health Actions to Prevent Obesity, Diabetes, Heart Disease and Stroke (PPHF) 93.757 62,071 National Bioterroism Hospital Preparedness Program 93.889 250 HIV Care Formula Grants 93.917 4,213 HIV Prevention Activities -Health Department Based 93.940 16,277 Assistance Programs for Chronic Disease Prevention and Control 93.945 32,912 Block Grants for Community Mental Health Services 93.958 309,086 Block Grants for Prevention and Treatment of Substance Abuse 93.959 244,400 Maternal and Child Health Services Block Grant to the States 93.994 85,783 Total Health and Human Services 1,486,570 Office of National Drue Control Policy High Intensity Drug Trafficking Areas Program 95.001 263,360 Total Office of National Drug Control Policy 263,360 U.S. Department of Homeland Security Emergency Management Performance Grants 97.042 103,736 State Homeland Security Program Grant 97.073 120,660 224,396 Total Federal Assistance $ 4,906,438 269 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Cluster Fiscal Year Ended June 30, 2016 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 Transit Service Programs Cluster Program Enhanced Mobility of Seniors and Individuals with Disabilities Total Transit Service Programs 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 270 CFDA Number Expenditures 10.553 $ 8,390 10.555 15,421 23,811 10.665 1,493,853 1,493,853 20.513 43,684 43,684 66.468 20,027 20,027 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2016 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 deficiencies 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 deficiencies 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 tested: 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 Agriculture Indirect Programs Oregon Health Authority Special Supplemental Nutrition Program for Women, Infants and Children 10.557 Dollar threshold used to distinguish between Type A and Type B programs Auditee qualified as low-risk auditee? 271 $750,000 No Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2016 Section II - Financial Statement Findings None Noted Section III Federal Award Findings and Questioned Costs None Noted 272 Deschutes County, Oregon Schedule of Prior Year Findings Fiscal Year Ended June 30, 2016 2015-A Corrections of an Error in a Prior Period Material Weakness in Internal Control Initial Fiscal Year Finding Occurred: 2015 Finding Summary: In prior years, notes receivable were offset by a deferred inflow of resources, however notes receivable should be reported as a component of fund balance and classified accordingly. Status: Finding corrected in 2015. 273