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Home My WebLink AboutFY 2018 Comprehensive Annual Financial ReportComprehensive Annual Financial Report As of and for the Year Ended June 30, 2018 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, 2018 Prepared by: Deschutes County Finance Department Wayne Lowry, CPA Finance Director Jeanine Faria Accounting Manager Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2018 Introductory Section Letterof Transmittal.................................................................................................................................................. l OrganizationalChart .............................................................................................................................................. 5 List of Elected and Appointed Officials................................................................................................................. 7 GFOA Certification 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.................................................................................................................................... 27 Fund Financial Statements: Governmental Funds BalanceSheet.................................................................................................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ......................... 31 Statement of Revenues, Expenditures, and Changes in Fund Balances.......................................................... 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities........................................................................................ 35 Fund Financial Statements: Proprietary Funds Statementof Net Position................................................................................................................................ 36 Statement of Revenues, Expenses, and Changes in Net Position.................................................................... 37 Statementof Cash Flows................................................................................................................................. 38 Fund Financial Statements: Fiduciary Funds Statement of Assets and Liabilities................................................................................................................. 39 Notesto Financial Statements.............................................................................................................................. 40 Required Supplementary Information Schedule of the Proportionate Share of the Net Pension Liability (Asset).............................................................74 Schedule of Employer Contributions.................................................................................................................... 75 Schedule of Changes in the County's Total OPEB Liability............................................................................... 76 Schedule of Proportionate Share of the Net Pension OPEB Liability (Asset) ..................................................... 77 Schedule of County Contributions....................................................................................................................... 78 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual GeneralFund................................................................................................................................................... 79 Deschutes County Sheriff's Office.................................................................................................................. 80 Countywide Law Enforcement District........................................................................................................... 81 Rural Law Enforcement District...................................................................................................................... 82 RoadDepartment............................................................................................................................................. 83 HealthServices................................................................................................................................................ 84 PERSReserve.................................................................................................................................................. 85 Notes to Required Supplementary Information................................................................................................... 86 Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2018 Other Supplementary Information Combining and Individual Fund Statements and Schedules — Governmental Funds Major Funds and Sub -Funds Combining Balance Sheet GeneralFund........................................................................................................................................... 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances GeneralFund........................................................................................................................................... 91 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual 106 Sub -Funds of the General Fund 113 EconomicDevelopment..................................................................................................................... 94 CourtTechnology Reserve................................................................................................................. 95 Assessor, Clerk and Tax Reserve....................................................................................................... 96 HumaneSociety of Redmond............................................................................................................. 97 Project Development Fund................................................................................................................. 98 GeneralCounty Projects..................................................................................................................... 99 GeneralCapital Reserve................................................................................................................... 100 CommunityJustice — Juvenile.......................................................................................................... 101 CodeAbatement............................................................................................................................... 102 Vehicle Maintenance and Replacement........................................................................................... 103 Nonmajor Governmental Funds and Sub -Funds CombiningBalance Sheet.......................................................................................................................... 104 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 105 Nonmajor Special Revenue Funds CombiningBalance Sheet.......................................................................................................................... 106 Deschutes County 9-1-1 County Service District.................................................................................. 113 Deschutes County Extension and 4-H County Service District and Sub -Fund ..................................... 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 115 Deschutes County 9-1-1 County Service District................................................................................ 122 Deschutes County Extension and 4-H County Service District and Sub -Fund ................................... 123 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual JusticeCourt ........................................................................................................................................ 124 Park Acquisition and Development..................................................................................................... 125 ParkDevelopment Fees....................................................................................................................... 126 CountySchool Fund............................................................................................................................ 127 Special Transportation Fund................................................................................................................ 128 TaylorGrazing..................................................................................................................................... 129 TransientRoom Tax............................................................................................................................ 130 ii Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2018 VideoLottery....................................................................................................................................... 131 TransientRoom Tax — 1%................................................................................................................... 132 ForeclosedLand Sales......................................................................................................................... 133 Victims' Assistance............................................................................................................................. 134 LawLibrary......................................................................................................................................... 135 CountyClerk Records.......................................................................................................................... 136 CourtFacilities..................................................................................................................................... 137 Deschutes County Communication System Reserve........................................................................... 138 CommunityDevelopment................................................................................................................... 139 CDD Groundwater Partnership............................................................................................................ 140 NewberryNeighborhood..................................................................................................................... 141 GISDedicated Fund............................................................................................................................. 142 Natural Resource Protection................................................................................................................ 143 FederalForest Title III......................................................................................................................... 144 Surveyor............................................................................................................................................... 145 Public Land Corner Preservation......................................................................................................... 146 Countywide Transportation SDC Improvement Fee........................................................................... 147 DogControl......................................................................................................................................... 148 Adult Parole and Probation.................................................................................................................. 149 Deschutes County 9-1-1 County Service District................................................................................ 150 Deschutes County 9-1-1 County Service District — Equipment Reserve ............................................ 151 Extensionand 4-H............................................................................................................................... 152 Extension and 4-H Reserve (Sub -Fund of Extension and 4 -H) ........................................................... 153 Nonmajor Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Deschutes County Full Faith and Credit Debt Service........................................................................ 154 Nonmajor Capital Project Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual RoadCapital Improvement Plan.......................................................................................................... 154 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity ........................................... 156 Individual Fund Statements and Schedules — Proprietary Funds Enterprise Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual SolidWaste.......................................................................................................................................... 158 Fairand Expo Center........................................................................................................................... 159 RVPark............................................................................................................................................... 160 in Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2018 Internal Service Funds Combining Statement of Net Position....................................................................................................... 162 Combining Statement of Revenues, Expenses, and Changes in Net Position .......................................... 164 Combining Statement of Cash Flows........................................................................................................ 166 Schedule of Revenues, Expenses, and Changes in Fund Balance — Budget and Actual Facilities............................................................................................................................................... 168 AdministrativeServices....................................................................................................................... 169 Board of County Commissioners......................................................................................................... 170 Finance................................................................................................................................................. 171 FinanceReserve................................................................................................................................... 172 Legal.................................................................................................................................................... 173 HumanResources................................................................................................................................ 174 InformationTechnology...................................................................................................................... 175 Information Technology Reserve........................................................................................................ 176 Insurance.............................................................................................................................................. 177 HealthBenefits.................................................................................................................................... 178 Other Financial Schedules Schedule of Property Tax Transactions — All County Taxes....................................................................... 180 Schedule of Long -Term Debt Principal Transactions................................................................................. 181 Schedule of Long -Term Debt Interest Transactions.................................................................................... 182 Schedule of Future Debt Service Requirements of Pension Obligation Bonds ........................................... 183 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings — GovernmentalActivities......................................................................................................................... 184 Business -Type Activities........................................................................................................................ 186 Statistical Section StatisticalSection Contents........................................................................................................................ 187 Financial Trends Net Position by Component — Last Ten Fiscal Years........................................................................... 188 Changes in Net Position — Last Ten Fiscal Years................................................................................. 190 Fund Balances - Governmental Funds — Last Ten Fiscal Years........................................................... 194 Changes in Fund Balances - Governmental Funds — Last Ten Fiscal Years ........................................ 196 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ................ 198 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ................................................... 200 Principal Property Taxpayers — Current Fiscal and Nine Years Ago .................................................... 202 Property Taxes, Levies and Collections — Last Ten Fiscal Years......................................................... 203 Debt Capacity Ratios of Outstanding Debt by Type — Last Ten Fiscal Years..............................................................204 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years .................................................206 Direct and Overlapping Governmental Activities Debt........................................................................207 lv Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2018 Legal Debt Margin Information — Last Ten Fiscal Years.....................................................................208 Pledged -Revenue Coverage — Last Ten Fiscal Years...........................................................................210 Demographic and Economic Information Demographic and Economic Statistics — Last Ten Calendar Years......................................................211 Principal Employers — Current Year and Nine Years Ago...................................................................212 Operating Information Full -Time Equivalent County Government Employees by Function/Program — LastTen Fiscal Years.......................................................................................................................213 Operating Indicators by Function/Program — Last Ten Fiscal Years .................................................... 214 Capital Asset Statistics by Function/Program — Last Ten Fiscal Years................................................216 Audit Comments and Disclosures Required by State Regulations Audit Comments and Disclosures Required by State Regulations...............................................................218 Independent Auditor's Report Required by Oregon State Regulations ........................................................219 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................................................................................................................................................222 Single Audit Compliance Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance ......................................................224 Schedule of Expenditures of Federal Awards..............................................................................................226 Notes to the Schedule of Expenditures of Federal Awards..........................................................................229 Schedule of Findings and Questioned Costs................................................................................................234 v Introductory Section As of and for the Year Ended June 30, 2018 Deschutes County, Oregon ES coG COUNTY ADMINISTRATOR TOM ANDERSON November 2, 2018 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 (the County) as of and for the year ended June 30, 2018, 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 Deschutes County 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 224. 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, 2018, 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 County The County, formed in 1916, is located in Central Oregon 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, 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. 1300 NW Wall Street Bend, Oregon 97703 (541) 388-6565 tom.anderson@deschutes.org www.deschutes.org/cd 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 and 4-H are reported as special revenue funds of Deschutes County. The County utilizes a budget committee, consisting of the three commissioners and an equal number of citizens -at -large, to review and approve the proposed budget for each fiscal year. The annual budget serves as the foundation for Deschutes County's financial planning and control. The appropriated budget is prepared and adopted for all County funds as required by Oregon Local Budget Law (ORS Chapters 294.305-294.565). The board order adopting the budget establishes appropriations for expenditures within each fund, which cannot legally be exceeded. Budget -to -actual comparisons are provided in this report for each individual governmental and proprietary fund for which an appropriated annual budget has been adopted. For the General Fund, and the major special revenue funds, this comparison is presented beginning on page 79 as part of the required supplementary information. All other funds are presented in a subsection of this report, which starts on page 94. Local Economy Deschutes County is the outdoor recreation capital of Oregon. With snow-capped peaks dominating the skyline to the west and the wide-open high desert extending to the east, the beauty and uniqueness of Deschutes County captures the awe of locals and visitors alike. Deschutes County is a bustling, exciting place where progress and growth are hallmarks. Beginning in the early 1990s, Deschutes County experienced rapid population growth. This growth is believed to be largely due to the area's invigorating climate and year-round recreation activities. According to the Portland State Population Research Center 2017 final report, the population was estimated to be 182,930, an increase of approximately 16% since 2010, and is projected to exceed 250,000 by 2032. Recreational activities include downhill and cross-country skiing, snowboarding, fishing, hunting, hiking, trail running, rock -climbing, road and mountain biking, mountain climbing, river floating, whitewater rafting and golfing. Deschutes County is the host of diverse annual events including the Bend Brewfest, Bend Venture Conference, Sunriver Music Festival, Sisters Outdoor Quilt Show, Cascade Children's Festival/Balloons over Bend, Sisters Rodeo, WinterFest and Bend Film Festival. In Fiscal Year 2018, the County's assessed valuation of taxable property increased by 5.7%, approximately $1.24 billion, to a total of $23.2 billion. Formerly a region dependent on wood products, Deschutes County has steadily diversified its employment and economic base. For the past two decades, Deschutes County has experienced growth in the technology sector and is home to 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. 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 a working capital balance in each fund, based on the function of that fund. For most operating funds, the level is 8.3% of the 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 PERS Rates — The state retirement benefit system, known as PERS, sets rates for employers every two years. Due to a number of factors, PERS rates charged to employers are anticipated to increase significantly over the next several years. The County anticipates its average employer rate to nearly double from FY 2015 to FY 2022, with increases effective July 1, 2019 and again effective July 1, 2021. The resources in the County's PERS Reserve Fund will be used over the next four to six years to lower the PERS costs to departments. The balance in the reserve fund at June 30, 2018 is $14.5 million and the balance is projected to increase by $1.7 million during FY 2019. The County will continue to monitor employer rates and use the reserve fund to smooth rate increases to departments. 2 In order to stabilize the funding of the Deschutes County 9-1-1 County Service District, the former district was replaced with a new district effective July 1, 2017. The former district relied on an existing permanent levy and local option levies. With a permanent rate of $.425 per $1,000 of assessed valuation, reliance on local option levies will no longer be necessary. The levy authority provides for adequate funding into the future for growth and enhanced services. The rate for FY 2019 remains unchanged from FY 2018 at $.3618 per $1,000 of assessed valuation. Major Initiatives A long range financial plan was established for the Sheriff's Office during the FY 2019 budget process. The Plan supported the Sheriff's recommendation to increase the tax rate of the Countywide Law Enforcement District levy by $.08 per $1,000 of assessed valuation and to decrease the tax rate of the Rural Law Enforcement District's levy by $.06 cents per $1,000 of assessed valuation. For FY 2019, the budget committee and the Board of County Commissioners approved an increase of $.06 per $1,000 of assessed valuation for the Countywide LED levy and a reduction of $.06 per $1,000 of assessed valuation for the Rural LED levy. Each of these districts has capacity for increases in the tax rate. In February 2017, the County Health Department was selected to participate in a federally funded pilot project known as Certified Community Behavioral Health Clinic or CCBHC. This program is sponsored by the Federal Substance Abuse and Mental Health Service Administration. Oregon was one of eight states selected for this project. The project is funded by a grant of $5.6 million from April 2017 to March 2019. The Health department added twenty-nine staff positions to carry out the grant requirements. It is not clear whether the grant will be renewed, therefore, all staff added for the project are limited duration employees. The County plans to spend over $50 million during the next five years on road improvement projects. House Bill 2017-A, signed by the Governor, will phase in increases to the State Gas Tax and Vehicle Registration fees over the next several years. This action increases the resources for road maintenance and improvements for the County by an estimated $4.9 million per year over the next several years. This will allow the County to move forward on a number of projects in the Capital Improvement Plan that have not been funded in the past. The Health Department and the Sheriff's Office are partnering on the proposed development of a Stabilization Center for Deschutes County. The purpose of a crisis and sobering center is to provide a site for public safety and health staff to place individuals with acute mental health or substance abuse issues in lieu of sending them to jail. The Center is expected to have coordinated services for mental health in a secured and safe facility. Resources for the Center are included in both the Sheriff's Office budget and the Health Department's budget for FY 2019. The facility, although still in the planning stages, will likely be located within the Public Safety Campus, in the City of Bend, and will be available to area partner agencies. The Oregon State University Extension Service is in need of additional space from which to run its programs. The Extension and 4-H County Service District provides resources for the local office for faculty and staff to operate extension and 4-H programs throughout the County. The County has agreed to provide the financing to the District for a portion of the costs of constructing a building adjacent to its existing building. Such financing will be repaid over twenty years with resources from the District's tax levy. Architectural and financing plans are expected to be completed in the fall of 2018 with construction to be completed by October 2019. 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, 2017. This was the 17th 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 2018. 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. 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, Tom Anderson County Administrator Wayne Lowry Finance Director Citizens of Deschutes County rtysassar CeurlyGIPA Ccurly�rff EaadcfComnissioners CsrctAwmey Justoeofthe CountyT•aasLrar NarcyRaikEnsFip L. 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CPAs & BUSINESS ADVISORS Independent Auditor's Report To the Deschutes County 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, 2018, 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, 2018, 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. 9 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE Emphasis of a Matter — Adoption of New Accounting Standard As described in Notes 1.E.10 and 4.F to the financial statements, the County adopted the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which has resulted in a restatement of the net position as of July 1, 2017. Our opinions are not modified with respect to this matter. Emphasis of a Matter — Correction of an Error As described in Note 4.17 to the financial statements, the County identified, and self -disclosed, an expense that should have been reported as expenditure in its Health Services Fund. In addition, the County identified, and self -disclosed, advance payments of grant funds that should have been reported as unearned revenue, in accordance with the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, which has resulted in a restatement of the net position as of July 1, 2017. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, schedule of proportionate share of the net pension liability (asset), schedule of employer contributions, schedule of changes in the County's net OPEB liability, schedule of changes in the County's RHIA total OPEB liability, 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 required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's financial statements. The budgetary schedules described above 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. The budgetary schedules have 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 an d other records used to prepare the basic financial statements or to the basic financials statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 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 — governmental funds, the statement of changes in assets and liabilities — agency funds — detail activity, combining individual fund statements and schedules — proprietary funds, schedule of property tax transactions, schedules of long- term debt transactions, schedules of future debt service requirements, and statistical section. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of the financial statements. The combining and individual nonmajor fund financial statements 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 10 basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated November 2, 2018 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. Report on Other Legal and Regulatory Requirements In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued our report dated November 2, 2018, on our consideration of the County's compliance with certain provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on compliance. For Eide Bailly LLP Boise, Idaho November 2, 2018 11 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 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, 2018. 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 liabilities and deferred inflows of resources by $187,187,000 as of June 30, 2018, an increase of $11,133,000 in net position from June 30, 2017, as restated. This increase is due primarily to the effects of a change in the computation of the Closure and Post -Closure costs of the County's Landfill, investment of Road's gas tax and vehicle registration fees in infrastructure and current year resources dedicated to reserves for future capital needs. • The County reported a combined fund balance at June 30, 2018 of $123,878,000 for its governmental funds, an increase of $12,972,000 from June 30, 2017, as restated. Of this balance, $44,107,000 is available to meet the County's obligations. The remainder is either non -spendable or restricted. • County General Fund o The General Fund's fund balance, including the sub -funds of the General Fund, was $29,176,000 as of June 30, 2018, an increase of $5,349,000 over the balance at June 30, 2017. June 30, 2018 June 30, 2017 General Fund (Operations) $ 11,944,000 $ 10,965,000 Sub -funds of the General Fund 17,232,000 12,862,000 $ 29,176,000 $ 23,827,000 o Fund balance is 75% percent of the Fund's combined revenues and transfers in and 87% of the fund's combined expenditures and transfers out. • The County's Assessed Valuation of Taxable Property increased by 5.7% in Fiscal Year 2018. • Total bonded debt was $54,666,000 as of June 30, 2018, compared to total bonded debt of $58,611,000 as of June 30, 2017. 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 required supplementary information and 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. 12 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 The Statement of Activities presents information showing how Deschutes County's net position changed during the fiscal year. Changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued compensated leave that will result in cash flows in future fiscal periods. Each of these government -wide financial statements, Statement of Net Position and Statement of Activities, distinguish functions of Deschutes County that are supported primarily by taxes and inter -governmental revenues (governmental activities) from other functions that are intended to recover all, or a significant portion of, their costs through user fees and charges (business -type activities). The governmental activities of Deschutes County include general government, public safety, county roads and health services. The business -type activities of Deschutes County include Solid Waste operations, the Fair & Expo Center and the RV Park. The government -wide financial statements include four county service districts: Countywide Law Enforcement District, Rural Law Enforcement District, Deschutes County 9-1-1 County Service District and Deschutes County Extension and 4-H Service District. These entities are legally separate but are included as blended component units based on the criteria described in the Notes to Financial Statements (Note 1 — Summary of Significant Accounting Policies). Requests for copies of the separately issued financial statements for the county service districts should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Suite 200, Bend, OR 97703. The government -wide financial statements can be found on pages 24-27 of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Deschutes County, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Each of the funds of Deschutes County is classified in one of three categories: governmental funds, proprietary funds or fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and ou�flows ofspendable resources, as well as on balances ofspendable 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 significant differences between these two statements. Capital assets of $144,960,000 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 $158,896,000, 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 and other post -employment benefit plan, are reported in the Statement of Net Position but not on the Balance Sheet. The full reconciliation can be found on page 31. 13 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Governmental Activities column of the Statement of Activities The fund balances of the County's governmental funds increased by $12,972,000 during FY 2018 while the net position of governmental activities increased by $7,126,000. This $5,846,000 difference is due to fiscal year transactions that are reported differently on each statement. Repayments of long term debt of $3,013,000 and expenditures for the acquisition of capital assets of $7,750,000 are not reported as expenses on the Statement of Activities. Instead they are reductions of noncurrent liabilities and additions to capital assets, respectively. Other reconciling items include accrued revenues and expenses and changes in accruals and deferrals netting a reduction in net position of $18,957,000. The largest item is the change in the deferred outflows of resources in the amount of $16,358,000 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. Deschutes County reported activity in forty-nine (49) individual governmental funds and sub -funds during Fiscal Year 2018. 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 (Sheriffs Office, Countywide Law Enforcement District, Rural Law Enforcement District, Road, PERS Reserve and Health Services). Data from all other governmental funds are combined into a single, aggregated presentation. Individual data for each of these nonmajor governmental funds is provided in the form of combining statements in the "Other Supplementary Information" section of this report and in the budget to actual comparison schedules. Deschutes County adopts an annual budget for each of its funds and a budgetary comparison statement has been provided for each to demonstrate compliance with its annual budget. The Basic Governmental Fund Financial Statements can be found on pages 28-35 of this report. Proprietary funds. Deschutes County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions as business -type activities in the government -wide financial statements. Deschutes County uses enterprise funds to account for its Solid Waste, Fair & Expo Center 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 facilities, 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 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 36-38 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 39 of this report and the Statement of Changes in Assets and Liabilities on page 156. 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 40-72 of this report. 14 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 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 74. The combining statements referred to above in connection with nonmajor governmental funds and internal service funds are presented in the "Other Supplementary Information" section of this report. Government -wide Financial Analysis Deschutes County Net Position The County's net position at June 30, 2018 was $187,187,000. 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 largest portion, approximately 80% of Deschutes County's net position represents its net investment in capital assets including land, infrastructure, buildings, roads and equipment. These assets are used to provide core services to Deschutes County citizens and are not available for future spending. The portion of net position restricted for use in its long-term capital projects, debt service requirements, public safety, roads and health programs totaled $51,604,000 or 28%. Due in part to the net pension liability and liability for Other Post -Employment Benefits (OPEB) and the impact on net position, the unrestricted category of net position is negative for both governmental activities and business -type activities by a total of $15,163,000. 15 Governmental activities Business -type activities Total 2018 2017 (as restated) 2018 2017 (as restated) 2018 2017 (as restated) Assets other than capital assets $ 171,529,786 $ 151,761,673 $ 10,852,017 $ 11,051,529 $ 182,381,803 $ 162,813,202 Capital assets 146,402,372 145,389,017 47,723,420 47,120,674 194,125,792 192,509,691 Total assets 317,932,157 297,150,690 58,575,437 58,172,203 376,507,595 355,322,893 Deferred outflows of resources 29,345,870 47,217,347 1,044,385 1,727,249 30,390,255 48,944,596 Non-current liabilities 160,276,693 170,293,088 22,792,352 26,636,115 183,069,045 196,929,203 Current liabilities 32,235,314 25,924,934 1,773,791 2,189,752 34,009,105 28,114,686 Total liabilities 192,512,008 196,218,022 24,566,143 28,825,867 217,078,150 225,043,889 Deferred inflows of resources 2,559,852 3,069,682 72,930 100,242 2,632,782 3,169,924 Net position: Net investment in capital assets 113,719,602 108,576,334 37,025,828 35,249,431 150,745,430 143,825,765 Restricted 51,604,150 57,479,929 - - 51,604,150 57,479,929 Unrestricted (13,117,584) (20,975,929) (2,045,079) (4,276,090) (15,162,660) (25,252,019) Net position $ 152,206,168 $ 145,080,337 $ 34,980,750 $ 30,973,341 $ 187,186,919 $ 176,053,678 The largest portion, approximately 80% of Deschutes County's net position represents its net investment in capital assets including land, infrastructure, buildings, roads and equipment. These assets are used to provide core services to Deschutes County citizens and are not available for future spending. The portion of net position restricted for use in its long-term capital projects, debt service requirements, public safety, roads and health programs totaled $51,604,000 or 28%. Due in part to the net pension liability and liability for Other Post -Employment Benefits (OPEB) and the impact on net position, the unrestricted category of net position is negative for both governmental activities and business -type activities by a total of $15,163,000. 15 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 Changes in Net Position Expenses General government Governmental activities Business -type activities Total 36,105,776 FY 2018 2017 (as restated) FY 2018 2017 (as restated) FY 2018 2017 (as restated) Program revenues: 65,276,283 County roads 18,122,984 17,627,051 Charges for services $ 45,185,450 $ 44,224,140 $ 14,136,994 $ 12,886,497 $ 59,322,444 $ 57,110,637 Operating grants and 39,370,403 Education - 263,106 contributions 52,587,329 40,087,120 786,895 570,037 53,374,224 40,657,157 Capital grants and 2,175,774 Solid waste - - 10,131,364 10,028,101 contributions 1,918,307 1,084,073 - - 1,918,307 1,084,073 General revenues: 4,173,908 RV park - - 411,993 407,928 Property taxes 69,774,866 66,491,398 170,660,731 2,368,281 69,774,866 68,859,679 Other taxes 7,011,471 6,408,477 - - 7,011,471 6,408,477 Other 1,940,860 1,351,378 129,837 74,094 2,070,697 1,425,472 Total revenues 178,418,284 159,646,586 15,053,726 15,898,909 193,472,010 175,545,495 Expenses General government 36,105,776 29,748,439 36,105,776 29,748,439 Public safety 64,258,765 65,276,283 64,258,765 65,276,283 County roads 18,122,984 17,627,051 18,122,984 17,627,051 Health and welfare 50,068,445 39,370,403 50,068,445 39,370,403 Education - 263,106 - 263,106 Interest on long-term debt 2,104,761 2,175,774 - - 2,104,761 2,175,774 Solid waste - - 10,131,364 10,028,101 10,131,364 10,028,101 Fair & expo center 4,504,592 4,173,908 4,504,592 4,173,908 RV park - - 411,993 407,928 411,993 407,928 Total expenses 170,660,731 154,461,056 15,047,948 14,609,937 185,708,679 169,070,993 Special Item - Change in Estimate - - 3,369,910 - 3,369,910 - Change in net position before transfers 7,757,554 5,185,530 3,375,687 1,288,972 11,133,241 6,474,502 Transfers (631,722) (690,447) 631,722 690,447 - - Change in net position 7,125,831 4,495,083 4,007,409 1,979,419 11,133,241 6,474,502 Net position, Beginning of year 145,080,337 153,719,221 30,973,341 29,374,866 176,053,678 183,094,087 Net position, End of year 152,206,168 158,214,304 34,980,750 31,354,285 187,186,919 189,568,589 Prior Period Adjustments Correction - (2,743,847) - - - (2,743,847) GASB #75 - (10,390,120) - (380,944) - (10,771,064) Net position, End of year $ 152,206,168 $ 145,080,337 $ 34,980,750 $ 30,973,341 $ 187,186,919 $ 176,053,678 16 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 The net position of the County increased by $11,133,000 during FY 2018. Discussion and analysis of the changes for both governmental activities and business -type activities are included below. CHANGES DUE TO GOVERNMENTAL ACTIVITIES Governmental activities increased net position by $7,126,000, or 5%, during FY 2018. Program revenues covered 58% of program expenses during FY 2018, whereas program revenues covered 55% of program expenses during FY 2017. This increase of program revenues as a percentage of program expenses results in general revenues being available to increase the County's reserve levels. Governmental activities rely on general revenues to support the function. Property taxes make up the largest share of this support at 44% and are levied for general purposes, law enforcement, 9-1-1 operations and extension/4-H services. Fees, fines and charges provide 25% of governmental activities funding including state gas tax and registration fees, law enforcement related fees and fees for services provided by the Clerk's Office and Community Development. Federal and State operating grants and contributions provide significant resources that are used for public safety and health services. CHANGES DUE TO BUSINESS -TYPE ACTIVITIES Business -type activities increased net position by $4,008,000 or 13%. Solid Waste: The County's solid waste operation experienced an increase in net position of $4,511,000. A significant portion of the landfill's costs are fixed, therefore the 14% increase in FY 2018's revenues over the prior year resulted in operating income of $1,237,000 as compared to an operating loss in FY 2017 of $17,000. The change in estimating the cost of closure and post -closure of the landfill resulted in a one-time adjustment to the liability of $3,370,000. The full cost of operations includes depreciation and accrual of landfill closure and post -closure costs. Fair & Expo Center: The operating loss from the County's Fair & Expo Center was ($1,979,000). Revenues were $200,000 less than the prior year, yet operating expenses increased by $367,000. RV Park: Operating income for the RV Park was $55,000, an increase of $44,000 over FY 2017. Utilization of the RV Park was 30.3% in FY 2018. 17 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 Expenses and Program Revenues - Governmental Activities 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 General Public safety County roads government Revenues by Source - Governmental Activities Property taxes 39% CapitE contributions 1% Other taxes 4% ❑ Program Expenses ■ Program Revenues Health and Interest and fiscal welfare charges Charges for services IN nvestment revenues 1% r., -11, .y .1j, - nts and contributions 30% Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 Expenses and Program Revenues - Business -type Activities 12,000,000 10,000,000 4,000,000 2,000,000 Solid waste Fair and expo center RV Park Revenues by Source - Business -type Activities Charges for sprvlr:ps revenues 1% 19 g grants ributions YO Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 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, 2018, $123,878,000 is the reported combined ending fund balance for Deschutes County's governmental funds, an increase of $12,972,000 from June 30, 2017, as restated. 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 $5,349,000, +22% o Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District (combined): increase of $1,412,000,+10% o Road: increase of $2,615,000, +22% o Health Services: decrease of $1,091,000, -8% o PERS Reserve: increase of $1,194,000, +9% NONMAJOR o Nonmajor special revenue: increase of $1,658,000, +6% o Nonmajor debt service: increase of $103,000, +18% o Nonmajor capital project: increase of $1,733,000, +22% Significant Changes in Major Funds General Fund: As of June 30, 2018, the fund balance of Deschutes County's General Fund was $29,176,000. Of this fund balance, $17,714,000 is nonspendable, restricted, committed or assigned for specific use and $11,462,000 is unassigned. One measure of the General Fund's liquidity is the relationship of the fund balance to the Fund's total expenditures. The fund balance as of June 30, 2018, for the General Fund is 123% of total General Fund expenditures and 87% of total General Fund combined expenditures and transfers out. Deschutes County's General Fund balance increased by $5,349,000, 22%, during Fiscal Year 2018. Revenues increased by nearly $3 million, 8%, over the prior year. Property tax revenues increased by $1 million, 4%, intergovernmental payment were up $632,000 and payments from other County funds for inter -fund services increased by $1 million. Expenditures increased by only $86,000, less than 1%. 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 Sheriffs services outside city boundaries. Resources from the two law enforcement districts, totaling $31,837,000, were paid to the Sheriff s fund where Sheriff s services expenditures are recorded. Combined fund balances of these three major funds increased by $1,412,000. Property tax revenue increased by 6% over the prior year due to the increase in assessed value. Road: The fund balance of the Road fund increased by $2,615,000, or 22% during FY 2018. During FY 2018, $4,000,000 was transferred from the Road Department's Operating Fund to its capital project fund. Adjusting for the effect of the transfer, the fund balance increased by $6,615,000. The Road fund receives the majority of its revenue from the State of Oregon gas tax, vehicle registrations and from the federal payment in lieu of taxes and the secure rural schools program. Motor vehicle revenues in FY 2018 were $1,181,000 more than received in FY 2017. The fund balance will be used in the future to maintain county road systems. 20 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 Health Services: Fund balance for the Health Services Fund decreased by $1,091,000 or -8%. This was anticipated and is projected to continue to decline over the next several years given the expected changes to the delivery of health services in Oregon. PERS Reserve: The resources of the PERS Reserve have been increasing since FY 2015. Most of the FY 2018 increase is due to the transfer of $2,000,000 from the General Fund. The PERS Reserve fund has been reported in FY 2018 as a major fund because the assets exceed 10% of the total reported governmental assets. The combined fund balances of the County's nonmajor special revenue funds, increased by $1,658,000. The Community Development Department's fund balance increased by $1,363,000 due to the continued strength in real estate development. The County assesses fees for future transportation requirements and this contributed $527,000 to the fund balance of the Countywide Transportation SDC Improvement fund during FY 2018. The resources of the debt service fund increased by $103,000 during the fiscal year as the payments from long-term leases received on the properties financed with debt exceeded the current year debt service requirements. The County established a capital project fund for major road projects in FY 2017 with $8,068,000 of resources provided by a transfer from the Road Department, a major fund. During FY 2018, an additional $4,578,000 was transferred into the fund. Expenditures for road projects during FY 2018 totaled $2,934,000 resulting in an increase in fund balance of $1,733,000. 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, 2018, the net position of the Solid Waste Department was $16,236,000, an increase of $4,511,000. The net investment in capital assets increased by $2,304,000 and the unrestricted net position increased by $1,955,000. With a continued strong local economy, projections show the Solid Waste Department revenues will continue to be adequate to cover the cost of current operations. 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, 2018 is $8,744,000. The June 30, 2018 net position of the Fair and Expo Center was $17,507,000, a decrease of $730,000. As the Fair & Expo center is a reason why many people visit Central Oregon, beginning in FY 2019, resources from the County's transient room tax will be available to support this activity. The County opened its RV Park in July 2007. After an initial near -capacity usage during summer 2007, the effects of the recession impacted the operations through FY 2014. However, with a continued focus on marketing and a robust economy, the RV Park is a profitable enterprise. The unrestricted net position at June 30, 2018, was $1,238,000, an increase of $226,000. General Fund Budgetary Highlights There were five budget adjustments to the General Fund's original budget during FY 2018. Three of these, totaling $312,400, were transfers of appropriation to other County funds. One was to increase the amount appropriated for personnel in the Assessor's Office and the other to appropriate $65,283 in additional grant funds for the Veteran's department. The County's assumptions for estimating revenues are conservative. The General Fund's actual revenues were $1,504,000 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 expenditures was $608,000, approximately 3.8% of final appropriations. Factors contributing to this variance include unfilled positions in several departments and expenditures in the Clerk's Office for elections less than budgeted. 21 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 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, 2018, was $194,126,000, net of accumulated depreciation. The book value of the depreciable assets is 53% 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 51-52 of this report. Long -Term Debt. As of June 30, 2018, Deschutes County's outstanding bonded debt was $54,666,000, all of which is backed by the full faith and credit of the County. Oregon Local Gov't Pension Bonds Direct Borrowing Full Faith & Credit Obligations Total Governmental activities Business -type activities 6/30/2018 6/30/2017 6/30/2018 6/30/2017 9,521,753 $ 9,899,413 Total 6/30/2018 6/30/2017 $ 9,521,753 $ 9,899,413 1,524,633 1,726,442 6,699,467 7,420,158 8,224,100 9,146,600 32,828,494 35,262,357 4,091,506 4,302,643 36,920,000 39,565,000 $ 43,874,880 $ 46,888,211 $ 10,790,973 $ 11,722,802 $ 54,665,853 $ 58,611,013 Deschutes County's bonded debt decreased by $3,945,000 during the fiscal year due to scheduled debt repayments. Moody's Investors Services has assigned a credit rating of Aa3 to Deschutes County's Full Faith & Credit obligations and a credit rating of Aa2 to its general obligation bonds. These ratings were confirmed in FY 2018. 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 $36.7 billion, the current debt limitation for Deschutes County is $735,000,000. The County has no general obligation debt at June 30, 2018. Additional information on Deschutes County's long-term debt is included in Note 3.F on pages 53-55 of this report. Key Economic Factors and Budget Information for the Future The most recent actuarial valuation for the State of Oregon Public Employees Retirement System (PERS) was received by employers in October 2016 and included employer rates in effect July 1, 2017 through June 30, 2019. The next rate setting valuation is scheduled for October 2018 and it is anticipated that rates will increase effective July 1, 2019 and July 1, 2021. After that, PERS costs are expected to remain at the higher levels for several years. The County established a PERS Reserve fund in 2004. The balance at June 30, 2018 was $14,441,000. The purpose of the fund is to provide relief to departments as PERS rates increase. The County's FY 2019 budget includes a General Fund transfer to the PERS Reserve of $2,000,000. In addition, The FY 2019 budget anticipates a drawdown of the PERS reserve in the amount of $500,000 to partially offset increasing PERS charges to departments. This is the first step in a series of PERS reserve drawdowns anticipated by the County's PERS strategy over the next six to eight years. 22 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2018 The County's Assessed Valuation of Taxable Property increased from FY 2018 to FY 2019 by 5.9% to approximately $24.6 billion and this growth in assessed value is expected to continue. The annual property tax levy is based on the assessed value times the tax rate, not to exceed the permanent rate of $1.2783 per $1,000 of assessed valuation. For FY 2019, the County's general levy will be at a rate of $1.2183 per $1,000 of assessed value. This is a reduction of $.03 per $1,000 of assessed value from FY 2018. This decision, proposed by the County's budget committee, and approved by the County Commissioners, will reduce the burden on taxpayers by an estimated $738,000 for FY 2019. 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 ES CO44jA ,_ 7A Basic Financial Statements As of and for the Year Ended June 30, 2018 Deschutes County, Oregon 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 Other assets: Net OPEB Asset Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - refunding Deferred outflows - pension and OPEB Plans Total deferred outflows of resources See notes to financial statements Totals may not add due to rounding Deschutes County, Oregon Statement of Net Position June 30, 2018 24 Governmental Business - Type Activities Activities $ 27,144,614 127,052,096 2,414,897 8,404,863 4,173,201 132,865 1,786,302 168,196 171,277,034 13,470,541 2,004,770 $ 1,750,589 8,145,911 749,540 31,927 174,049 10,852,017 1,924,037 Total $ 28,895,202 135,198,008 2,414,897 9,154,403 4,173,201 132,865 1,818,229 342,245 182,129,051 15,394,578 2,004,770 51,933,474 - 51,933,474 1,932,000 21,626,007 23,558,008 59,883,935 21,623,563 81,507,498 15,548,339 2,525,589 18,073,928 1,629,313 24,224 1,653,537 146,402,372 47,723,420 194,125,792 252,752 - 252,752 317,932,157 58,575,437 376,507,595 824,462 201,251 1,025,713 28,521,407 843,135 29,364,542 29,345,870 1,044,385 30,390,255 Deschutes County, Oregon Statement of Net Position June 30, 2018 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 Deferred inflows - Pension and OPEB Plans Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Capital projects 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 $ 13,140,345 150,341 4,802,630 14,141,998 32,235,314 9,505,770 33,160,367 81,470,827 44,553,619 5,728,109 (14,141,998) 160,276,693 192,512,008 $ 483,962 20,013 311,514 958,301 1,773,791 457,390 1,215,794 2,434,579 10,898,843 8,744,047 (958,301) 22,792,352 24,566,143 Total $ 13,624,307 170,354 5,114,145 15,100,299 34,009,105 9,963,160 34,376,161 83,905,406 55,452,461 5,728,109 8,744,047 (15,100,299) 183,069,045 217,078,150 2,559,852 72,930 2,632,782 2,559,852 72,930 2,632,782 113,719,602 9,542,598 510,810 14,880,418 14,292,019 12,378,304 (13,117,584) 37,025,828 (2,045,079) 150,745,430 9,542,598 510,810 14,880,418 14,292,019 12,378,304 (15,162,660) $ 152,206,168 $ 34,980,750 $ 187,186,919 ES Deschutes County, Oregon Statement of Activities Year Ended June 30, 2018 Business -type: Solid Waste 10,131,364 11,187,151 - 1,055,787 Net (Expense) Revenue and Fair and Expo Center 4,504,592 2,511,127 751,807 Program Revenues (1,241,658) Changes in Net Position RV Park 411,993 438,716 35,088 Fees, Fines and Operating Capital Grants Total business -type activities 15,047,948 14,136,994 786,895 Charges for Grants and and Governmental Business -type Function/Program Expenses Services Contributions Contributions Activities Activities Total Governmental General revenues: General government $ 36,105,776 $ 16,271,509 $ 6,168,140 $ $ (13,666,127) $ $ (13,666,127) Public safety 64,258,765 4,653,490 8,484,482 Property taxes, levied for general purposes (51,120,792) (51,120,792) County roads 18,122,984 21,577,005 - 1,918,307 5,372,328 5,372,328 Health services 50,068,445 2,683,447 37,934,707 - (9,450,291) (9,450,291) Interest and fiscal charges 2,104,761 - - - (2,104,761) (2,104,761) Total governmental activities 170,660,731 45,185,450 52,587,329 1,918,307 (70,969,644) (70,969,644) Business -type: Solid Waste 10,131,364 11,187,151 - 1,055,787 1,055,787 Fair and Expo Center 4,504,592 2,511,127 751,807 (1,241,658) (1,241,658) RV Park 411,993 438,716 35,088 61,811 61,811 Total business -type activities 15,047,948 14,136,994 786,895 (124,060) (124,060) Total $ 185,708,679 $ 59,322,444 $ 53,374,224 $ 1,918,307 $ (70,969,644) $ (124,060) $ (71,093,704) General revenues: Taxes: Property taxes, levied for general purposes $ 36,746,058 $ $ 36,746,058 Property taxes, levied for sheriff services 33,028,808 33,028,808 Transient room tax 7,011,471 7,011,471 Investment earnings 1,940,860 129,837 2,070,697 Special Items - Change in estimate (See Note 4.E.) - 3,369,910 3,369,910 Transfers (631,722) 631,722 - Total general revenues, special items, and transfers 78,095,475 4,131,469 82,226,944 Change in net position 7,125,831 4,007,409 11,133,241 See notes to financial statements Totals may not add due to rounding Net position - Beginning of year (as previously reported) Prior Period Adjustment (See Note 4.17) Correction GASB #75 Net position - Beginning of year, as restated Net position - Ending of year 27 158,214,304 31,354,285 189,568,589 (2,743,847) (2,743,847) (10,390,120) (380,944) (10,771,064) 145,080,337 30,973,341 176,053,678 $ 152,206,168 $ 34,980,750 $ 187,186,919 Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2018 See notes to financial statements Totals may not add due to rounding 28 Countywide Law Rural Law Enforcement Enforcement General Fund Sheriff District District Road ASSETS Cash and cash equivalents $ 5,759,485 $ 62,690 $ 1,362,714 $ 1,242,436 $ 2,274,173 Investments, at fair value; plus accrued interest 26,957,881 295,224 6,378,126 5,816,743 10,641,900 Taxes receivable 695,683 - 523,279 235,929 - Accounts receivable 349,819 351,605 - - 1,015,879 Notes and contracts receivable 3,368,884 - - - - Assessments receivable - - - - 132,865 Inventory - - - - 1,786,302 Total assets $ 37,131,753 $ 709,520 $ 8,264,119 $ 7,295,108 $ 15,851,118 LIABILITIES Liabilities: Accounts payable $ 1,359,444 $ 658,406 $ - $ - $ 1,426,234 Deposits 18,592 - - - - Unearned revenue 3,033,363 51,113 - - - Total liabilities 4,411,399 709,520 - - 1,426,234 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 621,400 - 468,001 210,808 - Unavailable revenue - special assessments - - - - 132,865 Unavailable revenue - contracts of sale 2,923,443 - - - - Total deferred inflows of resources 3,544,843 - 468,001 210,808 132,865 FUND BALANCES Nonspendable 445,442 - - - 1,786,302 Restricted - - 7,796,118 7,084,300 12,505,718 Committed 10,670,276 - - - - Assigned 6,598,027 - - - - Unassigned 11,461,766 - - - - Total fund balances 29,175,511 - 7,796,118 7,084,300 14,292,019 Total liabilities, deferred inflows of resources and fund balances $ 37,131,753 $ 709,520 $ 8,264,119 $ 7,295,108 $ 15,851,118 See notes to financial statements Totals may not add due to rounding 28 Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2018 See notes to financial statements Totals may not add due to rounding 29 Other Total Health PERS Governmental Governmental Services Reserve Funds Funds ASSETS Cash and cash equivalents $ 2,644,288 $ 2,541,666 $ 6,606,269 $ 22,493,722 Investments, at fair value; plus accrued interest 12,368,122 11,899,378 30,922,874 105,280,248 Taxes receivable - - 960,006 2,414,897 Accounts receivable 6,013,598 - 630,302 8,361,203 Notes and contracts receivable - - 804,316 4,173,201 Assessments receivable - - - 132,865 Inventory - - - 1,786,302 Total assets $ 21,026,009 $ 14,441,045 $ 39,923,767 $ 144,642,439 LIABILITIES Liabilities: Accounts payable $ 7,021,569 $ - $ 962,603 $ 11,428,256 Deposits - - - 18,592 Unearned revenue 1,626,136 - 73,427 4,784,038 Total liabilities 8,647,705 - 1,036,030 16,230,886 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - 177,532 1,477,741 Unavailable revenue - special assessments - - - 132,865 Unavailable revenue - contracts of sale -- - 2,923,443 Total deferred inflows of resources - - 177,532 4,534,049 FUND BALANCES Nonspendable - - - 2,231,743 Restricted 12,378,304 - 37,774,635 77,539,076 Committed - 14,441,045 935,571 26,046,892 Assigned - - - 6,598,027 Unassigned - - - 11,461,766 Total fund balances 12,378,304 14,441,045 38,710,206 123,877,503 Total liabilities, deferred inflows of resources and fund balances $ 21,026,009 $ 14,441,045 $ 39,923,767 $ 144,642,439 See notes to financial statements Totals may not add due to rounding 29 ES Deschutes County, Oregon Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2018 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 Debt refunding costs Oregon PERS OPEB RHIA Plan Internal service funds are used by the County to charge the cost of insurance, facilities, administration, finance, legal, human resources and information technology to County funds. The net position of the internal service funds is included in governmental activities in the statement of net position. Some of the County's receivables will be not be collected soon enough to pay for the current year'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, 2018, 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 and OPEB RHIA plans Net position of governmental activities See notes to financial statements Totals may not add due to rounding 31 (150,341) (43,874,880) (678,738) (30,499,318) (75,257,824) (8,434,529) 123,877,503 144,960,329 26,369,742 824,462 252,752 12,656,696 4,534,049 (158,895,631) (2,373,735) 152,206,168 Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 EXPENDITURES Current: General government 16,136,246 - - Countywide Law Rural Law 6,375,507 38,195,466 22,101,578 9,785,172 - County roads Enforcement Enforcement - 12,895,570 Health and welfare General Fund Sheriff District District Road REVENUES (4,155,630) Principal payments - - - - - Taxes - property $ 28,254,044 $ - $ 22,827,386 $ 10,238,433 $ - Taxes - other - - - - - Licenses and permits 34,325 - - - - Fines, forfeitures and penalties 6,174 468,276 - - - Special assessments - - - - 66,830 Investment earnings 480,986 - 130,739 102,341 132,082 Rents 611,174 - - - 1,094 Intergovernmental 4,730,019 35,332,227 - - 18,396,273 Charges for services 3,346,348 518,231 - - 1,922,734 Contributions and donations 42,753 103,453 - - - Payments on contracts of sale 579,137 - - - - Other 64,283 9,700 - - - Total revenues 38,149,244 36,431,887 22,958,125 10,340,774 20,519,014 EXPENDITURES Current: General government 16,136,246 - - - - Public safety 6,375,507 38,195,466 22,101,578 9,785,172 - County roads - - - - 12,895,570 Health and welfare 492,617 - - - - Debt service: 2,879,521 - - (4,155,630) Principal payments - - - - - Interest - - - - - Trustee fees - - - - - Capital outlay 638,646 1,115,942 - - 853,103 Total expenditures 23,643,016 39,311,408 22,101,578 9,785,172 13,748,673 Excess (deficiency) of revenues 23,826,733 - 6,939,571 6,528,699 over expenditures 14,506,228 (2,879,521) 856,547 555,602 6,770,341 OTHER FINANCING SOURCES (USES) Transfers in 817,458 3,151,787 - - 2,000,000 Transfers out (9,974,907) (272,266) - - (6,000,000) Increase/(decrease) in inventory - - - - (155,630) Total other financing sources (uses) (9,157,449) 2,879,521 - - (4,155,630) Net change in fund balances 5,348,779 - 856,547 555,602 2,614,711 Fund balances - Beginning of year As previously reported 23,826,733 - 6,939,571 6,528,699 11,677,309 Prior period adjustment - - - - - Fund balances - beg of year, as restated 23,826,733 - 6,939,571 6,528,699 11,677,309 Fund balances - End of year $ 29,175,511 $ - $ 7,796,118 $ 7,084,300 $ 14,292,019 See notes to financial statements Totals may not add due to rounding 32 Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 See notes to financial statements Totals may not add due to rounding 33 Other Total Health PERS Governmental Governmental Services Reserve Funds Funds REVENUES Taxes - property $ - $ - $ 8,584,075 $ 69,903,939 Taxes - other - - 7,011,471 7,011,471 Licenses and permits 138,610 - 1,485,969 1,658,904 Fines, forfeitures and penalties - - 992,226 1,466,677 Special assessments - - - 66,830 Investment earnings 185,579 155,514 478,321 1,665,560 Rents 11,925 - 1,266,123 1,890,317 Intergovernmental 37,201,108 - 10,328,461 105,988,088 Charges for services 2,589,339 - 10,738,758 19,115,410 Contributions and donations 70,625 - 5,556 222,387 Payments on contracts of sale - - - 579,137 Other - - - 73,983 Total revenues 40,197,186 155,514 40,890,959 209,642,703 EXPENDITURES Current: General government - 961,437 11,963,492 29,061,175 Public safety - - 16,614,660 93,072,384 County roads - - 1,346,005 14,241,574 Health and welfare 45,264,738 - 879,198 46,636,552 Debt service: Principal payments - - 3,013,331 3,013,331 Interest - - 2,079,976 2,079,976 Trustee fees - - 2,375 2,375 Capital outlay 117,629 - 4,781,478 7,506,799 Total expenditures 45,382,367 961,437 40,680,515 195,614,167 Excess (deficiency) of revenues over expenditures (5,185,181) (805,923) 210,445 14,028,536 OTHER FINANCING SOURCES (USES) Transfers in 4,584,193 2,000,000 7,785,881 20,339,319 Transfers out (490,320) - (4,502,552) (21,240,045) Increase/(decrease) in inventory - - - (155,630) Total other financing sources (uses) 4,093,873 2,000,000 3,283,329 (1,056,356) Net change in fund balances (1,091,308) 1,194,077 3,493,774 12,972,180 Fund balances - Beginning of year 16,213,459 13,246,968 35,216,431 113,649,169 Prior period adjustment (2,743,847) - - (2,743,847) Fund balance - beg of year, as restated 13,469,613 13,246,968 35,216,431 110,905,323 Fund balances - End of year $ 12,378,304 $ 14,441,045 $ 38,710,205 $ 123,877,503 See notes to financial statements Totals may not add due to rounding 33 ES 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, 2018 Net change in fund balances - total governmental funds Financial resources provided that are not revenues Payments on land sale contracts Financial resources provided for/by Capital Assets Capital Grants Financial resources used that are not expenses Repayments on long-term debt Acquisition of capital assets 3,013,331 7,750,320 Other adjustments: non-cash revenues and expenses and changes in accruals and deferrals $ 12,972,180 (656,015) 1,918,307 10,763,651 Depreciation and amortization expense (8,996,541) Amortization of deferred debt refunding cost (73,590) Amortization of bond premium / (discount), net 43,199 Net effect of miscellaneous transactions involving capital assets (sales, trade-ins and adjustments) 70,602 Increase / (Decrease) Deferred Outflows - defined benefit pension plan (16,357,698) (Increase) / Decrease in accrued interest 7,981 Increase / (Decrease) in unavailable property taxes (129,072) (Increase) / Decrease in compensated leave (662,978) (Increase) / Decrease in net OPEB obligation (984,399) (Increase) / Decrease in net pension liability 7,568,484 (Increase) / Decrease Deferred Inflows - defined benefit pension plan 556,889 (18,957,123) Increase in Internal service fund net position 1,084,830 Total Net Adjustments - year ended June 30, 2018 (5,846,349) Change in net position of governmental activities - year ended June 30, 2018 $ 7,125,831 See notes to financial statements Totals may not add due to rounding 35 ASSETS Current assets: Cash and cash equivalents Investments, plus accrued interest Accounts 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 Buildings and improvements Equipment and vehicles Intangible Total capital assets Total assets Deschutes County, Oregon Proprietary Funds Statement of Net Position June 30, 2018 Enterprise Funds Fair & Expo Internal Solid Waste Center RV Park Total Service Funds $ 1,508,616 $ 160,040 $ 81,933 $ 1,750,589 $ 4,650,891 7,045,836 717,894 382,182 8,145,911 21,771,848 729,930 19,611 - 749,540 43,660 - 31,927 - 31,927 - - 174,049 - 174,049 168,196 9,284,382 1,103,520 464,115 10,852,017 26,634,595 1,791,352 132,685 - 1,924,037 214,032 15,192,777 4,790,410 1,642,820 21,626,007 26,691 7,307,049 13,614,248 702,267 21,623,563 - 2,175,611 349,978 - 2,525,589 214,111 24,224 - - 24,224 987,209 26,491,012 18,887,321 2,345,087 47,723,420 1,442,043 35,775,394 19,990,841 2,809,202 58,575,437 28,076,638 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - refunding 197,089 4,161 - 201,251 - Deferred outflows - pension 496,453 346,682 - 843,135 2,151,665 Total deferred outlows of resources 693,542 350,843 - 1,044,385 2,151,665 LIABILITIES Current liabilities: Accounts payable 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 (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 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position See notes to financial statements Totals may not add due to rounding 402,721 60,690 20,552 483,962 1,712,089 16,251 1,318 2,444 20,013 - - 309,184 2,330 311,514 - 677,251 85,814 195,236 958,301 4,139,181 1,096,223 457,006 220,561 1,773,791 51851,270 261,121 804,822 1,433,524 8,527,873 196,269 410,973 1,001,055 457,390 1,071,241 1,215,794 2,661,049 2,434,579 6,213,003 824,999 1,545,970 10,898, 843 - - - - 5,728,109 8,744,047 - - 8,744,047 - (677,251) (85,814) (195,236) (958,301) (4,139,181) 19,094,136 2,347,482 1,350,734 22,792,352 11,534,221 20,190,359 21804,488 11571,296 24,566,143 17,385,491 42,943 29,988 - 72,930 186,117 42,943 29,988 - 72,930 186,117 18,160,229 18,066,482 799,117 37,025,828 1,392,620 (1,924,594) (559,274) 438,789 (2,045,079) 11,264,076 $ 16,235,635 $ 17,507,209 $ 1,237,906 S 34,980,750 S 12,656,696 36 Deschutes County, Oregon Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2018 NONOPERATING REVENUES (EXPENSES) Grants - Enterprise Funds 35,088 786,895 - Investment earnings Fair & Expo 9,760 4,410 Internal 275,300 Solid Waste Center RV Park Total Service Funds OPERATING REVENUES Interest expense (181,619) (14,757) (28,284) (224,660) Charges for services $ 11,162,441 $ 2,511,127 $ 438,716 $ 14,112,283 $ 37,215,127 Miscellaneous 24,711 - - 24,711 - Total operating revenues 11,187,151 2,511,127 438,716 14,136,994 37,215,127 OPERATING EXPENSES Transfers in - 501,722 160,000 661,722 Personnel 2,295,697 1,395,287 - 3,690,984 9,485,023 Materials and services 4,728,769 2,399,511 266,328 7,394,608 27,043,441 Landfill closure/postclosure care costs 615,221 - - 615,221 - Depreciation 2,310,059 695,036 117,381 3,122,476 146,135 Total operating expenses 9,949,745 41489,835 383,709 14,823,288 36,674,599 Operating income (loss) 1,237,406 (1,978,708) 55,007 (686,295) 540,527 NONOPERATING REVENUES (EXPENSES) Grants - 751,807 35,088 786,895 - Investment earnings 115,667 9,760 4,410 129,837 275,300 Special item - Change in estimate 3,369,910 - - 3,369,910 - Interest expense (181,619) (14,757) (28,284) (224,660) - Total nonoperating revenues (expenses) 3,303,958 746,810 11,214 4,061,982 275,300 Income (loss) before transfers 4,541,364 (1,231,898) 66,221 3,375,687 815,827 OTHER FINANCING SOURCES (USES) Transfers in - 501,722 160,000 661,722 310,263 Transfers out (30,000) - - (30,000) (41,260) Net other financing sources (uses) (30,000) 501,722 160,000 631,722 269,003 Change in net position Net position - Beginning of year 4,511,364 (730,176) 226,221 4,007,409 1,084,830 (as previously reported) 11,976,445 18,366,155 1,011,685 31,354,285 12,405,651 Prior Period Adjustment GASB #75 (252,174) (128,770) - (380,944) (833,785) Net position - Beginning of year, as restated 11,724,271 18,237,385 1,011,685 30,973,341 11,571,866 Net position - End of year $ 16,235,635 $ 17,507,209 $ 1,237,906 $ 34,980,750 $ 12,656,696 See notes to financial statements Totals may not add due to rounding 37 Deschutes County, Oregon Proprietary Funds Statement of Cash Flows Year Ended June 30, 2018 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Enterprise Funds (131,168) 59,645 - Acquisition and construction of capital assets Fair & Expo 21,736 (2,544) Internal (416,802) Solid Waste Center RV Park Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Interest paid on capital debt (204,633) (17,052) (31,549) (253,233) Receipts from customers $ 11,065,989 $ 2,492,679 $ 434,963 $ 13,993,631 $ 37,274,780 Payments to employees (2,173,108) (1,317,613) - (3,490,721) (9,079,664) Payments to suppliers (4,770,295) (2,419,872) (259,857) (7,450,024) (26,438,237) Net cash provided (used) by operating activities 4,122,586 (1,244,806) 175,106 3,052,886 1,756,879 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES 54,255 (130,505) 100,160 (1,926,725) Interest Grants - 751,807 35,088 786,895 - Transfers in 65,860 501,722 160,000 661,722 310,263 Transfers out (30,000) - - (30,000) (41,260) Net cash provided (used) by noncapital financing activities (30,000) 1,253,529 195,088 1,418,617 269,003 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES 2,948 (131,168) 59,645 - Acquisition and construction of capital assets (3,725,222) 21,736 (2,544) (3,725,222) (416,802) Principal paid on capital debt (656,469) (84,773) (190,587) (931,829) (1,472) Interest paid on capital debt (204,633) (17,052) (31,549) (253,233) Net cash provided (used) by capital and related - (5,494) 1,242 (4,252) - financing activities (4,586,324) (101,824) (222,136) (4,910,285) (416,802) 2,151 29,702 25,600 CASH FLOWS FROM INVESTING ACTIVITIES - - 615,221 - $ 4,122,586 $ Sale (purchase) of investments 176,410 54,255 (130,505) 100,160 (1,926,725) Interest 133,306 11,605 5,181 150,093 326,522 Net cash provided (used) by investing activities 309,716 65,860 (125,324) 250,252 (1,600,203) Net increase (decrease)in cash and cash equivalents (184,022) (27,241) 22,734 (188,529) 8,877 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 and inventory Defined benefit pension accounts 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 1,692,639 187,281 59,199 1,939,118 4,642,020 $ 1,508,616 $ 160,040 $ 81,933 $ 1,750,589 $ 4,650,896 $ 1,237,406 $ (1,978,708) $ 55,007 $ (686,295) $ 540,527 2,310,059 695,036 117,381 3,122,476 146,135 (121,162) (12,954) 2,948 (131,168) 59,645 - 21,736 - 21,736 (2,544) 61,472 61,935 123,406 275,704 (41,526) (45,867) (1,472) (88,865) 1,198,414 - (590,656) - (5,494) 1,242 (4,252) - 33,566 17,359 - 50,925 104,054 27,551 2,151 29,702 25,600 615,221 - - 615,221 - $ 4,122,586 $ (1,244,806) $ 175,106 $ 3,052,886 $ 1,756,879 $ (25,256) $ (2,492) $ (1,683) $ (29,431) $ (83,567) 38 Deschutes County, Oregon Fiduciary Funds Statement of Assets and Liabilities June 30, 2018 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 39 Agency Fund $ 801,125 3,750,648 3,000 $ 4,554,774 $ 66,123 2,862,311 1,626,340 $ 4,554,774 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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 four 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. 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 administrative or financial control and the County does not have a financial benefit or burden due to these districts. These districts are autonomous Oregon municipal corporations and are not considered component units of Deschutes County. 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 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. Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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 when 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/expenses. Separate statements for each fund category, governmental, proprietary or fiduciary, are presented. The County maintains certain additional sub -funds for its 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 revenues generated by Sheriff's activities and 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). Property taxes levied by the Countywide Law Enforcement District are accounted for in this fund. The expenditures are limited to payments made to Deschutes County, pursuant to an intergovernmental agreement, for countywide law enforcement services. C!1 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Rural Law Enforcement District (District #2). Property taxes levied by the Rural Law Enforcement District are accounted for in this fund. The expenditures are limited to payments made to Deschutes County, pursuant to an intergovernmental agreement for patrol services in those portions of Deschutes County not served by city or special service district law enforcement departments. 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. 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. PERS Reserve. Charges to County's operating funds and General Fund transfers to maintain a reserve to off -set increases in the cost of retirement benefits as a result of an increase in the PERS rate. 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 landfill and transfer station sites. Fair & Expo Center accounts for the operations of the County's Fair & Expo Center, including the annual county fair. Additionally, the County reports the following fund types: Internal service funds account for the facilities, 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 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: program or organizational unit, debt service, transfers out, contingency and reserve for future expenditure. The County's published budget contains more specific detailed information for the above mentioned expenditure categories. Unexpected additional resources may be appropriated through the use of a supplemental budget and appropriation resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval of the Board of County Commissioners. Appropriations lapse at year-end. E,YA Deschutes County, Oregon Notes to Financial Statements June 30, 2018 E. Assets, Liabilities, Deferred Outflows/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 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, 2018, based on market prices and include accrued interest. Earnings on the pooled monies are apportioned and credited to each fund monthly, based on the average daily balances of each participating fund. 2. Receivables and payables All trade and property tax receivables are shown net of an allowance for uncollectible amounts. Notes receivable reported in governmental funds include loans that are not expected, or scheduled, to be collected in the subsequent year. The County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions within the County. Taxes are levied as of July 1 based on assessed values as of January 1. Property tax payments are due in three equal installments, on November 15, February 15 and May 15. A discount of 3% is available if taxes are paid in full by November 15 and a discount of 2% on the unpaid balance is available if taxes are paid in full by February 15. Property taxes become a lien on the property on July 1. 3. Inventories and prepaid expenses Inventories are valued at the lower of cost or market using the first in/first out (FIFO) method. For governmental funds, purchases of inventory are recorded as expenditures when purchased. An entry is made at year-end to record the change in inventory. This change is reported in the Other Financing Sources or Uses section of the Statement of Revenues, Expenditures and Changes in Fund Balances. Inventories of governmental funds are reported as an asset with a corresponding offset to nonspendable fund balance. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as expenditures in governmental funds and as prepaid items in the government -wide and proprietary fund financial statements. 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 repairs, maintenance and remodel that do not add to the value of the asset or materially extend asset lives are not capitalized. As required by GASB 72, donated capital assets are recorded at acquisition value at the date of donation. Capital assets are depreciated using the straight-line method, using a half-year convention, over the following estimated useful lives: Assets Years Buildings 30-60 Building improvements 10-15 Land improvements 10-30 Equipment and vehicles 3-20 Infrastructure 20-50 Intangibles 5 EA 191 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 5. Deferred outflows/ inflows of resources The statement of net position includes separate sections for deferred outflows of resources and deferred inflows of resources. The separate financial statement element, deferred ou flows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The separate financial statement element, deferred inflows of resources, represents a generation of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until then. Deferred inflows of resources are reported on the governmental funds balance sheets as a result of reporting using the modified accrual method. The government funds report unavailable revenues from 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 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, and 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 asset/liability and pension expense, information about the fiduciary net position of the Oregon Public Employee Retirement System cost-sharing multiple employer defined benefit pension plan (benefit plan) and additions to/deductions from the benefit plan's fiduciary net position have been determined on the same basis as they are reported by the benefit plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 8. Net other post -employment benefits (asset)/liability (Net OPEB (asset)/liability)) The Net OPEB asset or liability is reported as Other Asset or as Non-current Liability, as applicable, in the proprietary statement of net position and in the government -wide statement of net position. The asset or liability reflects the present value of expected future payments less the fiduciary net position of the trustee. 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 the General Fund's long-term receivables. CSL'! Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Restricted fund balance — constraints placed on the use of these resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors or other governments; or are imposed by law (through constitutional provisions or enabling legislation). This classification includes the long-term receivables of the special revenue funds. Committed fund balance — amounts that can be used only for specific purposes because of a resolution approved by the County's highest level of decision-making authority, the Board of County Commissioners. Such constraint remains legally binding unless removed in the same manner. Assigned fund balance — amounts that are constrained by the County's intent to be used for specific purposes, but that do not meet the criteria to be classified as restricted or committed. Intent is stipulated by the Board of County Commissioners or the department head with budgetary responsibility for such fund. This policy is established by the Financial Policies approved by the Board of County Commissioners on December 15, 2014. 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 first, if any, when expenditures are incurred for purposes for which restricted and unrestricted (committed, assigned, or unassigned) amounts are available. The County next reduces committed amounts, followed by assigned amounts then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those restricted fund balance classifications could be used. Sometimes the County will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County's policy to consider restricted—net position to have been depleted before unrestricted—net position is applied. 11. Tax Abatements Governmental Accounting Standards Board's Statement No. 77, Tax Abatement Disclosures became effective for those periods beginning after December 15, 2015. The County participates in a number of property tax abatement programs. All such abatement programs are authorized by Oregon revised statutes or by local resolution or ordinance. Some programs are initiated by the County and others by other local governments and state agencies. As the amount of taxes abated during FY 2018 is immaterial, no additional disclosure has been made. Note 2 — Stewardship, Compliance and Accountability A. Budgetary Information On an annual basis, County department personnel submit budgets to the Budget Officer for each fund for which they are responsible. The Budget Officer is appointed by the Board of County Commissioners. Based on the budgets submitted by County department personnel, the Budget Officer prepares the proposed budget, by fund, department, program, category and line item. The proposed budget includes information on the prior two years' actual revenues and expenditures, the current year budget and estimated resources and requested appropriations of such resources for the ensuing year. The proposed budget is presented by the Budget Officer to the Budget Committee for approval. The Budget Committee holds public meetings and may make changes to the proposed budget. The Budget Committee submits the approved budget to the governing body of the County for adoption. The governing body announces a public hearing, and after considering matters discussed, may make changes to the budget prior to its adoption. Such changes cannot exceed 10% of the appropriations of the approved budget or a change in the amount of the ad valorem taxes without re -publication of the budget and another public hearing. After the budget is adopted, changes to appropriations are sometimes necessary. The governing body may make additional appropriations to 1) expend new grant revenues received during the fiscal year, 2) adopt a supplemental budget for occurrences or needs not foreseen at the time the budget was adopted and 3) approve appropriation transfers. It is, however, unlawful to overspend a category of appropriation. E, R Deschutes County, Oregon Notes to Financial Statements June 30, 2018 In accordance with State statutes, appropriations are approved before the beginning of the fiscal year and lapse at June 30 of the year of appropriation. Encumbrances are not reported in the financial statements. B. Funds with Negative Fund Balances / Negative Net Position Negative net position is reported in six of the Internal Service Funds: Facilities — $1,327,383 Administrative Services — $768,980, Board of County Commissioners - $190,869, Legal — $503,914, Human Resources - $269,819 and Information Technology $1,209,506. For each of these funds, the negative net position balances are due to (1) noncurrent liabilities for compensated absences, (2) OPEB obligations and (3) noncurrent liability and deferred inflows of resources related to the defined benefit plan. 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. 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. 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, 2018 as follows: Insured (FDIC) $ 283,940 Collateralized by securities held by the pledging financial institution in the financial institution's name 9,433,875 Total $ 9,717,815 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. E,M Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Investments As of June 30, 2018, the County had the following investments and maturities: Investment Type Federal Agency Securities Corporate notes Municipal bonds Total fair value Portfolio weighted average maturity Accrued interest Investments, at fair value; plus accrued interest Fair Value $ 84,890,895 37,270,040 16,129,257 138,290,192 658,464 $ 138,948,656 Weighted Average Maturity (Days) 309 426 378 348 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. The County's investments in certain types of securities are required to be rated by nationally recognized statistical rating organizations. Commercial paper and corporate bonds must be rated at least Al/P1/F1 or A respectively by at least two nationally recognized statistical rating organizations. State and Municipal securities are required to be rated at least AA. As of June 30, 2018, the County's investments in corporate bonds were rated A to AAA and its state and municipal securities were rated Al to AA. United States Government agencies and instrumentalities that are only implicitly guaranteed by the United States were rated Aa2 to AAA. Certain agency and treasury securities are either principal or interest coupons stripped from otherwise rated securities. Other agency securities such as Federal Agriculture Mortgage Corp (FarmerMac) are not rated. 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, $48,333,000 in the State of Oregon Investment Pool (the maximum imposed by state statute), 50% in Certificates of Deposit, 25% for Bankers' Acceptances, 25% for Commercial paper and Corporate notes and 5% in any one corporation, subsidiaries or affiliates, 25% for State and Local Government Securities. On June 30, 2018, the County did not hold investments with any one issuer that exceeded these limits. Foreign Currency Risk. The County's investment policy prohibits investments that are not U.S. dollar-denominated; therefore, the County is not exposed to this risk. Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Local Government Investment Pool. The Local Government Investment Pool (LGIP) is included in the Oregon Short Term Fund (OSTF), which was established by the State Treasurer. OSTF is not subject to SEC regulation. OSTF is subject to requirements established in Oregon Revised Statutes, investment policies adopted by the Oregon Investment Council, and portfolio guidelines established by the Oregon Short Term Fund Board. The Governor appoints the members of the Oregon Investment Council and the Oregon Short Term Fund Board. The LGIP is an open-ended, no-load diversified portfolio offered to eligible participants who by law are made custodian of, or have control over, any public funds. At June 30, 2018, the fair value of the County's position in the pool is the same as the value of the pool shares, which approximates cost. The County's participation in LGIP is voluntary. 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, 2018 as follows: Reconciliation of deposits and investments to the Statement of Net Position and Statement of Fiduciary Assets and Liabilities Total deposits $ 7,970,370 Total investments, at fair value plus accrued interest 160,674,614 Total cash and cash equivalents and investments $ 168,644,984 Included in the following captions: Statement of net position Total cash and cash equivalents $ 28,895,202 Total investments, at fair value; plus accrued interest 135,198,008 Total Statement of Net Position 164,093,210 Statement of Fiduciary Assets and Liabilities - Agency Funds Cash and cash equivalents 801,125 Investments, at fair value; plus accrued interest 3,750,648 Total Fiduciary Funds 4,551,774 Total cash and cash equivalents and investments $ 168,644,984 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. E, Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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, 2018 Federal Agency Securities Corporate Notes Municipal Bonds Total assets B. Receivables Total Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs (Level l) (Level 2) (Level 3) $ 84,890,895 $ - $ 84,890,895 37,270,040 - 37,270,040 16,129,257 - 16,129,257 $ 138,290,192 $ - $ 138,290,192 $ - Receivables, as of year-end, for the major funds and the nonmajor funds 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, 2018, $2,923,443 is due on contracts from sales of real property and $1,249,758, net of allowance for uncollectible amounts of $327,328, 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. E, S9 Transient Notes and Property Taxes Room Taxes Total Taxes Accounts Contracts Assessments Receivable Receivable Receivable Receivable Receivable Receivable Total General Fund $ 695,683 $ - $ 695,683 $ 349,819 $ 3,368,884 $ - $ 4,414,387 Sheriff - - - 351,605 - - 351,605 Countywide Law Enforcement 523,279 - 523,279 - - 523,279 Rural Law Enforcement 235,929 - 235,929 - - 235,929 Road - - - 1,015,879 132,865 1,148,744 Health Services - - 6,013,598 - 6,013,598 Solid Waste - - 729,930 - 729,930 Fair & Expo Center - - - 19,611 - - 19,611 Nonmajor and Internal Service 198,135 761,871 960,006 673,962 804,316 - 2,438,284 Total $ 1,653,026 $ 761,871 $ 2,414,897 $ 9,154,403 $ 4,173,201 $ 132,865 $ 15,875,367 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, 2018, $2,923,443 is due on contracts from sales of real property and $1,249,758, net of allowance for uncollectible amounts of $327,328, 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. E, S9 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 C. Deferred Outflows of Resources Deferred outflows — refunding: the difference between the carrying value of refunded debt and its reacquisition price was deferred and is amortized on the straight-line basis over the period benefitted. Deferred outflows — defined benefit pension and OPEB Plans: the contributions made to OPERS during the year ended June 30, 2018 and other items related to the County defined benefit pension plans have been classified as a deferred outflow of resources. Deferred Outflows of Resources Deferred outflows - Refunding County Buildings (FF&C 2003) Total deferred outflows - refunding Deferred outflows - Defined Benefit Pension Plan Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on investments Changes in proportionate share Contributions subsequent to the measurement date Total deferred outflows - pension Deferred outflows - OPEB Plans Contributions subsequent to the measurement date Total deferred outflows of resources W11 Governmental Business -Type Activities Activities Total $ 824,462 $ 201,251 $ 1,025,713 824,462 201,251 1,025,713 3,939,964 14,850,679 839,340 298,171 8,286,533 28,214,686 306,721 117,737 443,780 25,082 8,910 247,625 843,135 4,057,701 15,294,459 864,422 307,081 8,534,158 29,057,821 306,721 $ 29,345,870 $ 1,044,385 $ 30,390,255 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 D. Capital Assets Capital asset activity for the year ended June 30, 2018 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, 2017 Increases Decreases June 30, 2018 $ 13,470,541 $ - $ - $ 13,470,541 7,422,583 7,401,314 (12,819,128) 21004,769 20,893,124 7,401,314 (12,819,128) 15,475,310 92,006,957 172,966 (24,273) 92,155,650 5,001,209 - (1) 5,001,208 24,939,394 7,551,830 (382,279) 32,108,945 9,054,104 1,365,943 (382,704) 10,037,343 110,551,606 5,238,973 - 115,790,579 5,441,426 1,327,855 (33,369) 6,735,912 246,994,696 15,657,567 (822,626) 261,829,637 (29,790,032) (2,481,683) - (32,271,715) (2,811,482) (257,726) - (3,069,208) (19,021,368) (1,427,193) 300,716 (20,147,845) (6,111,925) (818,819) 480,640 (6,450,104) (59,914,251) (4,045,087) 102,236 (63,857,102) (4,849,745) (290,223) 33,369 (5,106,599) (122,498,803) (9,320,731) 916,961 (130,902,573) 124,495,893 69336,836 94,335 130,927,064 $ 145,389,017 $ 13,738,150 $ (12,724,793) $ 146,402,374 51 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, 2018 July 1, 2017 Increases Decreases June 30, 2018 $ 1,924,037 $ - $ - $ 1,924,037 1,106,337 3,504,301 (4,610,638) - 3,030,374 3,504,301 (4,610,638) 1,924,077- 32,501,593 12,125 (12,132) 32,501,586 38,839,945 4,666,920 - 43,506,865 8,228,285 125,563 - 8,353,848 352,657 70,261 (17,263) 405,655 122,035 - (1) 122,034 80,044,515 4,874,869 (29,396) 84,889,988 (10,147,688) (730,342) 7 (10,878,023) (19,837,690) (2,043,168) - (21,880,858) (5,642,747) (335,502) - (5,978,249) (235,199) (37,729) 17,263 (255,665) (90,891) (6,921) 1 (97,811) (35,954,215) (3,153,662) 17,271 (39,090,606) 44,090,300 1,721,207 (12,125) 45,799,382 $ 47,120,674 $ 5,225,508 $ (4,622,763) $ 47,723,419 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 WRA $ 2,108,299 1,864,708 4,598,307 236,854 8,808,168 146,135 $ 8,954,303 $ 2,310,059 695,036 117,381 $ 3,122,476 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Operating Leases — County as Lessor of Real Property The County received $1,651,000 in lease rental revenue for the year ended June 30, 2018, and the County expects to receive approximately $4.4 million in lease rental income over the next 3 years under non -cancelable leases which were in effect at June 30, 2018. 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 $10.3 million as of June 30, 2018, and depreciation expense for Fiscal Year 2018 was $258,000. E. Interfund Activity Interfund Transfers: Transfers In Nonmajor Internal Service Fair & Expo General Sheriffs Office Health Services PERS Reserve governmental Funds RV Park Center Total Transfers Out General Fund $ $ $ 4,584,193 $ 2,000,000 $ 2,880,451 $ 310,263 $ $ 200,000 $ 9,974,907 Sheriffs Office - - 272,266 - - 272,266 Road 4,000,000 4,000,000 Health Services 490,320 - 490,320 Solid Waste 30,000 30,000 Nonmajor governmental 255,878 3,151,787 633,165 160,000 301,722 4,502,552 Internal Service Funds 41,260 41,260 Total $ 817,458 $ 3,151,787 $ 4,584,193 $ 2,000,000 $ 7,785,882 $ 310,263 $ 160,000 $ 501,722 $ 19,311,305 Interfund transfers are utilized for the following purposes: Certain special revenue funds, the Fair & Expo Center and Internal Service funds require additional resources from the General Fund for operations; certain debt service funds require transfers from operating funds to meet annual debt service requirements; resources are transferred from some operating funds to the vehicle replacement reserve fund (a sub -fund of the General Fund) and the RV Park requires additional resources from a special revenue fund to meet its debt service requirements. Resources are transferred to reserve funds and capital project funds when sufficient resources are available. 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, 2018, was approximately $539,514. The future minimum lease payments for these leases are as follows: Fiscal Year Ending June 30, 2019 2020 2021 2022 2023 Thereafter M $ 407,844 208,316 147,976 94,343 55,212 193,242 $ 1,106,933 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Notes and Bonds The County has issued Full Faith & Credit Bonds, Limited Tax Bonds and Notes, 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's June 30, 2018 balances on direct borrowings related to governmental activities and business -type activities are $1,524,633 and $6,699,467, respectively. The direct borrowings are secured by the full faith and credit and taxing power of the County. Whereas the lender may exercise any remedy in the event of default, the financing agreement is not subject to acceleration. The County has no other borrowing arrangements, including no lines of credit. Full Faith & Credit Obligation and Limited Tax bonds are direct obligations and pledge the full faith and credit of the County. These are serial bonds with original terms ranging from 20 years to 30 years with increasing amounts of principal maturing each year. Full Faith & Credit Obligation, Limited Tax bonds and Notes currently outstanding are as follows: Changes in Compensated Leave, Bonds, Notes, Claims and Landfill Costs Changes in non-current liabilities, other than those for Other Post -Employment Benefits and Net Pension Liability, for the year ended June 30, 2018, are as follows: $ 4,302,643 $ - $ (211,137) Balance at Purpose Interest Rates June 30, 2018 Bonds and Notes Increases Decreases June 30, 2018 Bonds - Governmental activities 2.00% - 6.85% $ 42,350,247 Notes - Governmental activities 1.68% - 4.00% 1,524,633 Bonds - Business -Type activities 1.68% - 4.00% 4,091,506 Notes - Business -Type activities 1.68% - 2.49% 6,699,467 $ (18,870,860) $ 5,728,109 $ 3,250,051 $ 54,665,853 Changes in Compensated Leave, Bonds, Notes, Claims and Landfill Costs Changes in non-current liabilities, other than those for Other Post -Employment Benefits and Net Pension Liability, for the year ended June 30, 2018, are as follows: Business -tune activities: Full faith & credit obligations $ 4,302,643 $ - $ (211,137) $ 4,091,506 $ 216,516 Due Within One 148,438 July 1, 2017 Increases Decreases June 30, 2018 Year Governmental activities: 6,699,467 734,594 Compensated absences 406,465 293,466 (242,540) Claims 397,930 Landfill closure and postclosure 11,498,736 615,220 (3,369,910) 8,744,046 Internal service funds $ 6,318,765 $ 18,280,204 $ (18,870,860) $ 5,728,109 $ 3,250,051 Pension obligation bonds 9,899,413 - (377,660) 9,521,753 423,139 Full faith & credit obligations 35,262,357 - (2,433,863) 32,828,494 1,948,484 Unamortized prem / (disc) 721,937 - (43,199) 678,738 43,199 Direct borrowings 1,726,442 - (201,809) 1,524,633 207,106 Compensated absences Governmental funds 7,771,551 7,703,658 (7,040,679) 8,434,529 7,338,040 Internal service funds 967,186 736,437 (632,382) 1,071,241 931,980 $ 62,667,651 $ 26,720,299 $ (29,600,452) $ 59,787,498 $ 14,141,998 Business -tune activities: Full faith & credit obligations $ 4,302,643 $ - $ (211,137) $ 4,091,506 $ 216,516 Unamortized prem / (disc) 148,438 - (40,569) 107,870 7,191 Direct borrowings 7,420,158 (720,691) 6,699,467 734,594 Compensated absences 406,465 293,466 (242,540) 457,390 397,930 Landfill closure and postclosure 11,498,736 615,220 (3,369,910) 8,744,046 - $ 23,776,441 $ 908,686 $ (4,584,848) $ 20,100,279 $ 1,356,231 During Fiscal Year 2018, $7,916,000 was paid in compensated leave — $2,311,000 from Sheriff s Office, $1,905,000 from Health Services, $736,000 from General Fund, $442,000 from Road Department, $555,000 from Deschutes County 9-1-1, $409,000 from Juvenile Community Justice, $338,000 from Community Development, $300,000 from Adult Parole & Probation $632,000 from Internal Service Funds, $243,000 from enterprise funds and the remaining $45,000 from other special revenue funds. Ell Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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 with resources in these funds. The resources to retire the pension obligation bonds are provided by charges to those operating departments with personnel. In FY 2018 the Sheriff's Office, Health Services, General, Internal Service Funds, DC 9-1-1 and Road provided 29%, 24%, 10%, 9%, 6% and 5%, respectively. The remaining 17% is provided by other governmental and proprietary funds. The full faith and credit obligations and direct borrowings are liquidated by third party rents, charges to departments occupying various buildings and general fund transfers. Debt Service Requirements Debt service requirements on the County bonds and notes at June 30, 2018, are as follows: Fiscal Year 2019 2020 2021 2022 2023 2024-2028 2029-2033 2034-2038 Total Fiscal Year 2019 2020 2021 2022 2023 2024-2028 2029-2033 Total Bonds Principal $ 2,371,623 2,519,706 2,884,600 3,073,159 3,269,824 17,553,143 8,288,193 2,390,000 $ 42,350,247 Governmental Activities Interest $ 1,970,350 1,883,166 1,576,761 1,457,568 1,321,996 4,321,876 1,284,134 332,325 $ 14,148,174 Notes from Direct Borrowings Principal Interest $ 207,106 209,448 213,909 214,077 221,493 458,600 $ 28,280 24,135 19,922 19,587 14,177 11,502 $ 1,524,633 $ 117,603 WI Business -Type Activities Bonds Notes from Direct Borrowings Principal Interest Principal Interest $ 216,516 $ 118,842 $ 734,594 $ 115,222 223,909 112,273 745,152 102,271 230,400 106,578 760,691 89,079 236,841 100,605 767,523 79,633 245,176 93,185 785,107 65,065 1,356,858 347,788 2,906,400 117,796 1,581,808 127,053 - - $ 4,091,506 $ 1,006,324 $ 6,699,467 $ 569,065 WI Deschutes County, Oregon Notes to Financial Statements June 30, 2018 G. Deferred Inflows of Resources 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: General Fund Countywide LED Rural LED Road Nonmajor funds Total Deferred Inflows of Resources Deferred Inflows of Resources Total Deferred Special Inflows of Property Taxes Assessments Contracts of Sale Resources $ 621,400 $ - $ 2,923,443 $ 3,544,843 468,001 - - 468,001 210,808 - - 210,808 - 132,865 - 132,865 177,532 - - 177,532 $ 1,477,741 $ 132,865 $ 2,923,443 $ 4,534,049 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 the County's defined benefit pension and other post -employment benefits (OPEB) plans by the application of Governmental Accounting Standards Board Statements #68 and #75 are: Deferred Inflows of Resources Deferred outflows - Defined Benefit Pension Plan Changes in proportionate share Differences between employer contributions and employer's proportionate share of system contributions Deferred outflows - OPEB Plans Changes in proportionate share Net difference between projected and actual earnings on investments Total deferred inflows of resources 061 Governmental Business -Type Activities Activities Total $ 884,620 $ 26,435 $ 911,055 1,555,925 46,495 1,602,420 2,247 - 2,247 117,060 - 117,060 $ 2,559,852 $ 72,930 $ 2,632,782 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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). Fund Balances: Nonspendable: Long-term Notes Receivable Inventory Total Nonspendable Restricted to: Public safety Economic development Health services General government Marketing & promotion Law library Park Development and Rangeland Technology Improvements Road improvement and maintenance Total Restricted Committed to: Economic development Economic stabilization Court activities Health services Debt Service Communication systems Expansion of facilities Total Committed Assigned to: Public safety General government Technology Improvements Fleet repair & replacement Total Assigned Unassigned: Total Fund Balance Major Special Revenue Funds General Fund LED #1 LED #2 Road Health Services PERS Reserve Other Funds Total $ 445,442 $ $ $ - $ - $ $ $ 445,442 1,786,302 1,786,302 445,442 1,786,302 2,231,743 7,796,118 7,084,300 10,961,769 25,842,187 - - - 2,074,140 2,074,140 12,378,304 90,202 12,468,506 - 9,089,015 9,089,015 455,122 455,122 350,199 350,199 1,120,889 1,120,889 273,916 273,916 12,505,718 13,359,382 25,865,100 7,796,118 7,084,300 12,505,718 12,378,304 37,774,634 77,539,075 170,530 - 170,530 - 14,441,045 - 14,441,045 - 157,228 157,228 57,981 57,981 661,151 661,151 - 59,211 59,211 10,499,747 - - 10,499,747 10,670,276 14,441,045 935,571 26,046,893 1,342,839 - - 1,342,839 2,997,866 2,997,866 1,139,113 1,139,113 1,118,208 1,118,208 6,598,027 6,598,027 11,461,766 11,461,766 29.175.51 S 7796.118 7.084300 14292.019 12378304 14.441.045 38.710205 123.877.503 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 Deschutes County 9-1-1 County Service Districts are each special revenue funds funded through voter approved property taxes for their specific purposes. Funds balances, restricted in LED #1 and LED #2, are not restricted for specific purposes but rather exist for liquidity purposes due to the seasonal nature of property tax collections. Fund balances of Deschutes County 9-1-1 are restricted to provide liquidity. 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 2019 and beyond. WFA Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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. I. 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 271 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. Note 4 — Other Information A. Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County purchases commercial insurance for property coverage, fidelity bonding, excess workers' compensation claims, excess general liability claims and stop loss on its medical/dental risks. It self -insures against losses for general liability (for claims up to $1 million), workers' compensation, medical and dental benefits, unemployment benefits and other risks. Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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 medical/dental plan and unemployment insurance. Settled claims have not exceeded insurance coverage in any of the past three fiscal years. The County estimates liabilities for incurred losses on both reported and unreported claims for general and vehicle/fleet liability, workers' compensation and employee medical coverage. Workers' compensation, general and vehicle/fleet liability estimates are based primarily on individual case estimates for reported claims and through historical data for unreported claims as determined by the County's Risk Management department. Liabilities are based on estimated total cost of settling claims. Liabilities include an amount for claims 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 net position as of June 30, 2018 of $1,328,000. The net position of the Health Benefits fund (medical/dental) at June 30, 2018, is $14,223,000 which is 88% of Fiscal Year 2018 claims expense. Changes in the Insurance Funds' claim liabilities are as follows: Claims payable, June 30, 2016 FY 2017 change in estimate FY 2017 claims expense FY 2017 claims paid Claims payable, June 30, 2017 FY 2018 claims expense FY 2018 claims paid Claims payable, June 30, 2018 B. Contingent Liabilities and Commitments Insurance Health Benefits Total $ 5,868,719 $ 2,555,309 $ 8,424,028 (1,110,916) - (1,110,916) 1,060,077 15,687,846 16,747,923 1,607,056 16,135,215 17,742,271 4,210,825 $ 2,107,940 $ 6,318,765 2,053,932 16,226,273 18,280,205 1,308,639 17,562,221 18,870,860 $ 4,956,117 $ 771,992 $ 5,728,109 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, 2018, the County had no material commitments outstanding. M Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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/docs/2017_cafr.pdf. Benefits Provided Under the Programs G11] 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. G11] Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Contributions OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other 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, 2015 actuarial valuation, which became effective July 1, 2017. 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, 2018 were $8,534,158, 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, 2018 were: Chapter 238 - Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 15.64% 9.25% Police and Fire 21.12% 14.02% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the County reported a liability of $83,905,406 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2015 and rolled forward to June 30, 2017. The County's proportion of the net pension liability was based on the County's projected long-term contribution effort as compared to the total projected long-term contribution effort of all employers. Rates of every employer have at least two major components: Normal 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. CelI 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 238A.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 2018 and beyond will the COLA in Fiscal Year 2018 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 accumulate 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, 2015 actuarial valuation, which became effective July 1, 2017. 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, 2018 were $8,534,158, 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, 2018 were: Chapter 238 - Tier One and Tier Two Chapter 238A - OPERS Pension Program (OPSRP - DB) General Service 15.64% 9.25% Police and Fire 21.12% 14.02% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the County reported a liability of $83,905,406 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2015 and rolled forward to June 30, 2017. The County's proportion of the net pension liability was based on the County's projected long-term contribution effort as compared to the total projected long-term contribution effort of all employers. Rates of every employer have at least two major components: Normal 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. CelI Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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, 2018, the County's proportion was 0.62244192 percent. For the year ended June 30, 2018, the County recognized a pension expense of $17,274,506. At June 30, 2018, 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.G. CSA Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 4,057,701 $ - Changes of assumptions 15,294,459 Net difference between projected and actual earnings on investments 864,422 - Changes in proportionate share 307,081 911,055 Contributions made to the plan subsequent to measurement date 8,534,158 - Differences between employer contibution and employer's proportionate share of system contributions - 1,602,420 $ 29,057,821 $ 2,513,475 Net Deferred Outflow of Resources $ 26,544,346 Less: Contributions Made Subsequent to Measurement Date 8,534,158 $ 18,010,188 CSA Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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. 1 st Fiscal Year - Fiscal Year 2019 $ 3,169,490 2nd Fiscal Year - Fiscal Year 2020 10,038,469 3rd Fiscal Year - Fiscal Year 2021 6,814,109 4th Fiscal Year - Fiscal Year 2022 (2,121,486) 5th Fiscal Year - Fiscal Year 2023 109,606 Total $ 18,010,188 Actuarial Assumptions: The employer contribution rates effective July 1, 2017, through June 30, 2019, 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, 2015 actuarial valuation are shown below: Valuation Date December 31, 2015 Valuation Measurement Date June 30, 2017 Experience Study 2014, published September 2015 Actuarial assumptions: Inflation rate 2.50 percent Long term expected rate of return 7.50 percent Discount rate 7.50 percent Projected of salary increase. 3.50 percent Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in Cost of living adjustments (COLA) accordance with Moro decision; blend based on service. Healthy retirees and beneficiaries: RP -2000 Sex -distinct, generational per Scale AA, with collar adjustments and set -backs as described in the valuation. Active members: Mortality rates are a percentage of healthy retiree rates that vary by Mortality group, as described in the valuation. Disabled retirees: Mortality rates are a percentage (70% for males, 95% for females) of the RP -2000 Sex -distinct, generational per Scale BB, disabled mortality table C1c3 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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 economic assumptions and estimates shown above are based on the 2014 experience study which reviewed experience for the four-year period ended December 31, 2014. 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 50th 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 Target Allocation % * Rebalancing Range % Expected Annual Policy Return % Public Equities 37.5 32.5-42.5 7.1 Private Equities 17.5 14.0-21.0 9.5 Total Equity 55.0 50.0-60.0 Fixed Income 20.0 15.0-25.0 3.0 Real Estate 12.5 9.5-15.5 6.7 Alternatives 12.5 0.0-12.5 6.3 Total Fund 100.0 7.1 *Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement Fund, revised as of June 7, 2017. Discount Rate The discount rate used to measure the total pension liability was 7.50 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 RHIA OPEB liability calculated using the discount rate of 7.50 percent, as well as what the County's proportionate share of the net RHIA OPEB liability would be if it were calculated using a discount rate that is 1 -percentage point lower (6.50 percent) or 1 -percentage point higher (8.50 percent) than the current rate: 1% Decrease Discount Rate 1% Increase (6.50%) (7.50%) (8.50%) Proportionate share of net RHIA OPEB liability) $ 142,990,132 $ 83,905,406 $ 34,499,634 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 htt2://www.oregon.govL/pers. CZ! Deschutes County, Oregon Notes to Financial Statements June 30, 2018 OPEB Activity and Balances for the Year Ended June 30, 2018 (RHIA & County Plan): Category OPEB Liability Net OPEB Assets Deferred Outflows Deferred Inflows OPEB Expenses Changes in Total OPEB Liability RHIA County Plan $ - $ 34,376,161 252,752 - 306,721 - 119,307 - 525 2,908,863 Total $ 34,376,161 252,752 306,721 119,307 2,909,388 The following table shows the changes in the County's Total OPEB Liability for its two OPEB plans (RHIA & County Plan). Category Balance at 06/30/2017 (restated) Changes for the year Service cost Interest Changes of benefit terms Differences between expected and actual experience Benefit payments Net changes Balance at 06/30/2018 RHIA $ 2,863,064 20,545 204,586 County Plan $ 32,896,294 1,756,755 1,152,108 Total $ 35,759,358 1,777,300 1,356,694 (241,486) (1,428,996) (1,670,482) (16,355) 1,479,867 1,463,512 $ 2,846,709 $ 34,376,161 $ 37,222,870 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. The reports and other related schedules including plan assumptions, methods and plan provisions may also be found on the PERS website at https://www.oregon.gov/pers/EMP/Pages/GASB.aspx. 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. rest Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Contributions Participating public employers are contractually required to contribute to RHIA at a rate assessed each biennium by OPERS. For fiscal year 2018 the rate is 0.50% of annual covered payroll for Tier 1/Tier 2 employees and 0.43% for OPSRP employees. The OPERS sets the net -retiree healthcare rate based on the estimated OPEB expense of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The OPEB expense represents the annual cost allocated to the current year (normal cost) and the amortization of any unfunded accrued liabilities of the plan (UAL cost). The unfunded accrued liabilities are amortized over a closed period equal to the average of the expected remaining lives of all employees that are provided with OPEB through the OPEB plan (active employees and inactive employees). The County's contributions to RHIA were consistent with the net -retiree healthcare rate as charged by OPERS. Amounts paid for RHIA were included with the payments for the retirement plan described in Note 4.0 above. Actuarial methods and assumptions for the RHIA plan mirror those of the PERS retirement system itself and can be found in footnote 4C in the preceding pages of these financial statements. Healthcare cost trends are not applicable to this plan as the benefits are a fixed dollar amount per month. The County's proportionate share of the RHIA plan for FY 2018 is .60562393%. The proportionate share for each employer participating in the Plan was determined by the actuaries based upon each employer's contribution to the RHIA program during the measurement period. The County's proportionate share declined from .61696113% in the prior measurement period. The following presents the County's proportionate share of the net pension liability (asset) for the RHIA calculated using the discount rate of 7.50 percent, which has not changed since FY 2017, 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 (6.50 percent) or 1 -percentage point higher (8.50 percent) than the current rate: Proportionate Share of Net Pension Liability (Asset) 1% Decrease (6.50%) $ 35,233 Discount Rate (7.50%) $ (252,752) I% Increase (8.50%) $ (497,700) The RHIA plan assets are included in the PERS retirement system cash management efforts. Information related to the PERS Plan assets investment allocations are included in footnote 4C included in these financial statements. The County's contributions made subsequent to the measurement date will be recognized in the County's OPEB expense in the following year. The net amount of the County's share of the RHIA remaining deferred outflows of resources and deferred inflows of resources that will be recognized in the County's pension expense in the subsequent five years in the aggregate are shown in the table below. Employer subsequent fiscal years Deferred Outflow/(Inflow) of Resources (prior topost-measurement date contributions FY 2019 $ 30,097 FY 2020 30,097 FY 2021 29,848 FY 2022 29,265 FY 2023 - Thereafter - Total 119,307 Other Post -Employment Benefits (OPEB) - Deschutes County Retiree Health Plan D. Other Post -Employment Benefits (OPEB) The County participates in two OPEB plans to provide certain healthcare benefits to retirees. The first is a multi-employer cost sharing defined benefit plan administered by the Oregon Public Employees Retirement System known as the RHIA. The second is a single employer defined benefit postemployment healthcare plan administered by the County known as the County Plan. Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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 (COBRA) 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. Employees who retire from the County with more than fifteen (15) years and less than thirty (30) years of fulltime service are eligible to receive a County contribution towards their monthly insurance premiums until age sixty-five (65) or until eligible for Medicare, in accordance with a schedule recommended by the EBAC and approved by the Board of County Commissioners. The schedule of retiree premiums and County contributions is shown below for Calendar year 2018. Rates Active Employee Monthly Standard Plan High Deductible Dental Plan Premiums: $77.00 Plan $1,493.00 Composite Rate $1,534.61 1 $933.19 1 $170.73 *Opt -out stipend is $125 to employee per month. 30+ Years of 1.0 FTE Service: Retiree Monthly Premiums (dental): Standard Plan Dental Plan Retiree Only $746.00 $77.00 Retiree + Spouse $1,493.00 $154.00 Retiree + Children $1,305.00 $135.00 Retiree + Family 1 $2,052.00 1 $212.00 <30 Years of Service: Retiree Monthly Premiums: Standard Plan High Deductible Plan Dental Plan Retiree Only $746.00 $589.00 $77.00 Retiree + Spouse $1,493.00 $1,168.00 $154.00 Retiree + Children $1,305.00 $1,022.00 $135.00 Retiree + Family 1 $2,052.00 1 $1,606.00 1 $212.00 COBRA Monthly Premiums: Standard Plan High Deductible Plan Dental Plan Employee Only $746.00 $589.00 $77.00 Employee + Spouse $1,493.00 $1,168.00 $154.00 Employee + Children $1,305.00 $1,022.00 $135.00 Employee + Family 1 $2,052.00 1 $1,606.00 1 $212.00 CS Premium Cost Sharing Employee cost share is $85 of Medical Plan and $5 of Dental Plan. 30+ Year Retiree cost share is $85 of Medical Plan and $5 of Dental Plan. Years of County Contribution Service: per years of service: 0-14 $0.00 15-19 $172.20 20-24 $345.45 25-29 $517.65 COBRA participant pays 100% of premium. Deschutes County, Oregon Notes to Financial Statements June 30, 2018 As of June 30, 2017, there were 942 active employees that could be eligible for the plan. As of that date, 74 retirees and surviving spouses were insured through the County Plan. The County funds the benefits on a pay-as-you-go basis. As a result, there are no assets being accumulated by the County to pay for future benefits. 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. 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 7.5% for Fiscal Year 2019, reducing to 5% over a 10 year period; a retiree health claims annual trend rate of 8.5% for Fiscal Year 2019, reducing to 5.0% over a 10 year period; and retirement rates used by Oregon PERS adjusted for County trends. The unfunded actuarial liability as of June 30, 2018, is being amortized over a 30 -year open period. Because there are no assets, the investment return of 3% is set to equal the expected long-term return on the County's own investments. A discount rate of 3.58% was used to roll -forward the liabilities from the June 30, 2017 valuation date to the June 30, 2018 measurement date. This discount rate is the June 29, 2017 rate in the 20 -year General Obligation Municipal Bond Index published by the Bond Buyer. The annual salary increase for employees are assumed to be 3.75% in all future years. Rates of withdrawal and mortality are generally the same rates that were used in the December 31, 2015 actuarial valuation of the Oregon Public Employees Retirement System as referenced in the PERS footnote 4C. The Actuarial cost method used in the valuation of this plan is the Entry Age Normal. 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. Total OPEB liability for the County Plan as of the measurement date is presented below showing the sensitivity of that amount to a 1% higher or lower Discount rate and a 1% higher or lower Health Care trend rate: 1% Decrease Current Discount Rate 1% Increase 2.58% (3.58%) 4.58% Total OPEB Liability on June 30, 2018 $37,579,359 $34,376,161 $31,431,480 Current Health Care 1% Decrease Trend Rates 1% Increase Total OPEB Liability on June 30, 2018 $30,370,761 $34,376,161 $39,136,582 R Deschutes County, Oregon Notes to Financial Statements June 30, 2018 E. Landfill Closure and Postclosure Care Costs State and Federal laws and regulations require that the County place a final cover on its landfill sites and perform certain maintenance and monitoring functions at the sites for a minimum of 30 years after closure. In addition to operating expenses related to current activities of the landfill site, an expense provision and related liability are recognized based on the estimated future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of the closure and postclosure care costs for Knott Landfill is based on remaining capacity of the landfill. It is estimated that the total cost for the closure and postclosure of Knott Landfill is $16,906,113 which includes the current cost of equipment, facilities and services required to close, monitor and maintain the landfill. The postclosure costs estimated for the County's Demo and Southwest sites are estimated at $2,094,357 and $1,241,771, respectively. The amount of closure and postclosure costs to recognize is based on engineering estimates. Until June 30, 2017, the amount to recognize was based on the estimate of the capacity of the landfill used each year. Beginning with FY 2018, the method of estimating the liability is based on the estimated capacity remaining, to account for natural compression over time of the solid waste in the cells. Under the remaining capacity method, the June 30, 2017 liability would have been estimated at $8,133,157, a reduction of $3,369,910 from what was reported at June 30, 2017. This change the method of determining the liability has been reported as a special item in FY 2018. Through June 30, 2018, $11,483,762 has been recognized as expense and $2,739,715 has been paid, resulting in a Closure / Post - Closure liability of $8,744,047 at June 30, 2018. Based on current estimated costs, an additional $8,758,479 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. F. Prior Period Adjustments In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The County adopted this statement as of July 1, 2017. The implementation requires the County to calculate and report the cost, deferred outflows of resources, liabilities and deferred inflows of resources associated with OPEB in its financial statements, including note disclosures and required supplementary information. Beginning net position was restated to reflect the Net OBEP obligation as of June 30, 2017. During FY 2018, the County identified two items that were reported incorrectly in the Health Services Fund's statements and schedules as of and for the year ended June 30, 2017. An expense, in the amount of $1,656,940 had neither been accrued nor reported as a liability. Receipts in the amount of $1,086,907 had been reported as revenue which had not yet been earned. These errors, totaling $2,743,847, have been corrected by restating the beginning fund balance and net position on each of the affected statements and schedules for the prior period. G. 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. RM Deschutes County, Oregon Notes to Financial Statements June 30, 2018 Assessor, Clerk & Tax Reserve — transfers in and available resources for the upgrade or replacement of the assessment and taxation system for the County's property tax activities and for Clerk's election equipment. Humane Society of Redmond — general resources to fund loans to Brightside Animal Clinic, formerly known as the Humane Society of Redmond. The loans were paid off in September 2018 and this fund will be inactivated during FY 2019. Project Development — transfers in, proceeds from sale of County lands and inter -fund rents. 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 charges for upgrades, remodels and major maintenance projects of existing County real property. General Capital Reserve — transfers in and available resources designated for construction or remodel of County - owned real property. 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 participating County funds and departments to be used for vehicle replacement and repair. Sheriff's Office — revenues from Sheriff's services and payments from Countywide and Rural Law Enforcement Districts, pursuant to intergovernmental agreements, used for public safety, including the operation of the adult jail. Countywide Law Enforcement District (District #1) — property taxes used to fund Sheriff's Office countywide public safety activities, including the operation of the adult jail. Rural Law Enforcement District (District #2) — property taxes used to fund Sheriff's Office public safety in rural areas. Road — State gas tax apportionment and Federal payments for building and maintaining public roads and highways. Health Services— fees for services, Federal and State grants for community wide health care, mental health services and counseling. PERS Reserve — Charges to County's operating funds and General Fund transfers to maintain a reserve to off -set increases in the cost of retirement benefits as a result of an increase in the PERS rate. 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 and inter -fund transfers for the operation of a fair and expo center including the annual county fair. Nonmajor Governmental Funds Special Revenue Funds Justice Court — fines, fees and General Fund transfers for operating a justice court. Park Acquisition and Development — apportionment from the State of Oregon from recreational vehicle fees. Park Development Fees — fees paid by developers in lieu of land donation for park development. U11 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 County School — local taxes and Federal forest receipts for education. Special Transportation — Federal and State grants for public transit services. Taylor Grazing — Federal funds administered by State for rangeland improvement. Transient Room Tax — lodging tax for promotion of tourism and County services. 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 to reimburse costs of supervision and maintenance of properties acquired through tax foreclosure. Victims' Assistance — grants and General Fund transfers for providing assistance to crime victims. Law Library — State shared revenues for supporting law library services. County Clerk Records — fees for upgrading storage and retrieval systems. Court Facilities — fines and fees to provide security in the court building. Communications System Reserve — accumulated resources which will be used for replacement of the countywide communication system. Community Development — fees and charges for services for planning, building safety, education and public services. CDD - Groundwater Partnership — transfers for maintenance of water quality and open space and fees from developers for the protection of groundwater, including rebates for replacement of septic systems. Newberry Neighborhood — proceeds from land sales and grants for maintenance of water quality and open space. GIS (Geographic Information Systems) Dedicated — recording fees and sales for map data system. Natural Resource Protection — grants for the control of noxious weeds and promotion of healthy forests. Federal Forest Title III — federal monies for grants related to National Forest activities in Deschutes County. Surveyor — fees for survey measurements, plat reviews and document filing. Public Land Corner Preservation — fees for maintaining permanent monuments of survey corner positions. Countywide Transportation SDC Improvement — fees from developers and builders for upgrades and expansion of county road infrastructure. Dog Control — licenses, fees and donations for animal control. Adult Parole and Probation — charges for services and State Department of Corrections grant for operation of County justice program. Deschutes County 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. 71 Deschutes County, Oregon Notes to Financial Statements June 30, 2018 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 4H Service District: Deschutes County Extension and 4H Service District Reserve Fund — transfer from operations for future capital asset requirements. Debt Service Fund Full Faith and Credit Debt Service Fund — long-term operating lease payments and inter -fund transfers for debt service payments on bonds and notes issued for remodel and acquisition of real property, purchase of long-lived personal property and funding of pension liability. Capital Project Fund Resources from inter -fund transfers for Road's Capital Improvement Plan. Nonmajor Proprietary Fund — 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 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 — interf ind charges for services provided by the Human Resources 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. V#A Required Supplementary Information As of and for the Year Ended June 30, 2018 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* See notes to required supplementary information 74 Totals may not add due to rounding 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Proportion of the net pension liability (asset) N/A N/A N/A N/A N/A 0.61384% 0.61384% 0.64415% 0.62210% 0.62244% Proportionate share of the net pension liability (asset) N/A N/A N/A N/A N/A 31,325,022 (13,913,943) 36,983,685 93,391,575 83,905,406 Covered -employee payroll 46,253,589 46,660,573 47,836,381 51,020,573 51,883,646 53,607,383 54,659,097 57,026,794 59,447,651 62,728,445 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 58.43% -25.46% 64.85% 157.10% 133.76% Plan fiduciary net position as a percentage of the total pension liability N/A N/A N/A N/A N/A 91.97% 103.59% 91.88% 80.53% 83.12% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year was determined as of June 30. See notes to required supplementary information 74 Totals may not add due to rounding Deschutes County, Oregon Schedule of Employer Contributions Oregon Public Employees Retirement System Last 10 Fiscal Years* 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Contractually required contributions $3,128,006 $2,068,958 $2,212,989 $4,486,535 $4,578,082 $4,801,928 $ 5,258,200 $5,785,558 $5,971,466 $8,534,158 Contributions in relation to the contractually required contribution 3,128,006 2,068,958 2,212,989 4,486,535 4,578,082 4,801,928 5,258,200 5,785,558 5,971,466 8,534,158 Contribution deficiency (excess) - - - - - - - - - - County's covered -employee payroll 46,660,573 47,836,381 51,020,573 51,883,646 53,607,383 54,659,097 57,026,794 59,447,651 62,728,445 67,106,755 Contributions as a percentage of covered -employee payroll 6.70% 4.33% 4.34% 8.65% 8.54% 8.79% 9.22% 9.73% 9.52% 12.72% The amounts presented for each fiscal year was determined as of June 30. See notes to required supplementary information 75 Totals may not add due to rounding Deschutes County, Oregon Schedule of Changes in the County's Total OPEB Liability Last 10 Fiscal Years* * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available See notes to required supplementary information 76 Totals may not add due to rounding 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Service cost N/A N/A N/A N/A N/A N/A N/A N/A N/A $ 1,756,755 Interest N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,152,108 Changes of assumptions and other inputs N/A N/A N/A N/A N/A N/A N/A N/A N/A - Benefit payments N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,428,996 Net change in OPEB Liability N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,479,867 Total OPEB Liability - Beginning N/A N/A N/A N/A N/A N/A N/A N/A N/A 32,896,294 Total OPEB Liability - Ending N/A N/A N/A N/A N/A N/A N/A N/A $32,896,294 34,376,161 Covered -employee payroll N/A N/A N/A N/A N/A N/A N/A N/A 63,045,462 65,409,667 Total OPEB Liability as a percentage of payroll N/A N/A N/A N/A N/A N/A N/A N/A 52.2% 52.6% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available See notes to required supplementary information 76 Totals may not add due to rounding Deschutes County, Oregon Schedule of the Proportionate Share of the Net Pension OPEB Liability (Asset) Oregon Public Employees Retirement System (OPEB-RHIA Component) Last 10 Fiscal Years See notes to required supplementary information 77 Totals may not add due to rounding 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Proportion of the net OPEB liability (asset) N/A N/A N/A N/A N/A N/A N/A N/A 0.61696% 0.60562% Proportionate share of the net OPEB liability (asset) N/A N/A N/A N/A N/A N/A N/A N/A $ 167,543 $ (252,752) Covered -employee payroll $46,253,589 $46,660,573 $47,836,381 $51,020,573 $51,883,646 $53,607,383 $54,659,097 $57,026,794 $59,447,651 $62,728,445 Proportionate share of the net OPEB liability (asset) as a percentage of its covered -employee payroll N/A N/A N/A N/A N/A N/A N/A N/A 0.28% -0.40% Plan fiduciary net position as a percentage of the total OPEB liability N/A N/A N/A N/A N/A N/A N/A N/A 94.15% 108.88% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. The amounts presented for each fiscal year was determined as of June 30. See notes to required supplementary information 77 Totals may not add due to rounding Deschutes County, Oregon Schedule of County Contributions Oregon Public Employees Retirement System (OPEB-RHIA Component) Last 10 Fiscal Years See notes to required supplementary information 78 Totals may not add due to rounding 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Contractually required contribution $ 263,074 $ 268,903 $ 285,589 $ 288,476 $ 296,306 $ 298,077 $ 308,842 $ 289,875 $ 303,784 $ 306,333 Contributions in relation to the contractually required contribution 263,074 268,903 285,589 288,476 296,306 298,077 308,842 289,875 303,784 306,333 Contribution deficiency (excess) - - - - - - - - - - County's covered -employee payroll 46,660,573 47,836,381 51,020,573 51,883,646 53,607,383 54,659,097 57,026,794 59,447,651 62,728,445 67,106,755 Contributions as a percentage of covered -employee payroll 0.56% 0.56% 0.56% 0.56% 0.55% 0.55% 0.54% 0.49% 0.48% 0.46% The amounts presented for each fiscal year was determined as of June 30. See notes to required supplementary information 78 Totals may not add due to rounding Deschutes County, Oregon General Fund Operations Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Taxes - property Licenses and permits Investment earnings Charges for services Contributions and donations Intergovernmental State Federal Total revenues EXPENDITURES General government Assessor Clerk and Elections Board of Property Tax Appeal District Attorney Medical Examiner Tax Office Property Management Administration Other Health and Welfare Veterans' Services Total Operating contingency Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfer out: District Attorney Property Management Non -Departmental Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Adjustment to generally accepted accounting principles (GAAP) basis: Unrealized gain (loss) on investments Economic Development Court Technology Reserve Assessment,Taxation & Clerk Reserve Humane Society of Redmond Project Development General County Projects General Capital Reserve Community Justice Juvenile Code Abatement Vehicle Maintenance & Replacement Fund balance - US GAAP Basis Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 26,684,500 $ 26,684,500 $ 27,398,178 $ 713,678 32,525 32,525 34,325 1,800 156,000 156,000 234,728 78,728 2,021,370 2,021,370 1,911,776 (109,594) - - 39,942 39,942 2,805,937 2,871,220 3,650,972 779,752 500,000 500,000 500,000 - 32,200,332 32,265,615 33,769,921 1,504,306 4,238,529 4,291,041 4,240,703 50,338 1,820,344 1,820,344 1,529,074 291,270 68,138 68,138 65,270 2,868 6,690,744 6,690,744 6,590,933 99,811 172,184 172,184 158,160 14,024 849,312 849,312 791,044 58,268 274,265 274,265 251,663 22,602 1,328,089 1,328,089 1,259,222 68,867 427,347 15,868,952 9,000,000 24,868,952 7,331,380 127,322 (10,980) (1,832) (17,445,890) (17,331,380) (10,000,000) 10,000,000 See notes to required supplementary information 79 Totals may not add due to rounding 492,630 15,986,747 8,635,088 24,621,835 7,643,780 127,322 (10,980) (1,832) (17,445,890) (17,331,380) (9,687,600) 10,000,000 11? 4nn 492,617 13 15,378,686 608,061 - 8,635,088 15,378,686 9,243,149 18,391,235 71,200 (10,980) (1,832) (17,420,195) (17,361,807) 1,029,428 10,989,271 12,018,699 (75,055) 342,972 149,936 989,177 (208,878) 1,080,507 1,845,871 10,499,747 1,342,839 71,489 1 R InR $ 29,175,511 10,747,455 (56,122) 25,695 (30,427) 10,717,028 989,271 P 11 7nh ?99 Deschutes County, Oregon Deschutes County Sheriffs Office Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Fines, forfeitures and penalties Charges for services Contributions and donations Other Intergovernmental Local State Federal Total revenues EXPENDITURES Public Safety Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year See notes to required supplementary information Totals may not add due to rounding Budgeted Amounts Original Budget Final Budget $ 480,000 620,184 60,300 25,000 34,291,014 2,034,792 $ 480,000 620,184 60,300 25,000 34,291,014 2,034,792 Actual Variance with Final Budget $ 468,276 $ (11,724) 518,231 (101,953) 103,453 43,153 9,700 (15,300) 32,610,679 (1,680,335) 2,437,468 402,676 40,705,403 40,705,403 39,311,408 1,393,995 40,705,403 40,705,403 39,311,408 1,393,995 40,705,403 40,705,403 39,311,408 1,393,995 (2,879,521) (2,879,521) (2,879,521) - 3,151,787 3,151,787 3,151,787 - (272,266) (272,266) (272,266) - 2,879,521 2,879,521 2,879,521 - Deschutes County, Oregon Countywide Law Enforcement District Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Taxes - property Investment earnings Total revenues EXPENDITURES Public Safety Total expenditures Contingency Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 22,445,228 $ 22,445,228 $ 22,827,386 $ 382,158 80,000 80,000 157,047 77,047 22,525,228 22,525,228 22,984,434 459,206 23,459,345 23,459,345 22,101,578 1,357,767 23,459,345 23,459,345 22,101,578 1,357,767 4,138,883 4,138,883 - 4,138,883 (5,073,000) (5,073,000) 882,856 5,955,856 5,073,000 5,073,000 6,952,493 1,879,493 $ - $ - 7,835,348 $ 7,835,348 See notes to required supplementary information 81 Totals may not add due to rounding /In ),Ii'� $ 7,796,118 Deschutes County, Oregon Rural Law Enforcement District Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Taxes - property Investment earnings Total revenues EXPENDITURES Public safety Total expenditures Contingency Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 10,101,642 $ 10,101,642 $ 10,238,433 $ 136,791 61,300 61,300 124,758 63,458 10,162,942 10,162,942 10,363,192 200,250 10,239,739 10,239,739 9,785,172 454,567 10,239,739 10,239,739 9,785,172 454,567 5,963,203 5,963,203 - 5,963,203 (6,040,000) (6,040,000) 578,019 6,618,019 6,040,000 6,040,000 6,540,476 500,476 $ - $ - 7,118,495 /QA 1nZ\ $ 7,118,495 See notes to required supplementary information 82 Totals may not add due to rounding $ 7,084,300 Deschutes County, Oregon Road Department Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Special assessments Investment earnings Rents Charges for services Intergovernmental Local State Federal Total revenues EXPENDITURES County roads Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Adjustment to generally accepted accounting principles (GAAP) basis: Unrealized gain (loss) on investments Inventory Fund balance - US GAAP Basis Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 70,000 $ 70,000 $ 66,830 $ (3,170) 118,000 118,000 175,434 57,434 1,092 1,092 1,094 2 1,923,425 1,923,425 1,922,734 (691) 710,000 710,000 537,224 (172,776) 13,911,213 13,911,213 14,833,348 922,135 3,153,549 3,153,549 3,025,701 (127,848) 19,887,279 19,887,279 20,562,367 675,088 21,383,952 21,383,952 15,690,605 5,693,347 21,383,952 21,383,952 15,690,605 5,693,347 4,253,833 (5,750,506) (5,750,506) 4,871,762 10,622,268 2,000,000 2,000,000 2,000,000 - (6,000,000) (6,000,000) (6,000,000) - (4,000,000) (4,000,000) (4,000,000) - (9,750,506) (9,750,506) 871,762 10,622,268 See notes to required supplementary information 83 Totals may not add due to rounding 12,568,278 $ 12,568,278 (62,560) $ 14,292,019 Deschutes County, Oregon Health Services Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Licenses and permits Investment earnings Rents Charges for services Contributions and donations Intergovernmental Local State Federal Total revenues EXPENDITURES Current - departmental Health and human services 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 Prior period adjustment Fund balance - beginning of year, as restated Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 165,603 $ 165,603 $ 138,610 $ (26,993) 230,200 230,200 229,477 (723) 9,824 9,824 11,925 2,101 3,505,334 3,505,334 2,589,339 (915,995) 46,036 46,036 70,625 24,589 409,048 670,009 824,004 153,995 29,140,702 29,722,527 35,744,271 6,021,744 604,492 743,201 632,833 (110,368) 34,111,239 35,092,734 40,241,084 5,148,350 46,263,396 49,544,891 45,382,367 4,162,524 8,225,463 5,925,463 - 5,925,463 54,488,859 55,470,354 45,382,367 10,087,987 (20,377,620) (20,377,620) (5,141,283) 15,236,337 4,584,193 4,584,193 4,584,193 - (490,320) (490,320) (490,320) - 4,093,873 4,093,873 4,093,873 - (16,283,747) (16,283,747) (1,047,410) 15,236,337 16,572,306 16,572,306 16,242,269 (330,037) - - (2,743,847) (2,743,847) 16,572,306 16,572,306 13,498,423 (3,073,883) $ 288,559 $ 288,559 12,451,013 $ 14,906,300 See notes to required supplementary information 84 Totals may not add due to rounding (72,708) $ 12,378,304 Deschutes County, Oregon PERS Reserve Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Investment earnings Total revenues EXPENDITURES General services 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 165,000 $ 165,000 $ 201,485 $ 36,485 165,000 165,000 201,485 36,485 1,200,000 1,200,000 961,437 238,563 1,200,000 1,200,000 961,437 238,563 (1,035,000) (1,035,000) (759,952) 275,048 2,000,000 2,000,000 2,000,000 - 2,000,000 2,000,000 2,000,000 - 965,000 965,000 1,240,048 275,048 13,262,000 13,262,000 13,270,949 8,949 $ 14,227,000 $ 14,227,000 14,510,997 $ 283,997 See notes to required supplementary information 85 Totals may not add due to rounding (69,953) $ 14,441,045 Deschutes County, Oregon Notes to Required Supplementary Information June 30, 2018 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. 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 — program, debt service, transfers to other funds and operating contingency. For all other funds, the appropriations are established at the principal object level. 061 Other Supplementary Information As of and for the Year Ended June 30, 2018 Deschutes County, Oregon ES Combining and Individual Funds Statements and Schedules — Major Governmental Funds and Sub -Funds As of and for the Year Ended June 30, 2018 Deschutes County, Oregon LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - contracts of sale Total deferred inflows of resources FUND BALANCES Nonspendable Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 1,265,420 $ - $ - $ - 18,592 - - - 4,317,375 - - - 603,562 - - - 603,562 - - - - 172,442 - - 170,530 - - - - 149,936 989,177 11,943,644 - - - 11,943,644 342,972 149,936 989,177 Totals may not add due to rounding 88 Continued Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2018 General Court Assessor, Fund Economic Technology Clerk and Tax Operations Development Reserve Reserve ASSETS Cash and cash equivalents $ 2,728,377 $ 30,014 $ 26,389 $ 174,098 Investments, at fair value; plus accrued interest 12,767,304 140,516 123,547 815,079 Taxes receivable 675,717 - - - Accounts receivable 211,305 - - Notes and contracts receivable - 172,442 - Due from other funds 481,878 - - - Total assets $ 16,864,581 $ 342,972 $ 149,936 $ 989,177 LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - contracts of sale Total deferred inflows of resources FUND BALANCES Nonspendable Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 1,265,420 $ - $ - $ - 18,592 - - - 4,317,375 - - - 603,562 - - - 603,562 - - - - 172,442 - - 170,530 - - - - 149,936 989,177 11,943,644 - - - 11,943,644 342,972 149,936 989,177 Totals may not add due to rounding 88 Continued Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - contracts of sale Total deferred inflow of resources FUND BALANCES Nonspendable Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 273,000 $ 4,003,949 $ 1,927,342 $ 10,499,747 $ - $ - $ 63,633 $ - 481,878 - - - 481,878 - 63,633 - - - 17,838 - 2,923,443 - - 2,923,443 17,838 - 273,000 - - - - - - 10,499,747 1,080,507 1,845,871 - (481,878) - - - (208,878) 1,080,507 1,845,871 10,499,747 $ 273,000 $ 4,003,949 $ 1,927,342 $ 10,499,747 Totals may not add due to rounding 89 Continued Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2018 Humane General General Society Project County Capital of Redmond Development Projects Reserve ASSETS Cash and cash equivalents $ - $ 187,933 $ 335,704 $ 1,847,986 Investments, at fair value; plus accrued interest - 879,852 1,571,672 8,651,761 Taxes receivable - - 19,967 - Accounts receivable - 12,721 - - Notes and contracts receivable 273,000 2,923,443 - - Due from other funds Total assets LIABILITIES Accounts payable Due to other funds Deposits Unearned revenue Total liabilities DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - contracts of sale Total deferred inflow of resources FUND BALANCES Nonspendable Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances $ 273,000 $ 4,003,949 $ 1,927,342 $ 10,499,747 $ - $ - $ 63,633 $ - 481,878 - - - 481,878 - 63,633 - - - 17,838 - 2,923,443 - - 2,923,443 17,838 - 273,000 - - - - - - 10,499,747 1,080,507 1,845,871 - (481,878) - - - (208,878) 1,080,507 1,845,871 10,499,747 $ 273,000 $ 4,003,949 $ 1,927,342 $ 10,499,747 Totals may not add due to rounding 89 Continued Totals may not add due to rounding 90 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2018 Community Vehicle Justice Code Maintenance & Juvenile Abatement Replacement Total ASSETS Cash and cash equivalents $ 219,594 $ 12,582 $ 196,808 $ 5,759,485 Investments, at fair value; plus accrued interest 1,027,843 58,907 921,400 26,957,881 Taxes receivable - - - 695,683 Accounts receivable 125,793 - - 349,819 Notes and contracts receivable - - - 3,368,884 Due from other funds - - - 481,878 Total assets $ 1,373,229 $ 71,489 $ 1,118,208 $ 37,613,631 LIABILITIES Accounts payable $ 30,390 $ - $ - $ 1,359,444 Due to other funds - - 481,878 Deposits - - 18,592 Unearned revenue - -3,033,363 Total liabilities 30,390 - 4,893,277 DEFERRED INFLOW OF RESOURCES Unavailable revenue - property taxes - - - 621,400 Unavailable revenue - contracts of sale - - - 2,923,443 Total deferred inflow of resources - - - 3,544,843 FUND BALANCES Nonspendable - - - 445,442 Committed - - - 10,670,276 Assigned 1,342,839 71,489 1,118,208 6,598,027 Unassigned - - - 11,461,766 Total fund balances 1,342,839 71,489 1,118,208 29,175,511 Total liabilities, deferred inflows of resources and fund balances $ 1,373,229 $ 71,489 $ 1,118,208 $ 37,613,631 Totals may not add due to rounding 90 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 General Court Fund Economic Technology Operations Development Reserve _ REVENUES Taxes - property $ 27,398,178 $ - $ - $ Licenses and permits 34,325 - - Fines, forfeitures and penalties - - - Investment earnings 184,045 7,344 1,503 Rents - - - Intergovernmental 4,150,972 - - Charges for services 1,911,776 - - Contributions and donations 39,942 - - Payments on contracts of sale - - - Other - 9,600 - _ Total revenues EXPENDITURES Current: General government Public safety Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in Transfers out Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year 14,718,394 102,000 1,417 492,617 167,675 - - 15,378,686 102,000 1,417 18,340,553 (85,056) 86 Assessment, Clerk & Tax 9,835 9,835 9,835 71,200 - - (8,533,889) - - - - - 32,000 120,000 (8,899,118) - - - (17,361,807) - 32,000 120,000 978,746 (85,056) 32,086 129,835 $ 11,943,644 $ 342,972 $ 149,936 $ 989,177 Totals may not add due to rounding 91 Continued Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2017 REVENUES Taxes - property Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in Transfers out Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Humane General Society Project County of Redmond Development Projects $ - $ - $ 855,866 - 63 - 2,491 149,285 8,144 - 524,859 - - - 1,292,474 - 579,137 - - 15,000 - 2,491 1,268,344 2,156,484 General County 87,526 87,526 - 60,292 1,084,648 - - 154,084 - - 60,292 1,238,732 - 2,491 1,208,052 917,752 87,526 300,000 - - (1,441,018) - - - - - 3,136,663 - (1,141,018) 2,491 67,034 (211,369) 1,013,473 - 3,136,663 917,752 3,224,189 Totals may not add due to rounding 92 Continued Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Totals may not add due to rounding 93 Community Vehicle Justice Code Maintenance & Juvenile Abatement Replacement Total REVENUES Taxes - property $ - $ - $ - $ 28,254,044 Licenses and permits - - - 34,325 Fines, forfeitures and penalties 6,112 - - 6,174 Investment earnings 17,480 834 12,496 480,986 Rents 86,315 - - 611,174 Intergovernmental 579,047 - - 4,730,019 Charges for services 142,097 - - 3,346,348 Contributions and donations 2,812 - - 42,753 Payments on contracts of sale - - - 579,137 Other - - 39,683 64,283 Total revenues 833,864 834 52,179 38,149,244 EXPENDITURES Current: General government - 3,622 165,873 16,136,246 Public safety 6,375,507 - - 6,375,507 Health and welfare - - - 492,617 Capital outlay - - 316,887 638,646 Total expenditures 6,375,507 3,622 482,760 23,643,016 Excess (deficiency) of revenues over expenditures (5,541,643) (2,788) (430,581) 14,506,228 OTHER FINANCING SOURCES (USES) Inter -fund: Transfers in - - 446,258 817,458 Transfers out - - - (9,974,907) Intra -fund: Transfers in 5,597,643 - 81,812 8,968,118 Transfers out (69,000) - - (8,968,118) Total other financing sources (uses) 5,528,643 - 528,070 (9,157,449) Net change in fund balances (13,000) (2,788) 97,489 5,348,779 Fund balances - Beginning of year 1,355,839 74,277 1,020,719 23,826,733 Fund balances - End of year $ 1,342,839 $ 71,489 $ 1,118,208 $ 29,175,511 Totals may not add due to rounding 93 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, 2018 REVENUES Local Investment earnings Loan repayments Total revenues EXPENDITURES Current - departmental: Economic development Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 3,000 $ 3,000 $ 7,755 $ 4,755 31,000 31,000 9,600 (21,400) 34,000 34,000 17,355 (16,645) (226,443) (226,443) (84,645) 141,798 $ - $ - 343,798 (826) $ 342,972 Totals may not add due to rounding 94 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, 2018 Totals may not add due to rounding 95 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 2,000 $ 2,000 $ 2,016 $ 16 Total revenues 2,000 2,000 2,016 16 EXPENDITURES Current - departmental Court technology 155,500 155,500 1,417 154,083 Total expenditures 155,500 155,500 1,417 154,083 Excess (deficiency) of revenues over expenditures (153,500) (153,500) 598 154,098 OTHER FINANCING SOURCES (USES) Transfers in 32,000 32,000 32,000 - Net change in fund balance (121,500) (121,500) 32,598 154,098 Fund balance - Beginning of year 121,500 121,500 118,064 (3,436) Fund balance - End of year $ - $ - 150,662 $ 150,662 Unrealized gain (loss) on investments (726) Total fund balance, GAAP basis - End of Year $ 149,936 Totals may not add due to rounding 95 Deschutes County, Oregon Assessor, Clerk and Tax Reserve (Sub -Fund of General Fund) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings Total revenues EXPENDITURES Current - departmental: Assessment & Taxation 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not add due to rounding $ 13,500 $ 13,500 $ 13,071 $ (429) 13,500 13,500 13,071 (429) 13,500 13,500 13,071 (429) 120,000 120,000 120,000 - 120,000 120,000 120,000 - 133,500 133,500 133,071 (429) 860,630 860,630 860,898 268 $ 994,130 $ 994,130 993,969 $ (161) (4,792) $ 989,177 061 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, 2018 Totals may not add due to rounding 97 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ - S - $ 2,491 $ 2,491 Loan repayment 56,122 56,122 - (56,122) Total revenues 56,122 56,122 2,491 (53,631) OTHER FINANCING SOURCES (USES) Transfer Out 56,122 56,122 - 56,122 Net change in fund balance - - 2,491 2,491 Fund balance - Beginning of year - - (211,369) (211,369) Fund balance - End of year $ - $ - (208,878) $ (208,878) Unrealized gain (loss) on investments - Total fund balance, GAAP basis - End of Year $ (208,878) Totals may not add due to rounding 97 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, 2018 OTHER FINANCING SOURCES (USES) Transfers in Budgeted Amounts 300,000 Variance - Original (1,441,144) (1,441,144) with Final 126 Budget Final Budget Actual Budget REVENUES Net change in fund balance (900,000) (900,000) 70,369 Local Fund balance - Beginning of year 900,000 900,000 1,015,310 Fines, forfeitures and penalties $ - $ - $ 63 $ 63 Investment earnings 55,653 55,653 152,621 96,968 Rentals 474,380 474,380 524,859 50,479 Payments on contracts of sale 281,408 281,408 579,137 297,729 Other - - 15,000 15,000 Total revenues 811,441 811,441 1,271,679 460,238 EXPENDITURES General services 570,297 570,297 60,292 510,005 Total 570,297 570,297 60,292 510,005 Total expenditures 570,297 570,297 60,292 510,005 Excess (deficiency) of revenues over expenditures 241,144 241,144 1,211,387 970,243 OTHER FINANCING SOURCES (USES) Transfers in 300,000 300,000 300,000 - Transfer out (1,441,144) (1,441,144) (1,441,018) 126 Net other financing sources (uses) (1,141,144) (1,141,144) (1,141,018) 126 Net change in fund balance (900,000) (900,000) 70,369 970,369 Fund balance - Beginning of year 900,000 900,000 1,015,310 115,310 Fund balance - End of year $ - $ - 1,085,679 $ 1,085,679 Unrealized gain (loss) on investments (5,172) Total fund balance, GAAP basis - End of Year $ 1,080,507 Totals may not add due to rounding 98 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, 2018 REVENUES Local Taxes - property Investment earnings Charges for services Total revenues EXPENDITURES Current - departmental: General Services Operating contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 843,324 $ 843,324 $ 855,866 $ 12,542 13,750 13,750 15,553 1,803 140,000 140,000 1,292,474 1,152,474 997,074 997,074 2,163,893 1,166,819 1,446,521 1,446,521 1,238,732 207,789 636,424 636,424 - 636,424 2,082,945 2,082,945 1,238,732 844,213 (1,085,871) (1,085,871) 925,161 2,011,032 1,085,871 1,085,871 929,949 (155,922) $ - $ - 1,855,110 $ 1,855,110 Totals may not add due to rounding 99 (9,239) $ 1,845,871 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, 2018 Budgeted Amounts Variance Totals may not add due to rounding 100 Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 109,200 $ 109,200 $ 125,216 $ 16,016 Total revenues 109,200 109,200 125,216 16,016 EXPENDITURES Current - departmental: Development 1,000,000 1,000,000 - 1,000,000 Total expenditures 1,000,000 1,000,000 - 1,000,000 Excess (deficiency) of revenues over expenditures (890,800) (890,800) 125,216 1,016,016 OTHER FINANCING SOURCES (USES) Transfers in 3,136,663 3,136,663 3,136,663 - Total other financing sources (uses) 3,136,663 3,136,663 3,136,663 - Net change in fund balance 2,245,863 2,245,863 3,261,879 1,016,016 Fund balance - Beginning of year 7,280,000 7,280,000 7,288,728 8,728 Fund balance - End of year $ 9,525,863 $ 9,525,863 10,550,608 $ 1,024,745 Unrealized gain (loss) on investments (50,861) Total fund balance, GAAP basis - End of Year $ 10,499,747 Totals may not add due to rounding 100 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, 2018 Totals may not add due to rounding 101 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Fines, forfeitures and penalties $ 6,050 $ 6,050 $ 6,112 $ 62 Investment earnings 15,000 15,000 21,264 6,264 Rents 85,000 85,000 86,315 1,315 Charges for services 64,000 64,000 142,097 78,097 Contributions and donations 800 800 2,812 2,012 Intergovernmental Local 20,000 20,000 20,000 - State 491,686 491,686 559,047 67,361 Total revenues 682,536 682,536 837,648 155,112 EXPENDITURES Current - departmental: Public safety 6,512,859 6,512,859 6,375,507 137,352 Total 6,512,859 6,512,859 6,375,507 137,352 Operating contingency 898,320 898,320 - 898,320 Total expenditures 7,411,179 7,411,179 6,375,507 1,035,672 Excess (deficiency) of revenues over expenditures (6,728,643) (6,728,643) (5,537,860) 1,190,783 OTHER FINANCING SOURCES (USES) Transfers in 5,597,643 5,597,643 5,597,643 - Transfers out (69,000) (69,000) (69,000) - Total other financing sources (uses) 5,528,643 5,528,643 5,528,643 - Net change in fund balance (1,200,000) (1,200,000) (9,217) 1,190,783 Fund balance - Beginning of year 1,200,000 1,200,000 1,358,098 158,098 Fund balance - End of year $ - $ - 1,348,881 $ 1,348,881 Unrealized gain (loss) on investments (6,042) Totals may not add due to rounding 101 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, 2018 REVENUES Local Investment earnings Total revenues EXPENDITURES Current - departmental: Code abatement Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Actual $ 1,000 $ 1,000 $ 1,046 1,000 1,000 1,046 Variance with Final Budget $ 46 46 59,794 59,794 3,622 56,173 59,794 59,794 3,622 56,173 (58,794) (58,794) (2,576) 56,218 58,794 58,794 74,411 15,617 $ - $ - 71,835 $ 71,835 Totals may not add due to rounding 102 (346) m �1 non 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, 2018 Totals may not add due to rounding 103 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 10,000 $ 10,000 $ 16,065 $ 6,065 Sale of equipment 15,000 15,000 39,683 24,683 Total revenues 25,000 25,000 55,748 30,748 EXPENDITURES Fleet 875,000 875,000 482,760 392,240 Total expenditures 875,000 875,000 482,760 392,240 Excess (deficiency) of revenues over expenditures (850,000) (850,000) (427,012) 422,988 OTHER FINANCING SOURCES (USES) Transfers in 528,070 528,070 528,070 - Total other financing sources (uses) 528,070 528,070 528,070 - Net change in fund balance (321,930) (321,930) 101,058 422,988 Fund balance - Beginning of year 996,280 996,280 1,022,567 26,287 Fund balance - End of year $ 674,350 $ 674,350 1,123,625 $ 449,275 Unrealized gain (loss) on investments (5,417) Total fund balance, GAAP basis - End of Year $ 1,118,208 Totals may not add due to rounding 103 ES Combining and Individual Funds Statements and Schedules — Nonmajor Governmental Funds and Sub -Funds As of and for the Year Ended June 30, 2018 Deschutes County, Oregon ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Total deferred inflows of resources FUND BALANCES Restricted Committed Total fund balances Total liabilities, deferred inflows of resources and fund balances Deschutes County, Oregon Nonmajor Governmental Funds Combining Balance Sheet June 30, 2018 $ 29,719,147 $ 661,151 $ 9,543,469 $ 39,923,766 Totals may not add due to rounding 104 Total Special Nonmajor Revenue Debt Capital Governmental Funds Service Fund Project Fund Funds $ 4,817,562 $ 109,028 $ 1,679,678 $ 6,606,269 22,548,643 510,440 7,863,790 30,922,874 960,006 - - 960,006 588,619 41,682 - 630,302 804,316 - - 804,316 $ 29,719,147 $ 661,151 $ 9,543,469 $ 39,923,767 $ 961,732 $ - $ 871 $ 962,603 73,427 - - 73,427 1,035,159 - 871 1,036,030 177,532 - - 177,532 177,532 - - 177,532 28,232,036 - 9,542,598 37,774,634 274,420 661,151 - 935,571 $ 29,719,147 $ 661,151 $ 9,543,469 $ 39,923,766 Totals may not add due to rounding 104 Deschutes County, Oregon Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2018 Totals may not add due to rounding 105 Total Special Nonmajor Revenue Debt Capital Governmental Funds Service Funds Project Fund Funds REVENUES Local Taxes - property $ 8,584,075 S - $ - $ 8,584,075 Taxes - other 7,011,471 - - 7,011,471 Licenses and permits 1,485,969 - - 1,485,969 Fines, forfeitures and penalties 992,226 - - 992,226 Investment earnings 376,173 13,664 88,484 478,321 Rents 16,841 1,249,283 - 1,266,123 Charges for services 9,490,859 1,247,899 - 10,738,758 Contributions and donations 5,556 - - 5,556 Intergovernmental Local 171,537 397,640 - 569,176 State 8,712,359 - - 8,712,359 Federal 1,046,926 - - 1,046,926 Total revenues 37,893,990 2,908,485 88,484 40,890,959 EXPENDITURES Current: General government 11,963,492 - - 11,963,492 Public safety 16,614,660 - - 16,614,660 County roads 1,346,005 - - 1,346,005 Health and welfare 879,198 - - 879,198 Debt service: Principal - 3,013,331 - 3,013,331 Interest - 2,079,976 - 2,079,976 Trustee fees - 2,375 - 2,375 Capital outlay 1,847,852 - 2,933,626 4,781,478 Total expenditures 32,651,207 5,095,682 2,933,626 40,680,515 Excess (deficiency) of revenues over expenditures 5,242,783 (2,187,197) (2,845,141) 210,445 OTHER FINANCING SOURCES (USES) Transfers in 917,586 2,290,242 4,578,054 7,785,881 Transfers out (4,502,552) - - (4,502,552) Total other financing sources (uses) (3,584,966) 2,290,242 4,578,054 3,283,329 Net change in fund balances 1,657,817 103,044 1,732,913 3,493,774 Fund balances - Beginning of year 26,848,640 558,106 7,809,685 35,216,431 Fund balances - End of year $ 28,506,456 $ 661,151 $ 9,542,598 $ 38,710,205 Totals may not add due to rounding 105 Totals may not add due to rounding 106 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2018 Park Park Justice Acquisition & Development Special Court Development Fees Transportation ASSETS Cash and cash equivalents $ 28,483 $ 53,390 $ 19,256 $ 2,402 Investments, at fair value; plus accrued interest 129,630 250,007 90,169 11,248 Taxes receivable - - - - Accounts receivable - 39,623 - 58,721 Notes and contracts receivable - - - - Total assets $ 158,113 $ 343,020 $ 109,425 $ 72,371 LIABILITIES Liabilities: Accounts payable $ 884 $ 913 $ - $ 63,275 Unearned revenues - - - - Total liabilities 884 913 - 63,275 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted - 342,106 109,425 9,096 Committed 157,229 - - - Total fund balance 157,229 342,106 109,425 9,096 Total liabilities, deferred inflow of resources and fund balance $ 158,113 $ 343,020 $ 109,425 $ 72,371 Totals may not add due to rounding 106 Continued ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES 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, 2018 Taylor Transient Video Transient Grazing Room Tax Lottery Room Tax -1% $ 8,400 $ 265,742 $ 48,445 $ 63,440 39,326 1,244,130 226,805 297,010 - 666,637 - 95,234 - - 2,500 - $ 47,726 $ 2,176,509 $ 277,750 $ 455,685 $ - $ 312,368 $ 67,750 $ 563 - 312,368 67,750 563 47,726 1,864,141 210,000 455,122 47,726 1,864,141 210,000 455,122 $ 47,726 $ 2,176,509 S 277,750 $ 455,685 Totals may not add due to rounding 107 Continued ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Restricted Committed Total fund balance Total liabilities, deferred inflow of resources and fund balance Totals may not add due to rounding Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2018 County Foreclosed Victims' Law Clerk Land Sales Assistance Library Records $ 22,357 $ 14,936 $ 61,626 $ 57,904 104,691 69,941 288,573 271,141 $ 127,048 $ 84,878 $ 350,199 $ 329,045 $ $ 3,772 $ $ 1,119 3,772 1,119 127,048 81,106 350,199 327,926 $ 127,048 $ 84,878 $ 350,199 $ 329,045 108 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2018 Totals may not add due to rounding 109 Continued Des Co CDD Communication Community Groundwater Newberry System Res Development Partnership Neighborhood ASSETS Cash and cash equivalents $ 10,421 $ 1,201,688 $ 4,778 $ 32,632 Investments, at fair value; plus accrued interest 48,789 5,624,565 22,368 152,776 Taxes receivable - - - - Accounts receivable - 11,370 - - Notes and contracts receivable - - - 804,316 Total assets $ 59,211 $ 6,837,623 $ 27,146 $ 989,725 LIABILITIES Liabilities: Accounts payable $ - $ 103,720 $ - $ - Unearned revenues - 73,427 - Total liabilities - 177,147 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted - 6,660,476 27,146 989,725 Committed 59,211 - - - Total fund balance 59,211 6,660,476 27,146 989,725 Total liabilities, deferred inflow of resources and fund balance $ 59,211 $ 6,837,623 $ 27,146 $ 989,725 Totals may not add due to rounding 109 Continued Totals may not add due to rounding 110 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2018 Natural Federal GIS Resource Forest Title Dedicated Protection III Surveyor ASSETS Cash and cash equivalents $ 48,354 $ 102,886 $ 46,647 $ 41,401 Investments, at fair value; plus accrued interest 226,378 481,683 218,386 193,828 Taxes receivable - - - - Accounts receivable - 96,815 - - Notes and contracts receivable - - - - Total assets $ 274,732 $ 681,384 $ 265,033 $ 235,229 LIABILITIES Liabilities: Accounts payable $ 816 $ 59,752 $ 3,658 $ - Unearned revenues - - - Total liabilities 816 59,752 3,658 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 273,916 621,632 261,375 235,229 Committed - - - - Total fund balance 273,916 621,632 261,375 235,229 Total liabilities, deferred inflow of resources and fund balance $ 274,732 $ 681,384 $ 265,033 $ 235,229 Totals may not add due to rounding 110 Continued ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Liabilities: Accounts payable Unearned revenues Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES 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, 2018 Public Land Countywide Corner Transportation Adult Parole Preservation SDC Imp Dog Control & Probation $ 132,748 $ 497,616 $ 19,016 $ 419,480 621,491 2,329,700 89,030 1,963,186 - - 2,960 - $ 754,240 $ 2,827,315 $ 111,006 $ 2,382,666 $ - $ - $ 53,025 $ 60,486 754,240 2,827,315 - 2,322,180 - - 57,981 - 754,240 2,827,315 57,981 2,322,180 $ 754,240 $ 2,827,315 $ 111,006 $ 2,382,666 Totals may not add due to rounding 111 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2018 Deschutes Deschutes County Total Nonmajor Totals may not add due to rounding 112 County 9-1-1 Extension Special Co Sery Dist & 4-H Revenue Funds ASSETS Cash and cash equivalents $ 1,469,515 $ 143,958 $ 4,817,562 Investments, at fair value; plus accrued interest 6,879,863 673,970 22,548,643 Taxes receivable 186,517 11,618 960,006 Accounts receivable 376,631 - 588,619 Notes and contracts receivable - - 804,316 Total assets $ 8,912,526 $ 829,546 $ 29,719,147 LIABILITIES Liabilities: Accounts payable $ 105,838 $ 123,792 $ 961,732 Unearned revenues - - 73,427 Total liabilities 105,838 123,792 1,035,159 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes 167,098 10,434 177,532 Total deferred inflows of resources 167,098 10,434 177,532 FUND BALANCES Restricted 8,639,589 695,320 28,232,036 Committed - - 274,420 Total fund balance 8,639,589 695,320 28,506,456 Total liabilities, deferred inflow of resources and fund balance $ 8,912,526 $ 829,546 $ 29,719,147 Totals may not add due to rounding 112 Deschutes County, Oregon Deschutes County 9-1-1 County Service District Operating Fund and Sub -Fund Combining Balance Sheet June 30, 2018 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 113 $ 1,008,313 $ 461,202 $ 1,469,515 4,720,643 2,159,220 6,879,863 186,517 - 186,517 376,631 - 376,631 $ 6,292,104 $ 2,620,422 $ 8,912,526 $ 105,838 $ - $ 105,838 105,838 - 105,838 167,098 - 167,098 167,098 - 167,098 6,019,167 2,620,422 8,639,589 6,019,167 2,620,422 8,639,589 $ 6,292,104 $ 2,620,422 $ 8,912,526 Deschutes County, Oregon Deschutes County 4-H County Service District - Operating Fund and Sub -Funds Combining Balance Sheet June 30, 2018 Operating Reserve Fund Fund Total ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Total assets LIABILITIES Accounts payable Unearned revenue Total liabilities DEFERRED 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 $ 51,971 $ 91,987 $ 143,958 243,314 430,656 673,970 11,618 - 11,618 $ 306,904 $ 522,642 $ 829,546 $ 115,246 $ 8,546 $ 123,792 115,246 8,546 123,792 10,434 10,434 10,434 10,434 181,224 514,096 695,320 181,224 514,096 695,320 $ 306,904 $ 522,642 $ 829,546 Totals may not add due to rounding 114 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Park Park Justice Acquisition & Development County Court Development Fees School REVENUES Local Taxes - property - Taxes - other - - - - Licenses and permits - - 2,450 - Fines, forfeitures and penalties 574,364 - - - Investment earnings 963 2,553 1,230 250 Rents - - - - Charges for services - - - - Contributions and donations - - - - Intergovernmental Local - - - - State - 326,763 - 280,511 Federal Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Capital outlay 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 balances Fund balance - Beginning of year Fund balance - End of year 575,327 329,316 3,680 280,761 600,334 29,871 1,467 280,761 29,871 1,467 280,761 600,334 (25,007) 299,444 2,213 - 70,000 - - - - (190,000) - - 70,000 (190,000) - - 44,993 109,444 2,213 - 112,235 232,662 107,212 - $ 157,228 $ 342,106 $ 109,425 $ - Totals may not add due to rounding 115 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Totals may not add due to rounding 116 Continued Special Taylor Transient Transportation Grazing Room Tax Video Lottery REVENUES Local Taxes - property - Taxes - other - - 6,135,033 - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 2,316 456 16,743 3,603 Rents - - - - Charges for services - - - - Contributions and donations - - - - Intergovernmental Local - - - - State 462,472 5,660 - 756,811 Federal 32,763 - - - Total revenues 497,551 6,116 6,151,776 760,415 EXPENDITURES Current: General government - - 2,178,122 707,948 Public safety - - - - County roads - - - - Health and welfare 495,238 - - - Capital outlay - - - - Total expenditures 495,238 - 2,178,122 707,948 Excess (deficiency) of revenues over expenditures 2,313 6,116 3,973,654 52,467 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (3,177,531) - Total other financing sources (uses) - - (3,177,531) - Net change in fund balances 2,313 6,116 796,123 52,467 Fund balance - Beginning of year 6,784 41,610 1,068,017 157,533 Fund balance - End of year $ 9,096 $ 47,726 $ 1,864,141 $ 210,000 Totals may not add due to rounding 116 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Totals may not add due to rounding 117 Continued Transient Foreclosed Victims' County Clerk Room Tax -1% Land Sales Assistance Law Library Records REVENUES Local Taxes - property $ - $ $ $ $ Taxes - other 876,438 Licenses and permits - Fines, forfeitures and penalties - Investment earnings 7,392 (576) 938 4,339 3,289 Rents - - - - - Charges for services 216,582 36,702 112,886 Contributions and donations - 40 - Intergovernmental Local - - State 76,485 139,576 Federal - - 211,429 - - Total revenues 883,830 216,006 325,594 143,915 116,175 EXPENDITURES Current: General government 737,462 100,803 - 154,727 110,162 Public safety - - 642,409 - - County roads - - - - Health and welfare - - - - - Capital outlay - - - - - Total expenditures 737,462 100,803 642,409 154,727 110,162 Excess (deficiency) of revenues over expenditures 146,368 115,203 (316,816) (10,812) 6,013 OTHER FINANCING SOURCES (USES) Transfers in - - 295,648 - - Transfers out (245,978) - - (71,200) - Total other financing sources (uses) (245,978) - 295,648 (71,200) - Net change in fund balances (99,610) 115,203 (21,168) (82,012) 6,013 Fund balance - Beginning of year 554,732 11,845 102,273 432,210 321,912 Fund balance - End of year $ 455,122 $ 127,048 $ 81,106 $ 350,199 $ 327,926 Totals may not add due to rounding 117 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Des Co CDD Court Communication Community Groundwater Facilities System Res Development Partnership REVENUES Local Taxes - property- Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties 62,717 - 8,356 - Investment earnings 239 176 67,838 464 Rents - - 16,841 - Charges for services - - 7,679,142 - Contributions and donations - - - - Intergovernmental Local - 50,000 21,659 - State - - 10,282 - Federal Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Capital outlay 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 balances Fund balance - Beginning of year Fund balance - End of year 62,957 50,176 7,804,118 464 - - 6,337,907 11,250 84,960 - - - (22,004) 50,176 1,466,212 (10,786) - (103,278) - - - (103,278) - (22,004) 50,176 1,362,934 (10,786) 22,004 9,035 5,297,543 37,932 $ - $ 59,211 $ 6,660,476 $ 27,146 Totals may not add due to rounding 118 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Totals may not add due to rounding 119 Continued Natural Federal Newberry GIS Resource Forest Title Neighborhood Dedicated Protection III REVENUES Local Taxes - property - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - - - - Investment earnings 40,107 2,169 7,927 3,015 Rents - - - - Charges for services - 299,514 5,506 - Contributions and donations - - - - Intergovernmental Local - - - - State - 11,509 17,650 - Federal - - 705,798 96,936 Total revenues 40,107 313,192 736,880 99,950 EXPENDITURES Current: General government - 222,613 - - Public safety - - - - County roads - - 719,262 108,742 Health and welfare - - - - Capital outlay - - - - Total expenditures - 222,613 719,262 108,742 Excess (deficiency) of revenues over expenditures 40,107 90,578 17,618 (8,791) OTHER FINANCING SOURCES (USES) Transfers in - - 27,031 - Transfers out (55,111) - (37,400) - Total other financing sources (uses) (55,111) - (10,369) - Net change in fund balances (15,004) 90,578 7,249 (8,791) Fund balance - Beginning of year 1,004,729 183,337 614,383 270,166 Fund balance - End of year $ 989,725 $ 273,916 $ 621,632 $ 261,375 Totals may not add due to rounding 119 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Public Land Countywide Corner Transportation Surveyor Preservation SDC Imp Dog Control REVENUES Local Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Intergovernmental Local State Federal Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Capital outlay 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 balances Fund balance - Beginning of year Fund balance - End of year 157,534 - 1,071,643 254,342 - - - 5,070 3,709 12,238 33,727 1,556 54,162 438,112 - 406 - - - 5,516 215,404 450,349 1,105,370 266,890 145,040 372,960 - - - - - 383,960 145,040 372,960 - 383,960 70,364 77,389 1,105,370 (117,070) - - - 73,718 - - (578,054) - - - (578,054) 73,718 70,364 77,389 527,315 (43,352) $ 235,229 $ 754,240 $ 2,827,315 $ 57,981 Totals may not add due to rounding 120 Continued Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 Deschutes Deschutes County Total Nonmajor Adult Parole County 9-1-1 Extension Special REVENUES Local Taxes - property $ - $ 8,082,427 $ 501,648 $ 8,584,075 Taxes - other - - - 7,011,471 Licenses and permits - - - 1,485,969 Fines, forfeitures and penalties 341,719 - - 992,226 Investment earnings 28,588 121,447 9,479 376,173 Rents - - - 16,841 Charges for services 114,152 483,347 50,348 9,490,859 Contributions and donations - - - 5,556 Intergovernmental Local - 99,878 - 171,537 State 5,549,987 1,074,653 - 8,712,359 Federal - - - 1,046,926 Total revenues 6,034,445 9,861,751 561,475 37,893,990 EXPENDITURES Current: General government - - 490,065 11,963,492 Public safety 5,807,233 10,080,058 - 16,614,660 County roads - - - 1,346,005 Health and welfare - - - 879,198 Capital outlay - 1,797,372 50,480 1,847,852 Total expenditures 5,807,233 11,877,430 540,545 32,651,207 Excess (deficiency) of revenues over expenditures 227,213 (2,015,679) 20,930 5,242,783 OTHER FINANCING SOURCES (USES) Transfers in 451,189 - - 917,586 Transfers out (44,000) - - (4,502,552) Total other financing sources (uses) 407,189 - - (3,584,966) Net change in fund balances 634,402 (2,015,679) 20,930 1,657,817 Fund balance - Beginning of year 1,687,778 10,655,268 674,390 26,848,640 Fund balance - End of year $ 2,322,180 $ 8,639,589 $ 695,320 $ 28,506,456 Totals may not add due to rounding 121 Deschutes County, Oregon Deschutes County 9-1-1 County Service District Operating Fund and Sub -Fund Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 REVENUES Local Taxes - property Investment earnings Charges for services Other Intergovernmental Local State Total revenues EXPENDITURES Current: Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Intra -fund: Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Totals may not add due to rounding 122 Deschutes County 9-1-1 Des Co 9-1-1 Operating Equipment Fund Reserve Total $ 8,082,427 $ - $ 8,082,427 82,804 38,642 121,447 469,288 - 469,288 14,059 - 14,059 99,878 - 99,878 1,074,653 - 1,074,653 9,823,108 38,642 9,861,751 10,080,058 - 10,080,058 1,797,372 - 1,797,372 11,877,430 - 11,877,430 (2,054,322) 38,642 (2,015,679) 806,137 493,863 1,300,000 - (1,300,000) (1,300,000) 806,137 (806,137) - (1,248,185) (767,495) (2,015,679) 7,267,352 3,387,917 10,655,268 $ 6,019,167 $ 2,620,422 $ 8,639,589 Deschutes County, Oregon Deschutes County Extension 4-H County Service District Operating Fund and Sub Fund Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2018 REVENUES Local Taxes - property Investment earnings Charges for services Total revenues EXPENDITURES Current: General services Capital outlay Total expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Operating Reserve Fund Fund Total $ 501,648 $ - $ 501,648 3,649 5,830 9,479 50,348 - 50,348 555,645 5,830 561,475 490,065 - 490,065 - 50,480 50,480 490,065 50,480 540,545 - 26,000 26,000 (26,000) - (26,000) (26,000) 26,000 - 39,580 (18,650) 20,930 141,644 532,746 674,390 $ 181,224 $ 514,096 $ 695,320 Totals may not add due to rounding 123 Deschutes County, Oregon Justice Court Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Fines, forfeitures and penalties Investment earnings Total revenues EXPENDITURES Current - departmental: Justice Court Total expenditures 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 530,000 $ 530,000 $ 574,364 $ 44,364 1,500 1,500 1,518 18 531,500 531,500 575,882 44,382 628,863 628,863 600,334 28,529 628,863 628,863 600,334 28,529 57,637 57,637 - 57,637 686,500 686,500 600,334 86,166 (155,000) (155,000) (24,452) 130,548 70,000 70,000 70,000 - (85,000) (85,000) 45,548 130,548 85,000 85,000 112,442 27,442 $ - $ - 157,990 $ 157,990 Totals may not add due to rounding 124 (762) $ 157,228 Deschutes County, Oregon Park Acquisition and Development Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings Intergovernmental State Total revenues EXPENDITURES Current - departmental: Development 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year $ 2,000 $ 2,000 $ 3,667 $ 1,667 327,000 327,000 29,871 297,129 327,000 327,000 29,871 297,129 (25,000) (25,000) 300,559 (190,000) (190,000) (190,000) (215,000) (215,000) 110,559 Totals may not add due to rounding 125 325,559 325,559 343,576 $ 343,576 (1,470) $ 342,106 Deschutes County, Oregon Park Development Fees Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts REVENUES Local Licenses and permits Investment earnings Total revenues EXPENDITURES Current - departmental: Development Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not add due to rounding 126 Variance Original with Final Budget Final Budget Actual Budget $ 2,000 $ 2,000 $ 2,450 $ 450 800 800 1,566 766 2,800 2,800 4,016 1,216 95,800 95,800 1,467 94,333 95,800 95,800 1,467 94,333 (93,000) (93,000) 2,549 95,549 93,000 93,000 107,406 14,406 $ - $ - 109,955 $ 109,955 (530) $ 109,425 Totals may not add due to rounding 126 Deschutes County, Oregon County School Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings Intergovernmental State Federal Total revenues EXPENDITURES Current - departmental: Education Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Appropriation transfer Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year $ 300 S 300 $ 250 $ (50) 267,300 267,300 280,511 13,211 267,600 267,600 280,761 13,161 267,600 300,000 280,761 19,239 267,600 300,000 280,761 19,239 - (32,400) - 32,400 32,400 Totals may not add due to rounding 127 - 32,400 (32,400) (32,400) Deschutes County, Oregon Special Transportation Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 128 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 2,200 $ 2,200 $ 2,135 $ (65) Intergovernmental State 750,000 750,000 462,472 (287,528) Federal 65,000 65,000 32,763 (32,237) Total revenues 817,200 817,200 497,370 (319,830) EXPENDITURES Current - departmental: Health and Welfare 821,200 821,200 495,238 325,962 Total expenditures 821,200 821,200 495,238 325,962 Net change in fund balance (4,000) (4,000) 2,132 6,132 Fund balance - Beginning of year 4,000 4,000 7,030 3,030 Fund balance - End of year $ - $ - 9,162 $ 9,162 Unrealized gain (loss) on investments (66) Total fund balance, GAAP basis - End of Year $ 9,096 Totals may not add due to rounding 128 Deschutes County, Oregon Taylor Grazing Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 500 $ 500 $ 612 $ 112 Intergovernmental State 5,000 5,000 5,660 660 Total revenues 5,500 5,500 6,271 771 EXPENDITURES Current - departmental: Development 45,500 45,500 - 45,500 Total expenditures 45,500 45,500 - 45,500 Net change in fund balance (40,000) (40,000) 6,271 46,271 Fund balance - Beginning of year 40,000 40,000 41,685 1,685 Fund balance - End of year $ - $ - 47,957 $ 47,957 Unrealized gain (loss) on investments (231) Total fund balance, GAAP basis - End of Year $ 47,726 Totals may not add due to rounding 129 Deschutes County, Oregon Transient Room Tax Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Taxes - other Investment earnings Total revenues EXPENDITURES Current - departmental: Economic development Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Appropriation transfer Transfer out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Accrued taxes Total fund balance, GAAP basis - End of Year Budgeted Amounts 2,109,040 2,309,040 2,178,122 Variance Original 2,309,040 2,178,122 with Final Budget Final Budget Actual Budget $ 5,880,000 $ 5,880,000 $ 5,468,396 $ (411,604) 10,000 10,000 23,055 13,055 5,890,000 5,890,000 5,491,451 (398,549) 2,109,040 2,309,040 2,178,122 130,918 2,109,040 2,309,040 2,178,122 130,918 3,780,960 3,580,960 3,313,329 (267,631) - 200,000 - (200,000) (3,177,531) (3,177,531) (3,177,531) - (3,177,531) (2,977,531) (3,177,531) (200,000) 603,429 603,429 135,798 (467,631) 407,000 407,000 1,069,019 662,019 $ 1,010,429 $ 1,010,429 1,204,818 $ 194,389 Totals may not add due to rounding 130 (7,314) 666,637 $ 1,864,141 Deschutes County, Oregon Video Lottery Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 2,500 $ 2,500 $ 4,546 $ 2,046 Intergovernmental State 700,000 700,000 756,811 56,811 Total revenues 702,500 702,500 761,358 58,858 EXPENDITURES Current - departmental: Economic development 861,862 861,862 707,948 153,914 Total expenditures 861,862 861,862 707,948 153,914 Net change in fund balance (159,362) (159,362) 53,410 212,772 Fund balance - Beginning of year 159,362 159,362 157,923 (1,439) Fund balance - End of year $ - $ - 211,333 $ 211,333 Unrealized gain (loss) on investments (1,333) Total fund balance, GAAP basis - End of Year $ 210,000 Totals may not add due to rounding 131 Deschutes County, Oregon Transient Room Tax - I% Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Taxes - other Investment earnings Total revenues EXPENDITURES Current - departmental: Economic development Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfer out Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Accrued taxes Total fund balance, GAAP basis - End of Year Budgeted Amounts (159,314) 52,036 (245,978) Variance Original (245,978) with Final Budget Final Budget Actual Budget $ 840,000 $ 840,000 $ 781,204 $ (58,796) 7,000 7,000 8,294 1,294 847,000 847,000 789,498 (57,502) 1,006,314 1,006,314 737,462 268,852 1,006,314 1,006,314 737,462 268,852 (159,314) (159,314) 52,036 (245,978) (245,978) (245,978) (245,978) (245,978) (245,978) (405,292) (405,292) (193,942) Totals may not add due to rounding 132 361,634 (1,746) 95,234 211,350 211,350 150,284 Deschutes County, Oregon Foreclosed Land Sales Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Investment earnings Charges for services Total revenues EXPENDITURES Current - departmental: General services Total expenditures 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ - S - $ 18 $ 18 58,900 58,900 216,582 157,682 58,999 138,999 100,803 38,196 58,999 138,999 100,803 38,196 9,901 9,901 - 9,901 68,900 148,900 100,803 48,097 - 80,000 (10,000) (10,000) - (80,000) 115,797 125,797 $ - $ - 127,663 (615) $ 127,048 Totals may not add due to rounding 133 Deschutes County, Oregon Victims' Assistance Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Charges for services $ 32,000 S 32,000 $ 36,702 $ 4,702 Investment earnings - - 1,180 1,180 Contributions and donations - - 40 40 Intergovernmental State 101,980 101,980 76,485 (25,495) Federal 160,807 208,873 211,429 2,556 Total revenues 294,787 342,853 325,836 (17,017) EXPENDITURES Current - departmental: Judicial 589,530 659,247 642,409 16,838 Total expenditures 589,530 659,247 642,409 16,838 Operating contingency 95,905 74,254 - 74,254 Total expenditures 685,435 733,501 642,409 91,092 Excess (deficiency) of revenues over expenditures (390,648) (390,648) (316,573) 74,075 OTHER FINANCING SOURCES (USES) Transfers in 295,648 295,648 295,648 - Total other financing sources (uses) 295,648 295,648 295,648 - Net change in fund balance (95,000) (95,000) (20,925) 74,075 Fund balance - Beginning of year 95,000 95,000 102,442 7,442 Fund balance - End of year $ - $ - 81,517 $ 81,517 Unrealized gain (loss) on investments (411) Total fund balance, GAAP basis - End of Year $ 81,106 Totals may not add due to rounding 134 Deschutes County, Oregon Law Library Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 135 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 6,750 S 6,750 S 5,253 $ (1,497) Intergovernmental State 152,671 152,671 139,576 (13,095) Total revenues 159,421 159,421 144,829 (14,592) EXPENDITURES Current - departmental: Library services 206,900 206,900 154,727 52,173 Total expenditures 206,900 206,900 154,727 52,173 Operating contingency 331,321 331,321 - 331,321 Total expenditures 538,221 538,221 154,727 383,494 Excess (deficiency) of revenues over expenditures (378,800) (378,800) (9,898) 368,902 OTHER FINANCING SOURCES (USES) Transfers out (71,200) (71,200) (71,200) - Total other financing sources (uses) (71,200) (71,200) (71,200) - Net change in fund balance (450,000) (450,000) (81,098) 368,902 Fund balance - Beginning of year 450,000 450,000 432,993 (17,007) Fund balance - End of year $ - $ - 351,895 $ 351,895 Unrealized gain (loss) on investments (1,696) Total fund balance, GAAP basis - End of Year $ 350,199 Totals may not add due to rounding 135 Deschutes County, Oregon County Clerk Records Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 EXPENDITURES Current - departmental: Clerk records 138,729 138,729 110,162 28,567 Total expenditures 138,729 138,729 110,162 28,567 Operating contingency Budgeted Amounts 321,931 - 321,931 Total expenditures Variance 460,660 Original 350,498 with Final Net change in fund balance Budget Final Budget Actual Budget REVENUES Fund balance - Beginning of year 334,960 334,960 Local (12,463) Fund balance - End of year $ - Investment earnings $ 3,200 $ 3,200 $ 4,298 $ 1,098 Charges for services 122,500 122,500 112,886 (9,614) Total revenues 125,700 125,700 117,185 (8,515) EXPENDITURES Current - departmental: Clerk records 138,729 138,729 110,162 28,567 Total expenditures 138,729 138,729 110,162 28,567 Operating contingency 321,931 321,931 - 321,931 Total expenditures 460,660 460,660 110,162 350,498 Net change in fund balance (334,960) (334,960) 7,023 341,983 Fund balance - Beginning of year 334,960 334,960 322,497 (12,463) Fund balance - End of year $ - $ - 329,519 $ 329,519 Unrealized gain (loss) on investments (1,594) Total fund balance, GAAP basis - End of Year $ 327,926 Totals may not add due to rounding 136 Deschutes County, Oregon Court Facilities Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 137 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Fines, forfeitures and penalties $ 147,464 $ 147,464 $ 62,717 $ (84,747) Investment earnings 1,000 1,000 217 (783) Total revenues 148,464 148,464 62,934 (85,530) EXPENDITURES Current - departmental: Court safety 176,464 176,464 84,960 91,504 Total expenditures 176,464 176,464 84,960 91,504 Net change in fund balance (28,000) (28,000) (22,026) 5,974 Fund balance - Beginning of year 28,000 28,000 22,026 (5,974) Fund balance - End of year $ - $ - - $ - Unrealized gain (loss) on investments - Total fund balance, GAAP basis - End of Year $ - Totals may not add due to rounding 137 Deschutes County, Oregon Deschutes County Communication System Reserve Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 138 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 500 $ 500 $ 447 $ (53) Intergovernmental Local 50,000 50,000 50,000 - Total revenues 50,500 50,500 50,447 (53) EXPENDITURES Current - departmental: Communications - - - - Total expenditures - - - - Net change in fund balance 50,500 50,500 50,447 (53) Fund balance - Beginning of year - - 9,051 9,051 Fund balance - End of year $ 50,500 $ 50,500 59,497 $ 8,997 Unrealized gain (loss) on investments (287) Total fund balance, GAAP basis - End of Year $ 59,211 Totals may not add due to rounding 138 Deschutes County, Oregon Community Development Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 139 Budgeted Amounts Original Variance Budget Final Budget Actual with Final REVENUES Local Fines, forfeitures and penalties $ 4,200 $ 4,200 $ 8,356 $ 4,156 Investment earnings 53,300 53,300 90,960 37,660 Rents 18,240 18,240 16,841 (1,399) Charges for services 7,261,441 7,261,441 7,679,142 417,701 Intergovernmental Local 12,152 12,152 21,659 9,507 State 12,500 12,500 10,282 (2,218) Total revenues 7,361,833 7,361,833 7,827,240 465,407 EXPENDITURES Current - departmental: Community development 6,641,846 7,107,569 6,337,907 769,662 Total expenditures 6,641,846 7,107,569 6,337,907 769,662 Operating contingency 1,485,185 1,019,462 - 1,019,462 Total expenditures 8,127,031 8,127,031 6,337,907 1,789,124 Excess (deficiency) of revenues over expenditures (765,198) (765,198) 1,489,334 2,254,532 OTHER FINANCING SOURCES (USES) Transfers in 823,610 823,610 - (823,610) Transfers out (926,888) (926,888) (103,278) 823,610 Total other financing sources (uses) (103,278) (103,278) (103,278) - Net change in fund balance (868,476) (868,476) 1,386,056 2,254,532 Fund balance - Beginning of year 4,775,512 4,775,512 5,307,486 531,974 Fund balance - End of year $ 3,907,036 $ 3,907,036 6,693,541 $ 2,786,505 Unrealized gain (loss) on investments (33,065) Total fund balance, GAAP basis - End of Year $ 6,660,476 Totals may not add due to rounding 139 Deschutes County, Oregon CDD Groundwater Partnership Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 100 S 100 $ 527 $ 427 Total revenues 100 100 527 427 EXPENDITURES Current - departmental: Groundwater 26,730 26,730 11,250 15,480 Total expenditures 26,730 26,730 11,250 15,480 Excess (deficiency) of revenues over expenditures (26,630) (26,630) (10,723) 15,907 Net change in fund balance (26,630) (26,630) (10,723) 15,907 Fund balance - Beginning of year 26,630 26,630 38,001 11,371 Fund balance - End of year $ - $ - 27,278 $ 27,278 Unrealized gain (loss) on investments (131) Total fund balance, GAAP basis - End of Year $ 27,146 Totals may not add due to rounding 140 Deschutes County, Oregon Newberry Neighborhood Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Investment earnings Total revenues EXPENDITURES Operating contingency 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Variance with Final Actual Budget $ 1,000 $ 1,000 $ 40,848 $ 39,848 1,000 1,000 40,848 39,848 7,729 7,729 - 7,729 7,729 7,729 - 7,729 (6,729) (6,729) 40,848 47,577 (55,111) (55,111) (55,111) - (55,111) (55,111) (55,111) - (61,840) (61,840) (14,263) 47,577 61,840 61,840 1,004,886 943,046 $ - $ - 990,623 $ 990,623 Totals may not add due to rounding 141 (898) $ 989,725 Deschutes County, Oregon GIS Dedicated Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 142 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 1,200 $ 1,200 $ 3,168 $ 1,968 Charges for services 288,500 288,500 299,514 11,014 Intergovernmental State 11,520 11,520 11,509 (11) Total revenues 301,220 301,220 314,190 12,970 EXPENDITURES General services 327,906 327,906 222,613 105,293 Total 327,906 327,906 222,613 105,293 Operating contingency 80,621 80,621 - 80,621 Total expenditures 408,527 408,527 222,613 185,914 Net change in fund balance (107,307) (107,307) 91,577 198,884 Fund balance - Beginning of year 107,307 107,307 183,670 76,363 Fund balance - End of year $ - $ - 275,247 $ 275,247 Unrealized gain (loss) on investments (1,331) Total fund balance, GAAP basis - End of Year $ 273,916 Totals may not add due to rounding 142 Deschutes County, Oregon Natural Resource Protection Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 5,000 S 5,000 $ 9,737 $ 4,737 Charges for services - - 5,506 5,506 Intergovernmental State - - 17,650 17,650 Federal 1,237,000 1,237,000 705,798 (531,202) Total revenues 1,242,000 1,242,000 738,691 (503,309) EXPENDITURES General services 1,233,074 1,233,074 719,262 513,812 Total 1,233,074 1,233,074 719,262 513,812 Operating contingency 580,992 580,992 - 580,992 Total expenditures 1,814,066 1,814,066 719,262 1,094,804 Excess (deficiency) of revenues over expenditures (572,066) (572,066) 19,429 591,495 OTHER FINANCING SOURCES (USES) Transfers in 35,000 35,000 27,031 (7,969) Transfers out (37,400) (37,400) (37,400) - Total other financing sources (uses) (2,400) (2,400) (10,369) (7,969) Net change in fund balance (574,466) (574,466) 9,060 583,526 Fund balance - Beginning of year 574,466 574,466 615,404 40,938 Fund balance - End of year $ - $ - 624,464 $ 624,464 Unrealized gain (loss) on investments (2,832) Total fund balance, GAAP basis - End of Year $ 621,632 Totals may not add due to rounding 143 Deschutes County, Oregon Federal Forest Title III Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 2,500 S 2,500 $ 3,801 $ 1,301 Intergovernmental Federal - - 96,936 96,936 Total revenues 2,500 2,500 100,736 98,236 EXPENDITURES General services 120,000 120,000 108,742 11,258 Total 120,000 120,000 108,742 11,258 Operating contingency 152,961 152,961 - 152,961 Total expenditures 272,961 272,961 108,742 164,219 Net change in fund balance (270,461) (270,461) (8,006) 262,455 Fund balance - Beginning of year 270,461 270,461 270,664 203 Fund balance - End of year $ - $ - 262,659 $ 262,659 Unrealized gain (loss) on investments (1,284) Total fund balance, GAAP basis - End of Year $ 261,375 Totals may not add due to rounding 144 Deschutes County, Oregon Surveyor Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 145 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Licenses and permits $ 147,000 $ 147,000 $ 157,534 $ 10,534 Investment earnings 2,600 2,600 4,550 1,950 Charges for services 45,050 45,050 54,162 9,112 Total revenues 194,650 194,650 216,245 21,595 EXPENDITURES General services 165,000 165,000 145,040 19,960 Total 165,000 165,000 145,040 19,960 Operating contingency 190,224 190,224 - 190,224 Total expenditures 355,224 355,224 145,040 210,184 Net change in fund balance (160,574) (160,574) 71,205 231,779 Fund balance - Beginning of year 160,574 160,574 165,164 4,590 Fund balance - End of year $ - $ - 236,369 $ 236,369 Unrealized gain (loss) on investments (1,139) Total fund balance, GAAP basis - End of Year $ 235,229 Totals may not add due to rounding 145 Deschutes County, Oregon Public Land Corner Preservation Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 11,000 $ 11,000 $ 14,666 $ 3,666 Charges for services 480,000 480,000 438,112 (41,889) Total revenues 491,000 491,000 452,777 (38,223) EXPENDITURES General services 420,000 420,000 372,960 47,040 Total 420,000 420,000 372,960 47,040 Operating contingency 725,626 725,626 - 725,626 Total expenditures 1,145,626 1,145,626 372,960 772,666 Net change in fund balance (654,626) (654,626) 79,817 734,443 Fund balance - Beginning of year 654,626 654,626 678,076 23,450 Fund balance - End of year $ - $ - 757,893 $ 757,893 Unrealized gain (loss) on investments (3,654) Total fund balance, GAAP basis - End of Year $ 754,240 Totals may not add due to rounding 146 Deschutes County, Oregon Countywide Transportation SDC Improvement Fee Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Variance with Final Actual Budget $ 750,000 $ 750,000 $ 1,071,643 $ 321,643 30,000 30,000 43,258 13,258 780,000 780,000 1,114,902 334,902 2,241,042 2,241,042 - 2,241,042 2,241,042 2,241,042 - 2,241,042 (1,461,042) (1,461,042) 1,114,902 (1,275,400) (1,275,400) (578,054) (2,736,442) (2,736,442) 536,847 2,575,944 3,273,289 2,736,442 2,736,442 2,304,164 (432,278) $ - $ - 2,841,011 $ 2,841,011 Totals may not add due to rounding 147 (13,696) $ 2,827,315 Deschutes County, Oregon Dog Control Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 148 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Licenses and permits $ 291,000 $ 291,000 $ 254,342 $ (36,658) Fines, forfeitures and penalties 2,000 2,000 5,070 3,070 Investment earnings 2,700 2,700 1,743 (957) Charges for services 500 500 406 (94) Contributions and donations 5,000 5,000 5,516 516 Total revenues 301,200 301,200 267,077 (34,123) EXPENDITURES Animal control 446,523 446,523 383,960 62,563 Total 446,523 446,523 383,960 62,563 Operating contingency 44,296 44,296 - 44,296 Total expenditures 490,819 490,819 383,960 106,859 Excess (deficiency) of revenues over expenditures (189,619) (189,619) (116,883) 72,736 OTHER FINANCING SOURCES (USES) Transfers in 73,718 73,718 73,718 - Net change in fund balance (115,901) (115,901) (43,165) 72,736 Fund balance - Beginning of year 115,901 115,901 101,669 (14,232) Fund balance - End of year $ - $ - 58,504 $ 58,504 Unrealized gain (loss) on investments (523) Total fund balance, GAAP basis - End of Year $ 57,981 Totals may not add due to rounding 148 Deschutes County, Oregon Adult Parole and Probation Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 149 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Fines, forfeitures and penalties $ 380,000 $ 380,000 $ 341,719 $ (38,281) Investment earnings 10,000 10,000 36,963 26,963 Charges for services 56,500 56,500 114,152 57,652 Intergovernmental Local 61,000 61,000 - (61,000) State 4,914,474 4,914,474 5,549,987 635,513 Total revenues 5,421,974 5,421,974 6,042,821 620,847 EXPENDITURES Parole & Probation 6,299,725 6,299,725 5,807,233 492,492 Total 6,299,725 6,299,725 5,807,233 492,492 Operating contingency 904,438 904,438 - 904,438 Total expenditures 7,204,163 7,204,163 5,807,233 1,396,930 Excess (deficiency) of revenues over expenditures (1,782,189) (1,782,189) 235,588 2,017,777 OTHER FINANCING SOURCES (USES) Transfers in 451,189 451,189 451,189 - Transfers out (44,000) (44,000) (44,000) - Total other financing sources (uses) 407,189 407,189 407,189 - Net change in fund balance (1,375,000) (1,375,000) 642,777 2,017,777 Fund balance - Beginning of year 1,375,000 1,375,000 1,690,943 315,943 Fund balance - End of year $ - $ - 2,333,720 $ 2,333,720 Unrealized gain (loss) on investments (11,541) Total fund balance, GAAP basis - End of Year $ 2,322,180 Totals may not add due to rounding 149 Deschutes County, Oregon Deschutes County 9-1-1 County Service District Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Taxes - property Investment earnings Charges for services Other Intergovernmental Local State Total revenues EXPENDITURES Emergency services 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 Fund balance - Beginning of year Fund balance - End of year Adjustment to generally accepted accounting principles (GAAP) basis: Unrealized gain (loss) on investments Deschutes County 9-1-1 Equipment Reserve Fund balance - US GAAP Basis Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 8,011,725 $ 8,011,725 $ 8,082,427 $ 70,702 64,000 64,000 98,838 34,838 560,119 560,119 469,288 (90,831) - - 14,059 14,059 88,000 88,000 99,878 11,878 990,000 990,000 1,074,653 84,653 9,713,844 9,713,844 9,839,142 125,298 12,328,643 12,328,643 11,877,430 451,213 12,328,643 12,328,643 11,877,430 451,213 4,791,338 4,791,338 - 4,791,338 17,119,981 17,119,981 11,877,430 5,242,551 (7,406,137) (7,406,137) (2,038,288) 5,367,849 806,137 806,137 806,137 - (6,600,000) (6,600,000) (1,232,151) $ - $ - 6,046,919 Totals may not add due to rounding 150 (27,751) 2,620,422 $ 8,639,589 5,367,849 Deschutes County, Oregon 9-1-1 County Service District Equipment Reserve (Sub -Fund of Deschutes County 9-1-1 County Service District) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 Totals may not add due to rounding 151 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Investment earnings $ 40,000 $ 40,000 $ 45,174 $ 5,174 Total revenues 40,000 40,000 45,174 5,174 EXPENDITURES Emergency services - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 40,000 40,000 45,174 5,174 OTHER FINANCING SOURCES (USES) Transfers in 493,863 493,863 493,863 - Transfers out (1,300,000) (1,300,000) (1,300,000) - Total other financing sources (uses) (806,137) (806,137) (806,137) - Net change in fund balance (766,137) (766,137) (760,963) 5,174 Fund balance - Beginning of year 3,200,000 3,200,000 3,394,078 194,078 Fund balance - End of year $ 2,433,863 $ 2,433,863 2,633,115 $ 199,252 Unrealized gain (loss) on investments (12,693) Total fund balance, GAAP basis - End of Year $ 2,620,422 Totals may not add due to rounding 151 Deschutes County, Oregon Extension and 4-H Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Taxes - property Investment earnings Charges for services Intergovernmental State Total revenues EXPENDITURES General services Total Operating contingency 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 Unrealized gain (loss) on investments Deschutes County Extension and 4-H District Construction Fund Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget Variance with Final Actual Budget $ 495,121 $ 495,121 $ 501,648 $ 6,527 3,100 3,100 4,593 1,493 1,000 1,000 50,348 49,348 7,549 7,549 - (7,549) 506,770 506,770 556,589 49,819 507,552 507,552 490,065 17,487 507,552 507,552 490,065 17,487 158,218 158,218 - 158,218 665,770 665,770 490,065 175,705 (159,000) (159,000) 66,524 225,524 (26,000) (26,000) (26,000) - (26,000) (26,000) (26,000) - (185,000) (185,000) 40,524 225,524 185,000 185,000 142,130 (42,870) $ - $ - 182,654 $ 182,654 Totals may not add due to rounding 152 (1,430) 514,096 $ 695,320 Deschutes County, Oregon Extension and 4-H Reserve (Sub -Fund of Extension and 4-H) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Investment earnings Total revenues EXPENDITURES 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Totals may not add due to rounding 153 (2,532) m C n nnc Variance Original with Final Budget Final Budget Actual Budget $ 2,500 $ 2,500 $ 7,398 $ 4,898 2,500 2,500 7,398 4,898 561,500 561,500 50,480 511,020 561,500 561,500 50,480 511,020 (559,000) (559,000) (43,082) 515,918 26,000 26,000 26,000 - 26,000 26,000 26,000 - (533,000) (533,000) (17,082) 515,918 533,000 533,000 533,710 710 $ - $ - 516,628 $ 516,628 Totals may not add due to rounding 153 (2,532) m C n nnc Deschutes County, Oregon Nonmajor Debt Service Fund Deschutes County Full Faith and Credit Debt Service Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 REVENUES Local Investment earnings Rents Charges for services Intergovernmental Local Total revenues EXPENDITURES Debt administration Debt service 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts (2,282,675) (2,185,133) Original 2,290,369 2,290,369 Variance with Budget Final Budget Actual Final Budget $ 8,500 $ 8,500 $ 15,728 $ 7,228 1,235,459 1,235,459 1,249,283 13,824 1,171,538 1,171,538 1,247,899 76,361 397,639 397,639 397,640 1 2,813,136 2,813,136 2,910,550 97,414 2,500 2,500 2,375 125 4 129 (2,282,675) (2,282,675) (2,185,133) 97,542 2,290,369 2,290,369 2,290,242 (127) 2,290,369 2,290,369 2,290,242 (127) 7,694 7,694 105,109 97,415 533,000 533,000 559,042 26,042 $ 540,694 $ 540,694 Totals may not add due to rounding 154 664,151 $ 123,457 (3,001) $ 661,151 Deschutes County, Oregon Nonmajor Capital Project Fund Road Capital Improvement Plan Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2018 REVENUES Local Investment earnings Total revenues EXPENDITURES Current: County roads Contingency 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 Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 125,000 $ 125,000 $ 120,460 $ (4,540) 125,000 125,000 120,460 (4,540) 3,395,701 3,395,701 2,933,626 462,075 8,260,123 8,260,123 - 8,260,123 11,655,824 11,655,824 2,933,626 8,722,198 (11,530,824) (11,530,824) (2,813,165) 8,717,659 5,275,400 5,275,400 4,578,054 (697,346) 5,275,400 5,275,400 4,578,054 (697,346) (6,255,424) (6,255,424) 1,764,889 8,020,313 6,255,424 6,255,424 7,823,938 1,568,514 $ - $ - 9,588,827 $ 9,588,827 Totals may not add due to rounding 155 (46,221) ES Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds As of and for the Year Ended June 30, 2018 Deschutes County, Oregon Deschutes County, Oregon Fiduciary Funds Statement of Changes in Assets and Liabilities - Agency Funds - Detail Activity Year Ended June 30, 2018 Amounts Held for Others Assets Cash, cash equivalents and investments, at fair value; plus accrued interest Accounts receivable Liabilities Accounts payable Due to other entities Governmental Others Balance July 1, 2017 Additions Deductions Balance June 30, 2018 $ 8,060,896 $ 361,482,266 $ 364,991,388 $ 4,551,774 567,068 326,830 890,898 3,000 $ 8,627,964 $ 361,809,096 $ 365,882,286 $ 4,554,774 $ 923,686 $ 9,406,326 $ 10,263,889 $ 66,123 2,777,294 355,602,375 355,517,359 2,862,311 4,926,984 1,046,682 4,347,326 1,626,340 $ 8,627,964 $ 366,055,383 $ 370,128,574 $ 4,554,774 Totals may not add due to rounding 156 Combining Funds and Individual Funds Statements and Schedules — Proprietary Funds — Enterprise Funds As of and for the Year Ended June 30, 2018 Deschutes County, Oregon Deschutes County, Oregon Solid Waste Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Rents Other Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Debt service Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Transfers in Transfers out Change in fund balance Fund balance - Beginning of year Fund balance, budget basis - End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows - pension Interest payable Compensated leave Net OPEB obligation Net pension liability Bonds (net of unamortized premiums/discounts) Accrued landfill closure and postclosure costs Deferred inflows - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 10,614,998 $ 10,614,998 $ 11,154,100 $ 539,102 10,801 10,801 8,341 (2,460) 12,000 12,000 24,711 12,711 10,637,799 10,637,799 11,187,151 549,352 11,644, 567 11,644, 567 10,627,099 1,017,468 861,102 861,102 861,102 - 5,064,334 5,064,334 - 5,064,334 17,570,003 17,570,003 11,488,201 6,081,802 (6,932,204) (6,932,204) (301,050) 6,631,154 69,900 69,900 140,923 71,023 2,550,000 2,550,000 - (2,550,000) (2,580,000) (2,580,000) (30,000) 2,550,000 (6,892,304) (6,892,304) (190,128) 6,702,176 7,685,524 7,685,524 9,113,209 1,427,685 $ 793,220 $ 793,220 8,923,081 $ 8,129,861 Totals may not add due to rounding 158 (41,420) 26,491,012 197,089 496,453 (16,251) (261,121) (804,822) (1,433,524) (8,527,873) (8,744,047) (42,943) $ 16,235,635 Deschutes County, Oregon Fair and Expo Center Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Operating grants Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Debt service Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Transfers in Transfers out Change in fund balance Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 2,617,344 $ 2,617,344 $ 2,507,016 $ (110,328) 1,017,570 1,017,570 751,807 (265,763) 3,634,914 3,634,914 3,258,823 (376,091) 4,695,411 4,695,411 3,705,339 990,072 101,824 101,824 101,824 - 197,101 197,101 - 197,101 4,994,336 4,994,336 3,807,163 1,187,173 (1,359,422) (1,359,422) (548,340) 811,082 15,000 15,000 12,252 (2,748) 1,037,800 1,037,800 501,722 (536,078) (536,078) (536,078) - 536,078 (842,700) (842,700) (34,367) 808,333 Fund balance - Beginning of year 842,700 842,700 867,844 25,144 Fund balance, budget basis - End of year $ - $ - 833,477 $ 833,477 Unrealized gain (loss) on investments Prepaid expenses Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows - pension Interest Payable Unearned revenues Accrued Compensated Leave Other Postemployment Benefits Net Pension Liability Bonds (net of unamortized premiums/discounts) Deferred inflows - pension Net position, GAAP basis - End of year Totals may not add due to rounding 159 (4,220) 174,049 18,887,321 4,161 346,682 (1,318) (269,659) (196,269) (410,973) (1,001,055) (824,999) (29,988) $ 17,507,209 Deschutes County, Oregon RV Park Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 EXPENDITURES Current - departmental County services Not allocated to organizational units: Debt service Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Transfers in Change in fund balance Fund balance - Beginning of year Fund balance, budget basis - End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Interest payable Bonds (net of unamortized premiums/discounts) Net position, GAAP basis, end of year 317,508 Budgeted Amounts 266,328 51,180 222,136 222,136 222,136 Variance with 252,554 Original Budget Final Budget Actual Final Budget OPERATING REVENUES 792,198 488,464 303,734 Charges for services $ 335,698 $ 335,698 $ 438,716 $ 103,018 Operating grants 70,000 70,000 35,088 (34,912) Total operating revenues 405,698 405,698 473,804 68,106 EXPENDITURES Current - departmental County services Not allocated to organizational units: Debt service Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Transfers in Change in fund balance Fund balance - Beginning of year Fund balance, budget basis - End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Interest payable Bonds (net of unamortized premiums/discounts) Net position, GAAP basis, end of year 317,508 317,508 266,328 51,180 222,136 222,136 222,136 - 252,554 252,554 - 252,554 792,198 792,198 488,464 303,734 (386,500) (386,500) (14,660) 371,840 1,500 1,500 6,094 4,594 160,000 160,000 160,000 - (225,000) (225,000) 151,434 376,434 225,000 225,000 292,046 67,046 $ - $ - 443,479 $ 443,479 Totals may not add due to rounding 160 (2,247 2,345,087 (2,444) (1,545,970) $ 1,237,906 Combining and Individual Funds Statements and Schedules — Proprietary Funds — Internal Service Funds As of and for the Year Ended June 30, 2018 Deschutes County, Oregon ASSETS Current assets: Cash and cash equivalents Investments, at fair value; plus accrued interest Accounts receivable Prepaid expenses Due from other funds 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 Intangible Total capital assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pension Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Due to other funds Current portion of noncurrent liabilities Total current liabilities Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2018 Administrative Board of County Finance Facilities Services Commissioners Finance Reserve Legal $ 108,685 $ 46,734 $ 17,951 $ 500 $ 58,027 $ 36,094 508,835 218,797 84,040 - 271,668 168,982 10,985 - - - - 345 7,000 158,473 - - - - - - 20,670 635,506 265,532 101,991 158,973 350,366 205,420 212,033 2,025 7,872 5,225 - - 946,604 15,121 - - 1,158,637 - - 650,627 265,532 101,991 1,317,611 350,366 205,420 452,639 286,611 93,388 372,814 452,639 286,611 93,388 372,814 199,362 199,362 65,056 3,403 5,766 2,381 2,517 - - - 20,670 - 135,486 194,351 - 173,686 89,460 200,543 197,754 5,766 196,737 91,977 Noncurrent liabilities Compensated leave 163,237 234,157 - 209,260 Net OPEB obligation 856,193 231,172 102,743 342,477 Net Pension Liability 1,307,009 827,598 269,661 1,076,514 Accrued claims payable - - - - Less current portion of noncurrent liabilities (135,486) (194,351) - (173,686) Total noncurrent liabilities 2,190,953 1,098,577 372,404 1,454,565 Total liabilities 2,391,495 1,296,330 378,170 1,651,302 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position 107,783 205,486 575,664 (89,460) 799,474 891,451 39,153 24,792 8,078 32,248 17,245 39,153 24,792 8,078 32,248 17,245 15,121 1,158,637 - (1,342,504) (768,980) (190,869) (1,151,763) 350,366 (503,914) $ (1,327,383) $ (768,980) $ (190,869) $ 6,875 $ 350,366 $ (503,914) Totals may not add due to rounding 162 ASSETS Current assets: Cash and cash equivalents Investments, at fair value; plus accrued interest Accounts receivable Prepaid expenses Due from other funds 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 Intangible Total capital assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - pension Total Deferred Outflows of Resources LIABILITIES Current liabilities: Accounts payable Due to other funds Current portion of noncurrent liabilities Total current liabilities Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2018 Human Information Information Health Resources Technology Tech Reserve Insurance Benefits Total $ 70,868 $ 102,148 $ 138,679 $ 1,169,178 $ 2,902,027 $ 4,650,891 331,784 478,226 649,259 5,473,766 13,586,490 21,771,848 32,250 80 - - - 43,660 2,723 - 168,196 - - - - - 20,670 437,626 580,454 787,938 6,642,944 16,488,517 26,655,266 1,999 214,032 - 24,667 26,691 194,195 - 202,066 - 6,820 12,045 40,605 - 987,209 - - 236,798 31,486 - 1,442,043- 437,626 580,454 1,024,736 6,674,430 16,488,517 28,097,309 174,338 487,728 84,786 2,151,665 174,338 487,728 84,786 2,151,665 17,172 23,358 6,523 92,839 1,493,072 1,712,089 - - - - - 20,670 59,878 220,882 - 2,493,447 771,992 4,139,181 77,050 244,240 6,523 2,586,286 2,265,064 5,871,940 Noncurrent liabilities Compensated leave 72,142 266,122 18,540 1,071,241 Net OPEB obligation 273,982 537,689 111,305 2,661,049 Net Pension Liability 503,406 1,408,329 244,821 - 6,213,003 Accrued claims payable - - 4,956,117 771,992 5,728,109 Less current portion of noncurrent liabilities (59,878) (220,882) (2,493,447) (771,992) (4,139,181) Total noncurrent liabilities 789,652 1,991,259 2,837,337 - 11,534,221 Total liabilities 866,702 2,235,499 6,523 5,423,623 2,265,064 17,406,161 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension 15,080 42,188 7,334 186,117 Total deferred inflows ofresources 15,080 42,188 - 7,334 186,117 NET POSITION Net investment in capital assets - - 194,195 24,667 - 1,392,620 Unrestricted (269,819) (1,209,506) 824,018 1,303,593 14,223,453 11,264,076 Total net position $ (269,819) $ (1,209,506) $ 1,018,213 $ 1,328,260 $ 14,223,453 $ 12,656,696 Totals may not add due to rounding 163 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2018 Totals may not add due to rounding 164 Administrative Board of County Finance Facilities Services Commissioners Finance Reserve Legal OPERATING REVENUES Charges for services $ 3,433,242 $ 1,292,876 $ 408,999 $ 1,915,484 $ 260,000 $ 953,024 Total operating revenues 3,433,242 1,292,876 408,999 1,915,484 260,000 953,024 OPERATING EXPENSES Personnel 2,087,449 1,148,940 485,461 1,334,567 - 1,065,176 Materials and services 1,183,651 202,431 207,221 589,887 79,252 137,934 Depreciation 2,011 - - 53,756 - - Total operating expenses 3,273,111 1,351,371 692,682 1,978,211 79,252 1,203,110 Operating income (loss) 160,131 (58,495) (283,683) (62,727) 180,748 (250,086) NONOPERATING REVENUES (EXPENSES) Investment earnings 5,824 3,394 1,162 604 4,526 3,723 Total nonoperating revenues (expenses) 5,824 3,394 1,162 604 4,526 3,723 Income (loss) before transfers 165,955 (55,102) (282,521) (62,123) 185,273 (246,364) OTHER FINANCING SOURCES (USES) Transfers in - 22,275 221,988 - Transfers out (40,260) - - - Equity transfer - - 271,678 (271,678) Net other financing sources (uses) (40,260) 22,275 221,988 271,678 (271,678) Change in net position 125,695 (32,827) (60,533) 209,555 (86,404) (246,364) Net position - Beginning of year (as previously reported) (1,184,807) (663,720) (98,143) (95,372) 436,770 (193,165) Prior Period Adjustment GASB #75 (268,271) (72,433) (32,192) (107,308) - (64,385) Net position - Beginning ofyear, as restated (1,453,077) (736,153) (130,336) (202,681) 436,770 (257,550) Net position - End of year $ (1,327,383) $ (768,980) $ (190,869) $ 6,875 $ 350,366 $ (503,914) Totals may not add due to rounding 164 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2018 Totals may not add due to rounding 165 Human Information Health Resources Technology IT Reserve Insurance Benefits Total OPERATING REVENUES Charges for services $ 985,240 $ 2,320,591 $ 234,000 $ 3,615,524 $ 21,796,146 $ 37,215,127 Total operating revenues 985,240 2,320,591 234,000 3,615,524 21,796,146 37,215,127 OPERATING EXPENSES Personnel 976,328 1,998,326 - 388,775 - 9,485,023 Materials and services 293,353 469,877 29,479 2,863,087 20,987,269 27,043,441 Depreciation - - 87,986 2,383 - 146,135 Total operating expenses 1,269,680 2,468,203 117,465 3,254,245 20,987,269 36,674,599 Operating income (loss) (284,440) (147,612) 116,535 361,280 808,877 540,527 NONOPERATING REVENUES (EXPENSES) Investment earnings 7,232 8,188 8,676 63,736 168,237 275,300 Total nonoperating revenues (expenses), net 7,232 8,188 8,676 63,736 168,237 275,300 Income (loss) before transfers (277,208) (139,424) 125,211 425,015 977,114 815,827 OTHER FINANCING SOURCES (USES) Transfers in 66,000 - - - 310,263 Transfers out - (1,000) (41,260) Equity transfer - - Net other financing sources (uses) 66,000 - (1,000) - 269,003 Change in net position (277,208) (73,424) 125,211 424,015 977,114 1,084,830 Net position - Beginning of year (as previously reported) 93,236 (967,608) 893,002 939,120 13,246,339 12,405,651 Prior Period Adjustment GASB #75 (85,847) (168,474) - (34,875) - (833,785) Net position - Beginning of year, as restated 7,389 (1,136,082) 893,002 904,244 13,246,339 11,571,866 Net position - End of year $ (269,819) $ (1,209,506) $ 1,018,213 $ 1,328,260 $ 14,223,453 $ 12,656,696 Totals may not add due to rounding 165 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2018 Administrative Board of County Finance Facilities Services Commissioners Finance Reserve Legal CASH FLOWS FROM OPERATING ACTIVITIES (18,586) (5,307) 42,927 142,873 77,960 Receipts from customers $ 3,508,493 $ 1,292,876 $ 409,003 $ 1,915,484 $ 260,000 $ 952,681 Payments to employees (2,066,339) (1,092,412) (419,939) (1,398,245) - (915,405) Payments to suppliers (1,160,062) (208,159) (207,574) (591,027) (154,802) (141,120) Net cash provided (used) by operating activities 282,092 (7,696) (218,509) (73,787) 105,198 (103,843) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES 46,832 18,416 10,029 96,917 Transfers in - 22,275 221,988 - Transfers out (40,260) - - 500 $ 58,027 $ Net cash provided (used) by noncapital financing activities (40,260) 22,275 221,988 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 yeas 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 Accounts payable Claims payable Compensated leave OPEB obligation Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments (5,500) 20,670 (292,348) (5,500) 20,670 (292,348) (205,464) (18,586) (5,307) 42,927 142,873 77,960 6,808 3,910 1,363 661 5,387 4,244 (198,656) (14,677) (3,944) 43,588 148,260 82,203 (1,318) (75,550) (3,183) 18,539 21,998 - 1,169 37,676 (97) (465) (9,529) (38,890) (21,640) 71,009 46,832 18,416 10,029 96,917 57,734 $ 108,685 $ 46,734 $ 17,951 $ 500 $ 58,027 $ 36,094 $ 160,131 $ (58,495) $ (283,683) $ (62,727) $ 180,748 $ (250,086) 2,011 53,756 75,251 - (345) - - - 179 - (8,912) 33,320 64,985 (71,307) 139,805 23,589 (5,728) (349) (1,318) (75,550) (3,183) 18,539 21,998 - 1,169 8,890 11,484 1,210 538 6,460 - 1,076 $ 282,092 $ (7,696) $ (218,509) $ (73,787) $ 105,198 $ (103,843) $ (2,312) $ (838) $ (318) $ 96 $ (670) $ (441) Totals may not add due to rounding 166 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2018 Human Information Health Resources Technology IT Reserve Insurance Benefits Total CASH FLOWS FROM OPERATING ACTIVITIES 5,716 (76,823) (1,100,182) (944,019) Receipts from customers $ 969,909 $ 2,320,664 $ 234,000 $ 3,615,520 $ 21,796,146 $ 37,274,780 Payments to employees (876,505) (1,950,682) - (360,138) - (9,079,664) Payments to suppliers (298,592) (462,110) (22,956) (2,084,037) (21,107,800) (26,438,237) Net cash provided (used) by operating activities (205,189) (92,128) 211,044 1,171,346 688,346 1,756,879 113,183 133,905 1,023,220 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES 4,642,020 211,044 $ 1,171,346 $ 688,346 $ 1,756,879 Transfers in - 66,000 - - - 310,263 Transfers out $ 138,679 - (1,000) (41,260) Net cash provided (used) by noncapital financing activities 66,000 (1,000) 269,003 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 yeas 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 Accounts payable Claims payable Compensated leave OPEB obligation Net cash provided (used) by operating activities NONCASH INVESTING ACTIVITIES Change in fair value of investments (139,624) (416,802) (139,624) (416,802) 154,180 5,716 (76,823) (1,100,182) (944,019) (1,926,725) 8,256 9,377 10,177 75,795 200,545 326,522 162,437 15,092 (66,646) (1,024,387) (743,474) (1,600,203) (42,752) (11,035) 4,774 145,958 (55,127) 8,877 113,620 113,183 133,905 1,023,220 2,957,155 4,642,020 211,044 $ 1,171,346 $ 688,346 $ 1,756,879 $ 70,868 $ 102,148 $ 138,679 $ 1,169,178 $ 2,902,027 $ 4,650,891 $ (284,440) $ (147,612) $ 116,535 $ 361,280 $ 808,877 $ 540,527 87,986 2,383 146,135 (15,331) 70 59,645 (2,723) - - (2,544) 78,185 8,052 - 31,576 - 275,704 (2,516) 7,770 6,523 33,755 1,215,417 1,198,414 - - - 745,292 (1,335,948) (590,656) 20,203 36,778 (3,522) 104,054 1,434 2,815 - 583 - 25,600 $ (205,189) $ (92,128) $ 211,044 $ 1,171,346 $ 688,346 $ 1,756,879 $ (863) $ (1,728) $ (2,535) $ (22,387) $ (51,572) $ (83,567) Totals may not add due to rounding 167 Deschutes County, Oregon Facilities Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Transfers out Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred outflows of resources Accrued compensated leave Other postemployment benefits Net pension liability Deferred inflows of resources - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 3,383,720 $ 3,383,720 $ 3,433,242 $ 49,522 3,383,720 3,383,720 3,433,242 49,522 3,441,148 3,441,148 3,255,490 185,658 40,260 40,260 40,260 - 294,312 294,312 - 294,312 3,775,720 3,775,720 3,295,750 479,970 (392,000) (392,000) 137,492 529,492 4,000 4,000 8,136 4,136 (388,000) (388,000) 145,628 533,628 388,000 388,000 427,813 39,813 $ - $ - 573,441 $ 573,441 Totals may not add due to rounding 168 (2,991) 15,121 452,639 (163,237) (856,193) (1,307,009) (39,153) $ (1,327,383) Deschutes County, Oregon Administrative Services Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Transfers in Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Deferred outflows of resources Accrued compensated leave Other postemployment benefits Net pension liability Deferred inflows of resources- pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,255,069 $ 1,255,069 $ 1,292,876 $ 37,807 1,255,069 1,255,069 1,292,876 37,807 1,288,160 1,358,160 1,294,843 63,317 169,309 99,309 - 99,309 1,457,469 1,457,469 1,294, 843 162,626 (202,400) (202,400) (1,967) 200,433 2,400 2,400 4,232 1,832 40,000 40,000 22,275 (17,725) (160,000) (160,000) 24,539 184,539 160,000 160,000 238,875 78,875 $ - $ - 263,415 $ 263,415 Totals may not add due to rounding 169 (1,286) 286,611 (234,157) (231,172) (827,598) (24,792) $ (768,980) Deschutes County, Oregon Board of County Commissioners Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings OTHER FINANCING SOURCES Transfers in Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Deferred outflows of resources - pension Other postemployment benefits Net pension liability Deferred inflows of resources - pension Net position, GAAP basis, end of year Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget $ 409,003 $ 409,003 $ 409,003 $ - 409,003 409,003 409,003 - 641,063 641,063 627,159 13,904 49,678 49,678 - 49,678 690,741 690,741 627,159 63,582 (281,738) (281,738) (218,156) 63,582 750 750 1,480 730 221,988 221,988 221,988 - (59,000) (59,000) 5,312 64,312 59,000 59,000 Totals may not add due to rounding 170 91,408 32,408 96,720 $ 96,720 (494) 93,388 (102,743) (269,661) (8,078) $ (190,869) Deschutes County, Oregon Finance Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred outflows of resources Accrued compensated leave Other postemployment benefits Net pension liability Deferred inflows of resources - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 1,887,857 $ 1,887,857 $ 1,915,484 $ 27,627 1,887,857 1,887,857 1,915,484 27,627 1,923,095 1,993,095 1,988,132 4,963 147,887 77,887 - 77,887 2,070,982 2,070,982 1,988,132 82,850 (183,125) (183,125) (72,648) 110,477 3,125 3,125 508 (2,617) (180,000) (180,000) (72,140) 107,860 180,000 180,000 208,061 28,061 $ - $ - 135,922 $ 135,922 Totals may not add due to rounding 171 1,158,637 372,814 (209,260) (342,477) (1,076,514) (32,248) $ 6,875 Deschutes County, Oregon Finance Reserve Schedule of Revenues, Expenditures, and Changes Fund Balance - Budget and Actual Year Ended June 30, 2018 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget OPERATING REVENUES Charges for services $ 260,000 $ 260,000 $ 260,000 $ - Total operating revenues 260,000 260,000 260,000 - EXPENDITURES Current - departmental County services Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Net position, GAAP basis, end of year 403,000 403,000 350,930 52,070 403,000 403,000 350,930 52,070 (143,000) (143,000) (90,930) 52,070 3,000 3,000 5,195 2,195 (140,000) (140,000) (85,735) 54,265 140,000 140,000 437,697 297,697 $ - $ - 351,963 $ 351,963 Totals may not add due to rounding 172 (1,597) $ 350,366 Deschutes County, Oregon Legal Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Deferred outflows of resources Accrued compensated leave Other postemployment benefits Net pension liability Deferred inflows of resources - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 951,454 $ 951,454 $ 953,024 $ 1,570 951,454 951,454 953,024 1,570 1,046,295 1,086,295 1,053,339 32,956 194,459 154,459 - 154,459 1,240,754 1,240,754 1,053,339 187,415 (289,300) (289,300) (100,315) 188,985 4,300 4,300 4,163 (137) (285,000) (285,000) (96,152) 188,848 285,000 285,000 300,048 15,048 $ - $ - 203,896 $ 203,896 Totals may not add due to rounding 173 (993) 199,362 (107,783) (205,486) (575,664) (17,245) $ (503,914) Deschutes County, Oregon Human Resources Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget OPERATING REVENUES Charges for services $ 984,556 $ 984,556 $ 985,240 $ 684 Total operating revenues 984,556 984,556 985,240 684 EXPENDITURES Current - departmental County services 1,193,329 1,252,329 1,169,858 82,471 Not allocated to organizational units: Contingency 383,002 324,002 - 324,002 Total expenditures 1,576,331 1,576,331 1,169,858 406,473 Operations, net (591,775) (591,775) (184,618) 407,157 NONOPERATING REVENUES Investment earnings 6,775 6,775 8,095 1,320 Change in fund balance (585,000) (585,000) (176,523) 408,477 Fund balance, Beginning of year 585,000 585,000 598,926 13,926 Fund balance, budget basis, End of year $ - $ - 422,404 $ 422,404 Unrealized gain (loss) on investments (1,950) Deferred outflows of resources 174,338 Accrued compensated leave (72,142) Other postemployment benefits (273,982) Net pension liability (503,406) Deferred inflows of resources - pension (15,080) Net position, GAAP basis, end of year $ (269,819) Totals may not add due to rounding 174 Deschutes County, Oregon Information Technology Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 Net position, GAAP basis, end of year $ (1,209,506) Totals may not add due to rounding 175 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget OPERATING REVENUES Charges for services $ 2,332,521 $ 2,332,521 $ 2,320,591 $ (11,930) Total operating revenues 2,332,521 2,332,521 2,320,591 (11,930) EXPENDITURES Current - departmental County services 2,583,708 2,583,708 2,420,558 163,150 Not allocated to organizational units: Contingency 223,479 223,479 - 223,479 Total expenditures 2,807,187 2,807,187 2,420,558 386,629 Operations, net (474,666) (474,666) (99,967) 374,699 NONOPERATING REVENUES Investment earnings 4,000 4,000 9,916 5,916 OTHER FINANCING SOURCES Transfers in 66,000 66,000 66,000 - Change in fund balance (404,666) (404,666) (24,051) 380,615 Fund balance, Beginning of year 404,666 404,666 583,958 179,292 Fund balance, budget basis, End of year $ - $ - 559,907 $ 559,907 Unrealized gain (loss) on investments (2,811) Deferred outflows of resources 487,728 Accrued compensated leave (266,122) Other postemployment benefits (537,689) Net pension liability (1,408,329) Deferred inflows of resources - pension (42,188) Net position, GAAP basis, end of year $ (1,209,506) Totals may not add due to rounding 175 Deschutes County, Oregon Information Technology Reserve Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual Year Ended June 30, 2018 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget OPERATING REVENUES Charges for services $ 234,000 $ 234,000 $ 234,000 $ - Total operating revenues 234,000 234,000 234,000 - EXPENDITURES Current - departmental County services 220,500 220,500 169,103 51,397 Total expenditures 220,500 220,500 169,103 51,397 Operations, net 13,500 13,500 64,897 51,397 NONOPERATING REVENUES Investment earnings 6,000 6,000 11,211 5,211 Change in fund balance 19,500 19,500 76,107 56,607 Fund balance, Beginning of year 444,328 444,328 709,124 264,796 Fund balance, budget basis, End of year $ 463,828 $ 463,828 785,231 $ 321,403 Unrealized gain (loss) on investments (3,817) Capital assets (net of accumulated depreciation) 236,798 Net position, GAAP basis, end of year $ 1,018,213 Totals may not add due to rounding 176 Deschutes County, Oregon Insurance Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual Year Ended June 30, 2018 OPERATING REVENUES Charges for services Total operating revenues EXPENDITURES Current - departmental County services Not allocated to organizational units: Transfers out Contingency Total expenditures Operations, net NONOPERATING REVENUES Investment earnings Change in fund balance Fund balance, Beginning of year Fund balance, budget basis, End of year Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred outflows of resources Accrued compensated leave Other postemployment benefits Net pension liability Accrued claims payable Deferred inflows of resources - pension Net position, GAAP basis, end of year Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 3,298,067 $ 3,298,067 $ 3,615,524 $ 317,457 3,298,067 3,298,067 3,615,524 317,457 2,736,326 2,766,326 2,477,933 288,393 1,000 1,000 1,000 - 5,531,841 5,501,841 - 5,501,841 8,269,167 8,269,167 2,478,933 5,790,234 (4,971,100) (4,971,100) 1,136,591 6,107,691 73,464 73,464 86,122 12,658 (4,897,636) (4,897,636) 1,222,713 6,120,349 4,897,636 4,897,636 5,359,570 461,934 $ - $ - 6,582,283 $ 6,582,283 Totals may not add due to rounding 177 (32,179) 31,486 84,786 (18,540) (111,305) (244,821) (4,956,117) (7,334) $ 1,328,260 Deschutes County, Oregon Health Benefits Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2018 Unrealized gain (loss) on investments (79,871) Accrued claims payable (771,992) Net position, GAAP basis, end of year $ 14,223,453 Totals may not add due to rounding 178 Budgeted Amounts Variance with Original Budget Final Budget Actual Final Budget OPERATING REVENUES Charges for services $ 21,375,803 $ 21,375,803 $ 21,796,146 $ 420,343 Total operating revenues 21,375,803 21,375,803 21,796,146 420,343 EXPENDITURES Current - departmental County services 22,038,292 22,398,292 22,323,217 75,075 Not allocated to organizational units: Contingency 14,547,511 14,187,511 - 14,187,511 Total expenditures 36,585,803 36,585,803 22,323,217 14,262,586 Operations, net (15,210,000) (15,210,000) (527,071) 14,682,929 NONOPERATING REVENUES Investment earnings 210,000 210,000 219,809 9,809 Change in fund balance (15,000,000) (15,000,000) (307,262) 14,692,738 Fund balance, Beginning of year 15,000,000 15,000,000 15,382,578 382,578 Fund balance, budget basis, End of year $ - $ - 15,075,316 $ 15,075,316 Unrealized gain (loss) on investments (79,871) Accrued claims payable (771,992) Net position, GAAP basis, end of year $ 14,223,453 Totals may not add due to rounding 178 Other Financial Schedules As of and for the Year Ended June 30, 2018 Deschutes County, Oregon Deschutes County, Oregon Schedule of Property Tax Transactions - All County Taxes June 30, 2018 Beginning Balance and FY Tax Year 2018 Levy FY 2008 & Prior $ 48,201 FY 2009 12,335 FY 2010 21,620 FY 2011 22,019 FY 2012 30,104 FY 2013 52,254 FY 2014 235,966 FY 2015 990,512 FY 2016 1,925,506 FY 2017 4,996,821 FY 2018 357,597,059 (2,713) TOTALS $ 365,932,398 (71,060) Other Distributions: (340,144) Interest earned on unsegregated taxes Other tax distribution TOTAL CASH COLLECTIONS Taxes Receivable June 30, 2018 $ 42,789 11,909 20,857 19,216 19,429 28,971 46,462 388,768 959,063 1,922,381 4,561,057 $ (423,691) $ (8,433,878) 349,053,926 $ 8,020,903 Summary of Taxes Receivable at June 30, 2018: Deschutes County General Fund Special Revenue Funds Other taxing jurisdictions Totals may not add due to rounding 180 59,387 532,131 $ 349,645,444 $ 695,683 957,343 6,367,877 $ 8,020,903 Turnovers from Interest County Adjustments (Discount) Treasurer $ 1,386 $ 7,377 $ 14,175 (228) 172 369 (348) 336 752 (355) 1,689 4,136 (2,474) 5,037 13,238 (2,503) 10,484 31,263 (2,603) 65,832 252,734 (2,650) 172,411 771,505 (2,713) 177,912 1,141,642 (71,060) 213,109 3,216,489 (340,144) (9,088,236) 343,607,622 Taxes Receivable June 30, 2018 $ 42,789 11,909 20,857 19,216 19,429 28,971 46,462 388,768 959,063 1,922,381 4,561,057 $ (423,691) $ (8,433,878) 349,053,926 $ 8,020,903 Summary of Taxes Receivable at June 30, 2018: Deschutes County General Fund Special Revenue Funds Other taxing jurisdictions Totals may not add due to rounding 180 59,387 532,131 $ 349,645,444 $ 695,683 957,343 6,367,877 $ 8,020,903 Deschutes County, Oregon Schedule of Long -Term Debt Principal Transactions Year Ended June 30, 2018 Final Amount of Outstanding Bonds Date of Maturity Original July 1, Bonds Called and Series Issue Date Issue 2017 Issued Matured Pension Bonds Series 2002 Series 2004 Total Pension Bonds Bonds Refunding Series 2005 Series 2008 Series 2009 Series 2010 Refunding Series 2012 Series 2013 Total Bonds Notes from Direct Borrowings Refunding Series 2015 Refunding Series 2016 Total Notes Total Long -Term Debt Outstanding June 30, 2018 03/28/2002 06/01/2028 $ 5,429,586 $ 3,949,413 $ - $ 87,660 $ 3,861,753 05/27/2004 06/01/2028 7,090,000 5,950,000 - 290,000 5,660,000 12,519,586 9,899,413 - 377,660 9,521,753 08/11/2005 06/01/2018 5,915,000 545,000 - 545,000 - 12/30/2008 06/01/2028 9,635,000 6,565,000 - 485,000 6,080,000 04/09/2009 06/01/2028 3,215,000 2,130,000 - 160,000 1,970,000 05/27/2010 12/01/2029 1,320,000 990,000 - 60,000 930,000 03/29/2012 12/01/2032 26,345,000 21,830,000 - 1,155,000 20,675,000 08/08/2013 06/01/2038 8,405,000 7,505,000 - 240,000 7,265,000 54,835,000 39,565,000 - 2,645,000 36,920,000 12/08/2015 12/01/2026 3,775,000 3,390,600 - 389,500 3,001,100 05/25/2016 06/01/2027 6,277,000 5,756,000 - 533,000 5,223,000 10,052,000 9,146,600 - 922,500 8,224,100 $ 77,406,586 $ 58,611,013 $ - $ 3,945,160 $ 54,665,853 Totals may not add due to rounding 181 Deschutes County, Oregon 2,581,262 $ Schedule of Long -Term Debt Interest Transactions 2,135,814 Year Ended June 30, 2018 2,461,996 Unmatured Unmatured Interest and and Rates on Outstanding Coupons Outstanding Outstanding July 1, Bonds Called and June 30, Series Balances 2017 Issued Matured 2018 Pension Bonds Series 2002 Series 2004 Total Pension Bonds Bonds Refunding Series 2005 Series 2008 Series 2009 Series 2010 Refunding Series 2012 Series 2013 Total Bonds Notes from Direct Borrowings Refunding Series 2015 Refunding Series 2016 Total Notes Total Long -Term Debt 6.85% $ 2,581,262 $ - $ 445,448 $ 2,135,814 5.35% - 6.095% 2,461,996 - 360,430 2,101,566 5,043,258 805,878 4,237,380 4.00% 21,800 - 21,800 - 4-4.625% 1,862,574 - 283,549 1,579,025 3.375 -4.45% 586,236 - 89,181 497,055 2-4% 263,706 - 34,309 229,397 2-4% 5,606,967 - 634,064 4,972,903 3.25-4.5% 3,942,869 - 304,131 3,638,738 12,284,152 - 1,367,034 10,917,118 1.99-2.49% 301,806 - 63,597 238,209 1.68% 545,160 - 96,701 448,459 846,966 - 160,298 686,668 $ 18,174,376 $ - $ 2,333,210 $ 15,841,166 Totals may not add due to rounding 182 Year of Maturity 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Pension Obligation Bonds Year Ended June 30, 2018 Totals may not add due to rounding 183 Total Requirements Series 2002 Series 2004 Principal Interest Total Principal Interest Principal Interest $ 423,139 $ 813,170 $ 1,236,309 $ 88,139 $ 469,969 $ 335,000 $ 343,201 503,615 792,544 1,296,158 118,615 469,493 385,000 323,051 805,000 550,261 1,355,261 365,000 250,368 440,000 299,893 920,000 498,792 1,418,792 420,000 225,365 500,000 273,427 1,040,000 439,947 1,479,947 480,000 196,595 560,000 243,352 1,170,000 373,383 1,543,383 540,000 163,715 630,000 209,668 700,000 297,995 997,995 - 126,725 700,000 171,270 1,465,000 255,330 1,720,330 685,000 126,725 780,000 128,605 1,640,000 160,866 1,800,866 770,000 79,803 870,000 81,064 855,000 55,095 910,095 395,000 27,058 460,000 28,037 $ 9,521,753 $ 4,237,380 $ 13,759,134 $ 3,861,753 $ 2,135,814 $ 5,660,000 $ 2,101,566 Totals may not add due to rounding 183 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds and Direct Borrowings- Governmental Activities June 30, 2018 Totals may not add due to rounding 184 Total Requirements Series 2008 Series 2009 Year of Maturity Principal Interest Total Principal Interest Principal Interest 2019 $ 2,155,590 $ 1,185,460 $ 3,341,050 $ 500,000 $ 264,149 $ 165,000 $ 83,501 2020 2,225,539 1,114,757 3,340,296 525,000 244,149 170,000 76,901 2021 2,293,510 1,046,422 3,339,932 545,000 223,149 175,000 70,101 2022 2,367,236 978,363 3,345,599 565,000 200,531 185,000 63,101 2023 2,451,317 896,225 3,347,543 590,000 176,519 190,000 55,470 2024 2,405,329 810,558 3,215,888 615,000 151,149 200,000 47,633 2025 2,489,863 727,223 3,217,087 640,000 124,243 210,000 39,383 2026 2,343,015 640,099 2,983,114 670,000 95,763 215,000 30,038 2027 2,425,858 552,223 2,978,080 700,000 65,613 225,000 20,470 2028 2,517,678 460,607 2,978,285 730,000 33,763 235,000 10,458 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 - - - - $ 34,353,127 $ 10,028,397 $ 44,381,524 $ 6,080,000 $ 1,579,025 $ 1,970,000 $ 497,055 Totals may not add due to rounding 184 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds and Direct Borrowings- Governmental Activities June 30, 2018 Totals may not add due to rounding 185 Series 2010 Ref Series 2012 Series 2013 Direct Borrowing -2015 Year of Maturity Principal Interest Principal Interest Principal Interest Principal Interest 2019 $ 65,000 $ 32,628 $ 968,484 $ 479,972 $ 250,000 $ 296,931 $ 207,106 $ 28,280 2020 65,000 30,799 1,001,091 450,591 255,000 288,181 209,448 24,135 2021 65,000 28,858 1,029,600 425,136 265,000 279,256 213,909 19,922 2022 70,000 26,713 1,058,159 398,449 275,000 269,981 214,077 19,587 2023 70,000 24,394 1,094,824 365,310 285,000 260,356 221,493 14,177 2024 75,000 21,806 994,375 330,984 295,000 250,381 225,954 8,606 2025 80,000 18,900 1,022,218 303,221 305,000 238,581 232,646 2,896 2026 80,000 15,900 1,058,015 272,017 320,000 226,381 - - 2027 85,000 12,700 1,085,858 239,859 330,000 213,581 - - 2028 90,000 9,200 1,117,678 206,806 345,000 200,381 - - 2029 90,000 5,600 1,149,498 172,799 360,000 186,581 - - 2030 95,000 1,900 1,189,273 137,717 375,000 172,181 - - 2031 - - 1,229,048 100,828 390,000 157,181 - - 2032 - - 1,272,800 61,890 405,000 141,581 - - 2033 - - 1,312,575 21,001 420,000 124,875 - - 2034 - - - - 435,000 107,550 - - 2035 - - - - 455,000 87,975 - - 2036 - - - - 480,000 67,500 - - 2037 - - - - 500,000 45,900 - - 2038 - - - - 520,000 23,400 - - $ 930,000 $ 229,397 $ 16,583,494 $ 3,966,579 $ 7,265,000 $ 3,638,738 $ 1,524,633 $ 117,603 Totals may not add due to rounding 185 Deschutes County, Oregon Schedule of Future Debt Service Requirements Full Faith and Credit Bonds and Direct Borrowings - Business Type Activities June 30, 2018 Totals may not add due to rounding 186 Total Requirements Refunding Series 2012 Direct Borrowing - 2015 Direct Borrowing - 2016 Year of Maturity Principal Interest Total Principal Interest Principal Interest Principal Interest 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 - - - $ 10,790,973 $ 1,575,388 $ 12,366,361 $ 4,091,506 $ 1,006,324 $ 1,476,467 $ 120,606 $ 5,223,000 $ 448,459 Totals may not add due to rounding 186 Statistical Section As of and for the Year Ended June 30, 2018 Deschutes County, Oregon ES 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 188-198 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 198-203 These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. Debt Capacity 204-210 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 211-213 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 214-216 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 year 2014; schedules containing information for years prior to fiscal year 2014 have not been restated in accordance with GASB No. 65, unless otherwise stated. IMVA Governmental activities Net investment in capital assets Restricted Unrestricted Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2009 2010 2011 2012 2013 $ 76,240,077 $ 89,584,653 $ 92,525,275 $ 95,512,157 $ 89,462,800 2,411,903 3,755,874 3,979,615 4,015,788 2,368,923 67,437,330 72,846,870 73,592,055 71,206,363 76,086,991 Total governmental activities net position Business -type activities Net investment in capital assets Restricted Unrestricted Total business -type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position $146,089,310 $166,187,397 $170,096,945 $170,734,308 $167,918,714 $ 20,821,757 $ 23,311,911 $ 25,780,444 $ 25,824,953 $ 27,369,640 1,130,284 1,177,729 1,191,785 951,696 726,437 4,004,099 615,719 (1,399,646) (1,667,939) (3,269,965) $ 25,956,140 $ 25,105,359 $ 25,572,583 $ 25,108,710 $ 24,826,112 $ 97,061,834 $112,896,564 $118,305,719 $121,337,110 $116,832,440 3,542,187 4,933,603 5,171,400 4,967,484 3,095,362 71,441,429 73,462,589 72,192,409 69,538,424 72,817,030 $172.045.450 $191.292.756 $195.669.528 $195.843.018 $192.744.832 Totals may not add due to rounding 188 Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business -type activities Net investment in capital assets Restricted Unrestricted Total business -type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position Fiscal Year 2014 2015 2016 2017 2018 1,226,325 58,190,535 61,257,124 60,223,775 51,604,150 $ 90,528,453 $ 91,385,492 $101,724,105 $108,576,334 $113,719,602 899,558 57,774,179 60,999,381 60,223,775 51,604,150 85,864,467 13,564,091 (9,004,273) (10,585,809) (13,117,584) $177,292,478 $162,723,762 $153,719,213 $158,214,300 $152,206,168 $ 27,996,595 $ 31,628,811 $ 33,549,044 $ 35,249,434 $ 37,025,828 326,768 416,356 257,743 - - (1,578,435) (3,620,616) (4,431,920) (3,895,146) (2,045,079) $ 26,744,928 $ 28,424,551 $ 29,374,867 $ 31,354,288 $ 34,980,750 $118,525,048 $123,014,302 $135,273,150 $143,825,767 $150,745,430 1,226,325 58,190,535 61,257,124 60,223,775 51,604,150 84,286,032 9,943,475 (13,436,194) (14,480,955) (15,162,660) $ 204.037.405 S 191.148.313 S 183.094.080 S 189.568.588 S 187.186.919 Totals may not add due to rounding 189 Expenses Governmental activities: General government Public safety County roads Health and welfare Interest and fiscal charges Total governmental activities expenses Business -type activities: Solid waste Fair & expo center RV park Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public safety County roads Health and welfare Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Solid waste Fair & expo center RV park Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net (Expense)/Revenue Governmental activities Business -type activities Total primary government net expense Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2009 2010 2011 2012 2013 $ 28,379,251 $ 25,860,938 $ 23,520,870 $ 25,576,233 $ 25,997,251 47,493,147 50,033,277 53,944,031 56,696,103 57,806,152 17,478,873 14,701,828 18,600,706 16,436,367 16,139,486 23,203,391 23,831,929 28,828,892 30,416,145 31,682,855 3,311,808 3,401,395 3,275,788 2,716,110 2,485,174 119,866,470 117,829,367 128,170,287 131,840,958 134,110,918 8,414,867 7,335,596 7,347,661 7,801,912 8,122,538 4,152,893 3,710,074 3,819,399 3,876,575 3,392,264 312,882 322,179 343,898 338,003 339,145 12, 880,642 11,367,849 11,510,958 12,016,490 11, 853,947 $ 132,747,112 $ 129,197,216 $ 139,681,245 $ 143,857,448 $ 145,964,865 $ 15,510,269 $ 12,272,431 $ 11,744,342 $ 9,975,482 $ 11,827,132 3,665,436 7,508,624 7,434,816 6,317,924 8,876,636 12,822,399 13,118,125 13,808,489 15,917,719 14,730,662 1,146,444 1,018,990 1,747,716 2,062,633 2,243,963 30,390,518 29,127,520 32,195,732 33,630,072 31,233,012 1,780,050 9,209,437 765,663 232,363 86,514 65,315,116 72,255,127 67,696,758 68,136,193 68,997,919 6,639,633 6,362,100 6,665,487 6,506,366 6,793,369 1,912,771 1,536,329 1,992,262 1,963,398 1,761,108 89,005 115,126 162,049 154,633 165,096 54,405 85,765 39,271 86,306 49,790 8,695,814 8,099,320 8,859,069 8,710,703 8,769,363 $ 74,010,930 $ 80,354,447 $ 76,555,827 $ 76,846,896 $ 77,767,282 $ (54,551,354) $ (45,574,240) $ (60,473,529) $ (63,704,765) $ (65,112,999) (4,184,828) (3,268,529) (2,651,889) (3,305,787) (3,084,584) $ (58,736,182) $ (48,842,769) $ (63,125,418) $ (67,010,552) $ (68,197,583) Totals may not add due to rounding 190 Continued Expenses Governmental activities: General government Public safety County roads Health and welfare Interest and fiscal charges Total governmental activities expenses Business -type activities: Solid waste Fair & expo center RV park Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public safety County roads Health and welfare Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Solid waste Fair & expo center RV park Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net (Expense)/Revenue Governmental activities Business -type activities Total primary government net expense Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2014 2015 2016 2017 2018 $ 26,487,066 $ 25,448,635 $ 35,463,814 $ 30,011,545 $ 36,105,776 57,786,656 46,351,357 74,941,547 65,276,283 64,258,765 15,441,429 16,818,974 18,269,586 17,627,051 18,122,984 35,154,506 31,944,749 43,850,703 39,370,403 50,068,445 2,556,364 2,385,397 2,284,295 2,175,774 2,104,761 137,426,020 122,949,114 174,809,945 154,461,056 170,660,730 6,327,028 7,614,444 9,272,404 10,028,102 10,131,364 3,368,464 3,466,338 4,290,630 4,173,908 4,504,592 355,752 473,792 477,924 407,928 411,993 10,051,244 11,554,573 14,040,958 14,609,937 15,047,948 $ 147,477,264 $ 134,503,687 $ 188,850,903 $ 169,070,993 $ 185,708,679 $ 11,593,147 $ 14,463,863 $ 18,675,554 $ 16,435,374 $ 16,271,509 6,252,467 6,051,487 5,620,314 6,765,336 4,653,489 16,933,084 17,690,071 19,168,851 19,082,452 21,577,005 5,222,623 1,836,516 2,021,579 1,940,978 2,683,447 40,070,038 40,911,962 42,990,874 40,087,120 52,587,330 437,240 193,226 7,003,178 1,084,073 1,918,307 80,508,599 81,147,126 95,480,351 85,395,333 99,691,086 7,364,322 8,088,089 8,865,019 9,791,844 11,187,151 1,783,377 2,257,064 2,500,139 2,710,373 2,511,127 217,036 346,987 408,513 384,279 438,716 50,964 51,244 53,667 570,037 786,895 176,289 - - - - 9,591,988 10,743,3 83 11,827,338 13,456,534 14,923, 889 $ 90,100,587 $ 91,890,509 $ 107,307,688 $ 98,851,866 $ 114,614,975 $ (56,917,421) $ (41,801,988) $ (79,329,594) $ (69,065,723) $ (70,969,644) (459,255) (811,190) (2,213,620) (1,153,403) (124,060) $ (57,376,677) $ (42,613,178) $ (81,543,214) $ (70,219,127) $ (71,093,704) Totals may not add due to rounding 191 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2009 2010 2011 2012 2013 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, levied for general purpose $ 31,833,253 $ 33,441,245 $ 33,663,728 $ 33,682,238 $ 33,971,127 Property taxes, levied for sheriff services 22,976,966 24,094,637 23,666,633 23,551,915 24,285,093 Property taxes, levied for bonded debt 3,233,344 3,513,631 3,460,558 3,290,215 3,083,800 Transient room tax 3,212,173 2,959,337 3,151,974 3,357,365 3,656,126 Investment earnings 2,892,642 1,450,594 981,569 908,178 787,866 Transfers 248,733 212,883 (541,385) (447,771) (337,272) Loss on discontinued project - - - - (3,149,335) Total governmental activities 64,397,111 65,672,327 64,383,077 64,342,140 62,297,405 Business -type activities: Taxes Property taxes, levied for bonded debt 2,292,465 2,459,814 2,505,852 2,334,005 2,417,152 Investment earnings 511,814 170,817 71,876 60,134 47,562 Interfand equity transfer - - - - - Gain (loss) on sale of capital assets Special Items - Change in estimate (See Note 4.E.) - - - Transfers (248,733) (212,883) 541,385 447,771 337,272 Total business -type activities 2,555,546 2,417,748 3,119,113 2,841,910 2,801,986 Total primary government $ 66,952,657 $ 68,090,075 $ 67,502,190 $ 67,184,050 $ 65,099,391 Change in Net Position Governmental activities $ 9,845,757 $ 20,098,087 $ 3,909,548 $ 637,375 $ (2,815,594) Business -type activities (1,629,282) (850,781) 467,224 (463,877) (282,598) Total primary government $ 8,216,475 $ 19,247,306 $ 4,376,772 $ 173,498 $ (3,098,192) Totals may not add due to rounding 192 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2014 2015 2016 2017 2018 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, levied for general purpose $ 35,079,263 $ 31,747,666 $ 33,533,883 $ 35,363,260 $ 36,746,058 Property taxes, levied for sheriff services 25,284,848 26,640,494 29,508,509 31,128,138 33,028,808 Property taxes, levied for bonded debt 1,982,347 97,428 84,233 - - Transient room tax 4,340,159 5,248,199 6,068,098 6,408,477 7,011,471 Investment earnings 986,444 1,188,209 1,643,757 1,351,378 1,940,860 Transfers (539,938) (559,305) (513,431) (690,447) (631,722) Loss on discontinued project - - - - - Total governmental activities 67,133,123 64,362,692 70,325,049 73,560,806 78,095,475 Business -type activities: Taxes Property taxes, levied for bonded debt 2,086,179 2,623,509 2,555,831 2,368,281 - Investment earnings 52,612 71,740 94,674 74,094 129,837 Interfund equity transfer - - - - - Gain (loss) on sale of capital assets - Special Items - Change in estimate (See Note 4.E.) - - - - 3,369,910 Transfers 539,938 559,305 513,431 690,447 631,722 Total business -type activities 2,678,729 3,254,554 3,163,935 3,132,822 4,131,469 Total primary government $ 69,811,852 $ 67,617,246 $ 73,488,985 $ 76,693,630 $ 82,226,944 Change in Net Position Governmental activities $ 10,215,702 $ 22,560,704 $ (9,004,545) $ 4,495,083 $ 7,125,831 Business -type activities 2,219,473 2,443,364 950,315 1,979,419 4,007,409 Total primary government $ 12,435,175 $ 25,004,068 $ (8,054,229) $ 6,474,504 $ 11,133,241 Totals may not add due to rounding 193 Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year n/a - Not applicable In accordance with GASB 54, beginning in 2011 new classifications of fund balance for governmental funds are reported that comprise a heirarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Totals may not add due to rounding 194 2009 2010 2011 2012 2013 General Fund Unreserved $ 7,119,757 $ 9,933,612 $ $ S Nonspendable n/a n/a Committed n/a n/a Assigned n/a n/a 9,481,113 10,082,716 8,657,374 Unassigned n/a n/a 4,623,757 5,244,633 6,836,112 Total General Fund $ 7,119,757 $ 9,933,612 $ 14,104,870 $ 15,327,349 $ 15,493,486 All Other Governmental Funds Reserved/Nonspendable $ 871,486 $ 806,696 $ 888,106 $ 894,228 $ 1,272,249 Unreserved, reported in: Special revenue funds 49,541,406 58,071,242 - - - Capital projects funds 7,228,678 958,911 - - - Debt service funds 959,147 1,101,183 - - - Total Unreserved 57,729,231 60,131,336 - - - Restricted, reported in: Special revenue funds n/a n/a 36,777,325 42,713,782 52,491,478 Capital projects funds n/a n/a 1,251,643 1,048,534 - Debt service funds n/a n/a 661,359 585,900 476,186 Total Restricted 38,690,327 44,348,216 52,967,664 Committed, reported in: Special revenue funds n/a n/a 13,396,391 11,821,006 10,372,114 Capital projects funds n/a n/a 122,361 122,361 - Debt service funds n/a n/a - - 579,897 Total Committed 13,518,752 11,943,367 10,952,011 Assigned, reported in: Special revenue funds n/a n/a 6,236,570 5,903,050 4,170,144 Capital projects funds n/a n/a 174,647 740,173 759,229 Debt service funds n/a n/a 839,529 752,599 - Total Assigned 7,250,746 7,395,822 4,929,373 Unassigned, reported in: Capital projects funds n/a n/a (3,223,574) (3,989,721) (2,057,525) Total Unassigned - - (3,223,574) (3,989,721) (2,057,525) Total all other governmental funds $ 58,600,717 $ 60,938,032 $ 57,124,357 $ 60,591,912 $ 68,063,772 n/a - Not applicable In accordance with GASB 54, beginning in 2011 new classifications of fund balance for governmental funds are reported that comprise a heirarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Totals may not add due to rounding 194 General Fund Unreserved Nonspendable Committed Assigned Unassigned Total General Fund All Other Governmental Funds Reserved/Nonspendable Unreserved, reported in: Special revenue funds Capital projects funds Debt service funds Total Unreserved Restricted, reported in: Special revenue funds Capital projects funds Debt service funds Total Restricted Committed, reported in: Special revenue funds Capital projects funds Debt service funds Total Committed Assigned, reported in: Special revenue funds Capital projects funds Debt service funds Total Assigned Unassigned, reported in: Capital projects funds Total Unassigned Total all other governmental funds Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2014 2015 2016 2017 2018 S $ $ - $ $ 7,631 516,523 498,337 469,020 445,442 64,717,802 1,782,674 3,944,405 7,505,074 10,670,276 8,031,837 6,222,698 6,311,144 5,369,619 6,598,027 7,649,760 9,183,941 10,620,333 10,483,020 11,461,766 $ 15,681,597 $ 17,705,836 $ 21,374,220 $ 23,826,733 $ 29,175,511 $ 1,418,998 $ 2,542,621 $ 2,663,703 $ 2,859,789 $ 1,786,302 64,710,171 62,650,077 71,847,628 65,125,286 67,996,477 - - - 7,809,685 9,542,598 7,631 10,970 - - - 64,717,802 62,661,047 71,847,628 72,934,971 77,539,075 13,456,033 13,566,455 11,491,305 13,469,571 14,715,465 606,292 394,405 - - - 480,416 482,736 472,561 558,106 661,151 14,542,741 14,443,596 11,963,865 14,027,677 15,376,615 (1,791,930) (1,791,930) - - - - $ 78,887,611 $ 79,647,264 $ 86,475,197 $ 89,822,437 $ 94,701,992 In accordance with GASB 54, beginning in 2011 new classifications of fund balance for governmental funds are reported that comprise a heirarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Totals may not add due to rounding 195 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds- Last Ten Fiscal Years (modified accrual basis of accounting) Expenditures General government 24,916,432 22,473,173 Fiscal Year 22,606,034 23,036,320 Public safety 2009 2010 2011 2012 2013 Revenues 17,050,086 15,868,512 16,730,401 16,638,310 13,832,024 Taxes $ 59,765,686 $ 63,729,316 $ 63,806,103 $ 64,546,883 $ 66,038,130 Licenses and permits 452,980 549,013 689,142 778,227 900,224 Fines, forfeitures and penalties 1,648,134 1,645,313 1,596,621 1,417,245 1,355,143 Special assessments 474,559 257,916 193,605 161,466 176,518 Interest and rents 4,000,663 2,360,035 2,595,846 2,559,272 2,463,869 Intergovernmental 77,123,068 77,287,814 82,326,719 85,663,964 83,911,882 Charges for services 16,999,531 17,615,561 17,515,802 16,159,689 19,108,543 Other 357,166 925,947 505,740 439,269 832,505 Total revenues 160,821,787 164,370,915 169,229,578 171,726,015 174,786,814 Expenditures General government 24,916,432 22,473,173 22,614,321 22,606,034 23,036,320 Public safety 74,219,306 74,626,653 78,159,464 81,610,756 83,718,648 County roads 17,050,086 15,868,512 16,730,401 16,638,310 13,832,024 Health and welfare 28,199,244 25,840,307 31,725,577 32,905,053 35,248,861 Education 1,137,873 1,078,769 979,980 687,511 684,632 Debt service - - - (21,520,747) (3,023,549) Principal 4,523,312 4,595,659 5,678,728 5,296,870 5,720,036 Interest 3,090,228 3,296,705 3,157,964 2,631,321 2,386,628 Trustee fees 3,066 2,455 3,218 2,950 2,610 Debt issuance costs 237,657 49,471 - 372,216 23,429 Capital outlay 11,559,996 12,596,751 8,245,442 3,692,419 2,465,339 Total expenditures 164,937,200 160,428,455 167,295,094 166,443,440 167,118,527 Excess of revenues over (under) expenditures (4,115,413) 3,942,460 1,934,484 5,282,575 7,668,287 Other Financing Sources (Uses) Transfers in 23,231,232 19,839,328 12,313,816 10,701,765 13,191,583 Transfers out (23,297,732) (20,008,290) (14,012,126) (11,673,036) (13,625,455) Debt issuance 13,352,250 1,320,000 40,000 - Bond premium/discount 46,277 (4,838) - - 49,109 Bonds issued - 21,893,362 3,000,000 Payments to escrow agent - - - (21,520,747) (3,023,549) Increase/(decrease)in inventory 45,868 62,510 81,410 6,122 378,021 Total other financing sources (uses) 13,377,895 1,208,710 (1,576,900) (592,534) (30,291) Net change in fund balances $ 9,262,482 $ 5,151,170 $ 357,584 $ 4,690,041 $ 7,637,996 Debt service as a percentage of noncapital expenditures 5.0% 5.8% 5.6% 5.0% 4.9% Totals may not add due to rounding 196 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds- Last Ten Fiscal Years (modified accrual basis of accounting) Other Financing Sources (Uses) Transfers in 11,233,103 14,542,905 Fiscal Year 23,284,540 20,339,319 Transfers out 2014 2015 2016 2017 2018 Revenues - (13,668) Taxes $ 67,157,527 $ 64,043,653 $ 69,254,662 $ 72,725,317 $ 76,915,410 Licenses and permits 1,285,225 1,395,229 1,513,320 1,804,402 1,658,904 Fines, forfeitures and penalties 1,563,725 1,713,279 1,666,944 1,600,649 1,466,676 Special assessments 125,999 116,946 85,439 70,655 66,830 Interest and rents 2,616,264 2,801,165 3,191,867 3,042,808 3,555,878 Intergovernmental 95,464,165 97,854,728 102,449,003 92,313,282 105,988,087 Charges for services 21,137,727 24,577,248 16,657,205 18,295,208 19,115,410 Other 681,354 1,867,249 1,268,489 1,073,927 875,507 Total revenues 190,031,985 194,369,496 196,086,929 190,926,249 209,642,702 Expenditures General government 24,185,783 25,028,450 26,813,546 26,361,777 29,061,175 Public safety 87,910,026 89,007,502 91,353,457 86,897,612 93,072,384 County roads 14,252,333 15,038,232 15,351,922 16,195,155 14,241,574 Health and welfare 39,671,077 46,096,095 36,778,966 38,856,976 46,636,552 Education 685,916 656,218 610,125 263,106 - Debt service Principal 5,387,017 3,270,413 3,015,338 2,895,157 3,013,331 Interest 2,438,429 2,354,101 2,259,334 2,151,095 2,079,976 Trustee fees 27,810 - - 2,500 2,375 Debt issuance costs 219,610 - - - - Capital outlay 12,563,515 6,906,759 7,675,279 10,376,297 7,506,798 Total expenditures 187,341,516 188,357,770 183,857,968 183,999,674 195,614,166 Excess of revenues over (under) expenditures 2,690,469 6,011,726 12,228,961 6,926,574 14,028,536 Other Financing Sources (Uses) Transfers in 11,233,103 14,542,905 10,564,827 23,284,540 20,339,319 Transfers out (11,831,461) (15,350,629) (12,403,247) (24,593,177) (21,240,045) Debt issuance - (13,668) Bond premium/discount 218,092 - Bonds issued 8,555,000 1,925,295 Payments to escrow agent - - (1,904,328) - Increase/(decrease) in inventory 146,749 242,641 98,478 181,815 (155,630) Total other financing sources (uses) 8,321,483 (565,083) (1,732,643) (1,126,822) (1,056,356) Net change in fund balances $ 11,011,952 $ 5,446,643 $ 10,496,318 $ 5,799,752 $ 12,972,180 Debt service as a percentage of noncapital expenditures 4.5% 3.1% 3.0% 2.9% 2.7% Totals may not add due to rounding 197 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Real Property Personal Property Manufactured Homes Fiscal Year Estimated Estimated Estimated Ended June 30, Assessed Value Actual Value Assessed Value Actual Value Assessed Value Actual Value 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 2017 20,943,309 31,302,357 451,004 451,007 65,759 79,422 2018 22,107,667 35,571,219 482,975 482,975 74,665 103,958 Sources: Deschutes County Assessor's Department and Deschutes County Tax Office (1) includes tax-exempt property Totals may not add due to rounding 198 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Public Utilities I Exemptions I Total Range of Total Estimated Taxable Estimated Direct Tax Assessed Value Actual Value Assessed Value Assessed Value Actual Value Rates Paid Assessed Value(1) as a Percentage of Estimated Actual Value $ 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% 560,616 582,833 45,078 21,975,610 32,415,618 2.7311-6.0411 67.932% 600,475 628,510 47,457 23,218,325 36,786,661 2.6125-6.0411 63.245% Totals may not add due to rounding 199 Deschutes County, Oregon Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) County direct rates Rates levied to all taxable County properties: General Jail Bond Fairgrounds Bond Sheriff (Countywide) County Extension/41-1 CSD 911 CSD 911 Local Option _ County districts paid by all properties Rates levied to taxable rural County properties: Sheriff (County) Sheriff (Rural) Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) Certain County properties are subject to one of the following rates: Bend Library Bond Redmond Library Bond Sunriver Library Bond Paid by Black Butte properties only: Black Butte Ranch CSD Black Butte Ranch CSD Local Opt Paid by Sunriver properties only: Sunriver Service District _ Range of County Direct Rates Paid City and town rates Bend Redmond Sisters La Pine City of Bend Bond City of Bend Local Option Bend Urban Renewal Special Levy City of Redmond Bond Library district rates Fire district rates Parks and recreation district rates School district rates Road district rates Other special district rates Fiscal Year Taxes are Payable 2009 2010 2011 2012 2013 1.2783 1.2783 1.2783 1.2783 1.2783 0.1335 0.1395 0.1358 0.1324 0.1291 0.1410 0.1441 0.1464 0.1369 0.1405 0.9500 0.9500 0.9200 0.9200 0.9500 0.0224 0.0224 0.0224 0.0224 0.0224 0.1618 0.1618 0.1618 0.1618 0.1618 0.2300 0.2300 0.2300 0.2300 0.2300 2.9170 2.9261 2.8947 2.8818 2.9121 1.4000 1.4000 1.4000 1.4000 1.4000 0.0852 0.0868 0.0880 0.0836 0.0791 0.0567 0.0572 0.0558 0.0498 - 0.0590 0.0598 0.0551 0.0550 0.0489 1.0499 1.0499 1.0499 1.0499 1.0499 0.4000 0.4000 0.5500 0.5500 0.5500 3.1300 3.2200 3.3100 3.3100 3.3100 2.9170 - 6.1060 2.7805 - 6.2059 2.8947-6.2598 2.8818-6.2468 2.9121-6.2710 2.8035 2.8035 2.8035 2.8035 2.8035 6.1643 6.1643 6.1643 4.4101 4.4101 2.6417 2.6417 2.6417 2.6417 2.6417 1.9800 1.9800 1.8000 1.8000 1.9000 - - - 0.2462 0.2660 0.2700 0.2666 0.2791 - - 0.1020 0.1168 0.0947 0.0831 0.0870 0.5500 0.5500 0.5500 0.5500 0.5500 1.0924 - 3.0742 1.0924 - 3.0705 1.0924-3.0744 1.0924-3.0744 1.0924-3.0522 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 6.8851 - 7.2424 6.5907 - 8.4371 6.4923-8.1206 6.6649-8.4065 6.6692-8.4108 0.7831 - 3.6500 0.6600 - 3.6500 0.3248-3.6500 0.5180-2.7331 0.4377-3.6500 0.3848 0.3809 0.3793 0.3776 0.2895 Sources: Dcschutcs County Assessor's Office and Deschutes County Finance Department Totals may not add due to rounding 200 Deschutes County, Oregon Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years (rate per $1,000 of assessed value) County direct rates Rates levied to all taxable County properties: General Jail Bond Fairgrounds Bond Sheriff (Countywide) County Extension/41-1 CSD 911 CSD 911 Local Option _ County districts paid by all properties Rates levied to taxable rural County properties: Sheriff (County) Sheriff (Rural) Rates levied to incorporated and CSD tax codes: Sheriff (Incorporated) Certain County properties are subject to one of the following rates: Bend Library Bond Redmond Library Bond Sunriver Library Bond Paid by Black Butte properties only: Black Butte Ranch CSD Black Butte Ranch CSD Local Opt Paid by Sunriver properties only: Sunriver Service District _ Range of County Direct Rates Paid City and town rates Bend Redmond Sisters La Pine City of Bend Bond City of Bend Local Option Bend Urban Renewal Special Levy City of Redmond Bond Library district rates Fire district rates Parks and recreation district rates School district rates Road district rates Other special district rates Fiscal Year Taxes are Payable 2014 2015 2016 2017 2018 1.2783 1.2783 1.2783 1.2783 1.2483 0.0673 - - - - 0.1121 0.1377 0.1273 0.1186 - 0.9500 0.9500 1.0200 1.0200 1.0200 0.0224 0.0224 0.0224 0.0224 0.0224 0.1618 0.1618 0.1618 0.1618 0.3618 0.2240 0.2000 0.2000 0.2000 - 2.8159 2.7502 2.8098 2.8011 2.6525 1.4000 1.4000 1.4000 1.4000 1.4000 0.0723 2.8035 2.8035 2.8035 - 0.0475 0.5090 0.0438 - - 1.0499 1.0499 1.0499 1.0499 1.0499 0.5500 0.5500 0.5500 0.5500 0.5500 3.3100 3.3100 3.3100 3.3100 3.3100 2.8159-6.1734 2.7502-6.1111 2.8098-6.1198 2.8011-6.1111 2.6525-5.9625 2.8035 2.8035 2.8035 2.8035 2.8035 4.4101 4.4101 4.4101 4.4101 4.4101 2.6417 2.6417 2.6417 2.6417 2.6417 1.9300 1.9800 1.9800 1.9800 1.9800 0.2256 0.2120 0.2120 0.1895 0.1789 - 0.2000 0.2000 0.2000 0.2000 0.0886 0.0809 0.0809 0.0710 0.0547 0.5500 0.5500 0.5500 0.5500 0.5500 1.0924-3.0691 1.0924-3.0641 1.0924-3.0641 1.0924-2.7317 1.0924-2.7317 0.2200 - 1.6673 0.2200 - 1.6566 0.2200 - 1.4610 0.2200-1.4610 0.2200-1.4610 6.5526-8.4699 6.2181-8.4979 6.4033-8.4012 6.5893-8.4320 6.5893-8.4320 0.9005-3.6500 0.7831-3.0000 0.8140-3.0000 0.8140-3.0000 0.8140-3.0000 0.2895 0.2895 0.2895 0.2895 0.2895 Totals may not add due to rounding 201 Deschutes County, Oregon Principal Property Taxpayers - Current Fiscal and Nine Years Ago Taxuaver TDS Baja Broadband LLC (Prev Bend Cable) Pacificorp (PP&L) Cascade Natural Gas Corporation Gas Transmission Northwest Corporation Touchmark at Mount Bachelor Village LLC CVSC LLC Centurylink Property Tax (Prev Qwest) Suterra LLC Wal-Mart Stores Inc Deschutes Brewery Inc Pronghorn Investors LLC Sunriver Resort Limited Partnership Eagle Crest Inc TD Cascade Highlands LLC 2018 2009 Total $ 559,976,970 2.43% $ 456,209,575 2.69% Source: Deschutes County Assessor's Department Note: Ranking of Principal Taxpayers is based on property taxes assessed, not the taxable assessed value. Totals may not add due to rounding 202 Percentage of Percentage of Total County Total County Taxable Assessed Taxable Taxable Assessed Taxable Value Rank (1) Assessed Value Value Rank Assessed Value $ 101,039,000 1 0.44% $ - - - 89,971,000 2 0.39% 55,842,000 4 0.33% 62,806,000 3 0.27% 58,128,000 3 0.34% 66,247,200 4 0.29% 67,931,000 1 0.40% 47,174,240 5 0.20% 33,149,290 9 0.20% 41,801,350 6 0.18% 32,739,350 10 0.19% 43,292,900 7 0.19% 58,579,490 2 0.35% 42,236,510 8 0.18% - - - 31,404,750 9 0.14% - - 34,004,020 10 0.15% - - - - - 40,680,965 5 0.24% - 37,749,610 6 0.22% - 37,712,390 7 0.22% - 33,697,480 8 0.20% Total $ 559,976,970 2.43% $ 456,209,575 2.69% Source: Deschutes County Assessor's Department Note: Ranking of Principal Taxpayers is based on property taxes assessed, not the taxable assessed value. Totals may not add due to rounding 202 Deschutes County, Oregon Property Taxes, Levies and Collections - Last Ten Fiscal Years (dollars expressed in thousands) Collected within the Fiscal Year of the Levv Amount Collected Source: Deschutes County Finance Department (1) Net of discounts and adjustments. 52,961 55,871 56,104 55,921 57,176 58,195 61,220 64,747 67,895 69,013 Percentage of Lew Collections in Subsequent Years 93.996% $ 95.018% 95.870% 96.793% 97.557% 98.005% 98.349% 98.494% 98.461% 98.689% Totals may not add due to rounding 203 3,380 $ 2,925 2,413 1,848 1,425 1,175 947 792 665 Total Collections to Date Amount Collected Total Tax Levy Fiscal Year Ended for Fiscal Year June 30, (1) 58,517 99.993% 2009 $ 56,344 $ 2010 58,800 2011 58,521 2012 57,774 2013 58,607 2014 59,380 2015 62,247 2016 65,737 2017 68,956 2018 69,929 Amount Collected Source: Deschutes County Finance Department (1) Net of discounts and adjustments. 52,961 55,871 56,104 55,921 57,176 58,195 61,220 64,747 67,895 69,013 Percentage of Lew Collections in Subsequent Years 93.996% $ 95.018% 95.870% 96.793% 97.557% 98.005% 98.349% 98.494% 98.461% 98.689% Totals may not add due to rounding 203 3,380 $ 2,925 2,413 1,848 1,425 1,175 947 792 665 Total Collections to Date Amount Collected Percentage of Levy 56,341 99.995% 58,795 99.992% 58,517 99.993% 57,769 99.992% 58,601 99.989% 59,370 99.983% 62,166 99.870% 65,539 99.699% 68,561 99.426% 69,013 98.689% Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) (1) See page 211 for personal income and population data. n/a - Not available. Totals may not add due to rounding 204 Governmental Activities General Limited Full Faith Notes Fiscal Obligation Tax and Credit from Direct Year Bonds Bonds Obligations Borrowings Loans 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 38,387 1,926 - 2017 - 9,899 35,985 1,726 - 2018 - 9,522 32,828 1,525 - (1) See page 211 for personal income and population data. n/a - Not available. Totals may not add due to rounding 204 Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) 2009 Business -Type Activities 453 108,003 General Full Faith Notes Total Percentage Fiscal Obligation and Credit from Direct Primary of Personal Per Year Bonds Obligations Borrowings Loans Government Income (1) Capita (1) 2009 17,630 17,039 - 453 108,003 1.89% 654.24 2010 15,992 16,432 - 435 102,354 1.78% 686.99 2011 14,203 15,804 - 417 94,175 1.58% 648.20 2012 12,260 15,423 - 399 87,538 1.40% 592.76 2013 9,941 14,695 - 380 78,600 1.20% 546.63 2014 7,669 13,960 - 362 78,887 1.11% 483.62 2015 5,247 13,200 - 343 72,373 0.93% 474.08 2016 2,595 4,666 8,127 - 65,936 0.76% 423.88 2017 - 4,451 7,420 - 59,481 n/a 373.29 2018 - 4,092 6,699 - 54,666 n/a 325.16 Totals may not add due to rounding 205 Fiscal Year Deschutes County, Oregon Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years (dollars in thousands, except per capita) Less: Amounts General Available in Obligation Debt Service Bonds (1) Fund (2) Total Percentage of Estimated Actual Taxable Value of Property (3) Per Capita (4) 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 2017 - - - 0.00% - 2018 - - - 0.00% - 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 196. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 209. Totals may not add due to rounding 206 Deschutes County, Oregon Direct and Overlapping Governmental Activities Debt June 30, 2018 (dollars in thousands) Governmental Unit Debt repaid with property taxes Amount Estimated Applicable to Debt Percentage Primary Outstanding Applicable Government Alfalfa RFPD $ 363 94.1300% $ 342 Bend Metro Park & Rec District 28,014 100.0000% 28,014 Central Oregon Community College 53,230 84.8800% 45,182 Central Oregon Regional Housing Authority 4,319 100.0000% 4,319 City of Bend 45,163 100.0000% 45,163 City of La Pine 395 100.0000% 395 City of Redmond 7,256 100.0000% 7,256 Cloverdale RFPD 2,420 100.0000% 2,420 Crook County School District 49,210 1.0400% 512 Crooked River Ranch RFPD 2,405 8.6900% 209 Deschutes County RFPD 2 (Bend) 1,075 100.0000% 1,075 Deschutes County School District 1 (Bend -La Pine) 391,441 100.0000% 391,441 Deschutes County School District 2 (Redmond) 133,877 94.0000% 125,844 Deschutes County School District 6 (Sisters) 21,137 99.9800% 21,133 HFA Deschutes County 111,750 100.0000% 111,750 High Desert ESD 3,489 91.8700% 3,205 La Pine Parks & Recreation District 390 100.0000% 390 Redmond Area Park & Recreation District 994 100.0000% 994 Redmond Fire & Rescue 1,411 99.9400% 1,410 Sisters RFPD (Camp Sherman) 1,720 88.7700% 1,527 Terrebonne Water District 500 100.0000% 500 Subtotal, overlapping debt 793,081 Deschutes County direct debt 43,875 Total direct and overlapping debt $ 836,956 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 207 Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Legal Debt Margin Calculation for Fiscal Year 2018 Estimated Actual Value $ 36,786,661 Estimated Actual Value $ 36,786,661 Debt limit (2% of estimated actual value) 735,733 Debt limit (1% of estimated actual value) 2 367,867 Debt applicable to limit: Debt applicable to limit: General obligation bonds - Limited tax bonds 42,350 Total net debt applicable to limit - Less: Amount set aside for repayment of debt - Total net debt applicable to limit 42,350 Legal debt margin $ 735,733 Legal debt margin $ 325,517 Fiscal Year 2009 2010 2011 2012 2013 Debt Limit (2%)' $ 753,830 $ 663,510 $ 470,544 $ 431,674 $ 420,044 Total net debt applicable to limit 31,345 27,141 22,618 17,765 12,260 Legal debt margin $ 722,485 $ 636,369 $ 447,926 $ 413,909 $ 407,784 Total net debt applicable to the limit as a percentage of debt limit 4.16% 4.09% 4.81% 4.12% 2.92% Debt Limit (1%) 2 $ 376,915 $ 331,755 $ 235,272 $ 215,837 $ 210,022 Total net debt applicable to limit 57,509 56,953 53,806 52,137 49,647 Legal debt margin $ 319,406 $ 274,802 $ 181,466 $ 163,700 $ 160,375 Total net debt applicable to the limit as a percentage of debt limit 15.26% 17.17% 22.87% 24.16% 23.64% ' ORS 287A.100 provides a debt limit on general obligation bonds of 2% of the real market value of all taxable property within the County's boundaries. This became effective January 1, 2008 superseding ORS 287.054. 2 ORS 287A.105 provides a debt limit on full faith and credit bonds of 1% of the real market value of all taxable property within the County's boundaries. This became effective January 1, 2008 superseding ORS 287.053. Totals may not add due to rounding 208 Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Fiscal Year 2014 2015 2016 2017 2018 $ 443,378 $ 507,239 $ 577,687 $ 648,312 $ 735,733 7,844 5,337 2,595 - - $ 435,534 $ 501,902 $ 575,092 $ 648,312 $ 735,733 1.77% 1.05% 0.45% 0.00% 0.00% $ 221,689 $ 253,619 $ 288,843 $ 324,156 $ 367,867 56,121 53,231 50,357 47,610 42,350 $ 165,568 $ 200,388 $ 238,486 $ 276,546 $ 325,517 25.32% 20.99% 17.43% 14.69% 11.51% Totals may not add due to rounding 209 Deschutes County, Oregon Pledged -Revenue Coverage - Last Ten Fiscal Years (dollars in thousands) 2015 2016 2017 2018 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 210 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 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 2017 2018 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 210 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, 2017, reflect county population estimates available as of April 2018. Median age figures for 2009-2018 are based on mid -year data tables. School enrollment is based on the census at the start of the 2017-18 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2018 is an average of January through June 2018. n/a - Not available. Totals may not add due to rounding 211 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 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 7,788,057 44,435 40.82 25,302 6.3% 2016 170,740 8,668,102 47,809 40.96 25,598 5.0% 2017 176,635 n/a n/a 41.13 26,446 4.1% 2018 182,930 n/a n/a 41.33 26,868 4.2% 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, 2017, reflect county population estimates available as of April 2018. Median age figures for 2009-2018 are based on mid -year data tables. School enrollment is based on the census at the start of the 2017-18 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2018 is an average of January through June 2018. n/a - Not available. Totals may not add due to rounding 211 Deschutes County, Oregon Principal Employers - Current Year and Nine Years Ago Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not add due to rounding 212 2018 2009 Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment St. Charles Medical Center 3,938 1 4.55% 2,835 1 4.17% Bend/La Pine School District 2,133 2 2.47% 1,783 2 2.62% Sunriver Resort 1,100 3 1.27% 850 4 1.25% Deschutes County 1,095 4 1.27% 1,039 3 1.53% Central Oregon Community College 999 5 1.15% Redmond School District 851 6 0.98% 806 6 1.19% Mt. Bachelor 840 7 0.97% 750 8 1.10% Safeway 729 8 0.84% City of Bend 661 9 0.76% Fred Meyer 628 10 0.73% T -Mobile 850 5 1.25% Les Schwab Tire Centers 800 7 1.18% Wal-Mart 700 9 1.03% TRG Customer Solutions (formerly iSKY) 650 10 0.96% Total Employees of Principal Employers 12,974 15.00% 11,063 16.28% Total County Nonfarm Employment 86,510 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not add due to rounding 212 Deschutes County, Oregon Full -Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Program General government Executive 9.65 9.65 General services 9.75 9.75 Judicial 50.45 50.45 Financial 41.48 40.48 Assessment 36.25 32.15 Community development 24.40 25.05 Building services 24.85 22.95 Information technology 15.58 16.90 Other 7.09 6.67 Public protection 31.00 33.00 Law enforcement 118.50 118.50 Corrections 206.30 199.10 Protective inspection 23.60 23.05 Other Protection 40.50 40.50 Public works 23.80 23.80 Streets & highways 62.50 61.50 Sanitation 26.00 26.00 Health & welfare 16.30 16.00 Health Services 167.23 170.98 Recreation & culture 5.62 5.27 Fair & expo center 13.00 13.00 Other 118.75 118.15 Conservation 3.00 2.00 Economic development 1.10 1.10 Total 871.48 860.03 Source: Deschutes County Finance Department Above amounts are for Primary Government 9.65 9.65 9.40 9.40 9.75 9.75 9.75 9.75 49.45 50.45 50.45 51.45 52.05 54.05 54.55 57.30 39.98 39.23 39.73 38.48 38.53 39.53 39.73 39.73 31.25 32.00 31.75 31.00 31.00 33.00 33.00 34.26 19.50 17.50 17.60 17.30 19.30 20.30 25.10 27.50 22.95 22.95 23.45 23.80 23.80 25.20 25.00 25.00 16.90 17.00 16.70 16.70 16.30 16.00 15.70 15.70 6.67 6.57 5.62 5.27 4.47 4.32 4.62 4.62 118.75 118.15 114.46 113.75 113.75 113.75 113.75 115.25 194.60 193.20 190.09 185.00 188.60 199.10 200.10 202.00 13.00 11.10 11.00 12.70 14.70 15.70 19.90 25.50 40.50 41.50 43.50 46.50 52.50 57.50 59.00 60.00 60.50 60.50 56.50 52.75 52.75 53.50 54.00 54.00 22.00 22.00 22.00 22.50 22.50 23.50 23.50 24.50 196.25 214.05 218.80 245.90 248.00 265.25 303.85 313.45 13.00 11.00 10.00 10.00 11.00 11.00 12.00 12.00 2.00 2.00 3.00 3.00 2.00 0.00 0.00 0.00 1.10 1.10 1.10 1.10 0.00 0.00 0.00 0.00 858.05 869.95 865.15 886.60 901.00 941.45 993.55 1020.56 Totals may not add due to rounding 213 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years 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 Fiscal Year 2009 2010 2011 2012 2013 176 109 104 127 218 797 636 613 643 811 1,542 1,592 1,375 1,334 1,421 4,811 3,566 2,504 2,517 2,261 6,842 5,091 4,727 4,317 1,906 35,243 33,315 32,661 33,409 33,331 14,744 12,856 10,202 10,507 14,125 253,418 207,515 192,657 177,113 185,692 3,152 2,485 2,257 2,243 2,338 75,825 65,116 75,365 62,083 72,941 23.53 29.11 6.26 16.10 2.50 59,793 57,978 54,395 59,697 58,673 251,675 242,851 241,785 249,032 246,458 20,820 19,980 19,597 21,048 21,541 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 214 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years 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 Fiscal Year 2014 2015 2016 2017 2018 327 355 440 555 549 988 1,142 1,309 1,427 1,594 1,451 1,545 1,568 1,797 1,791 2,462 2,189 2,104 2,159 2,412 1,570 1,883 1,547 1,159 908 34,187 35,664 34,535 35,285 34,893 14,840 14,698 10,533 12,608 12,539 185,788 193,779 203,896 226,325 240,844 2,320 2,385 2,451 2,591 2,727 72,178 74,097 72,940 80,234 79,757 8.20 7.60 14.57 8.07 5.28 59,886 60,460 62,181 64,158 64,047 249,217 250,369 252,333 256,923 250,834 22,398 23,655 25,308 27,426 26,894 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 215 Deschutes County, Oregon Capital Assets Statistics by Functiow?rogram - Last Ten Fiscal Years Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Proeram Public Safety Stations 4 4 4 4 Adult correctional facilities 2 2 2 2 Special services complex 1 1 I 1 Road 1 1 927 927 Streets (miles) 927 927 927 927 Streetlights 4 4 4 4 Flashing lights 5 5 5 5 Signals 3 3 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriffs Office Totals may not add due to rounding 216 4 4 4 4 4 4 2 2 2 2 2 2 1 1 1 1 1 1 927 927 927 927 927 931 4 4 4 4 32 32 5 5 5 4 5 5 3 3 3 3 3 3 Audit Comments and Disclosures Required by State Regulations June 30, 2018 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. OAK EideBailly. CPAs & BUSINESS ADVISORS Independent Auditor's Report Required by Oregon State Regulations To the 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, 2018, and have issued our report thereon dated November 2, 2018. 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 and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. Compliance As part of obtaining reasonable assurance about whether the County'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 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on the 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: 219 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE Instance 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 Independtly 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 219 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE OAR 162-010-0240 Public Fund Deposits 162-010-0250 Indebtedness 162-010-0260 Budget 162-010-0270 Insurance and Fidelity Bonds Section 162-010-0280 Programs Funded from Outside Sources 162-010-0295 Highway Funds 162-010-0300 Investments 162-010-0310 Public Contracts and Purchasing 162-010-0315 State School Fund 162-010-0316 Public charter Schools 162-010-0320 Other Comments and Disclosures 162-010-0330 Extensions of Time to Deliver Audit Reports Instance of Non - Compliance Identified None Noted None Noted None Noted None Noted None Noted None Noted None Noted None Noted Not Applicable Not Applicable Not Applicable 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 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. OAR 162-010-0230 Internal Control In planning and performing our audit, we consider the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the 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. 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. 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. We consider the following deficiency in the County's internal control, as described in the 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 be a material weakness: 2018-A — Correction of an Error in a Prior Period 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. f► -Mil 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. For Eide Bailly LLP Boise, Idaho November 2, 2018 221 EideBailly. CPAs & BUSINESS ADVISORS Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Deschutes County 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, 2018, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated November 2, 2018. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Deschutes 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 Deschutes County's internal control. Accordingly, we do not express an opinion on the effectiveness of Deschutes County's internal control. 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 and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and questioned costs we identified a certain deficiency in internal control that we consider to be material weaknesses. 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. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2018-A to be considered a material weakness. 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. Compliance and Other Matters As part of obtaining reasonable assurance about whether Deschutes 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. 222 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE Entity's Response to Findings The County's response to the finding identified in our audit is described in the schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. 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 Government Auditing Standards in considering the County's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. A-�, ./, G r° Boise, Idaho November 2, 2018 P -M ES Single Audit Compliance June 30, 2018 Deschutes County, Oregon EideBailly. CPAs & BUSINESS ADVISORS Independent Auditor's Report on Compliance for the Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance To the Deschutes County 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 of the County's major federal program for the year ended June 30, 2018. The County's major federal program is 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 the County's major federal program 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 the major federal program. However, our audit does not provide a legal determination of the County's compliance. Opinion on the Major Federal Program In our opinion, the County has complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major Federal program for the year ended June 30, 2018. 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 the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the 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. 224 What inspires you, inspires us. I eidebailly.com 877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE 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 a 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. .� G r° Boise, Idaho November 2, 2018 f►•�►d.� Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2018 See notes to schedule of expenditures of federal awards 226 Totals may not add due to rounding Accrued or Accrued or Federal Program or (Deferred) (Deferred) CFDA Award or Pass- Award Revenues Revenues Federal Grantor / Pass Through Grantor / Program Title Number Through Number Amount 7/1/17 Receipts Expenditures 7/1/18 U.S. Department of Agriculture Direct Programs Forest Service Cooperative Forestry Assistance-Whychus Creek and 15 -DG -11062765 - Canyon Fuels Reduction Project 10.664 727 $ 88,625 $ 10,921 $ 10,921 $ 7,972 $ 7,972 Cooperative Forestry Assistance -Deschutes County 10.664 16 -DG -11062765- 102,951 1,327 16,787 43,105 27,645 Schools and Roads -Public Education and Outreach 14 -DG -11060120 - for Noxious Weed Control 10.665 041 23,750 3,033 3,033 - - Schools and Roads -Public Education and Outreach 16 -DG -11060120 - for Noxious Weed Control 10.665 034 14,250 1,173 3,157 4,396 2,412 Pass Through Programs State Department of Education School Breakfast Program 10.553 0904001 7,269 1,353 8,622 7,269 - National Lunch School Program 10.555 0904001 15,107 2,487 16,969 14,482 State Administrative Expense Reallocation 10.560 0904001 78 42 42 - - Oregon Health Authority Special Supplemental Nutrition Program for Women, Infants and Children 10.557 280559/280664 654,769 (78,864) 504,335 654,769 71,570 Supplemental Program for WIC Business Operations for iPad and Breastfeeding Texting Support 10.578 280705 - 799 799 - - Watershed Research and Training Center Fire Adapted Communities Learning Network 10.664 194_2017_302 25,256 - 25,256 25,256 State Department of Administrative Services Schools and Roads: Grants to States Title 10.665 None 1,177,313 1,177,313 1,177,313 Title III 10.665 None - (271,056) 96,936 104,941 (263,051) Total Department of Agriculture 2,039,503 U.S. Department of the Interior Pass Through Programs State Department of Administrative Services Non -Sale Disposals of Mineral Material 15.214 None 38,390 - 38,390 38,390 Distribution of Receipts to State and Local Governments 15.227 None 5,660 (40,361) 5,660 - (46,021) State Historic Preservation Office Historic Preservation Fund Grants 15.904 OR -17-06 12,500 703 - 10,282 10,985 Total Department of the Interior 48,672 U.S. Department of Justice Direct Programs Violence Against Women Office Justice Systems Response to Families 16.021 2017 -FJ -AX -0007 547,532 - 76,003 109,945 33,942 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 2014 -WE -AX -0055 299,820 35,558 38,166 2,608 - Pass Through Programs State Department of Justice Crime Victim Assistance 16.575 2015-DAVAP-00031 263,084 36,281 72,919 36,638 Crime Victim Assistance 16.575 2016-DAVAP-00089 61,354 7,626 12,693 5,067 - Crime Victim Assistance 16.575 2017-DAVAP-00015 400,465 - 100,322 149,737 49,415 Total Department of Justice 303,995 See notes to schedule of expenditures of federal awards 226 Totals may not add due to rounding Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2018 Federal Grantor / Pass Through Grantor / Program Title Federal CFDA Number Award or Pass- Through Number Program or Award Amount Accrued or (Deferred) Revenues 7/1/17 Receipts Expenditures Accrued or (Deferred) Revenues 7/1/18 U.S. Department of Transportation Pass Through Programs Oregon Department of Transportation Enhanced Mobility of Seniors and Individuals with Disabilities Individuals with Disabilities 20.513 30766 87,371 10,924 10,924 - - Enhanced Mobility of Seniors and Individuals with Individuals with Disabilities 20.513 32186 87,371 - 21,842 43,684 21,842 Total Department of Transportation 43,684 U.S. General Services Administration Pass Through Programs State Department of Administrative Services Disposal of Federal Surplus Real Property 39.002 None 363 363 363 Acquisition of Federal Surplus Real Property 39.003 None 225 225 225 Total General Services Administration 588 U.S. Environmental Protection Agency Pass Through Programs Oregon Health Authority State Public Water System Supervision 66.432 280557 33,791 2,816 33,792 33,791 2,815 Capitalization Grants for Drinking Water State Revolving Fund -RECOVERY 66.468 280655 30,036 5,006 30,037 30,036 5,005 Total Environmental Protection Agency 63,827 U.S. Department of Health and Human Services Direct Programs Substance Abuse and Mental Health Services Administration Alliance for Substance Abuse Prevention 93.276 5H79SP021072-02 625,000 34,582 92,882 113,486 55,186 Pass Through Programs Oregon Health Authority Public Health Emergency Preparedness 93.069 280619 107,873 12,640 94,307 99,846 18,179 ACA Personal Responsibility Education Program 93.092 280529 101,562 17,030 110,123 90,501 (2,592) Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 280549 358 8 358 358 8 Injury Prevention and Control Researcr and State and Community based 93.136 280512 79,583 - 79,583 68,521 (11,062) Projects for Assistance in Transition from Homelessness (PATH) 93.150 207001 96,890 - 96,890 92,594 (4,296) Family Planning: Services 93.217 280558 108,931 21,938 116,112 108,931 14,757 Youth Suicide Prevention/Intervention 93.243 250051/280649 250,000 - 80,755 117,790 37,035 National State Based Tobacco Programs 93.305 280511 309 - 309 309 - HIV Prevention Activities -Health Department Based 93.940 280501/280505 16,594 1,106 16,261 16,594 1,439 Assistance Programs for Chronic Disease Prevention and Control 93.945 280624 - 5,492 5,492 - - Block Grants for Community Mental Health Services 93.958 112001 318,507 - 405,771 405,771 - Block Grants for Prevention and Treatment of Substance Abuse 93.959 135001 375,514 - 278,983 303,743 24,760 Maternal and Child Health Services Block Grant to States 93.994 180514 98,560 7,688 98,020 98,560 8,228 Total Department of Health and Human Services 1,517,004 See notes to schedule of expenditures of federal awards 227 Totals may not add due to rounding Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2018 Oregon Military Department Central Oregon Wildfire Mitigation State Homeland Security Program Grant State Homeland Security Program Grant Total Department of Homeland Security Office of National Drug Control Policy Pass Through Programs State Department of Justice Organized Crime Drug Enforcement Task (OCDETF) High Intensity Drug Traffic Area (HIDTA) ' Total Office of National Drug Control Policy 97.047 EMS -2013 -PC -001 3,000,000 97.067 16-224 16,000 97.067 16-225 60,000 Accrued or (Deferred) Revenues Receipts Expenditures 7/1/18 37,808 4,871 - 70,923 98,961 28,038 49,209 410,443 420,019 58,785 11,200 16,000 4,800 - - 32,808 44,786 11,978 573,437 16.unknown None 5,923 10,674 4,751 - 95.001 None 17,146 495,833 479,265 578 484,016 $(53,333) $ 4,855,841 $ 5,074,726 $165,552 Total Federal Assistance ' Expenditures include funds utilized by a fiduciary organization in the amount of $476,854 See notes to schedule of expenditures of federal awards 228 Totals may not add due to rounding Accrued or Federal Program or (Deferred) CFDA Award or Pass- Award Revenues Federal Grantor / Pass Through Grantor / Program Title Number Through Number Amount 7/1/17 Department of Homeland Security Pass Through Programs Department of State Police Emergency Management Performance Grant 97.042 16-509 108,874 32,937 Emergency Management Performance Grant 97.042 17-509 106,070 - Oregon Military Department Central Oregon Wildfire Mitigation State Homeland Security Program Grant State Homeland Security Program Grant Total Department of Homeland Security Office of National Drug Control Policy Pass Through Programs State Department of Justice Organized Crime Drug Enforcement Task (OCDETF) High Intensity Drug Traffic Area (HIDTA) ' Total Office of National Drug Control Policy 97.047 EMS -2013 -PC -001 3,000,000 97.067 16-224 16,000 97.067 16-225 60,000 Accrued or (Deferred) Revenues Receipts Expenditures 7/1/18 37,808 4,871 - 70,923 98,961 28,038 49,209 410,443 420,019 58,785 11,200 16,000 4,800 - - 32,808 44,786 11,978 573,437 16.unknown None 5,923 10,674 4,751 - 95.001 None 17,146 495,833 479,265 578 484,016 $(53,333) $ 4,855,841 $ 5,074,726 $165,552 Total Federal Assistance ' Expenditures include funds utilized by a fiduciary organization in the amount of $476,854 See notes to schedule of expenditures of federal awards 228 Totals may not add due to rounding Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2018 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, 2018. 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. PJ►Q Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2018 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, 2018, beginning on page 231, 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, 2018, on page 233, is provided to disclose this information. 041111 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, 2018 Department / Program Title CFDA Number Expenditures U.S. Department of Agriculture School Breakfast Program 10.553 $ 7,269 National School Lunch Program 10.555 14,482 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 654,769 Cooperative Forestry Assistance 10.664 76,333 Schools and Roads - Grants to States 10.665 1,286,650 Total Department of Agriculture 2,039,503 U.S. Department of the Interior Non -Sale Disposals of Mineral Material 15.214 38,390 Historic Preservaton Fund Grants 15.904 10,282 Total Department of the Interior 48,673 U.S. Department of Justice Crime Victim Assistance 16.575 191,441 Justice Systems Response to Families 16.021 109,945 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 2,608 Total Department of Justice 303,994 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 39.002 363 Acquisition of Federal Surplus Real Property 39.003 225 Total General Services Administration 588 U.S. Environmental Protection Agency State Public Water System Supervision 66.432 33,791 Capitalization Grants for Drinking Water State Revolving Funds 66.468 30,036 Total Environmental Protection Agency 63,827 U.S. Department of Health and Human Services Public Health Emergency Preparedness 93.069 99,846 ACA Personal Responsibility Education Program 93.092 90,501 Project Grants and Cooperative Agreements 93.116 358 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.136 68,521 Projects for Assistance in Transition from Homelessness (PATH) 93.150 92,594 Family Planning Services 93.217 108,931 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 226,871 Alliance for Substance Abuse Prevention 93.276 113,486 National State Based Tobacco Programs 93.305 309 HIV Prevention Activities -Health Department Based 93.940 16,594 Block Grants for Community Mental Health Services 93.958 405,771 Block Grants for Prevention and Treatment of Substance Abuse 93.959 303,743 Maternal and Child Health Services Block Grant to the States 93.994 98,560 Total Health and Human Services 1,626,085 Totals may not add due to rounding 231 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, 2018 Department / Program Title Office of National Drug Control Policy Organized Crime Drug Enforcement Task (OCDETF) High Intensity Drug Trafficking Areas Program Total Office of National Drug Control Policy U.S. Department of Homeland Security Emergency Management Performance Grants Central Oregon Wildfire Mitigation State Homeland Security Program Grant Total Federal Assistance Totals may not add due to rounding 232 CFDA Number Expenditures 16.unknown 4,751 95.001 479,264 484,016 97.042 103,832 97.047 420,019 97.067 49,586 573,437 $ 5,183,807 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Cluster Fiscal Year Ended June 30, 2018 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 Totals may not add due to rounding 233 CFDA Number Expenditures 10.553 $ 7,269 10.555 14,482 21,751 10.665 1,286,650 1,286,650 20.513 43,684 43,684 66.468 225 225 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2018 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weaknesses identified? Yes 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 Uniform Guidance 2 CFR 200.516? No Identification of major programs tested: Name of Federal Program CFDA Number U. S. Department of Agriculture Forest Service Schools and Roads Cluster Schools and Roads — Grants to States 10.665 Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes 234 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2018 Section II - Financial Statement Findings 2018-A Corrections of Errors in a Prior Period Material Weakness Criteria During the current year the County identified an invoice that related to services performed in the prior year. In addition, the County identified grant funds received in advance that should have been shown as unearned revenue in the prior year. Condition GASB requires expenditures to be accrued in the period the service occurs. GASB requires any shortfall in expenditures from advance payments to be shown as unearned revenue until the period in which eligible expenditures are incurred or the end of the grant period at which time the shortfall would be returned to the granting agency. Cause Information was not identified and communicated in a timely manner. Effect The beginning fund balance for governmental funds and net position was misstated. Recommendation The County should work with departments to ensure proper communication of items that affect the financial statements in a timely manner. Views of Responsible Officials The County Finance staff will continue to work with department staff to develop flows of financial information to ensure that material items of expenditures and unearned revenues are identified so that they can be reported properly in the financial statements. Section III Federal Award Findings and Questioned Costs None Noted 235