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Home My WebLink AboutFY 2019 Comprehensive Annual Financial ReportDESCO]UTES COUNTY COMPREHENSIVE ANNUAL FINANCIAL REPORT DESCHUTES COUNTY, OREGON 4T AV Y v j f �� rf t• `-:.g, „"'fit` �' J FISCAL YEAR ENDED JUNE 30, 2019 a N`� 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, 2019 Prepared by: Deschutes County Finance Department Greg Munn Chief Finance Officer James Wood, CPA Accounting Manager ES Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2019 INTRODUCTORY SECTION Letterof Transmittal.................................................................................................................................................. l OrganizationalChart .............................................................................................................................................. 5 List of Elected and Appointed Officials................................................................................................................. 7 GFOA Certification of Achievement......................................................................................................................... 8 FINANCIAL SECTION IndependentAuditor's Report ........................................................................................................................................9 Management's Discussion and Analysis.................................................................................................................. 12 Basic Financial Statements Government -Wide Financial Statements Statementof Net Position................................................................................................................................ 24 Statementof Activities.................................................................................................................................... 26 Fund Financial Statements: Governmental Funds BalanceSheet.................................................................................................................................................. 27 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ......................... 29 Statement of Revenues, Expenditures, and Changes in Fund Balances.......................................................... 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities........................................................................................ 32 Fund Financial Statements: Proprietary Funds Statementof Net Position................................................................................................................................ 33 Statement of Revenues, Expenses, and Changes in Net Position.................................................................... 34 Statementof Cash Flows................................................................................................................................. 35 Fund Financial Statements: Fiduciary Funds Statement of Fiduciary Assets and Liabilities................................................................................................. 36 Notes to Financial Statements.............................................................................................................................. 37 Required Supplementary Information Schedule of the Proportionate Share of the Net Pension Liability (Asset)............................................................. 72 Schedule of Net Pension Liability (Asset) Employer Contributions..................................................................... 73 Schedule of Changes in the Total OPEB Liability................................................................................................ 74 Schedule of the Proportionate Share of the Net OPEB Liability (Asset).............................................................. 75 Schedule of Net OPEB Liability (Asset) Employer Contributions....................................................................... 76 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual GeneralFund................................................................................................................................................... 77 Deschutes County Sheriff's Office.................................................................................................................. 78 Countywide Law Enforcement District........................................................................................................... 79 RuralLaw Enforcement District...................................................................................................................... 80 RoadDepartment............................................................................................................................................. 81 HealthServices................................................................................................................................................ 82 PERSReserve.................................................................................................................................................. 83 Notes to Required Supplementary Information.................................................................................................... 84 Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2019 Other Supplementary Information Combining and Individual Fund Statements and Schedules — Major Funds Major Governmental Funds and Sub -Funds — General Fund Combining Balance Sheet GeneralFund........................................................................................................................................... 85 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances GeneralFund........................................................................................................................................... 88 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Sub -Funds of the General Fund EconomicDevelopment..................................................................................................................... 91 CourtTechnology Reserve................................................................................................................. 92 Assessor, Clerk and Tax Reserve....................................................................................................... 93 HumaneSociety of Redmond............................................................................................................. 94 ProjectDevelopment Fund................................................................................................................. 95 GeneralCounty Projects..................................................................................................................... 96 GeneralCapital Reserve..................................................................................................................... 97 CommunityJustice — Juvenile............................................................................................................ 98 CodeAbatement................................................................................................................................. 99 Vehicle Maintenance and Replacement........................................................................................... 100 Major Governmental Funds - Capital Project Funds Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Road Capital Improvement Plan.......................................................................................................... 101 Major Proprietary Funds - Enterprise Funds Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual SolidWaste.......................................................................................................................................... 102 Fairand Expo Center........................................................................................................................... 103 RVPark............................................................................................................................................... 104 Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2019 Combining and Individual Fund Statements and Schedules — Nonmajor Funds Nonmaj or Governmental Funds and Sub -Funds CombiningBalance Sheet.......................................................................................................................... 105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 106 Nonmajor Special Revenue Funds CombiningBalance Sheet.......................................................................................................................... 107 Deschutes County 9-1-1 County Service District.................................................................................. 114 Deschutes County Extension and 4-H County Service District and Sub -Fund ..................................... 115 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................... 116 Deschutes County 9-1-1 County Service District.................................................................................. 123 Deschutes County Extension and 4-H County Service District and Sub -Fund ................................... 124 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual JusticeCourt ........................................................................................................................................ 125 Park Acquisition and Development..................................................................................................... 126 Park Development Fees....................................................................................................................... 127 CountySchool Fund............................................................................................................................ 128 Special Transportation Fund................................................................................................................ 129 TaylorGrazing..................................................................................................................................... 130 TransientRoom Tax............................................................................................................................ 131 VideoLottery....................................................................................................................................... 132 TransientRoom Tax — 1%................................................................................................................... 133 ForeclosedLand Sales......................................................................................................................... 134 Victims' Assistance............................................................................................................................. 135 LawLibrary......................................................................................................................................... 136 CountyClerk Records.......................................................................................................................... 137 CourtFacilities..................................................................................................................................... 138 Deschutes County Communication System Reserve........................................................................... 139 CommunityDevelopment................................................................................................................... 140 CDD Groundwater Partnership............................................................................................................ 141 NewberryNeighborhood..................................................................................................................... 142 GISDedicated Fund............................................................................................................................. 143 NaturalResource Protection................................................................................................................ 144 FederalForest Title III......................................................................................................................... 145 Surveyor............................................................................................................................................... 146 Public Land Corner Preservation......................................................................................................... 147 Countywide Transportation SDC Improvement Fee........................................................................... 148 DogControl......................................................................................................................................... 149 Adult Parole and Probation.................................................................................................................. 150 Deschutes County 9-1-1 County Service District (9-1-1 C.S.D.)........................................................ 151 Deschutes County 9-1-1 C.S.D. — Equipment Reserve (Sub -Fund of 9-1-1 C.S.D.)........................... 152 Extensionand 4-H............................................................................................................................... 153 Extension and 4-H Reserve (Sub -Fund of Extension and 4 -H) ........................................................... 154 Nonmajor Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Deschutes County Full Faith and Credit Debt Service........................................................................ 155 Hi Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2019 Combinina and Individual Fund Statements and Schedules — Nonmaior Funds (continued Internal Service Funds Combining Statement of Net Position....................................................................................................... 156 Combining Statement of Revenues, Expenses, and Changes in Net Position .......................................... 158 Combining Statement of Cash Flows........................................................................................................ 160 Schedule of Revenues, Expenses, and Changes in Net Position — Budget and Actual Facilities............................................................................................................................................... 162 AdministrativeServices....................................................................................................................... 163 Boardof County Commissioners......................................................................................................... 164 Finance................................................................................................................................................. 165 FinanceReserve................................................................................................................................... 166 Legal.................................................................................................................................................... 167 HumanResources................................................................................................................................ 168 InformationTechnology...................................................................................................................... 169 Information Technology Reserve........................................................................................................ 170 Insurance.............................................................................................................................................. 171 HealthBenefits.................................................................................................................................... 172 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds — Detail Activity ................................. 173 Other Financial Schedules Schedule of Property Taxes Transactions — All County Taxes................................................................... 174 Schedule of Long -Term Debt Principal Transactions.................................................................................. 175 Schedule of Long -Term Debt Interest Transactions.................................................................................... 176 Schedule of Future Debt Service Requirements of Pension Obligation Bonds ........................................... 177 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings — GovernmentalActivities......................................................................................................................... 178 Schedule of Future Debt Service Requirements of Full Faith and Credit Bonds and Direct Borrowings— Business-Type Activities........................................................................................................................ 180 iv Deschutes County, Oregon Table of Contents As of and For the Year Ended June 30, 2019 STATISTICAL SECTION StatisticalSection Contents........................................................................................................................ 181 Financial Trends Net Position by Component — Last Ten Fiscal Years........................................................................... 182 Changes in Net Position — Last Ten Fiscal Years................................................................................. 184 Fund Balances - Governmental Funds — Last Ten Fiscal Years........................................................... 188 Changes in Fund Balances - Governmental Funds — Last Ten Fiscal Years ........................................ 190 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ................ 192 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ................................................... 194 Principal Property Taxpayers — Current Fiscal and Nine Years Ago .................................................... 196 Property Taxes Levies and Collections — Last Ten Fiscal Years.......................................................... 197 Debt Capacity Ratios of Outstanding Debt by Type — Last Ten Fiscal Years..............................................................198 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years .................................................200 Direct and Overlapping Governmental Activities Debt........................................................................201 Legal Debt Margin Information — Last Ten Fiscal Years.....................................................................202 Pledged -Revenue Coverage — Last Ten Fiscal Years...........................................................................204 Demographic and Economic Information Demographic and Economic Statistics — Last Ten Calendar Years ...................................................... 205 Principal Employers — Current Year and Nine Years Ago................................................................... 206 Operating Information Full -Time Equivalent County Government Employees by Function/Program — LastTen Fiscal Years.......................................................................................................................207 Operating Indicators by Function/Program — Last Ten Fiscal Years....................................................208 Capital Asset Statistics by Function / Program — Last Ten Fiscal Years..............................................210 Audit Comments and Disclosures Required By State Regulations Audit Comments and Disclosures Required by State Regulations...............................................................211 Independent Auditor's Report Required by Oregon State Regulations ........................................................212 Single Audit Compliance Internal Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................................................................................................215 Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance ......................................................217 Schedule of Expenditures of Federal Awards..............................................................................................219 Notes to the Schedule of Expenditures of Federal Awards..........................................................................222 Schedule of Findings and Questioned Costs................................................................................................227 V ES Introductory Section As of and for the Year Ended June 30, 2019 Deschutes County, Oregon ES November 14, 2019 COUNTY ADMINISTRATOR TOM ANDERSON 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, 2019, 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 217. 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, 2019, 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 the MD&A and should be read in conjunction with it. Deschutes County's MD&A can be found immediately following the independent auditors' report. 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 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 77 as part of the required supplementary information. All other funds are presented in a subsection of this report, which begin after on page 84. 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 (Oregon Population Forecast Program), the population was estimated to be 188,980, an increase of approximately 20% since 2010, and is projected to exceed 266,000 by 2035. 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 2019, the County's assessed valuation of taxable property increased by 5.9%, approximately $1.4 billion, to a total of $24.6 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 II 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, 2019 is $16.4 million and the balance is projected to decrease by $0.9 million during FY 2020. The County will continue to monitor employer rates and use the reserve fund to smooth rate increases to departments. 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 2020 remains unchanged from FY 2019 at $.3618 per $1,000 of assessed valuation. During Fiscal Year 2019, Deschutes County refinanced its 2008 & 2009 Full Faith and Credit bonds and its credit rating, as rated by Moodys, was upgraded from Aa2 to Aal. Major Initiatives A long range financial plan was established for the Sheriff's office during the FY 2019 budget process. The Plan supported the Sheriffs recommendation to increase the tax rate for the Countywide Sheriff's Levy by 8 cents per thousand and to decrease the tax rate for the Rural Sheriff s Levy by 6 cents per thousand. The budget committee and the Board of County Commissioners approved an increase of 6 cents in the County Levy and a reduction of 6 cents in the Rural Levy for FY 2019. Both of these tax levies have capacity for future tax changes if they are needed. Finance/Human Resource Software — The County has been using a Finance/Human Resources software program since FY 2000. The County awarded a contract in the spring of 2016 to Tyler Technologies for a two -phased project that officially began in May 2016. The financial phase of the project was completed in July 2017 and the payroll/human resources phase of the project was completed during January 2019. 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 term was from April 2017 to March 2019. At the close of the project term, the County Health Department applied for, and was awarded, a $3.4 million CCBHC expansion (continuation) grant. The new grant will extend CCBHC services offered through September 2020. 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 Sheriffs 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 Sheriffs Office budget and the Health Department's budget for FY 2020. 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. Construction began during fiscal year 2019 and is set to be completed in the early months of fiscal year 2020. 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, 2018. This was the 181h 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 2019. 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 Greg Munn Chief Finance Officer 4 County Asseesw County Clerk Co unty Sheriff Scot Langton Nancy Blankenshlp L. Shane Nelson Appraisals Elections Corrections (Jolt! Work Cancer) Assessment Moment Lau Enforcement Records Recording Cartography Vital Records AdminlsVetlae d Stiapport 3ervloes Property lax Appeals Citizens of Deschutes County Board of Commissioners DietrlctAttomey Philip Henderson John Hum mei Patti Adair Anthony ❑aBone Prosecution in Circui t Court Leg�Caurtel Gounty Z:.Vnent Couns �� Doy� Administrator Tom Anderson #11,111Asslstano County Legal T❑eparlment I Administrative! Court Proceed rc R Juslce of the County Treasurer Peace Wayne Lowry Charles Fa Oeiey TratfidOrdinence Investments Violations 3rnaii Cfairos courd F TaKD Elected Offices Q Appointed Offices ® Department Functions S•I,LD.i [anrinn HerF � �� MYR 1Y�ehnS�R I Edd ❑°mRmlq Wonw�H�af►i Chkien lVAG� +5etke6iGhb 9srkvs AIL=/+PrB akp �wllun - P4,mhq Vwhmw" ` Cauya kll +WIIMAtYRR ktem� A.dAhp F#9RkA1' F1bklnhn�lA41a t'�°�rt� hYWtA7Rart.woA' BJIdnY PIW&O r A+YF+YIYax7 – Idkliryo�t 4f—w Conpelxlnikn 4M, YW i Ulrmplt �a A.Ii. a yah 6hotiitbu rlu Uepulp CdntfLl Adn�iereto-i ErF Kruf-+k A uh p Pmh Olb S EleLtrmr JuymAe F.b�tliy ClcirnYm I T�e�d p.od.t4,a FWLF*WT9% pm" INOymb ADpefY Mtofl—L Jim Lrr� AR'BuWlhy ProP�RY fr[I�9Y'�1[ F{IIAYR iaom� Kaltq�ae tilrtiwl 7a�lnd� 4dtr� Scxes Pafrd 9prtRaau�wlA � L,on4a�sdlon Aeielmeti Pntplottit Fkcih 9ww1167 rr. 6ud�i I i i+Glrn71491' 7..AIkLtrlrp� TaR Cdr vxan,tippl�R _-. flog Li�trY3 - County & Deputy Coun[yAdminisvator - Appoi Wd Offices Department FunoWns Edd ❑°mRmlq Na ircoLl omm Piwa - P4,mhq r' &edteg 6-11 'UYeen Finhomerfal Catib Shce Fl—i Eq.jp—i Cart s�L� eI�I�L�Q,L 1 Qi8 Vwhmw" ` Cauya kll +WIIMAtYRR ktem� A.dAhp F#9RkA1' F1bklnhn�lA41a t'�°�rt� hYWtA7Rart.woA' BJIdnY PIW&O r A+YF+YIYax7 – Idkliryo�t 4f—w Conpelxlnikn 4M, YW i Ulrmplt �a A.Ii. a yah 6hotiitbu rlu Uepulp CdntfLl Adn�iereto-i ErF Kruf-+k A uh p Pmh Olb S EleLtrmr JuymAe F.b�tliy ClcirnYm I T�e�d p.od.t4,a FWLF*WT9% pm" INOymb ADpefY Mtofl—L Jim Lrr� AR'BuWlhy ProP�RY fr[I�9Y'�1[ F{IIAYR iaom� Kaltq�ae tilrtiwl 7a�lnd� 4dtr� Scxes Pafrd 9prtRaau�wlA � L,on4a�sdlon Aeielmeti Pntplottit Fkcih 9ww1167 rr. 6ud�i I i i+Glrn71491' 7..AIkLtrlrp� TaR Cdr vxan,tippl�R _-. flog Li�trY3 - County & Deputy Coun[yAdminisvator - Appoi Wd Offices Department FunoWns List of Elected and Appointed Officials As of June 30, 2019 ELECTED OFFICIALS COUNTY COMMISSIONERS Philip Henderson Patti Adair Anthony DeBone ASSESSOR DISTRICT ATTORNEY Scot Langton John Hummel SHERIFF TREASURER Shane Nelson Wayne Lowry COUNTY CLERK JUSTICE COURT Nancy Blankenship Charles Fadely APPOINTED OFFICIALS County Administrator - Tom Anderson County Counsel — David Doyle Finance Director — Wayne Lowry County Internal Auditor - David Givans Administrative Offices 1300 NW Wall Street, Suite 200 Bend, Oregon 97703 Government Finance Officers Asscclation Certificate of Achievement for Excellence in Financial Reporting Presented to Deschutes County Oregon For its Comprehensive Arinlial Financial Re -port for the Fiscal Year Ended June 3, 2018 1 f f Executive Dir iurICEO Financial Section As of and for the Year Ended June 30, 2019 Deschutes County, Oregon EideBailly 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, 2019, 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, 2019, 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 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 fixnds — 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 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 14, 2019 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 10 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 14, 2019, 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 14, 2019 11 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 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, 2019. 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 $207,960,000 as of June 30, 2019, an increase of $20,773,000 in net position from June 30, 2018. This change is due primarily by increases in governmental fund balances with partial offsets of government -wide adjustments. With the continued investment of State dollars into the County Road CIP fund, as well as County investment made into the PERS reserve fund, the County is positioned well for the future. It is anticipated that this buildup of fund balance will be exhausted by large capital expenditure and rising pension expense. • The County reported a combined fund balance at June 30, 2019 of $146,478,000 for its governmental funds, an increase of $22,600,000 from June 30, 2018. Of this balance, $49,800,000 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 $32,394,000 as of June 30, 2019, an increase of $3,219,000 over the balance at June 30, 2018. June 30, 2019 June 30, 2018 General Fund (Operations) $ 12,459,000 $ 11,944,000 Sub -funds of the General Fund 19,935,000 17,232,000 $ 32,394,000 $ 29,176,000 o Fund balance is 81.7% percent of the Fund's combined revenues and transfers in and 88.9% of the fund's combined expenditures and transfers out. • The County's Assessed Valuation of Taxable Property increased by 5.9% in Fiscal Year 2019. • Total bonded debt was $50,206,000 as of June 30, 2019, compared to total bonded debt of $54,666,000 as of June 30, 2018. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Deschutes County's basic financial statements. These basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of Deschutes County's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all of Deschutes County's assets, liabilities, deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Deschutes County is improving or deteriorating. The Statement of Activities presents information showing how Deschutes County's net position changed during the fiscal year. Changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued compensated leave that will result in cash flows in future fiscal periods. 12 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 Each of these government -wide financial statements, Statement of Net Position and Statement of Activities, distinguish functions of Deschutes County that are supported primarily by taxes and inter -governmental revenues (governmental activities) from other functions that are intended to recover all, or a significant portion of, their costs through user fees and charges (business -type activities). The governmental activities of Deschutes County include general government, public safety, roads, health services, and education. The business -type activities of Deschutes County include Solid Waste operations, the Deschutes County Fair & Expo Center and the RV Park. The government -wide financial statements include four county service districts: Countywide Law Enforcement District, Rural Law Enforcement District, Deschutes County 9-1-1 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 24-26 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Deschutes County, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Each of the funds of Deschutes County is classified in one of three categories: governmental funds, proprietary funds or fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and ou flows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government -wide Statement of Net Position and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government - wide Statement of Activities have been included in this report. Reconciliation of the Governmental Funds Balance Sheet to the Governmental Activities column on the Statement of Net Position — The measurement criteria for each statement result in significant differences between these two statements. Capital assets of $145,836,000 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 $157,866,000, 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 29. 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 $22,600,000 during FY 2019 while the net position of governmental activities increased by $18,252,000. This $4,348,000 difference is due to fiscal year transactions that are reported differently on each statement. Repayments of long term debt of $9,963,000, prepaid expense related to future years of $285,000, and expenditures for the acquisition of capital assets of $10,324,000 are not reported as expenses on the Statement of Activities. Instead they are reductions of noncurrent liabilities and additions to current asset or capital assets, respectively. Other reconciling items include accrued revenues and expenses and changes in accruals and deferrals netting a reduction in net position of $16,749,000. The largest item is the change in the net pension liability in the amount of $10,135,000 that is reported only in the statement of activities, not the governmental fund statements as it is not a use of financial resources in the current period. 13 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 Deschutes County reported activity in forty-nine (49) individual governmental funds and sub -funds during Fiscal Year 2019. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund and the County's major funds (Sheriff's Office, Countywide Law Enforcement District, Rural Law Enforcement District, Road, Road CIP, PERS Reserve and Health Services). Data from all other governmental funds are combined into a single, aggregated presentation. Individual data for each of these non -major governmental funds is provided in the form of combining statements in the "Other Supplementary Information" section of this report and in the budget to actual comparison schedules. Deschutes County adopts an annual budget for each of its funds and a budgetary comparison statement has been provided for each to demonstrate compliance with its annual budget. The Basic Governmental Fund Financial Statements can be found on pages 27-32 of this report. Proprietary funds. Deschutes County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions as business -type activities in the government -wide financial statements. Deschutes County uses enterprise funds to account for its Solid Waste, Fair & Expo Center operations and RV Park. An internal service fund is an accounting device used to accumulate and allocate costs internally among Deschutes County's various functions. Deschutes County uses internal service funds to account for its 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 operations and the RV Park. Both Solid Waste and Fair & Expo Center are considered to be major funds of Deschutes County. The internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the "Other Supplementary Information" section of this report and in the budget to actual comparison schedules. The Basic Proprietary Funds Financial Statements can be found on pages 33-35 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 36 of this report and the Statement of Changes in Assets and Liabilities on page 173. 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 37-71 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents as required supplementary information, the budgetary comparisons for the General Fund and major special revenue funds. Other supplementary information begins after page 84. The combining statements referred to above in connection with non -major governmental funds and internal service funds are presented in the "Other Supplementary Information" section of this report. 14 Government -wide Financial Analysis Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 Deschutes County Net Position The County's net position at June 30, 2019 was $207,960,000. 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 73% 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 $66,660,000 or 32%. 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 $9,936,000. 15 Governmental activities Business -type activities Total 2019 2018 2019 2018 2019 2018 Assets other than capital assets $ 194,428,002 $ 171,529,785 $ 14,463,818 $ 10,852,017 $ 208,891,820 $ 182,381,802 Capital assets 147,378,907 146,402,372 45,694,913 47,723,420 193,073,820 194,125,792 Total assets 341,806,909 317,932,157 60,158,731 58,575,437 401,965,640 376,507,594 Deferred outflows of resources 35,717,249 29,345,870 1,296,156 1,044,385 37,013,405 30,390,255 Non-current liabilities 159,265,997 160,276,693 21,613,691 22,792,352 180,879,688 183,069,045 Current liabilities 32,044,865 32,235,314 1,797,003 1,773,791 33,841,868 34,009,105 Total liabilities 191,310,862 192,512,008 23,410,694 24,566,143 214,721,556 217,078,151 Deferred inflows of resources 15,754,783 2,559,852 542,820 72,930 16,297,603 2,632,782 Net position: Net investment in capital 115,293,413 113,719,602 35,942,205 37,025,828 151,235,618 150,745,430 Restricted 66,660,268 51,604,150 - - 66,660,268 51,604,150 Unrestricted (11,495,168) (13,117,584) 1,559,167 (2,045,078) (9,935,999) (15,162,662) Net position $ 170,458,513 $ 152,206,168 $ 37,501,372 $ 34,980,750 $ 207,959,885 $ 187,186,918 The largest portion, approximately 73% 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 $66,660,000 or 32%. 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 $9,936,000. 15 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 Changes in Net Position Governmental activities FY 2019 FY 2018 Business -type activities FY 2019 FY 2018 Program revenues: 69,774,866 7,829,489 7,011,471 5,485,279 Charges for services $ 46,332,253 $ 45,185,450 $ 14,983,466 $ 14,136,994 $ Operating grants and - 32,523,927 36,105,776 Public safety contributions 53,767,845 52,587,329 107,740 786,895 Capital grants and County roads 17,645,717 18,122,984 contributions 30,000 1,918,307 - - General revenues: - 45,086,737 50,068,445 Property taxes 74,314,464 69,774,866 - - Other taxes 7,829,489 7,011,471 - - Other 5,151,181 1,940,860 334,098 129,837 _ Total revenues 187,425,232 178,418,283 15,425,304 15,053,726 Total M10-111G� M10 -111E3 61,315,720 $ 59,322,444 53,875,585 53,374,224 30,000 1,918,307 74,314,464 69,774,866 7,829,489 7,011,471 5,485,279 2,070,697 202, 850,536 193,472,009 Expenses: General government 32,523,927 36,105,776 - 32,523,927 36,105,776 Public safety 70,253,604 64,258,765 - 70,253,604 64,258,765 County roads 17,645,717 18,122,984 - 17,645,717 18,122,984 Health and welfare 45,086,737 50,068,445 - 45,086,737 50,068,445 Interest on long-term debt 2,024,851 2,104,761 - - 2,024,851 2,104,761 Solid waste - - 9,047,200 10,131,364 9,047,200 10,131,364 Fair & expo center - 5,085,859 4,504,592 5,085,859 4,504,592 RV park - - 409,672 411,993 409,672 411,993 Total expenses 167,534,837 170,660,731 14,542,731 15,047,949 182,077,568 185,708,680 Excess (deficiency) before special items/transfers 19,890,395 7,757,552 882,573 5,777 20,772,968 7,763,329 Special item - change in estimate - - - 3,369,910 - 3,369,910 Change in net position before transfers 19,890,395 7,757,552 882,573 3,375,687 20,772,968 11,133,239 Transfers (1,638,050) (631,722) 1,638,050 631,722 - - Change in net position 18,252,345 7,125,830 2,520,623 4,007,409 20,772,968 11,133,239 Net position, Beginning of year 152,206,168 145,080,338 34,980,750 30,973,341 187,186,918 176,053,679 Net position, End of year $ 170,458,513 $ 152,206,168 $ 37,501,372 $ 34,980,750 $ 207,959,885 $ 187,186,918 16 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 The net position of the County increased by $20,773,000 during FY 2019. 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 $18,252,000 or 12%, over double the increase reported for FY 2018. Program expenses decreased by 2%, program revenues increased by 0.50% and taxes increased by 7%. Governmental activities rely on general revenues to support the function. Property taxes make up the largest share of this support at 39% 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 $2,520,000 or 7%. Solid Waste: The County's solid waste operation experienced an increase in net position of $2,616,000. The operating income of $2,570,000 is due to the area's robust construction industry. The full cost of operations includes depreciation and accrual of landfill closure and post -closure costs. Fair and Expo Center: The operating loss from the County's Fair & Expo Center was $1,985,000. Revenues were $574,000 more than the prior year and operating expenses were $580,000 more than the prior year. RV Park: Operating income for the RV Park was $94,000, an increase of $39,000 over FY 2018. Utilization of the RV Park was 34.7% in FY 2019. With business -type activities, Solid Waste and the RV Park activities generated sufficient operating revenues during FY 2019 to cover operating expenses. Approximately 97% of program revenues for business -type activities come from charges for services. 17 Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 Expenses and Program Revenues - Governmental Activities so,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 General government Public safety County roads Health and welfare Interest Revenues by Source - Governmental Activities Property taxes 39% Other taxes 4% 18 jes for services 25% Investment revenues 3% rating grants and contributions 29% Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 Expenses and Program Revenues - Business -type Activities 12,000,000 10,000,000 4,000,000 Solid waste Fair and expo center RV Park Revenues by Source - Business -type Activities Charges for services Inves 2% 19 )perating grants and contributions 1% Deschutes County, Oregon Management's Discussion and Analysis June 30, 2019 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, 2019, $146,478,000 is the reported combined ending fund balance for Deschutes County's governmental funds, an increase of $22,600,000 from June 30, 2018. Changes, amounts and percentages, in the fund balances of the major governmental funds and of the other governmental funds were: MAJOR o General Fund (including sub -funds): increase of $3,219,000, +11% o Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District (combined): increase of $2,062,000,+14% o Road: decrease of $1,560,000, -11% o Road CIP: increase of $8,252,000, +86% o Health Services: increase of $6,118,000, +49% o PERS Reserve: increase of $1,962,000, +14% NONMAJOR o Nonmajor special revenue: increase of $2,372,000, +8% o Nonmajor debt service: increase of $176,000, +26% Significant Changes in Major Funds General Fund: As of June 30, 2019, the fund balance of Deschutes County's General Fund was $32,394,000. Of this fund balance, $19,935,000 is nonspendable, committed or assigned for specific use and $12,459,000 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, 2019, for the General Fund is 128% of total General Fund expenditures and 89% of total General Fund combined expenditures and transfers out. Deschutes County's General Fund balance increased by $3,219,000, 11%, during Fiscal Year 2019. Revenues increased by $727,000, 2%, over the prior year. Property tax revenues increased by $971,000, 3%, intergovernmental payments were up $31,000 and payments from other County funds for inter -fund services decreased by $1.2 million. Expenditures increased by $1.7 million, 7%. Sheriff, Countywide Law Enforcement District and Rural Law Enforcement District: The County's Sheriff s services are funded through two voter -approved county service district property tax levies. One district levies a tax throughout the County to provide funding for countywide services and the other levies a tax in the unincorporated area to provide funding for Sheriff's services outside city boundaries. Resources from the two law enforcement districts, totaling $34,419,000, were paid to the Sheriff's fund where Sheriff's services expenditures are recorded. Combined fund balances of these three major funds increased by $2,062,000. Property tax revenue increased by 8.5% over the prior year due to an increase in both the rate levied and the assessed value. Road: The fund balance of the Road fund decreased by $1,560,000, or -11% during FY 2019. During FY 2019, $12,464,000 was transferred from the Road Fund to the Road Capital Improvement Plan fund. The Road fund receives the majority of its revenue from the State of Oregon gas tax, vehicle registrations and from the federal secure rural schools program. Motor vehicle revenues in FY 2019 were $2,615,000 more than received in FY 2018. 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, 2019 Road CIP: The County established a capital project fund in FY 2017 with annual transfers to be received from the Road Fund, a major fund, for capital improvement projects. Transfers into this fund during FY 2019 were $12,464,000 from the Road Fund and $930,000 from a non - major special revenue fund. Expenditures for road projects occurring during FY 2019 totaled $5,484,000. Overall change to fund balance was an increase of $8,252,000. Health Services: Fund balance for the Health Services Fund increased by $6,118,000 or 49%. Revenue within the Health Services fund increased by $780,000, or 2%, over the prior year, while expenditures decreased by $4,634,000, 10%, over the prior year. In addition, net transfers increased by $1,796,000, or 43%, over the prior year. Of the reduction in expenditures, approximately $2,517,000 was related to a favorable settlement of liability previously incurred. With the future delivery model of health services changing in the future, fund balance is maintained to ensure continuation of services. PERS Reserve: The resources of the PERS Reserve have been increasing since FY 2015. Most of the FY 2019 increase is due to the transfer of $2,000,000 from the General Fund. The PERS Reserve fund has been reported in FY 2019 as a major fund because the assets exceed 10% of the total reported governmental assets. The combined fund balances of the County's non -major special revenue funds, increased by $2,372,000. The Transient Room Tax fund balance increased by $1.5 million from a significant increase in tourism within Deschutes County. The Community Development Department's fund balance increased by $783,000 due to the continued strength in real estate development. Capital construction began during FY 2019 on the Extension 4H building that decreased fund balance by $692,000. The County assesses fees for future transportation requirements and this contributed $397,000 to the fund balance of the Countywide Transportation SDC Improvement fund during FY 2019. The resources of the debt service fund increased by $176,000 during the fiscal year as the rentals received on the properties financed with debt exceeded the current year debt service expenditures. 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, 2019, the net position of the Solid Waste Department was $18,851,000, an increase of $2,616,000 The net investment in capital assets decreased by $635,000 and the unrestricted net position increased by $3,251,000. With a continued strong local economy, projections show the Solid Waste Department revenues will be 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, 2019 is of $8,431,000. The June 30, 2019 net position of the Fair and Expo Center was $17,170,000, a decrease of $337,000. 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, 2019, was $1,480,000, an increase of $242,000. General Fund Budgetary Highlights There were four budget adjustments to the General Fund's original budget during FY 2019. Two of the adjustments, totaling $239,382, were to appropriate grant funds within the District Attorney's program; whereas, the other two adjustments were to transfer appropriation from contingency to increase the County Clerk appropriation by $8,920 and non -departmental appropriation by $76,000. The County's assumptions for estimating revenues are conservative. The General Fund's actual revenues were $930,000 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 $1,103,000, approximately 3.0% 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, 2019 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, 2019, was $193,074,000, net of accumulated depreciation. The book value of the depreciable assets is 52% 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 48-49 of this report. Long-term debt. As of June 30, 2019, Deschutes County's outstanding bonded debt was $50,206,000, all of which is backed by the full faith and credit of the County. Oregon Local Go\/t Pension Bonds Direct Borrowing Full Faith & Credit Obligations Total Governmental activities 6/30/2019 6/30/2018 Business -type activities 6/30/2019 6/30/2018 Total 6/30/2019 6/30/2018 $ 9,098,615 $ 9,521,753 $ - $ - $ 9,098,615 $ 9,521,753 1,317,527 1,524,633 5,964,873 6,699,467 7,282,400 8,224,100 29,950,010 32,828,494 3,874,990 4,091,506 33,825,000 36,920,000 $ 9,839,863 $ 10,790,973 $ 50,206,015 $54,665,853 $ 40,366,152 $ 43,874,880 Deschutes County's bonded debt decreased by $4,460,000 during the fiscal year due to scheduled debt repayments. Moody's Investors Services has assigned a credit rating of Aal to Deschutes County's Full Faith & Credit obligations. This rating was confirmed in FY 2019 through refinancing of the County's 2008 & 2009 Full Faith & Credit obligations. 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 $4 billion, the current debt limitation for Deschutes County is $824,609,000. The County has no general obligation debt at June 30, 2019. Additional information on Deschutes County's long-term debt is included in Note 31 on pages 50-53 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 September 2018 and included employer rates to be in effect July 1, 2019 through June 30, 2021. The FY 2020 impact of this increase is anticipated to be approximately $4,000,000. PERS actuaries anticipate additional significant employer rate increases effective July 1, 2021 and July 1, 2023. 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, 2019 was $16,403,000. The purpose of the fund is to provide relief to departments as PERS rates increase. The County's FY 2020 budget includes a General Fund transfer to the PERS Reserve of $2,000,000. In addition, The FY 2020 budget anticipates a drawdown of the PERS reserve in the amount of $3,250,000 to partially offset increasing PERS charges to departments. Fiscal year 2020 is the first significant 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, 2019 The County's Assessed Valuation of Taxable Property increased from FY 2019 to FY 2020 by 5.37% to approximately $25.9 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 2020, the County's general levy will be at a rate of $1.2183 per $1,000 of assessed value. This rate is consistent with the rate adopted 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 97703. 23 ES Basic Financial Statements As of and for the Year Ended June 30, 2019 Deschutes County, Oregon Deschutes County, Oregon Statement of Net Position June 30, 2019 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 Noncurrent 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 Net OPEB RHIA asset Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Debt refunding Net pension liability Net OPEB RHIA asset Total deferred outflows of resources See notes to financial statements 24 Totals may not foot due to rounding Governmental Business - Type Activities Activities $ 56,131,094 121,167,161 2,749,606 7,427,322 3,208,699 115,818 2,475,033 446,161 193,720,893 13,470,541 5,026,234 51,527,174 2,181,488 57,616,902 15,985,357 1,571,211 147,378,907 707,109 148,086,016 341,806,909 748,379 34,643,102 325,768 35,717,249 $ 4,259,642 9,173,005 803,966 29,501 197,704 14,463,818 1,924,037 49,779 19,696,268 20,893,222 3,092,706 38,903 45,694,913 45,694,913 60,158,731 187,834 1,108,322 1,296,156 Total $ 60,390,736 130,340,166 2,749,606 8,231,288 3,208,699 115,818 2,504,533 643,865 208,184,711 15,394,578 5,076,012 51,527,174 21,877,756 78,510,123 19,078,063 1,610,113 193,073,820 707,109 193,780,929 401,965,640 936,213 35,751,424 325,768 37,013,405 Deschutes County, Oregon Statement of Net Position June 30, 2019 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 Total OPEB liability Net pension liability Bonds and notes payable (net of 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 Net pension liability Total OPEB liability Net OPEB RHIA asset Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Capital projects Debt service Public safety Road Health & welfare Unrestricted Total net position See notes to financial statements 25 Totals may not foot due to rounding Governmental Business - Type Activities Activities Total $ 10,024,980 141,700 6,109,232 15,768,953 32,044,865 9,262,043 23,924,679 92,866,731 41,932,488 7,049,010 (15,768,953) 159,265,997 191,310,862 5,883,590 9,670,663 200,530 15,754,783 115,293,413 17,794,245 695,363 16,942,617 12,731,621 18,496,423 (11,495,168) $ 459,083 17,700 351,160 969,061 1,797,003 363,363 877,233 2,971,046 9,940,541 8,430,568 (969,061) 21,613,691 23,410,694 188,231 354,589 542,820 35,942,205 1,559,167 $ 10,484,063 159,400 6,460,392 16,738,013 33,841,868 9,625,406 24,801,912 95,837,777 51,873,029 7,049,010 8,430,568 (16,738,013) 180,879,688 214,721,556 6,071,821 10,025,252 200,530 16,297,603 151,235,618 17,794,245 695,363 16,942,617 12,731,621 18,496,423 (9,936,001) $ 170,458,513 $ 37,501,372 $ 207,959,885 ES Function/Program Expenses Governmental Net (Expense) Revenue and Changes in Net Position General government $ 32,523,927 Public safety 70,253,604 County roads 17,645,717 Health services 45,086,737 Interest and fiscal charges 2,024,851 Total governmental 167,534,837 activities Contributions Business -type: Deschutes County, Oregon Statement of Activities Year Ended June 30, 2019 46,332,253 53,767,845 30,000 (67,404,738) - (67,404,738) Solid Waste Program Revenues 11,421,763 - Net (Expense) Revenue and Changes in Net Position 2,374,563 Fees, Fines and Operating Capital Grants 3,085,338 107,740 Charges for Grants and and Governmental Business -type 476,365 - Services Contributions Contributions Activities Activities Total $ 15,487,329 $ 6,362,523 $ - $ (10,674,075) $ $ (10,674,075) 3,870,888 9,180,528 30,000 (57,172,189) (57,172,189) 24,081,955 - - 6,436,237 6,436,237 2,892,082 38,224,795 (3,969,861) (3,969,861) - - $ 548,475 (2,024,851) (2,024,851) 46,332,253 53,767,845 30,000 (67,404,738) - (67,404,738) Solid Waste 9,047,200 11,421,763 - 2,374,563 2,374,563 Fair and Expo Center 5,085,859 3,085,338 107,740 (1,892,782) (1,892,782) RV Park 409,672 476,365 - 66,693 66,693 Total business -type 14,542,731 14,983,466 107,740 548,475 548,475 activities Total $ 182,077,568 $ 61,315,720 $ 53,875,585 $ 30,000 $ (67,404,738) $ 548,475 $ (66,856,264) General revenues: Taxes: Property taxes, levied for general purposes $ 38,353,835 $ - $ 38,353,835 Property taxes, levied for sheriff services 35,960,629 35,960,629 Transient room tax 7,829,489 7,829,489 Investment earnings 5,151,181 334,098 5,485,279 Transfers (1,638,050) 1,638,050 - Total general revenues, special items, and transfers 85,657,083 1,972,148 87,629,232 Change in net position 18,252,345 2,520,623 20,772,968 Net position - Beginning of year 152,206,168 34,980,750 187,186,918 Net position - Ending of year $ 170,458,513 $ 37,501,372 $ 207,959,885 See notes to financial statements 26 Totals may not foot due to rounding ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Assessments receivable Inventory Total assets LIABILITIES Accounts payable Deposits Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2019 Countywide Law Rural Law Enforcement Enforcement General Fund Sheriff District District Road $ 11,765,605 $ 95,880 $ 3,084,040 $ 2,250,180 $ 3,449,142 25,397,398 206,427 6,658,595 4,857,837 7,446,020 724,667 - 587,538 249,460 - 449,778 392,098 - - 323,781 2,392,214 - - - - - - - - 115,818 $ 40,729,662 $ 694,405 $ 10,330,173 $ 7,357,477 $ 13,809,793 $ 2,246,442 $ 547,601 $ 22,728 - 5,442,855 694,405 - $ - $ 959,357 962,353 Unavailable revenue - property taxes 645,007 - 522,759 222,275 - Unavailable revenue - special assessments - - - - 115,818 Unavailable revenue - contracts of sale 2,247,741 - - - - Total deferred inflows of resources 2,892,748 - 522,759 222,275 115,818 FUND BALANCES Nonspendable 144,473 - - - 2,475,033 Restricted - - 9,807,414 7,135,202 10,256,589 Committed 13,048,013 - - - - Assigned 6,743,043 - - - - Unassigned 12,458,530 - - - - Total fund balances 32,394,059 - 9,807,414 7,135,202 12,731,621 Total liabilities, deferred inflows of resources and fund balances $ 40,729,662 $ 694,405 $ 10,330,173 $ 7,357,477 $ 13,809,793 See notes to financial statements 27 Totals may not foot due to rounding ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Assessments receivable Inventory Total assets LIABILITIES Accounts payable Deposits Unearned revenue Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - special assessments Unavailable revenue - contracts of sale Total deferred inflows of resources Deschutes County, Oregon Governmental Funds Balance Sheet June 30, 2019 Road Capital Improvement Health PERS Other Total Governmental Governmental $ 5,888,078 $ 5,443,479 $ 5,192,609 $ 9,860,411 $ 47,029,423 12,711,572 11,746,345 11,210,149 21,284,608 101,518,950 - - - 1,187,941 2,749,606 - 5,641,282 - 433,305 7,240,245 - - - 816,485 3,208,699 - - - - 115,818 $ 18,599,650 $ 22,831,106 $ 16,402,758 $ 33,582,750 $164,337,775 $ 805,405 $ 1,939,655 $ 805,405 4,334,684 - $ 1,307,044 $ 7,805,503 - - 22,728 1,675,033 13,914,735 191,862 1,581,903 - 115,818 - 2,247,741 191,862 3,945,462 FUND BALANCES Nonspendable - - - - 2,619,506 Restricted 17,794,245 18,496,423 - 30,567,990 94,057,863 Committed - - 16,402,758 1,147,865 30,598,637 Assigned - - - - 6,743,043 Unassigned - - - - 12,458,530 Total fund balances 17,794,245 18,496,423 16,402,758 31,715,855 146,477,577 Total liabilities, deferred inflows of resources and fund balances $ 18,599,650 $ 22,831,106 $ 16,402,758 $ 33,582,750 $164,337,775 See notes to financial statements Totals may not foot due to rounding 28 ES Deschutes County, Oregon Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2019 Total fund balances for governmental funds $ 146,477,577 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. Prepaid expenses Deferred outflows of resources Net OPEB RHIA asset Net pension liability 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 governmental 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, 2019, are: Accrued interest on bonds and notes payable Bonds and notes payable Unamortized premium and discount on bonds Total OPEB liability Net pension liability Compensated leave Noncurrent liabilities and accrued interest Deferred inflows of resources Total OPEB liability Net OPEB RHIA asset Net pension liability Net position of governmental activities See notes to financial statements 29 Totals may not foot due to rounding (141,700) (40,366,152) (1,566,336) (22,033,219) (85,393,191) (8,365,172) 145,836,492 285,106 325,768 31,855,165 748,379 707,109 12,659,967 3,945,462 (157,865,770) (8,906,111) (200,530) (5,410,102) $ 170,458,513 Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended June 30, 2019 Countywide Law Rural Law Enforcement Enforcement General Fund Sheriff District District Road REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Special assessments Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Debt service: Principal payments Interest Trustee fees Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Issuance of refunding bonds - par Issuance of refunding bonds - premium Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Increase/(decrease) in inventory Fund balances - End of year $ 29,225,400 $ - $ 25,542,586 $ 10,351,818 $ - 33,550 - - - - 40,571 521,477 - - - - - - - 60,172 1,162,265 - 346,234 240,753 394,897 584,028 - - - 1,122 4,761,107 37,259,683 - - 21,250,155 2,084,055 566,710 - - 1,481,348 929 54,280 - - - 680,503 - - - - 303,730 70,493 - - 6,679 38,876,138 38,472,644 25,888,821 10,592,571 23,194,372 17,569,845 - - 6,631,325 39,863,634 23,877,524 514,122 - - 25,348,022 41,453,897 23,877,524 13,528,117 (2,981,254) 2,011,296 773,154 3,254,919 - (10,309,569) 2,981,254 - 3,218,548 - 2,011,296 29,175,511 - 7,796,118 See notes to financial statements 30 Totals may not foot due to rounding 10,541,670 12,195,832 10,541,670 12,979,193 50,902 10,215,179 - (12,464,308) 50,902 (2,249,129) 7,084,300 14,292,019 Deschutes County, Oregon Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended June 30, 2019 Road Capital Other Total Improvement Health PERS Governmental Governmental REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Special assessments Investment earnings Rents Intergovernmental Charges for services Contributions and donations Payments on contracts of sale Other Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Debt service: Principal payments Interest Trustee fees Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Issuance of refunding bonds - par Issuance of refunding bonds - premium Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Increase/(decrease) in inventory Fund balances - End of year See notes to financial statements Totals may not foot due to rounding $ - $ - $ - $ 9,090,497 $ 74,210,302 - - - 7,829,489 7,829,489 - 164,313 - 1,648,784 1,846,647 - - - 963,653 1,525,702 - - - - 60,172 342,050 480,046 431,026 981,797 4,379,068 - 10,122 - 1,280,515 1,875,787 - 37,143,748 - 11,201,666 111,616,358 - 2,723,476 - 10,553,717 17,409,307 - 455,351 - 5,132 515,692 - - - - 680,503 - - - - 380,902 342,050 40,977,057 431,026 43,555,252 222,329,931 - - 469,312 12,585,519 30,624,676 - - - 17,057,677 97,971,830 - - - 1,405,310 13,601,142 - 40,542,443 - 872,503 41,929,068 - - - 9,963,729 9,963,729 - - - 2,021,171 2,021,171 - - - 106,325 106,325 5,484,366 206,031 - 1,408,512 10,105,264 5,484,366 40,748,474 469,312 45,420,745 206,323,204 (5,142,317) 228,584 (38,286) (1,865,494) 16,006,727 - - - 6,455,001 6,455,001 - - - 1,057,684 1,057,684 13,393,963 6,078,223 2,000,000 2,767,852 28,268,112 - (188,688) - (5,866,795) (29,876,179) 13,393,963 5,889,535 2,000,000 4,413,742 5,904,617 8,251,647 6,118,119 1,961,714 2,548,248 21,911,344 9,542,598 12,378,304 14,441,045 29,167,607 123,877,503 31 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, 2019 Net change in fund balances - total governmental funds (including fund balance adjustment to inventory) $ 22,600,075 Financial resources provided that are not revenues Payments on land sale contracts (692,749) Debt proceeds - refinance (7,512,685) Financial resources provided for / by capital assets Contributed infrastructure 30,000 Financial resources used that are not expenses Repayments on long-term debt 9,963,729 Increase / (decrease) in prepaid expense 285,106 Acquisition of capital assets (includes $219,164 of non -capital outlay) 10,324,428 20,573,262 Other adjustments: non-cash revenues and expenses and changes in accruals and deferrals Depreciation and amortization expense (9,351,657) Amortization of deferred debt refunding cost (52,618) Amortization of bond premium / (discount), net 146,621 Net effect of miscellaneous transactions involving capital assets (sales, trade-ins and adjustments) (126,607) (Increase) / decrease in accrued interest 8,641 Increase / (decrease) in unavailable property taxes 104,162 (Increase) / decrease in compensated leave 69,357 (Increase) / decrease in total OPEB liability 8,466,099 (Increase) / decrease in deferred inflows - total OPEB liability (8,906,111) Increase / (decrease) in net OPEB RHIA asset 454,357 Increase / (decrease) in deferred outflows - net OPEB RHIA asset 19,047 (Increase) / decrease in deferred inflows - net OPEB RHIA asset (81,223) (Increase) / decrease in net pension liability (10,135,367) Increase / (decrease) in deferred outflows - net pension liability 2,000,204 (Increase) / decrease in deferred inflows - net pension liability 636,266 (16,748,830) Increase in internal service fund net position 3,272 Total net adjustments - year ended June 30, 2019 (4,347,730) Change in net position of governmental activities - year ended June 30, 2019 $ 18,252,345 See notes to financial statements 32 Totals may not foot due to rounding 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, 2019 Enterprise Funds Fair & Expo Internal Solid Waste Center RV Park Total Service Funds $ 3,695,589 $ 368,034 $ 196,019 $ 4,259,642 7,970,403 780,072 422,531 9,173,005 705,684 98,282 - 803,966 - 29,501 - 29,501 - 197,704 - 197,704 12,371,676 1,473,592 618,549 14,463,818 1,791,352 132,685 - 1,924,037 25,178 24,600 - 49,779 13,533,640 4,605,696 1,556,932 19,696,268 7,052,773 13,158,536 681,912 20,893,222 2,749,684 343,022 - 3,092,706 38,903 - - 38,903 25,191,529 18,264,540 2,238,844 45,694,913 37,563,206 19,738,132 2,857,393 60,158,731 $ 9,101,671 19,648,210 187,076 161,055 29,098,012 24,548 413,005 1,104,861 1,542,415 30,640,427 DEFERRED OUTFLOWS OF RESOURCES 144,937 - 363,363 588,828 288,406 Debt refunding 183,950 3,884 - 187,834 - Net pension liability 641,070 467,252 - 1,108,322 2,787,937 Total deferred outlows of resources 825,020 471,136 - 1,296,156 2,787,937 LIABILITIES 2,338,742 1,153,037 21,613,691 19,189,956 2,843,600 Current liabilities: 23,410,694 (359,503) 592,145 1,559,167 11,117,552 Total net position Accounts payable 368,216 70,803 20,064 459,083 2,219,477 Accrued interest 14,800 900 2,000 17,700 - Unearned revenues - 346,820 4,340 351,160 - Current portion of noncurrent liabilities 685,028 86,335 197,697 969,061 5,226,502 Total current liabilities 1,068,044 504,858 224,102 1,797,003 7,445,979 Noncurrent liabilities: Compensated leave Total OPEB liability 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 218,425 144,937 - 363,363 588,828 288,406 - 877,233 1,718,497 1,252,549 Total OPEB liability 2,971,046 7,850,622 739,185 1,350,734 9,940,541 8,430,568 - - 8,430,568 (685,028) (86,335) (197,697) (969,061) 18,121,912 2,338,742 1,153,037 21,613,691 19,189,956 2,843,600 1,377,139 23,410,694 896,871 1,891,459 7,473,539 7,049,010 (5,226,502) 12,084,378 19,530,357 DEFERRED INFLOWS OF RESOURCES Net pension liability 108,876 79,355 - 188,231 473,488 Total OPEB liability 238,012 116,577 - 354,589 764,552 Total deferred inflows of resources 346,888 195,933 - 542,820 1,238,040 NET POSITION Net investment in capital assets 17,524,858 17,529,239 888,109 35,942,205 1,542,415 Unrestricted 1,326,525 (359,503) 592,145 1,559,167 11,117,552 Total net position $ 18,851,382 $ 17,169,736 $ 1,480,254 $ 37,501,372 $ 12,659,967 See notes to financial statements 33 Totals may not foot due to rounding Deschutes County, Oregon Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2019 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grants Investment earnings Interest expense Total nonoperating revenues (expenses) Income (loss) before transfers Transfers in Transfers out Change in net position Net position - Beginning of year Net position - End of year See notes to financial statements Totals may not foot due to rounding 34 Enterprise Funds Fair & Expo Internal Solid Waste Center RV Park Total Service Funds $ 11,421,763 $ 3,085,338 $ 476,365 $ 14,983,466 $ 38,002,870 11,421,763 3,085,338 476,365 14,983,466 38,002,870 2,516,746 1,689,474 - 4,206,220 10,386,003 4,367,282 2,689,052 276,007 7,332,341 28,130,983 (313,479) - - (313,479) - 2,281,276 692,153 106,244 3,079,673 224,742 8,851,826 5,070,678 382,251 14,304,755 38,741,728 2,569,937 (1,985,340) 94,114 678,711 (738,859) - 107,740 - 107,740 - 291,214 27,229 15,655 334,098 772,113 (195,374) (15,181) (27,421) (237,976) - 95,840 119,788 (11,766) 203,861 772,113 2,665,777 (1,865,552) 82,348 882,573 33,254 - 1,528,079 160,000 1,688,079 334,617 (50,029) - - (50,029) (364,600) 2,615,748 (337,473) 242,348 2,520,623 3,272 16,235,635 17,507,209 1,237,906 34,980,750 12,656,696 $ 18,851,382 $ 17,169,736 $ 1,480,254 $ 375501,372 $ 125659,967 34 Deschutes County, Oregon Proprietary Funds Statement of Cash Flows Year Ended June 30, 2019 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Transfers in Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities 107,740 - 107,740 - 1,528,079 160,000 1,688,079 334,617 (50,029) - - (50,029) (364,600) (50,029) 1,635,819 160,000 1,745,790 (29,983) (981,793) (69,372) - (1,051,165) (325,114) (670,180) (85,695) (195,236) (951,110) - (190,758) (15,441) (27,865) (234,064) - (1,842,731) (170,508) (223,101) (2,236,339) (325,114) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (850,143) (54,862) (36,394) (941,398) 2,312,119 Interest 216,790 19,913 11,700 248,402 583,628 Net cash provided (used) by investing activities (633,353) (34,948) (24,694) (692,996) 2,895,748 Net increase in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Change in operating accruals Receivables Prepaid expenses and inventory Net pension liability Accounts payable Claims payable Unearned revenues Compensated leave Total OPEB liability 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 foot due to rounding 2,186,973 207,994 114,086 2,509,054 4,450,776 1,508,616 160,040 81,933 1,750,589 4,650,896 $ 3,695,589 $ 368,034 $ 196,019 $ 4,259,642 $ 9,101,671 $ 2,569,937 $ (1,985,340) $ 2,281,276 692,153 94,114 $ 678,711 $ (738,859) 106,244 3,079,672 224,742 24,246 (78,671) Enterprise Funds - (21,228) (21,228) 206,289 Fair & Expo - 386,580 (34,505) Internal (487) (24,879) Solid Waste Center RV Park Total Service Funds CASH FLOWS FROM OPERATING 22,018 (5,990) - 16,028 (313,479) - ACTIVITIES $ 4,713,086 $ (1,222,368) $ 201,881 $ 3,692,599 Receipts from customers $ 11,446,009 $ 3,044,302 $ 481,427 $ 14,971,738 $ 37,859,454 Payments to employees (2,331,135) (1,567,405) - (3,898,540) (9,653,775) Payments to suppliers (4,401,787) (2,699,266) (279,546) (7,380,599) (26,295,553) Net cash provided (used) by operating activities 4,713,086 (1,222,368) 201,881 3,692,599 1,910,125 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Transfers in Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities 107,740 - 107,740 - 1,528,079 160,000 1,688,079 334,617 (50,029) - - (50,029) (364,600) (50,029) 1,635,819 160,000 1,745,790 (29,983) (981,793) (69,372) - (1,051,165) (325,114) (670,180) (85,695) (195,236) (951,110) - (190,758) (15,441) (27,865) (234,064) - (1,842,731) (170,508) (223,101) (2,236,339) (325,114) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (850,143) (54,862) (36,394) (941,398) 2,312,119 Interest 216,790 19,913 11,700 248,402 583,628 Net cash provided (used) by investing activities (633,353) (34,948) (24,694) (692,996) 2,895,748 Net increase in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Change in operating accruals Receivables Prepaid expenses and inventory Net pension liability Accounts payable Claims payable Unearned revenues Compensated leave Total OPEB liability 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 foot due to rounding 2,186,973 207,994 114,086 2,509,054 4,450,776 1,508,616 160,040 81,933 1,750,589 4,650,896 $ 3,695,589 $ 368,034 $ 196,019 $ 4,259,642 $ 9,101,671 $ 2,569,937 $ (1,985,340) $ 2,281,276 692,153 94,114 $ 678,711 $ (738,859) 106,244 3,079,672 224,742 24,246 (78,671) (54,426) - (21,228) (21,228) 206,289 180,292 - 386,580 (34,505) 10,113 (487) (24,879) - 37,636 2,010 39,646 (42,696) (51,332) - (94,027) 22,018 (5,990) - 16,028 (313,479) - - (313,479) $ 4,713,086 $ (1,222,368) $ 201,881 $ 3,692,599 (143,416) 7,141 911,635 507,388 1,320,901 (174,370) (5,037) $ 1,910,125 $ 63,172 $ 6,349 $ 3,400 $ 72,921 $ 31,105 35 Deschutes County, Oregon Fiduciary Funds Statement of Assets and Liabilities June 30, 2019 Agency Fund Assets Cash and cash equivalents $ 1,717,428 Investments, at fair value; plus accrued interest 3,707,698 Accounts receivable 19,870 Total assets $ 5,444,996 Liabilities Accounts payable $ 134,923 Due to other governments 2,841,365 Due to others 2,468,708 Total liabilities $ 5,444,996 See notes to financial statements 36 Totals may not foot due to rounding Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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. Indirect expenses, as charged by internal service funds, are included as part of the specific function or segment expenses as shown on the Statement of Activities. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Fiduciary funds are excluded from the government -wide financial statements. Major individual governmental and enterprise funds are reported in separate columns in the fund financial statements. 37 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 Sheriffs 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. 38 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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. Road Capital Improvement Plan. The financial resources, primarily transfers from the Road fund, are used for CIP projects on the County's roads, bridges, culverts, street lighting and drainage. Health Services. The financial resources, primarily fees for services and grants from the State of Oregon and federal government, are used to provide public and mental health services and counseling. 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 pursuant to Oregon Budget Law as adopted under Oregon Revised Statute Chapter 294. Any deviation between Oregon Budget Law and GAAP are treated as reconciling items on the budget to actual schedules. As 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. 39 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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, 2019, 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 cost 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 to fund balance in 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. 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 2-20 Infrastructure 20-50 Intangibles 3-10 40 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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, and 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. Total other post -employment benefits (asset)/liability (Total OPEB (asset)/liability)) The Total OPEB liability is reported as a Non-current Liability in the proprietary statement of net position and in the government -wide statement of net position. The liability reflects the present value of expected future payments for an other post -employment plan that is not associated with any offsetting fiduciary net positions of a trust. 9. Net other post -employment benefits (asset)/liability (Net OPEB (asset)/liability)) The Net OPEB asset or liability is reported as Non-current Asset or as Non-current Liability, as applicable, in the proprietary statement of net position and in the government -wide statement of net position. The asset or liability reflects the present value of expected future payments less the fiduciary net position of the trustee. 10. 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. 11. 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. 41 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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. 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. 12. Tax Abatements 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 2019 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. 42 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 — $1,470,954 Administrative Services — $896,376, Board of County Commissioners - $184,370, Legal — $670,990, Human Resources - $611,286 and Information Technology $1,467,300. For each of these funds, the negative net position balances are due to (1) noncurrent liabilities for compensated absences, (2) total OPEB liability and (3) net pension 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, 2019 as follows: Insured (FDIC) $ 252,495 Collateralized by securities held by the pledging financial institution in the financial institution's name 8,122,738 Total $ 8,375,233 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. 43 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Investments As of June 30, 2019, 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 $ 71,603,968 49,394,090 12,299,011 133,297,068 750,795 $ 134,047,863 Weighted Average Maturity (Days) 263 346 392 305 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 A1/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, 2019, 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, $49,500,000 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, 2019, 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. 44 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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. The OSTF (including LGIP) are not rated by the credit rating agencies; however, it does target a composite rating of AA (S&P) for its holdings. At June 30, 2019, the fair value of the County's position in the pool is the same as the value of the pool shares, which approximates cost; and, the composite credit rating of the OSTF's holdings on June 30, 2019 was AA (S&P). 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, 2019 as follows: Reconciliation of deposits and investments to the Statement of Net Position and Statement of Fiduciary Assets and Liabilities Total deposits $ 7,962,168 Total investments, at fair value plus accrued interest 188,193,860 Total cash and cash equivalents and investments $ 196,156,028 Included in the following captions: Statement of Net Position Cash and cash equivalents $ 60,390,736 Total investments, at fair value; plus accrued interest 130,340,166 Total Statement of Net Position 190,730,902 Statement of Fiduciary Assets and Liabilities - Agency Funds Cash and cash equivalents 1,717,428 Investments, at fair value; plus accrued interest 3,707,698 Total Fiduciary Funds 5,425,126 Total cash and cash equivalents and investments $ 196,156,028 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. 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. 45 As of June 30, 2019 Federal Agency Securities Corporate Notes Municipal Bonds Total as s ets B. Receivables Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) $ 71,603,968 $ - $ 71,603,968 $ - 49,394,090 - 49,394,090 - 12,299,011 - 12,299,011 - $ 133,297,068 $ - $ 133,297,068 $ - 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: Total $ 1,776,425 $ 973,181 $ 2,749,606 $ 8,231,288 $ 3,208,699 $ 115,818 $ 14,305,411 Accounts receivable for unpaid behavioral health services provided in the Health Services major fund have not been accrued and are considered uncollectible. Accounts receivable for outstanding traffic fines and violations in the agency fund have not been accrued and are considered uncollectible. 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, 2019, $2,247,741 is due on contracts from sales of real property and $960,958, net of allowance for uncollectible amounts of $51,500, 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. 46 Property Transient Notes and Taxes Room Taxes Total Taxes Accounts Contracts Assessments Receivable Receivable Receivable Receivable Receivable Receivable Total General Fund $ 724,667 $ - $ 724,667 $ 449,778 $ 2,392,214 $ - $ 3,566,659 Sheriff - - - 392,098 - - 392,098 Countywide Law 587,538 - 587,538 - - - 587,538 Rural Law 249,460 - 249,460 - - - 249,460 Road - - - 323,781 - 115,818 439,599 Health Services - - 5,641,282 - - 5,641,282 Solid Waste - - 705,684 - - 705,684 Fair & Expo - - 98,282 - - 98,282 NonmajorGov't 214,760 973,181 1,187,941 433,305 816,485 - 2,437,731 Internal Service - - - 187,076 - - 187,076 Total $ 1,776,425 $ 973,181 $ 2,749,606 $ 8,231,288 $ 3,208,699 $ 115,818 $ 14,305,411 Accounts receivable for unpaid behavioral health services provided in the Health Services major fund have not been accrued and are considered uncollectible. Accounts receivable for outstanding traffic fines and violations in the agency fund have not been accrued and are considered uncollectible. 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, 2019, $2,247,741 is due on contracts from sales of real property and $960,958, net of allowance for uncollectible amounts of $51,500, 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. 46 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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, 2019 and other items related to the County defined benefit pension plans have been classified as a deferred outflow of resources. Deferred outflows — OPEB RHIA: the contributions made to OPERS for its other post -employment RHIA component during the year ended June 30, 2019. Deferred Outflows of Resources Deferred outflows - Refunding County buildings (FF&C 2003 and FF&C 2019) Total deferred outflows - refunding Deferred outflows - Defined Benefit Pension Plan Differences between expected and actual experience Changes of assumptions Changes in proportionate share Contributions subsequent to the measurement date Total deferred outflows -pension Deferred outflows - OPEB RHIA Contributions subsequent to the measurement date Total deferred outflows of resources 47 Governmental Business -Type Activities Activities Total $ 748,379 $ 187,834 $ 936,213 748,379 187,834 936,213 3,159,049 101,066 3,260,115 21,591,338 690,763 22,282,101 995,002 31,833 1,026,835 8,897,713 284,661 9,182,373 34,643,102 1,108,322 35,751,424 325,768 - 325,768 $ 35,717,249 $ 1,296,156 $ 37,013,405 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 D. Capital Assets Capital asset activity for the year ended June 30, 2019 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 June 30, 2018 Increases Decreases June 30, 2019 $ 13,470,541 $ - $ - $ 13,470,541 2,004,770 7,687,355 (4,665,891) 5,026,234 15,475,311 7,687,355 (4,665,891) 18,496,775 92,155,650 17,034 - 92,172,684 5,001,208 424,066 - 5,425,274 32,058,535 1,236,610 (370,676) 32,924,469 10,037,343 1,979,668 (1,108,381) 10,908,630 115,790,579 3,732,004 - 119,522,583 6,735,912 268,694 - 7,004,606 261,779,227 7,658,076 (1,479,057) 267,958,246 Less accumulated depreciation for: Buildings and improvements (32,271,715) (2,284,067) - (34,555,782) Land improvements (3,069,208) (174,578) - (3,243,786) Equipment (20,097,438) (1,729,665) 300,790 (21,526,313) Vehicles (6,450,104) (922,988) 1,051,662 (6,321,430) Infrastructure (63,857,102) (4,138,305) - (67,995,407) Intangible assets (5,106,599) (326,797) - (5,433,396) Total accumulated depreciation (130,852,166) (9,576,400) 1,352,452 (139,076,114) Total capital assets, being depreciated, net 130,927,061 (1,918,324) (126,605) 128,882,132 Governmental activities capital assets, net $ 146,402,372 $ 5,769,031 $ (4,792,496) $ 147,378,907 48 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, 2019 June 30, 2018 Increases Decreases June 30, 2019 $ 1,924,037 $ - $ - $ 1,924,037 - 49,779 - 49,779 1,924,037 49,779 - 1,973,816 32,501,586 - - 32,501,586 43,506,865 23,380 - 43,530,245 8,404,259 923,707 (12,000) 9,315,966 405,655 30,299 - 435,954 122,034 24,000 - 146,034 84,940,399 1,001,386 (12,000) 85,929,785 (10,878,023) (730,342) - (11,608,365) (21,880,858) (1,953,120) - (23,833,978) (6,028,659) (363,792) 12,000 (6,380,451) (255,665) (23,097) - (278,762) (97,811) (9,321) - (107,132) (39,141,016) (3,079,672) 12,000 (42,208,688) 45,799,383 (2,078,286) - 43,721,097 $ 47,723,420 $ (2,028,507) $ - $ 45,694,913 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 49 $ 2,251,283 2,099,414 4,755,920 245,041 9,351,658 224,742 $ 9,576,400 $ 2,281,275 692,153 106,244 $ 3,079,672 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Operating Leases — County as Lessor of Real Property The County received $1,631,000 in lease rental revenue for the year ended June 30, 2019, and the County expects to receive approximately $2.9 million in lease rental income over the next 5 years under non -cancelable leases which were in effect at June 30, 2019 (FY 20 of $1,557,600 and FY 21 of $1,385,246). 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 $10.1 million as of June 30, 2019, and depreciation expense for Fiscal Year 2019 was $258,000. E. Interfund Activity Interfund Transfers: Transfers In Sheriffs Health PERS Nonmajor Internal Fair & Expo General Office Road CIP Services Reserve Gov't Service RVPark Center Total General Fund $ $ 103,132 $ $ 6,078,223 $ 2,000,000 $ 2,401,750 $ 299,617 $ $ 200,000 $ 11,082,722 Sheriffs Office - - 273,666 - - 273,666 Road 12,464,308 - 12,464,308 Health Services 188,688 - 188,688 Solid Waste 50,029 - - 50,029 Nonmajor Gov't 204,837 3,151,787 929,655 92,437 160,000 1,328,079 5,866,795 Internal Service 329,600 - - - - - 329,600 Total $ 773,154 $ 3,254,919 $ 13,393,963 $ 6,078,223 $ 2,000,000 $ 2,767,852 $ 299,617 $ 160,000 $ 1,528,079 $ 30,255,808 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, 2019, was approximately $454,123. The future minimum lease payments for these leases are as follows: Fiscal Year Ending June 30, Amount 2020 $ 381,761 2021 319,119 2022 263,840 2023 214,906 2024 190,999 Thereafter 138,030 $ 1,508,655 50 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 current legal debt limit for the year ended June 30, 2019 is $824,609,000 for general obligation bonds and $412,304,000 for full faith and credit bonds. Additional information on debt limitations can be found in the Debt Capacity portion of the Statistical Section. The County's June 30, 2019 balances on direct borrowings related to governmental activities and business -type activities are $1,317,527 and $5,964,873, 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 direct borrowing arrangements, including no lines of credit. Full Faith & Credit Obligation and Limited Tax bonds are direct obligations and pledge the full faith and credit of the County. These are serial bonds with original terms ranging from 20 years to 30 years with increasing amounts of principal maturing each year. Full Faith & Credit Obligation, Limited Tax bonds and Notes currently outstanding are as follows: Debt Refinance During Fiscal Year 2019, the County incurred Full Faith & Credit debt (Series 2019; "New Refunding Debt") to extinguish its obligation under two separate Full Faith & Credit obligations (Series 2008 and Series 2009; "Existing Debt") through the use of a current refunding debt issuance. The current refunding was initiated to pursue cost savings in relation to the favorable interest rates currently available. Present Value Existing Debt Existing Debt Existing Debt Net Balance at Purpose Interest Rates June 30, 2019 Bonds and Notes Payments Made Cash Flow Debt Service Savings Bonds - Governmental activities 2.00% - 6.85% $ 39,048,625 Notes - Governmental activities 1.99% -2.49% $(3,085) 1,317,527 Bonds - Business -Type activities 1.68% -4.00% 907,750 3,874,990 Notes - Business -Type activities 1.68% - 2.49% 5,964,873 908,500 104,750 100,570 $ 50,206,015 Debt Refinance During Fiscal Year 2019, the County incurred Full Faith & Credit debt (Series 2019; "New Refunding Debt") to extinguish its obligation under two separate Full Faith & Credit obligations (Series 2008 and Series 2009; "Existing Debt") through the use of a current refunding debt issuance. The current refunding was initiated to pursue cost savings in relation to the favorable interest rates currently available. Present Value * Present value savings calculated using the arbitrage yield rate of 1.8425906% 51 Existing Debt Existing Debt Existing Debt Net New Refunding Cash Flow (Economic) Date Service Payments Made Cash Flow Debt Service Savings Savings* 6/30/2019 $838,825 $767,999 $70,826 $70,826 $ - $(3,085) 6/30/2020 1,016,050 - 1,016,050 907,750 108,300 105,897 6/30/2021 1,013,250 - 1,013,250 908,500 104,750 100,570 6/30/2022 1,013,633 - 1,013,633 907,750 105,883 99,815 6/30/2023 1,011,989 - 1,011,989 910,500 101,489 93,937 6/30/2024 1,013,781 - 1,013,781 911,500 102,281 92,953 6/30/2025 1,013,625 - 1,013,625 910,750 102,875 91,796 6/30/2026 1,010,800 - 1,010,800 908,250 102,550 89,842 6/30/2027 1,011,083 - 1,011,083 904,000 107,083 92,105 6/30/2028 1,009,220 - 1,009,220 903,000 106,220 89,700 $9,952,255 $767,999 $9,184,256 $8,242,826 $941,430 $853,530 * Present value savings calculated using the arbitrage yield rate of 1.8425906% 51 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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, 2019, are as follows: Governmental activities: Claims Internal service funds Pension obligation bonds Full faith & credit obligations Unamortized prem/ (disc) Direct borrowings Compensated absences Governmental funds Internal service funds Business -type activities: Full faith & credit obligations Unamortized prem/ (disc) Direct borrowings Compensated absences Landfill closure and postclosure Due Within June 30, 2018 Increases Decreases June 30, 2019 One Year $ 5,728,109 $ 19,245,310 $ (17,924,409) $ 7,049,010 $ 4,482,099 9,521,753 - (423,139) 9,098,615 503,615 32,828,494 6,455,000 (9,333,484) 29,950,010 1,906,091 678,738 1,057,684 (170,087) 1,566,336 146,621 1,524,633 - (207,106) 1,317,527 209,448 8,434,529 8,281,182 (8,350,539) 8,365,172 7,695,958 1,071,241 832,518 (1,006,888) 896,871 825,121 $ 59,787,498 $ 35,871,694 $ (37,415,652) $ 58,243,540 $ 15,768,953 $ 4,091,506 $ - $ (216,516) $ 3,874,990 107,870 - (7,191) 100,678 6,699,467 - (734,594) 5,964,873 457,390 224,735 (318,763) 363,363 8,744,046 - (480,724) 8,263,322 $ 20,100,279 $ 224,735 $ (1,757,788) $ 18,567,226 223,909 7,191 745,152 334,294 $ 1,310,546 During Fiscal Year 2019, $9,676,000 was paid in compensated leave — $1,953,000 from Sheriff's Office, $2,696,000 from Health Services, $968,000 from General Fund, $669,000 from Road Department, $548,000 from Deschutes County 9-1-1, $511,000 from Juvenile Community Justice, $584,000 from Community Development, $358,000 from Adult Parole & Probation $1,007,000 from internal service funds, $319,000 from enterprise funds and the remaining $63,000 from other special revenue funds. The Claims liability is reported in two of the County's internal service funds — Risk Management and Health Benefits Fund. The liability will be liquidated 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 2019 the Sheriff s Office, Health Services, General, Internal Service Funds, DC 9-1-1 and Road provided 27%, 25%, 14%, 9%, 6% and 5%, respectively. The remaining 14% 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. 52 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Debt Service Requirements Debt service requirements on the County bonds and notes at June 30, 2019, are as follows: 53 Governmental Activities Bonds Notes fromDirect Borrowings Principal Interest Principal Interest Fiscal Year 2020 $ 2,409,706 $ 1,884,866 $ 209,448 $ 24,135 2021 2,779,600 1,577,011 213,909 19,922 2022 2,968,159 1,456,685 214,077 19,587 2023 3,169,824 1,320,507 221,493 14,177 2024 3,249,375 1,173,054 225,954 8,606 2025-2029 15,393,265 3,502,793 232,646 2,896 2030-2034 7,123,695 1,026,704 - - 2035-2039 1,955,000 224,775 - - Total $ 39,048,625 $ 12,166,394 $ 1,317,527 $ 89,324 Business -Type Activities Bonds Notes from Direct Borrowings Principal Interest Principal Interest Fiscal Year 2020 $ 223,909 $ 112,273 $ 745,152 $ 102,271 2021 230,400 106,578 760,691 89,079 2022 236,841 100,605 767,523 79,633 2023 245,176 93,185 785,107 65,065 2024 255,625 85,086 799,246 50,175 2025-2029 1,396,735 307,123 2,107,154 67,621 2030-2034 1,286,305 82,632 - - Total $ 3,874,990 $ 887,482 $ 5,964,873 $ 453,843 53 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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: 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 inflows - Defined Benefit Pension Plan Changes in proportionate share Net difference between projected and actual earnings on investments Differences between employer contributions and employer's proportionate share of system contributions Deferred inflows - OPEB County Plan Differences between expected and actual experience Changes of assumption or other inputs Deferred inflows - OPEB RHIA Differences between expected and actual experience Changes of assumptions Changes in proportionate share Net difference between projected and actual earnings on investments Total deferred inflows of resources 54 Governmental Business -Type Deferred Inflows of Resources Activities Activities Total Total Deferred $ 19,685 $ 634,977 Special Contracts of Inflows of 1,144,490 Property Taxes Assessments Sale Resources General Fund $ 645,007 $ - $ 2,247,741 $ 2,892,748 Countywide LID 522,759 - - 522,759 Rural LID 222,275 - - 222,275 Road - 115,818 - 115,818 Health Services - - - - Nonmajor funds 191,862 - - 191,862 Total Deferred Inflows of Resources $ 1,581,903 $ 115,818 $ 2,247,741 $ 3,945,462 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 inflows - Defined Benefit Pension Plan Changes in proportionate share Net difference between projected and actual earnings on investments Differences between employer contributions and employer's proportionate share of system contributions Deferred inflows - OPEB County Plan Differences between expected and actual experience Changes of assumption or other inputs Deferred inflows - OPEB RHIA Differences between expected and actual experience Changes of assumptions Changes in proportionate share Net difference between projected and actual earnings on investments Total deferred inflows of resources 54 Governmental Business -Type Activities Activities Total $ 615,292 $ 19,685 $ 634,977 4,123,808 131,931 4,255,739 1,144,490 36,615 1,181,105 4,001,474 146,720 4,148,194 5,669,189 207,869 5,877,058 40,074 - 40,074 2,244 - 2,244 5,761 - 5,761 152,451 - 152,451 $ 15,754,783 $ 542,820 $ 16,297,603 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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). 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 and Road CIP fund balances are 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 2020 and beyond. 6SI Major Special Revenue Funds General Fund LED #1 LED #2 Road Road CIP Health Services PERS Reserve Other Funds Total Fund Balances: Nonspendable: Long-term notes receivable $ 144,473 $ - $ - $ - $ - $ - $ - $ - $ 144,473 Inventory - 2,475,033 2,475,033 Total Nonsp endable 144,473 2,475,033 2,619,506 Restricted to: Public safety - 9,807,414 7,135,202 - 11,401,392 28,344,009 Economic development - - 3,590,555 3,590,555 Health services 18,496,423 68,710 18,565,133 General government - 8,890,211 8,890,211 Marketing & promotion 152,550 152,550 Law library 319,328 319,328 Park development and rangeland 1,499,990 1,499,990 Technology improvements - 342,898 342,898 Road improvement and maintenance 10,256,589 17,794,245 4,302,355 32,353,189 Total Restricted 9,807,414 7,135,202 10,256,589 17,794,245 18,496,423 30,567,990 94,057,863 Committed to: Economic development 106,141 - - - - - - 106,141 Economic stabilization - 16,402,758 16,402,758 Court activities 144,502 144,502 Health services 3,066 3,066 Debt service 837,063 837,063 Communication systems - 163,234 163,234 Expansion of facilities 12,941,872 12,941,872 Total Committed 13,048,013 16,402,758 1,147,865 30,598,638 Assigned to: Public safety 1,298,663 - 1,298,663 General government 3,001,845 3,001,845 Technology improvements 1,321,950 1,321,950 Fleet repair & replacement 1,120,585 1,120,585 Total Assigned 6,743,043 6,743,043 Unassigned: 12,458,530 12,458,530 Total Fund Balance $ 32,394,059 $ 9,807,414 L-1-1 35,202 $ 12.731.621 L-12 794 245 $18,496,423 $ 16,402,758 $ 31,715,855 $ 146.477,578 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 and Road CIP fund balances are 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 2020 and beyond. 6SI Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Amounts in the assigned fund balance classification are intended to be used by the County for specific purposes but do not meet the criteria to be classified as committed. The Board of County Commissioners has, by resolution, assigned fund balance as it does when appropriating fund balance for the difference between estimated revenues and appropriations in the subsequent year's adopted budget. Unlike commitments, assignments generally exist only temporarily. Additional action does not have to be taken to remove an assignment. Fund balances, as listed in aggregate in the Statement of Revenues, Expenditures and Changes in Fund Balance, are constrained to the balance classification and activities of the funds. Constraints are at the level of which the fund was originally established. The County has activity between funds for various purposes. Any balances outstanding at year end are reported as due 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 27th Street, and four transfer and recycle stations located throughout the County. The accumulation of resources that will be required for the closure and postclosure costs associated with the sanitary landfill are also accounted for in the Solid Waste Fund. The operations of the County's Fair & Expo Center, including the annual county fair, are accounted for in the Fair & Expo Center Fund. 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. 56 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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, 2019 of $1,789,500. The net position of the Health Benefits fund (medical/dental) at June 30, 2019, is $14,683,000 which is 84% of Fiscal Year 2019 claims expense. Changes in the Insurance Funds' claim liabilities are as follows: Claims payable, June 30, 2017 FY2018 claims expense FY2018 claims paid Claims payable, June 30, 2018 FY 2019 claims expense FY2019 claims paid Claims payable, June 30, 2019 B. Contingent Liabilities and Commitments Insurance Health Benefits Total 4,210,825 $ 2,107,940 $ 6,318,765 2,053,932 16,226,273 18,280,205 (1,308,639) 0 7,562,221) (18,870,860) $ 4,956,117 $ 771,992 $ 5,728,109 1,801,429 17,443,881 19,245,310 (1,623,724) ( 16,300,685) (17,924,409) $ 5,133,822 $ 1,915,188 $ 7,0491010 The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. Claims covered by the County's self-insurance are reviewed and losses are accrued based on the judgment of County management. According to County management, based on advice of legal counsel with respect to such litigation and claims, ultimate disposition of these matters will not have a material adverse effect on the financial position or results of County operations. Additional contingent liabilities may exist in relation to operational services provided by the Health Services Department. The Department is subject to numerous laws and regulations of federal, state, and local governments surrounding its clinical billing practices (i.e. Medicare, Medicaid, etc). As it stands, the County is unable to determine if its billing practices will be reviewed for compliance and if any liability may result from such a review. The County's current practice is to adjust revenue in the year of settlement for any claims of this type. As of June 30, 2019, the County had no material commitments outstanding. 6711 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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: www.oregon.goy/pers/Documents/Financials/CAFR/2018-CAFR.pdf Benefits Provided Under the Programs 58 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. 58 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 (RHIA). 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, 2019 were $9,182,373, 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, 2019 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, 2019, the County reported a liability of $95,837,777 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2016 and rolled forward to June 30, 2018. 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. 59 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 238.360 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 (RHIA). 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, 2019 were $9,182,373, 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, 2019 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, 2019, the County reported a liability of $95,837,777 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2016 and rolled forward to June 30, 2018. 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. 59 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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. As presented, on June 30, 2019 (measurement date of June 30, 2018), the County's proportion was 0.63264759 percent, which was an increase of 1.64% from its proportion presented on June 30, 2018 (measurement date of June 30, 2017). For the year ended June 30, 2019, the County recognized a pension expense of $17,941,097. At June 30, 2019, 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. Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on investments Changes in proportionate share Contributions made to the plan subsequent to measurement date Differences between employer contibution and employer's proportionate share of system contributions Net Deferred Outflow of Resources Less: Contributions Made Subsequent to Measurement Date 60 Deferred Deferred Outflows of Inflows of Resources Resources 3,260,115 $ - 22,282,101 - - 4,255,739 1,026,835 634,977 9,182,373 - - 1,181,105 $ 35,751,424 $ 6,071,821 $ 29,679,603 9,182,373 $ 20,497,230 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 The County's contributions made subsequent to the measurement date will be recognized in the County's pension expense in the following year. The net amount of the County's remaining deferred outflows of resources and deferred inflows of resources that will be recognized in the County's pension expense in the subsequent five years in the aggregate are shown in the table below. 1st Fiscal Year - Fiscal Year 2020 $ 11,415,021 2nd Fiscal Year - Fiscal Year 2021 8,133,363 3rd Fiscal Year - Fiscal Year 2022 (954,300) 4th Fiscal Year - Fiscal Year 2023 1,311,266 5th Fiscal Year - Fiscal Year 2024 591,880 Total $ 20,497,230 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, 2016 actuarial valuation are shown below: Actuarial Methods and Assumptions: Valuation Date December 31, 2016 Measurement Date June 30, 2018 Experience Study 2016, published July 26, 2017 Actuarial Assumptions: Actuarial Cost Method Entry Age Normal Inflation Rate 2.50 percent Investment Rate of Return 7.20 percent Discount Rate 7.20 percent Projected Salary Increases 3.50 percent Blend of 2.00% COLA and graded COLA (1.25%/0.15%) Cost of living adjustments in accordance with Moro Decision; blend based on service Healthy retirees and beneficiaries: RP -2014 Healthy annuitant, sex -distinct, generational with Unisex, Social Security Data Scale, with collar adjustments and set -backs as described in the valuation. Active members: Mortality RP -2014 Employees, sex -distinct, generational with Unisex, Social Security Data Scale, with collar adjustments and set -backs as described in the valuation. Disabled retirees: RP -2014 Disabled retirees, sex -distinct, generational with Unisex, Social Security Data Scale. 61 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 2016 experience study which reviewed experience for the four-year period ended December 31, 2016. The long-term expected rate of return on plan investments was developed based on the forward looking capital market economic model. The table below presents the assumptions related to asset allocation and expected rates of return by major asset class using the 50"' percentile. The target allocation and best estimates of arithmetic real rates of return for each major class are summarized in the following table: Asset Class 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 7.20 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 7.20 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 (6.20 percent) or 1 -percentage point higher (8.20 percent) than the current rate: 1% Decrease Discount Rate 1% Increase (6.20%) (7.20%) (8.20%) Proportionate share of net pension liability $ 160,163,031 $ 95,837,777 $ 42,742,544 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS financial report that can be found at http://www.oregon.goy/pers. 62 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 Retirement Health Insurance Account (RHIA). The second is a single employer defined benefit postemployment healthcare plan administered by the County known as the County Plan. OPEB Activity and Balances for the Year Ended June 30, 2019 (RHIA & County Plan): Category Total OPEB Liability Net OPEB Asset Deferred Outflows Contributions subsequent to the measurement date Deferred Inflows Net difference between projected and actual earnings on investments Changes in proportionate share Differences between expected and actual experience Changes of assumption or other inputs Deferred hiflows - Total OPEB Expenses (Income) RHIA County Plan 707,109 325,768 152,451 5,761 40,074 2,244 Total 24,801,912 $ 24,801,912 - 707,109 4,148,194 5,877,058 325,768 152,451 5,761 4,188,268 5,879,302 $ 200,530 $ 10,025,252 $ 10,225,782 (69,089) $ 1,530,977 $ 1,461,888 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. 63 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Contributions Participating public employers are contractually required to contribute to RHIA at a rate assessed each biennium by OPERS. For fiscal year 2019 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 (service cost) and the amortization of any unfunded accrued liability of the plan. The unfunded accrued liabilities are amortized over a closed period equal to the average of the expected remaining lives of all employees that are provided with OPEB through the OPEB plan (active employees and inactive employees). The County's contributions to RHIA were consistent with the net -retiree healthcare rate as charged by OPERS. Amounts paid for RHIA during fiscal year 2019, 2018, and 2017 were $325,768, $304,046, and $301,513, respectively. Actuarial methods and assumptions for the RHIA plan mirror those of the PERS retirement system itself and can be found in footnote 4.C. 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 2019 is .63345589%. 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 .60562393% in the prior measurement period. The following presents the County's proportionate share of the net OPEB liability (asset) for the RHIA calculated using the discount rate of 7.20 percent as well as what the County's proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1 -percentage point lower (6.20 percent) or 1 -percentage point higher (8.20 percent) than the current rate: Proportionate share of net RHIA OPEB liability (asset) 1% Decrease (6.20%) $ (411,713) Discount Rate (7.20%) $ (707,109) 1% Increase (8.20%) $ (958,549) 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 4.C. 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 OPEB 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 2020 $ 66,885) FY 2021 66,636) FY 2022 51,853) FY 2023 15,156) FY 2024 - Thereafter - Total $ 200,530 64 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Other Post -Employment Benefits (OPEB) - Deschutes County Plan Plan Description The Deschutes County Retiree Health Plan is a single -employer defined benefit postemployment healthcare plan that provides medical benefits to eligible retired employees of Deschutes County and Deschutes County 9-1-1 Service District and their beneficiaries. The plan has two components: the Self -Pay Health Plan (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 Employee Benefit Advisory Committee (EBAC) and approved by the Board of County Commissioners. The schedule of retiree premiums and County contributions is shown below for calendar year 2019. Rates Active Employee Monthly Standard Plan High Deductible Dental Plan Premiums: $77.00 Plan $1,493.00 Composite Rate $1,534.61 $933.19 $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 65 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, 2019 As of June 30, 2019, there were 989 active employees that could be eligible for the plan. As of that date, 63 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 Total OPEB Liability of the plan and the annual OPEB expense of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of changes in the County's Total OPEB Liability, presented as required supplementary information, presents trend information about whether the Total OPEB Liability is increasing or decreasing over time relative to the covered -employee payroll. 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 3.50% investment return; an assumed inflation rate of 2.50%; an insurance premium annual trend rate of 5.00% into perpetuity; a retiree health claims annual trend rate of 5.00% into perpetuity; and retirement rates used by Oregon PERS adjusted for County trends. 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. The annual salary increase for employees are assumed to be 3.50% in all future years. Rates of withdrawal and mortality are generally the same rates that were used in the December 31, 2016 actuarial valuation of the Oregon Public Employees Retirement System as referenced in the PERS footnote 4.C. The actuarial cost method used in the valuation of this plan is the Entry Age Normal Method. Under this method, the actuarial present value of the projected benefits of each active employee included in the valuation is allocated on a level dollar basis over the service of the active employee between assumed Entry Age (date of hire) and assumed Exit Age(s). The portion of this actuarial present value allocated to the valuation year is called the service cost for that active employee. The sum of these individual service costs is the Plan's Service Cost for the valuation year. The present value of benefits for current retirees plus the accumulated value of all prior service costs is the Total OPEB Liability. Under this method, the actuarial gains (losses), as they occur, reduce (increase) the Total OPEB Liability. The Deschutes County Retiree Health Plan is deemed "unfunded" in accordance with the relevant GASB statements. Changes in Total OPEB Liability Category County Plan Balance at 06/30/2018 $ 34,376,161 Changes for the year Service cost 1,339,312 Interest 1,184,266 Change in assumptions or other inputs (6,458,946) Differences between expected and actual experience (4,558,907) Benefit payments (1,079,974) Net changes (9,574,249) Balance at 06/30/2019 66 24,801,912 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 2.50% (3.50%) 4.50% Total OPEB Liability on June 30, 2019 $27,241,953 $24,801,912 $22,563,054 Current Health Care 1% Decrease Trend Rates 1% Increase Total OPEB Liability on June 30, 2019 $21,767,960 $24,801,912 $28,423,599 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 deferred outflows of resources and deferred inflows of resources that will be recognized in the County's OPEB expense in the subsequent five years, and in the aggregate, are shown in the table below. Employer subsequent fiscal years Deferred Outflow/(Inflow) of Resources (prior topost-measurement date contributions FY 2020 $ 992,601 FY 2021 992,601 FY 2022 992,601 FY 2023 992,601 FY 2024 992,601 Thereafter 5,062,247 Total $ 10,025,252 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 $17,199,807 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 $2,136,244 and $1,266,606, respectively. The amount of closure and postclosure costs to recognize each year is based on engineering estimates of capacity remaining at the landfill. By estimating the capacity remaining at the landfill instead of calculating the capacity used, based on the cubic feet of material added during the year, the County is better able to recognize the benefit of natural compression occurring within the solid waste cells. Through June 30, 2019, $11,170,283 has been recognized as expense and $2,739,715 has been paid, resulting in a Closure / Post - Closure liability of $8,430,568 at June 30, 2019. Based on current estimated costs, an additional $9,432,374 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. 67 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 F. Fund Structure The County maintains certain additional sub -funds for specific management needs. These sub -funds are consolidated into the appropriate fund for financial reporting purposes as required by generally accepted accounting principles. Major Funds — Governmental General Fund — accounts for the financial operations of the County which are not accounted for in any other fund. Principal sources of revenues are property taxes and revenues from the State of Oregon and Federal government. Expenditures are primarily for general government activities including assessment, taxation, district attorney, and county clerk. Sub -funds of the General Fund: Economic Development — loan repayment and interest revenues for loans and grants to business and not-for-profit entities. Court Technology Reserve — transfers in and available resources for upgrades to Video Arraignment equipment. 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 a loan to the Humane Society of Redmond, were paid off in September 2018 and this fund has subsequently been inactivated. 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 Sheriffs 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. Road Capital Improvement Plan - resources from inter -fund transfers for Road's Capital Improvement Plan. Health Services— fees for services, Federal and State grants for community wide health care, mental health services and counseling. 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. 68 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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. RV Park — charges for space rental and transfers for the operation and maintenance of the County's recreational vehicle park and debt service. Nonmaior 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. 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. 69 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 Nonmajor Governmental Funds (continued) Special Revenue Funds (continued) 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 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. 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. V17 Deschutes County, Oregon Notes to Financial Statements June 30, 2019 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 — interfund 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 — interf ind charges for general liability, property, vehicle, workers' compensation and unemployment insurance. Health Benefits — interfund charges for medical and dental insurance. 71 Required Supplementary Information As of and for the Year Ended June 30, 2019 Deschutes County, Oregon Deschutes County, Oregon Schedule of Proportionate Share of the Net Pension Liability (Asset) Oregon Public Employees Retirement System Last Five Fiscal Years* Proportion of the net pension liability (asset) Proportionate share of the net pension liability (asset) Covered payroll Proportionate share of the net pension liability (asset) as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability 2015 2016 2017 2018 2019 0.61% 0.64% 0.62% 0.62% 0.63% $ (13,913,943) $ 36,983,685 $ 93,391,575 $ 83,905,406 $ 95,837,777 54,795,204 57,047,593 59,420,146 62,715,717 67,091,346 -25.39% 64.83% 157.17% 133.79% 142.85% 103.59% 91.88% 80.53% 83.12% 82.07% * 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. 72 Deschutes County, Oregon Schedule of Net Pension Liability (Asset) Employer Contributions Oregon Public Employees Retirement System Last Five Fiscal Years* * 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. 73 2015 2016 2017 2018 2019 Contractually required contributions $ 5,258,200 $ 5,785,558 $ 5,971,466 $ 8,534,158 $ 9,182,373 Contributions in relation to the contractually required contribution 5,258,200 5,785,558 5,971,466 8,534,158 9,182,373 Contribution deficiency (excess) - - - - - County's covered payroll 57,047,593 59,420,146 62,715,717 67,091,346 72,086,900 Contributions as a percentage of covered payroll 9.22% 9.74% 9.52% 12.72% 12.74% * 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. 73 Deschutes County, Oregon Schedule of Changes in the County's Total OPEB Liability Deschutes County Plan Last Two Fiscal Years* Covered -employee payroll Total OPEB liability as a percentage of covered -employee payroll 65,409,667 69,941,231 52.6% 35.5% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available * * The Deschutes County Plan is NOT administered through a trust and, as such, assets have not been deposited with a trustee. 74 2018 2019 Service cost $ 1,756,755 $ 1,339,312 Interest 1,152,108 1,184,266 Changes of assumptions and other inputs - (11,017,853) Benefit payments 1,428,996 1,079,974 Net change in OPEB liability 1,479,867 (9,574,249) Total OPEB liability - beginning 32,896,294 34,376,161 Total OPEB liability - ending 34,376,161 24,801,912 Covered -employee payroll Total OPEB liability as a percentage of covered -employee payroll 65,409,667 69,941,231 52.6% 35.5% * Schedule is intended to show information for 10 years. Additional years will be displayed as they become available * * The Deschutes County Plan is NOT administered through a trust and, as such, assets have not been deposited with a trustee. 74 Deschutes County, Oregon Schedule of the Proportionate Share of the Net OPEB Liability (Asset) Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Three Fiscal Years* * 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. IL.7 2017 2018 2019 Proportion of the net OPEB liability (asset) 0.62% 0.61% 0.63% Proportionate share of the net OPEB liability (asset) $ 167,543 $ (252,752) $ (707,109) Covered payroll 59,447,651 62,728,445 67,106,755 Proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll 0.28% -0.40% -1.05% Plan fiduciary net position as a percentage of the total OPEB liability 94.15% 108.88% 123.99% * 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. IL.7 Deschutes County, Oregon Schedule of Net OPEB Liability (Asset) Employer Contributions Oregon Public Employees Retirement System (OPEB-RHIA Component) Last Three Fiscal Years* 76 2017 2018 2019 Contractually required contribution $ 301,513 $ 304,046 $ 325,768 Contributions in relation to the contractually required contribution 301,513 304,046 325,768 Contribution deficiency (excess) - - - County's covered payroll 62,728,445 67,106,755 72,086,900 Contributions as a percentage of covered payroll 0.48% 0.45% 0.45% * 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. 76 Deschutes County, Oregon General Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Taxes - property Licenses and permits Investment earnings Charges for services Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental: General government Assessor Clerk and Elections Board of Property Tax Appeal District Attorney Medical Examiner Tax Office Property Management Administration Health and Welfare Veterans' Services Not allocated to organizational units: Materials and services Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Economic Development Court Technology Reserve Assessment,Taxation & Clerk Reserve Project Development General County Projects General Capital Reserve Community Justice Juvenile Code Abatement Vehicle Maintenance & Replacement Total fund balance, GAAP basis - End of Year Budgeted Amounts Original Budget Final Budget $ 27,741,885 32,575 213,000 1,936,595 3,775,231 326,122 34,025,408 $ 27,741,885 32,575 213,000 1,936,595 4,014,613 326,122 34,264,790 Aetnal $ 28,341,709 33,550 423,452 1,954,514 4,152,404 289,065 35,194,693 Variance with Final Budget $ 599,824 975 210,452 17,919 137,791 (37,057) 929,903 4,802,451 4,802,451 4,530,558 271,893 1,845,478 1,854,398 1,598,764 255,634 73,125 73,125 69,565 3,560 7,133,550 7,372,932 6,993,244 379,688 173,129 173,129 160,296 12,833 872,020 872,020 779,330 92,690 287,858 287,858 278,966 8,892 572,287 572,287 539,026 33,261 1,401,829 1,477,829 1,456,326 21,503 18,403,681 18,403,681 18,380,604 23,077 9,350,000 9,265,080 - 9,265,080 44,915,408 45,154,790 34,786,680 10,368,110 (10,890,000) (10,890,000) 408,013 11,298,013 10,890,000 10,890,000 12,018,699 1,128,699 $ - $ - 12,426,713 $ 12,426,713 Totals may not foot due to rounding 77 31,817 250,614 183,062 1,138,889 1,425,189 1,469,330 12,941,872 1,298,663 107,326 1.120585 $ 32,394,059 Deschutes County, Oregon Deschutes County Sheriffs Office Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 78 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 407,600 $ 407,600 $ 521,478 $ 113,878 Charges for services 510,844 510,844 566,710 55,866 Contributions and donations 61,100 61,100 54,280 (6,820) Other 9,000 9,000 70,493 61,493 Intergovernmental 39,225,525 39,283,225 37,259,683 (2,023,542) Transfers in 3,254,919 3,254,919 3,254,919 - Total revenues 43,468,988 43,526,688 41,727,563 (1,799,125) EXPENDITURES Current - departmental: Public Safety 42,695,322 42,753,022 41,453,897 1,299,125 Not allocated to organizational units: Transfers out 273,666 273,666 273,666 - Contingency 500,000 500,000 - 500,000 Total expenditures 43,468,988 43,526,688 41,727,563 1,799,125 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 foot due to rounding 78 Deschutes County, Oregon Countywide Law Enforcement County Service District Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 79 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Taxes - property $ 25,092,245 $ 25,092,245 $ 25,542,586 $ 450,341 Investment earnings 145,000 145,000 288,269 143,269 Total revenues 25,237,245 25,237,245 25,830,855 593,610 EXPENDITURES Current - departmental: Public Safety 25,797,952 25,797,952 23,877,524 1,920,428 Not allocated to organizational units: Contingency 6,368,759 6,368,759 - 6,368,759 Total expenditures 32,166,711 32,166,711 23,877,524 8,289,187 Net change in fund balance (6,929,466) (6,929,466) 1,953,331 8,882,797 Fund balance - Beginning of year 6,929,466 6,929,466 7,835,348 905,882 Fund balance - End of year $ - $ - 9,788,679 $ 9,788,679 Unrealized gain (loss) on investments 18,735 Total fund balance, GAAP basis - End of Year $ 9,807,414 Totals may not foot due to rounding 79 Deschutes County, Oregon Rural Law Enforcement County Service District Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 80 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Taxes - property $ 10,193,598 $ 10,193,598 $ 10,351,818 $ 158,220 Investment earnings 120,000 120,000 193,301 73,301 Total revenues 10,313,598 10,313,598 10,545,119 231,521 EXPENDITURES Current - departmental: Public safety 10,898,791 10,898,791 10,541,670 357,121 Not allocated to organizational units: Contingency 6,323,148 6,323,148 - 6,323,148 Total expenditures 17,221,939 17,221,939 10,541,670 6,680,269 Net change in fund balance (6,908,341) (6,908,341) 3,450 6,911,791 Fund balance - Beginning of year 6,908,341 6,908,341 7,118,495 210,154 Fund balance - End of year $ - $ - 7,121,945 $ 7,121,945 Unrealized gain (loss) on investments 13,257 Total fund balance, GAAP basis - End of Year $ 7,135,202 Totals may not foot due to rounding 80 Deschutes County, Oregon Road Department Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 81 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Special assessments $ - $ - $ 60,172 $ 60,172 Investment earnings 178,000 178,000 312,016 134,016 Rents 1,000 1,000 1,122 122 Charges for services 1,453,353 1,453,353 1,481,348 27,995 Other 70,000 70,000 6,679 (63,321) Intergovernmental 21,192,070 21,192,070 21,250,155 58,085 Total revenues 22,894,423 22,894,423 23,111,492 217,069 EXPENDITURES Current - departmental: County roads 15,715,681 15,715,681 14,765,495 950,186 Not allocated by organizational units: Transfers out 12,464,308 12,464,308 12,464,308 - Contingency 5,608,278 5,608,278 - 5,608,278 Total expenditures 33,788,267 33,788,267 27,229,803 6,558,464 Net change in fund balance (10,893,844) (10,893,844) (4,118,312) 6,775,532 Fund balance - Beginning of year 10,893,844 10,893,844 14,354,580 3,460,736 Fund balance - End of year $ - $ - 10,236,268 $ 10,236,268 Unrealized gain (loss) on investments 20,320 Inventory 2,475,033 Total fund balance, GAAP basis - End of Year $ 12,731,621 Totals may not foot due to rounding 81 Deschutes County, Oregon Health Services Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Licenses and permits Investment earnings Rents Charges for services Contributions and donations Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental Health and human services Not allocated to organizational units Transfers out 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 Original Budget Final Budget Actual Variance with Final Budget $ 165,903 $ 165,903 $ 164,313 $ (1,590) 263,000 263,000 375,282 112,282 9,000 9,000 10,122 1,122 2,312,757 2,312,757 2,723,476 410,719 443,734 443,734 455,351 11,617 32,202,392 32,812,073 37,143,748 4,331,675 6,078,223 6,078,223 6,078,223 - 41,475,009 42,084,690 46,950,516 4,865,826 46,062,224 46,671,905 40,748,474 5,923,431 188,688 188,688 188,688 - 4,562,986 4,562,986 - 4,562,986 50,813,898 51,423,579 40,937,162 10,486,417 (9,338,889) (9,338,889) 6,013,354 15,352,243 11,228,202 11,228,202 12,451,013 1,222,811 $ 1,889,313 $ 1,889,313 Totals may not foot due to rounding 82 18,464,367 $ 16,575,054 32,056 $ 18,496,423 Deschutes County, Oregon PERS Reserve Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 83 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Investment earnings $ 195,000 $ 195,000 $ 330,480 $ 135,480 Transfers in 2,000,000 2,000,000 2,000,000 - Total revenues 2,195,000 2,195,000 2,330,480 135,480 EXPENDITURES Current - departmental: General services 503,350 503,350 469,312 34,038 Total expenditures 503,350 503,350 469,312 34,038 Net change in fund balance 1,691,650 1,691,650 1,861,168 169,518 Fund balance - Beginning of year 14,511,949 14,511,949 14,510,997 (952) Fund balance - End of year $ 16,203,599 $ 16,203,599 16,372,165 $ 168,566 Unrealized gain (loss) on investments 30,593 Total fund balance, GAAP basis - End of Year $ 16,402,758 Totals may not foot due to rounding 83 Deschutes County, Oregon Notes to Required Supplementary Information June 30, 2019 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 each of these funds are combined with the General Fund. Additional adjustments made from the Budgetary Basis of Accounting to GAAP include the recognition of unrealized gain/loss on investments and the consumption of inventories. Note 2 — Stewardship, Compliance and Accountability The Board of County Commissioners adopts a resolution authorizing appropriations, which establishes the level by which expenditures cannot lawfully exceed appropriations. Within the General Fund, legal appropriations are established at the department -level for programmatic appropriation (i.e. personnel services, materials & services, and capital outlay) with the remaining appropriation allocated against the fund, in its entirety, as debt service, transfers to other funds, and contingency. Remaining County funds are not appropriated by department -level, instead each fund is legally authorized appropriations against programmatic, debt service, transfers to other funds, and contingency. Note 3 — Pension Plan Separately Issued Report — Oregon Public Employees Retirement System Information concerning the State of Oregon Public Employee Retirement System's fiduciary performance can be found at www.oreizon.izov/Ders. Note 4 — Other Post Employment Benefit Separately Issued Report — RHIA Information concerning the State of Oregon Public Employee Retirement System Retiree Health Insurance Account's (RHIA's) fiduciary performance can be found at www.oregon.gov/pers. Totals may not foot due to rounding 84 Other Supplementary Information As of and for the Year Ended June 30, 2019 Deschutes County, Oregon ES Combining and Individual Funds Statements and Schedules — Major Governmental Funds and Sub -Funds - General Fund As of and for the Year Ended June 30, 2019 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 Deschutes County, Oregon General Fund and Sub -Funds of General Fund $ 1,762,215 $ - Combining Balance Sheet 22,728 - June 30, 2019 3,173,684 - General Court Assessor, Fund Economic Technology Clerk and Tax Operations Development Reserve Reserve Unavailable revenue - contracts of sale $ 5,401,781 $ 33,601 $ 58,155 $ 360,537 11,658,861 72,540 125,549 778,351 703,400 - - - 279,182 - - - - 144,473 - - $ 18,043,224 $ 250,614 $ 183,704 $ 1,138,889 12,458,530 Accounts payable $ 1,762,215 $ - Deposits 22,728 - Unearned revenue 3,173,684 - Total liabilities 4,958,627 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 626,067 - Unavailable revenue - contracts of sale - - Total deferred inflows of resources 626,067 - FUND BALANCES Nonspendable - 144,473 Committed - 106,141 Assigned - - Unassigned 12,458,530 - Total fund balances 12,458,530 250,614 Total liabilities, deferred inflows of resources and fund balances $ 18,043,224 $ 250,614 Totals may not foot due to rounding 85 $ 643 $ - 643 - 183,062 1,138,889 183,062 1,138,889 $ 183,704 $ 1,138,889 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Deschutes County, Oregon 3,674,987 $ General Fund and Sub -Funds of General Fund $ 12,941,872 18,940 - Combining Balance Sheet - $ 2,057 June 30, 2019 444,485 $ - Humane General General Society Project County Capital of Redmond Development Projects Reserve $ - $ 451,822 $ 605,119 $ 4,096,999 - 975,424 1,306,370 8,844,873 - - 21,266 - - 2,247,741 - - 0 Accounts payable $ 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 $ $ 3,674,987 $ 1,932,755 $ 12,941,872 18,940 - - - - $ 2,057 $ 444,485 $ - - - 18,940 - - 2,247,741 - - 2,247,741 18,940 - - - - 12,941,872 - 1,425,189 1,469,330 - 1,425,189 1,469,330 12,941,872 - $ 3,674,987 $ 1,932,755 $ 12,941,872 Totals may not foot due to rounding 86 (continued) Totals may not foot due to rounding 87 (concluded) Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Balance Sheet June 30, 2019 Community Vehicle Justice Code Maintenance & Juvenile Abatement Replacement Total ASSETS Cash and cash equivalents $ 368,872 $ 33,976 $ 354,743 $ 11,765,605 Investments, at fair value; plus accrued interest 796,237 73,350 765,842 25,397,398 Taxes receivable - - - 724,667 Accounts receivable 170,597 - - 449,778 Notes and contracts receivable - - - 2,392,214 Total assets $ 1,335,706 $ 107,326 $ 1,120,585 $ 40,729,662 LIABILITIES Accounts payable $ 37,043 $ - $ - $ 2,246,442 Deposits - - - 22,728 Unearned revenue - - - 3,173,684 Total liabilities 37,043 - - 51442,855 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - - 645,007 Unavailable revenue - contracts of sale - - - 2,247,741 Total deferred inflows of resources - - - 2,892,748 FUND BALANCES Nonspendable - - - 144,473 Committed - - - 13,048,013 Assigned 1,298,663 107,326 1,120,585 6,743,043 Unassigned - - - 12,458,530 Total fund balances 1,298,663 107,326 1,120,585 32,394,059 Total liabilities, deferred inflows of resources and fund balances $ 1,335,706 $ 107,326 $ 1,120,585 $ 40,729,662 Totals may not foot due to rounding 87 (concluded) Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2019 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 General 342,972 Court Assessment, Fund Economic Technology Clerk & Tax Operations Development Reserve Reserve $ 28,341,709 $ - $ - $ - 33,550 - - - 530,325 3,642 4,641 29,711 4,152,404 - - - 1,954,514 - - - 35,012,501 3,642 4,641 29,711 15,828,819 96,000 3,515 - 514,122 - - - 63,135 - - - 16,406,076 96,000 3,515 - 18,606,425 (92,358) 1,126 29,711 260,000 (10,236,575) 29,065 (8,144,029) (18,091,539) 0 EA ••91 (92,358) 32,000 32,000 33,126 120,000 149,711 11,943,644 342,972 149,936 989,177 $ 12,458,530 $ 250,614 $ 183,062 $ 1,138,889 Totals may not foot due to rounding 88 (continued) Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2019 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 $ 883,691 - 137,387 57,887 - 496,717 - - 3,647 17,951 - 680,503 - 237,942 - - 237,942 1,318,255 959,529 General County 325,217 325,217 - 127,424 1,294,360 - - - 41,709 - - 127,424 1,336,070 - 237,942 1,190,830 (376,541) 325,217 - (846,148) (29,065) - (29,065) (846,148) 208,878 344,682 - 2,116,909 2,116,909 (376,541) 2,442,126 (208,878) 1,080,507 1,845,871 10,499,747 $ - $ 1,425,189 $ 1,469,330 $ 12,941,872 Totals may not foot due to rounding 89 Deschutes County, Oregon General Fund and Sub -Funds of General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2019 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 Community 1,075 218,652 Vehicle 6,631,325 Justice Code Maintenance & - - Juvenile Abatement Replacement Total $ - $ - $ - $ 29,225,400 - - - 33,550 6,281 34,290 - 40,571 39,534 2,622 31,300 1,162,265 87,311 - - 584,028 608,703 - - 4,761,107 107,943 - - 2,084,055 929 - - 929 - - - 680,503 - - 65,788 303,730 850,700 36,912 97,088 38,876,138 - 1,075 218,652 17,569,845 6,631,325 - - 6,631,325 - - - 514,122 7,566 - 520,319 632,730 6,638,892 1,075 738,970 25,348,022 (5,788,191) 35,837 (641,882) 13,528,117 - - 513,154 773,154 - - - (11,082,723) 5,831,015 - 131,105 8,260,094 (87,000) - - (8,260,094) 5,744,015 - 644,259 (10,309,569) (44,176) 35,837 2,377 3,218,548 1,342,839 71,489 1,118,208 29,175,511 $ 1,298,663 $ 107,326 $ 1,120,585 $ 32,394,059 Totals may not foot due to rounding 90 (concluded) 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, 2019 Budgeted Amounts Variance Original with Final REVENUES Investment earnings $ 3,250 $ 3,250 $ 2,618 $ (632) Loan repayments 32,000 32,000 - (32,000) Total revenues 35,250 35,250 2,618 (32,632) EXPENDITURES Current - departmental: Economic development 220,250 220,250 96,000 124,250 Total expenditures 220,250 220,250 96,000 124,250 Net change in fund balance (185,000) (185,000) (93,382) 91,618 Fund balance - Beginning of year 185,000 185,000 343,798 158,798 Fund balance - End of year $ - $ - 250,416 $ 250,416 Unrealized gain (loss) on investments 198 Total fund balance, GAAP basis - End of Year $ 250,614 Totals may not foot due to rounding 91 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 2,000 $ 2,000 $ 3,572 $ 1,572 Transfers in 32,000 32,000 32,000 - Total revenues 34,000 34,000 35,572 1,572 EXPENDITURES Current - departmental Court technology 145,000 145,000 3,515 141,485 Total expenditures 145,000 145,000 3,515 141,485 Net change in fund balance (111,000) (111,000) 32,057 143,057 Fund balance - Beginning of year 114,564 114,564 150,662 36,098 Fund balance - End of year $ 3,564 $ 3,564 182,719 $ 179,155 Unrealized gain (loss) on investments 343 Total fund balance, GAAP basis - End of Year $ 183,062 Totals may not foot due to rounding 92 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 13,000 $ 13,000 $ 22,795 $ 9,795 Transfers in 120,000 120,000 120,000 - Total revenues 133,000 133,000 142,795 9,795 EXPENDITURES Current - departmental: Assessment & Taxation - - - - Total expenditures - - - - Net change in fund balance 133,000 133,000 142,795 9,795 Fund balance - Beginning of year 992,897 992,897 993,969 1,072 Fund balance - End of year $ 1,125,897 $ 1,125,897 1,136,764 $ 10,867 Unrealized gain (loss) on investments 2,124 Total fund balance, GAAP basis - End of Year $ 1,138,889 Totals may not foot due to rounding 93 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Loan repayment Total revenues EXPENDITURES Not allocated to organizational units: Transfers out 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 $ 548,000 S 548,000 $ 237,942 $ (310,058) 548,000 548,000 237,942 (310,058) 66,122 66,122 29,065 37,057 66,122 66,122 29,065 37,057 481,878 481,878 208,878 (273,000) (481,878) (481,878) (208,878) 273,000 Totals may not foot due to rounding 94 Deschutes County, Oregon Project Development (Sub -Fund of General Fund) Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 EXPENDITURES Currrent - departmental: General services Not allocated to organizational units: Transfer out 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 2,526,450 Budgeted Amounts 127,424 2,399,026 846,148 846,148 846,148 - Variance 3,372,598 Original 2,399,026 (1,000,000) with Final 336,848 Budget Final Budget Actual Budget REVENUES Investment earnings $ 40,653 $ 40,653 $ 129,553 $ 88,900 Rentals 491,760 491,760 496,717 4,957 Payments on contracts of sale 780,185 780,185 680,503 (99,682) Charges for services - - 3,647 3,647 Other 60,000 60,000 - (60,000) Transfers in 1,000,000 1,000,000 - (1,000,000) Total revenues 2,372,598 2,372,598 1,310,420 (1,062,178) EXPENDITURES Currrent - departmental: General services Not allocated to organizational units: Transfer out 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 2,526,450 2,526,450 127,424 2,399,026 846,148 846,148 846,148 - 3,372,598 3,372,598 973,572 2,399,026 (1,000,000) (1,000,000) 336,848 1,336,848 1,000,000 1,000,000 1,085,679 85,679 Totals may not foot due to rounding 95 1,422,527 $ 1,422,527 2,662 $ 1,425,189 EXPENDITURES Current - departmental: General Services Not allocated to organizational units: 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 1,819,332 Deschutes County, Oregon 1,336,070 483,262 182,856 General County Projects (Sub -Fund of General Fund) - 182,856 Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) 2,002,188 Year Ended June 30, 2019 666,118 (828,000) Budgeted Amounts (389,345) 438,655 828,000 828,000 1,855,110 Variance $ - Original 1,465,765 with Final Budget Final Budget Actual Budget REVENUES Taxes - property $ 876,188 $ 876,188 $ 883,691 $ 7,503 Investment earnings 18,000 18,000 45,083 27,083 Charges for services 30,000 30,000 17,951 (12,049) Transfers in 250,000 250,000 - (250,000) Total revenues 1.174.188 1.174.188 946.724 (227.464) EXPENDITURES Current - departmental: General Services Not allocated to organizational units: 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 1,819,332 1,819,332 1,336,070 483,262 182,856 182,856 - 182,856 2,002,188 2,002,188 1,336,070 666,118 (828,000) (828,000) (389,345) 438,655 828,000 828,000 1,855,110 1,027,110 $ - $ - 1,465,765 $ 1,465,765 Totals may not foot due to rounding 96 3,565 $ 1,469,330 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, 2019 REVENUES Investment earnings Transfers in Total revenues EXPENDITURES Not allocated to organizational units: Transfer out 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 1,250,000 1,250,000 - 1,250,000 Variance Original 1,066,909 with Final Budget Final Budget Actual Budget $ 200,000 $ 200,000 $ 250,218 $ 50,218 2,116,909 2,116,909 2,116,909 - 2,316,909 2,316,909 2,367,127 50,218 1,250,000 1,250,000 - 1,250,000 1,250,000 - 1,066,909 1,066,909 2,367,127 10,533,391 10,533,391 10,550,608 $ 11,600,300 $ 11,600,300 12,917,735 Totals may not foot due to rounding 97 24,138 1,250,000 1,250,000 1,300,218 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, 2019 EXPENDITURES Current - departmental: Public safety Not allocated to organizational units: Transfers out 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 7,040,902 Budgeted Amounts 6,638,892 402,010 87,000 87,000 87,000 - Variance 689,399 Original 689,399 7,817,301 with Final 6,725,892 Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 7,050 $ 7,050 $ 6,281 $ (769) Investment earnings 25,000 25,000 31,318 6,318 Rents 85,000 85,000 87,311 2,311 Charges for services 79,000 79,000 107,943 28,943 Contributions and donations 1,000 1,000 929 (71) Intergovernmental 589,236 589,236 608,703 19,467 Transfers in 5,831,015 5,831,015 5,831,015 - Total revenues 6,617,301 6,617,301 6,673,500 56,199 EXPENDITURES Current - departmental: Public safety Not allocated to organizational units: Transfers out 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 7,040,902 7,040,902 6,638,892 402,010 87,000 87,000 87,000 - 689,399 689,399 - 689,399 7,817,301 7,817,301 6,725,892 1,091,409 (1,200,000) (1,200,000) (52,391) 1,147,609 Totals may not foot due to rounding 98 1,296,490 $ 1,296,490 $ 1,298,663 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ - $ - $ 34,290 $ 34,290 Investment earnings 1,200 1,200 2,075 875 Total revenues 1,200 1,200 36,366 35,166 EXPENDITURES Current - departmental: Code abatement 46,289 46,289 1,075 45,214 Total expenditures 46,289 46,289 1,075 45,214 Net change in fund balance (45,089) (45,089) 35,291 80,380 Fund balance - Beginning of year 45,089 45,089 71,835 26,746 Fund balance - End of year $ - $ - 107,126 $ 107,126 Unrealized gain (loss) on investments 200 Total fund balance, GAAP basis - End of Year $ 107,326 Totals may not foot due to rounding 99 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 15,000 $ 15,000 $ 23,793 $ 8,793 Sale of equipment - - 65,788 65,788 Transfers in 644,259 644,259 644,259 - Total revenues 659,259 659,259 733,840 74,581 EXPENDITURES Current - departmental: Fleet Not allocated to organizational units: 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 890,000 890,000 738,970 151,030 (1,022,229) (1,022,229) (5,130) 1,017,099 Totals may not foot due to rounding 100 1,118,495 $ 1,118,495 ES Combining Funds and Individual Funds Statements and Schedules — Major Governmental Funds — Capital Project Funds As of and for the Year Ended June 30, 2019 Deschutes County, Oregon Deschutes County, Oregon Road Capital Improvement Plan Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Investment earnings Intergovernmental Transfers in Total revenues EXPENDITURES Current - departmental: County roads Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Budgeted Amounts 8,309,501 5,484,366 2,825,135 14,148,365 14,148,365 Variance Original 22,457,866 22,457,866 with Final Budget Final Budget Actual Budget $ 106,000 $ 106,000 $ 261,131 $ 155,131 853,104 853,104 - (853,104) 13,811,725 13,811,725 13,393,963 (417,762) 14,770,829 14,770,829 13,655,094 (1,115,735) 8,309,501 8,309,501 5,484,366 2,825,135 14,148,365 14,148,365 - 14,148,365 22,457,866 22,457,866 5,484,366 16,973,500 (7,687,037) (7,687,037) 8,170,728 15,857,765 7,687,037 7,687,037 9,588,827 1,901,790 Fund balance - End of year $ - $ - 17,759,555 $ 17,759,555 Unrealized gain (loss) on investments 34,690 Total fund balance, GAAP basis - End of Year $ 17,794,245 Totals may not foot due to rounding 101 Combining Funds and Individual Funds Statements and Schedules — Major Proprietary Funds — Enterprise Funds As of and for the Year Ended June 30, 2019 Deschutes County, Oregon Deschutes County, Oregon Solid Waste Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows of resources Interest payable Accrued compensated leave Other postemployment benefits Net pension liability Bonds (net of unamortized premiums/discounts) Accrued landfill closure and postclosure costs Deferred inflows of resources - pension Net position, GAAP basis - End of year Totals may not foot due to rounding 102 21,751 25,191,529 183,950 641,070 (14,800) (218,425) (588,828) (1,718,497) (7,850,622) (8,430,568) (346,888) $ 18,851,382 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 11,795,572 $ 11,795,572 $ 11,410,539 $ (385,033) Rents 11,041 11,041 11,224 183 Other 18,000 18,000 - (18,000) Investment earnings 133,900 133,900 228,042 94,142 Total revenues 11,958,513 11,958,513 11,649,805 (308,708) EXPENDITURES Currrent - departmental: County services 9,136,226 9,136,226 7,680,211 1,456,015 Not allocated to organizational units: Debt service 860,938 860,938 860,938 - Transfers out 50,029 50,029 50,029 - Contingency 8,285,953 8,285,953 - 8,285,953 Total expenditures 18,333,146 18,333,146 8,591,178 9,741,968 Net change in fund balance (6,374,633) (6,374,633) 3,058,627 9,433,260 Fund balance - Beginning of year 7,432,581 7,432,581 8,923,081 1,490,500 Fund balance - End of year $ 1,057,948 $ 1,057,948 11,981,709 $ 10,923,761 Unrealized gain (loss) on investments Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows of resources Interest payable Accrued compensated leave Other postemployment benefits Net pension liability Bonds (net of unamortized premiums/discounts) Accrued landfill closure and postclosure costs Deferred inflows of resources - pension Net position, GAAP basis - End of year Totals may not foot due to rounding 102 21,751 25,191,529 183,950 641,070 (14,800) (218,425) (588,828) (1,718,497) (7,850,622) (8,430,568) (346,888) $ 18,851,382 Deschutes County, Oregon Fair and Expo Center Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Charges for services Operating grants Investment earnings Transfers in Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Debt service Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Original Budget Final Budget $ 2,703,600 158,000 10,200 1,728,079 4,599,879 3,937,151 $ 2,934,100 158,000 10,200 1,728,079 4,830,379 4,390,151 Actual $ 3,106,831 107,740 20,880 1,528,079 4,763,530 4,348,582 Variance with Final Budget $ 172,731 (50,260) 10,680 (200,000) (66,849) 41,569 101,136 101,136 101,136 - 160,709 31,209 - 31,209 4,198,996 4,522,496 4,449,718 72,778 400,883 307,883 313,812 5,929 758,000 758,000 833,477 75,477 $ 1,158,883 $ 1,065,883 1,147,288 $ 81,405 Unrealized gain (loss) on investments Prepaid expenses Capital assets (net of accumulated depreciation) Deferred charge on refunding Deferred outflows of resources Interest payable Unearned revenues Accrued compensated leave Other postemployment benefits Net pension liability Bonds (net of unamortized premiums/discounts) Deferred inflows of resources - pension Net position, GAAP basis - End of year Totals may not foot due to rounding 103 2,129 197,704 18,264,540 3,884 467,252 (900) (291,152) (144,937) (288,406) (1,252,549) (739,185) (195,933) $ 17,169,735 Deschutes County, Oregon RV Park Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Charges for services Investment earnings Transfers in Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Debt service Contingency Total expenditures Net change in fund balance Budgeted Amounts Original Budget Final Budget Actual Variance with Final Budget $ 354,200 $ 354,200 $ 476,365 $ 122,165 4,400 4,400 12,255 7,855 160,000 160,000 160,000 - 518,600 518,600 648,620 130,020 298,870 298,870 276,007 22,863 223,101 223,101 223,101 - 315,629 315,629 - 315,629 837,600 837,600 499,108 338,492 (319,000) (319,000) 149,512 468,512 Fund balance - Beginning of year 319,000 319,000 443,480 124,480 Fund balance - End of year $ - $ - 592,992 $ 592,992 Unrealized gain (loss) on investments 1,153 Capital assets (net of accumulated depreciation) 2,238,844 Interest payable (2,000) Bonds (net of unamortized premiums/discounts) (1,350,734) Net position, GAAP basis - End of year $ 1,480,254 Totals may not foot due to rounding 104 Combining and Individual Funds Statements and Schedules — Nonmajor Governmental Funds and Sub -Funds As of and for the Year Ended June 30, 2019 Deschutes County, Oregon Deschutes County, Oregon Nonmaj or Governmental Funds Combining Balance Sheet June 30, 2019 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable 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 Totals may not foot due to rounding 105 191,862 - 191,862 Total Special Nonmajor Revenue Debt Governmental Funds Service Fund Funds $ 9,595,422 $ 264,988 $ 9,860,411 20,712,534 572,075 21,284,608 1,187,941 - 1,187,941 433,305 - 433,305 816,485 - 816,485 $ 32,745,688 $ 837,063 $ 33,582,750 $ 1,307,044 $ - $ 1,307,044 191,862 - 191,862 191,862 - 191,862 30,567,990 - 30,567,990 310,802 837,063 1,147,865 30,878,792 837,063 31,715,855 $ 32,745,688 $ 837,063 $ 33,582,750 Deschutes County, Oregon Nonmaj or Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2019 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Rents Charges for services Contributions and donations Intergovernmental Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Debt service: Principal Interest Trustee fees Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Issuance of refunding bonds - par Issuance of refunding bonds - premium Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - Beginning of year Fund balances - End of year Totals may not foot due to rounding 106 Special Revenue $ 9,090,497 7,829,489 1,648,784 963,653 941,687 9,213,396 5,132 10,805,478 AO noQ 1 1 Q Debt Service 40,110 1,280,515 1,340,321 396,187 2 (),Z7 12A Total Nonmajor Governmental $ 9,090,497 7,829,489 1,648,784 963,653 981,797 1,280,515 10,553,717 5,132 11,201,666 Al CCC 7G7 12,585,519 - 12,585,519 17,057,677 - 17,057,677 1,405,310 - 1,405,310 872,503 - 872,503 - 9,963,729 9,963,729 - 2,021,171 2,021,171 - 106,325 106,325 1,408,512 - 1,408,512 33,329,521 12,091,224 45,420,745 7,168,596 (9,034,090) (1,865,494) - 6,455,001 6,455,001 - 1,057,684 1,057,684 1,070,535 1,697,318 2,767,852 (5,866,795) - (5,866,795) (4,796,261) 9,210,002 4,413,742 2,372,336 175,912 2,548,248 28,506,456 661,151 29,167,607 211 R7R 707 01 5227 f72 21 71 5 RSS Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2019 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted - 457,495 111,211 9,345 Committed 144,502 - - - Total fund balances 144,502 457,495 l l 1,211 9,345 Total liabilities, deferred inflow of resources and fund balances $ 148,449 $ 460,408 $ 111,211 $ 125,688 Totals may not foot due to rounding 107 Park Park Justice Acquisition & Development Special Court Development Fees Transportation ASSETS Cash and cash equivalents $ 47,541 $ 133,121 $ 35,206 $ 36,331 Investments, fair value; and accrued interest 100,908 287,390 76,005 78,433 Taxes receivable - - - - Accounts receivable - 39,897 - 10,924 Notes and contracts receivable - - - - Total assets $ 148,449 $ 460,408 $ 111,211 $ 125,688 LIABILITIES Accounts payable $ 3,947 $ 2,913 $ - $ 116,343 Unearned revenues - - - - Total liabilities 3,947 2,913 - 116,343 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted - 457,495 111,211 9,345 Committed 144,502 - - - Total fund balances 144,502 457,495 l l 1,211 9,345 Total liabilities, deferred inflow of resources and fund balances $ 148,449 $ 460,408 $ 111,211 $ 125,688 Totals may not foot due to rounding 107 Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2019 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - Total deferred inflows of resources - FUND BALANCES Restricted 54,441 Committed - Total fund balances 54,441 Total liabilities, deferred inflow of resources and fund balances $ 54,441 3,390,952 199,602 152,550 $ 3,536,633 $ 297,763 $ 153,162 Totals may not foot due to rounding 108 (continued) Taylor Transient Video Transient Grazing Room Tax Lottery Room Tax -1% ASSETS Cash and cash equivalents $ 17,234 $ 850,020 $ 93,471 $ 9,977 Investments, fair value; and accrued interest 37,207 1,835,079 201,792 21,538 Taxes receivable - 851,533 - 121,647 Accounts receivable - - 2,500 - Notes and contracts receivable - - - - Total assets $ 54,441 $ 3,536,633 $ 297,763 $ 153,162 LIABILITIES Accounts payable $ - $ 145,680 $ 98,161 $ 612 Unearned revenues - - - - Total liabilities - 145,680 98,161 612 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - Total deferred inflows of resources - FUND BALANCES Restricted 54,441 Committed - Total fund balances 54,441 Total liabilities, deferred inflow of resources and fund balances $ 54,441 3,390,952 199,602 152,550 $ 3,536,633 $ 297,763 $ 153,162 Totals may not foot due to rounding 108 (continued) Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2019 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 129,744 59,366 319,328 318,340 Committed - - - - Total fund balances 129,744 59,366 319,328 318,340 Total liabilities, deferred inflow of resources and fund balances $ 129,749 $ 63,786 $ 319,328 $ 319,097 Totals may not foot due to rounding 109 County Foreclosed Victims' Law Clerk Land Sales Assistance Library Records ASSETS Cash and cash equivalents $ 41,075 $ 3,216 $ 101,089 $ 101,016 Investments, fair value; and accrued interest 88,675 6,943 218,238 218,081 Taxes receivable - - - - Accounts receivable - 53,627 - - Notes and contracts receivable - - - - Total assets $ 129,749 $ 63,786 $ 319,328 $ 319,097 LIABILITIES Accounts payable $ 5 $ 4,421 $ - $ 757 Unearned revenues - - - - Total liabilities 5 4,421 - 757 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 129,744 59,366 319,328 318,340 Committed - - - - Total fund balances 129,744 59,366 319,328 318,340 Total liabilities, deferred inflow of resources and fund balances $ 129,749 $ 63,786 $ 319,328 $ 319,097 Totals may not foot due to rounding 109 Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2019 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Restricted Committed Total fund balances Total liabilities, deferred inflow of resources and fund balances - 7,443,140 46,834 937,263 163,234 - - - 163,234 7,443,140 46,834 937,263 $ 163,234 $ 7,611,738 $ 46,834 $ 937,263 Totals may not foot due to rounding 110 (continued) Des Co CDD Communication Community Groundwater Newberry System Res Development Partnership Neighborhood ASSETS Cash and cash equivalents $ 51,675 $ 2,409,267 $ 14,826 $ 53,111 Investments, fair value; and accrued interest 111,559 5,200,637 32,008 114,659 Taxes receivable - - - - Accounts receivable - 1,834 - - Notes and contracts receivable - - - 769,494 Total assets $ 163,234 $ 7,611,738 $ 46,834 $ 937,263 LIABILITIES Accounts payable $ - $ 81,920 $ - $ - Unearned revenues - 86,679 - Total liabilities - 168,598 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Restricted Committed Total fund balances Total liabilities, deferred inflow of resources and fund balances - 7,443,140 46,834 937,263 163,234 - - - 163,234 7,443,140 46,834 937,263 $ 163,234 $ 7,611,738 $ 46,834 $ 937,263 Totals may not foot due to rounding 110 (continued) Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2019 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 342,898 876,843 11,136 241,414 Committed - - - - Total fund balances 342,898 876,843 11,136 241,414 Total liabilities, deferred inflow of resources and fund balances $ 342,987 $ 880,302 $ 249,218 $ 241,414 Totals may not foot due to rounding 111 (continued) Natural Federal GIS Resource Forest Title Dedicated Protection III Surveyor ASSETS Cash and cash equivalents $ 108,579 $ 274,092 $ 78,895 $ 76,424 Investments, fair value; and accrued interest 234,408 591,728 170,323 164,990 Taxes receivable - - - - Accounts receivable - 14,481 - - Notes and contracts receivable - - - - Total assets $ 342,987 $ 880,302 $ 249,218 $ 241,414 LIABILITIES Accounts payable $ 90 $ 3,458 $ 3,762 $ - Unearned revenues - - 234,320 Total liabilities 90 3,458 238,082 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Restricted 342,898 876,843 11,136 241,414 Committed - - - - Total fund balances 342,898 876,843 11,136 241,414 Total liabilities, deferred inflow of resources and fund balances $ 342,987 $ 880,302 $ 249,218 $ 241,414 Totals may not foot due to rounding 111 (continued) Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2019 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Restricted Committed Total fund balances Total liabilities, deferred inflow of resources and fund balances 836,387 3,224,554 - 2,759,301 - - 3,066 - 836,387 3,224,554 3,066 2,759,301 $ 836,387 $ 3,271,545 $ 59,183 $ 2,839,792 Totals may not foot due to rounding 112 (continued) Public Land Countywide Corner Transportation Adult Parole Preservation SDC Imp Dog Control & Probation ASSETS Cash and cash equivalents $ 264,774 $ 1,020,795 $ 17,865 $ 899,093 Investments, fair value; and accrued interest 571,612 2,203,759 38,568 1,940,698 Taxes receivable - - - - Accounts receivable - - 2,751 - Notes and contracts receivable - 46,991 - - Total assets $ 836,387 $ 3,271,545 $ 59,183 $ 2,839,792 LIABILITIES Accounts payable $ - $ - $ 56,117 $ 80,490 Unearned revenues - 46,991 - - Total liabilities - 46,991 56,117 80,490 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes Total deferred inflows of resources FUND BALANCES Restricted Committed Total fund balances Total liabilities, deferred inflow of resources and fund balances 836,387 3,224,554 - 2,759,301 - - 3,066 - 836,387 3,224,554 3,066 2,759,301 $ 836,387 $ 3,271,545 $ 59,183 $ 2,839,792 Totals may not foot due to rounding 112 (continued) Deschutes County, Oregon Nomnajor Special Revenue Funds Combining Balance Sheet June 30, 2019 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Total assets LIABILITIES Accounts payable 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 inflow of resources and fund balances Deschutes Cnty Deschutes Cnty Total Nonmajor 9-1-1 Extension & 4-H Special Service District Service District Revenue Funds $ 2,664,716 $ 192,012 $ 9,595,422 5,752,766 414,529 20,712,534 202,169 12,592 1,187,941 307,292 - 433,305 - - 816,485 $ 8,926,942 $ 619,133 $ 32,745,688 $ 104,258 $ 604,109 $ 1,307,044 - - 367,990 104,258 604,109 1,675,033 180,593 11,269 191,862 180,593 11,269 191,862 8,642,091 3,755 30,567,990 - - 310,802 8,642,091 3,755 30,878,792 $ 8,926,942 $ 619,133 $ 32,745,688 Totals may not foot due to rounding 113 (concluded) Deschutes County, Oregon Deschutes County 9-1-1 County Service District Combining Balance Sheet June 30, 2019 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 foot due to rounding 114 Deschutes Deschutes County 9-1-1 County 9-1-1 Total Service Equipment Service District Reserve District $ 1,811,430 $ 853,286 $ 2,664,716 3,910,635 1,842,131 5,752,766 202,169 - 202,169 307,292 - 307,292 $ 6,231,525 $ 2,695,418 $ 8,926,942 $ 104,258 $ - $ 104,258 104,258 - 104,258 180,593 - 180,593 180,593 - 180,593 5,946,673 2,695,418 8,642,091 5,946,673 2,695,418 8,642,091 $ 6,231,525 $ 2,695,418 $ 8,926,942 Deschutes County, Oregon Deschutes County Extension and 4-H County Service District Combining Balance Sheet June 30, 2019 ASSETS Cash and cash equivalents Investments, at fair value; plus accrued interest Taxes receivable Total assets LIABILITIES Accounts payable Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property tax Total deferred inflows of resources FUND BALANCES Restricted Total fund balances Total liabilities, deferred inflows of resources and fund balances Totals may not foot due to rounding 115 $ 62,273 Extension Total Extension and 4H Service & 4H Reserve District - 11,269 11,269 $ 93,665 $ 98,348 $ 192,012 202,209 212,320 414,529 12,592 - 12,592 $ 62,273 $ 541,836 $ 604,109 62,273 541,836 604,109 11,269 - 11,269 11,269 - 11,269 234,923 (231,168) 3,755 234,923 (231,168) 3,755 $ 308,466 $ 310,668 $ 619,133 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2019 Park Park Justice Acquisition & Development County Court Development Fees School REVENUES Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - 1,050 - Fines, forfeitures and penalties 605,344 - - - Investment earnings 3,968 10,143 3,121 308 Charges for services - - - - Contributions and donations - - - - Intergovernmental - 328,913 - 568,264 Total revenues 609,313 339,056 4,171 568,572 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 652,039 33,667 2,385 568,572 652,039 33,667 2,385 568,572 (42,727) 305,389 1,786 - 30,000 - - - - (190,000) - - 30,000 (190,000) - - (12,727) 115,389 1,786 - 157,228 342,106 109,425 - $ 144,502 $ 457,495 $ 111,211 $ - Totals may not foot 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, 2019 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Intergovernmental 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 Special Taylor Transient Transportation Grazing Room Tax Video Lottery - - 6,850,801 - 2,496 1,378 69,950 9,344 458,365 5,338 - 751,778 460,861 6,716 6,920,750 761,122 - - 2,216,407 771,519 460,612 - - - 460,612 - 2,216,407 771,519 249 6,716 4,704,343 (10,397) (3,177,531) - (3,177,531) - 249 6,716 1,526,812 (10,397) 9,096 47,726 1,864,141 210,000 $ 9,345 $ 54,441 $ 3,390,952 $ 199,602 Totals may not foot due to rounding 117 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2019 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Intergovernmental 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 Transient Foreclosed Victims' Room Tax -1% Land Sales Assistance Law Library 978,688 - - - 8,621 3,253 2,174 9,416 - 46,061 46,545 - - - 25 - - - 362,149 113,717 987,309 49,314 410,893 123,133 17,546 46,618 - 154,004 - - 728,281 - 17,546 46,618 728,281 154,004 969,763 2,696 (317,388) (30,871) 295,648 - (1,272,335) - - - (1,272,335) - 295,648 - (302,572) 2,696 (21,740) (30,871) 455,122 127,048 81,106 350,199 $ 152,550 $ 129,744 $ 59,366 $ 319,328 Totals may not foot 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, 2019 Totals may not foot due to rounding 119 Des Co County Clerk Court Communication Community Records Facilities System Res Development REVENUES Taxes - property $ - $ - $ - $ - Taxes - other - - - - Licenses and permits - - - - Fines, forfeitures and penalties - 79,748 - 140 Investment earnings 8,572 239 4,023 208,486 Charges for services 101,868 - - 7,659,654 Contributions and donations - - - - Intergovernmental - - 100,000 38,547 Total revenues 110,440 79,987 104,023 7,906,828 EXPENDITURES Current: General government 120,026 - - 7,333,412 Public safety - 79,987 - - County roads - - - - Health and welfare - - - - Capital outlay - - - - Total expenditures 120,026 79,987 - 7,333,412 Excess (deficiency) of revenues over expenditures (9,585) - 104,023 573,415 OTHER FINANCING SOURCES (USES) Transfers in - - - 289,193 Transfers out - - - (79,945) Total other financing sources (uses) - - - 209,248 Net change in fund balances (9,585) - 104,023 782,663 Fund balance - Beginning of year 327,926 - 59,211 6,660,476 Fund balance - End of year $ 318,340 $ - $ 163,234 $ 7,443,140 Totals may not foot due to rounding 119 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2019 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Intergovernmental 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 CDD - - 30,463 Natural Groundwater Newberry GIS Resource Partnership Neighborhood Dedicated Protection 19,688 (52,462) 68,982 255,211 938 39,975 8,984 24,888 - - 272,405 2,408 - - 10,993 720,962 938 39,975 292,382 748,257 18,750 - 223,400 - - - - 518,617 (17,812) 39,975 68,982 229,640 37,500 - - 30,463 - (92,437) - (4,892) 37,500 (92,437) - 25,571 19,688 (52,462) 68,982 255,211 27,146 989,725 273,916 621,632 $ 46,834 $ 937,263 $ 342,898 $ 876,843 Totals may not foot 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, 2019 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Intergovernmental 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 Federal Public Land Countywide Forest Title Corner Transportation III Surveyor Preservation SDC Imp - 174,036 - 1,229,475 7,358 9,144 26,184 97,419 - 31,956 388,142 - 87,967 - - - 95,324 215,136 414,326 1,326,894 345,564 208,951 332,178 - (250,239) 6,185 82,147 1,326,894 - - - (929,655) - - - (929,655) (250,239) 6,185 82,147 397,239 261,375 235,229 754,240 2,827,315 $ 11,136 $ 241,414 $ 836,387 $ 3,224,554 Totals may not foot due to rounding 121 Deschutes County, Oregon Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2019 REVENUES Taxes - property Taxes - other Licenses and permits Fines, forfeitures and penalties Investment earnings Charges for services Contributions and donations Intergovernmental Total revenues EXPENDITURES Current: General government Public safety County roads Health and welfare Capital outlay Total expenditures - - - 427,173 12,585,519 - 6,208,673 10,040,735 - 17,057,677 - - - 1,405,310 411,891 - - - 872,503 - - 529,377 879,135 1,408,512 411,891 6,208,673 10,570,113 1,306,307 33,329,522 Excess (deficiency) of revenues Deschutes Cnty Deschutes Cnty Total Nonmajor Adult Parole 9-1-1 Extension & 4-H Special Dog Control & Probation Service District Service District Revenue Funds $ - $ - $ 8,558,820 $ 531,677 $ 9,090,497 - - - - 7,829,489 244,223 - - - 1,648,784 2,720 275,701 - - 963,653 1,912 94,615 261,714 23,065 941,687 472 109,936 493,950 60,000 9,213,396 5,107 - - - 5,132 - 6,000,354 1,258,131 - 10,805,478 254,435 6,480,606 10,572,614 614,743 40,498,118 - - - 427,173 12,585,519 - 6,208,673 10,040,735 - 17,057,677 - - - 1,405,310 411,891 - - - 872,503 - - 529,377 879,135 1,408,512 411,891 6,208,673 10,570,113 1,306,307 33,329,522 Excess (deficiency) of revenues over expenditures (157,456) 271,933 2,502 (691,565) 7,168,596 OTHER FINANCING SOURCES (USES) Transfers in 102,542 285,189 - - 1,070,535 Transfers out - (120,000) - - (5,866,795) Total other financing sources (uses) 102,542 165,189 - - (4,796,261) Net change in fund balances (54,914) 437,122 2,502 (691,565) 2,372,336 Fund balance - Beginning of year 57,981 2,322,180 8,639,589 695,320 28,506,456 Fund balance - End of year $ 3,066 $ 2,759,301 $ 8,642,091 $ 3,755 $ 30,878,792 Totals may not foot due to rounding 122 (concluded) Deschutes County, Oregon Deschutes County 9-1-1 County Service District Combining Schedule of Revenues, Expenditures and Changes in Fund Balance Year Ended June 30, 2019 REVENUES Taxes - property Investment earnings Charges for services Other Intergovernmental Total revenues EXPENDITURES Current: Public safety Capital outlay Total expenditures Net change in fund balances Fund balance - Beginning of year Fund balance - End of year Totals may not foot due to rounding 123 Deschutes Deschutes 529,377 - County 9-1-1 County 9-1-1 Total Service Equipment Service District Reserve District $ 8,642,091 $ 8,558,820 $ - $ 8,558,820 186,718 74,996 261,714 490,928 - 490,928 3,022 - 3,022 1,258,131 - 1,258,131 10,497,618 74,996 10,572,614 10,040,735 - 10,040,735 529,377 - 529,377 10,570,113 - 10,570,113 (72,494) 74,996 2,502 6,019,167 2,620,422 8,639,589 $ 5,946,673 $ 2,695,418 $ 8,642,091 Deschutes County, Oregon Deschutes County Extension and 4-H County Service District Combining Schedule of Revenues, Expenditures and Changes in Fund Balance Year Ended June 30, 2019 REVENUES Taxes - property Investment earnings Charges for services Total revenues EXPENDITURES Current: General services 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 Totals may not foot due to rounding 124 427,173 Extension Total Extension and 4H Service & 411 Reserve District $ 531,677 $ - $ 531,677 9,195 13,870 23,065 - 60,000 60,000 540,872 73,870 614,743 427,173 - 427,173 - 879,135 879,135 427,173 879,135 1,306,307 113,700 (805,264) (691,565) - 60,000 60,000 (60,000) - (60,000) (60,000) 60,000 - 53,700 (745,264) (691,565) 181,224 514,096 695,320 $ 234,923 $ (231,168) $ 3,755 EXPENDITURES Current - departmental: Justice Court Not allocated to organizational units: 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 658,081 Deschutes County, Oregon 652,039 6,042 67,919 67,919 Justice Court 67,919 726,000 726,000 Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) (144,000) Year Ended June 30, 2019 (13,764) 130,236 144,000 144,000 Budgeted Amounts 13,990 $ - $ - 144,227 $ 144,227 Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 550,000 $ 550,000 $ 605,344 $ 55,344 Investment earnings 2,000 2,000 2,931 931 Transfers in 30,000 30,000 30,000 - Total revenues 582,000 582,000 638,275 56,275 EXPENDITURES Current - departmental: Justice Court Not allocated to organizational units: 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 658,081 658,081 652,039 6,042 67,919 67,919 - 67,919 726,000 726,000 652,039 73,961 (144,000) (144,000) (13,764) 130,236 144,000 144,000 157,990 13,990 $ - $ - 144,227 $ 144,227 Totals may not foot due to rounding 125 275 Totals may not foot due to rounding 126 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 5,000 $ 5,000 $ 7,889 $ 2,889 Intergovernmental 350,000 350,000 328,913 (21,087) Total revenues 355,000 355,000 336,802 (18,198) EXPENDITURES Current - departmental: Development 330,000 330,000 33,667 296,333 Not allocated to organizational units: Transfers out 190,000 190,000 190,000 - Contingency 191,000 191,000 - 191,000 Total expenditures 711,000 711,000 223,667 487,333 Net change in fund balance (356,000) (356,000) 113,135 469,135 Fund balance - Beginning of year 356,000 356,000 343,576 (12,424) Fund balance - End of year $ - $ - 456,711 $ 456,711 Unrealized gain (loss) on investments 784 Total fund balance, GAAP basis - End of Year $ 457,495 Totals may not foot due to rounding 126 Deschutes County, Oregon Park Development Fees Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 127 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Licenses and permits $ 5,000 $ 5,000 $ 1,050 $ (3,950) Investment earnings 1,600 1,600 2,383 783 Total revenues 6,600 6,600 3,433 (3,167) EXPENDITURES Current - departmental: Development 118,600 118,600 2,385 116,215 Total expenditures 118,600 118,600 2,385 116,215 Net change in fund balance (112,000) (112,000) 1,049 113,049 Fund balance - Beginning of year 112,000 112,000 109,955 (2,045) Fund balance - End of year $ - $ - 111,003 $ 111,003 Unrealized gain (loss) on investments 207 Total fund balance, GAAP basis - End of Year $ 111,211 Totals may not foot due to rounding 127 EXPENDITURES Current - departmental: Education 629,220 629,220 568,572 60,648 Total expenditures 629,220 629,220 568,572 60,648 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 foot due to rounding 128 Deschutes County, Oregon County School Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 250 $ 250 $ 308 $ 58 Intergovernmental 628,970 628,970 568,264 (60,706) Total revenues 629,220 629,220 568,572 (60,648) EXPENDITURES Current - departmental: Education 629,220 629,220 568,572 60,648 Total expenditures 629,220 629,220 568,572 60,648 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 foot due to rounding 128 EXPENDITURES Current - departmental: Health and Welfare 845,000 845,000 460,612 Total expenditures 845,000 845,000 460,612 Net change in fund balance (10,000) (10,000) (32) Fund balance - Beginning of year 10,000 10,000 9,162 Fund balance - End of year $ - $ - 9,131 Unrealized gain (loss) on investments 214 Total fund balance, GAAP basis - End of Year $ 9,345 Totals may not foot due to rounding 129 384,388 384,388 9,968 (838) $ 9,131 Deschutes County, Oregon Special Transportation Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 3,000 $ 3,000 $ 2,215 $ (785) Intergovernmental 832,000 832,000 458,365 (373,635) Total revenues 835,000 835,000 460,580 (374,420) EXPENDITURES Current - departmental: Health and Welfare 845,000 845,000 460,612 Total expenditures 845,000 845,000 460,612 Net change in fund balance (10,000) (10,000) (32) Fund balance - Beginning of year 10,000 10,000 9,162 Fund balance - End of year $ - $ - 9,131 Unrealized gain (loss) on investments 214 Total fund balance, GAAP basis - End of Year $ 9,345 Totals may not foot due to rounding 129 384,388 384,388 9,968 (838) $ 9,131 EXPENDITURES Current - departmental: Development 56,600 56,600 Total expenditures 56,600 56,600 Net change in fund balance (50,000) (50,000) Fund balance - Beginning of year 50,000 50,000 Fund balance - End of year $ - $ - Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 130 - 56,600 - 56,600 6,383 56,383 47,957 (2,043) 54,340 $ 54,340 $ 54,441 Deschutes County, Oregon Taylor Grazing Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 600 $ 600 $ 1,045 $ 445 Intergovernmental 6,000 6,000 5,338 (662) Total revenues 6,600 6,600 6,383 (217) EXPENDITURES Current - departmental: Development 56,600 56,600 Total expenditures 56,600 56,600 Net change in fund balance (50,000) (50,000) Fund balance - Beginning of year 50,000 50,000 Fund balance - End of year $ - $ - Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 130 - 56,600 - 56,600 6,383 56,383 47,957 (2,043) 54,340 $ 54,340 $ 54,441 Deschutes County, Oregon Transient Room Tax Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Taxes - other $ 6,352,500 $ 6,352,500 $ 6,665,904 $ 313,404 Investment earnings 14,000 14,000 57,628 43,628 Total revenues 6,366,500 6,366,500 6,723,532 357,032 EXPENDITURES Current - departmental: Economic development 2,315,279 2,315,279 2,216,407 98,872 Not allocated to organizational units: Transfers out 3,177,531 3,177,531 3,177,531 - Total expenditures 5,492,810 5,492,810 5,393,938 98,872 Net change in fund balance 873,690 873,690 1,329,593 455,903 Fund balance - Beginning of year 1,387,711 1,387,711 1,204,818 (182,893) Fund balance - End of year $ 2,261,401 $ 2,261,401 2,534,411 $ 273,010 Unrealized gain (loss) on investments 5,008 Accrued taxes 851,533 Total fund balance, GAAP basis - End of Year $ 3,390,952 Totals may not foot due to rounding 131 Totals may not foot due to rounding 132 Deschutes County, Oregon Video Lottery Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 4,200 $ 4,200 $ 7,460 $ 3,260 Intergovernmental 760,000 760,000 751,778 (8,222) Total revenues 764,200 764,200 759,238 (4,962) EXPENDITURES Current - departmental: Economic development 969,200 969,200 771,519 197,681 Total expenditures 969,200 969,200 771,519 197,681 Net change in fund balance (205,000) (205,000) (12,281) 192,719 Fund balance - Beginning of year 205,000 205,000 211,333 6,333 Fund balance - End of year $ - $ - 199,052 $ 199,052 Unrealized gain (loss) on investments 551 Total fund balance, GAAP basis - End of Year $ 199,602 Totals may not foot due to rounding 132 Deschutes County, Oregon Transient Room Tax - 1 % Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Taxes - other $ 907,500 $ 907,500 $ 952,275 $ 44,775 Investment earnings 8,600 8,600 6,816 (1,784) Total revenues 916,100 916,100 959,091 42,991 EXPENDITURES Current - departmental: Economic development 20,399 20,399 17,546 2,853 Not allocated to organizational units: Transfers out 1,472,335 1,472,335 1,272,335 200,000 Total expenditures 1,492,734 1,492,734 1,289,881 202,853 Net change in fund balance (576,634) (576,634) (330,790) 245,844 Fund balance - Beginning of year 576,634 576,634 361,634 (215,000) Fund balance - End of year $ - $ - 30,844 S 30,844 Unrealized gain (loss) on investments 59 Accrued taxes 121,647 Total fund balance, GAAP basis - End of Year $ 152,550 Totals may not foot due to rounding 133 Totals may not foot due to rounding 134 Deschutes County, Oregon Foreclosed Land Sales Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 1,200 $ 1,200 $ 2,396 $ 1,196 Charges for services 115,691 115,691 46,061 (69,630) Total revenues 116,891 116,891 48,457 (68,434) EXPENDITURES Current - departmental: General services 118,444 118,444 46,618 71,826 Not allocated to organizational units: Contingency 114,138 114,138 - 114,138 Total expenditures 232,582 232,582 46,618 185,964 Net change in fund balance (115,691) (115,691) 1,838 117,529 Fund balance - Beginning of year 115,691 115,691 127,663 11,972 Fund balance - End of year $ - $ - 129,502 $ 129,502 Unrealized gain (loss) on investments 242 Total fund balance, GAAP basis - End of Year $ 129,744 Totals may not foot due to rounding 134 EXPENDITURES Current - departmental: Judicial Not allocated to organizational units: 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 726,379 Deschutes County, Oregon 728,281 15,448 63,246 Victims' Assistance - 63,246 Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) 78,694 Year Ended June 30, 2019 (129,000) (22,170) 106,830 Budgeted Amounts 129,000 81,517 (47,483) $ - Variance 59,347 Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 32,000 $ 32,000 $ 46,545 $ 14,545 Investment earnings 1,500 1,500 1,744 244 Contributions and donations - - 25 25 Intergovernmental 331,477 348,827 362,149 13,322 Transfers in 295,648 295,648 295,648 - Total revenues 660,625 677,975 706,111 28,136 EXPENDITURES Current - departmental: Judicial Not allocated to organizational units: 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 726,379 743,729 728,281 15,448 63,246 63,246 - 63,246 789,625 806,975 728,281 78,694 (129,000) (129,000) (22,170) 106,830 129,000 129,000 81,517 (47,483) $ - $ - 59,347 $ 59,347 Totals may not foot due to rounding 135 19 $ 59,366 Deschutes County, Oregon Law Library Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 7,000 $ 7,000 $ 7,124 $ 124 Intergovernmental Total revenues EXPENDITURES Current - departmental: Library services Not allocated to organizational units: 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 (1) 204,004 204,004 154,004 50,000 269,714 269,714 - 269,714 473,718 473,718 154,004 319,714 (353,000) (353,000) (33,163) 353,000 353,000 351,895 $ - $ - 318,732 Totals may not foot due to rounding 136 $ 319,328 319,837 (1,105) $ 318,732 Deschutes County, Oregon County Clerk Records Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 3,900 $ 3,900 $ 6,383 $ 2,483 Charges for services Total revenues EXPENDITURES Current - departmental: Clerk records Not allocated to organizational units: 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 110,850 110,850 101,868 (8,982) 114,750 114,750 108,251 (6,499) 131,490 131,490 323,460 323,460 (340,200) (340,200) Totals may not foot due to rounding 137 120,026 11,464 - 323,460 120,026 334,924 (11,774) 328,426 329,519 (10,681) 317,745 $ 317,745 595 S 318,340 Deschutes County, Oregon Court Facilities Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 85,850 $ 85,850 $ 79,748 $ (6,102) Investment earnings 150 150 239 89 Total revenues 86,000 86,000 79,987 (6,013) EXPENDITURES Current - departmental: Court safety 86,000 86,000 79,987 6,013 Total expenditures 86,000 86,000 79,987 6,013 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 foot due to rounding 138 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, 2019 EXPENDITURES Current - departmental: Communications - - - - Total expenditures - - - - Net change in fund balance 102,000 102,000 103,432 1,432 Fund balance - Beginning of year 59,600 59,600 59,497 (103) Fund balance - End of year $ 161,600 $ 161,600 162,929 $ 1,329 Unrealized gain (loss) on investments 304 Total fund balance, GAAP basis - End of Year $ 163,234 Totals may not foot due to rounding 139 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 2,000 $ 2,000 $ 3,432 $ 1,432 Intergovernmental 100,000 100,000 100,000 - Total revenues 102,000 102,000 103,432 1,432 EXPENDITURES Current - departmental: Communications - - - - Total expenditures - - - - Net change in fund balance 102,000 102,000 103,432 1,432 Fund balance - Beginning of year 59,600 59,600 59,497 (103) Fund balance - End of year $ 161,600 $ 161,600 162,929 $ 1,329 Unrealized gain (loss) on investments 304 Total fund balance, GAAP basis - End of Year $ 163,234 Totals may not foot due to rounding 139 EXPENDITURES Current - departmental: Community development Not allocated to organizational units: Transfers out 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 7,756,157 Deschutes County, Oregon 7,333,412 422,745 79,945 Community Development 79,945 - Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) - Year Ended June 30, 2019 9,314,778 9,314,778 7,413,357 Budgeted Amounts (823,682) (823,682) 735,406 1,559,088 Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 10,200 $ 10,200 $ 140 $ (10,060) Investment earnings 77,350 77,350 161,229 83,879 Charges for services 8,071,046 8,071,046 7,659,654 (411,392) Intergovernmental 32,500 32,500 38,547 6,047 Transfers in 300,000 300,000 289,193 (10,807) Total revenues 8,491,096 8,491,096 8,148,763 (342,333) EXPENDITURES Current - departmental: Community development Not allocated to organizational units: Transfers out 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 7,756,157 7,756,157 7,333,412 422,745 79,945 79,945 79,945 - 1,478,676 1,478,676 - 1,478,676 9,314,778 9,314,778 7,413,357 1,901,421 (823,682) (823,682) 735,406 1,559,088 $ 5,331,256 $ 5,331,256 7,428,947 Totals may not foot due to rounding 140 14,193 Deschutes County, Oregon CDD Groundwater Partnership Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 300 $ 300 $ 719 $ 419 Transfers in - - - - - - Total revenues EXPENDITURES Current - departmental: Groundwater 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 37,800 37,800 38,219 419 76,312 76,312 18,750 57,562 76,312 76,312 18,750 57,562 (38,512) (38,512) 19,469 57,981 38,512 38,512 27,278 (11,234) $ - $ - 46,747 $ 46,747 87 $ 46,834 Totals may not foot due to rounding 141 Deschutes County, Oregon Newberry Neighborhood Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 142 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 2,000 $ 2,000 $ 38,764 $ 36,764 Loan repayments 23,075 23,075 - (23,075) Total revenues 25,075 25,075 38,764 13,689 EXPENDITURES Not allocated by organizational units: Transfers out 92,437 92,437 92,437 - Contingency 9,597 9,597 - 9,597 Total expenditures 102,034 102,034 92,437 9,597 Net change in fund balance (76,959) (76,959) (53,673) 23,286 Fund balance - Beginning of year 76,959 76,959 990,623 913,664 Fund balance - End of year $ - $ - 936,950 $ 936,950 Unrealized gain (loss) on investments 313 Total fund balance, GAAP basis - End of Year $ 937,263 Totals may not foot due to rounding 142 Totals may not foot due to rounding 143 Deschutes County, Oregon GIS Dedicated Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 3,200 $ 3,200 $ 7,013 $ 3,813 Charges for services 288,500 288,500 272,405 (16,095) Intergovernmental 11,520 11,520 10,993 (527) Total revenues 303,220 303,220 290,411 (12,809) EXPENDITURES Current - departmental: General services 319,068 319,068 223,400 95,668 Not allocated to organizational units: Contingency 174,152 174,152 - 174,152 Total expenditures 493,220 493,220 223,400 269,820 Net change in fund balance (190,000) (190,000) 67,011 257,011 Fund balance - Beginning of year 190,000 190,000 275,247 85,247 Fund balance - End of year $ - $ - 342,258 $ 342,258 Unrealized gain (loss) on investments 640 Total fund balance, GAAP basis - End of Year $ 342,898 Totals may not foot due to rounding 143 Totals may not foot due to rounding 144 Deschutes County, Oregon Natural Resource Protection Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 10,000 $ 10,000 $ 20,441 $ 10,441 Charges for services 7,500 7,500 2,408 (5,092) Intergovernmental 660,889 660,889 720,962 60,073 Transfers in 35,000 35,000 30,463 (4,537) Total revenues 713,389 713,389 774,274 60,885 EXPENDITURES Current - departmental: General services 638,236 638,236 518,617 119,619 Not allocated to organizational units: Transfers out 4,892 4,892 4,892 - Contingency 632,014 632,014 - 632,014 Total expenditures 1,275,142 1,275,142 523,509 751,633 Net change in fund balance (561,753) (561,753) 250,764 812,517 Fund balance - Beginning of year 561,753 561,753 624,464 62,711 Fund balance - End of year $ - $ - 875,228 $ 875,229 Unrealized gain (loss) on investments 1,615 Total fund balance, GAAP basis - End of Year $ 876,843 Totals may not foot due to rounding 144 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 4,800 $ 4,800 $ 5,609 $ 809 Intergovernmental - - 87,967 87,967 Total revenues 4,800 4,800 93,576 88,776 EXPENDITURES Current - departmental: General services 158,661 158,661 111,244 47,417 Total expenditures 158,661 158,661 111,244 47,417 Net change in fund balance (153,861) (153,861) (17,668) 136,193 Fund balance - Beginning of year 153,861 153,861 262,659 108,798 Fund balance - End of year $ - $ - 244,991 $ 244,991 Advanced payments (234,320) Unrealized gain (loss) on investments 465 Total fund balance, GAAP basis - End of Year $ 11,136 Totals may not foot due to rounding 145 Deschutes County, Oregon Surveyor Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Licenses and permits $ 139,316 $ 139,316 $ 174,036 $ 34,720 Investment earnings 3,600 3,600 7,554 3,954 Charges for services Total revenues EXPENDITURES Current - departmental: General services Not allocated to organizational units: 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 146,651 208,951 208,951 (199,514) (199,514) 4,595 204,109 Totals may not foot due to rounding 146 240,964 $ 240,964 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 15,000 $ 15,000 $ 20,971 $ 5,971 Charges for services Total revenues EXPENDITURES Current - departmental: General services Not allocated to organizational units: 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 449,400 449,400 409,112 (40,288) 377,102 377,102 752,324 752,324 332,178 44,924 - 752,324 332,178 797,248 (680,026) (680,026) 76,934 Totals may not foot due to rounding 147 834,827 1,560 $ 836,387 756,960 $ 834,827 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Licenses and permits $ 1,003,000 $ 1,003,000 $ 1,229,475 $ 226,475 Investment earnings - - - - - - - - -- - - Total revenues EXPENDITURES Not allocated to organizational units: Transfers out 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 1,040,100 1,040,100 1,307,184 267,084 1,347,417 1,347,417 929,655 417,762 2,750,536 2,750,536 - 2,750,536 4,097,953 4,097,953 929,655 3,168,298 (3,057,853) (3,057,853) 377,529 3,435,382 $ - $ - 3,218,540 6,014 Totals may not foot due to rounding 148 Totals may not foot due to rounding 149 Deschutes County, Oregon Dog Control Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Licenses and permits $ 291,000 $ 291,000 $ 244,223 $ (46,777) Fines, forfeitures and penalties 2,500 2,500 2,720 220 Investment earnings 3,200 3,200 1,284 (1,916) Charges for services 450 450 472 22 Contributions and donations 5,000 5,000 5,107 107 Transfers in 74,042 74,042 102,542 28,500 Total revenues 376,192 376,192 356,348 (19,844) EXPENDITURES Current - departmental: Animal control 452,238 452,238 411,891 40,347 Not allocated to organizational units: Contingency 34,861 34,861 - 34,861 Total expenditures 487,099 487,099 411,891 (75,208) Net change in fund balance (110,907) (110,907) (55,543) 55,364 Fund balance - Beginning of year 110,907 110,907 58,504 (52,403) Fund balance - End of year $ - $ - 2,961 $ 2,961 Unrealized gain (loss) on investments 105 Total fund balance, GAAP basis - End of Year $ 3,066 Totals may not foot due to rounding 149 Deschutes County, Oregon Adult Parole & Probation Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 150 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Fines, forfeitures and penalties $ 220,000 $ 220,000 $ 275,701 $ 55,701 Investment earnings 40,000 40,000 77,778 37,778 Charges for services 104,500 104,500 109,936 5,436 Intergovernmental 5,996,318 5,996,318 6,000,354 4,036 Transfers in 285,189 285,189 285,189 - Total revenues 6,646,007 6,646,007 6,748,958 102,951 EXPENDITURES Current - departmental: Parole & Probation 6,505,128 6,505,128 6,208,673 296,455 Not allocated to organizational units: Transfers out 120,000 120,000 120,000 - Contingency 720,879 720,879 - 720,879 Total expenditures 7,346,007 7,346,007 6,328,673 1,017,334 Net change in fund balance (700,000) (700,000) 420,285 1,120,285 Fund balance - Beginning of year 2,200,000 2,200,000 2,333,720 133,720 Fund balance - End of year $ 1,500,000 $ 1,500,000 2,754,005 $ 1,254,005 Unrealized gain (loss) on investments 5,296 Total fund balance, GAAP basis - End of Year $ 2,759,301 Totals may not foot due to rounding 150 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, 2019 REVENUES Taxes - property Investment earnings Charges for services Other Intergovernmental Total revenues EXPENDITURES Current - departmental: Emergency services Not allocated to organizational units: Contingency Total expenditures Net change in fund balance Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 8,426,033 $ 8,426,033 $ 8,558,820 $ 132,787 13 8, 000 13 8, 000 148,294 10,294 538,980 538,980 490,928 (48,052) - - 3,022 3,022 1,095,000 1,095,000 1,258,131 163,131 10,198,013 10,198,013 10,459,195 261,182 13,379,064 13,379,064 10,570,113 2,808,951 2,818,949 2,818,949 - 2,818,949 16,198,013 16,198,013 10,570,113 5,627,900 (6,000,000) (6,000,000) (110,918) 5,889,082 Fund balance - Beginning of year 6,000,000 Fund balance - End of year $ - Unrealized gain (loss) on investments Deschutes County 9-1-1 Equipment Reserve Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 151 6,046,919 46,918 5,936,001 $ 5,936,001 10,672 2,695,418 $ 8,642,091 Deschutes County, Oregon Deschutes County 9-1-1 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, 2019 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 62,000 $ 62,000 $ 57,275 $ (4,725) Total revenues 62,000 62,000 57,275 (4,725) EXPENDITURES Current - departmental: Emergency services 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 62,000 62,000 57,275 (4,725) 2,625,000 2,625,000 2,633,115 8,115 $ 2,687,000 $ 2,687,000 2,690,390 $ 3,390 5,027 Totals may not foot due to rounding 152 $ 2,695,418 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, 2019 Totals may not foot due to rounding 153 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Taxes - property $ 523,077 $ 523,077 $ 531,677 $ 8,600 Investment earnings 5,100 5,100 7,213 2,113 Total revenues 528,177 528,177 538,890 10,713 EXPENDITURES Current - departmental: General services 491,372 491,372 427,173 64,199 Not allocated to organizational units: Transfer out 60,000 60,000 60,000 - Contingency 171,805 171,805 - 171,805 Total expenditures 723,177 723,177 487,173 236,004 Net change in fund balance (195,000) (195,000) 51,717 246,717 Fund balance - Beginning of year 195,000 195,000 182,654 (12,346) Fund balance - End of year $ - $ - 234,371 $ 234,371 Unrealized gain (loss) on investments 552 Deschutes County Extension and 4-H District Construction Fund (231,168) Total fund balance, GAAP basis - End of Year $ 3,755 Totals may not foot due to rounding 153 EXPENDITURES Deschutes County, Oregon Current - departmental: 1,638,400 Extension and 4-11 Reserve (Sub -Fund of Extension 4-H) 1,638,400 Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) (521,000) Year Ended June 30, 2019 521,000 Fund balance - End of year Budgeted Amounts $ (231,748) 579 Variance Original with Final Budget Final Budget Actual Budget REVENUES Investment earnings $ 7,400 $ 7,400 $ 10,759 $ 3,359 Intergovernmental 50,000 50,000 60,000 10,000 Debt proceeds 1,000,000 1,000,000 - (1,000,000) Transfers in 60,000 60,000 60,000 - Total revenues 1,117,400 1,117,400 130,759 (986,641) EXPENDITURES 879,135 Current - departmental: 1,638,400 General services 1,638,400 Total expenditures 1,638,400 Net change in fund balance (521,000) Fund balance - Beginning of year 521,000 Fund balance - End of year $ - Unrealized gain (loss) on investments Total fund balance, GAAP basis - End of Year Totals may not foot due to rounding 154 1,638,400 879,135 759,265 1,638,400 879,135 759,265 (521,000) (748,375) (227,375) 521,000 516,628 (4,372) $ - (231,748) $ (231,748) 579 $ (231,168) Deschutes County, Oregon Full Faith & Credit Debt Service - Nonmajor Debt Service Fund Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget and Actual (Budgetary Basis) Year Ended June 30, 2019 Totals may not foot due to rounding 155 Budgeted Amounts Original Variance Budget Final Budget Actual with Final REVENUES Investment earnings $ 11,200 $ 11,200 $ 35,548 $ 24,348 Rents 1,266,121 1,266,121 1,280,515 14,394 Charges for services 1,234,309 1,234,309 1,340,321 106,012 Intergovernmental 396,188 396,188 396,187 (1) Debt proceeds - refinance - 7,512,684 7,512,685 1 Transfers in 1,697,319 1,697,319 1,697,318 (1) Total revenues 4,605,137 12,117,821 12,262,574 144,753 EXPENDITURES Not allocated to organizational units: Debt administration 2,000 2,000 1,502 498 Debt service 4,577,362 12,090,046 12,089,722 324 Total expenditures 4,579,362 12,092,046 12,091,224 822 Net change in fund balance 25,775 25,775 171,350 145,575 Fund balance - Beginning of year 614,019 614,019 664,151 50,132 Fund balance - End of year $ 639,794 $ 639,794 835,502 $ 195,708 Unrealized gain (loss) on investments 1,561 Total fund balance, GAAP basis - End of Year $ 837,063 Totals may not foot due to rounding 155 Combining and Individual Funds Statements and Schedules — Proprietary Funds — Internal Service Funds As of and for the Year Ended June 30, 2019 Deschutes County, Oregon ASSETS Current assets: Cash and cash equivalents Investments, fair value; and accrued interest Accounts receivable Prepaid expenses Total current assets Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2019 Board of Administrative County Finance Facilities Services Commissioners Finance Reserve Legal $ 215,835 $ 60,607 $ 32,082 $ 51,755 $ 84,911 $ 45,896 465,959 130,842 69,261 110,652 183,311 99,083 325 - - - - - 17,088 - - 142,768 - - 699,207 191,449 101,343 305,175 268,222 144,978 Noncurrent assets: Capital assets net of accumulated depreciation: Land improvements 11215 - - - - - Equipment 15,249 - - - - - Vehicles 68,989 - - - - - Intangible - - - 1,073,279 - - Total capital assets 85,452 - - 1,073,279 - - Total assets 784,659 191,449 101,343 15378,454 268,222 144,978 DEFERRED OUTFLOWS OF RESOURCES Net pension liability 606,604 386,874 96,814 431,296 - 265,663 Total deferred outflows of resources 606,604 386,874 96,814 431,296 - 265,663 LIABILITIES Current liabilities: Accounts payable 92,477 3,289 5,314 10,449 8,438 1,188 Current portion of noncurrent liabilities 135,414 116,881 - 52,108 - 100,163 Total current liabilities 227,891 120,170 5,314 62,557 8,438 101,350 Noncurrent liabilities Compensated leave 163,150 140,821 - 62,781 - 120,678 Total OPEB liability 624,879 162,228 72,101 240,338 - 144,203 Net pension liability 1,626,105 1,037,082 259,525 1,156,163 - 712,156 Accrued claims payable - - - - - - Less current portion noncurrent liabilities (135,414) (116,881) - (52,108) - (100,163) Total noncurrent liabilities 2,278,719 1,223,249 331,627 1,407,174 - 876,874 Total liabilities 2,506,611 1,343,420 336,940 1,469,731 8,438 978,224 DEFERRED INFLOWS OF RESOURCES Net pension liability 103,022 65,705 16,442 73,249 - 45,119 Total OPEB liability 252,584 65,575 29,144 97,148 - 58,289 Total deferred inflows of resources 355,606 131,279 45,587 170,397 - 103,407 NET POSITION Net investment in capital assets 85,452 - - 1,073,279 - - Unrestricted (1,556,406) (896,376) (184,370) (903,657) 259,785 (670,990) Total net position $ (1,470,954) $ (896,376) $ (184,370) $ 169,623 $ 259,785 $ (670,990) Totals may not foot due to rounding 156 Deschutes County, Oregon Internal Service Funds Combining Statement of Net Position June 30, 2019 Human Information Information Health Resources Technology Tech Reserve Insurance Benefits Total ASSETS Current assets: Cash and cash equivalents $ 92,548 $ 175,826 $ 227,240 $ 2,322,135 $ 5,792,837 $ 9,101,671 Investments, fair value; and accrued interest 199,798 379,585 490,580 5,013,178 12,505,961 19,648,210 Accounts receivable 21,367 - - 22,710 142,674 187,076 Prepaid expenses 1,199 - - - - 161,055 Total current assets 314,912 555,411 717,820 7,358,023 18,441,472 29,098,012 Noncurrent assets: 262,061 638,039 - 100,585 Capital assets net of accumulated depreciation: Total deferred outflows of resources 262,061 638,039 Land improvements - - - 23,333 - 24,548 Equipment - - 297,546 - - 312,795 Vehicles - - 25,451 5,770 - 100,211 Intangible - - 31,582 - - 1,104,861 Total capital assets - - 354,579 29,104 - 1,542,415 Total assets 314,912 555,411 1,072,399 7,387,127 18,441,472 30,640,427 DEFERRED OUTFLOWS OF RESOURCES Net pension liability 262,061 638,039 - 100,585 - 2,787,937 Total deferred outflows of resources 262,061 638,039 - 100,585 - 2,787,937 Net pension liability 702,499 1,710,373 - 269,636 LIABILITIES Accrued claims payable - - - 5,133,822 Current liabilities: Less current portion noncurrent liabilities (74,793) (250,879) -(2,581,075) Accounts payable 81,152 9,900 12,899 150,934 1,843,438 2,219,477 Current portion of noncurrent liabilities 74,793 250,879 - 2,581,075 1,915,188 5,226,502 Total current liabilities 155,945 260,779 12,899 2,732,010 3,758,626 7,445,979 Noncurrent liabilities Compensated leave 90,112 302,263 - 17,066 - 896,871 Total OPEB liability 192,270 377,331 - 78,110 - 1,891,459 Net pension liability 702,499 1,710,373 - 269,636 - 7,473,539 Accrued claims payable - - - 5,133,822 1,915,188 7,049,010 Less current portion noncurrent liabilities (74,793) (250,879) -(2,581,075) (1,915,188) (5,226,502) Total noncurrent liabilities 910,089 2,139,088 - 2,917,558 - 12,084,378 Total liabilities 1,066,033 2,399,867 12,899 5,649,568 3,758,626 19,530,357 DEFERRED INFLOWS OF RESOURCES Net pension liability 44,507 108,361 - 17,083 - 473,488 Total OPEB liability 77,718 152,522 - 31,573 - 764,552 Total deferred inflows of resources 122,225 260,883 - 48,656 - 1,238,040 NET POSITION Net investment in capital assets - - 354,579 29,104 - 1,542,415 Unrestricted (611,286) (1,467,300) 704,921 1,760,384 14,682,846 11,117,552 Total net position $ (611,286) $ (1,467,300) $ 1,059,500 $ 1,789,488 $ 14,682,846 $ 12,659,967 Totals may not foot due to rounding 157 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position Year Ended June 30, 2019 Transfers in - 3,767 229,850 Board of - - Transfers out (55,270) - (3,915) - Administrative County - Finance 27,814 (27,814) - Facilities Services Commissioners Finance Reserve Legal OPERATING REVENUES (768,980) (190,869) 6,875 350,366 (503,914) Net position - End of year $ (1,470,954) $ (896,376) $ (184,370) $ Charges for services $ 3,581,480 $ 1,244,417 $ 417,151 $ 2,153,387 $ 260,000 $ 1,045,228 Total operating revenues 3,581,480 1,244,417 417,151 2,153,387 260,000 1,045,228 OPERATING EXPENSES Personnel 2,526,661 1,194,594 413,796 1,319,758 - 1,088,161 Materials and services 1,155,646 188,781 225,889 588,401 71,850 130,179 Depreciation 6,108 - - 113,172 - - Total operating expenses 3,688,415 1,383,375 639,685 2,021,331 71,850 1,218,340 Operating income (loss) (106,935) (138,959) (222,534) 132,056 188,150 (173,112) NONOPERATING REVENUES (EXPENSES) Investment earnings 18,634 7,795 3,097 2,878 9,083 6,036 Total nonoperating revenues (expenses) 18,634 7,795 3,097 2,878 9,083 6,036 Income (loss) before transfers (88,301) (131,163) (219,436) 134,934 197,233 (167,076) Transfers in - 3,767 229,850 - - Transfers out (55,270) - (3,915) - (260,000) - Equity transfer - - - 27,814 (27,814) - Change in net position (143,571) (127,396) 6,499 162,748 (90,581) (167,076) Net position - Beginning of year (1,327,383) (768,980) (190,869) 6,875 350,366 (503,914) Net position - End of year $ (1,470,954) $ (896,376) $ (184,370) $ 169,623 $ 259,785 $ (670,990) Totals may not foot due to rounding 158 Deschutes County, Oregon Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position Year Ended June 30, 2019 Human Information Information Health Resources Technology Tech Reserve Insurance Benefits Total OPERATING REVENUES - Charges for services $ 1,045,199 $ 2,360,374 $ 234,000 $ 3,328,166 $ 22,333,468 $ 38,002,870 Total operating revenues 1,045,199 2,360,374 234,000 3,328,166 22,333,468 38,002,870 OPERATING EXPENSES Personnel 1,111,692 2,344,529 - 386,813 - 10,386,003 Materials and services 285,658 357,840 103,134 2,669,324 22,354,282 28,130,983 Depreciation - - 103,080 2,383 - 224,742 Total operating expenses 1,397,350 2,702,369 206,214 3,058,519 22,354,282 38,741,728 Operating income (loss) (352,150) (341,995) 27,786 269,647 (20,813) (738,859) NONOPERATING REVENUES (EXPENSES) Investment earnings 10,683 17,239 21,711 194,749 480,207 772,113 Total nonoperating revenues (expenses) 10,683 17,239 21,711 194,749 480,207 772,113 Income (loss) before transfers (341,467) (324,756) 49,497 464,397 459,394 33,254 Transfers in - 101,000 - - - 334,617 Transfers out - (7,247) (35,000) (3,168) - (364,600) Equity transfer - (26,791) 26,791 - - - Change in net position (341,467) (257,794) 41,288 461,229 459,394 3,272 Net position - Beginning of year (269,819) (1,209,506) 1,018,213 1,328,260 14,223,453 12,656,696 Net position - End of year $ (611,286) $ (1,467,300) $ 1,059,500 $ 1,789,488 $ 14,682,846 $ 12,659,967 Totals may not foot due to rounding 159 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2019 Board of Administrative County Finance Facilities Services Commissioners Finance Reserve Legal CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 3,592,139 $ 1,244,417 $ 417,151 $ 2,153,387 $ 260,000 $ 1,045,573 Payments to employees (2,276,478) (1,141,166) (420,490) (1,409,060) - (980,197) Payments to suppliers (1,138,313) (188,895) (226,341) (564,628) (63,413) (131,508) Net cash provided (used) by operating activities 177,348 (85,645) (229,680) 179,699 196,587 (66,133) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in - 3,767 229,850 - - - Transfers out (55,270) - (3,915) (20,590) (239,410) Net cash provided (used) by noncapital financing activities (55,270) 3,767 225,935 (20,590) (239,410) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets (76,439) - - - (27,814) Net cash provided (used) by capital and related financing activities (76,439) - - - (27,814) - CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments 47,337 89,293 15,452 (109,811) 90,274 70,915 Interest 14,173 6,456 2,425 1,957 7,246 5,018 Net cash provided (used) by investing activities 61,509 95,749 17,877 (107,854) 97,521 75,932 Net increase (decrease) in cash & cash equivalents 107,149 13,872 14,131 51,255 26,884 9,800 Balances - Beginning of year 108,686 46,735 17,951 500 58,027 36,096 Balances - End of year $ 215,835 $ 60,607 $ 32,082 $ 51,755 $ 84,911 $ 45,896 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (106,935) $ (138,959) $ (222,534) $ 132,056 $ 188,150 $ (173,112) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 6,108 - - 113,172 - - Change in operating accruals Receivables 10,660 - - - - 345 Prepaid expenses (10,088) - - 15,705 - - Net pension liability 229,000 150,134 (5,197) 62,168 - 98,064 Accounts payable 27,421 (114) (452) 8,068 8,438 (1,330) Claims payable - - - - - - Compensated leave (87) (93,336) - (146,479) - 12,895 Total OPEB liability 21,269 (3,369) (1,498) (4,992) - (2,995) Net cash provided (used) by operating activities $ 177,348 $ (85,645) $ (229,680) $ 179,699 $ 196,587 $ (66,133) NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 5,954 $ 3,400 $ 4,263 $ 1,643 $ 683 $ 302 Totals may not foot due to rounding 160 Deschutes County, Oregon Internal Service Funds Combining Statement of Cash Flows Year Ended June 30, 2019 Human Information Health Resources Technology IT Reserve Insurance Benefits Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 1,056,083 $ 2,360,454 $ 234,000 $ 3,305,456 $ 22,190,794 $ 37,859,454 Payments to employees (956,918) (2,098,320) - (371,145) - (9,653,775) Payments to suppliers (220,155) (371,298) (96,759) (2,433,524) (20,860,720) (26,295,553) Net cash provided (used) by operating activities (120,990) (109,164) 137,241 500,787 1,330,074 1,910,125 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets Net cash provided (used) by capital and related financing activities 101,000 - - - 334,617 (7,247) (35,000) (3,168) - (364,600) 93,753 (35,000) (3,168) - (29,983) (26,791) (194,070) - - (325,114) (26,791) (194,070) - - (325,114) CASH FLOWS FROM INVESTING ACTIVITIES 10,884 80 - (22,710) (142,674) (143,416) Prepaid expenses Sale (purchase) of investments 134,029 102,346 163,505 508,591 1,200,188 2,312,119 Interest 8,641 13,532 16,884 146,751 360,547 583,628 Net cash provided (used) by investing activities 142,670 115,877 180,389 655,342 1,560,735 2,895,748 1,143,196 1,320,901 Compensated leave 17,970 36,141 - (1,474) Net increase (decrease) in cash & cash equivalents 21,680 73,675 88,560 1,152,961 2,890,809 4,450,776 Balances -Beginning of year 70,868 102,151 138,680 1,169,174 2,902,028 4,650,896 Balances - End of year $ 92,548 $ 175,826 $ 227,240 $ 2,322,135 $ 5,792,837 $ 9,101,672 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 (352,150) $ (341,995) $ 27,786 $ 269,647 $ (20,813) $ (738,859) 103,080 2,383 - 224,742 Receivables 10,884 80 - (22,710) (142,674) (143,416) Prepaid expenses 1,523 - - - - 7,141 Net pension liability 140,797 217,905 - 18,764 - 911,635 Accounts payable 63,979 (13,458) 6,375 58,095 350,366 507,388 Claims payable - - - 177,705 1,143,196 1,320,901 Compensated leave 17,970 36,141 - (1,474) - (174,370) Total OPEB liability (3,993) (7,837) - (1,622) - (5,037) Net cash provided (used) by operating activities $ (120,990) $ (109,164) $ 137,241 $ 500,787 $ 1,330,074 $ 1,910,125 NONCASH INVESTING ACTIVITIES Change in fair value of investments $ 2,097 $ 1,264 $ 2,496 $ 3,847 $ 5,156 $ 31,105 Totals may not foot due to rounding 161 Deschutes County, Oregon Facilities Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Charges for services Investment earnings Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - 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 - OPEB Deferred inflows of resources - pension Net position, GAAP basis - End of year Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget $ 3,504,129 $ 3,504,129 $ 3,581,480 $ 77,351 6,000 6,000 14,371 8,371 3,510,129 3,510,129 3,595,851 85,722 3,628,741 3,698,741 3,508,563 190,178 55,270 55,270 55,270 - 306,118 236,118 - 236,118 3,990,129 3,990,129 3,563,833 426,296 (480,000) (480,000) 32,018 512,018 480,000 480,000 573,441 93,441 $ - $ - 605,458 $ 605,458 Totals may not foot due to rounding 162 1,272 85,452 606,604 (163,150) (624,879) (1,626,105) (252,584) (103,022) $ (1,470,954) Deschutes County, Oregon Administrative Services Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 Unrealized gain (loss) on investments 357 Deferred outflows of resources 386,874 Accrued compensated leave (140,821) Other postemployment benefits (162,228) Net pension liability (1,037,082) Deferred inflows of resources - OPEB (65,575) Deferred inflows of resources - pension (65,705) Net position, GAAP basis - End of year $ (896,376) Totals may not foot due to rounding 163 Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget REVENUES Charges for services $ 1,247,305 $ 1,247,305 $ 1,244,417 $ (2,889) Investment earnings 3,800 3,800 6,152 2,352 Transfers in 40,000 40,000 3,767 (36,233) Total revenues 1,291,105 1,291,105 1,254,336 (36,769) EXPENDITURES Currrent - departmental: County services 1,384,202 1,384,202 1,329,947 54,255 Not allocated to organizational units: Contingency 156,903 156,903 - 156,903 Total expenditures 1,541,105 1,541,105 1,329,947 211,158 Net change in fund balance (250,000) (250,000) (75,612) 174,389 Fund balance - Beginning of year 250,000 250,000 263,415 13,415 Fund balance - End of year $ - $ - 187,803 $ 187,803 Unrealized gain (loss) on investments 357 Deferred outflows of resources 386,874 Accrued compensated leave (140,821) Other postemployment benefits (162,228) Net pension liability (1,037,082) Deferred inflows of resources - OPEB (65,575) Deferred inflows of resources - pension (65,705) Net position, GAAP basis - End of year $ (896,376) Totals may not foot due to rounding 163 Deschutes County, Oregon Board of County Commissioners Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Charges for services Investment earnings Transfers in Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Transfers out Contingency Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Deferred outflows of resources Other postemployment benefits Net pension liability Deferred inflows of resources - OPEB Deferred inflows of resources - pension Net position, GAAP basis - End of year Budgeted Amounts Original Budget Final Budget Actual $ 417,151 $ 417,151 $ 417,151 1,500 1,500 2,414 229,850 229,850 229,850 648,501 648,501 649,415 Variance with Final Budget 914 914 669,410 669,410 646,379 23,031 3,915 3,915 3,915 - 50,176 50,176 - 50,176 723,501 723,501 650,294 73,207 (75,000) (75,000) (879) 74,121 75,000 75,000 96,720 21,720 $ - $ - 95,841 $ 95,841 Totals may not foot due to rounding 164 189 96,814 (72,101) (259,525) (29,144) (16,442) $ (184,370) Deschutes County, Oregon Finance Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 EXPENDITURES Currrent - departmental: County services 2,017,210 2,077,210 1,997,461 79,749 Not allocated to organizational units: Contingency 160,282 100,282 - 100,282 Total expenditures 2,177,492 2,177,492 1,997,461 180,031 Net change in fund balance Budgeted Amounts Fund balance - Beginning of year 120,000 120,000 135,922 15,922 Fund balance - End of year $ - $ - 294,424 $ 294,424 Unrealized gain (loss) on investments Variance Capital assets (net of accumulated depreciation) Original Deferred outflows of resources with Final Accrued compensated leave Budget Final Budget Actual Budget REVENUES (1,156,163) Deferred inflows of resources - OPEB (97,148) Charges for services $ 2,054,592 $ 2,054,592 $ 2,153,387 $ 98,795 Investment earnings 2,900 2,900 2,576 (324) Total revenues 2,057,492 2,057,492 2,155,963 98,471 EXPENDITURES Currrent - departmental: County services 2,017,210 2,077,210 1,997,461 79,749 Not allocated to organizational units: Contingency 160,282 100,282 - 100,282 Total expenditures 2,177,492 2,177,492 1,997,461 180,031 Net change in fund balance (120,000) (120,000) 158,502 278,502 Fund balance - Beginning of year 120,000 120,000 135,922 15,922 Fund balance - End of year $ - $ - 294,424 $ 294,424 Unrealized gain (loss) on investments 302 Capital assets (net of accumulated depreciation) 1,073,279 Deferred outflows of resources 431,296 Accrued compensated leave (62,781) Other postemployment benefits (240,338) Net pension liability (1,156,163) Deferred inflows of resources - OPEB (97,148) Deferred inflows of resources - pension (73,249) Net position, GAAP basis - End of year $ 169,623 Totals may not foot due to rounding 165 Deschutes County, Oregon Finance Reserve Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 REVENUES Charges for services Investment earnings Total revenues EXPENDITURES Currrent - departmental: County services Not allocated to organizational units: Transfers out Total expenditures Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Unrealized gain (loss) on investments Net position, GAAP basis - End of year Budgeted Amounts Original Variance with Budget Final Budget Actual Final Budget $ 260,000 $ 260,000 $ 260,000 $ - 6,000 6,000 6,986 986 266,000 266,000 266,986 986 282,400 282,400 99,664 182,736 260,000 260,000 260,000 - 542,400 542,400 359,664 182,736 (276,400) (276,400) (92,678) 183,722 276,400 276,400 351,963 75,563 $ - $ - 259,284 $ 259,284 Totals may not foot due to rounding 166 $ 259,785 Deschutes County, Oregon Legal Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 Budgeted Amounts Unrealized gain (loss) on investments 270 Deferred outflows of resources 265,663 Accrued compensated leave (120,678) Other postemployment benefits (144,203) Net pension liability (712,156) Deferred inflows of resources - OPEB (58,289) Deferred inflows of resources - pension (45,119) Net position, GAAP basis - End of year $ (670,990) Totals may not foot due to rounding 167 Original Variance with Budget Final Budget Actual Final Budget REVENUES Charges for services $ 1,044,029 $ 1,044,029 $ 1,045,228 $ 1,199 Investment earnings 6,000 6,000 4,772 (1,228) Total revenues 1,050,029 1,050,029 1,050,000 (29) EXPENDITURES Currrent - departmental: County services 1,152,089 1,152,089 1,110,375 41,714 Not allocated to organizational units: Contingency 97,940 97,940 - 97,940 Total expenditures 1,250,029 1,250,029 1,110,375 139,654 Net change in fund balance (200,000) (200,000) (60,376) 139,624 Fund balance - Beginning of year 200,000 200,000 203,896 3,896 Fund balance - End of year $ - $ - 143,521 $ 143,521 Unrealized gain (loss) on investments 270 Deferred outflows of resources 265,663 Accrued compensated leave (120,678) Other postemployment benefits (144,203) Net pension liability (712,156) Deferred inflows of resources - OPEB (58,289) Deferred inflows of resources - pension (45,119) Net position, GAAP basis - End of year $ (670,990) Totals may not foot due to rounding 167 Deschutes County, Oregon Human Resources Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 Unrealized gain (loss) on investments 545 Deferred outflows of resources 262,061 Accrued compensated leave (90,112) Other postemployment benefits (192,270) Net pension liability (702,499) Deferred inflows of resources - OPEB (77,718) Deferred inflows of resources - pension (44,507) Net position, GAAP basis - End of year $ (611,286) Totals may not foot due to rounding 168 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 1,055,134 $ 1,055,134 $ 1,045,199 $ (9,935) Investment earnings 9,000 9,000 8,188 (812) Total revenues 1,064,134 1,064,134 1,053,387 (10,747) EXPENDITURES Currrent - departmental: County services 1,300,518 1,300,518 1,242,576 57,942 Not allocated to organizational units: Contingency 148,616 148,616 - 148,616 Total expenditures 1,449,134 1,449,134 1,242,576 206,558 Net change in fund balance (385,000) (385,000) (189,189) 195,811 Fund balance - Beginning of year 385,000 385,000 422,404 37,404 Fund balance - End of year $ - $ - 233,215 $ 233,215 Unrealized gain (loss) on investments 545 Deferred outflows of resources 262,061 Accrued compensated leave (90,112) Other postemployment benefits (192,270) Net pension liability (702,499) Deferred inflows of resources - OPEB (77,718) Deferred inflows of resources - pension (44,507) Net position, GAAP basis - End of year $ (611,286) Totals may not foot due to rounding 168 Deschutes County, Oregon Information Techonology Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 Net position, GAAP basis - End of year $ (1,467,300) Totals may not foot due to rounding 169 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 2,394,624 $ 2,394,624 $ 2,360,374 $ (34,250) Investment earnings 9,000 9,000 13,391 4,391 Transfers in 101,000 101,000 101,000 - Total revenues 2,504,624 2,504,624 2,474,765 (29,859) EXPENDITURES Currrent - departmental: County services 2,777,832 2,777,832 2,482,951 294,881 Not allocated to organizational units: Transfers out 7,247 7,247 7,247 - Contingency 272,545 272,545 - 272,545 Total expenditures 3,057,624 3,057,624 2,490,198 567,426 Net change in fund balance (553,000) (553,000) (15,433) 537,567 Fund balance - Beginning of year 553,000 553,000 559,907 6,907 Fund balance - End of year $ - $ - 544,474 $ 544,474 Unrealized gain (loss) on investments 1,036 Deferred outflows of resources 638,039 Accrued compensated leave (302,263) Other postemployment benefits (377,331) Net pension liability (1,710,373) Deferred inflows of resources - OPEB (152,522) Deferred inflows of resources - pension (108,361) Net position, GAAP basis - End of year $ (1,467,300) Totals may not foot due to rounding 169 Deschutes County, Oregon Information Techonology Reserve Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 EXPENDITURES Currrent - departmental: County services 472,000 472,000 297,205 174,795 Not allocated to organizational units: Transfers out 35,000 35,000 35,000 - Total expenditures 507,000 507,000 332,205 174,795 Net change in fund balance Budgeted Amounts (259,000) (81,649) 177,351 Fund balance - Beginning of year 728,624 Variance 785,231 Original Fund balance - End of year with Final $ 469,624 Budget Final Budget Actual Budget REVENUES Charges for services $ 234,000 $ 234,000 $ 234,000 $ - Investment earnings 14,000 14,000 16,555 2,555 Total revenues 248,000 248,000 250,555 2,555 EXPENDITURES Currrent - departmental: County services 472,000 472,000 297,205 174,795 Not allocated to organizational units: Transfers out 35,000 35,000 35,000 - Total expenditures 507,000 507,000 332,205 174,795 Net change in fund balance (259,000) (259,000) (81,649) 177,351 Fund balance - Beginning of year 728,624 728,624 785,231 56,607 Fund balance - End of year $ 469,624 $ 469,624 703,582 $ 233,958 Unrealized gain (loss) on investments 1,339 Capital assets (net of accumulated depreciation) 354,579 Net position, GAAP basis - End of year $ 1,059,500 Totals may not foot due to rounding 170 Deschutes County, Oregon Insurance Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 Net position, GAAP basis - End of year $ 1,789,488 Totals may not foot due to rounding 171 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 3,484,944 $ 3,484,944 $ 3,328,166 $ (156,778) Investment earnings 85,000 85,000 148,890 63,890 Total revenues 3,569,944 3,569,944 3,477,056 (92,888) EXPENDITURES Currrent - departmental: County services 3,858,097 3,858,097 2,862,764 995,333 Not allocated to organizational units: Transfers out 3,168 3,168 3,168 - Contingency 5,308,679 5,308,679 - 5,308,679 Total expenditures 9,169,944 9,169,944 2,865,932 6,304,012 Net change in fund balance (5,600,000) (5,600,000) 611,124 6,211,124 Fund balance - Beginning of year 5,600,000 5,600,000 6,582,283 982,283 Fund balance - End of year $ - $ - 7,193,407 $ 7,193,407 Unrealized gain (loss) on investments 13,681 Capital assets (net of accumulated depreciation) 29,104 Deferred outflows of resources 100,585 Accrued compensated leave (17,066) Other postemployment benefits (78,110) Net pension liability (269,636) Accrued claims payable (5,133,822) Deferred inflows of resources - OPEB (31,573) Deferred inflows of resources - pension (17,083) Net position, GAAP basis - End of year $ 1,789,488 Totals may not foot due to rounding 171 Deschutes County, Oregon Health Benefits Schedule of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual (Budgetary Basis) Year Ended June 30, 2019 EXPENDITURES Currrent - departmental: County services 23,144,255 23,144,255 21,211,086 1,933,169 Not allocated to organizational units: Contingency 14,318,894 14,318,894 - 14,318,894 Total expenditures 37,463,149 37,463,149 21,211,086 16,252,063 Net change in fund balance (16,051,586) (16,051,586) 1,488,590 17,540,176 Fund balance - Beginning of year 16,051,586 16,051,586 15,075,316 (976,270) Fund balance - End of year $ - $ - 16,563,905 $ 16,563,905 Unrealized gain (loss) on investments 34,129 Accrued claims payable (1,915,188) Net position, GAAP basis - End of year $ 14,682,846 Totals may not foot due to rounding 172 Budgeted Amounts Variance Original with Final Budget Final Budget Actual Budget REVENUES Charges for services $ 21,191,563 $ 21,191,563 $ 22,333,468 $ 1,141,905 Investment earnings 220,000 220,000 366,207 146,207 Total revenues 21,411,563 21,411,563 22,699,675 1,288,112 EXPENDITURES Currrent - departmental: County services 23,144,255 23,144,255 21,211,086 1,933,169 Not allocated to organizational units: Contingency 14,318,894 14,318,894 - 14,318,894 Total expenditures 37,463,149 37,463,149 21,211,086 16,252,063 Net change in fund balance (16,051,586) (16,051,586) 1,488,590 17,540,176 Fund balance - Beginning of year 16,051,586 16,051,586 15,075,316 (976,270) Fund balance - End of year $ - $ - 16,563,905 $ 16,563,905 Unrealized gain (loss) on investments 34,129 Accrued claims payable (1,915,188) Net position, GAAP basis - End of year $ 14,682,846 Totals may not foot due to rounding 172 Fiduciary Funds Statement of Changes in Assets and Liabilities — Agency Funds As of and for the Year Ended June 30, 2019 Deschutes County, Oregon $ 4,554,774 $ 383,725,998 $ 382,835,776 $ 5,444,996 Totals may not foot due to rounding 173 Deschutes County Fiduciary Funds Statement of Changes in Assets and Liabilities - Agency Funds - Detail Activity Year Ended June 30, 2019 Balance Balance July 1, 2018 Additions Deductions June 30, 2019 Amounts Held for Others Assets Cash, cash equivalents and investments, at fair value; plus accrued interest $ 4,551,774 $ 383,495,762 $ 382,622,410 $ 5,425,126 Accounts receivable 3,000 230,236 213,366 19,870 $ 4,554,774 $ 383,725,998 $ 382,835,776 $ 5,444,996 Liabilities Accounts payable $ 66,123 $ 8,144,021 $ 8,075,221 $ 134,923 Due to other entities Governmental 2,862,311 374,231,700 374,252,646 2,841,365 Others 1,626,340 1,350,277 507,909 2,468,708 $ 4,554,774 $ 383,725,998 $ 382,835,776 $ 5,444,996 Totals may not foot due to rounding 173 Other Financial Schedules As of and for the Year Ended June 30, 2019 Deschutes County, Oregon Deschutes County, Oregon Schedule of Property Tax Transactions - All County Taxes June 30, 2019 Beginning Turnovers from Balance and FY Interest County Taxes Receivable Tax Year 2019 Levy Adjustments (Discount) Treasurer June 30, 2019 FY 2010 20,857 (2,792) 3,287 6,897 14,456 FY 2011 19,216 (2,783) 2,469 5,501 13,401 FY 2012 19,429 (264) 4,847 11,915 12,097 FY 2013 28,971 (876) 5,885 14,125 19,855 FY 2014 46,462 (3,221) 11,325 28,740 25,826 FY 2015 388,768 (5,880) 104,077 389,553 97,412 FY 2016 959,063 (13,718) 146,224 627,514 464,055 FY 2017 1,922,381 (22,190) 152,279 936,908 1,115,562 FY 2018 4,561,057 (29,175) 200,496 2,706,318 2,026,059 FY 2019 378,761,290 (321,478) (9,633,136) 363,936,571 4,870,105 TOTALS $ 386,782,192 $ (402,931) $ (8,997,099) 368,672,971 $ 8,709,191 Other Distributions: Interest earned on unsegregated taxes Other tax distribution and credits TOTAL CASH COLLECTIONS Summary of Taxes Receivable at June 30, 2019: Deschutes County General Fund Special Revenue Funds Other taxing jurisdictions 138,013 $ 368,811,128 * * Amounts collected during the fiscal year include $799,521 that was withheld from disbursement per ORS 305.286 Totals may not foot due to rounding 174 $ 724,667 1,051,758 $ 8,709,191 Deschutes County, Oregon Schedule of Long -Term Debt Principal Transactions Year Ended June 30, 2019 Final Amount of Outstanding Bonds Outstanding Date of Maturity Original July 1, Bonds Called and June 30, Series Issue Date Issue 2018 Issued Matured 2019 Pension Bonds Series 2002 03/28/2002 06/01/2028 $ 5,429,586 $ 3,861,753 $ $ 88,139 $ 3,773,615 Series 2004 05/27/2004 06/01/2028 7,090,000 5,660,000 335,000 5,325,000 Total Pension Bonds 12,519,586 9,521,753 - 423,139 9,098,615 Bonds Series 2008 12/30/2008 06/01/2028 9,635,000 6,080,000 6,080,000 - Series 2009 04/09/2009 06/01/2028 3,215,000 1,970,000 1,970,000 - Series 2010 05/27/2010 12/01/2029 1,320,000 930,000 65,000 865,000 Refunding Series 2012 03/29/2012 12/01/2032 26,345,000 20,675,000 1,185,000 19,490,000 Series 2013 08/08/2013 06/01/2038 8,405,000 7,265,000 250,000 7,015,000 Refunding Series 2019 03/12/2019 06/01/2028 6,455,000 - 6,455,000 - 6,455,000 Total Bonds 55,375,000 36,920,000 6,455,000 9,550,000 33,825,000 Notes from Direct Borrowings Refunding Series 2015 12/08/2015 12/01/2026 3,775,000 3,001,100 - 398,700 2,602,400 Refunding Series 2016 05/25/2016 06/01/2027 6,277,000 5,223,000 543,000 4,680,000 Total Notes 10,052,000 8,224,100 - 941,700 7,282,400 Total Long -Term Debt $ 77,946,586 $ 54,665,853 $ 6,455,000 $ 10,914,839 $ 50,206,015 Totals may not foot due to rounding 175 Deschutes County, Oregon Schedule of Long -Term Debt Interest Transactions Year Ended June 30, 2019 Interest 1,579,025 Rates on Outstanding Outstanding July 1, Bonds Series Balances 2018 Issued Pension Bonds Series 2002 Series 2004 Total Pension Bonds Bonds Series 2008 Series 2009 Series 2010 Refunding Series 2012 Series 2013 Refunding Series 2019 Total Bonds Notes from Direct Borrowings Refunding Series 2015 Refunding Series 2016 Total Notes Total Long -Term Debt 6.85% $ 2,135,814 $ 5.35%-6.095% 2,101,566 4,237,380 Coupons Outstanding Called and June 30, Matured 2019 $ 469,969 $ 1,665,846 343,201 1,758,365 813,170 3,424,211 4-4.625% 1,579,025 1,579,025 3.375 - 4.45% 497,055 497,055 - 2-4% 229,397 - 32,628 196,769 2-4% 4,972,903 598,814 4,374,089 3.25-4.5% 3,638,738 - 296,931 3,341,806 5.00% - 1,787,826 70,826 1,717,000 10,917,118 1,787,826 3,075,278 9,629,665 1.99-2.49% 238,209 - 55,755 182,454 1.68% 448,459 87,746 360,713 686,668 - 143,501 543,166 Totals may not foot due to rounding 176 $ 15,841,166 $ 1,787,826 $ 4,031,949 $ 13,597,042 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Pension Obligation Bonds June 30, 2019 Totals may not foot due to rounding 177 Total Requirements Series 2002 Series 2004 Year of Maturity Principal Interest Total Principal Interest Principal Interest 2020 $ 503,615 $ 792,544 $ 1,296,158 $ 118,615 $ 469,493 $ 385,000 $ 323,051 2021 805,000 550,261 1,355,261 365,000 250,368 440,000 299,893 2022 920,000 498,792 1,418,792 420,000 225,365 500,000 273,427 2023 1,040,000 439,947 1,479,947 480,000 196,595 560,000 243,352 2024 1,170,000 373,383 1,543,383 540,000 163,715 630,000 209,668 2025 700,000 297,995 997,995 - 126,725 700,000 171,270 2026 1,465,000 255,330 1,720,330 685,000 126,725 780,000 128,605 2027 1,640,000 160,866 1,800,866 770,000 79,803 870,000 81,064 2028 855,000 55,095 910,095 395,000 27,058 460,000 28,037 $ 9,098,615 $ 3,424,211 $ 12,522,825 $ 3,773,615 $ 1,665,845 $ 5,325,000 $ 1,758,365 Totals may not foot due to rounding 177 Year of Maturity 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Governmental Activities June 30, 2019 Total Requirements Series 2010 Principal Interest Total Principal $ 2,115,539 $ 1,116,457 $ 3,231,996 $ 65,000 $ 2,188,510 1,046,672 3,235,182 65,000 2,262,236 977,480 3,239,716 70,000 2,351,317 894,737 3,246,054 70,000 2,305,329 808,277 3,113,606 75,000 2,389,863 724,348 3,114,212 80,000 2,243,015 637,549 2,880,564 80,000 2,320,858 550,140 2,870,998 85,000 2,412,678 459,387 2,872,065 90,000 1,599,498 364,980 1,964,477 90,000 1,659,273 311,798 1,971,071 95,000 1,619,048 258,009 1,877,056 - 1,677,800 203,471 1,881,271 1,732,575 145,876 1,878,451 435,000 107,550 542,550 455,000 87,975 542,975 480,000 67,500 547,500 500,000 45,900 545,900 520,000 23,400 543,400 Ref Series 2012 Interest Principal 30,799 $ 1,001,091 28,858 1,029,600 26,713 1,058,159 24,394 1,094,824 21,806 994,375 18,900 1,022,218 15,900 1,058,015 12,700 1,085,858 9,200 1,117,678 5,600 1,149,498 1,900 1,189,273 1,229,048 1,272,800 1,312,575 Interest 450,591 425,136 398,449 365,310 330,984 303,221 272,017 239,859 206,806 172,799 137,717 100,828 61,890 21,001 $ 31,267,537 $ 8,831,507 $ 40,099,044 $ 865,000 $ 196,769 $ 15,615,010 $ 3,486,608 Totals may not foot due to rounding 178 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Governmental Activities June 30, 2019 Totals may not foot due to rounding 179 Series 2013 Series 2019 Direct Borrowing -2015 Year of Maturity Principal Interest Principal Interest Principal Interest 2020 $ 255,000 $ 288,181 $ 585,000 $ 322,750 $ 209,448 $ 24,135 2021 265,000 279,256 615,000 293,500 213,909 19,922 2022 275,000 269,981 645,000 262,750 214,077 19,587 2023 285,000 260,356 680,000 230,500 221,493 14,177 2024 295,000 250,381 715,000 196,500 225,954 8,606 2025 305,000 238,581 750,000 160,750 232,646 2,896 2026 320,000 226,381 785,000 123,250 - - 2027 330,000 213,581 820,000 84,000 2028 345,000 200,381 860,000 43,000 2029 360,000 186,581 - - 2030 375,000 172,181 - - 2031 390,000 157,181 - - - - 2032 405,000 141,581 - - - - 2033 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 - - - - $ 7,015,000 $ 3,341,806 $ 6,455,000 $ 1,717,000 $ 1,317,527 $ 89,324 Totals may not foot due to rounding 179 Deschutes County, Oregon Schedule of Future Debt Service Requirements of Full Faith and Credit and Direct Borrowings Business Type Activities June 30, 2019 Totals may not foot due to rounding 180 Total Requirements Refunding Series 2012 Direct Borrowing - 2015 Direct Borrowing - 2016 Year of Maturity Principal Interest Total Principal Interest Principal Interest Principal Interest 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 - - - - $ 9,839,863 $ 1,341,325 $11,181,188 $ 3,874,990 $ 887,482 $ 1,284,873 $ 93,130 $ 4,680,000 $ 360,713 Totals may not foot due to rounding 180 Statistical Section As of and for the Year Ended June 30, 2019 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 182-191 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 192-197 These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. Debt Capacity 198-204 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 205-206 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 207-210 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. 181 Governmental activities Net investment in capital assets Restricted Unrestricted Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) 211111 $ 89,584,653 3,755,874 72,846,870 Fiscal Year 2n> > 76112 2m $ 92,525,275 3,979,615 73,592,055 $ 95,512,157 4,015,788 71 M6 '161 $ 89,462,800 2,368,923 76,086,991 21114 $ 90,528,453 899,558 85,864,467 Total governmental activities net position $ 166,187,397 $ 170,096,945 $ 170,734,308 $ 167,918,714 $ 177,292,478 Business -type activities Net investment in capital assets $ 23,311,911 $ 25,780,444 $ 25,824,953 $ 27,369,640 $ 27,996,595 Restricted 1,177,729 1,191,785 951,696 726,437 326,768 Unrestricted 615,719 (1,399,646) (1,667,939) (3,269,965) (1,578,435) Total business -type activities net position $ 25,105,359 $ 25,572,583 $ 25,108,710 $ 24,826,112 $ 26,744,928 Primary government Net investment in capital assets $ 112,896,564 $ 118,305,719 $ 121,337,110 $ 116,832,440 $ 118,525,048 Restricted 4,933,603 5,171,400 4,967,484 3,095,362 1,226,325 Unrestricted 73,462,589 72,192,409 69,538,424 72,817,030 84,286,032 Total primary government net position $ 191,292,756 $ 195,669,528 $ 195,843,018 $ 192,744,832 $ 204,037,405 Totals may not foot due to rounding 182 Deschutes County, Oregon Net Position by Component - Last Ten Fiscal Years (accrual basis of accounting) Total governmental activities net position $ 162,723,762 $ 153,719,213 $ 158,214,300 $ 152,206,168 $ 170,458,513 Business -type activities Net investment in capital assets $ 31,628,811 $ 33,549,044 $ 35,249,434 $ 37,025,828 $ 35,942,205 Restricted 416,356 257,743 - - - Unrestricted (3,620,616) (4,431,920) (3,895,146) (2,045,079) 1,559,167 Total business -type activities net position $ 28,424,551 $ 29,374,867 $ 31,354,288 $ 34,980,750 $ 37,501,372 Primary government Fiscal Year Net investment in capital assets 2015 2016 2017 2018 2019 Governmental activities 58,190,535 61,257,124 60,223,775 51,604,150 66,660,268 Net investment in capital assets $ 91,385,492 $ 101,724,105 $ 108,576,334 $ 113,719,602 $ 115,293,413 Restricted 57,774,179 60,999,381 60,223,775 51,604,150 66,660,268 Unrestricted 13,564,091 (9,004,273) (10,585,809) (13,117,584) (11,495,168) Total governmental activities net position $ 162,723,762 $ 153,719,213 $ 158,214,300 $ 152,206,168 $ 170,458,513 Business -type activities Net investment in capital assets $ 31,628,811 $ 33,549,044 $ 35,249,434 $ 37,025,828 $ 35,942,205 Restricted 416,356 257,743 - - - Unrestricted (3,620,616) (4,431,920) (3,895,146) (2,045,079) 1,559,167 Total business -type activities net position $ 28,424,551 $ 29,374,867 $ 31,354,288 $ 34,980,750 $ 37,501,372 Primary government Net investment in capital assets $ 123,014,302 $ 135,273,150 $ 143,825,767 $ 150,745,430 $ 151,235,618 Restricted 58,190,535 61,257,124 60,223,775 51,604,150 66,660,268 Unrestricted 9,943,475 (13,436,194) (14,480,955) (15,162,662) (9,936,001) Total primary government net position $ 191,148,312 $ 183,094,080 $ 189,568,588 $ 187,186,918 $ 207,959,885 Totals may not foot due to rounding 183 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Total primary government program revenues $ 80,354,447 $ 76,555,827 $ 76,846,896 $ 77,767,282 $ 90,100,587 Net (Expense)/Revenue Governmental activities $ (45,574,240) $ (60,473,529) $ (63,704,765) $ (65,112,999) $ (56,917,421) Business -type activities (3,268,529) (2,651,889) (3,305,787) (3,084,584) (459,255) Total primary government net expense $ (48,842,769) $ (63,125,418) $ (67,010,552) $ (68,197,583) $ (57,376,677) Totals may not foot due to rounding 184 Fiscal Year 2010 2011 2012 2013 2014 Expenses Governmental activities: General government $ 25,860,938 $ 23,520,870 $ 25,576,233 $ 25,997,251 $ 26,487,066 Public safety 50,033,277 53,944,031 56,696,103 57,806,152 57,786,656 County roads 14,701,828 18,600,706 16,436,367 16,139,486 15,441,429 Health and welfare 23,831,929 28,828,892 30,416,145 31,682,855 35,154,506 Interest and fiscal charges 3,401,395 3,275,788 2,716,110 2,485,174 2,556,364 Total governmental activities expenses 117,829,367 128,170,287 131,840,958 134,110,918 137,426,020 Business -type activities: Solid waste 7,335,596 7,347,661 7,801,912 8,122,538 6,327,028 Fair & expo center 3,710,074 3,819,399 3,876,575 3,392,264 3,368,464 RV park 322,179 343,898 338,003 339,145 355,752 Total business -type activities expenses 11,367,849 11,510,958 12,016,490 11,853,947 10,051,244 Total primary government expenses $129,197,216 $139,681,245 $143,857,448 $145,964,865 $147,477,264 Program Revenues Governmental activities: Charges for services: General government $ 12,272,431 $ 11,744,342 $ 9,975,482 $ 11,827,132 $ 11,593,147 Public safety 7,508,624 7,434,816 6,317,924 8,876,636 6,252,467 County roads 13,118,125 13,808,489 15,917,719 14,730,662 16,933,084 Health and welfare 1,018,990 1,747,716 2,062,633 2,243,963 5,222,623 Operating grants and contributions 29,127,520 32,195,732 33,630,072 31,233,012 40,070,038 Capital grants and contributions 9,209,437 765,663 232,363 86,514 437,240 Total governmental program revenues 72,255,127 67,696,758 68,136,193 68,997,919 80,508,599 Business -type activities: Charges for services: Solid waste 6,362,100 6,665,487 6,506,366 6,793,369 7,364,322 Fair & expo center 1,536,329 1,992,262 1,963,398 1,761,108 1,783,377 RV park 115,126 162,049 154,633 165,096 217,036 Operating grants and contributions 85,765 39,271 86,306 49,790 50,964 Capital grants and contributions - - - - 176,289 Total business -type program revenues 8,099,320 8,859,069 8,710,703 8,769,363 9,591,988 Total primary government program revenues $ 80,354,447 $ 76,555,827 $ 76,846,896 $ 77,767,282 $ 90,100,587 Net (Expense)/Revenue Governmental activities $ (45,574,240) $ (60,473,529) $ (63,704,765) $ (65,112,999) $ (56,917,421) Business -type activities (3,268,529) (2,651,889) (3,305,787) (3,084,584) (459,255) Total primary government net expense $ (48,842,769) $ (63,125,418) $ (67,010,552) $ (68,197,583) $ (57,376,677) Totals may not foot due to rounding 184 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Total primary government program revenues $ 91,890,509 $107,307,688 $ 98,851,866 $114,614,975 $115,221,305 Net (Expense)/Revenue Governmental activities $ (41,801,988) $ (79,329,594) $ (69,065,723) $ (70,969,644) $ (67,404,738) Business -type activities (811,190) (2,213,620) (1,153,403) (124,060) 548,475 Total primary government net expense $ (42,613,178) $ (81,543,214) $ (70,219,127) $ (71,093,704) $ (66,856,263) Totals may not foot due to rounding 185 (continued) Fiscal Year 2015 2016 2017 2018 2019 Expenses Governmental activities: General government $ 25,448,635 $ 35,463,814 $ 30,011,545 $ 36,105,776 $ 32,523,927 Public safety 46,351,357 74,941,547 65,276,283 64,258,765 70,253,604 County roads 16,818,974 18,269,586 17,627,051 18,122,984 17,645,717 Health and welfare 31,944,749 43,850,703 39,370,403 50,068,445 45,086,737 Interest and fiscal charges 2,385,397 2,284,295 2,175,774 2,104,761 2,024,851 Total governmental activities expenses 122,949,114 174,809,945 154,461,056 170,660,730 167,534,837 Business -type activities: Solid waste 7,614,444 9,272,404 10,028,102 10,131,364 9,047,200 Fair & expo center 3,466,338 4,290,630 4,173,908 4,504,592 5,085,859 RV park 473,792 477,924 407,928 411,993 409,672 Total business -type activities expenses 11,554,573 14,040,958 14,609,937 15,047,948 14,542,731 Total primary government expenses $134,503,687 $188,850,903 $169,070,993 $185,708,679 $182,077,568 Program Revenues Governmental activities: Charges for services: General government $ 14,463,863 $ 18,675,554 $ 16,435,374 $ 16,271,509 $ 15,487,329 Public safety 6,051,487 5,620,314 6,765,336 4,653,489 3,870,888 County roads 17,690,071 19,168,851 19,082,452 21,577,005 24,081,955 Health and welfare 1,836,516 2,021,579 1,940,978 2,683,447 2,892,082 Operating grants and contributions 40,911,962 42,990,874 40,087,120 52,587,330 53,767,845 Capital grants and contributions 193,226 7,003,178 1,084,073 1,918,307 30,000 Total governmental program revenues 81,147,126 95,480,351 85,395,333 99,691,086 100,130,099 Business -type activities: Charges for services: Solid waste 8,088,089 8,865,019 9,791,844 11,187,151 11,421,763 Fair & expo center 2,257,064 2,500,139 2,710,373 2,511,127 3,085,338 RV park 346,987 408,513 384,279 438,716 476,365 Operating grants and contributions 51,244 53,667 570,037 786,895 107,740 Capital grants and contributions - - - - - Total business -type program revenues 10,743,383 11,827,338 13,456,534 14,923,889 15,091,206 Total primary government program revenues $ 91,890,509 $107,307,688 $ 98,851,866 $114,614,975 $115,221,305 Net (Expense)/Revenue Governmental activities $ (41,801,988) $ (79,329,594) $ (69,065,723) $ (70,969,644) $ (67,404,738) Business -type activities (811,190) (2,213,620) (1,153,403) (124,060) 548,475 Total primary government net expense $ (42,613,178) $ (81,543,214) $ (70,219,127) $ (71,093,704) $ (66,856,263) Totals may not foot due to rounding 185 (continued) Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not foot due to rounding 186 Fiscal Year 2010 2011 2012 2013 2014 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, general purpose levy $ 33,441,245 $ 33,663,728 $ 33,682,238 $ 33,971,127 $ 35,079,263 Property taxes, sheriff services levy 24,094,637 23,666,633 23,551,915 24,285,093 25,284,848 Property taxes, bonded debt levy 3,513,631 3,460,558 3,290,215 3,083,800 1,982,347 Transient room tax 2,959,337 3,151,974 3,357,365 3,656,126 4,340,159 Investment earnings 1,450,594 981,569 908,178 787,866 986,444 Transfers 212,883 (541,385) (447,771) (337,272) (539,938) Loss on discontinued project - - - (3,149,335) - Total governmental activities 65,672,327 64,383,077 64,342,140 62,297,405 67,133,123 Business -type activities: Taxes Property taxes, bonded debt levy 2,459,814 2,505,852 2,334,005 2,417,152 2,086,179 Investment earnings 170,817 71,876 60,134 47,562 52,612 Special item - - - - - Transfers (212,883) 541,385 447,771 337,272 539,938 Total business -type activities 2,417,748 3,119,113 2,841,910 2,801,986 2,678,729 Total primary government $ 68,090,075 $ 67,502,190 $ 67,184,050 $ 65,099,391 $ 69,811,852 Change in Net Position Governmental activities $ 20,098,087 $ 3,909,548 $ 637,375 $ (2,815,594) $ 10,215,702 Business -type activities (850,781) 467,224 (463,877) (282,598) 2,219,473 Total primary government $ 19,247,306 $ 4,376,772 $ 173,498 $ (3,098,192) $ 12,435,175 Totals may not foot due to rounding 186 Deschutes County, Oregon Changes in Net Position - Last Ten Fiscal Years (accrual basis of accounting) Totals may not foot due to rounding 187 (concluded) Fiscal Year 2015 2016 2017 2018 2019 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, general purpose levy $ 31,747,666 $ 33,533,883 $ 35,363,260 $ 36,746,058 $ 38,353,835 Property taxes, sheriff services levy 26,640,494 29,508,509 31,128,138 33,028,808 35,960,629 Property taxes, bonded debt levy 97,428 84,233 - - - Transient room tax 5,248,199 6,068,098 6,408,477 7,011,471 7,829,489 Investment earnings 1,188,209 1,643,757 1,351,378 1,940,860 5,151,181 Transfers (559,305) (513,431) (690,447) (631,722) (1,638,051) Loss on discontinued project - - - - - Total governmental activities 64,362,691 70,325,049 73,560,806 78,095,475 85,657,083 Business -type activities: Taxes Property taxes, bonded debt levy 2,623,509 2,555,831 2,368,281 - - Investment earnings 71,740 94,674 74,094 129,837 334,098 Special item - - - 3,369,910 - Transfers 559,305 513,431 690,447 631,722 1,638,050 Total business -type activities 3,254,554 3,163,935 3,132,822 4,131,469 1,972,148 Total primary government $ 67,617,246 $ 73,488,985 $ 76,693,630 $ 82,226,944 $ 87,629,231 Change in Net Position Governmental activities $ 22,560,704 $ (9,004,545) $ 4,495,083 $ 7,125,831 $ 18,252,345 Business -type activities 2,443,364 950,315 1,979,419 4,007,409 2,520,623 Total primary government $ 25,004,068 $ (8,054,229) $ 6,474,504 $ 11,133,240 $ 20,772,968 Totals may not foot due to rounding 187 (concluded) Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) 2010 General Fund Unreserved $ 9,933,612 Nonspendable n/a Committed n/a Assigned n/a Unassigned n/a Total General Fund $ 9,933,612 All Other Governmental Funds $ 15,327,349 Reserved/Nonspendable $ 806,696 Unreserved, reported in: 11,821,006 Special revenue funds 58,071,242 Capital projects funds 958,911 Debt service funds 1,101,183 Total Unreserved 60,131,336 Restricted, reported in: 480,416 Special revenue funds n/a Capital projects funds n/a Debt service funds n/a Total Restricted - Committed, reported in: 740,173 Special revenue funds n/a Capital projects funds n/a Debt service funds n/a Total Committed - Assigned, reported in: - Special revenue funds n/a Capital projects funds n/a Debt service funds n/a Total Assigned - Unassigned, reported in: $ 60,591,912 Capital projects funds n/a Total Unassigned - Total all other governmental funds $ 60,938,032 Fiscal Year 2011 2012 2013 2014 36,777,325 42,713,782 52,491,478 64,710,171 9,481,113 10,082,716 8,657,374 8,031,837 4,623,757 5,244,633 6,836,112 7,649,760 $ 14,104,870 $ 15,327,349 $ 15,493,486 $ 15,681,597 13,396,391 11,821,006 10,372,114 13,456,033 $ 888,106 $ 894,228 $ 1,272,249 $ 1,418,998 36,777,325 42,713,782 52,491,478 64,710,171 1,251,643 1,048,534 - - 661,359 585,900 476,186 7,631 38,690,327 44,348,216 52,967,664 64,717,802 13,396,391 11,821,006 10,372,114 13,456,033 122,361 122,361 - 606,292 - - 579,897 480,416 13,518,752 11,943,367 10,952,011 14,542,741 6,236,570 5,903,050 4,170,144 - 174,647 740,173 759,229 - 839,529 752,599 - - 7,250,746 7,395,822 4,929,373 - (3,223,574) (3,989,721) (2,057,525) (1,791,930) (3,223,574) (3,989,721) (2,057,525) (1,791,930) $ 57,124,357 $ 60,591,912 $ 68,063,772 $ 78,887,611 * 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 foot due to rounding 188 Deschutes County, Oregon Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) 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 $ 79,647,264 $ 86,475,197 $ 89,822,437 $ 94,701,992 $114,083,519 * 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 foot due to rounding 189 Fiscal Year 2015 2016 2017 2018 2019 General Fund Unreserved $ - $ - $ - $ - $ - Nonspendable 516,523 498,337 469,020 445,442 144,473 Committed 1,782,674 3,944,405 7,505,074 10,670,276 13,048,013 Assigned 6,222,698 6,311,144 5,369,619 6,598,027 6,743,043 Unassigned 9,183,941 10,620,333 10,483,020 11,461,766 12,458,530 Total General Fund $ 17,705,836 $ 21,374,220 $ 23,826,733 $ 29,175,511 $ 32,394,059 All Other Governmental Funds Reserved/Nonspendable $ 2,542,621 $ 2,663,703 $ 2,859,789 $ 1,786,302 $ 2,475,033 Unreserved, reported in: Special revenue funds - - - - - Capital projects funds - - - - - Debt service funds - - - - - Total Unreserved - - - - - Restricted, reported in: Special revenue funds 62,650,077 71,847,628 65,125,286 67,996,477 94,057,863 Capital projects funds - - 7,809,685 9,542,598 - Debt service funds 10,970 - - - - Total Restricted 62,661,047 71,847,628 72,934,971 77,539,075 94,057,863 Committed, reported in: Special revenue funds 13,566,455 11,491,305 13,469,571 14,715,465 17,550,624 Capital projects funds 394,405 - - - - Debt service funds 482,736 472,561 558,106 661,151 - Total Committed 14,443,596 11,963,866 14,027,677 15,376,615 17,550,624 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 $ 79,647,264 $ 86,475,197 $ 89,822,437 $ 94,701,992 $114,083,519 * 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 foot due to rounding 189 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Expenditures General government 22,473,173 22,614,321 Fiscal Year 23,036,320 24,185,783 Public safety 2010 2011 2012 2013 2014 Revenues 15,868,512 16,730,401 16,638,310 13,832,024 14,252,333 Taxes $ 63,729,316 $ 63,806,103 $ 64,546,883 $ 66,038,130 $ 67,157,527 Licenses and permits 549,013 689,142 778,227 900,224 1,285,225 Fines, forfeitures and penalties 1,645,313 1,596,621 1,417,245 1,355,143 1,563,725 Special assessments 257,916 193,605 161,466 176,518 125,999 Interest and rents 2,360,035 2,595,846 2,559,272 2,463,869 2,616,264 Intergovernmental 77,287,814 82,326,719 85,663,964 83,911,882 95,464,165 Charges for services 17,615,561 17,515,802 16,159,689 19,108,543 21,137,727 Other 925,947 505,740 439,269 832,505 681,354 Total expenditures 160,428,455 167,295,094 166,443,440 167,118,527 Total revenues 164,370,915 169,229,578 171,726,015 174,786,814 190,031,985 Expenditures General government 22,473,173 22,614,321 22,606,034 23,036,320 24,185,783 Public safety 74,626,653 78,159,464 81,610,756 83,718,648 87,910,026 County roads 15,868,512 16,730,401 16,638,310 13,832,024 14,252,333 Health and welfare 25,840,307 31,725,577 32,905,053 35,248,861 39,671,077 Education 1,078,769 979,980 687,511 684,632 685,916 Debt service Principal 4,595,659 5,678,728 5,296,870 5,720,036 5,387,017 Interest 3,296,705 3,157,964 2,631,321 2,386,628 2,438,429 Trustee fees 2,455 3,218 2,950 2,610 27,810 Debt issuance costs 49,471 - 372,216 23,429 219,610 Capital outlay 12,596,751 8,245,442 3,692,419 2,465,339 12,563,515 Total expenditures 160,428,455 167,295,094 166,443,440 167,118,527 187,341,516 Excess of revenues over (under) expenditures 3,942,460 1,934,484 5,282,575 7,668,287 2,690,469 Other Financing Sources (Uses) Transfers in 19,839,328 12,313,816 10,701,765 13,191,583 11,233,103 Transfers out (20,008,290) (14,012,126) (11,673,036) (13,625,455) (11,831,461) Debt issuance 1,320,000 40,000 21,893,362 3,000,000 8,555,000 Bond premium/discount (4,838) - - 49,109 218,092 Payments to escrow agent - - (21,520,747) (3,023,549) - Increase/(decrease) in inventory 62,510 81,410 6,122 378,021 146,749 Total other financing sources (uses) 1,208,710 (1,576,900) (592,534) (30,291) 8,321,483 Net change in fund balances $ 5,151,170 $ 357,584 $ 4,690,041 $ 7,637,996 $ 11,011,952 Debt service as a percentage of noncapital expenditures 5.8% 5.6% 5.0% 4.9% 4.5% Totals may not foot due to rounding 190 Deschutes County, Oregon Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years (modified accrual basis of accounting) Totals may not foot due to rounding 191 Fiscal Year 2015 2016 2017 2018 2019 Revenues Taxes $ 64,043,653 $ 69,254,662 $ 72,725,317 $ 76,915,410 $ 82,039,791 Licenses and permits 1,395,229 1,513,320 1,804,402 1,658,904 1,846,647 Fines, forfeitures and penalties 1,713,279 1,666,944 1,600,649 1,466,676 1,525,702 Special assessments 116,946 85,439 70,655 66,830 60,172 Interest and rents 2,801,165 3,191,867 3,042,808 3,555,878 6,254,855 Intergovernmental 97,854,728 102,449,003 92,313,282 105,988,087 111,616,358 Charges for services 24,577,248 16,657,205 18,295,208 19,115,410 17,409,307 Other 1,867,249 1,268,489 1,073,927 875,507 1,577,098 Total revenues 194,369,496 196,086,929 190,926,249 209,642,702 222,329,931 Expenditures General government 25,028,450 26,813,546 26,361,777 29,061,175 30,624,676 Public safety 89,007,502 91,353,457 86,897,612 93,072,384 97,971,830 County roads 15,038,232 15,351,922 16,195,155 14,241,574 13,601,142 Health and welfare 46,096,095 36,778,966 38,856,976 46,636,552 41,929,068 Education 656,218 610,125 263,106 - - Debt service Principal 3,270,413 3,015,338 2,895,157 3,013,331 9,963,729 Interest 2,354,101 2,259,334 2,151,095 2,079,976 2,021,171 Trustee fees - - 2,500 2,375 106,325 Debt issuance costs - - - - - Capital outlay 6,906,759 7,675,279 10,376,297 7,506,798 10,105,264 Total expenditures 188,357,770 183,857,968 183,999,674 195,614,166 206,323,204 Excess of revenues over (under) expenditures 6,011,726 12,228,961 6,926,574 14,028,536 16,006,727 Other Financing Sources (Uses) Transfers in 14,542,905 10,564,827 23,284,540 18,339,320 28,268,112 Transfers out (15,350,629) (12,403,247) (24,593,177) (19,240,045) (29,876,179) Debt issuance - 1,911,626 - - 7,512,685 Bond premium/discount - - - - - Payments to escrow agent - (1,904,328) - - - Increase/(decrease) in inventory 242,641 98,478 181,815 (155,630) 688,731 Total other financing sources (uses) (565,083) (1,732,643) (1,126,822) (1,056,355) 6,593,348 Net change in fund balances $ 5,446,643 $ 10,496,318 $ 5,799,752 $ 12,972,180 $ 22,600,075 Debt service as a percentage of noncapital expenditures 3.1% 3.0% 2.9% 2.7% 2.7% Totals may not foot due to rounding 191 Deschutes County, Oregon Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years (in thousands of dollars) Real Property I I Personal Property Manufactured Homes Fiscal Year Ended Assessed Estimated Assessed Estimated Assessed Estimated June 30, Value Actual Value Value Actual Value Value Actual Value 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 2019 23,380,812 39,872,595 508,792 508,792 78,186 112,682 Sources: Deschutes County Assessor's Department and Deschutes County Tax Office (1) includes tax-exempt property Totals may not foot due to rounding 192 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 I Total Assessed Value(1) as a Taxable Range of Total Percentage of Assessed Estimated Assessed Assessed Estimated Direct Tax Estimated Value Actual Value Value Value Actual Value Rates Paid Actual Value 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% 668,084 736,374 51,211 24,584,663 41,230,443 2.5225-5.9725 59.752% Totals may not foot due to rounding 193 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/411 CSD 911 CSD 911 Local Option _ County districts paid by all properties _ Rates levied to taxable rural County properties: Sheriff (Rural) 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: Fiscal Year Taxes are Payable 2010 2011 2012 2013 2014 1.2783 1.2783 1.2783 1.2783 1.2783 0.1395 0.1358 0.1324 0.1291 0.0673 0.1441 0.1464 0.1369 0.1405 0.1121 0.9500 0.9200 0.9200 0.9500 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 0.2240 2.9261 2.8947 2.8818 2.9121 2.8159 1.4000 1.4000 1.4000 1.4000 1.4000 0.0868 0.0880 0.0836 0.0791 0.0723 0.0572 0.0558 0.0498 - - 0.0598 0.0551 0.0550 0.0489 0.0475 1.0499 1.0499 1.0499 1.0499 1.0499 0.4000 0.5500 0.5500 0.5500 0.5500 Sunriver Service District 3.2200 3.3100 3.3100 3.3100 3.3100 Range of County Direct Rates Paid 2.7805 - 6.2059 2.8947-6.2598 2.8818-6.2468 2.9121-6.2710 2.8159-6.1734 City and town rates Bend 2.8035 2.8035 2.8035 2.8035 2.8035 Redmond 6.1643 6.1643 4.4101 4.4101 4.4101 Sisters 2.6417 2.6417 2.6417 2.6417 2.6417 La Pine 1.9800 1.8000 1.8000 1.9000 1.9300 City of Bend Bond - - 0.2462 0.2660 0.2256 City of Bend Local Option - - - - - Bend Urban Renewal Special Levy 0.2666 0.2791 - - - City of Redmond Bond 0.1168 0.0947 0.0831 0.0870 0.0886 Library district rates 0.5500 0.5500 0.5500 0.5500 0.5500 Fire district rates 1.0924 - 3.0705 1.0924-3.0744 1.0924-3.0744 1.0924-3.0522 1.0924-3.0691 Parks and recreation district rates 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.4610 0.2200 - 1.6673 School district rates 5.5907 - 8.4371 6.4923-8.1206 6.6649-8.4065 6.6692-8.4108 6.5526-8.4699 Road district rates ).6600 - 3.6500 0.3248-3.6500 0.5180-2.7331 0.4377-3.6500 0.9005-3.6500 Other special district rates 0.3809 0.3793 0.3776 0.2895 0.2895 Sources: Deschutes County Assessor's Office and Deschutes County Finance Department Totals may not foot due to rounding 194 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/411 CSD 911 CSD 911 Local Option _ County districts paid by all properties _ Rates levied to taxable rural County properties: Sheriff (Rural) 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: Fiscal Year Taxes are Payable 2015 2016 2017 2018 2019 1.2783 1.2783 1.2783 1.2483 1.2183 0.1377 0.1273 0.1186 - - 0.9500 1.0200 1.0200 1.0200 1.0800 0.0224 0.0224 0.0224 0.0224 0.0224 0.1618 0.1618 0.1618 0.3618 0.3618 0.2000 0.2000 0.2000 - - 2.7502 2.8098 2.8011 2.6525 2.6825 1.4000 1.4000 1.4000 1.4000 1.3400 0.5090 0.0438 - - - 1.0499 1.0499 1.0499 1.0499 1.0499 0.5500 0.5500 0.5500 0.5500 0.5500 Sunriver Service District 3.3100 3.3100 3.3100 3.3100 3.3100 Range of County Direct Rates Paid 2.7502-6.1111 2.8098-6.1198 2.8011-6.1111 2.6525-5.9625 2.6825-5.9925 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 2.8035 2.8035 2.8035 2.8035 2.8035 4.4101 4.4101 4.4101 4.4101 4.4101 2.6417 2.6417 2.6417 2.6417 2.6417 1.9800 1.9800 1.9800 1.9800 1.9800 0.2120 0.2120 0.1895 0.1789 0.1685 0.2000 0.2000 0.2000 0.2000 0.2000 0.0809 0.0809 0.0710 0.0547 0.0547 0.5500 0.5500 0.5500 0.5500 0.5500 1.0924-3.0641 1.0924-3.0641 1.0924-2.7317 1.0924-2.7317 1.0924-2.7317 0.2200 - 1.6566 0.2200 - 1.4610 0.2200-1.4610 0.2200-1.4610 0.2200-1.4610 6.2181-8.4979 6.4033-8.4012 6.5893-8.4320 6.5893-8.4320 6.4912-8.2372 0.7831-3.0000 0.8140-3.0000 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 foot due to rounding 195 Deschutes County, Oregon Principal Property Taxpayers - Current Fiscal and Nine Years Ago (1): Ranking of Principal Taxpayers is based on property taxes assessed, not the taxable assessed value. (2): Taxpayer's attributable share of total assessed value in the County. Totals may not foot due to rounding 196 2019 2010 Taxable Taxable Assessed % of Total Assessed % of Total Taxpayer Value (TAV) Rank 1 County TAV (2) Value (TAV) Rank 1 County TAV (2) TDS Baja Broadband LLC (Prev Bend Cable) $102,790,900 1 0.42% $ 34,672,900 10 0.20% Pacificorp (PP&L) 91,446,000 2 0.37% 71,084,000 1 0.40% Cascade Natural Gas Corporation 76,373,000 3 0.31% 49,835,000 4 0.28% Gas Transmission Northwest Corporation 68,665,000 4 0.28% 69,078,500 2 0.39% Touchmark at Mount Bachelor Village LLC 68,782,400 5 0.28% - - 0.00% CVSC LLC 48,589,450 6 0.20% 34,815,505 8 0.20% Centurylink Property Tax (Prev Qwest) 50,473,200 7 0.21% - - 0.00% Suterra LLC 43,086,100 8 0.18% - - - Wal-Mart Stores Inc 38,275,420 9 0.16% - - - Deschutes Brewery Inc 31,817,040 10 0.13% - - - Qwest Corporation - - - 52,701,200 3 0.30% Eagle Crest Inc - - - 38,846,710 5 0.22% Sunriver Resort Limited Partnership - - - 39,758,116 6 0.23% Pronghorn Investors LLC - - - 35,374,452 7 0.20% Sunriver Resort Limited Partnership - - - 39,758,116 6 0.23% TD Cascade Highlands LLC - - - 38,979,008 9 0.22% Total $620,298,510 2.54% $504,903,507 2.87% Source: Deschutes County Assessor's Department (1): Ranking of Principal Taxpayers is based on property taxes assessed, not the taxable assessed value. (2): Taxpayer's attributable share of total assessed value in the County. Totals may not foot due to rounding 196 Deschutes County, Oregon Property Taxes, Levies and Collections - Last Ten Fiscal Years (dollars expressed in thousands) Collected within the Fiscal Year of the Levy Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Totals may not foot due to rounding 197 Total Collections to Date Collections in Subsequent Amount Years Collected 2,926 2,414 1,850 1,427 1,179 1,008 894 831 509 58,797 58,519 57,771 58,603 59,374 62,227 65,641 68,727 69,522 73,442 Percentage of Levv 99.995% 99.995% 99.995% 99.992% 99.991% 99.967% 99.854% 99.667% 99.418% 98.679% Total Tax Levy Fiscal Year Ended for Fiscal Year Amount Percentage of June 30, (1) Collected Levy 2010 58,800 55,871 95.018% 2011 58,521 56,104 95.870% 2012 57,774 55,921 96.793% 2013 58,607 57,176 97.557% 2014 59,380 58,195 98.005% 2015 62,247 61,220 98.349% 2016 65,737 64,747 98.494% 2017 68,956 67,895 98.461% 2018 69,929 69,013 98.689% 2019 74,425 73,442 98.679% Source: Deschutes County Finance Department (1) Net of discounts and adjustments. Totals may not foot due to rounding 197 Total Collections to Date Collections in Subsequent Amount Years Collected 2,926 2,414 1,850 1,427 1,179 1,008 894 831 509 58,797 58,519 57,771 58,603 59,374 62,227 65,641 68,727 69,522 73,442 Percentage of Levv 99.995% 99.995% 99.995% 99.992% 99.991% 99.967% 99.854% 99.667% 99.418% 98.679% Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) Governmental Activities Full Faith General Limited Fiscal Obligation Tax Year Bonds Bonds 2010 11,717 12,137 2011 8,873 11,386 2012 5,853 11,223 2013 2,700 11,026 2014 175 10,799 2015 90 10,536 2016 - 10,235 2017 - 9,899 2018 - 9,522 2019 - 9,099 Full Faith Notes and Credit from Direct Obligations Borrowings Loans 45,491 - 150 43,352 - 140 42,299 - 81 39,835 - 23 45,773 - 149 42,957 - - 38,387 1,926 - 35,985 1,726 - 32,828 1,525 - 29,950 1,317 - (1) See page 205 for personal income and population data. n/a - Not available. Totals may not foot due to rounding 198 Deschutes County, Oregon Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (dollars in thousands, except per capita) Business -Type Activities General Full Faith Notes Fiscal Obligation and Credit from Direct Year Bonds Obligations Borrowings Loans Total Percentage Primary of Personal Per Government Income (1) Capita (1) 2010 15,992 16,432 - 435 102,354 1.78% 651.06 2011 14,203 15,804 - 417 94,175 1.58% 596.40 2012 12,260 15,423 - 399 87,538 1.40% 550.99 2013 9,941 14,695 - 380 78,600 1.20% 490.82 2014 7,669 13,960 - 362 78,887 1.11% 485.38 2015 5,247 13,200 - 343 72,373 0.93% 434.93 2016 2,595 4,666 8,127 - 65,936 0.76% 386.18 2017 - 4,451 7,420 - 59,481 0.62% 336.75 2018 - 4,092 6,699 - 54,666 n/a 298.84 2019 - 3,875 5,965 - 50,206 n/a 265.67 Totals may not foot due to rounding 199 Fiscal Year Deschutes County, Oregon Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years (dollars in thousands, except per capita) General Less: Amounts Obligation Bonds Available in Debt (1) Service Fund (2) Total Percentage of Estimated Actual Taxable Value of Property (3) Per Capita (4) 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% - 2019 - - - 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 192. (4) Population data can be found in the Schedule of Demographic and Economic Statistics on page 205. Totals may not foot due to rounding 200 Deschutes County, Oregon Direct and Overlapping Governmental Activities Debt June 30, 2019 (dollars in thousands) Amount Estimated Applicable to Debt Percentage Primary Governmental Unit Outstanding Applicable Government Debt repaid with property taxes Alfalfa RFPD $ 335 94.1300% $ 315 Bend Metro Park & Rec District 26,574 100.0000% 26,574 Central Oregon Community College 51,170 84.8800% 43,433 City of Bend 40,355 100.0000% 40,355 City of La Pine 375 100.0000% 375 City of Redmond 7,311 100.0000% 7,311 Cloverdale RFPD 2,335 100.0000% 2,335 Crook County School District 48,132 1.0400% 501 Crooked River Ranch RFPD 2,305 8.6900% 200 Deschutes County RFPD 2 (Bend) 8,870 100.0000% 8,870 Deschutes County School District 1 (Bend -La Pine) 370,018 100.0000% 370,018 Deschutes County School District 2 (Redmond) 126,926 94.0000% 119,306 Deschutes County School District 6 (Sisters) 18,622 99.9800% 18,618 High Desert ESD 3,313 91.8700% 3,043 La Pine Parks & Recreation District 370 100.0000% 370 Redmond Area Park & Recreation District 890 100.0000% 890 Redmond Fire & Rescue 1,079 99.9400% 1,078 Sisters RFPD (Camp Sherman) 1,570 88.7700% 1,394 Terrebonne Water District 475 100.0000% 475 Subtotal, overlapping debt 645,462 Deschutes County direct debt 40,366 Total direct and overlapping debt $ 685,828 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 foot due to rounding 201 Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Legal Debt Margin Calculation for Fiscal Year 2019 Estimated Actual Value $ 41,230,443 Estimated Actual Value $ 215,837 $ 41,230,443 Debt limit (2% of estimated actual value) 824,609 Debt limit (1% of estimated actual value) 2 412,304 Debt applicable to limit: 49,647 Debt applicable to limit: Legal debt margin $ 274,802 General obligation bonds - Limited tax bonds $ 165,568 39,049 Total net debt applicable to limit - Less: Amount set aside for repayment of debt - Total net debt applicable to limit 39,049 Legal debt margin $ 824,609 Legal debt margin $ 373,255 Fiscal Year 2010 2011 2012 2013 2014 Debt Limit (2%)' $ 663,510 $ 470,544 $ 431,674 $ 420,044 $ 443,378 Total net debt applicable to limit 27,141 22,618 17,765 12,260 7,844 Legal debt margin $ 636,369 $ 447,926 $ 413,909 $ 407,784 $ 435,534 Total net debt applicable to the limit as a percentage of debt limit 4.09% 4.81% 4.12% 2.92% 1.77% Debt Limit (1%) 2 $ 331,755 $ 235,272 $ 215,837 $ 210,022 $ 221,689 Total net debt applicable to limit 56,953 53,806 52,137 49,647 56,121 Legal debt margin $ 274,802 $ 181,466 $ 163,700 $ 160,375 $ 165,568 Total net debt applicable to the limit as a percentage of debt limit 17.17% 22.87% 24.16% ORS 287A.100 provides a debt limit on general obligation bonds of 2% of the real market value of all taxable property within the County's boundaries. This became effective January 1, 2008 superseding ORS 287.054. 2 ORS 287A.105 provides a debt limit on full faith and credit bonds of I% of the real market value of all taxable property within the County's boundaries. This became effective January 1, 2008 superseding ORS 287.053. Totals may not foot due to rounding 202 23.64% 25.32% Deschutes County, Oregon Legal Debt Margin Information - Last Ten Fiscal Years (dollars in thousands) Fiscal Year 2015 2016 2017 2018 2019 $ 507,239 $ 577,687 $ 648,312 $ 735,733 $ 824,609 5,337 2,595 - - - $ 501,902 $ 575,092 $ 648,312 $ 735,733 $ 824,609 1.05% 0.45% 0.00% 0.00% 0.00% $ 253,619 $ 288,843 $ 324,156 $ 367,867 $ 412,304 53,231 50,357 47,610 42,350 39,049 $ 200,388 $ 238,486 $ 276,546 $ 325,517 $ 373,255 20.99% 17.43% 14.69% 11.51% 9.47% Totals may not foot due to rounding 203 Fiscal Year Deschutes County, Oregon Pledged -Revenue Coverage - Last Ten Fiscal Years (dollars in thousands) Full Faith and Credit Obligations (Series 2003, 2005, 2007, 2009) Special Assessment Debt Service Collections Principal Interest Coverage 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 - - - - 2019 - - - - Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Totals may not foot due to rounding 204 Deschutes County, Oregon Demographic and Economic Statistics - Last Ten Calendar Years Year Population Personal Per Income Capita (thousands Personal Median of dollars) Income Age Public School Enrollment Unemployment Rate 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 9,522,219 50,955 41.13 26,446 4.1% 2018 182,930 n/a n/a 41.33 26,868 4.2% 2019 188,980 n/a n/a 40.33 27,008 4.5% 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, 2018, reflect county population estimates available as of December 2018. Median age figures for 2010-2019 are based on mid -year data tables. School enrollment is based on the census at the start of the 2018-19 school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2019 is an average of January through July 2019. n/a - Not available. Totals may not foot due to rounding 205 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 foot due to rounding 206 2019 2010 Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment St. Charles Medical Center 3,986 1 4.60% 2,818 1 4.60% Bend/La Pine School District 2,200 2 2.54% 1,741 2 2.84% Deschutes County 1,118 3 1.29% 1,010 3 1.65% Sunriver Resort 1,000 4 1.15% 875 5 1.43% Redmond School District 998 5 1.15% 730 7 1.19% Mt. Bachelor 975 6 1.12% 730 8 1.19% Central Oregon Community College 954 7 1.10% Safeway 704 8 0.81% City of Bend 674 9 0.78% Fred Meyer 667 10 0.77% Les Schwab Tire Centers 968 4 1.58% T -Mobile 850 6 1.39% Wal-Mart 642 9 1.05% Bend Memorial Clinic 500 10 0.82% Total Employees of Principal Employers 13,276 15.31% 10,864 17.74% Total County Nonfarm Employment 86,700 100.00% Sources: Deschutes County Finance Department, Economic Development for Central Oregon, and the Oregon Employment Department Totals may not foot due to rounding 206 Deschutes County, Oregon Full -Time Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Function/Program General government Executive 9.65 9.65 9.65 9.40 9.40 9.75 9.75 9.75 9.75 9.75 General services 199.10 194.60 193.20 190.09 185.00 188.60 199.10 200.10 202.00 205.00 Judicial 50.45 49.45 50.45 50.45 51.45 52.05 54.05 54.55 57.30 59.50 Financial 40.48 39.98 39.23 39.73 38.48 38.53 39.53 39.73 39.73 40.23 Assessment 32.15 31.25 32.00 31.75 31.00 31.00 33.00 33.00 34.26 35.26 Community developmei 25.05 19.50 17.50 17.60 17.30 19.30 20.30 25.10 27.50 30.50 Building services 22.95 22.95 22.95 23.45 23.80 23.80 25.20 25.00 25.00 26.00 Information technology 16.90 16.90 17.00 16.70 16.70 16.30 16.00 15.70 15.70 15.70 Other 6.67 6.67 6.57 5.62 5.27 4.47 4.32 4.62 4.62 4.62 Public protection Law enforcement 118.50 118.75 118.15 114.46 113.75 113.75 113.75 113.75 115.25 117.45 Corrections 199.10 194.60 193.20 190.09 185.00 188.60 199.10 200.10 202.00 205.00 Protective inspection 23.05 13.00 11.10 11.00 12.70 14.70 15.70 19.90 25.50 24.50 Other Protection 40.50 40.50 41.50 43.50 46.50 52.50 57.50 59.00 60.00 60.00 Public works Streets & highways 61.50 60.50 60.50 56.50 52.75 52.75 53.50 54.00 54.00 56.00 Sanitation 26.00 22.00 22.00 22.00 22.50 22.50 23.50 23.50 24.50 25.50 Health & welfare Health Services 170.98 196.25 214.05 218.80 245.90 248.00 265.25 303.85 313.45 309.95 Recreation & culture Fair & expo center 13.00 13.00 11.00 10.00 10.00 11.00 11.00 12.00 12.00 12.00 Other Conservation 2.00 2.00 2.00 3.00 3.00 2.00 0.00 0.00 0.00 0.00 Economic development 1.10 1.10 1.10 1.10 1.10 0.00 0.00 0.00 0.00 0.00 Total 860.03 858.05 869.95 865.15 886.60 901.00 941.45 993.55 1020.56 1031.96 Source: Deschutes County Finance Department Above amounts are for Primary Government Totals may not foot due to rounding 207 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Fiscal Year 2010 2011 2012 2013 2014 Function/Program General Government Building permits issued for new homes 109 104 127 218 Total building permits issued 636 613 643 811 Police Physical arrests 1,592 1,375 1,334 1,421 Traffic violations Citations issued 3,566 2,504 2,517 2,261 Warnings 5,091 4,727 4,317 1,906 Calls for service 33,315 32,661 33,409 33,331 Traffic stops 12,856 10,202 10,507 14,125 Solid waste Solid waste collected (tons) 207,515 192,657 177,113 185,692 Average annual per capita waste generation (pounds) 2,485 2,257 2,243 2,338 Recyclables collected (tons) 65,116 75,365 62,083 72,941 Road Street resurfacing (miles) 29.11 6.26 16.1 2.50 911 emergency services Emergency calls 57,978 54,395 59,697 58,673 Police officer initiated calls 242,851 241,785 249,032 246,458 Fire department initiated calls 19,980 19,597 21,048 21,541 Source: Deschutes County Community Development Department, Deschutes County Sheriffs Office, Deschutes Count} Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District Totals may not foot due to rounding 208 327 988 1,451 2,462 1,570 34,187 14,840 185,788 2,320 72,178 8.20 59,886 249,217 22,398 Deschutes County, Oregon Operating Indicators by Function/Program - Last Ten Fiscal Years Fiscal Year 2015 2016 2017 2018 2019 Function/Program General Government Building permits issued for new homes 355 440 555 549 Total building permits issued 1,142 1,309 1,427 1,594 Police Physical arrests 1,545 1,568 1,797 1,791 Traffic violations Citations issued 2,189 2,104 2,159 2,412 Warnings 1,883 1,547 1,159 908 Calls for service 35,664 34,535 35,285 34,893 Traffic stops 14,698 10,533 12,608 12,539 Solid waste Solid waste collected (tons) 193,779 203,896 226,325 240,844 Average annual per capita waste generation (pounds) 2,385 2,451 2,591 2,727 Recyclables collected (tons) 74,097 72,940 80,234 79,757 Road Street resurfacing (miles) 7.60 14.57 8.07 5.28 911 emergency services Emergency calls 60,460 62,181 64,158 64,047 Police officer initiated calls 250,369 252,333 256,923 250,834 Fire department initiated calls 23,655 25,308 27,426 26,894 Source: Deschutes County Community Development Department, Deschutes County Sheriffs Office, Deschutes Count} Solid Waste Department, Deschutes County Road Department, and 9-1-1 County Service District Totals may not foot due to rounding 209 574 1,564 1,810 2,382 949 35,014 13,532 238,955 2,959 60,958 8.19 68,434 261,196 27,856 Deschutes County, Oregon Capital Assets Statistics by Function/Program - Last Ten Fiscal Years Fiscal Year Function/Program Public Safety Stations 4 4 4 4 4 4 4 4 4 4 Adult correctional facilities 2 2 2 2 2 2 2 2 2 2 Special services complex 1 1 1 l 1 l l l 1 1 Road Streets (miles) 927 927 927 927 927 927 927 927 931 917 Streetlights 4 4 4 4 4 4 4 32 32 32 Flashing lights 5 5 5 5 5 5 4 5 5 5 Signals 3 3 3 3 3 3 3 3 3 3 Sources: Deschutes County Road Department and the Deschutes County Sheriff s Office Totals may not foot due to rounding 210 Audit Comments and Disclosures Required by State Regulations June 30, 2019 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. 211 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, 2019, and have issued our report thereon dated November 14, 2019. 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: 212 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 212 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. 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. 213 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 14, 2019 214 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, 2019, 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 14, 2019. 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. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 215 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 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. 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. Boise, Idaho November 14, 2019 216 ES Single Audit Compliance June 30, 2019 Deschutes County, Oregon ES 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, 2019. 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, 2019. 217 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 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. 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. Boise, Idaho November 14, 2019 218 Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2019 Accrued or Accrued or Federal Program or (Deferred) (Deferred) Federal Grantor / Pass Through Grantor / CFDA Award or Pass- Award Revenues Revenues Program Title Number Through Number Amount July 1, 2018 Receipts Expenditures July 1, 2019 U.S. Department of Agriculture $ - $ - 27,645 29,035 Direct Programs 13,095 2,412 8,845 7,288 Forest Service - 3,957 4,319 362 Cooperative Forestry Assistance- Whychus Creek 9,173 661 _ 7 and Canyon Fuels Reduction Project 10.664 15 -DG -11062765-727 $88,625 Cooperative Forestry Assistance -Deschutes 1,840,365 County Greater La Pine Basin Cohesive Strategy 10.664 16 -DG -11062765-704 102,951 Schools and Roads -Public Education and Outreach for Noxious Weed Control 10.665 16 -DG -11060120-034 14,250 Pass Through Programs State Department of Education School Breakfast Program 10.553 0904001 4,319 National Lunch School Program 10.555 0904001 9,173 State Administrative Expense Reallocation 10.560 0904001 7 Oregon Health Authority Special Supplemental Nutrition Program for Women, Infants and Children 10.557 280559/280664 667,069 Watershed Research and Trainin Cg enter 5,103 - (51,124) Fire Adapted Communities Learning Network 10.698 329-2018-103 24,840 State Department of Administrative Services Schools and Roads: Grants to States 15.904 OR -17-06 12,500 $7,972 $ 7,972 $ - $ - 27,645 29,035 14,486 13,095 2,412 8,845 7,288 855 - 3,957 4,319 362 8,512 9,173 661 _ 7 7 71,570 738,639 667,069 - - 24,840 24,840 Title I 10.665 None 1,001,940 - 1,001,940 1,001,940 Title III 10.665 None 82,513 (263,051) 82,513 111,244 (234,320) Total Department of Agriculture 1,840,365 U.S. Department of the Interior Pass Through Programs State Department of Administrative Services Non -Sale Disposals of Mineral Material 15.214 None 54,196 - 54,196 54,196 Distribution of Receipts to State and Local Governments 15.227 None 5,103 (46,021) 5,103 - (51,124) State Historic Preservation Office Historic Preservation Fund Grants 15.904 OR -17-06 12,500 10,985 13,631 3,421 775 Total Department of the Interior 57,617 U.S. Department of Justice Direct Programs Violence Against Women Office Justice Systems Response to Families 16.021 2017 -FJ -AX -0007 547,532 33,942 122,025 168,447 80,364 Improving Criminal Justice Responses Program 16.590 2018 -WE -AX -0030 449,563 - 62,807 96,289 33,481 Justice and Mental Health Collaboration Program 16.745 2018 -MO -BX -0029 700,000 - 29,639 29,639 Pass Through Programs State Department of Justice Crime Victim Assistance 16.575 2016-DAVAP-00089 61,354 - 723 723 - Crime Victim Assistance 16.575 2017-DAVAP-00015 400,465 49,415 196,353 195,808 48,870 Crime Victim Assistance 16.575 2018-DAVAP-00099 9,723 - 80 80 - Total Department of Justice 490,986 See notes to schedule of expenditures of federal awards 219 Totals may not foot due to rounding Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2019 Accrued or Accrued or Federal Program or (Deferred) (Deferred) Federal Grantor / Pass Through Grantor / CFDA Award or Pass- Award Revenues Revenues Program Title Number Through Number Amount July 1, 2018 Receipts Expenditures July 1, 2019 U.S. Department of Transportation 55,186 141,778 Pass Throueh Proerams 31,491 3,406,798 Oregon Department of Transportation 92,677 613,771 Enhanced Mobility of Seniors and 1,650,000 - Individuals with Disabilities 20.513 32186 Regional Safety 20.205 RS -19-77 Total Department of Transportation 5,202 66,739 U.S. General Services Administration 64,147 66,739 Pass Throueh Proerams 8 State Department of Administrative Services - - Disposal of Federal Surplus Real Property 39.002 None Acquisition of Federal Surplus Real Property 39.003 None Total General Services Administration 100,959 100,959 U.S. Environmental Protection Agency 51,548 14,757 Pass Throueh Proerams 49,204 - Oregon Health Authority 37,035 93,034 State Public Water System Supervision 66.432 280557 Capitalization Grants for Drinking 142,857 6,702 Water State Revolving Fund -RECOVERY 66.468 280655 Total Environmental Protection Agency 5,000 - U.S. Department of Health and Human Services - - Direct Proarams 7,019 32,663 Substance Abuse and Mental Health Services Administration 14,373 Alliance for Substance Abuse Prevention 93.276 51179SP021072-02 Alliance for Substance Abuse Prevention 93.829 IH79SM081893-01 Alliance for Substance Abuse Prevention 93.243 IH79SM080555-01 Pass Through Programs 281,390 45,193 Oregon Health Authority 8,228 71,657 Public Health Emergency Preparedness 93.069 280619 ACA Personal Responsibility Education Program 93.092 280529 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 280549 Injury Prevention and Control Research and State and Community based 93.136 280512 Projects for Assistance in Transition from Homelessness (PATH) 93.150 207001 Family Planning: Services 93.217 280558 Youth Suicide Prevention/Intervention 93.243 155020 Financing of Community Mental Health, Substance Use Disorders and Problem Gambling Services 93.788 153121 National Bioterrorism Hospital Preparedness 93.889 159526 Health Security, Preparedness and Response 93.889 160241 HIV Prevention Activities -Health Department Based 93.940 280501/280505 Block Grants for Community Mental Health Services 93.958 112001 Block Grants for Prevention and Treatment of Substance Abuse 93.959 135001 Maternal and Child Health Services Block Grant to States 93.994 180514 Total Department of Health and Human Services See notes to schedule of expenditures of federal awards 220 Totals may not foot due to rounding $ 87,371 $ 21,842 $ 43,684 $ 32,763 $ 10,921 80,000 - 45,456 69,937 24,481 102,700 235 235 235 9,178 - 9,178 9,178 - 33,791 2,815 36,606 33,791 30,036 5,005 40,052 35,047 68,838 625,000 55,186 141,778 118,083 31,491 3,406,798 - 92,677 613,771 521,094 1,650,000 - 124,614 194,880 70,266 120,175 18,179 133,052 120,075 5,202 66,739 (2,592) 64,147 66,739 - 8 8 - - 106,650 (11,062) 60,110 97,162 25,990 100,959 (4,296) 100,959 100,959 (4,296) 51,548 14,757 63,961 49,204 - 250,000 37,035 93,034 131,596 75,597 142,857 - 142,857 6,702 (136,155) 5,000 5,000 5,000 - 7,168 - - 7,019 7,019 32,663 1,439 14,373 32,663 19,729 318,507 - 318,507 318,507 - 375,514 24,760 260,957 281,390 45,193 63,429 8,228 71,657 63,429 - (continued) Deschutes County, Oregon Schedule of Expenditures of Federal Awards June 30, 2019 Total Federal Assistance See notes to schedule of expenditures of federal awards 221 Totals may not foot due to rounding $ 164,974 $ 4,772,033 $ 5,231,012 $ 623,953 (concluded) Accrued or Accrued or Federal Program or (Deferred) (Deferred) Federal Grantor / Pass Through Grantor / CFDA Award or Pass- Award Revenues Revenues Program Title Number Through Number Amount July 1, 2018 Receipts Expenditures July 1, 2019 Department of Homeland Security Pass Throuah Proerams Oregon Military Department Emergency Management Performance Grant 97.042 17-509 $ 106,070 $ 28,038 $ 35,147 $ 7,109 $ - Emergency Management Performance Grant 97.042 18-509 111,574 - 106,812 111,574 4,762 FEMA Reimbursement for Snow Removal 97.036 4328 49,745 - 49,745 49,745 - Central Oregon Wildfire Mitigation 97.047 EMS -2013 -PC -001 3,000,000 58,785 339,108 280,323 State Homeland Security Program Grant 97.067 16-225 60,000 11,978 17,139 5,161 Total Department of Homeland Security 453,912 Total Federal Assistance See notes to schedule of expenditures of federal awards 221 Totals may not foot due to rounding $ 164,974 $ 4,772,033 $ 5,231,012 $ 623,953 (concluded) Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2019 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 1.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, 2019. 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. 222 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2019 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, 2019, beginning on page 224, 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, 2019, on page 226, is provided to disclose this information. 223 Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program June 30, 2019 Department / Program Title CFDA Number Expenditures U.S. Department of Agriculture School Breakfast Program 10.553 $ 4,319 National School Lunch Program 10.555 9,173 Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 667,069 State Administrative Expense Reallocation 10.560 7 Cooperative Forestry Assistance 10.664 14,486 Schools and Roads - Grants to States 10.665 1,120,472 Fire Adapted Communities Learning Network 10.698 24,840 Total Department of Agriculture 1,840,365 U.S. Department of the Interior Non -Sale Disposals of Mineral Material 15.214 54,196 Historic Preservation Fund Grants 15.904 3,421 Total Department of the Interior 57,617 U.S. Department of Justice Justice Systems Response to Families 16.021 168,447 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 96,289 Crime Victim Assistance 16.575 196,611 Justice and Mental Health Collaboration Program 16.745 29,639 Total Department of Justice 490,986 U.S. Department of Transportation Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 32,763 Regional Safety 20.205 69,937 Total Department of Transportation 102,700 U.S. General Services Administration Disposal of Federal Surplus Real Property 39.002 235 Acquisition of Federal Surplus Real Property 39.003 9,178 Total General Services Administration 9,413 U.S. Environmental Protection Agency State Public Water System Supervision 66.432 33,791 Capitalization Grants for Drinking Water State Revolving Funds 66.468 35,047 Total Environmental Protection Agency 68,838 Totals may not foot due to rounding 224 (continued) Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Department and Program June 30, 2019 Department / Program Title CFDA Number Expenditures U.S. Department of Health and Human Services Public Health Emergency Preparedness 93.069 120,075 ACA Personal Responsibility Education Program 93.092 66,739 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.136 97,162 Projects for Assistance in Transition from Homelessness (PATH) 93.150 100,959 Family Planning Services 93.217 49,204 Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 326,476 Alliance for Substance Abuse Prevention 93.276 118,083 Financing of Community Mental Health, Substance Use Disorders and Problem Gambling Services 93.788 6,702 Alliance for Substance Abuse Prevention 93.829 613,771 National Bioterrorism Hospital Preparedness Program 93.889 12,019 HIV Prevention Activities -Health Department Based 93.940 32,663 Block Grants for Community Mental Health Services 93.958 318,507 Block Grants for Prevention and Treatment of Substance Abuse 93.959 281,390 Maternal and Child Health Services Block Grant to the States 93.994 63,429 Total Health and Human Services 2,207,180 U.S. Department of Homeland Security Emergency Management Performance Grants 97.042 118,683 FEMA Reimbursement for Snow Removal 97.036 49,745 Central Oregon Wildfire Mitigation 97.047 280,323 State Homeland Security Program Grant 97.067 5,161 Total U.S. Department of Homeland Security 453,912 Total Federal Assistance $ 5,231,012 Totals may not foot due to rounding 225 (concluded) Deschutes County, Oregon Notes to the Schedule of Expenditures of Federal Awards Schedule of Federal Awards by Cluster June 30, 2019 Federal Awards by Cluster Program CFDA Number Expenditures Child Nutrition Cluster Program School Breakfast Program 10.553 $ 4,319 National School Lunch Program 10.555 9,173 Total Child Nutrition Cluster Program 13,492 Forest Service Schools and Roads Cluster Schools and Roads - Grants to States 10.665 1,120,472 Total Forest Service Schools and Roads Cluster 1,120, 472 Transit Services Programs Cluster Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 32,763 Total Transit Services Programs Cluster 32,763 Highway Planning and Construction Cluster Regional Safety 20.205 69,937 Total Highway Planning and Construction Cluster 69,937 Drinking Water State Revolving Fund Cluster Capitalization Grants for Drinking Water State Revolving Funds 66.468 35,047 Total Drinking Water State Revolving Fund Cluster 35,047 Totals may not foot due to rounding 226 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2019 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weaknesses identified? No Significant deficiencies identified not considered to be material weaknesses? None Reported Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weaknesses identified? No Significant deficiencies identified not considered to be material weaknesses? None Reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516? No Identification of major programs tested: Name of Federal Program CFDA Number U. S. Department of Agriculture Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 U. S. Department of Agriculture Forest Service Schools and Roads Cluster Schools and Roads — Grants to States 10.665 U. S. Department of Health and Human Services Alliance for Substance Abuse Prevention 93.829 Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? No 227 Deschutes County, Oregon Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2019 Section II - Financial Statement Findings None Noted Section III Federal Award Findings and Questioned Costs None Noted 228 ES ES coG