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HomeMy WebLinkAboutDeschutes County Popular Annual Financial Report FY2019DESCHUTES COUNTY POPULAR ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDING JUNE 30, 2019 f { r + PROVIDE FEEDBACK TO THE FINANCE DEPARTMENT CLICK HERE r 1 • 'E{+ I ' :'ti to" _ W i Table of Contents Page Introduction(see below).................................................................................. 1 Where Do Your Taxes Go 2 NetPosition....................................................................................................... 3 Assets& Liabilities............................................................................................ 4 Revenues & Expenses—Fiscal Year 2019 ...................................................... 5 Revenues & Expenses -10 Year History........................................................ 6 Debt..................................................................................................................... 7 PropertyTaxes................................................................................................... 8 Demographics & Staffing Ratio....................................................................... 9 Additional Information..................................................................................... 10 Introduction Residents of Deschutes County, The Deschutes County Finance Department has recently released its 200+ page annual financial report for Fiscal Year ended June 30, 2019; however, in an attempt to provide residents with a relatively quick -read of the annual financial report, the Deschutes County Finance Department has also prepared this Popular Annual Financial Report (PAFR). As encouraged by the Government Financial Officer Association (GFOA), this inaugural PAFR will provide insight into long-term trends of the County's largest financial indicators found in the Comprehensive Annual Financial Report (CAFR). All financial information included in this report is from the independently -audited Comprehensive Annual Financial Report (CAFR). The CAFR was audited by Eide Bailly, an independent auditing firm and received an unmodified (clean) opinion. The CAFR is available online at: www.deschutes.orgICAFR �0* n?'I", '' - Greg Munn, Chief Financial Officer Jam Wood, Accounting Manager Where do your taxes go? Although Deschutes County is the tax collector for Deschutes County, overall only 17 cents of each dollar paid in taxes is kept by the County. The remaining 83 cents is passed through to other government agencies to provide for schools, police & fire departments, parks, libraries, and more. *The allocation below is for a City of Bend taxpayer. All other city/rural allocations are similar. LL Ln N N n EM 21C N —Is Co DESCHUTES OUBIIC Bend Park & LIBRARY Recreation D I S T R I C T low yi r_ � j� 4 N �, 17C 10C 4C Deschutes County uses its taxes to fund Public Safety, Health & Welfare, and General Government. 12C 2C 3C Public Safety includes the Sheriffs Office, Deschutes 9-1-1, and Community Justice. Health & Welfare includes Deschutes County Health Services and Veterans' Services. General Government includes a variety of departments, such as the Assessor's Office, Clerk's Office, District Attorney's Office (including Victims' Assistance), and Justice Court. NOTE. Tax allocations based on the City of Bend Taxing District (Tax Code 1001). 2 DESCHUTES COUNTY, OREGON Net Position (in millions) Deschutes County's net position as of June 30, 2019 was approximately $208 million. Net Position is broken into two types: Capital Assets and Other Assets. Net nosition—Canital assets represents the current value of County infrastructure, offset for amounts owed. County infrastructure includes the County's investment in: • Roads • Vehicles & equipment • Buildings for providing services The net position of capital assets could be viewed in a similar manner as home -equity (i.e. in 2019, capital assets are worth $151 million more than what we still owe). Net position—Other assets represents the current value of all other assets, offset for amounts we owe. • Cash reserves • Inventory • Loans (businesses or people owing the County money) The current value in net position of all other assets could be viewed in a similar manner to that of a checking account. (i.e. other assets are worth $57 million more than what is owed). The graphics below show the last 10 years of net position as well as the net position per capita. The per capita measure is useful in monitoring the size of government versus the size of the population. (in millions) $150 $100 $50 ■ Net posit on - Other assets ■ Net posit on - Capital assets nJ n*1 r�J c -V Net position - Capital assets $ 113 $ 118 $ 121 $ 117 $ 118 5 123 $ 135 $ 144 $ 151 $ 151 Net position - Other assets 78 77 75 75 48 68 48 32 36 57 Total Net Position $ 191 $ 195 $ 196 $ 192 $ 166 $ 191 $ 183 $ 176 $ 187 $ 208 $1,400 $ 1,101 per capita $1,100 +****+* $800 - o cvM �Ir Ln � � oo M V_ FD FD C3 FD E o rel c'V c'V N N ry CIA �N 3 DESCHUTES COUNTY, OREGON Assets Total assets held by Deschutes County as of June 30, 2019 was $439 million. Assets represent items of value owned by Deschutes County. Approximately 44% of asset value is related to capital assets (roads, vehicles & equipment, and buildings), 43% of asset value is held as cash and investments, and the remaining 13% is made up of receivables and inventory. (in millions) Current year breakout of assets held as of June 30, 2019 is represented with the graphic below. Capital assets $ 195 $ 197 $ 192 $ 182 $ 184 $ 184 $ 190 $ 193 $ 194 $ 193 Cash and investments 109 104 105 112 125 127 141 148 164 191 Other 26 26 27 23 {1 5) 34 24 63 49 55 Total Assets $ 330 $ 327 $ 324 $ 317 $ 294 $ 345 $ 355 $ 404 $ 407 $ 439 Liabilities Total liabilities incurred by Deschutes County as of June 30, 2019 was $231 million. Liabilities represent amounts owed by Deschutes County. Approximately 59% of our liabilities is in relation to future pension and other post -employment benefits (OPEB) obligations, 22% of our liabilities is related to long-term debt, 12% is related to vendor amounts payable, and the final 7% is for insurance claims and closing the Knott landfill. (in millions) Current year breakout of liabilities held as of June 30, 2019 is represented with the graphic below. Pension $ - $ - $ - $ - $ - $ - $ 46 $ 96 $ 87 $ 102 Debt 102 94 88 79 79 72 66 59 55 52 OPEB 6 8 10 14 17 46 20 33 34 35 Payables 17 16 15 16 18 19 21 22 30 27 Claims & closure 14 14 15 16 14 17 19 18 14 15 Total Liabilities $ 139 $ 132 $ 128 $ 125 S 128 S 154 $ 172 $ 228 $ 220 $ 231 4 DESCHUTES COUNTY, OREGON Revenues — Fiscal Year 2019 Deschutes County revenues for Fiscal Year 2019, were $202.8 million (a 3.0% increase over the prior year). Deschutes County's revenue makeup consists of 3 different sources: • Taxes: include both property tax revenue and room -tax revenue. Total tax revenue for the year was $82 million (a 6.5% increase over the prior year). • Charges for Services: include payments made by residents for a specific service provided to the resident (e.g. building permit application). Total charges for services for the year was $61 million (a 3.4% increase over the prior year). • Grants and Contributions: include payments made for services by the Federal, State, and other local governments. Total grants and contributions for the year was $54 million (a -1.8% decrease from the prior year). Charges for Services 30°x6 Takes 40°x6 Grants and contributions 27% $202.8 Million Expenses —Fiscal Year 2019 Health & Welfare 25% $182.1 Million Expense Public Safety 38°% General Government 18% County Roads 10% Solid Waste and Fair & Expo 8% Interest an fiscal charges 1 °lo Revenue Other Deschutes County expenses for Fiscal Year 2019, were $182.1 million (a -2.2% decrease from the prior year). Change from the prior year: Public Safety: + 9.3% Health & Welfare: — 9.9% General Government: — 9.9% County Roads: — 2.6% Solid Waste / Fair & Expo: — 3.4% Interest and fiscal charges: - 3.8% Public Safety includes the Sheriff's Office, Deschutes 9-1-1, and Community Justice. Health & Welfare includes Deschutes County Health Services and Veterans' Services. General Government includes a variety of departments, such as the Assessor's Office, Clerk's Office, District Attorney's Office (including Victims' Assistance), and Justice Court. 5 DESCHUTES COUNTY, OREGON Revenues — 10 Year History $100 50 (ill millions) Taxes Chargesfor services Grants and contributions other Taxes $ 66 $ 66 $ 66 $ 67 $ 69 $ 66 $ 72 $ 75 $ 77 $ 82 Charges for services 42 44 43 46 49 51 57 57 59 61 Grants and contributions 38 33 34 31 41 41 50 42 55 54 Other 2 1 1 (2) 1 1 2 1 5 5 Total Revenues $ 148 $ 144 $ 144 $ 143 $ 160 $ 160 $ 1B1 $ 176 $ 197 $ 203 Expenses 10 Year History.: rom changes in Stab l/ eityfd after a few yearsaccounting rules. 69 $ 64 $ 7D Health and welfare $100 29 30 32 44 32 44 PubTic safety 50 45 General government Health and 24 26 26 welfare 25 35 32 General �� County roads 15 19 16 16 19 government 18 000 18 County roads S.W. & Fair 11 12 S.W. & Fair 12 13 Interest and fiscal 14 16 15 charges (in millions) 3 3 3 Public safety $ 5D $ 54 $ 57 $ 58 $ 73 $ 46 $ 75 $ 69 $ 64 $ 7D Health and welfare 24 29 30 32 44 32 44 45 50 45 General government 26 24 26 26 33 25 35 32 36 33 County roads 15 19 16 16 19 17 18 19 18 18 S.W. & Fair 11 12 12 12 13 12 14 16 15 15 Interest and fiscal charges 3 3 3 2 3 2 2 2 2 2 Total Expenses $ 129 $ 14D $ 144 $ 146 $ 185 $ 135 $ 189 S .B_ S 186 $ 182 6 DESCHUTES COUNTY, OREGON Over the last 10 years, Deschutes County has reduced its debt from $102.4 million down to $50.2 million (a 51 % reduction). On June 30, 2019, Deschutes County owed: • $9.8 million for the buildings and equipment at the Knott landfill and the Fair & Expo center. • $31.3 million on general government buildings and equipment used in County operations • $9.1 on pension bonds that were issued during 2002 and 2004 to offset the long-term costs of the pension liability. Pension Bonds Government Solid Waste 1 Fair & Expo On February 19th, 2019, Moody's© announced an upgrade to the County's debt rating. The rating was increased from Aa2 to Aa1. Moody's© credited Deschutes County's "large and growing tax base", "healthy reserve levels and liquidity", and its "modest debt burden and manageable pension liabilities" for its increase in credit worthiness. Moody's rating of Aa1 represents that Deschutes County is a "High Grade" investment to municipal investors. The chart below presents the amount of debt outstanding each year, as well as the amount attributable to each resident in Deschutes County. The debt per capita metric illustrates the County's debt burden in relation to an individual resident. tn z a J J_ 7 z m W H L!'I 0 120 ' e, $ 651 PER CAPITA 10 Year History of Debt M $ 266 PER CAPITA VON 2010 2011 2012 2013 2014 2015 2016 2017 20118 2019 H CL W W a 7 DESCHUTES COUNTY, OREGON Property Taxes In Oregon, property taxes are billed based on the assessed value of a property Assessed Value x multiplied by the approved (levied) tax rate. Tax Rate = Tax Bill Deschutes County is funded, in part, by 5 separate tax levies. 11 111 • General Deschutes County Levy: District Attorney, Assessor, Community Justice, and more, for all residents. • Countywide Law Enforcement Levy: County Jail, Civil Unit, and Search and Rescue for all residents. Rural Law Enforcement Levy: Detectives, Patrol, and Records for residents outside of city limits. • 9-1-1 Levy: Traditional 9-1-1 services for all residents. • Extension and 4-H Levy: Extension and 4-H services for all residents. The cumulative total of pax rate levied and the assessed value for the past 10 years are shown below. 10 Year History of the Tax Rates^ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *Rate per $1,000 of assessed value (excludes expired local option levies) 10 Year History of Assessed Value r•-•-•-•-•-•-•-•-•-• ' The average annual change in assessed value BO over the 10 year period is 3.78% • } o 25.: 20 • 15 ' ' 10 * 6.3%* 5.0%*5.79b* 5.940* 0.7%* -0.6%* 1.1 %* 4.b9� * 5.65% 1 1 * % Change in Assessed Value from prior year 8 DESCHUTES COUNTY, OREGON Demographics & Staffing Ratio Population for Deschutes County has 200 (in thousands) increased by 20% over the 10 year period. This translates into an average annual growth rate of 2.07%. 150 Assuming this growth rate continues, Deschutes County's population should eclipse the 200,000 mark within 3 years. 100 Source: Portland State University 2010 2013 2016 201 Median Age for Deschutes County has been stable at around 40 years old over the 42 0 0 last 10 years. The median age for the United 0 0 0 States over that same period hovered around 0 0 0 38 years old. 40 At the end of Fiscal Year 2019, 50% of County residents were older than 41.50 years and 50% were younger. 38 Source: Portland State University 2010 2013 2016 2019 Unemployment Rate for Deschutes % County has been at or below 5.0% for the last 4 years, with Fiscal Year 2019 ending at 4.5%. Deschutes County started the 10 year period 100/0 shown with an unemployment rate of 14.8%. Source: Oregon Employment Department D% 2010 2013 2016 2019 Population per FTE (or#residents per 00 (# residents per County employee) County employee) for Deschutes County has remained stable over the last 10 years. At the end of Fiscal Year 2019, there were,�80 0 0 183 residents per County employee. This data point provides insight into the 1 size of government versus the population 60 governed. 2010 2013 2016 2013 Source: Deschutes County 9 DESCHUTES COUNTY, OREGON Additional Information Disclosures: • Intended audience: Residents seeking high-level financial information concerning the County. • Measurement focus: The financial data presented in the Popular Annual Financial Report (PAFR) uses the same measurement focus and basis of accounting as the County's Comprehensive Annual Financial Report (CAFR). • Financial information: Financial information from the Comprehensive Annual Financial Report (CAFR) government -wide financials have been reproduced (full -accrual). Fund -level information has not been provided, but is available in the CAFR. All financial entities (including component units), as presented in the CAFR, have been consolidated in the PAFR. • Departures from accounting terminology: In preparing the PAFR, minor departures were made from standard generally accepted accounting principal (GAAP) prescribed terminology. Such departures were made in an attempt to avoid confusion concerning the materials presented. Highlighted departures from GAAP are: • "Assets" as used in this report, at times, include both Assets and Deferred Outflows. • "Liabilities" as used in this report, at times, include both Liabilities and Deferred Inflows. • "Net Position—Other Assets" includes both Restricted & Unrestricted Net Position. • "Net Position -Capital Assets" is Net Investment in Capital Assets. • Volatility due to changes in accounting measurement: Over the course of the 10 years presented, the Government Accounting Standards Board (GASB) has made modification to how certain items are presented (e.g. pensions and other post -employment benefits). Such changes in recognition practices introduced volatility to the 10 year trend information, as presented. Contact Information: Deschutes County Finance Department 1300 NW Wall Street, Suite 203 Bend, Oregon 97703 finance@deschutes.org Special thanks to Finance Department staff and their commitment to the underlying debits/credits. 10 DESCHUTES COUNTY, OREGON 'VES C-0 A FINANCE