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Home My WebLink AboutDeschutes County Popular Annual Financial Report FY2023Popular Annual Financial Report For the Fiscal Year Ended June 30, 2023 DESCHUTES COUNTY, OREGON Introduction Residents of Deschutes County, The purpose of the Deschutes County Popular Annual Financial Report (PAFR) is to provide residents with a relatively quick read of the highlights from the County’s Annual Comprehensive Financial Report (ACFR) for the ﬁscal year ended June 30, 2023, and to provide insight into long-term trends of the County’s largest ﬁnancial indicators. The ACFR is a detailed and complete ﬁnancial presentation prepared in conformance with the United States Generally Accepted Accounting Principles (GAAP) and is available in its entirety online at www.deschutes.org/ﬁnance. The ACFR was audited by Moss Adams LLP, an independent auditing ﬁrm, and received a clean opinion. Respectfully Submitted, Robert Tintle, MPA Jana Cain, CPA Chief Financial Officer Controller Table of Contents Page Introduction …….…………………………………………………………………………………. 1 Net Position…………………...…………………………………………………………………… 2 Assets and Liabilities………..……………………………………………………………………. 3 Revenues and Expenses………………………..…………………………………………….. 4 Revenues and Expenses—10 Year History………………………….……………….. 5 Debt……………………………………………………..…………………………….……………….. 6 Where Do Your Taxes Go?........................……………………………………………... 7 Property Taxes…………………………………………………………………………….……... 8 Demographics and Staffing Ratio…………………………………………………..…….. 9 Additional Information…………………………………………………………………..….... 10 Fiscal Year 2022 PAFR Award…………………………………..……………………..….... 11 -1- DESCHUTES COUNTY, OREGON Net Position Deschutes County’s net position as of June 30, 2023 was approximately $250 million. Net Position is broken into two types: Capital Assets and Other Assets. Net position—Capital assets represents the current value of County infrastructure, offset for amounts owed. Infrastructure includes the County’s investment in: Roads Vehicles and equipment Buildings for providing services The net position of capital assets could be viewed in a similar manner as home-equity (i.e. in 2023, capital assets are worth $186 million more than what is owed). Net position—Other assets represents the current value of all other assets, offset for amounts owed. Cash reserves Inventory Loans and other receivables (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 $64 million more than what is owed). The graphics below show the last 10 years of net position as well as the net position per capita: Net Position (in millions) Net Position Per Capita Net Position (in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net position - Capital assets 118$ 123$ 135$ 144$ 151$ 151$ 160$ 164$ 171$ 186$ Net position - Other assets 48 68 48 32 36 57 60 61 70 64 Total Net Position 166$ 191$ 183$ 176$ 187$ 208$ 220$ 225$ 241$ 250$ -2- DESCHUTES COUNTY, OREGON Assets Liabilities Total assets held by Deschutes County as of June 30, 2023 was $587 million, an increase of 6% from the prior year. During ﬁscal year 2023, the County invested signiﬁcantly in capital assets which support long-term service delivery. Capital assets increased by $39.3 million primarily due to major transportation projects and Solid Waste improvements, including the Negus Transfer Station in Redmond. “Other” assets are made up of receivables and inventory. 44% 43% 13% 44% 22% 15% 12% Total liabilities incurred by Deschutes County as of June 30, 2023 was $336 million, a 7% increase. In August of 2022, the County received $21.4 million from issuing new debt for improvements to the Negus Transfer Station. This debt has a true interest cost of 3.3% and is scheduled for repayment over a 20-year period. Future pension and other post-employment beneﬁts (OPEB) payments continue to be the largest County liabilities. 48% 37% 46% 24% 14% 12% 4% Assets by Percent Liabilities by Percent 44% 41% 15% 44% 21% 18% 13% 4% Assets (in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cash and Investments 125$ 127$ 141$ 148$ 164$ 191$ 197$ 245$ 268$ 256$ Capital Assets 184 184 190 193 194 193 199 199 203 243 Other (15) 34 24 63 49 55 73 80 82 88 Total Assets 294$ 345$ 355$ 404$ 407$ 439$ 469$ 524$ 553$ 587$ Liabilities (in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Pension -$ -$ 46$ 96$ 87$ 102$ 121$ 143$ 142$ 147$ Debt 79 72 66 59 55 52 47 42 38 51 OPEB 17 46 20 33 34 35 35 36 44 44 Payables and Other Claims 22 26 29 29 35 34 35 67 77 80 Knott Closure 10 10 11 11 9 8 11 10 12 14 Total Liabilities 128$ 154$ 172$ 228$ 220$ 231$ 249$ 298$ 313$ 336$ -3- DESCHUTES COUNTY, OREGON Revenues Deschutes County revenues for Fiscal Year 2023, were $282 million, an increase of 14.1% over the prior year. Taxes include both property tax revenue and room-tax revenue. Total tax revenue for the year was $104 million, a 5.1% increase over the prior year. This was driven by a 5.6% increase in assessed property value and an addition of 1,169 new property tax accounts. Charges for Services include payments made by residents for a speciﬁc service provided to the resident. Total charges for services for the year was $74 million, a 3.8% increase over the prior year. Grants and Contributions include payments made for services by the Federal, State, and other local governments. Grants and contributions totaled $99 million, an 18.7% increase from the prior year. The increase was primarily driven by Health and Welfare programs as well as American Rescue Plan Act (ARPA) funding. Expenses Deschutes County expenses for Fiscal Year 2023, were $272 million (a 17.4% increase from the prior year). Public Safety and General Government expenses increased by 23.6% and 37.8%, respectively, due primarily to rising personnel and technology costs. Health & Welfare expenses increased by 19.4%. However, revenues for this service area increased by 41.4% as a result of expanded services to County residents. County Roads costs decreased due to a large portion of ﬁscal year 2023 funds spent on capital projects. These multi-year projects are not reported as expenses, but rather as capital assets on the Statement of Net Position. Solid Waste expenses increased primarily due to the costs incurred to identify a new landﬁll site as the Knott Landﬁll is projected to reach capacity in 2029. Fair & Expo expenses increased 30.7% due to multiple new and expanded event offerings in ﬁscal year 2023. New events included the High Desert Stampede, Fairwell Festival, and Cascade Equinox Festival. $272 Million Expense $282 Million Revenue Roundabout at Hamehook and Deschutes Market -4- DESCHUTES COUNTY, OREGON Revenues — 10 Year History Expenses — 10 Year History Expenses (in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Public safety 73$ 46$ 75$ 69$ 64$ 70$ 70$ 86$ 87$ 107$ Health and welfare 44 32 44 45 50 45 46 63 56 66 General government 33 26 36 32 37 32 50 50 48 67 County roads 19 17 18 19 18 18 18 25 22 10 Solid Waste, Fair & Expo, RV Park 13 12 14 16 15 15 18 13 18 20 Interest and fiscal charges 3 2 2 2 2 2 2 1 1 1 Total Expenses 185$ 135$ 189$ 183$ 186$ 182$ 204$ 238$ 232$ 272$ Revenues (in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Taxes 69$ 66$ 72$ 75$ 77$ 82$ 87$ 94$ 99$ 104$ Charges for services 49 51 57 57 59 61 63 71 72 74 Grants and contributions 41 41 50 42 55 54 60 78 83 99 Other*1 2 2 2 6 6 5 1 (7) 5 Total Revenues 160$ 160$ 181$ 176$ 197$ 203$ 215$ 244$ 247$ 282$ * FY22 other revenues decreased due to unrealized investment losses. -5- DESCHUTES COUNTY, OREGON Debt $ 485 PER CAPITA $265 PER CAPITA $0 $200 $400 $600 $0 $40 $80 $120 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 DEBT PER CAPITAOUTSTANDING DEBT (IN MILLIONS)The County’s creditworthiness was evaluated in November 2023 and maintained its rating of Aa1 as measured by Moody’s Investors Service. Moody’s rating of Aa1 represents that Deschutes County is a “High Quality” investment to municipal bond investors. In their ratings rationale, Moody’s noted improving resident income levels as well as the County’s solid ﬁnancial proﬁle with healthy and stable reserves and liquidity. 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. During ﬁscal year 2023, Deschutes County borrowed $21.4 million to ﬁnance improvements to the Negus Transfer Station. This increased the debt to $54.9 million ($265 per County resident). In November of 2023 (after 2023 ﬁscal year-end), the County borrowed an additional $26.6 million; $20.6 million for the expansion of the Deschutes County Courthouse, and $6.0 million to reﬁnance prior debt at favorable repayment terms. On June 30, 2023, Deschutes County owed: 10 Year History of Debt Knott Landﬁll Bonded Premium Debt (in millions)Debt (Discount) Total General Government 21.3$ 0.7$ 22.0$ Pension 5.8 - 5.8 Solid Waste 23.2 3.0 26.2 Fair & Expo and RV Park 0.9 - 0.9 Total debt 51.2$ 3.7$ 54.9$ -6- DESCHUTES COUNTY, OREGON Where do your taxes go? Although Deschutes County is the tax collector for all taxing districts within the county, overall only 18 cents of each dollar paid in taxes is retained by the County. The remaining 82 cents is passed through to other government agencies to provide for schools, police and ﬁre departments, parks, libraries, and more. NOTE: Tax allocations based on the City of Bend Taxing District (Tax Code 1001). All other city/rural allocations are similar. 46¢ 22¢ 18¢ 9¢ 5¢ Deschutes County uses its taxes to fund Public Safety, Health & Welfare, and General Government. Public Safety includes the Sheriff’s Office, Deschutes 9-1-1, Community Justice, District Attorney’s Office (including Victims’ Assistance), and Justice Court. 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 including elections, and Community Justice. 9¢ 1¢ 5¢ 1¢ 2¢ Public Safety 12¢ -7- DESCHUTES COUNTY, OREGON Property Taxes 10 Year History of the Tax Rates* In Oregon, property taxes are billed based on the assessed value of a property multiplied by the approved (levied) tax rate. Deschutes County is funded, in part, by ﬁve separate tax levies. 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 tax rates levied and the assessed value for the past 10 years are shown below. Assessed Value x Tax Rate = Tax Bill *Rate per $1,000 of assessed value (excludes expired local option levies) 10 Year History of Assessed Value *% Change in Assessed Value from prior year -8- DESCHUTES COUNTY, OREGON Demographics and Staffing Ratio Population for Deschutes County has increased by 28% over the 10 year period. This translates into an average annual growth rate of 2.8%. The average annual growth rate for the State or Oregon overall was 0.8% during the same period. Deschutes County’s population increased by 2.1% in 2023 to 207,561. Source: Portland State University Median Age for Deschutes County has increased by 2.65 years since 2014. The median age for the United States over that same period hovered around 38 years old. At the end of Fiscal Year 2023, 50% of County residents were older than 43.28 years and 50% were younger. Source: Portland State University Unemployment Rate for Deschutes County for Fiscal Year 2023 ended at 4.4%. Deschutes County started the 10 year period shown with an unemployment rate of 7.7%. Source: Oregon Employment Department Population Per Full-Time Employee for Deschutes County has remained stable over the last 10 years. At the end of Fiscal Year 2023, there were 187 residents per County employee. This data point provides insight into the size of government versus the population governed. Source: Deschutes County Population Median Age (in years) Number of Residents per County Employee Unemployment Rate -9- DESCHUTES COUNTY, OREGON 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 Annual Comprehensive Financial Report (ACFR). Financial information: Financial information from the ACFR ‘s government-wide ﬁnancials have been reproduced (full-accrual). Fund-level information has not been provided, but is available in the ACFR. All ﬁnancial entities (including component units), as presented in the ACFR, 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 200 Bend, Oregon 97703 ﬁnance@deschutes.org Special thanks to Finance Department staff and their commitment to the underlying debits/credits. Additional Information -10- Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to Deschutes County Oregon For its Annual Financial Report For the Fiscal Year Ended June 30, 2022 Executive Director/CEO Fiscal Year 2022 PAFR Award DESCHUTES COUNTY, OREGON-11- -12-