douglas county oregon cafr 2014douglas county, oregon comprehensive annual financial report for the...

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DOUGLAS COUNTY, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the Year Ending June 30, 2014

Prepared by: Office of Management and Finance

DOUGLAS COUNTY, OREGON Comprehensive Annual Financial Report

TABLE OF CONTENTS

Page(s)

INTRODUCTORY SECTION

Letter of Transmittal i - iv GFOA Certificate of Achievement v Organization Chart viListing of Principal Officials vii

FINANCIAL SECTION

Independent Auditor’s Report 1-3 Management’s Discussion and Analysis (MD&A) 4-10

Basic Financial Statements

Government-wide Financial Statements Statement of Net Position 11 Statement of Activities 12

Fund Financial Statements Governmental Funds:

Balance Sheet 13 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 14 Statement of Revenues, Expenditures, and Changes in Fund Balances 15 Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Funds to the Statement of Activities 16

Proprietary Funds: Statement of Net Position 17 Statement of Revenues, Expenses, and Changes in Fund Net Position 18 Statement of Cash Flows 19

Fiduciary Fund: Statement of Fiduciary Net Position 20

Notes to Basic Financial Statements 21-46


TABLE OF CONTENTS, continued

Page(s)Required Supplementary Information

Schedule of Funding Progress – Oregon Public Employees Retirement System (OPERS) and Postemployment Healthcare Benefits 47 Major Governmental Funds:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual

General Fund 48 Public Works Fund 49 Public Safety Fund 50 Health and Social Services Fund 51 Title III Fund 52

Notes to Budget and Actual Schedules 53

Other Supplementary Information

Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds:

Combining Balance Sheet 54 Combining Statement of Revenues, Expenditures and Changes

in Fund Balances 55 Schedules of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual County Forest Management Fund 56 County Fair Board Fund 57 Salmon Habitat Improvement Fund 58 County Schools Fund 59 Water Development Fund 60 Drug Abuse Prevention Fund 61 Industrial Development Fund 62 4 H Extension Service District 63 Capital Projects Fund 64 Dog Control Fund 65 Law Library Fund 66

Enterprise Funds:Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual Salmon Harbor Fund 67



Page(s)Internal Service Funds:

Combining Statement of Net Position 68 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 69 Combining Statement of Cash Flows 70

Schedules of Revenue, Expenditures and Changes in Fund Balance – Budget and Actual

Employee Benefit Trust Fund 71 Fleet Management Fund 72

Agency Fund: Statement of Changes in Assets and Liabilities 73

Capital Assets Used in the Operation of Governmental Funds Schedule by Source 74Schedule by Function and Activity 75 Schedule of Changes by Function and Activity 76

Other Financial Schedules Schedule of Cash Receipts and Turnovers – Elected Officials 77 Schedule of Property Tax Transactions and Outstanding Balances 78 Schedule of Property Taxes Receivable by Levy Year by Fund 79 Schedule of Property Tax Collections by Levy Year by Fund 80

STATISTICAL SECTION (Unaudited)

Financial Trends Net Position by Component – Last Ten Fiscal Years 81 Changes in Net Position – Last Ten Fiscal Years 82-83 Fund Balances of Governmental Funds – Last Ten Fiscal Years 84 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 85

Revenue Capacity Assessed Value and Estimate Actual Value of Taxable Property – Last Ten Fiscal Years 86 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years 87 Principal Property Taxpayers – Current Year and Nine Years Ago 88 Property Tax Levies and Collections – Last Ten Fiscal Years 89

Debt Capacity Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 90 Direct and Overlapping Governmental Activities Debt – June 30, 2014 91 Legal Debt Margin Information – Last Ten Fiscal Years 92



Page(s)Demographic and Economic Information Demographic and Economic Statistics – Last Ten Fiscal Years 93 Principal Employers – Current Year and Nine Years Ago 94

Operating Information Full-time Equivalent County Government Employees by Function/Program – Last Ten Fiscal Years 95 Operating Indicators by Function/Program – Last Ten Fiscal Years 96 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 97

INDEPENDENT AUDITOR’S REPORT ON THE INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Report of Independent Auditors 98-99

INDEPENDENT AUDITOR’S COMMENTS (Disclosures and Comments Required by State Regulations)

Report of Independent Auditors 100-101

INTRODUCTORY SECTION

OFFICE OF MANAGEMENT AND FINANCECounty Courthouse · 1036 SE Douglas, Room 301 · Roseburg, Oregon 97470

Sandra K. Correll, Chief Financial Officer

December 19, 2014

To the Board of County Commissioners and the Citizens of Douglas County:

Oregon law requires local governments to publish a complete set of financial statements presented in conformity with U.S. generally accepted accounting principles and audited in accordance with generally accepted auditing standards by a firm of certified public accountants licensed to perform audits of a municipal corporation. We are pleased to submit this Comprehensive Annual Financial Report (CAFR) of Douglas County, Oregon for the fiscal year ended June 30, 2014 in accordance with this requirement.

This report consists of management’s representations concerning the finances of Douglas County, Oregon. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the county has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the presentation of the County’s financial statements in conformity with generally accepted accounting principles. Because the cost of internal controls should not outweigh their benefits, the County’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute 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.

Douglas County’s financial statements have been audited by Kenneth Kuhns & Co., Certified Public Accountants. The goal of the independent audit was to providereasonable assurance that the financial statements of the County for the fiscal year ended June 30, 2014, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements; assessing the accounting principles used and significantestimates made by management; and evaluating the overall financial statement presentation. Kenneth Kuhns & Co. has concluded, based upon the audit, that there was a reasonable basis for rendering an un ified opinion that Douglas County’s financial statements are fairly presented in conformity with generally accepted accounting principles. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the County’s financial statements was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent

ACCOUNTS PAYABLE PAYROLL PURCHASING (541) 440-6164 (541) 440-4250 (541) 440-4247

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auditor to report not only on the fair presentation of the financial statements, but also on the County’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the County’s separately issued Single Audit Report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements MD&A compliments this letter of transmittal and should be read in conjunction with it.

Profile of the Government

The County was incorporated January 7, 1852. It extends from sea level at the Pacific Ocean to Mt. Thielsen (9,182 feet high) in the Cascade Range. The Umpqua River marks the dividing line between northern and southern Oregon, and its entire watershed lies within the County’s boundaries. Douglas County contains the largest stand of old growth timber in the world. It has a land area of 5,071 square miles. The County is empowered to levy a property tax on both real and personal property.

The County operates under a three member Board of Commissioners. The Board is responsible for passing ordinances and resolutions, adopting the budget, appointing committees, and overseeing the day-to-day operations of the government. Board members serve four-year terms with two members’ terms expiring simultaneously and the third member’s term being staggered.

The financial reporting entity, Douglas County, includes all funds of Douglas County, as well as two component units. Component units are legally separate entities for which Douglas County is financially accountable. The County provides a full range of services, including sheriff’s patrol and correction services; prosecution of criminals; justice courts; juvenile services; emergency management; construction and maintenance of roads, highways, bridges and other infrastructure; property assessment; tax collection; public health and mental health services; land use planning; election services; records maintenance; solid waste disposal; park maintenance; and a public library.

The annual budget serves as the foundation for the County’s financial planning and control. The County adheres to Oregon Local Budget Law in the preparation, adoption and execution of the budget. The Board of Commissioners appoints a County Budget Officer to oversee the annual budget process. Requests submitted by County departments to the Budget Officer are used as the starting point for developing a proposed budget. The Budget Officer then presents the proposed budget to the County’s Budget Committee for review and approval sometime in May. After approval by the Budget Committee, the Board of Commissioners is required to hold a public hearing on the approved budget and adopt a final budget by no later than June 30, the close of the preceding fiscal year. The County Board of Commissioners adopts the budget by department for those funds having more than one department and by major expenditure classification for those funds with only one department. The expenditure appropriations lapse at the end of the fiscal year. Additional resources and corresponding appropriations may be added to the budget during the fiscal year through a supplemental budget process. Original and supplemental budgets may be modified during the fiscal year by the use of appropriation transfers between categories. The Board of Commissioners must approve any supplemental budget and any appropriation

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transfer in a public meeting. Budget to actual comparisons are provided in this report for each individual fund for which an appropriated annual budget has been adopted.

Local economy

For years, Douglas County’s economic base relied heavily on the lumber and wood products industry. This is not surprising when you consider that slightly over half of the County’s land is owned by the federal government and is managed by the Bureau of Land Management and the Federal Forest Service.

With the decline of the wood products industry, Douglas County continues its efforts to attract new industry to establish more diversity in the local economy. County population has grown about 6% since 2004. For the most part, the growth has been from the migration of retirement age people from other areas of the country. Douglas County’s unemployment rate for June 2014 was 9.7%. This is substantially higher than both the state rate of 6.8% and the national rate of 6.1%.

Financial Outlook

Because of a slow local economy and the continued uncertainty of federal funding, Douglas County continues to focus on the maintenance of services. In 1992, environmental concerns brought timber sales to a near standstill. In 1993, temporary federal legislation was enacted to compensate counties and schools affected by decreased timber harvesting as a direct result of federal protection of the spotted owl. In 2000, Congress enacted the “Secure Rural Schools and Community Self-determination Act” that replaced lost revenues to all communities affected by declining timber revenues. A modified version of this legislation was passed in 2008. This legislation provided funding but at a progressively reduced level each year. Over the last few years, legislation to reauthorize these payments to timber dependent communities has been one year at a time with each year reflecting a reduction in funding from the previous year. In October, 2013 a one-year reauthorization was passed, with an estimated 5% reduction from the previous year, providing funding assistance for fiscal 2014.

Long-term financial planning

Federal funding through the Secure Rural Schools and Community Self-determination Act has accounted for a significant portion of the County’s operating revenues for the last few years. The expiration of these payments along with the substantially reduced timber harvesting creates a major challenge for the County. The Board of Commissioners continues to work with elected officials to find solutions. During previous years, in anticipation of the potential loss of revenues, the Board worked to build fund balances in the General Fund and the Public Works Fund. In order to maintain levels of service during the current year, the County was required to use a portion of these fund balances. The Board continues to work with County departments and citizens to develop options regarding revenue replacement and/or reductions in services in future years.

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 the

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County for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2013. This was the 26th consecutive year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of this report would not have been possible without the services of the employees in the Finance Department. We extend our sincere appreciation to all in the department who assisted and contributed to the preparation of this report. Acknowledgment should also be given to the Board of Commissioners for their support in planning and conducting the financial operations of the County.

Respectfully Submitted,

Jessica Pence Deputy Finance Officer

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Tax JusticesAssessment County District of Sheriff Surveyor Treasurer

and Clerk Attorney PeaceCollection

Fair County Human Information Health PublicBoard Counsel Land Resources Technology and Works Planning

Social Services

Parks CommissionMuseum Building Financial and Library on Children

Services Facilities and Families

Fleet SalmonJuvenile Management Communications Harbor

DOUGLAS COUNTY, OREGONORGANIZATION CHART

CITIZENS OF DOUGLAS COUNTY

BOARD OF COMMISSIONERS

vi

vii

DOUGLAS COUNTY, OREGON LISTING OF PRINCIPAL OFFICIALS

as of June 30, 2014 ________

BOARD OF COUNTY COMMISSIONERS COUNTY COURTHOUSE Roseburg, Oregon 97470

________

Telephone: (541) 440-4201

Name Term Expiration Date

Joe Laurance, Chair December 31, 2014

Susan Morgan December 31, 2016

Doug Robertson December 31, 2016

FINANCIAL SECTION

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Douglas County, Oregon

Management’s Discussion and Analysis The following discussion and analysis is intended to serve as an overview of the County’s financial activities for the fiscal year ended June 30, 2014. We encourage readers to consider the information presented here in conjunction with the letter of transmittal, which begins on page i, and the financial statements, which begin on page 11.

Financial Highlights

Douglas County’s assets exceeded its liabilities at the end of the current fiscal year, by $325,476,351 (total net position). Of this amount, $69,730,229 (unrestricted net position) may be used to meet the County’s ongoing obligations to citizens and creditors.

The County’s overall financial position decreased by $6,017,866. This decrease is attributable to a reduction in federal funding and depreciation expense on capital assets.

At the end of the current fiscal year, the unassigned fund balance for the General Fund is $43,099,420 or 165% of total General Fund expenditures and transfers to other funds.

Overview of the Financial Statements

This discussion is intended to serve as an introduction to Douglas County’s basic financial statements. The County’s basic financial statements are comprised of three components:

Government-wide financial statements Fund financial statements Notes to the financial statements

The 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 the County’s finances, in a manner similar to private-sector business reporting.

The Statement of Net Position presents information on all of the County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or declining.

The Statement of Activities presents information showing how the County’s net position changed during the most recent fiscal year. Changes in net position are reported when the underlying events giving rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items, for example, uncollected property taxes and earned but unused vacation leave, which will result in cash flows in future fiscal periods.

Both government-wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental 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 the County include general government, public safety, highways and streets, sanitation, health and welfare, culture and recreation, conservation and education. The Salmon Harbor facility operation is a business-type activity of the County.

The government-wide financial statements include not only the County itself (known as the primary government), but also a legally separate Hospital Facility Authority for which the County is financially accountable. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. The 4-H Extension District, although also legally separate, functions for all practical purposes as a department of the County, and therefore has been

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included as an integral part of the primary government. The government-wide financial statements can be found beginning on page 11 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. Douglas County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported 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 outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. The County implemented GASB Statement No. 65, Items Previously Reported as Assets and Liabilities in the prior fiscal year. Under GASB Statement No. 65, unearned revenue is reported as a liability and unavailable revenue is reported as a deferred inflow of resources on the governmental balance sheet. Deferred inflow of resources represents the acquisition of net position that applies to a future period so they do not qualify for recognition as revenue in a governmental fund because they are not yet considered to be available.

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 the governmental funds with similar information presented for governmental activities in the government-wide financial statements. A reconciliation of the governmental funds balance sheet to the government-wide statement of net position and a reconciliation of the governmental funds statement of revenues, expenditures and changes in fund balance to the government-wide statement of activities have been included in this report.

The County maintains various individual governmental funds for GAAP (generally accepted accounting principles) basis presentation. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Public Works Fund, Public Safety Fund, Health and Social Services Fund, and Title III Fund all of which are considered to be major governmental funds. Data from the remaining governmental funds (non-major governmental funds) are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The County adopts an annual appropriated budget for all funds. A budgetary comparison schedule has been provided for each fund to demonstrate compliance with this budget. The basic governmental fund financial statements and respective reconciliations can be found beginning on page 13 of this report.

Proprietary funds. The County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses an enterprise fund to account for the operation of the Salmon Harbor facility. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County’s various functions. The County uses internal service funds to account for its risk management activities and fleet operations. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary fund financial statements provide the same type of information as the government-wide financial statements, but in greater detail. The enterprise fund financial statements provide information on the operation of the Salmon Harbor facility. The Salmon Harbor Fund is considered to be a major fund. The internal service funds are also combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the proprietary and internal service funds is provided in the form of combining statements and fund schedules elsewhere in this report. The basic proprietary fund financial statements can be found beginning on page 17 of this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support County programs. The accounting used for

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fiduciary funds is similar to that used for proprietary funds. The County maintains one fiduciary fund. The Agency fund reports resources held by the County in a custodial capacity for individuals, private organizations and other governments. The basic fiduciary fund financial statement can be found on page 20 of this report.

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 beginning on page 21 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County’s progress in funding its obligation to provide pension benefits to its employees; postemployment healthcare benefits to retirees; and budgetary comparative schedules for the County’s major funds. Required supplementary information can be found beginning on page 47 of this report.

Combining and individual fund statements and schedules for nonmajor funds can be found immediately following the required supplementary information.

Government-wide Financial Analysis

Net position, over time, may serve as a useful indicator of a government’s financial position. Douglas County’s assets, including capital assets net of depreciation, exceeded its liabilities by $325,476,351 at the end of the current fiscal year.

The largest portion of the County’s net position (53%) reflects its investment in capital assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Approximately 25% of the County’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance (22%) of unrestricted net position may be used to meet the government’s ongoing obligations to citizens and creditors.

Net position decreased $6,017,866 during fiscal year 2014. The decrease is due primarily to a reduction in federal funding and depreciation expense on capital assets.

Douglas County’s Net Position

6/30/2014 6/30/2013 6/30/2014 6/30/2013 6/30/2014 6/30/2013

Current and other assets $188,640,457 $195,995,250 ($1,552,731) ($1,763,819) $187,087,726 $194,231,431

Capital assets 168,812,389 163,802,395 4,861,316 5,096,974 173,673,705 168,899,369

Total assets 357,452,846 359,797,645 3,308,585 3,333,155 360,761,431 363,130,800

Noncurrent liabilities 20,312,263 19,622,703 20,312,263 19,622,703

Other liabilities 14,932,080 11,976,178 40,737 37,702 14,972,817 12,013,880

Total liabilities 35,244,343 31,598,881 40,737 37,702 35,285,080 31,636,583

Net position:

Net investment

in capital assets 168,812,389 163,802,395 4,861,316 5,096,974 173,673,705 168,899,369

Restricted 82,072,417 86,082,254 82,072,417 86,082,254

Unrestricted 71,323,697 78,314,115 (1,593,468) (1,801,521) 69,730,229 76,512,594

Total net position $322,208,503 $328,198,764 $3,267,848 $3,295,453 $325,476,351 $331,494,217

Governmental Activities Business-Type Activities Total

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Douglas County’s Changes in Net Position

6/30/2014 6/30/2013 6/30/2014 6/30/2013 6/30/2014 6/30/2013Revenues: Program revenues: Charges, fees and fines $14,236,585 $15,158,482 $1,692,257 $1,690,824 $15,928,842 $16,849,306 Operating grants and contributions 39,380,073 39,561,989 198,171 196,007 39,578,244 39,757,996 Capital grants and contributions 14,160,628 1,635,631 14,160,628 1,635,631 General revenues: Property taxes 9,369,387 9,213,515 9,369,387 9,213,515 Grants and contributions not restricted to specific programs 10,763,122 10,324,564 10,763,122 10,324,564 Unrestricted investment earnings 1,642,140 1,179,288 4,710 5,240 1,646,850 1,184,528 Total revenues 89,551,935 77,073,469 1,895,138 1,892,071 91,447,073 78,965,540

Expenses: General government 18,942,528 18,969,491 18,942,528 18,969,491 Public safety 24,881,447 24,217,493 24,881,447 24,217,493 Highways and streets 19,850,948 20,327,818 19,850,948 20,327,818 Sanitation 3,322,074 1,775,575 3,322,074 1,775,575 Health and welfare 18,944,045 17,115,708 18,944,045 17,115,708 Culture and recreation 6,165,594 6,002,343 6,165,594 6,002,343 Conservation 1,266,786 1,224,078 1,266,786 1,224,078 Education 2,114,652 2,157,960 2,114,652 2,157,960 Interest on long-term debt 54,122 55,134 54,122 55,134 Recreational facility 1,922,743 2,140,643 1,922,743 2,140,643 Total expenses 95,542,196 91,845,600 1,922,743 2,140,643 97,464,939 93,986,243Increase (decrease) in net position before gain on sale of assets (5,990,261) (14,772,131) (27,605) (248,572) (6,017,866) (15,020,703)Gain on sale of assets 1,032,012 1,032,012Increase (decrease) in net position (5,990,261) (13,740,119) (27,605) (248,572) (6,017,866) (13,988,691)Net position - July 1 328,198,764 341,938,883 3,295,453 3,544,025 331,494,217 345,482,908Net position - June 30 $322,208,503 $328,198,764 $3,267,848 $3,295,453 $325,476,351 $331,494,217

Activities Activities TotalGovernmental Business-Type

Governmental activities. Governmental activities decreased net position by $5,990,261. The primary contributing factor to this decrease was a reduction in federal funding and depreciation expense on capital assets.

Business-type activities. Business-type activities decreased net position by $27,605. The decrease was primarily the result of a decline of service revenues due to the slow economy.

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Financial Analysis of County Funds

The County uses fund accounting to ensure compliance with finance-related legal requirements.

Governmental funds. The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

At June 30, 2014, the County’s governmental funds reported combined ending fund balances of $162,507,948, a decrease of 6% from the prior year. Of this ending balance, 51% is restricted for specific uses, 22% is committed or assigned to specific purposes, and 1% is nonspendable because it is in the form of inventories and deposits. The remaining 26% is unassigned.

The General Fund is the chief operating fund of the County. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $43,099,420, while the total fund balance was $61,677,933. The current unassigned fund balance represents 165% of the total general fund expenditures and transfers to other funds.

Forty seven percent of the General Fund revenues in fiscal 2014 came from the federal “Secure Rural Schools and Community Self-Determination Act” first passed by Congress in October, 2000. In 2008, legislation was passed reauthorizing the Act but with each year’s funding being less than the funding in the previous year. This Act replaced the timber revenues from logging on federal timber lands the County relied on as a primary source of General Fund support for many years. Environmental issues continue to keep timber harvesting very low and a return to support from timber revenues under current restrictions would not be adequate to maintain current service levels to County citizens. The Douglas County Board of County Commissioners continues to work with other elected officials to find funding solutions for Douglas County.

The Public Works Fund received approximately 40% of its revenue from the “Secure Rural Schools and Community Self Determination Act” in fiscal 2014. The fund balance decreased by $1,510,249 in fiscal year 2014. Public Works revenues are restricted to use for construction, maintenance and operations on County roads. The fund balance is being used to maintain a level of service where costs of the services exceed the current revenues.

The Public Safety fund balance increased $717,639 from $1,185,587 in fiscal year 2013 to $1,903,226 in fiscal year 2014. The increase is primarily due to an increase in intergovernmental funding for jail services.

The Health and Social Services fund balance decreased $2,347,675 in fiscal 2014 due predominately to costs associated with returning mental health and developmental disability services to the state.

The Title III fund balance decreased $840,794 in 2014 due to an increase in the unearned portion of the funds received under the federal “Secure Rural Schools and Community Self-Determination Act”.

Proprietary funds. The County’s proprietary funds provide the same type of information found in the government-wide financial statements, for its enterprise fund (Salmon Harbor). Salmon Harbor facility includes an R.V. resort, dry camping, fueling stations, docks for fishing and boat moorage.

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General Fund Budgetary Highlights

Actual intergovernmental revenues in the General Fund were higher than budgeted due to a one year reauthorization of the Secure Rural Schools and Community Self-Determination Act. Since the Act had expired and reauthorization not anticipated at the time the budget was adopted, the County estimated it would receive timber harvest revenues of approximately $2.5 million. Subsequently, the Act was reauthorized for one more year and the County received $9.5 million under the Act.

Several departments in the General Fund show actual expenditures under budget variances larger than anticipated because of management’s choices not to fill positions when they became vacant. County departments have been asked by the Board of Commissioners to find ways to work more efficiently with less and prepare for continued reductions in departmental budgets due to the loss of federal funding. The variance between budget and actual in the nondepartmental appropriation is the result of a pass-thru grant not being received.

Capital Asset and Debt Administration

Capital assets. The County’s investment in capital assets for its governmental and business-type activities as of June 30, 2014 was $173,673,705 (net of accumulated depreciation). This investment in capital assets includes land and right of way, buildings and systems, improvements, machinery and equipment, roads and bridges, park and recreational facilities. The County’s net increase in capital assets was $4,774,336.

Capital Assets at Year-End (net of depreciation)

Governmental Activities Business-Type Activities Totals

2014 2013 2014 2013 2014 2013

Land & right of way $11,894,136 $11,877,138 $921,221 $921,221 $12,815,357 $12,798,359

Buildings & improvements 24,829,658 24,170,285 3,873,151 4,101,040 28,702,809 28,271,325

Furniture & equipment 3,552,795 4,472,135 3,552,795 4,472,135

Vehicles & heavy equipment 6,150,557 6,264,214 66,944 74,713 6,217,501 6,338,927

Dams 19,002,356 19,378,640 19,002,356 19,378,640

Infrastructure 97,762,673 92,849,002 97,762,673 92,849,002

Construction in progress 5,620,214 4,790,981 5,620,214 4,790,981

Totals $168,812,389 $163,802,395 $4,861,316 $5,096,974 $173,673,705 $168,899,369

The following table reconciles the changes in capital assets:

Governmental Business-Type

Activities Activities Total

Beginning balance $470,499,926 $10,395,376 $480,895,302

Additions 17,726,918 24,000 $17,750,918

Reductions (2,283,207) ($2,283,207)

Accumulated depreciation (317,131,248) (5,558,060) ($322,689,308)

Ending balance $168,812,389 $4,861,316 $173,673,705

Additional information on the County’s capital assets can be found in note 3C beginning on page 34 ofthis report.

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Long-term Debt. The County assists smaller government agencies with their debt service payments for industrial development within the County. At June 30, 2014, the County had $1,154,093 in notes payable. This is $103,001 less than the $1,257,094 owing June 30 of the prior year.

Douglas County has no outstanding bonded debt. Additional information on the County’s long-term debt can be found in note 3F beginning on page 36 ofthis report.

Economic Factors and Next Year’s Budgets and Rates

For many years, the single most significant source of revenue to the County was from timber harvesting. In 1992, environmental issues brought timber sales to a near standstill. In 1995, temporary federal legislation to compensate counties and schools affected by the protection of the spotted owl was passed. In 2000, Congress enacted the “Secure Rural Schools and Community Self-Determination Act” which assisted all timber communities affected by declining harvests on federal lands. The Act was reauthorized at a progressively reduced funding level for another four years in October, 2008. Since that time, the reauthorization of these payments has been made one year at a time and always at a continuing reduced amount. In October, 2013, the Act was once again reauthorized for one year, with a 5% reduction in last year’s funding level.

The County’s unemployment rate for the month of June 2014 was 9.7%. While this compares unfavorably to the state average unemployment rate of 6.8% and the national average of 6.1%, the steady decline in annual unemployment rates from a high of 17.2% in 2009 to 9.7% in 2014, may be an indication the local economy is slowly improving.

During the last few years, the increasing pension cost of the Oregon Public Employees Retirement System (PERS) has had a significant impact on County personnel costs. PERS has again notified the County that rates beginning July 1, 2015 will increase 4.12% of payroll for Tier 1 and Tier 2 members and decrease between 1.33% and 2.71% of payroll for OPSRP members.

The County has a permanent tax rate of $1.11 per thousand of assessed valuation. This permanent tax rate was established with the passage of statewide constitutional property tax limitation measures during a time when the County was receiving sufficient timber harvest revenues to support many County services without property tax assistance. Also, as part of the statewide measures, the increase in assessed value was limited to 3% per year, or market value, whichever is lower. It would be very difficult, if not impossible, for the County to replace a significant portion of the loss of federal funding with property taxes. Currently, property taxes represent about 12% of overall County revenues and are committed, in whole, to support public safety services.

The change in population of the County the past year was negligible.

These are among the factors that were considered in preparing the County’s budget for fiscal year 2014-15.

Requests for Information

This financial report is designed to provide a general overview of Douglas County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to the Office of Management and Finance, 1036 SE Douglas Ave., Roseburg, Oregon 97470.

BASIC FINANCIAL STATEMENTS

Governmental Business-Type Component Activities Activities Total Unit

ASSETSCash and investments $176,370,856 $839,084 $177,209,940Receivables, net 7,515,155 55,075 7,570,230 $1,600,000Internal balances 136,065 (136,065)Inventories 2,088,904 46,275 2,135,179Deposits and prepaid items 167,948 4,429 172,377Interfund loan balances 2,361,529 (2,361,529)Capital assets (net of accumulated depreciation):

Land and right of way 11,894,136 921,221 12,815,357Buildings and improvements 24,829,658 3,873,151 28,702,809Furniture and equipment 3,552,795 3,552,795Vehicles and heavy equipment 6,150,557 66,944 6,217,501Dams 19,002,356 19,002,356Infrastructure 97,762,673 97,762,673Construction in progress 5,620,214 5,620,214

Total assets 357,452,846 3,308,585 360,761,431 1,600,000

LIABILITIESAccounts payable and other current liabilities 6,447,350 40,737 6,488,087Unearned revenues 7,161,933 7,161,933Noncurrent liabilities:

Due within one year 1,322,797 1,322,797 235,000Due in more than one year 20,312,263 20,312,263 1,365,000

Total liabilities 35,244,343 40,737 35,285,080 1,600,000

NET POSITIONNet Investment in capital assets 168,812,389 4,861,316 173,673,705Restricted for:

Highways and streets 73,039,071 73,039,071Health and social services 4,160,561 4,160,561Title II and III 2,999,194 2,999,1944-H Extension Service District 528,627 528,627Public Safety 563,710 563,710Library purposes 291,614 291,614Children and family programs 1,149 1,149District Attorney grant programs 108,784 108,784County Clerk recordings 84,173 84,173County juvenile purposes 164,898 164,898County park purposes 53,637 53,637County fair purposes 29,465 29,465Surveyor corner preservation 22,018 22,018County schools programs 25,516 25,516

Unrestricted (deficit) 71,323,697 (1,593,468) 69,730,229

Total net position $322,208,503 $3,267,848 $325,476,351 -$

Primary Government

DOUGLAS COUNTY, OREGONSTATEMENT OF NET POSITION

June 30, 2014______

The accompanying notes are an integral part of this statement.

11

Fees, Fines, Operating Capital Grants

and Charges Grants and and Governmental Business-type ComponentFunctions/Programs Expenses for Services Contributions Contributions Activities Activities Total Unit

Primary government: Governmental activities: General government $18,942,528 $5,204,139 $3,571,609 ($10,166,780) ($10,166,780) Public safety 24,881,447 3,820,764 4,798,453 (16,262,230) (16,262,230) Highways and streets 19,850,948 173,679 13,508,936 13,754,677$ 7,586,344 7,586,344 Sanitation 3,322,074 711,084 (2,610,990) (2,610,990) Health and welfare 18,944,045 977,373 14,788,087 (3,178,585) (3,178,585) Culture and recreation 6,165,594 2,745,191 505,221 405,951 (2,509,231) (2,509,231) Conservation 1,266,786 603,860 89,512 (573,414) (573,414) Education 2,114,652 495 2,118,255 4,098 4,098 Interest on long-term debt 54,122 (54,122) (54,122)

Total governmental activities 95,542,196 14,236,585 39,380,073 14,160,628 (27,764,910) - (27,764,910)

Business-type Activities: Boat marina/RV park 1,922,743 1,692,257 198,171 ($32,315) (32,315)

Total business-type activities 1,922,743 1,692,257 198,171 - - (32,315) (32,315)

Total primary government $97,464,939 $15,928,842 $39,578,244 $14,160,628 ($27,764,910) ($32,315) ($27,797,225)

Component unit: Hospital Facility Authority 125,125$ -$ -$ -$ (125,125)$

General revenues: Property taxes 9,369,387 9,369,387

10,763,122 10,763,122 Unrestricted investment earnings 1,642,140 4,710 1,646,850 125,125

Total general revenues 21,774,649 4,710 21,779,359 125,125

Change in net position (5,990,261) (27,605) (6,017,866) -

Net position - beginning 328,198,764 3,295,453 331,494,217 -

Net position - ending $322,208,503 $3,267,848 $325,476,351 -$

DOUGLAS COUNTY, OREGONSTATEMENT OF ACTIVITIES

For the Year Ended June 30, 2014______

Grants and contributions not restricted to specific purposes

Net (Expenses) Revenue and

Changes in Net Position

Program Revenues


12

Health andPublic Public Social Other Total

General Works Safety Services Title III Governmental GovernmentalFund Fund Fund Fund Fund Funds Funds

ASSETS

Cash and investments $62,018,976 $73,900,011 $1,688,397 $3,995,625 $9,485,642 $13,262,958 $164,351,609Receivables, net 1,251,489 727,557 1,869,108 1,037,723 67 2,554,288 7,440,232Due from other funds 2,408,306 12,829 115,622 15,706 1,060 2,553,523Inventories 1,307 1,762,752 1,764,059Deposits and prepaid items 60,846 1,729 8,234 29,145 8,770 108,724Interfund loan receivable 2,361,529 2,361,529

Total assets $65,740,924 $76,404,878 $3,681,361 $5,078,199 $9,485,709 $18,188,605 $178,579,676

LIABILITIES Accounts payable $2,883,361 $3,607 $20,255 $62,755 $4,000 $252,495 $3,226,473 Accrued payroll, withholdings and benefits 409,730 123,444 414,418 116,970 41,628 1,106,190 Due to other funds 89,344 1,208,424 393,319 404,606 25,000 447,015 2,567,708 Due to other government units 75,621 25,628 101,249 Unearned revenue 604,935 32,777 10,500 6,513,721 7,161,933

Total liabilities 4,062,991 1,361,103 860,769 594,831 6,542,721 741,138 14,163,553

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments 59,043 59,043 Unavailable revenue - land sales contract 886,126 886,126 Unavailable revenue - property taxes 917,366 45,640 963,006

Total deferred inflows of resources - 59,043 917,366 - - 931,766 1,908,175

FUND BALANCES Nonspendable 62,153 1,764,481 8,234 29,145 8,770 1,872,783 Restricted 766,839 73,220,251 579,350 4,325,220 2,942,988 583,608 82,418,256 Committed 1,042 1,315,642 129,003 13,563,187 15,008,874 Assigned 17,748,479 2,360,136 20,108,615 Unassigned 43,099,420 43,099,420

Total fund balances 61,677,933 74,984,732 1,903,226 4,483,368 2,942,988 16,515,701 162,507,948

Total liabilities, deferred inflows of resources, and fund balances $65,740,924 $76,404,878 $3,681,361 $5,078,199 $9,485,709 $18,188,605 $178,579,676

______

DOUGLAS COUNTY, OREGON

June 30, 2014GOVERNMENTAL FUNDS

BALANCE SHEET


13

Fund Balances - Governmental Funds $162,507,948

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 governmental funds: Land and right of way $11,894,136 Buildings and improvements 43,284,051 Furniture and equipment 15,526,432 Vehicles and heavy equipment 19,471,492 Dams 28,221,320 Infrastructure 358,148,897 Construction in progress 5,620,214

482,166,542 Less accumulated depreciation (314,235,704) 167,930,838

Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.

Notes payable (1,154,093) Accrued compensated absences (1,820,311)

Net OPEB obligation (2,087,175) Landfill closure and postclosure care cost (14,780,000) (19,841,579)

Deferred inflows of resources represents amounts that were not available to fund current expenditures and therefore are not reported as revenue in the governmental funds. 1,908,175

Internal service funds are used by management to charge the costs of certain activities to individual funds. Net position of the internal service funds are reported with governmental activities. 9,703,121

Net Position of Governmental Activities $322,208,503


______

STATEMENT OF NET POSITIONRECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE

June 30, 2014


14

HealthPublic Public and Social Other Total

General Works Safety Services Title III Governmental GovernmentalFund Fund Fund Fund Fund Funds Funds

Revenues: Charges for services $4,616,676 $39,927 $2,167,279 $598,760 $1,624,536 $9,047,178 Permits, licenses and fines 974,978 2,870 345,796 223,065 1,546,709 Intergovernmental 13,251,810 13,685,453 4,346,467 14,692,106 $1,693,225 2,723,343 50,392,404 Property taxes 8,943,433 446,105 9,389,538 Assessments 42,656 42,656 Interest 615,164 726,711 5,874 33,910 58,712 127,803 1,568,174 Other 551,237 45,571 219,378 155,548 1,897,886 2,869,620

Total revenues 20,009,865 14,543,188 16,028,227 15,703,389 1,751,937 6,819,673 74,856,279

Expenditures: Current: General Government 14,005,123 2,056,936 1,145,079 17,207,138 Public Safety 3,075,528 20,025,190 23,100,718 Highways and Streets 10,090,760 10,090,760 Sanitation 2,406,384 2,406,384 Health and Welfare 19,602 18,477,624 96,041 18,593,267 Culture and Recreation 3,508,078 2,241,567 5,749,645 Conservation 874,024 874,024 Education 2,114,652 2,114,652 Capital outlay 1,243,085 787,791 215,016 50,196 2,042,604 4,338,692 Debt service: Principal 103,001 103,001 Interest 54,122 54,122

Total expenditures 24,257,800 10,878,551 20,240,206 18,527,820 2,056,936 8,671,090 84,632,403

Excess (deficiency) of revenues over (under) expenditures (4,247,935) 3,664,637 (4,211,979) (2,824,431) (304,999) (1,851,417) (9,776,124)

Other financing sources (uses): Transfers in 1,717,974 290,608 4,955,551 1,374,479 135,000 8,473,612 Transfers out (1,718,546) (5,222,115) (25,933) (897,723) (535,795) (73,500) (8,473,612)

Total other financing sources (uses) (572) (4,931,507) 4,929,618 476,756 (535,795) 61,500 -

Net change in fund balances (4,248,507) (1,266,870) 717,639 (2,347,675) (840,794) (1,789,917) (9,776,124)

Fund balances, beginning as previously stated 65,907,587 76,494,981 1,185,587 6,831,043 3,783,782 18,324,471 172,527,451Adjust for GASB #54 reclassification 18,853 (18,853)Fund balances, beginning as restated 65,926,440 76,494,981 1,185,587 6,831,043 3,783,782 18,305,618 172,527,451

Change in reserve for inventories (243,379) (243,379)

Fund balances, ending $61,677,933 $74,984,732 $1,903,226 $4,483,368 $2,942,988 $16,515,701 $162,507,948

______

DOUGLAS COUNTY, OREGONSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

For the Year Ended June 30, 2014GOVERNMENTAL FUNDS


15

Amounts reported for governmental activities in the statement of net position are different because:

Net change in fund balances - Governmental Funds ($9,776,124)

Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation exceeded capital outlay during the year:

Acquisition of capital assets $3,640,123 Less current year depreciation (11,593,553) (7,953,430)

Contributions of capital assets increase net assets in the statement of activities, but do not appear in the governmental funds because they are not financial resources. 13,578,159

In the statement of activities, only the gain (loss) on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. The difference represents the book value of the capital assets sold. (615,113)

Governmental funds reported the decrease in the Public Works inventory as a change in fund balance; however, in the statement of activities the change is included in expenses. (243,379)

Revenues in the statement of activities that do not provide current financial resources are deferred inflows of resources in the governmental funds. (66,801)

The increase in the estimated landfill closure and postclosure care costs does not require the use of current financial resources and is not reported in the governmental funds. (425,000)

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. 194,377

Internal service funds are used by management to charge the costs of certain activities to individual funds. The net income (loss) of the internal service funds, along with any change in contributed capital, is reported with governmental activities. (682,950)

Change in net position - governmental activities ($5,990,261)

______For the Year Ended June 30, 2014

DOUGLAS COUNTY, OREGONRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES


16

GovernmentalActivitiesInternal

Current Year Prior Year Service Funds

ASSETSCurrent assets: Cash and investments $839,084 $597,923 $12,019,247 Receivables 55,075 53,342 74,923 Due from other funds 478 311,584 Inventories 46,275 29,428 324,845 Deposits and prepaids 4,429 571 59,224

Total current assets 945,341 681,264 12,789,823

Capital assets: Land 921,221 921,221 Buildings and improvements 9,193,618 9,193,618 Furniture and equipment 211,036 Vehicles and heavy equipment 304,537 280,537 3,566,058 Less accumulated depreciation (5,558,060) (5,298,402) (2,895,543)

Total capital assets (net of accumulated depreciation) 4,861,316 5,096,974 881,551

Total assets 5,806,657 5,778,238 13,671,374

LIABILITIES

Current liabilities: Accrued payroll, withholdings and benefits 18,138 15,294 2,013,438 Accrued compensated absences 22,599 22,408 43,481 Accrued claims liability 600,000 Due to other funds 69,210 36,167 228,667 Interfund loan payable 2,361,529 2,361,529

Total current liabilities 2,471,476 2,435,398 2,885,586

Noncurrent liabilities: Accrued claims liability 1,150,000

Total liabilities 2,471,476 2,435,398 4,035,586

NET POSITION

Invested in capital assets 4,861,316 5,096,974 881,551Unrestricted (deficit) (1,526,135) (1,754,134) 8,754,237

Total net position 3,335,181 $3,342,840 $9,635,788

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (67,333)

Net position of business-type activities $3,267,848

Business-type Activities - Enterprise FundSalmon Harbor


PROPRIETARY FUNDSSTATEMENT OF NET POSITION

June 30, 2014________


17

GovernmentalActivities

Total Internal

Current Year Prior Year Current Year Service Funds

Operating revenues: Charges for services $1,292,201 $1,178,947 $1,292,201 $12,788,481 Other 400,056 511,877 400,056 1,110,832

Total operating revenues 1,692,257 1,690,824 1,692,257 13,899,313

Operating expenses: Salaries and wages 417,927 523,819 417,927 551,769 Payroll taxes and benefits 206,806 240,242 206,806 350,872 Operating supplies and expenses 586,078 683,523 586,078 10,999,689 Utilities 290,449 299,141 290,449 54,131 Administrative expenses 141,879 124,405 141,879 2,211,456 Depreciation 259,658 259,574 259,658 297,633

Total operating expenses 1,902,797 2,130,704 1,902,797 14,465,550

Operating income (loss) (210,540) (439,880) (210,540) (566,237)

Nonoperating revenues and expenses: Intergovernmental 198,171 196,007 198,171 Interest income 4,710 5,240 4,710 73,966 Gain (loss) on disposal of capital assets (210,625)

Total nonoperating revenues 202,881 201,247 202,881 (136,659)

Change in net position (7,659) (238,633) (7,659) (702,896)

Total net position-beginning 3,342,840 3,581,473 10,338,684

Total net position-ending $3,335,181 $3,342,840 $9,635,788

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (19,946)

Change in net position of business-type activities ($27,605)


PROPRIETARY FUNDS

Business-type Activities - Enterprise Fund

for the year ended June 30, 2014

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

Salmon Harbor

______


18

GovernmentalActivitiesInternal

Current Year Prior Year Service FundsCash flow from operating activities: Receipts from customers $1,690,524 $1,675,625 Receipts from interfund services provided $13,591,422 Payments to suppliers and contractors (1,006,546) (1,125,153) (12,670,090) Payments to employees (621,698) (767,924) (400,673) Other operating receipts 206,342

Net cash provided by (used in) operating activities 62,280 (217,452) 727,001

Cash flows from noncapital financing activities: Operating grants from other governmental entities 198,171 196,007 Net cash provided by (used in) noncapital and related financing activities 198,171 196,007 -

Cash flows from capital and related financing activities: Acquisition of capital assets (24,000) (222,665) (508,636) Net cash provided by (used in) capital and related financing activities (24,000) (222,665) (508,636) Cash flows from investing activities: Interest received 4,710 5,240 73,966

Net increase (decrease) in cash and cash equivalents 241,161 (238,870) 292,331

Cash and cash equivalents, beginning 597,923 836,793 11,726,916

Cash and cash equivalents, ending $839,084 $597,923 $12,019,247

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) ($210,540) ($439,880) ($566,237) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 259,658 259,574 297,633 (Increase) decrease in: Accounts receivable (1,733) (15,199) (35,533) Prepaid expenses and deposits (3,858) 24 (3,322) Inventories (16,847) (9,849) (17,988) Interfund receivables (478) (66,016) Increase (decrease) in: Accounts payable (4,688) Accrued payroll, withholdings and benefits 2,844 963 505,456 Accrued compensated absences 191 (4,826) (3,488) Accrued claims liability 500,000 Interfund payables 33,043 (8,259) 121,184

Total adjustments 272,820 222,428 1,293,238

Net cash provided by (used in) operating activities $62,280 ($217,452) $727,001

Noncash investing, capital and financing activities: Book value of capital assets disposed $210,625


PROPRIETARY FUNDSSTATEMENT OF CASH FLOWS

Salmon Harbor

Business-type Activities -Enterprise Fund

______for the year ended June 30, 2014


19

ASSETSCash and investments: Equity in pooled cash and investments $1,484,773Property taxes receivable 9,203,808Accrued interest receivable 20,340

Total assets $10,708,921

LIABILITIESDue to other governmental units $10,708,921

Total liabilities $10,708,921

______

DOUGLAS COUNTY, OREGONSTATEMENT OF FIDUCIARY NET POSITION

AGENCY FUNDJune 30, 2014


20

NOTES TO FINANCIAL STATEMENTS

DOUGLAS COUNTY, OREGON NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2014 ________

21

1. Summary of Significant Accounting Policies

A. Reporting Entity

The County is a municipal corporation governed by a Board of Commissioners consisting of three independently elected members who serve full-time and are compensated. As required by generally accepted accounting principles, these financial statements present the County and its component units, entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the County.

Component Units

The County reports the following component units:

Blended Component UnitThe 4-H Extension Service District was approved by a vote of the people on May 20, 2008 and created by Order of the Board of Commissioners on June 11, 2008 under the provisions of ORS 451.010(1) (i). The District is governed by a Board comprised of the Douglas County Board of Commissioners. In the role of County management, the Board of Commissioners has operational responsibility for the District. The District is included in the non-major special revenue funds and, like the County, has a fiscal year ending June 30.

Complete financial statements for the 4-H Extension Service District may be obtained at the District’s office located at 1134 SE Douglas Ave., Roseburg, Oregon 97470.

Discretely Presented Component Unit The Hospital Facility Authority of Douglas County was created pursuant to ORS 441.530 to provide the people of Douglas County with access to adequate medical care and hospital facilities. The Authority acts as the financing authority for the hospital entity. The Authority has the power to acquire, own, lease, sell and dispose of hospital facilities, or lend money to construct hospital facilities, and to issue bonds and other obligations to provide hospital facilities. Although the Authority is not part of the County, the Douglas County Board of Commissioners appoints members to the Authority’s Board. The Board of Commissioners may, at its sole discretion, alter or change the structure, organization, programs or activities of the Authority, subject to any limitations imposed by the impairment of contracts. The Board may dissolve the Authority at any time, provided the Authority has no bonds or other obligations outstanding.

Complete financial statements for the Hospital Facility Authority of Douglas County may be obtained at the Office of Management and Finance, Douglas County, Roseburg, Oregon.

DOUGLAS COUNTY, OREGON NOTES TO BASIC FINANCIAL STATEMENTS, continued

June 30, 2014 ___________

22

B. Government-wide and Fund Financial Statements

The Statement of Net Position and the Statement of Changes in Net Position report information on the nonfiduciary activities of the County (the primary government) and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported 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 program is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or program. Program revenues include: charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or program; and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. Remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

The County reports the following major governmental funds:

The General Fund accounts for all financial resources not accounted for and reported in another fund.

The Public Works Fund accounts for expenditures restricted under Article IX of the Constitution of the State of Oregon. Expenditures from this fund are for construction, reconstruction, improvement, repair, maintenance, and operation of roads and bridges within the County. Major revenues are motor vehicle fee apportionments from the State of Oregon and revenues under the Secure Rural Schools and Community Self-Determination Act that replace the former apportionment of proceeds from timber sales on federal forest lands.

The Public Safety Fund was established to account for many of the County’s public safety programs. It includes the sheriff, communications, work crew and drug enforcement activities. Revenues consist of property taxes, grants from federal and state agencies, shared revenues, fees and fines, and transfers in from other funds.

The Health and Social Services Fund was established to account for the County’s health programs, including general health care, family planning and various other related services. Grants from federal and state agencies are the primary revenue sources for this fund.

The Title III Fund was established to account for the funds received from the Secure RuralSchools and Community Self-Determination Act. Expenditures are restricted to categories listed in the Act.


June 30, 2014 ___________

23

The County reports the following major enterprise fund:

The Salmon Harbor Fund is used to account for operations at the Salmon Harbor Marina. Current operations include dry camping, boat launching and moorage, marine fueling, sewage waste dumping, and an R.V. park with resort amenities.

Additionally, the County reports the following fund types:

Internal service funds are used to account for general liability, auto liability, workers’ compensation and the County’s motor pool activities that are charged to other departments on a cost-reimbursement basis.

Agency Fund - The County has one Agency Fund that is used to account for the County’s collection and turnover of property taxes to all other taxing districts within the County and for miscellaneous clearing accounts held by the Treasurer.

C. Measurement Focus, Basis of Accounting and Basis of Presentation

The government-wide financial statements and the proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting; agency funds are also reported using the accrual basis of accounting but have no measurement focus. 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 as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, intergovernmental revenue, charges for services, fees and interest are susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when the County receives cash.


June 30, 2014 ___________

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As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. The only exception is where the elimination would distort the direct costs and program revenues reported by the various functions concerned.

Amounts reported as program revenues include: charges to customers or applicants for goods, services, or privileges provided; operating grants and contributions; and capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Salmon Harbor Fund and the County’s internal service funds are charges to customers for sales and services. Operating expenses for the enterprise fund and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The County implemented GASB (Government Accounting Standards Board) Statement No. 54 in a prior year. Under GASB No. 54, the Dog Control Fund and Law Library Fund no longer meet the definition of a special revenue fund. These funds have been combined with General Fund for Basic Financial Statement presentation. The Dog Control Fund and Law Library Fund Budget and Actual schedules continue to be shown separately in Other Supplemental Data for Oregon budget law purposes.

When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are needed.

D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

1. Deposits and Investments

The County maintains a cash and investment pool that is available for use by all funds. The County reports all short-term, highly liquid money market investments and participating interest-earning investment contracts with a remaining maturity at time of purchase of three months or less at amortized cost. Investments with a remaining maturity at time of purchase of more than three months are valued at fair value.

For purposes of the statement of cash flows, cash and cash equivalents include all assets in the cash and investment management pool. The cash and investment management pool has the general characteristic of a demand deposit account for the proprietary funds in that these funds may deposit additional cash at any time and also effectively may withdraw cash at any time without prior notice or penalty.


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State statutes authorize the County to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, municipal bonds, banker’s acceptances, repurchase agreements, and the State Treasurer’s Local Government Investment Pool (LGIP).

2. Receivables and Payables

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.”

Accounts receivable represent uncollected rents, fees and other charges. County management believes that the amount of any uncollectible accounts included in receivables is immaterial. Therefore, no provision for uncollectible accounts has been made.

Assessments and mortgage notes receivable represent uncollected amounts assessed against benefited property owners for the cost of local improvements. An allowance for uncollectible amounts is not deemed necessary because substantially all amounts, including delinquent assessments, should be recoverable through liens. Substantially all assessments are collectible in installments, including interest ranging from 4.5% to 7% over a period of five to fifteen years. The County does not consider assessment receivables to meet the “available” criteria for revenue accrual, as installments are received more than 60 days after year-end.

Property taxes receivables are deemed to be substantially collectible or recoverable through foreclosure. Accordingly, no allowance for doubtful tax accounts is deemed necessary.

Property taxes are levied and become a lien on July 1. Property taxes are assessed in October and tax payments are due November 15th of the same year. Under the partial payment schedule, the first one-third of taxes is due November 15th, the second one-third on February 15th, and the remaining one-third on May 15th. A three percent discount is allowed if full payment is made by November 15th and a two percent discount is allowed if two-thirds payment is made by November 15th. Taxes become delinquent if not paid by the due date and interest accrues after each trimester at a rate of one and one-third percent per month (16% annually). Property foreclosure proceedings are initiated four years after the tax due date.


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3. Inventories

Inventories of road repair materials and supplies in the governmental fund of Public Works is valued at average cost and is shown in the balance sheet as an asset and a reservation of fund balance. Inventories of office supplies in the General Fund (also a governmental fund) are valued at cost, using the first-in, first-out (FIFO) method, and are recorded as expenditures when consumed rather than when purchased. Inventories of materials and supplies in the proprietary fund of Fleet Management are valued at average cost and are recorded as expenses when consumed.

4. Deposits and Prepaid Items

Deposits represent amounts held by others as agents of the County that remains the property of the County and will be returned to the County. Prepaids represent regularly recurring payments made to vendors for services that reflect costs applicable to future accounting periods. Deposits and prepaids are recorded as expenditures when consumed rather than when purchased.

5. Capital Assets

Capital assets are stated at either cost, estimated historical cost or fair market value on the date donated for donated assets. Capital assets are defined by the County as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of two years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Upon disposal of capital assets, the historical cost, estimated historical cost or fair market value of donated assets is removed from County asset records, and proceeds from any sales are generally recorded as revenue in the governmental fund financial statements or as a gain or loss on disposal of assets in proprietary fund and government-wide financial statements.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest costs of tax exempt debt, less interest earned on investments acquired with these proceeds, incurred during the construction phase of capital assets of business-type activities are included as part of the capitalized value of the assets constructed. No interest was capitalized in fiscal year 2014.

Property, plant, and equipment of the County are depreciated using the straight-line method over the following estimated useful lives:

Sewer system 30 years Equipment and vehicles 3-20 years Buildings and improvements 7-50 years Dams 75 years Roads and bridges 30-50 years


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6. Compensated Absences

County employees accumulate earned but unused vacation, compensatory and sick leave benefits in accordance with applicable policy and bargaining agreements. Vacation leave and compensatory time is recorded in government-wide and proprietary financial statements as earned by employees. A liability and expenditure for these amounts is reported in governmental funds only if matured, for example, as a result of employee resignations and retirements. Accumulated sick leave lapses when an employee leaves County employment and, upon separation from service, no monetary obligation exists.

7. Long-term Obligations

All County long-term obligations are included in the government-wide financial statements. Long-term obligations directly related to and expected to be paid from proprietary funds are also included in those funds.

8. Deferred outflows/inflows of resources

The County implemented GASB Statement No. 65 in a prior year. Under GASB No. 65certain items previously reported as assets or liabilities are now reported as deferred outflows/inflows of resources.

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County currently has no items that qualify for reporting in this category.

Similarly, in addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County reports special assessments, property taxes and land sales contracts as unavailable revenues in the governmental funds balance sheet.

9. Net Position Flow Assumption

Sometimes the County will fund outlays for a particular purpose from both restricted 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.


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10. Fund Balance Flow Assumptions

Sometimes the County will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental 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 fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

11. 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 Board of Commissioners (the County’s highest level of decision-making authority). The Board can adopt an order prior to the end of the fiscal year to commit a fund balance. Once adopted, the limitation imposed by the Board order remains in place until a similar action is taken (the adoption of another order) to remove or revise the limitation.

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 Commissioners has by Board order authorized the chief financial officer to assign the fund balance. The Board may also assign a fund balance as it does when appropriating a fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. Normally, an additional action does not have to be taken to remove an assignment.

12. Use of Estimates

The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.


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13. Comparative Data

Comparative total data for the prior year have been presented only for the enterprise fund in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of the fund.

2. Stewardship, Compliance, and Accountability

A. Budgetary Information

Except for certain fiduciary funds, state law requires the County to budget all funds. State law further requires that total resources in each fund equal total expenditures and requirements for that fund. Appropriations in all budgeted funds lapse at the end of the fiscal year.

During the month of March each year, all departments of the County submit requests for appropriations to the Budget Officer so that a budget can be prepared. By May 15, the proposed budget is presented to the County Budget Committee for approval. The County Board of Commissioners holds public hearings and a final budget is adopted no later than June 30.

The County prepares its annual budget on a detailed line item basis for management purposes, and adopts and appropriates the budget for legal control by organizational unit (department) or by expenditure type (personal services, materials and services, capital outlay, other and transfers) where organizational units are not applicable. The level of control for General, Public Works, Public Safety, Dog Control, Health and Social Services, and Water Development funds is by organizational unit. All other funds are controlled by expenditure type. Under State law, the appropriation levels become the legal spending control levels for County operations. Budgets can be modified during the fiscal year through different means. Management may make line item changes at any time within appropriation categories without formal action. Transfers of appropriations between organizational units, expenditure types or funds require the approval of the Board of Commissioners.

State law requires a supplemental budget to increase appropriations when unexpected additional resources become available. The Board approved two supplemental budgets during the year that provided spending authority for additional resources not anticipated at the time the original budget was adopted.

Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditure of monies are recorded to restrict a portion of the appropriation, is employed for administrative control purposes in all funds except for Fiduciary Funds. Encumbrances at year-end do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent year. Note 4B identifies encumbrances outstanding at June 30, 2014.


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3. Detailed Notes on all Funds

A. Cash and Investments

The County’s cash and investments are comprised of the following at June 30, 2014:

Cash on hand $94,451 Deposits with financial institutions 9,441,713 Investments 169,158,549

Total cash and investments 178,694,713 Less cash and investments in agency fund (1,484,773)

Cash and investments, as reported on the Statement of Net Position $177,209,940

DepositsDeposits with financial institutions are bank demand deposits. Total bank balances, as shown on bank records at June 30, 2014 are $10,707,468. Insurance and collateral requirements for deposits are established by banking regulations and Oregon law. Of these deposits, $946,047 was covered by federal depository insurance (FDIC), and $9,761,421 by collateral held in a shared liability pool made up of all public funds depositories in Oregon.

The Oregon State Treasurer is responsible for monitoring public funds held by bank depositories in excess of FDIC insured amounts, and for assuring that public funds on deposit are collateralized against custodial credit risk to the extent required by Oregon Revised Statutes (ORS) 295. Custodial credit risk on deposits is the risk that in the event of bank failure, the County’s deposits may not be returned. The amount of collateral is set by the Public Funds Collateralization Program (PFCP), a multiple financial institution collateral pool created by the Office of the State Treasurer. The amount of collateral set by the PFCP is between 10% and 110% of each bank’s public fund deposits based on their net worth and level of capitalization. Although the PFCP creates a shared liability structure for participating bank depositories, it does not guarantee that all funds are 100% protected.


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Investments State statutes authorize the County to invest in general obligations of the U.S. Government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers’ acceptances, commercial paper, and the Oregon Local Government Investment Pool, among others. The County has no investment policy that would further limit its investment choices.

At June 30, 2014, the County’s investments consisted of:

Fair Value Percent Investment in Oregon Local Government Investment Pool $42,222,045 25.0% U.S. Government Agency Securities 81,777,107 48.3% Municipal Securities 10,787,587 6.4% Corporate Bonds 34,371,810 20.3% Total investments $169,158,549 100.0%

The Oregon Local Government Investment Pool is an open-ended, no-load diversified portfolio pool. The fair value of the County’s position in the pool is substantially the same as the value of the County’s participant balance.

The Oregon Local Government Investment Pool is an external investment pool which is part of the Oregon Short-Term fund. Investment policies are governed by the Oregon Revised Statutes and the Oregon Investment Council (Council). The State Treasurer is the investment officer for the Council. Investments are further governed by portfolio guidelines issued by the Oregon Short-Term Fund Board. The Oregon Short-Term Fund does not receive credit quality ratings from nationally recognized statistical rating organizations.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Oregon Short-Term Fund manages this risk by limiting the maturity of the investments held by the fund. Weighted average maturities of investments in the Oregon Short-Term Fund at June 30, 2014 were: 61% mature within 93 days, 13% mature from 94 days to one year, 26% mature from one to three years, and less than 1% mature greater than three years.


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As of June 30, 2014, maturities for the County’s other investments are as follows: Less than One to FiveOne Year Years

U.S. Government Agency Securities: Federal Farm Credit Bank $2,002,054 $9,833,434 Federal Home Loan Bank 507,413 23,096,827 Federal Home Loan Mortgage Corp. 3,003,873 13,217,351 Federal Financing Corp. 133,920 2,245,843 Federal National Mortgage Association 16,371,672 Federal Agricultural Mortgage Corp 4,759,326 Private Export Funding Corp. 3,027,934 344,628 Tennessee Valley Authority 2,080,906 164,738 Treasury Notes 987,188Municipal Securities 4,701,670 6,085,917Corporate Debt 13,720,511 20,651,299

Total $29,178,281 $97,758,223

Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligation. The County’s U.S. Government Agency securities investments are rated AA+ by Standard and Poor’s and Aaa by Moody’s. The County’s corporate debt investments are rated A to AAA by Standard and Poor’s and/or A1 to Aaa by Moody’s. The municipal securities investments are rated AA- to AAA by Standard and Poor’s and/or A1 to Aa1 by Moody’s.


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B. Receivables, net

Receivables at June 30, 2014, including the applicable allowance for uncollectible accounts, are as follows:

Receivables General Public Works Public Safety

Health and Social

Services Title III

Nonmajor governmental

funds

Property Taxes $974,214 $48,363Assessments $59,043Accounts $877,568 563,623 894,894 $1,037,723 $67 235,021Notes and Contracts 2,466,285Interest 373,921 104,891 206,119Gross Receivables 1,251,489 727,557 1,869,108 1,037,723 67 2,955,788Less: Allowance for Uncollectibles (401,500) Net Receivables, end of year $1,251,489 $727,557 $1,869,108 $1,037,723 $67 $2,554,288

Receivables (continued)Internal

Service Funds

Enterprise Fund - Salmon Harbor

Fiduciary Fund Total

Property Taxes $9,203,808 $10,226,385Assessments 59,043Accounts $74,923 $55,075 3,738,894Notes and Contracts 2,466,285Interest 20,340 705,271Gross Receivables 74,923 55,075 9,224,148 17,195,878Less: Allowance for Uncollectibles (401,500) Net Receivables, end of year $74,923 $55,075 $9,224,148 $16,794,378

Governmental Funds

Discretely Presented Component Unit The Hospital Facility Authority of Douglas County has a contract receivable that represents an amount loaned by the Authority to the Aspen Foundation for the purchase of a senior residence. Receipts from the repayment of loaned funds are pledged for revenue bond debt service. Annual installments and maturities correspond to Authority revenue bonds at Note 2F. On March 1, 2011 the Trustee under the Indenture of Trust notified the Hospital Authority that an event of default had occurred. On September 1, 2010, payments of principal and interest were due and owing but only the interest payment was made. Interest payments totaling $125,125 were made in the current fiscal year. As of June 30, 2014, bond principal payments of $180,000 and interest payments of $299,376 are delinquent. The amount outstanding at June 30, 2014 is $1,600,000 for the Aspen Foundation 1997 Series A Bonds.


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C. Capital Assets

Capital asset activity for the year ended June 30, 2014 was as follows:

Beginning Ending

Balances Increases Decreases Balances Governmental activities: Capital assets not being depreciated:

Land and right of way $11,877,138 $16,998 $11,894,136

Construction in progress 4,790,981 917,774 $88,541 5,620,214

Total capital assets not being depreciated 16,668,119 934,772 88,541 17,514,350

Capital assets being depreciated:

Buildings and improvements 41,984,091 1,325,702 25,742 43,284,051

Furniture and equipment 15,675,041 325,248 262,821 15,737,468

Vehicles and heavy equipment 23,613,185 1,475,977 2,051,612 23,037,550

Dam structures and improvements 28,221,320 28,221,320

Infrastructure 344,338,169 13,810,728 358,148,897 Total capital assets being depreciated 453,831,806 16,937,655 2,340,175 468,429,286

Less accumulated depreciation for:

Buildings and improvements 17,813,806 656,619 16,032 18,454,393

Furniture and equipment 11,202,906 1,237,707 255,940 12,184,673

Vehicles and heavy equipment 17,348,971 723,519 1,185,497 16,886,993

Dam structures and improvements 8,842,680 376,284 9,218,964

Infrastructure 251,489,167 8,897,057 260,386,224 Total accumulated depreciation 306,697,530 11,891,186 1,457,469 317,131,247

Total capital assets being depreciated, net 147,134,276 5,046,469 882,706 151,298,039

Governmental activities capital assets, net $163,802,395 $5,981,241 $971,247 $168,812,389

Business-type activities: Capital assets not being depreciated:

Land $921,221 $921,221

Capital assets being depreciated:

Buildings 9,193,618 9,193,618

Vehicles and heavy equipment 280,537 $24,000 304,537

Total capital assets being depreciated 9,474,155 24,000 - 9,498,155

Less accumulated depreciation for:

Buildings 5,092,578 227,889 5,320,467

Vehicles and heavy equipment 205,824 31,769 237,593

Total accumulated depreciation 5,298,402 259,658 - 5,558,060

Total capital assets being depreciated, net 4,175,753 (235,658) - 3,940,095

Business-type activities capital assets, net $5,096,974 ($235,658) - $4,861,316


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Depreciation expense was charged to functions/programs as follows:

Governmental activities: General government $663,984 Public safety 1,080,571 Highways and streets 8,917,245 Sanitation 414,117 Health and welfare 152,040 Culture and recreation 286,357 Conservation 376,872 Total depreciation expense - governmental activities $11,891,186

Business-type activities: Salmon Harbor $259,658 Total depreciation expense - business-type activities $259,658

D. Interfund receivables, payables, and transfers

The composition of interfund balances as of June 30, 2014 is as follows:

Funds

Due from OtherFunds

Due to OtherFunds

InterfundLoan

Receivable

InterfundLoan

Payable Transfers In Transfers

Out

Governmental Funds:

General Fund $2,408,306 $89,344 $1,717,974 $1,718,546

Public Works Fund 12,829 1,208,424 290,608 5,222,115

Public Safety Fund 115,622 393,319 4,955,551 25,933

Health & Social Services Fund 15,706 404,606 1,374,479 897,723

Title III Fund 25,000 535,795

Nonmajor governmental funds 1,060 447,015 $2,361,529 135,000 73,500

2,553,523 2,567,708 2,361,529 - 8,473,612 8,473,612

Proprietary Funds:

Salmon Harbor Fund 478 69,210 $2,361,529

Internal service funds 311,584 228,667

312,062 297,877 - 2,361,529 - -

$2,865,585 $2,865,585 $2,361,529 $2,361,529 $8,473,612 $8,473,612


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The due to/from other funds balances result from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur, and when payments between funds are made.

Interfund Loan Receivable/Payable is the result of a loan from the County Forest Management Fund to the Salmon Harbor Fund for capital asset acquisition. The funds are budgeted to be repaid by the end of the 2015 fiscal year.

Transfers are used to move revenues from the fund with collection authority to the fund authorized to make the expenditure, and to move unrestricted general fund revenues to finance various programs accounted for in other funds in accordance with budgetary authorization.

E. Unearned Revenue

A detail of revenue that has been received but not yet earned at June 30, 2014 is as follows:

General PublicSafety

Health & Social

Services Title III Total

Unearned:

Fees and rents $32,777 $32,777

Grant revenues $10,500 $6,513,721 6,524,221

Payment in lieu of taxes $604,935 604,935

Total unearned revenue $604,935 $32,777 $10,500 $6,513,721 $7,161,933

F. Long-term Liabilities

Primary Government Notes Payable

OriginalDescription Maturity Date Interest Rates Loan 2013 2014

OECDD Dec. 1, 2013 5.19% $264,000 $20,465 - OECDD - Green Sanitary Dec. 1, 2031 5% 225,000 215,000 $207,695Tri-City Water & Sanitary Dec. 1, 2024 5.25%-5.63% 756,703 486,188 456,241City of Sutherlin Dec. 1, 2025 3.11% 477,000 438,000 399,000City of Reedsport Dec. 1, 2023 3.00%-4.63% 152,319 97,441 91,157

$1,875,022 $1,257,094 $1,154,093

Balance June 30

Notes Payable to cities in Douglas County and to the Oregon Economic & Community Development Department (OECDD) are to assist smaller government agencies in Douglas County in developing infrastructure/public improvements necessary to attract and accommodate new business to the area. Douglas County does not own nor maintain the improvements.


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Annual debt service requirements to maturity for notes payable are as follows:

Year end Governmental Activities

June 30 Principal Interest 2015 $83,223 $50,087 2016 91,446 47,067 2017 95,208 43,607 2018 93,010 40,099 2019 96,855 36,278

2020-2024 487,165 116,240 2025-2029 164,995 25,787 2030-2032 42,191 3,897

$1,154,093 $363,062

Landfill Closure and Postclosure Care Cost

State and federal laws and regulations require the County to place a final cover on its Roseburg and Reedsport landfills when they stop accepting waste and to perform certain maintenance and monitoring functions at the sites for thirty years after closure. During the year, the County updated the cost estimates of the landfill closure and postclosure care costs in accordance with the State of Oregon Department of Environmental Quality requirements. The $14,780,000 shown as landfill closure and postclosure care liability at June 30, 2014, represents a portion of the total closure and postclosure cost based on the use of approximately 68 percent of estimated capacity of the Roseburg landfill and 100 percent use of estimated capacity of the Reedsport landfill. This represents an increase of $425,000 from the amount of $14,355,000, which was recorded as the landfill closure and postclosure liability at June 30, 2013. The estimated remaining life of the Roseburg landfill is approximately 11 years. The County will recognize the remaining estimated cost of closure and postclosure care of $5,684,700 as the remaining estimated capacity of the Roseburg location is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2014. Actual costs may be higher due to inflation, changes in technology, or changes in regulations.

Financial Assurance: The County is required by state and federal regulations to provide assurance of its ability to finance closure and postclosure care costs. Currently, the County demonstrates financial assurance in connection with the estimated closure and postclosure care activities of the landfills using the local government financial assurance test described in Title 40 of the Code of Federal Regulations 258.74 and Oregon Administrative Rule 340-094-0145. As of June 30, 2014 the County assured total closure and postclosure care costs of $20,464,700.


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Discretely Presented Component Unit

Revenue Bonds The Hospital Facility Authority of Douglas County, a component unit of Douglas County, issues bonds where income derived from the repayment of loaned funds is pledged to pay debt service. The 1997 Issue Series A Semiannual Tender Revenue Bonds, with an annual rate of 7.5%, due through fiscal 2028 has an outstanding balance of $1,600,000 as of June 30, 2014. Debt service principal and interest requirements to maturity are as follows:

Year end June 30 Principal Interest

In default* $180,000 $299,3762015 55,000 104,4382016 60,000 100,1252017 60,000 95,6252018 65,000 90,938

2019-2023 415,000 369,5622024-2028 765,000 174,187

$1,600,000 $1,234,251

*Default under the indenture occurred when the borrower (Aspen Foundation) failed to make the semi-annual principal payment due on September 1, 2010. Semi-annual interest payments have not been made since September 1, 2010; however, lump sum interest payments of $105,125 and $20,000 were made on September 1, 2013 and March 3, 2014, respectively. As of June 30, 2014, principal payments of $180,000 and interest payments of $299,376 are delinquent.


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Changes in General Long-term Liabilities

Long-term liability activity for the year ended June 30, 2014 was as follows:

Beginning Ending Due Within Balance Additions Reductions Balance One Year

Governmental Activities

Notes payable $1,257,094 $103,001 $1,154,093 $83,223

Compensated absences 2,164,470 $1,863,792 2,164,470 1,863,792 589,574

Accrued claims 1,250,000 945,515 445,515 1,750,000 600,000

Net OPEB obligation 1,881,361 205,814 2,087,175

Landfill closure and

postclosure costs 14,355,000 425,000 14,780,000 50,000

Total $20,907,925 $3,440,121 $2,712,986 $21,635,060 $1,322,797

Notes payable are liabilities of the Industrial Development Fund. The County assists smaller government agencies within Douglas County with their debt service payments where the debt was created for the development of infrastructure and/or pubic improvements necessary to attract and accommodate business to the County. Douglas County does not receive the loan proceeds and does not own or maintain the infrastructure and/or improvements. Additions to notes payable reflect the County’s agreement to assist an agency repay new debt they have incurred to encourage business development within the County.

Compensated absences are liabilities of the funds in which the related payroll costs accrued. Expenditures for liquidating compensated absences are recorded in the general, special revenue, enterprise and internal service funds. At June 30, 2014, $43,481 of internal service funds compensated absences is included in governmental activities; and $22,599 is recorded in the business-type activity fund of Salmon Harbor. The net OPEB obligation including that in the internal service funds is part of governmental activities. Any payments related to landfill closure and post-closure care costs are recorded in the General Fund. The accrued claims liability is an internal service fund obligation.


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G. Fund Balance Components in the Governmental Fund Financial Statements

The following schedule presents details of fund balance components at June 30, 2014:

Major FundsHealth and

Public Public Social NonmajorGeneral Works Safety Services Title III Governmental

Fund Fund Fund Fund Fund Funds

FUND BALANCES Nonspendable: Inventories, deposits and prepays $62,153 $1,764,481 $8,234 $29,145 $8,770

Restricted for: Federal Secure Rural Schools Title II and Title III programs 40,566 15,640 $2,942,988 Law enforcement activities 563,710 Highways, streets and bridges 73,220,251 Health and welfare 4,325,220 District Attorney grant programs 108,784 Children and family programs 1,149 Library purposes 291,614 County Clerk recording purposes 84,173 Surveyor corner preservation 22,018 4-H extension service activities 528,627 County schools 25,516 Juvenile programs 164,898 Public use law library Kanipe Park activities 53,637 Fairgrounds infrastructure County fairs 29,465

766,839 73,220,251 579,350 4,325,220 2,942,988 583,608 Committed to: Health and welfare 129,003 Law enforcement activities 1,033,318 Communication services 218,801 Radio system 63,523 Economic development 4,662,252 Land and forest management 6,942,791 Preservation of fish habitat 10,386 Dog control - spay and neuter 1,042 Water impound purposes 1,947,758

1,042 - 1,315,642 129,003 - 13,563,187 Assigned to: FY15 budget appropriations 17,714,490 Animal control operations 23,687 Law Library purposes 10,302 Capital improvement purposes 2,360,136

17,748,479 - - - - 2,360,136 Unassigned, reported in: General Fund 43,099,420

Total $61,677,933 $74,984,732 $1,903,226 $4,483,368 $2,942,988 $16,515,701


June 30, 2014 ___________

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4. Other Information

A. Self-insurance and Group Insurance Program

The County is self-insured for workers’ compensation claims and general liability claims, and carries commercial insurance for all other significant risks. The County has established the Employee Benefit Trust Fund (an internal service fund) to account for and finance its uninsured risks of loss. Other County funds make payments to the Employee Benefit Trust based on an estimate of the amounts needed to pay prior and current-year claims and to establish a reserve for catastrophic losses. Settlements have not exceeded coverage in any of the past three fiscal years.

Claims liabilities for general liability are based on an actuarial estimate of the ultimate cost of settling claims, including incurred but not reported (IBNR) claims. Under Oregon Law, general claims are limited to $633,300 per claimant and $1,266,700 aggregate per occurrence. Claims under federal jurisdiction are not subject to such limitations. The first $1 million per occurrence is self-retained and the balance of liability coverage is purchased through a private insurance carrier. The claims paid during the year under this program were $112,533. The estimated unpaid loss liability including IBNR at June 30, 2014, was $1,000,000.

Coverage for workers’ compensation claims in excess of $1,000,000 per occurrence is purchased from commercial insurers. Claim liabilities are based on an actuarial estimate of the ultimate cost of settling claims, including incurred but not reported (IBNR) claims. The claims paid during the year under this program were $332,982. Total estimated unpaid loss liability at June 30, 2014, including IBNR, is $750,000.

The County provides a cafeteria-style health insurance program to employees. The County pays for the first $1,365 of the benefits selected by the employee per month. Benefits include medical, dental, vision and life insurance. Employees may also choose supplemental life insurance, cancer/ICU, accidental death and dismemberment, short-term disability, long term disability and deferred compensation.

Changes in the self-insurance program claims liabilities during the past two years are as follows:

Claims and Beginning Changes in Claim Ending

Year Balance Estimates Payments Balance

2013-14 $1,250,000 $945,515 $445,515 $1,750,000

2012-13 $1,250,000 $343,791 $343,791 $1,250,000


June 30, 2014 ___________

42

B. Commitments and Contingencies

The County has commitments under various contracts entered into during the normal course of its operations of approximately $5,255,596 at June 30, 2014. The approximate commitments byfund are as follows:

General Fund $868,350 Public Works Fund 1,055,475 Public Safety Fund 1,418,552 Health and Social Services Fund 883,809 County Fair Board Fund 336,438 Capital Projects Fund 278,397 Salmon Harbor Fund 23,842 All other funds 390,733 $5,255,596

Other commitments for encumbrances that lapse at year-end but are re-encumbered in the next fiscal year were not material.

The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the County counsel the resolution of these matters will not have a material adverse effect on the financial condition of the County.

Any amounts received or receivable from grantor agencies are subject to audit by the grantor agencies, and any adjustments may become a liability of the applicable fund. County management believes that adjustments, if any, will not materially affect the County’s financial position.

C. Pension Plan

Plan Description/Funding Policies The County is a participating employer in the Oregon Public Employees Retirement System (OPERS), a cost-sharing multi-employer defined benefit public employee pension plan, and maintains a defined contribution plan for the purpose of individual retirement savings through OPERS. OPERS are administered under Oregon Revised Statutes Chapter 238 by the Public Employees Retirement Board (PERB). County employees are eligible to participate in OPERS after six months of employment and benefits vest after five continuous years of service or at age 50.

OPERS, a component unit of the State of Oregon, issue a comprehensive annual financial report that can be obtained by writing Oregon Public Employees Retirement System, P.O. Box 23700, Tigard, Oregon 97281-3700.

County employees participate in one or more of the OPERS retirement plans that provide pension, death, disability, and post-employment healthcare benefits to members or their beneficiaries.


June 30, 2014 ___________

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Public Employee Retirement System (PERS) is an agent multiple-employer defined benefit pension plan provided to members who were hired prior to August 20, 2003. In 1995, the Oregon legislature enacted a second level or “tier” of PERS benefits for persons who established PERS membership on or after January 1, 1996. These Tier Two members do not have the Tier One assumed earnings rate guarantee, and have a higher normal retirement age of 60, compared to 58 for Tier One. Employer contributions to PERS are required by state statute and are made at actuarially determined rates as adopted by the PERB. The County’s PERS rate July 1, 2013 through June 30, 2014 was 22.36% in accordance with the December 31, 2011 valuation as reduced by Senate Bill 822. This rate includes an 18.09% factor for the Tier One/Tier Two unfunded actuarial liability (UAL). Senate Bill 822 enacted in May 2013 reduced the UAL by 4.4% to 13.69% beginning July 1, 2013, compared to the rates originally calculated in the December 31, 2011 actuarial valuation.

Oregon Public Service Retirement Plan (OPSRP) is a cost-sharing multiple-employer defined benefit and defined contribution pension plan created by the Oregon legislature in 2003 as a successor plan for PERS.

The defined benefit pension plan is provided to members who were hired on or after August 29, 2003. Employer contributions are required by state statute and are made at actuarially determined rates as adopted by the PERB. The contribution rates for the period July 1, 2013 through June 30, 2014, for the OPSRP defined benefit pension plan were 19.96% for general service employees and 22.69% for police and fire employees. These rates also include a 13.69% factor for the Tier One/Tier Two UAL.

The Individual Account Program (IAP) is a defined contribution pension plan provided to all members or their beneficiaries who are PERS or OPSRP eligible. Oregon statutes require covered employees to contribute 6% of their annual covered salary to the IAP plan effective January 1, 2004. Douglas County has elected to pay all of the employees’ required IAP contributions. PERS members retain their existing PERS accounts; however, member contributions have been deposited in the member’s IAP since the beginning of 2004 rather than into the member’s PERS account.

Annual Pension CostFor June 30, 2014, the County’s annual pension cost of $8,515,966 was equal to the County’s required and actual contributions. The required contribution was determined as part of the December 31, 2011 actuarial valuation using the entry age cost method. The actuarial assumptions included are: (a) rate of inflation 2.75%, (b) 7.75% rate of return on investment of present and future assets, and (c) projected wage growth, excluding seniority/merit raises, of 3.75% per year. The actuarial value of OPERS assets is reported at fair market value. The unfunded actuarial liability is being amortized over a closed period of twenty years.


June 30, 2014 ___________

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Three-Year Trend Information

Fiscal Year Ending

AnnualPension Cost

(APC)

Percentage of APC

ContributedNet Pension Obligation

June 30, 2012 $7,987,952 100% 0June 30, 2013 7,864,575 100 0June 30, 2014 8,515,966 100 0

Funding Status and Funding ProgressAs of December 31, 2013, the most recent actuarial valuation date, the plan was 88 percent funded. The actuarial accrued liability was $306,548,858, and the actuarial value of the assets was $270,412,262, resulting in an unfunded actuarial accrued liability (UAAL) of $36,136,596. The covered payroll (annual payroll of active employees covered by the plan) was $30,015,440 and the ratio of the UAAL to the covered payroll was 120%.

The schedule of funding progress, presented as Required Supplementary Information (RSI) on page 47, presents multiyear trend information about whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

D. Postemployment Health Care Benefits

The County implemented GASB No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pension, in FY 2009. To comply with GASB No. 45, the County must account for other postemployment benefits (OPEB) using the accrual basis of accounting rather than a pay-as-you-go basis. Under accrual accounting, a liability must be recognized when employees earn OPEB rather than when the benefits are paid. To determine OPEB liabilities, the County must obtain an actuarial valuation every two years.

Plan DescriptionUntil they become eligible for Medicare, the County is required by ORS 243.303 to provide retirees continued group health insurance coverage for themselves and their qualified dependents at the same rates as active employees. Retirees must pay the entire premium in order to maintain coverage; the County does not directly contribute to the cost of premiums for retirees. However, premiums paid by retirees do not represent the full cost of providing health insurance to retirees because the County’s rates are determined based on claims experience for both active employees and retirees. Since retirees typically have higher medical claims than active employees, medical coverage would be more expensive for retirees in a separately rated health plan. The additional cost of allowing retirees to purchase health insurance at a blended rate is called an implicit rate subsidy and is required to be valued under GASB No. 45. The County treats this implicit rate subsidy as single-employer, defined benefit OPEB plan administered by the County only to satisfy the accounting and financial reporting requirements of GASB No. 45. These are not stand-alone plans and there are no separately issued financial statements.


June 30, 2014 ___________

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Funding Policy Retirees pay the entire cost of premiums at blended rates. The County’s only contribution is the implicit rate subsidy which continues to be financed on a pay-as-you-go basis. Contribution requirements are established and may be amended by the County’s Board of Commissioners in conjunction with various collective bargaining agreements.

Annual OPEB Cost and Net OPEB ObligationThe County’s annual OPEB cost is calculated based on the annual required contribution of the employer (ARC) determined by an actuary. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period of thirty years. The County’s OPEB costs, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal 2014 and the two preceding fiscal years were as follows:

Percentage Fiscal Annual of OPEB Net Year OPEB Cost OPEB

Ended Cost Contributed Obligation 2013-14 $517,672 60% $2,087,175 2012-13 499,521 57% 1,881,361 2011-12 936,789 43% 1,666,895

The annual required contribution and the change in the OPEB obligation for fiscal year 2014 are as follows:

FY2014 Annual required contribution (ARC) $509,611 Interest on net OPEB obligation 75,254 Amortization adjustment to ARC (67,193) Annual OPEB cost 517,672 Contributions made (implicit rate subsidy) (311,858) Change in net OPEB obligation 205,814 Net OPEB obligation, beginning of year 1,881,361 Net OPEB obligation, end of year $2,087,175

Funded Status and Funding ProgressAs of July 1, 2012, the most recent actuarial valuation date, the actuarially accrued liability was $5,154,302, all of which is unfunded because the County has not set aside any assets to pre-fund the OPEB based on the implicit rate subsidy. The annual payroll of active employees covered by the County’s healthcare plan was $33,065,963 and the ratio of the unfunded actuarially accrued liability (UAAL) to covered payroll was 16%.


June 30, 2014 ___________

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Actuarial Methods and AssumptionsActuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Calculations are based on the types of benefits provided at the time of the valuation and the pattern of cost-sharing between the employer and plan members to that point. Actuarial calculations reflect a long-term perspective, including techniques designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets.

For the July 1, 2012 actuarial valuation, the actuary used the projected unit credit actuarial cost method. Actuarial assumptions, included a discount rate of 4%, general inflation rate of 3%, projected salary increases of 3.5% per year, and a healthcare cost trend rate of 8% initially, reduced by decrements to an ultimate rate of 5% after 18 years. The UAAL is being amortized over an open period of 30 years as a level percentage of projected payrolls.

REQUIREDSUPPLEMENTARY INFORMATION

Schedule of Funding Progress for Oregon Public Employees Retirement System (OPERS)

And Postemployment Healthcare Benefits

Budget and Actual Schedules – Major Governmental Funds General Fund

Public Works Fund Public Safety Fund

Health and Social Services Fund Title III Fund

Notes to Budget and Actual Schedules - Major Governmental Funds

UnfundedActuarial Actuarial Actuarial Unfunded Actuarial LiabilityValuation Value of Accrued Actuarial Funded Covered as a Percentage

Date Assets Liability Liability Ratio Payroll of Covered Payroll

2009 $226,064,086 $295,167,317 $69,103,231 77% $30,664,936 225%

2011 228,167,624 308,521,151 80,353,527 74% 29,880,985 269%

2013 270,412,262 306,548,858 36,136,596 88% 30,015,440 120%

UnfundedActuarial Actuarial Actuarial Unfunded Actuarial LiabilityValuation Value of Accrued Actuarial Funded Covered as a Percentage

Date Assets Liability Liability Ratio Payroll of Covered Payroll7/1/2008 $0 $6,617,434 $6,617,434 0% $33,334,587 20%7/1/2010 0 7,890,162 7,890,162 0% 33,515,025 24%7/1/2012 0 5,154,302 5,154,302 0% 33,065,963 16%

Postemployment Healthcare Benefits

FOR OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (OPERS)AND POSTEMPLOYMENT HEALTHCARE BENEFITS

DOUGLAS COUNTY, OREGONSCHEDULE OF FUNDING PROGRESS

______June 30, 2014

Oregon Public Employees Retirement System (OPERS)

47

Variance withFinal Budget

PositiveOriginal Final Actual (Negative)

Revenues: Charges for services $4,653,420 $4,665,420 $4,615,718 ($49,702) Permits, licenses and fines 726,937 731,937 792,868 60,931 Intergovernmental: O & C funds 2,500,000 2,500,000 9,527,620 7,027,620 All other 4,061,086 4,382,054 3,724,190 (657,864) Interest 700,000 700,000 396,600 (303,400) Other 335,506 343,006 551,175 208,169 Total revenues 12,976,949 13,322,417 19,608,171 6,285,754

Expenditures: Board of Commissioners 532,476 532,476 485,251 47,225 Justices of the Peace: Glendale 161,254 161,254 149,812 11,442 Drain 167,471 167,471 158,037 9,434 Reedsport 170,100 175,100 172,904 2,196 Canyonville 250,221 250,221 219,794 30,427 Juvenile Department 2,735,805 2,910,005 2,837,033 72,972 County Clerk 690,368 690,368 647,142 43,226 Tax Assessment and Collection 2,376,494 2,376,494 2,120,347 256,147 Surveyor 413,693 413,693 393,999 19,694 Planning 1,312,686 1,312,686 1,263,833 48,853 County Counsel 339,296 339,296 324,963 14,333 Financial Services 993,249 993,249 926,802 66,447 Human Resources 521,115 521,115 520,605 510 Information Technology 1,028,842 1,028,842 973,182 55,660 Facilities 1,874,207 1,924,207 1,887,381 36,826 Parks Services 1,889,865 1,889,865 1,577,365 312,500 Nondepartmental 987,000 987,000 318,715 668,285 Commission on Children and Families 356,870 715,292 632,791 82,501 Building Department 920,980 920,980 817,667 103,313 District Attorney 1,695,532 1,695,532 1,628,520 67,012 Solid Waste Operations 3,545,336 3,545,336 3,339,256 206,080 Museum 400,541 416,341 413,607 2,734 Library 1,858,812 1,858,812 1,770,724 88,088 Contingency account 2,000,000 1,901,700 1,901,700

Total expenditures 27,222,213 27,727,335 23,579,730 4,147,605

Excess (deficiency) of revenues over (under) expenditures (14,245,264) (14,404,918) (3,971,559) 10,433,359Other financing sources (uses): Transfers in 1,739,273 1,739,273 1,717,974 (21,299) Transfers out (2,239,645) (2,259,645) (2,023,546) 236,099 Total other financing sources (uses) (500,372) (520,372) (305,572) 214,800

Net change in fund balance (14,745,636) (14,925,290) (4,277,131) 10,648,159

Fund balance, beginning 62,000,000 62,179,654 65,869,013 3,689,359

Fund balance, ending $47,254,364 $47,254,364 $61,591,882 $14,337,518

DOUGLAS COUNTY, OREGONGENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

Budgeted Amounts

for the year ended June 30, 2014__________

General Public Health and Culture and CapitalGovernment Safety Sanitation Welfare Recreation Outlay

$485,251

149,812158,037172,904219,794

2,832,279 $4,754629,416 17,726

2,117,871 2,476392,256 1,743

1,263,833324,963926,802520,605973,182

1,841,333 $19,602 26,446$1,346,490 230,875

318,715$632,791814,217 3,450

1,628,520$2,406,384 932,872

407,373 6,2341,754,215 16,509

$13,327,053 $3,075,528 $2,406,384 $19,602 $3,508,078 $1,243,085

Actual Expenditures by Function

48



Revenues: Charges for services $5,000 $5,000 $39,927 $34,927 Permits, licenses and fines 2,870 2,870 Intergovernmental: Federal forest receipts 554,760 554,760 5,913,814 5,359,054 State motor vehicle fees 7,917,113 7,917,113 7,345,297 (571,816) Other 1,223,281 1,223,281 426,342 (796,939) Assessments 20,000 20,000 42,656 22,656 Interest 1,020,000 1,020,000 477,953 (542,047) Other 33,600 33,600 45,571 11,971

Total revenues 10,773,754 10,773,754 14,294,430 3,520,676

Highways Capitaland Streets Outlay

Expenditures: Administration 501,160 501,160 484,538 16,622 $484,538 Engineering 7,468,026 7,868,026 2,279,128 5,588,898 1,495,057 $784,071 Road Operations and Maintenance 8,814,671 8,814,671 8,114,885 699,786 8,111,165 3,720 Contingency Account 300,000 300,000 300,000

Total expenditures 17,083,857 17,483,857 10,878,551 6,605,306 $10,090,760 $787,791

Excess (deficiency) of revenues over (under) expenditures (6,310,103) (6,710,103) 3,415,879 10,125,982

Other financing sources (uses): Transfer in 400,000 290,608 (109,392) Transfer out (6,075,658) (6,075,658) (5,222,115) 853,543 Note receivable collections 34,397 34,397 171,984 137,587 Total other financing sources (uses) (6,041,261) (5,641,261) (4,759,523) 881,738




DOUGLAS COUNTY, OREGONPUBLIC WORKS FUND


Function

Budget Amounts

for the year ended June 30, 2014_______

Actual Expenditures by

49



Revenues: Charges for services $1,727,200 $1,807,200 $2,167,279 $360,079 Permits, licenses and fines 337,900 337,900 345,796 7,896 Intergovernmental 3,638,347 3,929,747 4,346,467 416,720 Property taxes 8,500,000 8,500,000 8,943,433 443,433 Interest 12,000 12,000 5,874 (6,126) Other 242,275 242,275 219,378 (22,897)

Total revenues 14,457,722 14,829,122 16,028,227 1,199,105

Public CapitalSafety Outlay

Expenditures: Sheriff Enforcement 10,498,109 10,627,748 10,230,598 397,150 $10,074,350 $156,248 Sheriff Corrections 6,099,280 6,236,108 5,936,876 299,232 5,888,192 48,684 Work Crew 1,266,521 1,346,521 1,305,095 41,426 1,305,095 Douglas Interagency Narcotics Team 552,277 558,777 513,274 45,503 503,190 10,084 Communications 911 & Dispatch 2,003,066 2,003,066 1,832,398 170,668 1,832,398 Radio System 455,440 455,440 421,965 33,475 421,965

Total expenditures 20,874,693 21,227,660 20,240,206 987,454 $20,025,190 $215,016

Excess (deficiency) of revenues over (under) expenditures (6,416,971) (6,398,538) (4,211,979) 2,186,559

Other financing sources: Transfers in 6,285,658 6,285,658 4,955,551 (1,330,107)

Transfers out (15,000) (33,433) (25,933) 7,500

Net change in fund balance (146,313) (146,313) 717,639 863,952

Fund balance, beginning 442,161 442,161 1,185,587 743,426

Fund balance, ending $295,848 $295,848 $1,903,226 $1,607,378

Function

Budgeted Amounts


DOUGLAS COUNTY, OREGONPUBLIC SAFETY FUND


Actual Expenditures by

50



Revenues: Charges for services $431,785 $431,785 $598,760 $166,975 Permits, licenses and fines 222,570 222,570 223,065 495 Intergovernmental 15,583,345 16,348,746 14,692,106 (1,656,640) Interest 43,800 43,800 33,910 (9,890) Other 153,811 153,811 155,548 1,737

Total revenues 16,435,311 17,200,712 15,703,389 (1,497,323)

Health and CapitalWelfare Outlay

Expenditures: Administration 3,186,033 3,256,074 2,645,649 610,425 $2,602,654 $42,995 Senior and Veterans Services 1,300,315 1,776,195 1,284,258 491,937 1,281,160 3,098 Public Health 3,516,978 3,688,773 3,316,345 372,428 3,316,345 Mental Health and Disabilities Services 14,161,844 14,161,844 10,027,374 4,134,470 10,023,271 4,103 Transportation Services 1,256,664 1,504,028 1,254,194 249,834 1,254,194

Total expenditures 23,421,834 24,386,914 18,527,820 5,859,094 $18,477,624 $50,196

Excess (deficiency) of revenues over (under) expenditures (6,986,523) (7,186,202) (2,824,431) 4,361,771

Other financing sources (uses): Transfers in 1,398,852 1,417,285 1,374,479 (42,806) Transfers out (897,723) (897,723) (897,723)

Total other financing sources (uses) 501,129 519,562 476,756 (42,806)


Fund balance, beginning 6,485,394 6,666,640 6,831,043 164,403

Fund balance, ending -$ -$ $4,483,368 $4,483,368

_______

Actual Expendituresby Function

Budget Amounts

DOUGLAS COUNTY, OREGONHEALTH AND SOCIAL SERVICES FUND



51



Revenues:

Intergovernmental $5,806,520 $5,806,520 $1,693,225 ($4,113,295)

Interest 60,000 60,000 58,712 (1,288)

Total revenues 5,866,520 5,866,520 1,751,937 (4,114,583)

Expenditures:

General Government: Materials and Services 8,145,140 7,745,140 2,056,936 5,688,204 Capital Outlay 100,000 100,000 100,000


Excess (deficiency) of revenues over (under) expenditures (2,378,620) (1,978,620) (304,999) 1,673,621

Other financing sources (uses): Transfers out (578,050) (978,050) (535,795) 442,255

Net change in fund balance (2,956,670) (2,956,670) (840,794) 2,115,876


Fund balance, ending -$ -$ $2,942,988 $2,942,988

Budgeted Amounts


DOUGLAS COUNTY, OREGONTITLE III FUND


52

General Public WorksFund Fund

Net change in fund balances - budgetary basis ($4,277,131) ($1,343,644)

The change in fair value of investments is not recorded on a budgetary basis since investments are held to maturity 218,281 248,758

Loan receivable collections treated as other financing source on budgetary basis (171,984)

Deposit expensed on budgetary basis (195,765)

Change in fund balance for the Law Library Fund on a budgetary basis is included in General Fund on the GAAP basis (8,551)

Change in fund balance for the Dog Control Fund on a budgetary basis is included in General Fund on the GAAP basis 14,659

Net change in fund balances - GAAP basis ($4,248,507) ($1,266,870)

A reconciliation of the June 30, 2014 fund balances on the budgetary basis to ending fund balances on the GAAP

General Public WorksFund Fund

Fund balances, budgetary basis, June 30, 2014 $61,591,882 $73,161,080

Inventories treated as expenditures on budgetary basis 1,762,752

Investments adjusted to fair value 51,020 60,900

Fund balance for the Law Library Fund on a budgetary basis is included in General Fund on the GAAP basis 10,302

Fund balance for the Dog Control Fund on a budgetary basis is included in General Fund on the GAAP basis 24,729

Fund balances, GAAP basis, June 30, 2014 $61,677,933 $74,984,732

basis is as follows:

______

The County accounts for certain transactions on the budgetary basis, which differs with generally accepted accounting principles (GAAP). The following is a reconciliation of the differences between the net change in fund balances on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds on the GAAP basis and the net change in fund balances on the budgetary basis:

DOUGLAS COUNTY, OREGONNOTES TO BUDGET AND ACTUAL SCHEDULES

MAJOR GOVERNMENTAL FUNDSJune 30, 2014

53

OTHERSUPPLEMENTARY INFORMATION

(Combining and Individual FundStatements and Schedules)

NONMAJOR GOVERNMENTAL FUNDS County Forest Management FundThis fund was established to receive monies from the sale of timber from County-owned lands. Expenditures are for reforestation and management of County-owned forestlands as well as Board of Commissioner directed uses.

County Fair Board Fund This fund was established as required by ORS 565.325. This fund records all transactions relating to the operation of the county fair. The major revenue sources are admissions, rentals and concessions.

Salmon Habitat Improvement FundThis fund accounts for revenues dedicated to the preservation of the salmon population in the North Umpqua River. The major source of revenue is from the Winchester Dam Hydropower Project.

County Schools FundThis fund was established under ORS 328.005 to account for forest reserve yield revenue from the State of Oregon that is apportioned to the County school districts.

Water Development Fund This fund accounts for the development of water resources and operations of existing and future water improvement projects.

Drug Abuse Prevention FundThis fund receives monies provided for in ORS 430.380 that must be used for alcohol and drug abuse prevention, early intervention and drug treatment.

Industrial Development FundThis fund was established to account for the revenue and expenditures related to efforts made by the County to attract new industry to the County. Primary sources of revenue are from the state lottery for uses provided in ORS 461.540, interest and principal collected from economic development loans and the sale of lands developed to attract industry.

4-H Extension Service DistrictThe 4-H Extension Service District is a blended component unit of Douglas County. This fund accounts for moneys received from the operation of the Douglas County 4-H Extension Service. Property taxes are the major source of revenue to this fund. Expenditures are for the operations and administration of the District.

Capital Projects Fund This fund was established to account for the acquisition of capital assets and the construction of County projects.

Dog Control FundAll fees and fines derived from dog licensing, animal control fines, and rabies fees and fines are required to be deposited in a Dog Control Fund pursuant to ORS 609.110. Expenditures are restricted to those set forth in ORS Chapter 609. Currently, inflows of this fund are from statutory sources as well as transfers from other funds. Under GASB No. 54, the transfers from other funds disqualify this fund from being a separate special revenue fund. Therefore, this fund’s activity is reported in General Fund for GAAP (generally accepted accounting principles) purposes.

Law Library Fund With the repeal of ORS 21.350, under GASB No. 54 this fund no longer qualifies as a special revenue fund. Therefore, this fund’s activity is reported in General Fund for GAAP (generally accepted accounting principles) purposes.

County County SalmonForest Fair Habitat County Water

Management Board Improvement Schools Development

ASSETSCash and investments $4,640,548 $16,309 $10,386 $32 $1,982,007Receivables, net 53,232 52,048 19,527 25,484 22,161Due from other funds 560Deposits and prepaid items 429 7,462 879Interfund loan receivable 2,361,529

Total assets $7,055,738 $76,379 $29,913 $25,516 $2,005,047

LIABILITIES Accounts payable $4,216 $5,292 Accrued payroll, withholdings and benefit 10,809 18,332 $11,978 Due to other funds 97,493 15,828 $19,527 44,432

Total liabilities 112,518 39,452 19,527 56,410

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - land sales contract Unavailable revenue - property taxes

Total deferred inflows of resources - - - - -

Fund Balances: Nonspendable 429 7,462 879 Restricted 29,465 $25,516 Committed 6,942,791 10,386 1,947,758 Assigned

Total fund balances 6,943,220 36,927 10,386 25,516 1,948,637

Total liabilities, deferred inflow of resources and fund balances $7,055,738 $76,379 $29,913 $25,516 $2,005,047

Special Revenue Funds

COMBINING BALANCE SHEETDOUGLAS COUNTY, OREGON

NONMAJOR GOVERNMENTAL FUNDSJune 30, 2014

______

Drug Industrial 4-H Extension Capital NonmajorAbuse Development Service Projects Governmental

Prevention Fund District Fund Funds

$3,247,081 $708,702 $2,657,893 $13,262,958$24,739 2,303,797 53,300 2,554,288

500 1,0608,770

2,361,529

$24,739 $5,550,878 $762,002 $2,658,393 $18,188,605

$24,739 $187,735 $30,513 $252,495509 41,628

$2,500 267,235 447,015

24,739 2,500 187,735 298,257 741,138

886,126 886,12645,640 45,640

- 886,126 45,640 - 931,766

8,770528,627 583,608

4,662,252 13,563,1872,360,136 2,360,136

- 4,662,252 528,627 2,360,136 16,515,701

$24,739 $5,550,878 $762,002 $2,658,393 $18,188,605


54

County County SalmonLaw Forest Fair Habitat County

Library Management Board Improvement Schools

Revenues: Charges for services $1,020,726 Intergovernmental 50,964 $19,527 $2,118,255 Property taxes Interest $31,772 8 61 753 Other 895,803 660,784 495

Total revenues 927,575 1,732,482 19,588 2,119,503

Expenditures: Current: General Government 586,759 19,527 Health and Welfare Culture and Recreation 1,837,815 Conservation Education 2,114,652 Capital outlay 1,200,415 Debt service: Principal Interest

Total expenditures 1,787,174 1,837,815 19,527 2,114,652

Excess (deficiency) of revenues over (under) expenditures (859,599) (105,333) 61 4,851

Other financing sources (uses): Transfers in 60,000 75,000 Transfers out (32,500)

Total other financing sources (uses) - 27,500 75,000 - -

Net change in fund balances (832,099) (30,333) 61 4,851

Fund balances, beginning as previously stated $18,853 7,775,319 67,260 10,325 20,665Adjust for GASB #54 reclassification (18,853)Fund balances, beginning as restated - 7,775,319 67,260 10,325 20,665

Fund balances, ending -$ $6,943,220 $36,927 $10,386 $25,516


DOUGLAS COUNTY, OREGONCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDSFor the Year Ended June 30, 2014______

Drug Industrial 4-H Extension Capital NonmajorWater Abuse Development Service Projects Governmental

Development Prevention Fund District Fund Funds

$603,810 $1,624,53689,512 $95,981 $348,348 $756 2,723,343

446,105 446,10513,304 60 57,248 4,160 $20,437 127,803

50 7,494 333,260 1,897,886

706,676 96,041 413,090 451,021 353,697 6,819,673

171,324 367,469 1,145,07996,041 96,041

403,752 2,241,567874,024 874,024

2,114,652842,189 2,042,604

103,001 103,00154,122 54,122

874,024 96,041 328,447 403,752 1,209,658 8,671,090

(167,348) 84,643 47,269 (855,961) (1,851,417)

135,000(41,000) (73,500)

(41,000) - - - - 61,500

(208,348) 84,643 47,269 (855,961) (1,789,917)

2,156,985 4,577,609 481,358 3,216,097 18,324,471(18,853)

2,156,985 - 4,577,609 481,358 3,216,097 18,305,618

$1,948,637 -$ $4,662,252 $528,627 $2,360,136 $16,515,701


55



Revenues: Interest $34,419 $34,419 $31,772 ($2,647) Other: County timber and land sales 733,900 733,900 817,792 83,892 Other miscellaneous 32,353 32,353 78,011 45,658

Total revenues 800,672 800,672 927,575 126,903

Expenditures: General Government: Personal services 422,757 422,757 417,877 4,880 Materials and services 271,400 271,400 168,882 102,518 Capital outlay 1,009,530 1,309,530 1,200,415 109,115 Contingency account 10,000 10,000 10,000

Total expenditures 1,713,687 2,013,687 1,787,174 226,513

Excess (deficiency) of revenues over (under) expenditures (913,015) (1,213,015) (859,599) 353,416

Other financing sources (uses): Transfers in 60,000 60,000 60,000 Transfers out (32,500) (32,500) (32,500) Notes receivable collections 612 612 7,674 7,062 Repayment of interfund loan 2,361,529 2,361,529 2,361,529 Interfund loan (2,361,529) (2,361,529) (2,361,529) Additions to notes receivable (50,000) (50,000) 50,000

Total other financing sources (uses) (21,888) (21,888) 35,174 57,062

Net change in fund balance (934,903) (1,234,903) (824,425) 410,478



Total from above: Net change in fund balance ($824,425)

Notes receivable collections (7,674)Repayment of interfund loan (2,361,529)Interfund loan 2,361,529

Net change in fund balance in Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ($832,099)

Budgeted Amounts


DOUGLAS COUNTY, OREGONCOUNTY FOREST MANAGEMENT FUND


56



Revenues: Charges for services $1,114,850 $1,114,850 $1,020,726 ($94,124) Intergovernmental 49,673 49,673 50,964 1,291 Interest 100 100 8 (92) Other 702,377 702,377 660,784 (41,593)

Total revenues 1,867,000 1,867,000 1,732,482 (134,518)

Expenditures: Culture and Recreation: Personal services 818,833 817,033 746,756 70,277 Materials and services 1,123,167 1,159,647 1,091,059 68,588


Excess (deficiency) of revenues over (under) expenditures (75,000) (109,680) (105,333) 4,347

Other financing sources (uses): Transfers in 75,000 95,000 75,000 20,000

Total other financing sources (uses) 75,000 95,000 75,000 20,000

Net change in fund balance - (14,680) (30,333) (15,653)

Fund balance, beginning - 14,680 67,260 52,580

Fund balance, ending - $ - $ $36,927 $36,927


Budgeted Amounts

DOUGLAS COUNTY, OREGONCOUNTY FAIR BOARD FUND


57



Revenues: Intergovernmental $50,000 $50,000 $19,527 ($30,473) Interest 200 200 61 (139)

Total revenues 50,200 50,200 19,588 (30,612)

Expenditures: General Government: Materials and services 50,200 50,200 19,527 30,673

Net change in fund balance - - 61 61

Fund balance, beginning - - 10,325 10,325


DOUGLAS COUNTY, OREGONSALMON HABITAT IMPROVEMENT FUND



Budgeted Amounts

______

58



Revenues: Intergovernmental: Federal forest receipts $184,920 $2,184,920 $1,971,271 ($213,649) Other 320,000 320,000 146,984 (173,016) Interest 1,000 1,000 753 (247) Other 1,000 1,000 495 (505)

Total revenues 506,920 2,506,920 2,119,503 (387,417)

Expenditures: Education: Materials and services 506,920 2,506,920 2,114,652 392,268

Net change in fund balance - - 4,851 4,851



Budgeted Amounts

DOUGLAS COUNTY, OREGONCOUNTY SCHOOLS FUND



59


Positive Original Final Actual (Negative)

Revenues: Charges for services $720,000 $720,000 $603,810 ($116,190) Intergovernmental 113,000 113,000 89,512 (23,488) Interest 12,000 12,000 13,304 1,304 Other 50 50

Total revenues 845,000 845,000 706,676 (138,324)

CapitalConservation Outlay

Expenditures: Galesville operations 841,502 841,502 800,666 40,836 $800,666 Watermaster 74,391 74,391 73,358 1,033 73,358 Contingency account 100,000 100,000 100,000

Total expenditures 1,015,893 1,015,893 874,024 141,869 $874,024 -$


Other financing sources (uses): Transfers out (41,000) (41,000) (41,000)

Net change in fund balance (211,893) (211,893) (208,348) 3,545


Fund balance, ending $1,088,107 $1,088,107 $1,948,637 $860,530

by function


Budgeted Amounts

DOUGLAS COUNTY, OREGONWATER DEVELOPMENT FUND


Actual Expenditures

60



Revenues: Intergovernmental $100,000 $100,000 $95,981 ($4,019) Interest 60 60

Total revenues 100,000 100,000 96,041 (3,959)

Expenditures: Health and Welfare: Materials and services 100,000 100,000 96,041 3,959

Total expenditures 100,000 100,000 96,041 3,959

Net change in fund balance - - - -

Fund balance, beginning - - - -

Fund balance, ending - $ - $ - $ - $

Budgeted Amounts


DOUGLAS COUNTY, OREGONDRUG ABUSE PREVENTION FUND


61



Revenues: Intergovernmental $370,000 $370,000 $348,348 ($21,652) Interest 35,292 35,292 57,248 21,956 Other 7,494 7,494

Total revenues 405,292 405,292 413,090 7,798

Expenditures: General Government: Materials and services 190,000 190,000 171,324 18,676 Capital outlay 989,000 989,000 989,000 Debt service: Principal 103,002 103,002 103,001 1 Interest 54,122 54,122 54,122

Total expenditures 1,336,124 1,336,124 328,447 1,007,677

Excess (deficiency) of revenues over (under) expenditures (930,832) (930,832) 84,643 1,015,475

Other financing sources (uses): Notes receivable collections 23,893 23,893 40,172 16,279 Additions to notes receivable (100,000) (100,000) 100,000


Net change in fund balance (1,006,939) (1,006,939) 124,815 1,131,754



Total from above: Net change in fund balance $124,815

Notes receivable collections (40,172)

Net change in fund balance in Combining Statement of Revenues, Expenditures, and Changes in Fund Balances $84,643

DOUGLAS COUNTY, OREGONINDUSTRIAL DEVELOPMENT FUND

Budgeted Amounts



62



Revenues: Intergovernmental $1,000 $1,000 $756 ($244) Property taxes 458,061 458,061 446,105 (11,956) Interest 4,000 4,000 4,160 160

Total revenues 463,061 463,061 451,021 (12,040)

Expenditures: Culture and Recreation: Materials and services 523,834 523,834 403,752 120,082 Capital outlay 500 500 500 Contingency account 26,192 26,192 26,192


Excess (deficiency) of revenues over (under) expenditures (87,465) (87,465) 47,269 134,734

Reserve for future expenditures (200,000) (200,000) 200,000


Fund balance, beginning 471,207 471,207 481,358 10,151

Fund balance, ending $183,742 $183,742 $528,627 $344,885


Budgeted Amounts

DOUGLAS COUNTY, OREGON 4H EXTENSION SERVICE DISTRICT


63



Revenues: Interest $35,000 $35,000 $20,437 ($14,563) Other 333,260 333,260

Total revenues 35,000 35,000 353,697 318,697

Expenditures: General Government:

Personal services 10,000 45,000 26,767 18,233Material and services 395,000 695,000 340,702 354,298

Capital Outlay 2,630,000 2,295,000 842,189 1,452,811




Fund balance, ending -$ - $ $2,360,136 $2,360,136

Budgeted Amounts


DOUGLAS COUNTY, OREGONCAPITAL PROJECTS FUND


64



Revenues: Charges for services $530 $530 Permits, licenses and fines $95,000 $95,000 91,667 (3,333) Interest 150 150 Other 12 12

Total revenues 95,000 95,000 92,359 (2,641)

Expenditures: General Government: Dog Control Operations 279,339 279,339 263,651 15,688 Predatory Animal Control 136,454 136,454 119,049 17,405



Other financing sources: Transfers in 320,793 320,793 305,000 (15,793)

Net change in fund balance - - 14,659 14,659


Fund balance, ending - $ - $ 24,729 $24,729

Adjust for GASB #54 reclassification as part of General Fund for GAAP purposes (24,729)

Ending Fund Balance, GAAP basis -$

Budgeted Amounts


DOUGLAS COUNTY, OREGONDOG CONTROL FUND


65



Revenues: Charges for services $1,050 $1,050 $428 ($622) Permits, licenses and fines 85,200 85,200 90,443 5,243 Interest 750 750 133 (617) Other 750 750 50 (700)

Total revenues 87,750 87,750 91,054 3,304

Expenditures: General Government: Personal Services 47,549 51,549 50,254 1,295 Materials and services 48,320 50,320 49,351 969



Fund balance, beginning 9,000 15,000 18,853 3,853

Fund balance, ending $881 $881 $10,302 $9,421

Adjust for GASB #54 reclassification as part of General Fund for GAAP purposes (10,302)

Ending Fund Balance, GAAP basis -$

DOUGLAS COUNTY, OREGONLAW LIBRARY FUND



Budgeted Amounts

66

ENTERPRISE FUNDS

Major Fund

Salmon Harbor Fund This fund is used to account for the operations of the R.V. Park, the camping area, and the boat launching, moorage and fueling facilities located at the Salmon Harbor Marina.



Revenues: Charges for services $1,176,102 $1,176,102 $1,292,201 $116,099 Intergovernmental 149,017 149,017 198,171 49,154 Interest 6,136 6,136 4,710 (1,426) Other 532,132 532,132 400,056 (132,076)

Total revenues 1,863,387 1,863,387 1,895,138 31,751

Expenditures: Personal services 706,851 706,851 624,733 82,118 Materials and services 1,206,218 1,206,218 1,027,083 179,135 Capital outlay 34,000 34,000 32,170 1,830


Excess (deficiency) of revenues over (under) expenditures (83,682) (83,682) 211,152 294,834

Other financing sources (uses): Interfund loan proceeds 2,361,529 2,361,529 2,361,529 Repayment of interfund loan (2,361,529) (2,361,529) (2,361,529)

Total other financing sources (uses) - - - -


Total fund balance-beginning 83,682 83,682 577,969 494,287

Total fund balance-ending - $ - $ $789,121 $789,121

Total from above: Net change in fund balance $211,152Add (Deduct): Capitalized expenditures, net 24,000 Repayment of interfund loan 2,361,529 Change in inventories 16,847 Depreciation (259,658) Interfund loan proceeds (2,361,529)

Change in net position as reported in the Statement of Revenues, Expenses and Changes in Fund Net Position ($7,659)

Budgeted Amounts


DOUGLAS COUNTY, OREGONSALMON HARBOR FUND


67

INTERNAL SERVICE FUNDS

Employee Benefit Trust Fund This fund is used to account for the accumulation and allocation of costs associated with health care, general liability and workers’ compensation insurance.

Fleet Management FundThis fund was established to operate a motor pool for the common use of County departments.

EmployeeBenefit FleetTrust Management Total

ASSETSCurrent assets: Cash and investments $11,090,972 $928,275 $12,019,247 Receivables 23,690 51,233 74,923 Due from other funds 4,444 307,140 311,584 Inventories 324,845 324,845 Deposits and prepaid expenses 59,224 59,224

Total current assets 11,178,330 1,611,493 12,789,823

Capital assets: Furniture and equipment 211,036 211,036 Vehicles and heavy equipment 3,566,058 3,566,058 Less accumulated depreciation (2,895,543) (2,895,543)

Total capital assets (net of accumulated depreciation) - 881,551 881,551

Total assets 11,178,330 2,493,044 13,671,374

LIABILITIES

Current liabilities: Accrued payroll, withholdings and benefits 1,990,768 22,670 2,013,438 Accrued compensated absences 43,481 43,481 Accrued claims liability 600,000 600,000 Due to other funds 172,244 56,423 228,667

Total current liabilities 2,763,012 122,574 2,885,586

Noncurrent liabilities: Accrued claims liability 1,150,000 1,150,000

Total liabilities 3,913,012 122,574 4,035,586

NET POSITION

Invested in capital assets 881,551 881,551Unrestricted 7,265,318 1,488,919 8,754,237

Total net position $7,265,318 $2,370,470 $9,635,788

DOUGLAS COUNTY, OREGONINTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION

______June 30, 2014

Governmental Activities - Internal Service Funds

68


Operating revenues: Interdepartmental charges $9,564,696 $3,223,785 $12,788,481 Other 904,490 206,342 1,110,832

Total operating revenues 10,469,186 3,430,127 13,899,313

Operating expenses: Salaries and wages 42,270 509,499 551,769 Payroll taxes and benefits 350,872 350,872 Premiums and operating expenses 10,999,689 10,999,689 Operating supplies and expenses 2,211,456 2,211,456 Utilities 54,131 54,131 Depreciation 297,633 297,633

Total operating expenses 11,041,959 3,423,591 14,465,550

Operating income (loss) (572,773) 6,536 (566,237)

Nonoperating revenues and expenses: Interest income 67,239 6,727 73,966 Gain (loss) on sale of capital assets (210,625) (210,625)

Total nonoperating revenues and expenses 67,239 (203,898) (136,659)

Change in net position (505,534) (197,362) (702,896)

Total net position - beginning 7,770,852 2,567,832 10,338,684

Total net position - ending $7,265,318 $2,370,470 $9,635,788




COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

____

69


Cash flow from operating activities: Receipts from interfund services provided $10,447,811 $3,143,611 $13,591,422 Payments to suppliers and contractors (10,425,500) (2,244,590) (12,670,090) Payments to employees 458,776 (859,449) (400,673) Other operating receipts 206,342 206,342 Net cash provided by (used in) operating activities 481,087 245,914 727,001

Cash flows from capital and related financing activities: Acquisition of capital assets (508,636) (508,636) Net cash provided by (used in) capital and related financing activities - (508,636) (508,636)

Cash flows from investing activities: Interest received 67,239 6,727 73,966

Net increase (decrease) in cash and cash equivalents 548,326 (255,995) 292,331

Cash and cash equivalents, beginning 10,542,646 1,184,270 11,726,916

Cash and cash equivalents, ending $11,090,972 $928,275 $12,019,247

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) ($572,773) $6,536 ($566,237) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 297,633 297,633 (Increase) decrease in: Accounts receivable (21,169) (14,364) (35,533) Prepaid expenses and deposits (3,322) (3,322) Inventories (17,988) (17,988) Interfund receivables (206) (65,810) (66,016) Increase (decrease) in: Accounts payable (4,688) (4,688) Accrued payroll, withholdings and benefits 501,046 4,410 505,456 Accrued compensated absences (3,488) (3,488) Accrued claims liability 500,000 500,000 Interfund payables 82,199 38,985 121,184

Total adjustments 1,053,860 239,378 1,293,238

Net cash provided by (used in) operating activities $481,087 $245,914 $727,001

Noncash investing, capital and financing activities: Book value of capital assets disposed $210,625 $210,625


______


COMBINING STATEMENT OF CASH FLOWSfor the year ended June 30, 2014

70



Revenues: Interdepartmental charges $10,407,268 $10,407,268 $9,564,696 ($842,572) Interest 79,000 79,000 67,239 (11,761) Other 1,560,000 1,560,000 904,490 (655,510)

Total revenues 12,046,268 12,046,268 10,536,425 (1,509,843)

Expenditures: Personal services 47,986 47,986 42,270 5,716 Materials and services 14,105,000 14,105,000 10,999,689 3,105,311





DOUGLAS COUNTY, OREGONEMPLOYEE BENEFIT TRUST FUND

SCHEDULE OF REVENUES AND EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL

Budgeted Amounts


71



Revenues: Interdepartmental charges $3,529,000 $3,529,000 $3,223,785 ($305,215) Interest 13,000 13,000 6,727 (6,273) Other 197,500 197,500 206,342 8,842

Total revenues 3,739,500 3,739,500 3,436,854 (302,646)

Expenditures: Personal services 884,135 884,135 860,371 23,764 Materials and services 2,499,150 2,499,150 2,283,575 215,575 Capital outlay 502,500 522,500 508,636 13,864 Contingency account 200,000 200,000 200,000




Fund balance, ending $803,715 $803,715 $1,164,074 $360,359

Total from above: Net change in fund balance ($215,728) Capitalized expenditures 508,636 Depreciation (297,633) Capital asset disposals (210,625) Change in inventories 17,988

Change in net position as reported in the Combining Statement of Revenues, Expenses and Changes in Fund Net Position ($197,362)

Budgeted Amounts

DOUGLAS COUNTY, OREGONFLEET MANAGEMENT FUND

SCHEDULE OF REVENUES AND EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL


72

AGENCY FUND This fund is used to account for the County’s collection and turnover of property taxes to all other taxing districts within Douglas County, Oregon and for other miscellaneous clearing accounts held by the Treasurer.

Balance BalanceJune 30, 2013 Additions Deductions June 30, 2014

Assets: Equity in pooled cash and investments $1,122,980 $96,576,887 $96,215,094 $1,484,773 Property taxes receivable 9,656,469 80,697,701 81,150,362 9,203,808 Accrued interest receivable 73,315 105,961 158,936 20,340

Total assets $10,852,764 $177,380,549 $177,524,392 $10,708,921

Liabilities: Due to other governmental units $10,852,764 $177,380,549 $177,524,392 $10,708,921

AGENCY FUNDfor the year ended June 30, 2014

______

DOUGLAS COUNTY, OREGONSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES

73

CAPITAL ASSETS USED IN THE OPERATION OF

GOVERNMENTAL FUNDS

Governmental funds capital assets: Land and right of way $11,894,136 Buildings and improvements 43,284,051 Furniture and equipment 15,526,432 Vehicles and heavy equipment 19,471,492 Dam structures and improvements 28,221,320 Infrastructure 358,148,897 Construction in progress 5,620,214

Total governmental funds capital assets $482,166,542

Investments in governmental funds capital assets by source: General fund $41,630,499 Special revenue funds 392,925,088 Capital projects funds 30,278,233 Donations 17,332,722

Total governmental funds capital assets $482,166,542

This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capitalassets reported in internal service funds are excluded from the above amounts. Generally, the capital assetsof internal service funds are included as governmental activities in the statement of net position.

_____

DOUGLAS COUNTY, OREGONCAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

SCHEDULE BY SOURCEJune 30, 2014

74

Structures Buildings Furniture Vehicles Constructionand and and and Heavy in

Function and Activity Land Improvements Improvements Equipment Equipment Infrastructure Progress Total

General Government $3,160,872 $19,829,257 $1,367,446 $96,681 $894,177 $130,229 $25,478,662

Public Safety 2,162,220 11,138,032 855,622 14,155,874

Highways and Streets 624,854 1,900,563 1,507,296 12,276,298 346,599,363 174,371 363,082,745

Sanitation 1,299,430 343,339 5,701,395 10,655,357 17,999,521

Health and Welfare 467,544 3,893,883 660,630 21,178 5,043,235

Culture and Recreation 1,362,799 15,498,128 389,236 520,318 701,407 18,471,888

Conservation 4,978,637 $28,221,320 120,453 4,614,207 37,934,617

Total governmental funds capital assets $11,894,136 $28,221,320 $43,284,051 $15,526,432 $19,471,492 $358,148,897 $5,620,214 $482,166,542

This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal servicefunds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in thestatement of net position.

________


CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

SCHEDULE BY FUNCTION AND ACTIVITYJune 30, 2014

75

Governmental GovernmentalFunds Capital Additions Deletions Funds Capital

Assets and and AssetsFunction and Activity June 30, 2013 Transfers Transfers June 30, 2014

General Government $24,141,024 $1,366,872 $29,234 $25,478,662

Public Safety 14,105,503 403,143 352,772 14,155,874

Highways and Streets 350,139,529 13,996,595 1,053,379 363,082,745

Sanitation 16,877,099 1,481,799 359,377 17,999,521

Health and Welfare 5,910,959 93,064 960,788 5,043,235

Culture and Recreation 17,170,754 1,364,064 62,930 18,471,888

Conservation 38,242,886 8,230 316,499 37,934,617

Total governmental funds capital assets $466,587,754 $18,713,767 $3,134,979 $482,166,542

This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.

_____

DOUGLAS COUNTY, OREGONCAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITYfor the year ended June 30, 2014

76

OTHER FINANCIAL SCHEDULES

The County is required by State law to disclose the financial transactions of elected officials. This subsection includes a schedule of cash receipts and turnovers for the County Clerk, Sheriff, Surveyor, Justices of the Peace, District Attorney and Assessor’s Office.

Other financial schedules in this subsection are property tax transactions, property taxes receivable and property tax collections schedules.

Sheriff -County Civil and County District CountyClerk Criminal Surveyor Canyonville Reedsport Drain Glendale Attorney Assessor Total

Cash, July 1, 2013 $1,774 $19,815 $373 $54,986 $33,316 $4,968 $13,291 $2,722 $50 $131,295

Receipts 1,057,661 5,123,378 160,675 802,224 382,037 120,927 123,073 286,766 13,008 $8,069,749

Turnovers:

County Treasurer 1,055,946 4,756,916 160,264 466,808 173,175 77,271 64,769 288,751 13,008 $7,056,908

Others 349,804 312,272 196,339 36,722 56,891 $952,028

Total turnovers 1,055,946 5,106,720 160,264 779,080 369,514 113,993 121,660 288,751 13,008 8,008,936

Cash, June 30, 2014 $3,489 $36,473 $784 $78,130 $45,839 $11,902 $14,704 $737 $50 $192,108

DOUGLAS COUNTY, OREGONSCHEDULE OF CASH RECEIPTS AND TURNOVERS - ELECTED OFFICIALS

June 30, 2014______

Justice of the Peace

77

Taxes Current Levy Deduct Corrections TaxesReceivable As Extended Discounts and Deduct Cash Receivable

Fiscal Year June 30, 2013 By Assessor Allowed Adjustments Collections June 30, 2014

2014 $95,031,034 $2,332,558 ($257,661) $88,089,779 $4,351,036

2013 $4,783,331 (220,530) 1,988,559 2,574,2422012 2,750,243 (34,666) 945,333 1,770,2442011 1,843,603 (24,709) 917,739 901,1552010 925,075 (26,629) 553,691 344,7552009 193,431 (3,883) 70,170 119,3782008 90,609 (2,546) 39,952 48,111

2007 & prior 138,079 (3,963) 16,652 117,464

10,724,371 (316,926) 4,532,096 5,875,349

$10,724,371 $95,031,034 $2,332,558 ($574,587) $92,621,875 $10,226,385

Summary by fund and fund type: Special Revenue Funds: Public Safety Fund $8,967,387 $974,214 4-H Extension Service District 447,326 48,363 Agency Funds 83,207,162 9,203,808

$92,621,875 $10,226,385

DOUGLAS COUNTY, OREGONSCHEDULE OF PROPERTY TAX TRANSACTIONS AND OUTSTANDING BALANCES

for the year ended June 30, 2014______

78

Fiscal Year Public Safety4-H Extension Service District Agency Total

2014 $416,739 $20,865 $3,913,432 $4,351,0362013 246,491 12,395 2,315,356 2,574,2422012 166,820 8,440 1,594,984 1,770,2442011 84,523 4,274 812,358 901,1552010 32,411 1,774 310,570 344,7552009 11,261 615 107,502 119,3782008 4,621 43,490 48,111

2007 & prior 11,348 106,116 117,464

$974,214 $48,363 $9,203,808 $10,226,385

DOUGLAS COUNTY, OREGONSCHEDULE OF PROPERTY TAXES RECEIVABLE BY LEVY YEAR BY FUND

for the year ended June 30, 2014_____

79

Public4-H Extension

ServiceFiscal Year Safety District Agency Total

2014 $8,439,672 $422,446 $79,227,661 $88,089,7792013 205,475 10,025 1,773,059 1,988,5592012 109,001 5,172 831,160 945,3332011 116,622 5,387 795,730 917,7392010 76,173 3,771 473,747 553,6912009 10,558 525 59,087 70,1702008 6,724 33,228 39,952

2007 & prior 3,162 13,490 16,652

$8,967,387 $447,326 $83,207,162 $92,621,875

SCHEDULE OF PROPERTY TAX COLLECTIONS BY LEVY YEAR BY FUNDfor the year ended June 30, 2014

_____


80

STATISTICAL SECTION

This part of Douglas County’s comprehensive annual finance 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 81-85These schedules contain trend information to help the reader understand

how the County’s financial performance and well-being have changed over time.

Revenue Capacity 86-89These schedules contain information to help the reader assess the County’s

most significant local revenue source, the property tax.

Debt Capacity 90-92 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 93-94 These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place.

Operating Information 95-97 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.

2005 2006 2007 2008Governmental activities

Invested in capital assets $201,416,885 $201,914,503 $206,299,495 $208,319,872

Restricted 101,327,287 96,447,581 87,599,787 85,314,402

Unrestricted 55,371,500 55,941,820 58,919,553 65,331,979

Total governmental activities net position $358,115,672 $354,303,904 $352,818,835 $358,966,253

Business-type activities


Unrestricted (deficit) (1,294,535) (1,173,162) (1,089,760) (1,124,938)

Total business-type activities net position $4,717,796 $4,553,426 $4,294,746 $4,379,858

Primary government


Restricted 101,327,287 96,447,581 87,599,787 85,314,402

Unrestricted 54,076,965 54,768,658 57,829,793 64,207,041

Total primary government net position $362,833,468 $358,857,330 $357,113,581 $363,346,111

Note: The County implemented GASB No. 63 Financial Reporting of Deferred Outflows of Resources, Deferred

GASB No. 63 "Net Position" was reported as "Net Assets".

Inflows of Resources, and Net Position in fiscal year 2013. Prior to the implementation of

Fiscal Year

DOUGLAS COUNTY, OREGONNET POSITION BY COMPONENT

Last Ten Fiscal Years(accrual basis of accounting)

______

2009 2010 2011 2012 2013 2014

$200,633,936 $190,935,328 $181,109,374 $171,594,324 $163,802,395 $168,812,389

94,794,100 94,067,399 95,615,875 91,379,206 86,082,254 82,072,417

72,281,907 79,848,247 87,028,840 78,965,353 78,314,115 71,323,697

$367,709,943 $364,850,974 $363,754,089 $341,938,883 $328,198,764 $322,208,503

$4,870,613 $5,013,888 $5,377,687 $5,133,883 $5,096,974 $4,861,316

(1,488,233) (1,449,374) (1,600,925) (1,589,858) (1,801,521) (1,593,468)

$3,382,380 $3,564,514 $3,776,762 $3,544,025 $3,295,453 $3,267,848

$205,504,549 $195,949,216 $186,487,061 $176,728,207 $168,899,369 $173,673,705

94,794,100 94,067,399 95,615,875 91,379,206 86,082,254 82,072,417

70,793,674 78,398,873 85,427,915 77,375,495 76,512,594 69,730,229

$371,092,323 $368,415,488 $367,530,851 $345,482,908 $331,494,217 $325,476,351

Fiscal Year

81

2005 2006 2007 2008 2009ExpensesGovernmental activities:

General government $26,999,463 $26,668,475 $26,470,243 $24,499,159 $23,292,122Public safety 19,895,326 21,355,931 23,129,754 24,015,165 24,563,746Highways and streets 23,575,513 25,739,885 28,071,514 24,686,312 23,232,021Sanitation 5,662,893 9,495,022 4,044,886 3,700,068 2,938,422Health and welfare 20,367,441 22,202,806 23,584,522 22,951,469 24,411,872Culture and recreation 6,270,108 6,880,841 7,538,083 7,092,345 6,705,862Conservation 1,104,040 1,197,024 1,401,630 1,343,613 1,550,467Education 4,913,530 5,052,799 5,228,454 5,185,592 4,610,468Interest on long-term debt 95,191 91,037 86,755 82,357 77,837

Total governmental activities expenses 108,883,505 118,683,820 119,555,841 113,556,080 111,382,817Business-type activities:

Sewer 505,431 543,981 539,392 557,963 874,863Boat marina/RV park 1,692,677 1,793,854 1,962,142 2,037,088 1,943,725

Total business-type activities expenses 2,198,108 2,337,835 2,501,534 2,595,051 2,818,588Total primary government expenses $111,081,613 $121,021,655 $122,057,375 $116,151,131 $114,201,405

Program RevenuesGovernmental activities:

Fees, fines and charges for services:General government $3,919,614 $4,835,021 $5,571,145 $5,128,283 $5,778,859Public safety 2,957,182 3,649,083 3,774,827 3,807,339 3,408,242Highways and streets 369,910 354,076 464,025 530,790 393,931Sanitation 266,995 358,599 280,117 494,494 696,476Health and welfare 1,147,052 1,041,295 1,409,166 1,555,363 1,121,167Culture and recreation 2,255,379 2,495,116 2,524,056 2,571,126 2,511,616Conservation 566,634 760,356 782,822 887,053 748,483Education 405 977 1,035 1,456 932Operating grants and contributions 79,187,360 59,190,528 60,274,316 63,494,806 69,156,931Capital grants and contributions 635,443 238,000

Total governmental activities program revenues 91,305,974 72,685,051 75,081,509 78,470,710 84,054,637Business-type activities:

Sewer System 348,318 371,111 368,559 360,617Boat marina/RV Park 1,804,127 1,787,623 1,842,292 2,281,949 1,812,435

Total business-type activities program revenues 2,152,445 2,158,734 2,210,851 2,642,566 1,812,435Total primary government program revenues $93,458,419 $74,843,785 $77,292,360 $81,113,276 $85,867,072

Net (Expense)/RevenueGovernmental activities ($17,577,531) ($45,998,769) ($44,474,332) ($35,085,370) ($27,328,180)Business-type activities (45,663) (179,101) (290,683) 47,515 (1,006,153)Total primary government net expense ($17,623,194) ($46,177,870) ($44,765,015) ($35,037,855) ($28,334,333)

DOUGLAS COUNTY, OREGONCHANGES IN NET POSITION


______

Fiscal Year

2010 2011 2012 2013 2014

$21,484,862 $21,070,812 $19,309,705 $18,969,491 $18,942,52823,677,630 23,853,599 25,118,005 24,217,493 24,881,44723,258,720 21,653,779 22,313,834 20,327,818 19,850,948

3,230,276 2,869,455 5,268,463 1,775,575 3,322,07426,512,045 27,857,819 27,000,903 17,115,708 18,944,045

6,506,764 6,578,149 6,140,440 6,002,343 6,165,5941,320,783 1,165,109 1,204,324 1,224,078 1,266,7864,134,983 3,651,014 2,020,090 2,157,960 2,114,652

73,039 68,137 63,650 55,134 54,122110,199,102 108,767,873 108,439,414 91,845,600 95,542,196

1,937,711 2,070,234 2,185,859 2,140,643 1,922,7431,937,711 2,070,234 2,185,859 2,140,643 1,922,743

$112,136,813 $110,838,107 $110,625,273 $93,986,243 $97,464,939

$4,559,138 $5,316,485 $5,115,436 $5,033,089 $5,204,1393,732,241 3,504,863 3,475,927 3,783,771 3,820,764

247,066 213,781 80,051 215,852 173,679639,399 728,240 704,121 735,634 711,084808,585 985,807 860,958 999,935 977,373

2,524,743 3,282,442 2,608,235 3,241,026 2,745,191569,884 1,130,941 1,029,013 1,148,749 603,860

1,269 537 1,117 426 49560,854,231 61,837,105 52,819,019 39,561,989 39,380,073

1,635,631 14,160,62873,936,556 77,000,201 66,693,877 56,356,102 67,777,286

2,105,248 2,270,111 1,948,203 1,886,831 1,890,4282,105,248 2,270,111 1,948,203 1,886,831 1,890,428

$76,041,804 $79,270,312 $68,642,080 $58,242,933 $69,667,714

($36,262,546) ($31,767,672) ($41,745,537) ($35,489,498) ($27,764,910)167,537 199,877 (242,049) (253,812) (32,315)

($36,095,009) ($31,567,795) ($41,987,586) ($35,743,310) ($27,797,225)

Fiscal Year

82

2005 2006 2007 2008 2009

Governmental activities:Property taxes $6,194,146 $6,541,686 $6,985,626 $7,505,829 $8,264,593Unrestricted grants and contributions 24,963,801 25,443,814 26,611,362 26,420,505 24,623,895Investment earnings 4,481,310 5,610,501 9,365,375 6,468,338 3,179,695Gain on sale of assets 240,500 810,915 3,687Transfers in (out) 18,000 21,000 26,900 27,200

Total governmental activities 35,897,757 37,617,001 42,989,263 41,232,787 36,071,870Business-type activities:

Investment earnings 36,755 35,731 58,903 64,797 8,675Transfers in (out) (18,000) (21,000) (26,900) (27,200)

Total business-type activities 18,755 14,731 32,003 37,597 8,675

Total primary government $35,916,512 $37,631,732 $43,021,266 $41,270,384 $36,080,545

Change in Net PositionGovernmental activities $18,320,226 ($8,381,768) ($1,485,069) $6,147,417 $8,743,690Business-type activities (26,908) (164,370) (258,680) 85,112 (997,478)

Total primary government $18,293,318 ($8,546,138) ($1,743,749) $6,232,529 $7,746,212

Note: The County implemented GASB 63 in fiscal 2013. "Net Position" prior to the implementation was reported as "Net Assets".

CHANGES IN NET POSITION, continuedDOUGLAS COUNTY, OREGON

Fiscal Year

General Revenues and Other Changes in Net Position


______

2010 2011 2012 2013 2014

$8,443,416 $8,523,575 $8,823,504 $9,213,515 $9,369,38722,297,282 19,282,732 10,477,888 10,324,564 10,763,122

3,088,505 1,844,199 1,623,762 1,179,288 1,642,14015,477 20,281 5,177 1,032,012

33,844,680 29,670,787 20,930,331 21,749,379 21,774,649

14,597 12,371 9,312 5,240 4,710

14,597 12,371 9,312 5,240 4,710

$33,859,277 $29,683,158 $20,939,643 $21,754,619 $21,779,359

($2,417,866) ($2,096,885) ($20,815,206) ($13,740,119) ($5,990,261)182,134 212,248 (232,737) (248,572) (27,605)

($2,235,732) ($1,884,637) ($21,047,943) ($13,988,691) ($6,017,866)

Fiscal Year

83

2005 2006 2007 2008

General FundReserved $785,753 $775,242 $784,342 $858,603Unreserved 43,222,599 45,161,930 48,257,045 53,149,632

NonspendableRestrictedCommittedAssignedUnassigned

Total General Fund $44,008,352 $45,937,172 $49,041,387 $54,008,235

All other governmental fundsReserved $5,561,566 $6,146,904 $6,818,524 $7,154,460Unreserved, reported in: Special revenue funds 111,993,130 106,579,090 97,531,833 95,011,267 Capital projects funds 5,102,039 4,985,074 4,889,404 4,665,156

NonspendableRestrictedCommittedAssigned

Total all other governmental funds $122,656,735 $117,711,068 $109,239,761 $106,830,883

Notes: The County implemented GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions in fiscal year 2011 which resulted in changes in the classification of

governmental funds and fund balances.

Fiscal Year

DOUGLAS COUNTY, OREGONFUND BALANCES OF GOVERNMENTAL FUNDS

Last Ten Fiscal Years(modified accrual basis of accounting)

______

2009 2010 2011 2012 2013 2014

$800,477 $905,14059,820,146 66,903,845

$801,455 $372,637 $294,966 $62,1531,167,363 949,409 1,094,199 766,839

77 512 1,042 2,120,165 5,663,248 8,637,326 17,748,479

68,769,862 61,155,131 55,880,584 43,099,420

$60,620,623 $67,808,985 $72,858,845 $68,140,502 $65,907,587 $61,677,933

$6,761,324 $5,861,444

102,387,040 102,581,488 4,470,830 4,469,993

$2,493,389 $2,398,727 $2,063,904 $1,810,63094,953,641 90,983,636 85,540,578 81,651,417 13,434,348 13,863,482 15,799,285 15,007,832

4,271,725 4,077,259 3,216,097 2,360,136

$113,619,194 $112,912,925 $115,153,103 $111,323,104 $106,619,864 $100,830,015

Fiscal Year

84

2005 2006 2007 2008

Revenues Charges for services $7,105,616 $8,289,775 $9,109,044 $9,784,371 Permits, licenses and fines 1,538,921 1,660,874 1,833,263 1,897,930 Intergovernmental 104,151,161 84,634,342 86,897,678 89,915,311 Property taxes 6,204,100 6,528,842 6,979,666 7,457,020 Assessments 55,589 49,096 148,074 110,348 Interest 4,368,378 5,447,405 9,109,136 6,134,816 Other 2,668,627 2,647,884 2,735,814 2,204,997

Total revenues 126,092,392 109,258,218 116,812,675 117,504,793

Expenditures General Government 23,343,694 23,956,813 25,104,116 23,789,623 Public Safety 18,946,280 20,839,181 21,821,551 22,710,211 Highways and Streets 14,591,256 15,678,959 16,308,164 15,956,550 Sanitation 2,362,647 2,731,040 2,825,943 2,768,687 Health and Welfare 20,092,523 21,969,776 23,151,310 22,656,819 Culture and Recreation 5,983,169 6,468,031 6,730,067 6,476,373 Conservation 708,265 791,608 998,348 922,615 Education 4,913,530 5,052,799 5,228,454 5,185,592 Capital outlay 13,921,545 14,629,475 19,809,684 14,989,382 Debt service: Principal 81,429 86,615 88,909 91,321 Interest 95,191 91,037 86,755 82,357


Excess (deficiency) of revenues over (under) expenditures 21,052,863 (3,037,116) (5,340,626) 1,875,263

Other financing sources (uses): Transfers in 14,239,184 12,841,304 12,413,579 10,968,029 Transfers out (14,521,184) (12,874,304) (12,386,679) (10,940,829)


Net change in fund balances $20,770,863 ($3,070,116) ($5,313,726) $1,902,463

Debt service as a percentage of noncapital expenditures 0.19% 0.17% 0.16% 0.17%

Fiscal Year


Last Ten Fiscal YearsCHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

(modified accrual basis of accounting)______

2009 2010 2011 2012 2013 2014

$8,933,452 $8,750,239 $9,281,699 $8,951,210 $9,504,189 $9,047,1781,566,696 1,480,767 1,485,002 1,490,286 1,642,602 1,546,709

93,780,826 83,151,513 81,119,837 63,296,909 50,470,051 50,392,4048,136,808 8,280,618 8,394,503 8,796,642 9,184,191 9,389,538

100,725 85,496 40,634 26,539 32,985 42,6563,103,088 2,949,388 1,717,109 1,512,138 1,098,709 1,568,1743,018,442 1,622,940 3,085,638 2,231,475 4,229,820 2,869,620

118,640,037 106,320,961 105,124,422 86,305,199 76,162,547 74,856,279

22,977,114 20,718,097 19,995,908 18,201,994 16,851,909 17,207,13823,705,259 22,384,603 22,259,822 23,148,387 22,707,711 23,100,71812,583,272 11,367,525 11,012,867 10,748,845 9,734,690 10,090,760

2,923,147 2,580,933 2,448,517 2,255,942 2,287,407 2,406,38424,352,471 26,075,487 27,255,433 26,465,889 16,695,125 18,593,267

6,275,763 6,161,312 6,090,445 5,813,340 5,678,040 5,749,6451,156,812 883,495 779,918 817,199 832,543 874,0244,610,468 4,134,983 3,651,014 2,020,090 2,157,960 2,114,6526,145,816 5,070,115 4,771,242 5,042,487 5,758,102 4,338,692

96,853 98,651 88,677 87,268 110,822 103,00177,837 73,039 68,137 63,650 55,134 54,122

104,904,812 99,548,240 98,421,980 94,665,091 82,869,443 84,632,403

13,735,225 6,772,721 6,702,442 (8,359,892) (6,706,896) (9,776,124)

11,507,967 8,593,506 7,862,457 8,057,417 7,902,199 8,473,612(11,507,967) (8,593,506) (7,862,457) (8,057,417) (7,902,199) (8,473,612)

- - - - - -

$13,735,225 $6,772,721 $6,702,442 ($8,359,892) ($6,706,896) ($9,776,124)

0.17% 0.18% 0.16% 0.16% 0.21% 0.19%

Fiscal Year

85

Assessed

Value as aPercentage

Real Personal Mobile Total Taxable Direct Estimated of EstimatedFiscal Year Property Utilities Property Homes Assessed Value Tax Rate Actual Value Actual Value

2005 $4,993,318,628 $408,792,536 $204,837,336 $157,689,127 $5,764,637,627 $1.10 $10,007,803,131 57.60%

2006 5,324,685,680 396,016,654 213,492,295 162,349,426 6,096,544,055 1.10 11,633,338,386 52.41%

2007 5,686,823,830 430,705,400 231,920,426 172,823,150 6,522,272,806 1.11 13,817,853,998 47.20%

2008 6,028,294,260 426,762,995 246,231,449 184,434,510 6,885,723,214 1.11 15,627,693,847 44.06%

2009 6,321,129,201 447,050,741 256,993,505 187,099,088 7,212,272,535 1.11 16,059,656,180 44.91%

2010 6,547,573,056 419,379,767 253,010,577 181,817,278 7,401,780,678 1.11 15,512,650,354 47.71%

2011 6,674,578,324 460,704,484 234,737,915 168,397,177 7,538,417,900 1.11 14,759,614,525 51.07%

2012 6,861,568,691 488,688,242 233,357,428 150,878,202 7,734,492,563 1.11 13,933,988,708 55.51%

2013 7,006,018,564 555,371,101 238,839,908 143,800,972 7,944,030,545 1.11 13,567,485,267 58.55%

2014 7,207,913,032 569,571,410 240,793,579 138,730,374 8,157,008,395 1.11 13,661,197,820 59.71%

Source: Douglas County Assessor's Department

DOUGLAS COUNTY, OREGONASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

Last Ten Fiscal Years______

86

Taxing Entity 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Douglas County Total Direct Rate: General Operations $1.10 $1.10 $1.11 $1.11 $1.11 $1.11 $1.11 $1.11 $1.11 $1.11

Overlapping Rates: City Rates: Canyonville 3.58 3.56 3.53 3.51 3.49 3.53 3.48 3.50 3.46 3.49 Drain 1.52 1.52 1.52 1.52 1.52 1.52 1.52 1.52 1.52 1.52 Elkton 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 Glendale 6.10 5.98 5.84 5.66 5.57 5.71 5.70 5.71 5.73 5.83 Myrtle Creek 7.12 6.51 6.51 6.51 6.51 6.51 6.51 6.51 6.51 6.51 Oakland 6.41 6.41 6.41 6.41 6.41 6.41 6.41 6.41 6.41 6.41 Reedsport 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 6.19 Riddle 6.49 6.49 6.49 6.49 6.49 6.49 6.49 6.49 6.49 6.49 Roseburg 8.78 17.50 20.75 20.79 20.36 21.20 21.49 22.04 22.89 23.74 Sutherlin 5.64 5.83 5.83 5.82 5.82 5.81 5.81 5.78 5.78 5.75 Winston 4.27 4.27 4.27 4.27 4.27 4.27 4.27 4.27 4.27 4.27 Yoncalla 1.46 1.46 1.46 1.46 1.46 1.46 1.46 1.46 1.46 1.46

School Districts Rates: Camas Valley 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 Days Creek 5.36 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 4.84 Elkton 4.36 4.36 4.36 4.36 4.36 5.30 5.30 5.29 5.30 5.30 Fern Ridge 7.40 7.23 7.06 6.70 6.86 6.84 6.92 6.97 6.92 7.01 Glendale 5.21 5.32 5.25 5.24 5.27 5.13 5.23 5.27 5.28 5.27 Glide 4.50 4.50 4.50 5.54 5.52 5.60 5.60 5.58 5.45 5.48 North Douglas 5.19 5.24 5.36 5.37 5.16 5.20 5.17 5.22 5.11 5.11 Oakland 5.02 5.02 5.02 4.64 4.64 5.02 5.03 5.06 5.02 5.01 Reedsport 5.32 4.38 4.38 4.38 5.90 5.84 5.78 5.73 5.70 5.72 Riddle 4.66 4.66 4.66 4.66 4.66 4.66 4.66 4.66 4.66 4.66 Roseburg 4.79 4.68 4.68 4.66 4.64 4.63 4.66 4.65 4.65 4.63 Siuslaw 5.37 5.23 5.13 5.05 5.08 5.77 5.76 5.55 5.54 5.53 South Lane 6.55 6.47 6.42 6.36 6.35 6.40 6.45 6.39 6.35 6.50 South Umpqua 4.71 4.71 4.71 4.71 4.71 4.71 4.71 4.71 4.71 4.71 Sutherlin 4.86 4.84 4.76 4.79 4.79 4.79 4.75 4.76 4.73 4.75 Winston-Dillard 5.98 5.80 5.81 5.74 5.77 5.79 5.94 5.91 6.01 6.03 Yoncalla 4.69 4.69 4.69 4.69 4.69 4.69 4.69 4.69 4.69 4.69 Lane Community College 0.88 0.88 0.85 0.83 0.87 0.85 0.86 0.88 0.86 0.86 SW Ore Com College 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 Umpqua Com College 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46 0.46

Education Service District Rates 0.22-0.53 0.22-0.53 0.22-0.53 0.22-0.53 0.22-0.53 0.22-0.53 0.22-0.53 0.22-0.53 0.22-.053 0.22-0.53

Fire District Rates 0.00-4.65 0.00-4.65 0.00-4.65 0.00-4.64 0.00-4.64 0.00-4.65 0.49-4.65 0.49-4.65 0.49-4.65 0.49-0.465

Water District Rates 0.00-0.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sanitary District Rates 0.57-2.42 0.00-2.42 0.00-2.42 0.00-2.42 0.00-2.42 0.00-2.42 0.00-2.42 0.00-2.42 0.00-2.42 0.00-2.42

Other Special District Rates 0.00-9.22 0.00-3.97 0.00-3.97 0.00-3.97 0.00-3.97 0.00-3.97 0.00-3.97 0.00-3.97 0.00-3.97 0.00-3.97

* Source: County Assessor's annual certified levy

DOUGLAS COUNTY, OREGON PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS*

(Per $1,000 of Assessed Value)Last Ten Fiscal Years______

87

Percentage of Percentage ofTaxable Total Taxable Taxable Total Taxable

Assessed Assessed Assessed Assessed Taxpayer Valuation Rank Valuation Valuation Rank Valuation

Pacific Power/Pacificorp $360,491,000 1 4.42% $209,580,000 1 3.64%

Roseburg Forest Products 144,162,373 2 1.77% 179,070,690 2 3.11%

Weyerhaeuser Co 56,039,950 3 0.69% 45,770,444 3 0.79%

Seneca Jones Timber 39,008,682 4 0.48% 30,431,196 5 0.53%

CenturyLink (Qwest Corporation) 37,609,800 5 0.46% 32,687,575 4 0.57%

OxBow Timber LLC 36,009,707 6 0.44%

Charter Communications 29,053,100 7 0.36%

Avista Corporation 28,859,000 8 0.35%

Swanson Group 25,320,767 9 0.31%

Verizon Communications 19,186,100 10 0.24%

Mercy Medical Center 18,094,594 6 0.31%

$775,740,479 9.51% $515,634,499 8.95%


2005

DOUGLAS COUNTY, OREGONPRINCIPAL TAXPAYERS

Current Year and Nine Years Ago______

2014

88

Total Current Collections in Total OutstandingFiscal Tax Tax Subsequent Tax DelinquentYear Levy Collections Years Collections Taxes

2005 $6,301,675 $6,013,285 95.42 % $281,434 $6,294,719 99.89 $6,956 0.11 %

2006 6,662,399 6,378,537 95.74 281,965 6,660,502 99.97 1,897 0.03

2007 7,214,139 6,921,214 95.94 290,430 7,211,644 99.97 2,495 0.03

2008 7,651,298 7,289,831 95.28 356,846 7,646,677 99.94 4,621 0.06

2009 8,010,480 7,593,448 94.79 405,771 7,999,219 99.86 11,261 0.14

2010 8,192,444 7,705,612 94.06 454,421 8,160,033 99.60 32,411 0.40

2011 8,332,837 7,827,553 93.94 420,761 8,248,314 98.99 84,523 1.01

2012 8,541,149 8,049,474 94.24 324,855 8,374,329 98.05 166,820 1.95

2013 8,871,489 8,413,472 94.84 211,526 8,624,998 97.22 246,491 2.78

2014 9,102,004 8,685,265 95.42 - 8,685,265 95.42 416,739 4.58

District or Agency Funds.

Percent Total Tax

Source: Douglas County Tax Collector's records related to Douglas County funds. Does not include 4H Extension Service

Of Levy CollectionsCollected To Tax Levy

Percent of Percent ofDelinquent

TaxesTo Tax Levy

DOUGLAS COUNTY, OREGONPROPERTY TAX LEVIES AND COLLECTIONS


89

General Bonded Debt Outstanding (1)

Percentage ofGeneral Estimated Actual Percentage of Per

Obligation Value of Taxable Notes Personal CapitaFiscal Year Bonds Property Payable Income (2) (2)

2005 N/A N/A $1,742,210 0.066% $17.022006 N/A N/A 1,655,595 0.060% 16.082007 N/A N/A 1,566,686 0.055% 15.092008 N/A N/A 1,475,365 0.050% 14.092009 N/A N/A 1,378,512 0.044% 13.102010 N/A N/A 1,279,861 0.039% 12.142011 N/A N/A 1,191,184 0.035% 11.062012 N/A N/A 1,328,916 0.042% 12.332013 N/A N/A 1,257,094 0.037% 11.622014 N/A N/A 1,154,093 0.033% 10.60

(1) Douglas County has not had any general obligation bonded debt in the last ten fiscal years.(2) See the schedule of Demographic and Economic Statistics for personal income and population data.

N/A - Not applicable

_____

DOUGLAS COUNTY, OREGONRATIOS OF OUTSTANDING DEBT BY TYPE

Last Ten Fiscal Years

Governmental Activites - Total Primary Government

90

Direct Debt and Estimated EstimatedNet General Percentage Amount

Obligation Bonded Applicable to Applicable toGovernmental Unit Debt Outstanding County County

Debt repaid with property taxes:

Douglas County (direct debt) $1,154,093 100.00 % $1,154,093

South Umpqua Rural Fire Protection District 915,000 100.00 915,000

Sutherlin Water Control District 21,990 100.00 21,990

Douglas County Fire District #2 2,835,000 100.00 2,835,000

Azalea Rural Fire Protection District 30,000 100.00 30,000

Camas Valley Rural Fire Protection District 35,000 100.00 35,000

Glide Rural Fire Protection District 2,430,000 100.00 2,430,000

Douglas County School District No. 1 706,000 100.00 706,000


Douglas County School District No. 4 46,439,007 100.00 46,439,007









City of Canyonville 44,557 100.00 44,557

City of Glendale 97,431 100.00 97,431

City of Roseburg 11,960,000 100.00 11,960,000

City of Sutherlin 510,000 100.00 510,000

Lane County School District No. 28J 11,504,290 0.43 49,641

Lane County School District No. 45J3 35,317,690 0.19 65,726

Lane County School District No. 97J 16,840,000 0.51 86,389

Lane Community College 62,290,000 0.04 22,424

Lane ESD 7,285,000 0.05 3,548

Southwestern Oregon Community College 23,165,000 5.75 1,332,590

Tri-City Rural Fire Protection District #4 2,240,000 100.00 2,240,000

Umpqua Community College 3,690,000 100.00 3,690,000$295,200,377 $140,358,715

Sources: Oregon State Treasury, Debt Management Information System, Douglas County Office of Management & Finance

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 theresidents and businesses of Douglas County. This process recognizes that, when considering the county's ability toissue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken intoaccount. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying thedebt, of each overlapping government.

______

DOUGLAS COUNTY, OREGONDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

June 30, 2014

91

Net Debt Applicable toFiscal Debt Applicable Legal the Limit as a Percentage

Year Debt Limit To Limitation Debt Margin of the Debt Limit

2005 $200,156,063 0.00 $200,156,063 0.00%

2006 232,666,768 0.00 232,666,768 0.00%

2007 276,357,080 0.00 276,357,080 0.00%

2008 312,553,877 0.00 312,553,877 0.00%

2009 321,193,124 0.00 321,193,124 0.00%

2010 310,253,007 0.00 310,253,007 0.00%

2011 295,192,291 0.00 295,192,291 0.00%

2012 278,679,774 0.00 278,679,774 0.00%2013 271,349,705 0.00 271,349,705 0.00%2014 273,223,956 0.00 273,223,956 0.00%

Legal Debt Margin Calculation for Fiscal Year 2014:

Estimated Real Market Value $13,661,197,820

Debt limit (2% of estimated actual value)(1) $273,223,956

Debt applicable to limit 0

Legal debt margin $273,223,956

(1) The debt limit for general obligation bonds set forth in ORS 287A.100 provides "a county may not issue or have outstanding at the time of issuance general obligation bonds in a principal amount that exceeds two percent of the real market value of the taxable property in the county."


DOUGLAS COUNTY, OREGONLEGAL DEBT MARGIN INFORMATION


92

Per CapitaFiscal Personal Personal Median School UnemploymentYear Population Income Income Age Enrollment Rate

2005 102,350 $2,622,514,050 $25,623 37.0 16,297 8.3%

2006 102,950 2,774,936,230 26,966 43.4 16,132 7.1%

2007 103,815 2,827,609,155 27,237 n/a 15,645 7.4%

2008 104,675 2,951,625,650 28,198 43.7 15,613 8.4%

2009 105,240 3,126,469,920 29,708 43.4 15,638 16.0%

2010 105,395 3,279,365,425 31,115 46.2 15,170 14.3%

2011 107,667 3,411,536,562 31,686 46.1 14,834 13.2%

2012 107,795 3,190,839,795 29,601 46.1 14,709 12.0%

2013 108,195 3,378,064,290 31,222 46.1 14,709 10.9%

2014 108,850 3,525,542,650 32,389 46.1 14,617 9.7%

Sources: Population and personal income provided by Portland State University Center for Population Research and Census. Per capita personal income provided by Bureau of Economic Analysis.Unemployment rate provided by Oregon Department of Employment. School enrollment providedby the National Center for Education Statistics. Median age provided by the U.S. Census Bureau.

n/a - not available

DOUGLAS COUNTY, OREGONDEMOGRAPHIC AND ECONOMIC STATISTICS

Last Ten Fiscal Years__________

93

Percentage Percentageof Total of TotalCounty County

Employer Employees Rank Employment Employees Rank Employment

Roseburg Forest Products 1,890 1 4.82% n/a n/a n/a

Mercy Healthcare, Inc 1,033 2 2.63% n/a n/a n/a

VA Medical Center 894 3 2.28% n/a n/a n/a

Cow Creek Band of Umpqua Indians 691 4 1.76% n/a n/a n/a

Roseburg School District 671 5 1.71% n/a n/a n/a

TMS Call Center 619 6 1.58% n/a n/a n/a

Douglas County 581 7 1.48% n/a n/a n/a

Swanson Group 527 8 1.34% n/a n/a n/a

First Call Resolution 335 9 0.85% n/a n/a n/a

Umpqua Bank 299 10 0.76% n/a n/a n/a

7,540 19.22% - -

Source: The Partnership for Economic Development in Douglas County

n/a - not available

2005

DOUGLAS COUNTY, OREGONPRINCIPAL EMPLOYERS

Current Year and Nine Years Ago______

2014

94

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Governmental Activities:

General Government

Tax Assessment and Collection 32.25 32.25 33.00 27.00 32.00 32.00 32.00 31.70 31.70 31.11

Justices of the Peace 10.50 10.50 10.50 11.00 10.85 10.85 10.85 10.85 11.15 11.20

Juvenile Department 40.00 43.00 41.60 40.00 40.60 40.70 40.70 35.55 32.60 38.60

County Clerk 14.13 14.12 14.12 12.00 11.20 11.20 9.80 9.30 8.80 7.00

Planning 22.35 23.60 27.00 24.00 27.00 24.00 20.50 17.50 16.00 15.00

All other 94.87 103.72 85.72 91.50 93.85 83.70 76.15 75.20 72.51 73.21

Public Safety

Sheriff 159.90 164.90 147.00 175.50 136.50 134.50 134.50 134.50 128.50 128.50

District Attorney 25.00 27.00 27.00 24.00 21.00 21.60 21.60 21.80 21.80 22.00

All other 36.11 39.11 62.25 21.00 42.00 51.25 51.25 48.25 45.44 44.44

Highways and Streets 118.89 120.89 121.75 115.00 117.75 89.75 83.75 78.50 70.75 64.75

Sanitation 18.50 18.50 18.50 19.00 18.00 17.00 15.00 13.00 13.00 12.00

Health and Welfare 185.85 179.10 187.83 159.00 151.76 159.05 173.93 177.40 179.10 197.90

Culture and Recreation

Parks 21.75 21.66 21.00 20.00 18.70 16.75 16.50 14.50 13.20 14.44

Library 45.86 45.86 45.86 34.50 40.26 35.81 32.46 26.55 26.05 26.05

Fairgrounds 13.00 13.00 13.80 11.00 11.00 11.00 11.00 11.00 9.00 9.00

Museum 5.50 4.50 4.50 5.50 5.00 5.25 5.25 4.00 4.00 4.00

Conservation 5.50 5.50 5.50 6.00 6.00 6.00 6.00 6.00 6.00 6.00

Total governmental activities 849.96 867.21 866.93 796.00 783.47 750.41 741.24 715.60 689.60 705.20

Business-type activities:

Salmon Harbor Marina/RV Park 10.00 11.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 10.00

Total employees 859.96 878.21 878.93 808.00 795.47 762.41 753.24 727.60 701.60 715.20

Source: Douglas County Finance Department

Function/Program

Full-time Equivalent Employees as of June 30

DOUGLAS COUNTY, OREGONFULL-TIME-EQUIVALENT COUNTY EMPLOYEES BY FUNCTION/PROGRAM


95

2005 2006 2007 2008 2009

General governmental activities:

Public Safety

Sheriff-Enforcement

Citations issued 4,300 3,739 3,384 2,941 2,826

Warnings issued 5,055 3,878 5,954 6,986 7,710

Arrest reports 4,301 4,230 3,732 3,310 2,885

Sheriff-Jail

Bookings 6,423 6,349 6,387 6,810 5,538

Average daily population 207 190 200 193 176

Communications

Law Enforce reports 192,167 197,978 196,690 185,787 188,150

Fire/Medical reports 17,487 18,363 18,083 19,178 19,500

Building Department

Building permits 1,432 1,354 1,278 1,437 1,087

Highways and Streets

Miles of roads resurfaced 107.67 (note) 88.63 111.50 82.84

Sanitation

Landfill annual waste disposal in tons 101,633 112,727 109,584 99,908 83,838

Health and Welfare

Services to unduplicated clients:

Mental Health 3,680 3,944 3,871 3,481 3,195

Public Health 20,926 20,259 19,321 18,514 17,809

Senior and DD Services 7,248 6,095 7,299 9,562 14,846

Culture and Recreation

Park campgrounds annual usage 24,420 23,368 23,015 24,723 25,285

Conservation

Galesville dam annual

KWH produced 4,521,099 3,872,495 5,048,025 5,741,581 4,290,041


Salmon Harbor Marina

RV Park average annual occupancy 44% 45% 47% 45% 44%

Sources: Various county departmentsNote: In 2006 an extensive county wide project to replace aging culverts and drainage pipes was

done in lieu of road resurfacing.

Fiscal Year

Function/Program

DOUGLAS COUNTY, OREGONOPERATING INDICATORS BY FUNCTION/PROGRAM

Last Ten Fiscal Years

2010 2011 2012 2013 2014

2,607 2,397 2,589 2,604 2,634

5,835 5,743 5,078 5,148 5,343

2,825 2,973 2,734 3,063 3,562

5,718 6,047 6,519 7,009 7,213

216 223 211 193 234

185,450 182,608 193,980 157,914 124,705

19,420 18,401 19,617 8,794 19,511

891 965 751 826 841

7.49 7.99 14.42 10.01 3.36

77,502 77,853 74,986 75,118 74,136

2,973 2,800 2,661 3,052 3,517

14,084 13,808 13,319 14,286 13,729

7,078 4,007 5,096 3,121 2,885

25,360 24,012 24,156 24,347 25,031

3,038,060 7,707,415 6,559,387 7,224,361 3,144,390

43% 39% 37% 37% 39%

Fiscal Year

96

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Governmental Activities:

Public Safety Sheriff Patrol vehicles 53 51 47 47 46 46 42 42 34 34 Adult correction facility 1 1 1 1 1 1 1 1 1 1

Highways and Streets Centerline miles of county roads 1,170 1,170 1,171 1,172 1,172 1,172 1,173 1,173 1,173 1,173 Bridges 294 294 294 294 303 303 304 304 305 305

Sanitation Landfill facility 1 1 1 1 1 1 1 1 1 1 Solid waste transfer sites 13 13 13 13 12 12 10 11 11 11

Culture and Recreation Parks Number of county parks 42 42 42 42 42 53 53 53 53 53 Overnight camp sites 220 220 270 270 290 317 317 317 317 317

Conservation Dams 2 2 2 2 2 2 2 2 2 2 Stream gauging stations 25 25 25 25 25 25 24 23 23 23


Salmon Harbor Marina Moorage Docks 17 17 17 16 16 16 16 16 15 15 Boarding Floats 2 2 2 2 2 2 2 2 2 2 Boat Fueling Dock 1 1 1 1 1 1 1 1 1 1

Sources: Various county departmentsNote: No capital asset indicators are available for the general government function.n/a - not available

Function/Program

DOUGLAS COUNTY, OREGONCAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM


Fiscal Year

97

INDEPENDENT AUDITOR’S REPORTON THE INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

INDEPENDENT AUDITOR’S COMMENTS (Disclosures and Comments Required by State Regulations)

Oregon Administrative Rules 162-10-050 through 162-10-320, the Minimum Standardsfor 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 financial 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 following.

douglas county oregon cafr 2014douglas county, oregon comprehensive annual financial report for the...

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