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HomeMy WebLinkAboutCounty of Jackson - Public Financial ReportGeneral Information 1 Government-wide Financial Statements 2 Governmental Fund Information 3 General Fund Analysis 4 Proprietary Fund Information 5 Capital Assets & Long Term Planning 6 Long Term Debt 7 Connecting with Jackson County 8 2021 POPULAR ANNUAL FINANCIAL REPORT Inside this PAFR: This Popular Annual Financial Report (PAFR) has been prepared to inform Jackson County’s citizens about the County’s financial activity in a simple, easy-to-read format. This PAFR is based on the County’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021 (FY 2021), and is intended to be a supplement to the ACFR. This PAFR summarizes the most significant data found in the ACFR and is consistent with GAAP (generally accepted accounting principles). The 2021 ACFR was audited by Moss Adams, LLP, an independent auditing firm, and received an unmodified (clean) opinion. Jackson County’s Annual Reports are available online at: www.jacksoncounty.org/AnnualReport 2020-2021 Popular Annual Financial Report - Page 1 About Jackson County Named for President Andrew Jackson, Jackson County was formed in 1852. Jackson County is located in the Rogue Valley of Southern Oregon. With nearby mountains, ocean, and desert, Jackson County offers breathtaking scenery in every direction and is blessed with moderate weather. Unlike many regions in Oregon, Jackson County only receives around 19 inches of rain- fall a year. While the weather is mild, there are four very distinct seasons. Approximately 69% of Jackson County residents live in the eleven incorporated cities, the largest of which include Ashland, known for its Oregon Shakespeare Festival, and Medford, the County seat. Jackson County provides a full range of services including, but not limited to, public safety, health and human services, parks and recreation, corrections, parole and probation, recording and elections, development services, public works, and assessment and tax collection for all County taxing districts. In addition, the County also operates the Rogue Valley International-Medford Airport and a 160 acre exposition park and fairgrounds. The County has three blended component units, which are legally separate entities that function for all practical purposes as departments of the County. They are the White City Lighting District, White City Enhanced Law Enforcement District, and 4-H, Master Gardener and Agricultural Extension Service District. Jackson County aims for a less bureaucratic/more entrepreneurial, less tradition-bound/more flexible approach to government. The County is governed by three full-time Commissioners elected to staggered four-year terms. The Board of Commissioners is responsible for many broad issues in the region, such as regional land use planning, forest planning, water supply issues, air quality, transportation, economic development, and emergency management. The Board also works with the County’s eleven cities on matters of mutual concern, and serves the citizens of Jackson County by resolving complaints and legislating where necessary. The Board is also responsible for appointing the County Administrator. The County Administrator is responsible for executing the Board of Commissioners’ policies and ordinances and overseeing the day-to-day operations of the County. More information on the County’s Board of Commissioners and their public meetings can be found on the County’s website at: jacksoncountyor.org/Board-of-Commissioners Rick Dyer Dave Dotterrer Colleen Roberts At a Glance Jackson County’s mission is to provide public services that protect and enhance the quality of life in the County, as determined by the people, laws, and available resources. Geographic Area 2,801 square miles 2,784 square miles—Land 17 square miles—Water Demographics Population 221,844 Total Personal Income $10,669,698,000 Per Capita Income $48,095 Persons Per Household 2.41 Median Home Value $280,330 Property Tax Rate (per $1,000 assessed value) $2.1276 Median Age 42.6 years School Enrollment 29,210 Registered Voters 159,120 Unemployment Rate-County 6.0% Unemployment Rate-State 5.6% Unemployment Rate-National 5.9% Principal Employers Asante Medical Center 4,231 Harry & David Corp (Retail) 2,000 Federal Government 1,682 Amy’s Kitchen (Retail) 1,150 Medford School District 1,125 Celebrate Oregon! Artwork by Liza Burns of Eugene, OR for the new Oregon Cultural Trust license plate. A full-scale mural has been installed at the County’s Airport. The 127 woven symbols represent Oregon’s arts, heritage, history and culture. For more information, please visit: culturaltrust.org Government-wide Financial Statements Government-wide financial statements, which include the Statement of Net Position and the Statement of Activities, provide readers with a broad overview of the County’s finances in a way that is similar to a private sector business. These statements include not only the County itself, but also its blended component units. The Statement of Net Position, like a balance sheet, shows the resources and obligations of the County. Over time, increases and decreases in total net position can serve as a useful indicator of whether the County’s financial position is improving or declining. The County’s total net position has been fairly stable for the past ten fiscal years. 2020-2021 Popular Annual Financial Report - Page 2 * Indicates restatement of net position. (Amounts in thousands - Page 1 of the FY 2021 and 2020 ACFR) Total Restated Restated Percent 2021 2020 2021 2020 2021 2020 Change Current and other assets 258,571$ 212,800$ 43,301$ 32,258$ 301,872$ 245,058$ 23.18% Capital assets 229,777 233,397 142,019 146,992 371,796 380,389 (2.26) Total assets 488,348 446,197 185,320 179,250 673,668 625,447 7.71 DEFERRED OUTFLOWS OF RESOURCES (What the County Will Own in Future Reporting Periods) Related to Pensions and OPEB 42,206 46,449 2,051 2,236 44,257 48,685 (9.10) Other 46 54 6 7 52 61 (14.75) Total deferred outflows of resources 42,252 46,503 2,057 2,243 44,309 48,746 (9.10) LIABILITIES (What the County Owes) Current and other liabilities 35,775 21,042 2,601 1,716 38,376 22,758 68.63 Long-term liabilities 128,308 118,560 18,816 19,040 147,124 137,600 6.92 Total liabilities 164,083 139,602 21,417 20,756 185,500 160,358 15.68 DEFERRED INFLOWS OF RESOURCES (What the County Will Owe in Future Reporting Periods) Related to Pensions and OPEB 17,500 10,546 840 582 18,340 11,128 64.81 Other - - 330 303 330 303 8.91 Total deferred inflows of resources 17,500 10,546 1,170 885 18,670 11,431 63.33 NET POSITION (Indicator of the County's overall financial health) Net investment in capital assets 227,618 204,958 127,714 132,253 355,332 337,211 5.37 Restricted (by third parties or by law)65,734 83,567 588 589 66,322 84,156 (21.19) Unrestricted (available to meet the 55,665 54,026 36,488 27,010 92,153 81,036 13.72 Total net position 349,017$ 342,551$ 164,790$ 159,852$ 513,807$ 502,404$ 2.27% STATEMENT OF NET POSITION County's ongoing obligations) Governmental Activities Business-type Activities ASSETS (What the County Owns) The 2020 business-type activities capital assets and net investment in capital assets balances were restated (increased by $909,705) to reflect the acquisition of buildings and land improvements belonging to the Recreation Enterprise fund. The dramatic increase in government-wide current assets and current liabilities was, in most part, due to the receipt of $21 million in American Rescue Plan Act (ARPA) funding, which was recorded as un- earned revenue. The increase in the governmental activities net investment in capital assets and decrease in restricted net position is the result of the reclassification of unspent bond proceeds. The Statement of Activities, similar to an income statement, shows how much was received (revenues/inflows) and spent (expenses/outflows) by the County. The change in net position is the difference between revenues and expenses. A positive change in net position means that there was more than enough revenues to cover expenses. A negative change in net position means that revenues were not enough to cover expenses, leading to the use of unrestricted net position. With the assistance of COVID-19 funding, the County was able to report a positive change in net position. Refer to the Management’s Discussion and Analysis section of the County’s 2021 ACFR for more information. (Amounts in thousands - Page 2 in the FY 2021 and 2020 ACFR) Percent 2021 2020 2021 2020 2021 2020 Change Total revenues (Inflows)165,242$ 150,592$ 26,282$ 25,950$ 191,524$ 176,542$ 8.49% Total expenses (Outflows)158,553 155,592 21,567 21,270 180,120 176,862 1.84 Excess (deficiency) before transfers 6,689 (5,000) 4,715 4,680 11,404 (320) 3,663.75 Transfers (223) (109) 223 109 - - - Change in net position 6,466$ (5,109)$ 4,938$ 4,789$ 11,404$ (320)$ 3663.75% Governmental Activities Business-type Activities Total STATEMENT OF ACTIVITIES Total Net Position Last 10 Fiscal Years (Amounts in millions) Information in tables found on page 4 of the ACFR 2020-2021 Popular Annual Financial Report - Page 3 Governmental Funds County Functions Jackson County’s Basic Fund Types Jackson County uses fund accounting (a self-balancing set of accounts used to track specific activities) to ensure and demonstrate compliance with finance-related legal requirements. The County reports twenty-two funds divided into three categories: governmental, proprietary, and fiduciary. Governmental funds are generally used to account for tax-supported activities (referred to as governmental activities). There are five types of governmental funds: the general fund (the chief operating fund of the County), special revenue funds (dedicated to a specific purpose), capital project funds, debt service funds, and permanent funds (only earnings and not the principal of the fund may be used). Proprietary funds are business-like funds that recover all or the majority of their costs through user fees and charges. There are two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds provide goods and services to the general public for a fee (referred to as business-type activities). The County’s enterprise funds include the airport, exposition park and fairgrounds, and parks and recreation. Internal service funds account for goods and services provided by one department to another on a cost-reimbursement basis. Internal service funds predominantly benefit governmental activities rather than business-type activities, and therefore are included within the governmental activities in the government-wide financial statements. Fiduciary funds account for the resources held for the benefit of parties outside of the County, and as such these funds are excluded from the government-wide financial statements. The County’s largest fiduciary funds include its employees’ pension trust funds and property tax clearing fund. Includes County administration, finance, legal counsel, human resources, and other general County services. Operations of the Sheriff’s Office, County jail, parole and probation, and district attorney. Operations of the County’s law library program. Includes the Recording Office, Elections, and County Surveyor. General Government Elections & Records Community Justice & Safety: Culture & Recreation Cost of financing buildings, streets, and other capital improvements. Services related to public health, mental health, environmental health, and animal services. Consists of street, traffic, and engineering services. Services related to planning, code enforcement, building, economic and special development, water monitoring, and solid waste. Planning, Development & Natural Resources Health & Human Services (HHS) Transportation Debt Service Revenues & Expenditures The County’s revenues from its governmental funds (excluding other financing sources) for 2021 totaled $161,814,497, an increase of 8.45% from 2020, resulting primarily from COVID-19 related grant funding. The County’s expenditures from its governmental funds (excluding other financing uses) for 2021 totaled $143,792,779, a decrease of 3.64% from 2020, resulting primarily from a $19 million one-time payment in 2020 to the Oregon Public Employees Retirement System (PERS). This was a State-mandated payment to create a side account intended to reduce the County’s future retirement contribution rates. Intergovernmental: Federal, state, and local government grants, contracts, and revenue sharing agreements. Charges for Services: Fees collected for services provided to customers. Taxes: The County’s portion of taxes on real property and marijuana sales. Other: Includes licenses, permits, fines, forfeitures, donations, interest income, and miscellaneous receipts. Below is a list of functions within the governmental funds. The General Fund is the County’s largest fund and also one of the most vital to the County’s operations. The General Fund is the primary operating fund that accounts for everyday general expenditures for community justice, law enforcement, recording, elections, planning and development, while also supplementing portions of other funds. General Fund Analysis 2020-2021 Popular Annual Financial Report - Page 4 Expenditures by Function * 2020 2019 2021 General Government $17,298 11,582 $7,295 Elections & Records $1,601 $1,470 $1,751 Community Justice & Safety $58,069 $55,862 $59,420 Planning, Development & Natural Resources $4,909 $4,929 $9,921 Debt Service $3,281 $0 $1,640 Total General Fund Expenditures $85,158 $73,843 $80,027 * Amounts in thousands. Information found on page 4 of the ACFR In 2021 the General Fund’s total revenue was $96,343,894, an increase of 13.29% from 2020, resulting primarily from COVID-19 grant funding, increased property tax revenue, and increased development services charges to individuals and businesses rebuilding after the prop- erty losses from the Almeda and Obenchain wildfires in September 2020. Revenues Expenditures The County’s total General Fund expenditures were $80,027,105, a decrease of 6.03% from 2020. As mentioned previously, this decrease is predominately due to the Oregon PERS payment made in 2020. However, this decrease from the prior year was offset slightly by the $5 million in COVID-19 Emergency Business Assistance Grant payments made to local businesses by the Planning, Development & Natural Resources function. As a measure of the General Fund’s liquidity, (meaning it has enough resources available to cover expenses) it can be useful to compare both unassigned and total fund balances to total expenditures. Total General Fund balance represents 122% of total General Fund expenditures, while unassigned fund balance represents 104%. Indicating that the County has more than enough fund balance to cover its expenses. Fund balance is the net position of a governmental fund, that is simply the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. The 2021 general fund ending fund balance was $97,412,510, an increase of 15.26% from 2020. Of the total fund balance, $83,552,119 represents Unassigned fund balance, which can be used at the County’s discretion. The remaining fund balance is classified as either non- spendable, restricted, or assigned. Non-spendable fund balance represents assets that are not in a spenda- ble form, i.e. the long-term portion of accounts receivable and prepaid expenses. The general fund’s 2021 non-spendable fund balance was $4,753,090, a decrease of 1.68% from 2020. Restricted fund balance represents resources subject to externally enforceable constraints. The County’s restricted fund balance was $57,526, and includes amounts restricted to be used in accordance with the Taylor Grazing Act and Federal forfeitures guidelines. Assigned fund balance represents resources that are constrained by the County’s intent to use them for a specific purpose. For the General Fund it represents the amount needed to cover the excess expenditures over revenues in the fiscal year 2021-2022 budget, $9,049,775, a 13.75% increase from the prior year. Fund Balance Revenues by Type * 2020 2019 2021 Taxes $41,969 $40,762 $45,130 Intergovernmental $28,336 26,952 $35,479 Charges for services $8,859 $10,733 $10,929 Other $5,5881 $6,292 $4,806 Total General Fund Revenue $85,045 $84,379 $96,344 Breakdown of General Fund Balance (information found on page 3 of the ACFR) Proprietary Funds 2020-2021 Popular Annual Financial Report - Page 5 During the year the County entered into an agreement with the State of Oregon to take over operations of Joseph H. Stewart State Park on Lost Creek Lake, a popular camping and day use location. The Recreation Enterprise fund also received approximately $1 million from the State of Oregon and FEMA to house people who lost their homes in the local wildfires and people required to quarantine due to the COVID-19 pandemic. Jackson County Parks (Recreation Enterprise Fund) operates 21 developed day-use parks and campgrounds within the County. Jackson County’s well-maintained parks and modern facilities offer diverse recreational opportunities for family, friends, and business gatherings. $3,758 $3,279 $4,380 $3,505 $3,350 $3,491 2019 2020 2021 Revenues ExpensesLost Creek Lake at Joseph Stewart County Park The Expo is Southern Oregon’s largest event space, offering a large events center, an outdoor amphitheater, two indoor buildings, two arenas, two barns, and ample parking. The Expo hosts the County fair, Brewfest, Bacon & Barrels, and Holiday Market. In addition to the self-promoted events, the Expo can host any event imaginable, from weddings to mud runs. The revenue and expense amounts shown in the graphs below use a non-GAAP, budgetary cash basis of accounting and are shown in thousands. Information for these graphs can be found on pages 81 through 83 of the ACFR . The Rogue Valley International Medford Airport (MFR) is located in southwestern Oregon on 905 acres adjacent to the City of Medford’s central business district. Currently seven major commercial airlines, flying to 13 US cities, utilize the airport. The Airport’s revenues exceeded its expenditures by $8,460,611. Revenue from 2020 to 2021 decreased only slightly due to the receipt of COVID- 19 related grant funds to replace revenues lost from the pandemic-related reduction in air travel. The significant decrease in expenses from 2020 to 2021 is due to decreased capital-related airport improvement projects during 2021. While not explicitly visible in the revenues and expenses com- parison chart, the COVID-19 pandemic has had a major impact on the yearly passenger departures and arrivals at the airport. According to the Monthly Airport Activity Report published by the Airport, calendar year 2020 passenger counts were down by almost 600,000 passengers. While passenger numbers improved in 2021, they’re not quite back to pre- pandemic levels. * December passenger count was estimated at 85% of the total December 2019 actual count. Photo of the AN 124, one of the world’s largest commer- cial aircraft landing at the airport, with Roxy Ann Peak in the background. The COVID-19 pandemic canceled many of the events at the Expo. At the onset of the pandemic the fairgrounds were used as a personal protective equipment (PPE) depot to collect and distribute PPE. In September 2020, two local wildfires destroyed homes and businesses, leaving more than 4,200 County residents without a home. The fairgrounds were used to provide services, supplies, and shelters for individuals and animals impacted by the wildfires. In December 2020, the fairgrounds began to provide ongoing COVID-19 testing and drive-thru vaccination clinics. State and Federal funding received by the Expo was able to offset the lost revenue from the canceled events, resulting in the positive change in fund balance. Images from left to right: 1) Emergency shelter for people displaced by wild- fires, 2) PPE center, 3) Station setup to provide referrals to good and services for fire victims, and 4) COVID-19 drive thru vaccination clinic. $2,882 $2,625 $1,900 $3,023 $2,571 $1,255 2019 2020 2021 Revenues Expenses 1 2 3 4 $21,493 $19,925 $19,753 $14,119 $20,411 $11,293 2019 2020 2021 Revenues Expenses Equipment - 2.73% Construction in Progress - 2.79% Software - 0.20% 2020-2021 Popular Annual Financial Report - Page 6 Capital Assets Infrastructure - 31.05% Buildings & Improvements - 53.28% Land - 9.96% Road maintenance by Jackson County Roads Department. Sheriff’s Department K9 Capo with Handler Deputy Brent Hagdahl Jackson County stays vital and resilient by maintaining $372 million in assets, managing associated debt responsibly, and planning for the future. (amounts in thousands & net of accumulated deprecation) Business- Type Activities Total Governmental Activities Infrastructure $0 $118,440 $118,440 Buildings & Improvements $113,062 $182,798 $69,736 Land $26,703 $50,867 $24,164 Equipment $1,499 $10,967 $9,468 Construction in Progress $756 $7,998 $7,242 Software $0 $727 $727 Total Capital Assets $142,020 $371,797 $229,777 There were no significant capital asset transactions in the current year. The decrease in total capital assets is due to annual depreciation. Long Term Capital Facility Planning Jackson County’s jail has been at capacity for many years now and is too small for the County’s current population. All of the city police departments, the County Sheriff patrols, the District Attorney’s Office, the State court system, Community Justice, and mental health and addiction service agencies are experiencing significant workload impacts as a result. More importantly, our citizens are not getting the services they need and it is impacting the health and safety of our communities. Land has been purchased intended for a new facility that would increase total capacity from approximately 300 to 700 and allow for future expansions. At this time it is unknown when this project will be approved . During fiscal year 2020-2021, Jackson County experienced the COVID-19 pandemic, two wildland wildfires, and a broken water main which flooded the first floor of the Health and Human Services’ building. We also deal with In- terstate 5 (I-5) closures almost every year due to snow events in the moun- tain passes. Buildings at the Expo were used for vaccination centers, an evacuation center for those who lost homes in the fires, office space due to the flood, and a place to wait out the snow storms for stranded travelers. These events, in combination with a lack of indoor recreational facilities, highlight the need for additional Expo facilities. The County is currently reviewing options for a multi-purpose recreational facility at the Expo. (Information found on page 1 of the ACFR.) Jackson County Jail located in Medford, OR. (Amounts in thousands. Legend in the pictures to the right.) Total Capital Assets Trend Capital Asset Changes Snow plow operated by Jackson County Roads Department. Long-Term Debt $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 GO Revenue & SA Net Bonded Debt Debit Limit Available 2020-2021 Popular Annual Financial Report - Page 7 General Obligation (GO) bonds are backed by the full faith and credit of the County. The County issued GO bonds in 2020 to upgrade and replace outdated emergency communications equip- ment for the Emergency Communication of Southern Oregon (ECSO), the County’s 9-1-1 emergency call center. ECSO bond proceeds totaled $28,210,287, which includes a premium of $4,340,287 due to favorable market conditions. The par value (repayment amount) of the bonds is $23,870,000. These bonds are budgeted to be paid in full during the fiscal year ending June 30, 2040. Two airport revenue bond series (A & B) were issued in 2007 to finance construction of the current airport terminal. Series A bonds were partially refunded in 2013 and Series B bonds were fully refunded in 2016 to obtain lower interest rates. The Airport has pledged future revenue from passenger facility charges (a fee added to the airline ticket price) to repay this debt. These bonds are budgeted to be paid in full during the fiscal year ending June 30, 2038. Special assessments are a combination of bonds issued and loans made on behalf of property owners to finance road improvement projects. The bonds and loans are paid using tax payments received from assessment contracts entered into with property owners who benefit from the improvement projects. Bancroft bonds were issued in 2009 to fund improvements to the Ironwood/Leafwood Local Improvement District area. These bonds mature on March 1, 2024. At June 30, 2020 the County had $36,748,682 in outstanding debt. Long-Term Debt Trend Debt issued in Jackson County maintains an “Aa2” rating from Moody’s Investor Service, which indicates the County has a VERY STRONG capacity to meet its financial commitments and translates to interest rate savings when the County issues bonds. Outstanding Debt Amounts in thousands $0 $5,000 $10,000 $15,000 $20,000 $25,000 Special Assessments Airport Revenue General Obligation 2009 2013 2016 2020Debt issued in Debt Limits The County is subject to a debt limit on GO bonds to 2% of the real market value of all taxable property within Jackson County. Revenue bonds and special assessment (SA) debt is limited to 1% of the real market value. Real Market Value for tax year 2020-21 was $34,601,251,454. The legal debt limit for GO bonds is $692,025,029. The County only uses 3.96% of its GO bond limit. The legal debt limit for revenue bonds and SA debt is $346,012,515. The County only uses 4.20% of its revenue bond and SA debt limit. Lower Table Rock in Central Point, OR — Photo by Above the Northwest 2020-2021 Popular Annual Financial Report - Page 8 Financial Reporting Awards Jackson County prides itself in having received the prestigious “Triple Crown” in recognition of governments who have received Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting (38th consecutive year), Popular Annual Financial Reporting Award (6th consecutive year), and the Distinguished Budget Presentation Award (37th consecutive year). Jackson County Courthouse 10 S Oakdale Ave Medford, OR 97501 PAFR Prepared by: Department of Finance Shannon Bell, Finance Director Have comments, questions, or suggestions regarding this PAFR? You can email finance@jacksoncounty.org Stay Connected Online Services Get notifications about emergencies and other community alerts via your home phone, cell phone, or email. Where do your property tax dollars go? 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