Lane County, Oregon Statement of Net Assets June 30, Governmental Activities. Business-type

Lane County, Oregon

Statement of Net Assets

June 30, 2010 Governmental Activities Business-type Activities Total Assets Current assets

Cash and cash equivalents $ 152,238,503 $ 32,077,526 $ 184,316,029

Investments - 3,748,272 3,748,272

Receivables (net of uncollectibles) 22,405,666 3,786,862 26,192,528 Internal balances (5,542,961) 5,542,961

-Inventories 2,621,198 66,508 2,687,706

Prepaids 117,218 64,240 181,458

Total current assets 171,839,624 45,286,369 217,125,993

Noncurrent assets Restricted assets:

Cash and cash equivalents - 571,486 571,486

Investments 1,515,500 2,339,864 3,855,364

Investments in limited partnerships - 1,623,468 1,623,468

Deferred charges 870,913 1,232,894 2,103,807

Deposits 50,000 3,683 53,683

Loans receivable - 4,947,655 4,947,655

Net pension asset 61,825,445 - 61,825,445

Capital assets:

Land and construction in progress 25,387,651 26,000,507 51,388,158 Other capital assets (net of accumulated depreciation) 314,725,096 49,295,555 364,020,651

Total noncurrent assets 404,374,605 86,015,112 490,389,717

Total assets 576,214,229 131,301,481 707,515,710

Liabilities Current liabilities

Accounts payable 9,391,014 2,027,329 11,418,343

Wages and benefits payable 3,829,748 485,139 4,314,887 Due to other governments 4,267 - 4,267

Interest payable 571,036 61,705 632,741

Unearned revenue 152,297 989,247 1,141,544

Customer deposits 253,133 274,137 527,270

Current portion of noncurrent liabilities 15,387,630 2,609,024 17,996,654

Total current liabilities 29,589,125 6,446,581 36,035,706

Noncurrent liabilities 116,449,022 9,850,424 126,299,446

Total liabilites 146,038,147 16,297,005 162,335,152

Net assets

Invested in capital assets, net of related debt 292,767,770 67,896,765 360,664,535 Restricted for:

Capital projects 584,303 - 584,303

Debt service 531,466 - 531,466

Health and human services 5,680,711 - 5,680,711 Special revenue / services 5,199,504 - 5,199,504

Roads 45,128,590 - 45,128,590

Title III projects 4,307,730 - 4,307,730

LaneCare 12,441,229 - 12,441,229

Housing and community services - 2,339,864 2,339,864

Self insurance 1,515,500 - 1,515,500

Other purposes 2,283,242 - 2,283,242

Unrestricted 59,736,037 44,767,847 104,503,884

Statement of Activities

For the Fiscal Year Ended June 30, 2010

Functions/Programs Direct Expenses

Governmental activities

General government $ 34,018,987 $ (11,049,760) Public safety 68,664,067 3,492,705 Public health and welfare 76,820,035 3,907,570

Parks 2,155,584 109,647

Roads and bridges 36,188,699 1,840,794 Community development 6,125,045 311,560 Interest on long-term debt 6,981,018 -Total governmental activities 230,953,435 (1,387,484) Business-type activities

Lane events center 3,936,005 4,836 Solid waste disposal 13,143,435 338,932 Regional information systems 5,803,299 381,627 Housing and community services 25,147,875 -Corrections commissary 246,022 10,728 Land management 3,783,401 651,361 Total business-type activities 52,060,037 1,387,484 Total government $ 283,013,472 $

-The accompanying notes are an integral part of the financial statements.

Operating Capital Charges for Services Grants and Contributions Grants and Contributions Governmental Activities Business-type Activities _Total 6,709,507 $ $ 10,651,409 $ - $ (5,608,311) $ - $ (5,608,311) 19,303,348 15,261,191 - (37,592,233) - (37,592,233) 42,441,369 40,733,277 - 2,447,041 - 2,447,041 1,034,273 420,454 - (810,504) - (810,504) 3,147,249 34,676,857 - (205,387) - (205,387) 3,709,604 723,577 - (2,003,424) - (2,003,424) - - (6,981,018) - (6,981,018) 76,345,350 102,466,765 - (50,753,836) - (50,753,836) 2,639,207 41,963 - - (1,259,671) (1,259,671) 15,197,089 12,964 - - 1,727,686 1,727,686 8,003,950 - - - 1,819,024 1,819,024 3,616,689 19,794,980 703,992 - (1,032,214) (1,032,214) 60,756 175,000 - - (20,994) (20,994) 3,646,894 10 - - (787,858) (787,858) 33,164,585 20,024,917 703,992 - 445,973 445,973 109,509,935 $ $ 122,491,682 $ 703,992 (50,753,836) 445,973 (50,307,863) General Revenues: Property taxes 36,042,688 - 36,042,688 Transient room taxes 3,617,406 - 3,617,406 Car rental taxes 1,097,859 - 1,097,859 O&C timber receipts 12,205,277 - 12,205,277 Unrestricted investment earnings 1,745,829 804,841 2,550,670 Grants not restricted to specific programs 5,063,935 - 5,063,935

Transfers (863,224) 863,224

-Total general revenues and transfers 58,909,770 1,668,065 60,577,835 Change in net assets 8,155,934 2,114,038 10,269,972 Net assets, June 30, 2009 422,020,148 112,890,438 534,910,586

Net assets, June 30, 2010 $ 430,176,082 $ 115,004,476 $ 545,180,558

Program Revenues

Balance Sheet

Cash and cash equivalents $ 24,095,911 $ 44,713,720 $ 3,800,313 Receivables (net of uncollectibles):

Investment earnings 160,898 249,016 21,136 Property taxes 2,105,113 - -Accounts 3,079,591 466,377 862,001 Intergovernmental 2,065,589 2,052,627 2,327,181 Other - - -Interest on balances 1,582,240 - -Due from other funds 27,104 - -Interfund loans receivable - - 250,000 Inventories 206,086 1,554,163 -Total assets $ 33,322,532 $ 49,035,903 $ 7,260,631 Liabilities

Accounts payable $ 888,153 $ 1,515,520 $ 648,042 Wages and benefits payable 1,769,751 536,043 355,422 Due to other funds 1,027,777 328,630 203,055 Due to other governments 4,267 - -Deferred revenue 5,525,740 267,704 10,000 Interfund loans payable - - 250,000 Customer deposits 148,900 - -Advances from other funds - 500,000 -Total liabilities 9,364,588 3,147,897 1,466,519 Fund balances

Reserved for inventories 206,086 1,554,163 -Unreserved 23,751,858 44,333,843 5,794,112 Unreserved, reported in nonmajor:

Special revenue funds - - Debt service funds - - Capital projects funds - - -Total fund balances 23,957,944 45,888,006 5,794,112 Total liabilities and fund balances $ 33,322,532 $ 49,035,903 $ 7,260,631

Health and

Human Services LaneCare

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets

For the Fiscal Year Ended June 30, 2010

Total fund balances - governmental funds $ 111,370,883

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

Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the

statement of net assets. $ 47,881,028

An adjustment is required to eliminate net internal service fund losses back to the activities that helped finance them. The adjustment

related to enterprise activities is required in this reconciliation. (5,300,764) 42,580,264 Capital assets are not financial resources in governmental funds, but are

reported in the statement of net assets at their depreciable value:

Land 9,833,984

Construction in progress 15,553,667

Buildings and land improvements 118,816,909

Equipment and furniture 13,325,882

Infrastructure 326,035,190

483,565,632

Less accumulated depreciation (155,875,697) 327,689,935

Prepaid expenses are not financial assets in governmental funds, but are

reported in the statement of net assets at cost. 117,218

Certain assets will be collected after year-end but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in governmental funds:

Receivables:

Property taxes 2,178,765

Court fines 3,533,015

Road assessments 131,728 5,843,508

Debt issuance costs are expensed in governmental funds in the year paid, but are capitalized on the statement of net assets as deferred charges and amortized over the life of the debt:

Bonds payable 318,488 318,488

Certain liabilities are not due and payable in the current period, and are therefore not reported in governmental funds:

Compensated absences payable (5,888,125)

Interest payable (294,239)

Bonds payable, net of premiums and discounts (51,561,850) (57,744,214)

Total net assets - governmental activities $ 430,176,082

Statement of Revenues, Expenditures, and Changes in Fund Balances

Governmental Funds

For the Fiscal Year Ended June 30, 2010

General Road

Special Revenue / Services Revenues

Taxes and assessments, net of refunds $ 33,849,035 $ 132,183 $ 3,616,643 Licenses and permits 785,623 136,228 -Intergovernmental 30,716,458 34,055,137 18,997,827 Charges for services 3,296,554 2,078,051 1,599,320 Fines, forfeitures and penalties 601,610 - 2,065,760 Administrative and facility charges - - 37,037 Investment earnings 484,762 761,268 74,559 Sale and rental of property 808,707 242,240 184,695 Total revenues 70,542,749 37,405,107 26,575,841 Expenditures:

Current:

General government 10,329,152 254,270 861,000 Public safety 54,735,338 - 16,988,142 Public health and welfare - - 2,352,301 Parks - - 17,658 Roads and bridges - 30,133,857 -Community development - - 3,241,398 Debt service:

Principal - - -Interest - - 1,586 Bond issuance costs - - -Capital outlay 118,657 7,003,833 3,379,721 Total expenditures 65,183,147 37,391,960 26,841,806 Excess (deficiency) of revenues

over (under) expenditures 5,359,602 13,147 (265,965) Other financing sources (uses):

Transfers in 955,390 54,219 4,196,405 Transfers out (7,990,700) (1,331,948) (2,236,733) Bonds issued - - -Refunding bonds issued - - -Bond premium - - -Payment to refunded bond escrow agent - - -Total other financing sources (uses) (7,035,310) (1,277,729) 1,959,672 Net change in fund balances (1,675,708) (1,264,582) 1,693,707 Fund balance, June 30, 2009 25,625,277 47,176,528 4,100,405 Increase (decrease) in inventories 8,375 (23,940) -Fund balance, June 30, 2010 $ 23,957,944 $ 45,888,006 $ 5,794,112

Health and

Human Services LaneCare

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2010

Net change in fund balances - governmental funds $ 10,112,937 Amounts reported for governmental activities in the statement

of activities are different because:

Internal service funds are used by management to charge the costs of certain activities to individual funds. The change in internal service fund net assets is included with governmental activities in the statement of activities:

Change in net assets $ 5,941,684

An adjustment is required to eliminate net internal service fund activity back to the activities that helped finance them. The adjustment

related to enterprise activities is required in this reconciliation. (1,207,319) 4,734,365 Governmental funds report capital outlays as expenditures; in the statement of

activities the cost of those assets is allocated over their estimated useful lives as depreciation expense:

Construction in progress 13,995,119

Buildings and land improvements 86,175

Equipment and furniture 1,185,281

Infrastructure 9,847,386

Depreciation expense (13,105,980) 12,007,981

Governmental funds do not report prepaid expenses; in the statement of

activities prepayments are expensed when incurred. (65,559) Certain revenues may not be collected for several months after year end; they

are not considered "available" and are deferred in the governmental funds: Receivables:

Property taxes 242,212

Court fines (1,244,844)

Road assessments (7,095) (1,009,727)

The issuance of long-term debt (notes, bonds, capital leases) provides current financial resources to governmental funds; the repayment of long-term debt consumes current financial resources in the governmental funds. Current period long-term debt transactions were:

Bond Issuance costs 160,965

Bond Proceeds (27,930,000)

Bond Premium (1,275,696)

Bond principal payments 6,880,000

Deposits (mortgage reserves) (1,061,662)

Note principal payments 6,134,713 (17,091,680)

Increases in inventory in governmental funds increase expenses 25,601 Note and bond premiums, discounts and issuance costs are reported in

governmental funds in the year received or paid, but are capitalized on the statement of net assets and amortized over the life of the notes and bonds:

Note issuance cost amortization (118,156)

Bond premium amortization 75,135

Bond discount amortization (7,579)

Bond issuance cost amortization (47,323) (97,923) Some items 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:

Increase in accrued interest (120,137)

Increase in accrued compensated benefits (322,788) (442,925) The net effect of various miscellaneous transactions involving

Lane County, Oregon

Statement of Fund Net Assets

Proprietary Funds June 30, 2010 Lane Events Center Solid Waste Disposal Regional Information Systems Housing and Community Services Other Enterprise Funds Total Enterprise Funds Governmental Activities-Internal Service Funds Assets Current assets

Cash and cash equivalents $ 596,212 $ 23,544,435 $ 4,045,126 $ 2,332,138 $ 1,559,615 $ 32,077,526 $ 44,607,740 Investments - - - 3,748,272 - 3,748,272 -Receivables (net of uncollectibles):

Investment earnings 3,403 129,662 20,186 - 6,612 159,863 245,488 Accounts 24,741 1,163,930 46,642 62,432 8,738 1,306,483 156,771 Intergovernmental - 495 - 983,783 - 984,278 80,630 Other - - - 1,336,238 - 1,336,238 -Due from other funds - - - - 2,516,427 Inventories 11,797 - - 54,711 - 66,508 740,024 Prepaids 10,132 - - 54,108 - 64,240 -Total current assets 646,285 24,838,522 4,111,954 8,571,682 1,574,965 39,743,408 48,347,080 Noncurrent assets

Advances to other funds - 500,000 - - - 500,000 -Restricted assets:

Cash and cash equivalents - - - 571,486 - 571,486 -Investments - - - 2,339,864 - 2,339,864 1,515,500 Investments in limited partnerships - - - 1,623,468 - 1,623,468 -Deferred charges - - - 1,232,894 - 1,232,894 552,425 Deposits - - - 3,683 - 3,683 50,000 Loans receivable - - - 4,947,655 - 4,947,655 -Net pension asset - - - - 61,825,445 Capital assets:

Land 1,070,568 2,162,107 - 8,859,865 - 12,092,540 -Buildings and land improvements 24,233,581 20,006,364 - 44,999,162 - 89,239,107 235,597 Equipment and furniture 2,227,688 1,587,759 4,527,871 2,222,070 49,485 10,614,873 29,283,813 Construction in progress 70,854 4,917,225 8,114,119 805,769 - 13,907,967 -Accumulated depreciation (15,886,505) (7,494,864) (3,196,277) (23,934,618) (46,161) (50,558,425) (17,096,598) Total noncurrent assets 11,716,186 21,678,591 9,445,713 43,671,298 3,324 86,515,112 76,366,182 Total assets 12,362,471 46,517,113 13,557,667 52,242,980 1,578,289 126,258,520 124,713,262 Liabilities

Current liabilities

Accounts payable 47,065 979,132 280,182 641,895 79,055 2,027,329 1,781,867 Wages and benefits payable 31,612 190,533 119,200 60,908 82,886 485,139 245,924 Compensated absences payable 33,577 280,357 177,653 374,968 113,809 980,364 405,505 Claims payable - 227,000 - - - 227,000 3,384,000 Due to other funds 21,006 121,205 64,683 - 50,909 257,803 140,969 Interest payable - - - 61,705 - 61,705 276,797 Unearned revenue 194,460 - - 794,787 - 989,247 -Customer deposits - - - 274,137 - 274,137 -Notes payable 38,829 - - 1,307,831 - 1,346,660 -Bonds payable - - - 55,000 - 55,000 1,690,000 Total current liabilities 366,549 1,798,227 641,718 3,571,231 326,659 6,704,384 7,925,062 Noncurrent liabilities

Escrow deposits - - - 331,810 - 331,810 -Net OPEB obligation - - - - 2,989,937 Notes payable 3,475 - - 5,252,945 - 5,256,420 -Bonds payable (net of unamortized discounts - - - 741,217 - 741,217 65,917,235 Landfill closure and postclosure care liability - 3,520,977 - - - 3,520,977 -Total noncurrent liabilities 3,475 3,520,977 - 6,325,972 - 9,850,424 68,907,172 Total liabilities 370,024 5,319,204 641,718 9,897,203 326,659 16,554,808 76,832,234 Net assets

Invested in capital assets, net of related debt 11,673,882 21,178,591 9,445,713 25,595,255 3,324 67,896,765 12,422,812 Restricted for:

Housing and community services - - - 2,339,864 - 2,339,864 -Self insurance - - - - 1,515,500 Unrestricted 318,565 20,019,318 3,470,236 14,410,658 1,248,306 39,467,083 33,942,716 Total net assets $ 11,992,447 $ 41,197,909 $ 12,915,949 $ 42,345,777 $ 1,251,630 109,703,712 $ 47,881,028

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 5,300,764

Net assets of business-type activities $ 115,004,476

The accompanying notes are an integral part of the financial statements.

Statement of Revenues, Expenses, and Changes in Fund Net Assets

Proprietary Funds

For the Fiscal Year Ended June 30, 2010

Lane Events Center

Solid Waste Disposal Operating revenues

Licenses and permits $ - $ -Intergovernmental - -Charges for services 1,426,862 14,613,791 Rents pledged as security for revenue bonds - -Fines, forfeitures and penalties - 1,697 Administrative and facility charges - -Sale and rental of property 1,212,345 580,621 Total operating revenues 2,639,207 15,196,109 Operating expenses

Personnel services 1,192,205 6,598,434 Materials and services 1,900,133 6,586,877 Landfill closure and postclosure care costs - 126,315 Depreciation 1,010,727 746,202 Total operating expenses 4,103,065 14,057,828 Operating income (loss) (1,463,858) 1,138,281 Nonoperating revenues (expenses)

Intergovernmental 41,963 12,964 Contributions to other governments - -Investment earnings 10,761 434,332 Interest expense (5,737) -Amortization of net pension asset - -Amortization of bond issuance costs - -Gain (loss) on capital asset disposal - 980 Total nonoperating revenues (expenses) 46,987 448,276 Income (loss) before contributions and transfers (1,416,871) 1,586,557 Capital grants - -Capital contributions - -Transfers in 584,604 -Transfers out - (1,454,580) Change in net assets (832,267) 131,977 Total net assets, June 30, 2009 12,824,714 41,065,932 Total net assets, June 30, 2010 $ 11,992,447 $ 41,197,909 The accompanying notes are an integral part of the financial statements.

Regional Information Systems Housing and Community Services Other Enterprise Funds Total Enterprise Funds Governmental Activities-Internal Service Funds -$ $ - $ 1,550,566 $ 1,550,566 $ 19,794,980 - 19,794,980 -8,003,950 3,185,451 1,941,632 29,171,686 74,311,522 431,238 - 431,238 - 77,596 79,293 274 - 136,397 136,397 1,017,906 - 1,459 1,794,425 9,273 8,003,950 23,411,669 3,707,650 52,958,585 75,338,975 2,912,625 6,007,456 2,582,186 19,292,906 8,014,131 3,147,671 17,666,551 2,292,203 31,593,435 54,343,462 - - 126,315 -388,619 1,185,762 9,112 3,340,422 2,548,648 6,448,915 24,859,769 4,883,501 54,353,078 64,906,241 1,555,035 (1,448,100) (1,175,851) (1,394,493) 10,432,734 - 175,010 229,937 141,354 - - (7,677) 63,016 275,955 20,777 804,841 1,102,490 (288,106) (7,919) (301,762) (4,818,531) - - - (1,434,310) - - - (42,648) - - 980 73,618 63,016 (12,151) 187,868 733,996 (4,985,704) 1,618,051 (1,460,251) (987,983) (660,497) 5,447,030 703,992 - 703,992 - - - 17,135 - 1,768,200 2,352,804 477,519 (35,000) - - (1,489,580) -1,583,051 (756,259) 780,217 906,719 5,941,684 11,332,898 43,102,036 471,413 41,939,344 12,915,949 $ $ 42,345,777 $ 1,251,630 $ 47,881,028 Adjustment to reflect the consolidation of internal

service fund activities related to enterprise funds 1,207,319 Change in net assets of business-type activities $ 2,114,038

Statement of Cash Flows

Proprietary Funds

For the Fiscal Year Ended June 30, 2010

Lane Solid Waste Events Center Disposal Cash flows from operating activities

Receipts from customers and users $ 1,394,866 $ 14,547,067 Receipts from facilities rent 1,212,345 580,621 Receipts from interfund services - -Payments to employees (711,245) (3,805,769) Payments to suppliers (1,902,638) (3,284,515) Payments for interfund services (517,672) (5,607,608) Net cash provided (used) by operating activities (524,344) 2,429,796 Cash flows from noncapital financing activities

Increase in line of credit - -Intergovernmental subsidies 41,963 13,234 Principal paid on pension bonds - -Interest paid on pension bonds - -Escrow deposits - -Interfund loans granted - (500,000) Interfund loan repayment received - 1,159,955 Interfund loan repayments made - -Transfers in 584,604 -Transfers out - (1,192,270) Net cash provided (used) by noncapital financing activities 626,567 (519,081) Cash flows from capital and related financing activities

Capital Grants - -Payment of development costs - -Principal paid on long-term debt (72,428) -Interest paid on long-term debt (5,737) -Proceeds from long-term debt - -Proceeds from sale of property - 980 Purchases of capital assets (51,217) (3,159,131) Net cash provided (used) by capital and related financing activities (129,382) (3,158,151) Cash flows from investing activities

Maturity of investments - -Purchase of investments - -Change in loans receivable - -Investment earnings 9,979 448,886 Net cash provided (used) by investing activities 9,979 448,886 Net increase (decrease) in cash and cash equivalents (17,180) (798,550) Cash and cash equivalents, June 30, 2009 613,392 24,342,985 Cash and cash equivalents, June 30, 2010 $ 596,212 $ 23,544,435 Reconciliation of operating income (loss) to

net cash provided (used) by operating activities:

Operating income (loss) $ (1,463,858) $ 1,138,281 Adjustments to reconcile operating income (loss)

to net cash provided (used) by operating activities

Landfill closure and postclosure care costs - 126,315 Depreciation 1,010,727 746,202 (Increase) decrease in receivables 53,525 (68,421) (Increase) decrease in due from other funds - -(Increase) decrease in inventories 994 -(Increase) decrease in prepaids 12,309 -Increase (decrease) in accounts payable (44,142) 452,507 Increase (decrease) in wages and benefits payable (3,633) 17,161 Increase (decrease) in compensated absences payable (855) 30,692 Increase (decrease) in claims payable - (25,000) Increase (decrease) in due to other funds (3,890) 12,059 Increase (decrease) in unearned revenue (85,521) -Increase (decrease) in customer deposits - -Increase (decrease) in net OPEB obligation - -Net cash provided (used) by operating activities $ (524,344) $ 2,429,796 Reconciliation to Statement of Fund Net Assets

Cash and cash equivalents $ 596,212 $ 23,544,435 Restricted cash - -Cash and cash equivalents, June 30, 2010 $ 596,212 $ 23,544,435 Noncash investing, capital, and financing activities:

Other Total Governmental Regional Housing and Enterprise Enterprise Activities-Internal Information Systems Community Services Funds Funds Service Funds

Statement of Fiduciary Net Assets

Property Tax Agency June 30, 2010

Property Tax Agency

Assets

Current assets

Cash and cash equivalents $ 4,568,070

Receivables (net of uncollectibles):

Interest 2,060

Property taxes 23,334,105

Accounts 127,333

Total current assets 28,031,568

Total assets $ 28,031,568

Liabilities

Current liabilities

Accounts payable $ 36,507

Due to other governments 27,995,061

Total current liabilities 28,031,568

Total liabilites $ 28,031,568