JACKSON COUNTY, OREGON COMPREHENSIVE ANNUAL ...

JACKSON COUNTY, OREGON

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2010

Prepared by: Department of Finance Shannon Bell, Finance Director

TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal i - v List of Principal Officials vi Organization Chart of Jackson County, Oregon vii Certificate of Achievement for Excellence in Financial Reporting viii FINANCIAL SECTION Independent Auditor's Report ix - x Management's Discussion and Analysis xi - xxii Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets 1 Statement of Activities 2 Fund Financial Statements: Balance Sheet - Governmental Funds 3 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: General Fund 6 to 7 General Road Fund 8 Health and Human Services Fund 9 Special Revenue Fund 10 to 11 Statement of Net Assets - Proprietary Funds 12 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 13 Statement of Cash Flows - Proprietary Funds 14 Statement of Fiduciary Net Assets - Fiduciary Funds 15 Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 16 Notes to Financial Statements 17 to 51

Page Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet 52 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 53 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: County Schools Fund 54 Enhanced Law Enforcement District Fund 55 Capital Projects Fund 56 to 57 White City Capital Fund 58 Library Capital Project Fund 59 White City Development Fund 60 White City Lighting District 61 Library Debt Service Fund 62 Juvenile Debt Service Fund 63 Urban Renewal Agency Debt Service Fund 64 Permanent Fund 65 Enterprise Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual: Exposition Park Enterprise Fund 66 Airport Enterprise Fund 67 Recreation Enterprise Fund 68 Internal Service Funds: Combining Statement of Net Assets 69 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 70 Combining Statement of Cash Flows 71

Page Combining and Individual Fund Statements and Schedules: (Contd) Internal Service Funds: (Contd) Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual: Motor Pool Fund 72 Computer Replacement Fund 73 Self-Insurance Fund 74 Central Services Fund 75 to 76 Fiduciary Fund Types: Combining Statement of Fiduciary Net Assets - Pension Trust Funds 77 Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds 78 Combining Statement of Fiduciary Net Assets - Agency Funds 79 Combining Statement of Changes in Changes in Assets and Liabilities – Agency Funds 80 to 81 Capital Assets Used in the Operation of Governmental Funds: Comparative Schedule by Source 82 Schedule by Function and Activity 83 to 84 Schedule of Changes by Function and Activity 85 to 86 Supplementary Schedules: Schedule of Cash Receipts and Turnovers: Assessor 87 County Clerk 88 Sheriff 89 Surveyor 90 Justice Court District 91 Schedule of Property Tax Transactions and Outstanding Balances 92 Schedule of Property Taxes Receivable by Levy Year by Fund - Last Ten Fiscal Years 93 Schedule of Property Tax Collections by Levy Year by Fund - Last Ten Fiscal Years 94 STATISTICAL SECTION (unaudited) Net Assets by Component – Last Nine Fiscal Years 95 Changes in Net Assets – Last Nine Fiscal Years 96 to 97

Page Fund Balances, Governmental Funds – Last Nine Fiscal Years 98 Changes in Fund Balances, Governmental Funds – Last Nine Fiscal Years 99 to 100 Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years 101 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years 102 Principal Property Tax Payers – Current Year and Nine Years Ago 103 Property Tax Levies and Collections - Last Ten Fiscal Years 104 Ratios of Outstanding Debt by Type 105 Legal Debt Margin Information 106 Pledged-Revenue Coverage – Last Nine Fiscal Years 107 Demographic and Economic Statistics – Last Ten Fiscal Years 108 Principal Employers – Current Year 109 Full-time Equivalent County Government Employees by Function/Program – Last Ten Fiscal Years 110 Operating Indicators by Function – Last Ten Fiscal Years 111 to 112 Capital Asset Statistics by Function – Last Ten Fiscal Years 113 Annual Disclosure Information 114 to 122 DISCLOSURES IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND OMB CIRCULAR A-133 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 123 to 124 Independent Auditor's Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Program and on the Passenger Facility Charge Program and on the Internal Control Over Compliance in Accordance With OMB Circular A-133 125 to 126 Schedule of Expenditures of Federal Awards 127 to 131 Notes to Schedule of Expenditures of Federal Awards 132 Schedule of Findings and Questioned Costs 133 INDEPENDENT AUDITOR'S COMMENTS (Disclosures and Comments Required by State Regulations) 134 to 135

INTRODUCTORY SECTION

FINANCIAL SECTION

MANAGEMENT'S DISCUSSION AND ANALYSIS

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Management’s Discussion and Analysis

We offer readers of Jackson County’s financial statements the following narrative and analysis of the county’s financial activities for the fiscal year ended June 30, 2010. We encourage readers to consider this information in conjunction with the letter of transmittal, which begins on page i, and the financial statements beginning on page 1. Financial Highlights

• Jackson County’s assets exceeded its liabilities at the close of the fiscal year by $470,141,421 (net assets). Of this amount, $100,731,122 (unrestricted net assets) may be used to meet the county’s ongoing obligations to citizens and creditors. Note that with the government-wide financial reporting model, the total net assets figure includes capital assets net of accumulated depreciation.

• At the close of the year, the county’s governmental funds reported combined ending fund balances of $128,016,941, a decrease of $278,467 or .2% from the prior year. Of this amount, $105,908,632, a decrease of $1,811,786 or 1.6%, is available for spending at the county’s discretion (unreserved fund balance). This was largely due to the completion of capital projects in the capital projects fund as well as the use of saved tax increment revenues for capital improvements within the urban renewal district.

• At the end of the year, unreserved fund balance for the general fund was $71,780,931 or 110.2% of total general fund expenditures plus transfers to other funds. This represents an increase of $6,048,691 or 9.2% from the previous year. This is primarily due to the planned savings of part of the O&C replacement funds to be able to continue various planned capital projects.

• Total bonded debt decreased by $5,319,112 during the year. This is attributable to regular payments of debt maturing during the year.

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Jackson County’s basic financial statements. Under the government-wide reporting model, the basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This 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. One of the strengths of the government-wide financial statements is that they eliminate what has had the appearance of double counting of internal service fund (charge-back) operations. These statements reflect the charged expenses in the programs for which services were provided, but do not reflect the expenses a second time as the costs that comprise these charges. The statement of net assets, a component of the government-wide financial statements, presents information on all of the county’s assets and liabilities, with the difference between the two reported as net assets. The county’s capital assets (land, buildings, equipment, software and infrastructure) are included in this statement and reported net of their accumulated depreciation. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the county is improving or deteriorating.

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The statement of activities presents revenue and expense information showing how the county’s net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that may result in cash flow in future fiscal periods (e.g., uncollected property taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the county that are principally supported by intergovernmental revenues and property taxes (governmental activities) from other functions that are designed 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; elections and records; community justice and safety; culture and recreation; health and human services; planning, development and natural resources; and transportation. Business-type activities include the airport, exposition park and recreation (parks). The government-wide financial statements can be found on pages 1 and 2 of this report. Fund financial statements. A fund is a grouping of related accounts (revenues, expenses, assets and liabilities) that is used to control resources that have been segregated for specific activities. Jackson County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds utilized by 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 the balances of spendable resources available at fiscal year-end. Such information may be useful in evaluating a government’s near-term financing requirements. Since the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The county maintains fourteen individual governmental funds; 1 general fund, 5 special revenue funds, 3 debt service funds and 5 capital project funds). 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, the general road special revenue fund, the health and human services special revenue fund, and the special revenue fund. These are considered to be major governmental funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

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Jackson County adopts an annual appropriation budget for all of its governmental funds. Budgetary comparison statements have been provided to demonstrate budgetary compliance. The basic governmental fund financial statements can be found on pages 3 and 4 of this report. Proprietary funds. Jackson 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 enterprise funds to account for its airport, recreation, and exposition park operations. Internal service funds are an accounting tool used to accumulate and allocate costs internally among the county’s various functions. The county uses internal service funds to account for its self-insurance, motorpool, central services, and computer replacement 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 proprietary fund financial statements provide separate information for each of the three enterprise funds, which are considered to be major funds. Internal service fund operations are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 12 through 14 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 statement because the resources of those funds are not available to support the county’s own programs. The accounting used for fiduciary funds is similar to that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 15 and 16. 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 on pages 19 through 51. Other information. Combining and individual fund statements and schedules can be found starting on page 52 of this report. Government-wide Financial Analysis Net assets, over time, may serve as a useful indicator of a government’s financial position. Jackson County’s assets, including its capital assets net of depreciation, exceeded its liabilities by $470,141,421 at the close of the most recent fiscal year. This is an increase of $13,290,450 or 2.9% from the previous year. Of the net asset total, $315,678,587 (67.1%) represents investments in capital assets, such as land, buildings, machinery & infrastructure, which are used to provide services to citizens but are not liquid assets available for future spending.

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An additional portion of net assets (11.4%) represents resources that are subject to external restrictions on how they may be used. Restricted net assets total $53,731,712, a decrease of $3,800,635 or 6.6% from the previous year. The remaining balance of unrestricted net assets that may be used to meet the county’s ongoing obligations is $100,731,122. This is an increase of $6,535,300 or 6.9% from the previous year, and is largely due to the non-expenditure of O&C replacement funds.

Jackson County's Net Assets

Governmental Business-typeactivities activities Total

6/30/2010 6/30/2009 6/30/2010 6/30/2009 6/30/2010 6/30/2009

Current and other assets 159,944,520$ 161,211,638$ 17,471,132$ 14,029,283$ 177,415,652$ 175,240,921$ Capital assets 252,731,156 250,733,498 112,914,978 108,335,941 365,646,134 359,069,439

Total assets 412,675,676 411,945,136 130,386,110 122,365,224 543,061,786 534,310,360

Long-term liabilities outstanding 41,260,992 45,059,334 20,424,023 20,775,402 61,685,015 65,834,736 Other liabilities 9,155,794 10,463,523 2,079,556 1,161,130 11,235,350 11,624,653

Total liabilities 50,416,786 55,522,857 22,503,579 21,936,532 72,920,365 77,459,389

Net assets: Invested in capital assets,

net of related debt 222,447,664 216,774,136 93,230,923 88,348,666 315,678,587 305,122,802 Restricted 52,117,929 55,928,939 1,613,783 1,603,408 53,731,712 57,532,347 Unrestricted 87,693,297 83,719,204 13,037,825 10,476,618 100,731,122 94,195,822

Total net assets 362,258,890$ 356,422,279$ 107,882,531$ 100,428,692$ 470,141,421$ 456,850,971$

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Jackson County's Changes in Net Assets


2009-10 2008-09 2009-10 2008-09 2009-10 2008-09Revenues:Program revenues:

Charges for services 18,604,440$ 19,646,739$ 9,843,481$ 9,259,816$ 28,447,921$ 28,906,555$ Operating grants and contributions 70,662,037 66,855,532 3,754,743 2,246,617 74,416,780 69,102,149 Capital grants and contributions 680,975 19,752,982 7,130,366 10,600,168 7,811,341 30,353,150

General revenues: Property taxes 37,791,064 41,611,903 - - 37,791,064 41,611,903 Grants and contributions not restricted to specific programs 12,819,817 15,147,500 - - 12,819,817 15,147,500 Unrestricted investment earnings 4,330,137 6,622,784 322,024 483,081 4,652,161 7,105,865

Total revenues 144,888,470 169,637,440 21,050,614 22,589,682 165,939,084 192,227,122

Expenses: General government 16,376,723 12,038,430 - - 16,376,723 12,038,430 Elections & Records 1,973,350 2,039,217 - - 1,973,350 2,039,217 Community justice & safety 45,769,390 42,874,787 - - 45,769,390 42,874,787 Culture & recreation 8,102,856 7,820,286 - - 8,102,856 7,820,286 Health & human services 41,791,404 39,677,149 - - 41,791,404 39,677,149 Planning, development & natural resources 5,605,315 5,914,108 - - 5,605,315 5,914,108 Transportation 17,551,405 33,197,494 - - 17,551,405 33,197,494 Interest on long-term debt 1,572,803 1,773,395 - - 1,572,803 1,773,395 Airport - - 7,647,804 7,761,962 7,647,804 7,761,962 Exposition park - - 2,336,390 2,297,637 2,336,390 2,297,637 Recreation enterprise - - 3,921,194 1,761,045 3,921,194 1,761,045

Total expenses 138,743,246 145,334,866 13,905,388 11,820,644 152,648,634 157,155,510

Increase in net assets before transfers 6,145,224 24,302,574 7,145,226 10,769,038 13,290,450 35,071,612 Transfers (308,613) (471,048) 308,613 471,048 - -

Increase in net assets 5,836,611 23,831,526 7,453,839 11,240,086 13,290,450 35,071,612

Net assets - beginning 356,422,279 332,590,753 100,428,692 89,188,606 456,850,971 421,779,359

Net assets - ending 362,258,890$ 356,422,279$ 107,882,531$ 100,428,692$ 470,141,421$ 456,850,971$

Governmental activities. Governmental activities increased the county’s net assets by $5,836,611, or 43.9% of the total growth. This is $17,994,915 less than last year’s increase of $23,831,526. Total expenses decreased $6,591,620 or 4.5%, and total revenues decreased $24,748,970 or 14.6% for the same period. Key elements of this change are as follows:

• The expense decrease is the result of a prior year return of unused Grant monies of $7,000,000 in the roads department.

• The decrease in revenues, is largely due to the prior year capitalization of infrastructure assets built by others and transferred to the County.

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Expenses and Program Revenues – Governmental Activities

05,000,000

10,000,00015,000,00020,000,00025,000,00030,000,00035,000,00040,000,00045,000,00050,000,000

General government

Elections & records

Community justice & safety

Culture & recreation

Expenses 16,376,723 1,973,350 45,769,390 8,102,856Revenues 7,524,620 1,730,857 17,403,519 1,244,127

05,000,000

10,000,00015,000,00020,000,00025,000,00030,000,00035,000,00040,000,00045,000,000

Health & human services Planning, development & natural resources

Transportation Interest on long-term debt

Expenses 41,791,404 5,605,315 17,551,405 1,572,803

Revenues 40,578,833 3,131,576 17,693,920 0

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Revenues by Source – Governmental Activities

Business-type activities. Business-type activities increased the county’s net assets by $7,453,839 or 56.1% of the total growth. This is $3,786,247 less than last year’s increase of $11,240,086. Total expenses increased $2,084,744 or 17.6% and total revenues decreased $1,539,068 or 6.8% for the same period. Key elements of this change are as follows:

• Airport operations, in total, resulted in an increase of $7,391,152 to net assets. • FAA funding for airport improvements comprise most of the $6,127,366 of capital

contributions this year. The terminal and airside improvements as well as the baggage-handling facility were completed in the current fiscal year. The cargo apron and the remodel of the old terminal were started.

• Expenses increased in the recreation enterprise programs due to the costs incurred in this fiscal year for the removal of Gold Ray Dam (approx $2.3 million).

Expenses and Program Revenues – Business-type Activities

Charges for services13%

Operating grants and contributions

49%

Capital grants0%

property taxes26%

Grants & donations not restricted

9%

Investment earnings3%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Airport Exposition park Recreation enterprise

Expenses 7,647,804 2,336,390 3,921,194Revenues 14,714,898 2,677,784 3,335,908

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Revenues by Source – Business-type activities

Financial Analysis of County Funds As noted earlier, Jackson County uses fund accounting to ensure and demonstrate 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, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the county’s governmental funds reported combined ending fund balances of $128,016,941, a decrease of $278,467 compared to the prior year. $105,908,632 constitutes unreserved fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is reserved to indicate that it is not available for new spending because it already been committed to: 1) debt service ($8,226,755); 2) inventories in the general road fund ($1,313,306); 3) miscellaneous encumbrances ($9,233,938); 4) animal control program ($2,231,077), and; 5) a variety of other restricted purposes ($1,103,233). The general fund is the operating fund of the county utilizing assets not otherwise restricted as to use. It is a major operating fund of the county as are the health and human services special revenue fund, the general road special revenue fund, and the special revenue fund, all of which utilize restricted assets. At the end of the current fiscal year, unreserved fund balance of the general fund was $71,780,931, while the total fund balance was $72,955,273. As a measure of the general fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures plus transfers to other funds. Unreserved fund balance represents 110.2% of total general fund expenditures and transfers to other funds, while the total fund balance represents 112% of the same amount.

Charges for services

47%

Operating grants and contributions

18%

Capital grants and contributions

34%

Investment earnings1%

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Although not reflected in the county’s financial reports as a designation of fund balance, the county anticipates that the first three months of expenditures in the subsequent fiscal year will be substantially covered by the ending fund balance. This is made necessary by the timing of the general fund’s major revenue sources (property taxes and O&C replacement funds), which are not available until the fall. The amount of the fund balance that was budgeted as unappropriated ending fund balance to meet cash flow needs, thereby making it unavailable until the subsequent year, was $9,769,252. The fund balance of the general fund increased by $5,999,316 during the current fiscal year. Key factors were as follows:

• The county is building a “rainy day” fund in anticipation of the loss of federal funds. The non-expenditure of $5,058,121 of current year revenues was added to this fund.

• Property taxes increased $1,829,743 due to increases in assessed valuation (within constitutional limits).

• Interest income decreased $530,042 primarily due to the change in the economy and interest rates.

• General operating expenditures increased by $866,474. This is mostly increases in the cost of personnel in the Community Justice and Safety programs.

The general road fund balance decreased by $ 385,597 (2.6%) to $13,618,860. This was due to the completion of a large street widening and paving project. The Health and Human Services fund balance increased by $2,634,955 (25.8%). The Health Department receives the majority of its funding from the State of Oregon. The increase in fund balance is due to the non-expenditure of mental health program income. The Special Revenue Fund balance decreased by $622,096 largely due to an adjustment necessary to record PL 110-343 funds received as unearned revenues. These funds are required to be obligated by 09/30/2011 or returned. The Other governmental funds fund balances decreased by $7,905,045 (26.9%) to $21,463,638. This change includes an increase in non-major special revenue fund balances of $376,043; a decrease in non-major capital project funds of $8,427,656; an increase in debt service fund balances of $173,159; and a decrease in permanent fund balance of $26,591. The large decrease in the capital project funds is due to the completion of the new SORC/911 Center building project, and the continued remodel of the courthouse building. Proprietary funds. The county’s proprietary funds provide the same type of information found in the government-wide financial statements for its three enterprise funds (airport, recreation, and exposition park), plus a column for the internal service funds.

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General Fund Budgetary Highlights Differences between the original expenditure budget, including operating transfers, and the final amended budget represent a net increase of $712,455 or 1.0%. Major components of the increase were as follows:

• $488,000 reflects additional Title III monies received. • $157,506 reflects a contract between the County and a municipality for sheriff coverage. • The remaining addition was a combination of additional small grants.

The difference between the final amended budget and actual expenditures was $10,010,924. The main reason for this difference is the reserves of $5,354,965 that were budgeted in the general fund fiduciary but not expended. Capital Asset and Debt Administration Capital assets. The county’s investment in capital assets for its governmental and business type activities at year-end amounts to $365,646,134 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, buildings, machinery and equipment, park facilities, roads and bridges, and software. Major capital asset events during the current fiscal year included the following:

• Construction in progress – The airport terminal project was completed. • Buildings and improvement – The airport terminal which cost approximately $42 million

was completed. The SORC Emergency Communication Center was completed for approximately $6.6 million. The Airport freight enhancement project of $4.7 million was completed, as well as the $3.8 million tower project.

• Software – Software development costs were capitalized in accordance with GASB Statement No. 51.

• Infrastructure – Assets built by others and transferred to the county were approximately $480,000.

Jackson County's Capital Assets

(net of depreciation)


06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009

Land 14,471,262$ 13,962,577$ 17,646,202$ 17,615,182$ 32,117,464$ 31,577,759$ B uildings and improvements 74,894,371 71,192,448 90,655,087 40,048,503 165,549,458 111,240,951 Machinery and equipment 7,460,920 6,720,212 2,899,824 2,677,196 10,360,744 9,397,408 Infrastructure 131,209,007 108,704,918 - - 131,209,007 108,704,918 Software 1,000,191 507,599 - - 1,000,191 507,599 Construction in progress 23,695,405 49,645,744 1,713,865 47,995,060 25,409,270 97,640,804

Total 252,731,156$ 250,733,498$ 112,914,978$ 108,335,941$ 365,646,134$ 359,069,439$

Additional information of the county’s capital assets can be found in Note No. 5 in the Notes to Financial Statements section of this report on pages 32 through 33.

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Long-term debt. At the end of this fiscal year, the county had total bonded debt outstanding of $50,718,426. The general obligation bonds represent debt backed by the full faith and credit of the government. Airport revenue bonds are funded by passenger facility charges and other airport revenues. Urban renewal bonds are funded by the property tax increment within the urban renewal boundary. The Bancroft Bonds are funded by payments from property owners.

Jackson County's Outstanding Debt

Governmentalactivities

6/30/2010 6/30/2009 6/30/2010 6/30/2009 6/30/2010 6/30/2009

General obligation bonds 26,925,000$ 30,770,000$ -$ -$ 26,925,000$ 30,770,000$ Bancroft bonds 913,426 1,027,538$ - 913,426 1,027,538.00 Airport revenue bonds - - 19,655,000 19,955,000 19,655,000 19,955,000Urban renewal bonds 3,225,000 4,285,000 - - 3,225,000 4,285,000

Total 31,063,426$ 36,082,538$ 19,655,000$ 19,955,000$ 50,718,426$ 56,037,538$

Business-typeactivities Total

Jackson County maintains an “Aa2” rating from Moody’s Investor Service for its Library Series 2002 general obligation bond issues, the Juvenile Services Center Series 2001, and Library Refunding Bond Series 2006 bond issues. Oregon revised statutes limit the amount of general obligation debt a county may have outstanding to 2.0% of the true cash value of all taxable property in the County. The current debt limitation for the county is $567,319,440 which is significantly in excess of the $26,925,000 which the county has outstanding. Additional information of the county’s long-term debt can be found in Note No. 9 in the Notes section on pages 35 through 41. Computation of the legal debt margin is shown in Statistical Schedule 10 on page 106. Economic Factors and Next Year’s Budget

• Once known for timber, the economy of Jackson County has diversified. Retail, including Harry and David’s mail order business, is the largest employment group in the county. Health Care is the second largest employment group. Jackson County boasts several major and community medical centers and physician groups, with the Asante Health System being the largest Jackson County employer. Government is the third largest employment group. This reflects the fact that the federal government owns 52% of the land within the county’s boundaries. At the close of the fiscal year, the county’s unemployment rate was 12.1%, which was above the state average of 10.3%. At the same time, the national average was 9.6%.

• The population of the county increased 1% during the past year, with K-12 school enrollment down 1.4%.

• County-issued residential building permits decreased 20.3% from the previous fiscal year, reflecting the nation-wide trend in the housing market. This doesn’t include permits issued by cities.

• Total assessed value within the county increased 3.3%. This reflects the impact of growth in larger value homes in addition to the 3.0% constitutional limit on increases to assessed valuations of existing property.

A significant source of county general fund revenue is the former federal Oregon & California Railroads act funds (O&C funds), which had been in place, with modifications, since 1937. Public

xxii

Law 110-343 included an extension to the O&C and Federal Forest revenues. The new guarantee will extend payments until fiscal year 2011-2012. The guaranteed payment amount is gradually reduced from the base payment received in fiscal year 2006-2007. For fiscal year 2010-2011, the payment approximately $11.3 million and will tumble to just under $7 million in fiscal year 2011-12. The County remains comitted to building our reserve until, at the least, revenues and expenditures balance. These are among the factors that were considered in preparing Jackson County’s budget for the 2010-11 fiscal year. The county’s 2010-11 budget is $335,897,562 plus $14,138,874 for the Urban Renewal Agency, $1,809,728 for the White City Law Enforcement District, and $803,755 for the White City Lighting District, each of which are “blended” component units. The total for the county plus its three component units is $352,649,919. This represents a decrease of 1.0% from the final 2009-10 budget. Budgeted funds include the general fund, special revenue, capital project, debt service, enterprise and internal service funds. The general fund appropriation budget is $80,135,505, an increase of 6.8%. In Oregon, the total amount of the fund balance is budgeted as a resource; therefore, an increase in fund balance one year results in a corresponding increase in the following year’s budget regardless of the amount of the fund balance that is actually appropriated for expenditure. Requests for Information This financial report is designed to provide to citizens, customers, investors, creditors and others with an interest in the Jackson County, a general overview of the county’s finances and to demonstrate accountability for the funds it receives. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Jackson County Finance Director, 10 S. Oakdale Ave., #113A, Medford, OR 97501.

BASIC FINANCIAL STATEMENTS


Statement of Net AssetsJune 30, 2010

Primary GovernmentGovernmental Business-Type

Activities Activities TotalASSETS

Cash and investments 144,149,940$ 15,449,528$ 159,599,468$Receivables (net of allowance for uncollectibles) 11,683,039 2,271,891 13,954,930 Internal balances 1,132,736 (1,132,736) - Inventories 1,361,024 126,805 1,487,829 Deposits and prepaid items 321,649 15,676 337,325 Deferred charges 779,934 739,968 1,519,902 Net pension obligation 516,198 - 516,198 Capital assets (net of accumulated depreciation):

Land 14,471,262 17,646,202 32,117,464 Buildings and system 74,894,371 90,655,087 165,549,458 Equipment 7,460,920 2,899,824 10,360,744 Software 1,000,191 - 1,000,191 Construction in progress 23,695,405 1,713,865 25,409,270 Infrastructure 131,209,007 - 131,209,007

Total assets 412,675,676 130,386,110 543,061,786

LIABILITIES

Accounts payable and other current liabilities 6,854,875 1,741,818 8,596,693 Accrued interest payable 110,006 85,572 195,578 Unearned revenues 2,190,913 252,166 2,443,079 Noncurrent liabilities:

Due within one year 8,992,665 330,000 9,322,665 Due in more than one year 32,268,327 20,094,023 52,362,350

Total liabilities 50,416,786 22,503,579 72,920,365

NET ASSETS

Invested in capital assets, net of related debt 222,447,664 93,230,923 315,678,587 Restricted for:

General government 2,994,437 - 2,994,437 Elections & records 945,303 - 945,303 Community justice & safety 1,561,542 - 1,561,542 Culture & recreation 481,973 - 481,973 Planning, development & natural resources 8,580,539 - 8,580,539 Health & human services 12,345,908 - 12,345,908 Transportation 16,512,816 - 16,512,816 Debt service 8,695,411 1,613,783 10,309,194

Unrestricted 87,693,297 13,037,825 100,731,122

Total net assets 362,258,890$ 107,882,531$ 470,141,421$

The accompanying notes are an integral part of this statement.

-1-


Statement of ActivitiesFor the fiscal year ended June 30, 2010

Program Revenues Net (Expense) Revenue andOperating Capital Changes in Net Assets

Charges for Grants and Grants and Governmental Business-typeFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total

Primary government:Governmental activities:

General government 16,376,723$ 822,658$ 6,701,962$ -$ (8,852,103)$ -$ (8,852,103)$ Elections & records 1,973,350 1,616,595 114,262 - (242,493) - (242,493) Community justice & safety 45,769,390 6,313,071 11,049,473 40,975 (28,365,871) - (28,365,871) Culture & recreation 8,102,856 721,080 523,047 - (6,858,729) - (6,858,729) Planning, development & natural resources 5,605,315 3,052,339 79,237 - (2,473,739) - (2,473,739) Health & human services 41,791,404 3,280,085 37,298,748 - (1,212,571) - (1,212,571) Transportation 17,551,405 2,798,612 14,895,308 640,000 782,515 - 782,515 Interest on long-term debt 1,572,803 - - - (1,572,803) - (1,572,803)

Total governmental activities 138,743,246 18,604,440 70,662,037 680,975 (48,795,794) - (48,795,794)

Business-type activities:Airport 7,647,804 7,439,262 1,148,270 6,127,366 - 7,067,094 7,067,094 Exposition park 2,336,390 1,632,821 41,963 1,003,000 - 341,394 341,394 Recreation enterprise 3,921,194 771,398 2,564,510 - - (585,286) (585,286)

Total business-type activities 13,905,388 9,843,481 3,754,743 7,130,366 - 6,823,202 6,823,202

Total primary government 152,648,634$ 28,447,921$ 74,416,780$ 7,811,341$ (48,795,794) 6,823,202 (41,972,592)

General revenues:Property taxes 37,791,064 - 37,791,064 Grants and donations not restricted to specific programs 12,819,817 - 12,819,817 Unrestricted investment earnings 4,330,137 322,024 4,652,161

Transfers (308,613) 308,613 -

Total general revenues and transfers 54,632,405 630,637 55,263,042

Change in net assets 5,836,611 7,453,839 13,290,450

Net assets - beginning 356,422,279 100,428,692 456,850,971

Net assets - ending 362,258,890$ 107,882,531$ 470,141,421$


-2-


Balance SheetGovernmental Funds

June 30, 2010

Health andGeneral Human Special Other Total

General Road Services Revenue Governmental GovernmentalFund Fund Fund Fund Funds Funds

ASSETS

Cash and investments 69,522,884$ 11,439,387$ 13,218,773$ 9,683,668$ 22,367,464$ 126,232,176$ Receivables (net of allowance for uncollectibles) 6,594,831 3,095,187 1,034,414 73,543 809,693 11,607,668 Deposits and prepaid items 216,902 - 14,526 - - 231,428 Due from other funds 3,071,549 505,565 91,643 120,394 841,390 4,630,541 Inventories - 1,313,306 - - - 1,313,306

Total assets 79,406,166$ 16,353,445$ 14,359,356$ 9,877,605$ 24,018,547$ 144,015,119$

LIABILITIES AND FUND BALANCES

Liabilities:Accounts payable 550,111$ 840,285$ 743,144$ 212,657$ 320,849$ 2,667,046$ Accrued payroll, withholdings and benefits 2,926,810 - - - - 2,926,810 Due to other funds 733,496 270,167 766,977 457,637 1,451,155 3,679,432 Deferred revenue 1,913,584 1,443,587 - - 677,343 4,034,514 Unearned revenue 140,000 - - 2,050,913 - 2,190,913 Retainages and other liabilities 186,892 180,546 680 25,783 105,562 499,463

Total liabilities 6,450,893 2,734,585 1,510,801 2,746,990 2,554,909 15,998,178

Fund balances:Reserved for:

Encumbrances 85,635 8,019,362 221,831 192,503 714,607 9,233,938 Inventories - 1,313,306 - - - 1,313,306 O&C deposits 473,454 - - - - 473,454 Deposits and prepaid items 216,902 - 14,526 - - 231,428 Debt service - - - - 8,226,755 8,226,755 Sheriff 358,946 - - - - 358,946 Taylor Grazing 21,681 - - - - 21,681 Library 17,724 - - - - 17,724 Animal control donations - - 2,231,077 - - 2,231,077

Unreserved, reported in:General Fund 71,780,931 - - - - 71,780,931 Special revenue funds - 4,286,192 10,381,121 6,938,112 775,625 22,381,050 Capital projects funds - - - - 11,746,651 11,746,651

Total fund balances 72,955,273 13,618,860 12,848,555 7,130,615 21,463,638 128,016,941

Total liabilities and fund balances 79,406,166$ 16,353,445$ 14,359,356$ 9,877,605$ 24,018,547$

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

Capital assets used in governmental activities are notfinancial resources and, therefore, are not reported in the funds 249,121,859

Other long-term assets are not available to pay current periodexpenditures and, therefore, are deferred in the funds 4,034,514

Internal service funds assets and liabilities are included ingovernmental activities in the statement of net assets 14,804,607

Long-term liabilities are not due and payable in the currentperiod and, therefore, are not reported in the funds (33,719,031)

Net assets of governmental activities 362,258,890$


-3-


Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds

For the fiscal year ended June 30, 2010

Health andGeneral Human Special Other Total

General Road Services Revenue Governmental GovernmentalFund Fund Fund Fund Funds Funds

Revenues:Intergovernmental 27,387,752$ 14,707,807$ 37,298,749$ 2,866,764$ 1,220,782$ 83,481,854$ Charges for services 8,917,256 2,108,966 2,059,443 1,501,536 748,919 15,336,120 Licenses and permits 40,470 - 1,192,181 - - 1,232,651 Fines and forfeitures 1,784,477 - 28,461 37,775 - 1,850,713 Taxes 30,365,444 - - - 7,277,435 37,642,879 Interest 1,896,609 283,313 288,194 257,107 692,339 3,417,562 Miscellaneous 404,615 - - 23,628 12,660 440,903

Total revenues 70,796,623 17,100,086 40,867,028 4,686,810 9,952,135 143,402,682

Expenditures:Current:

General government 5,065,345 - - 3,550,841 1,400,738 10,016,924 Elections & records 1,257,784 - - 562,771 - 1,820,555 Community justice & safety 41,946,025 - - 202,843 924,433 43,073,301 Culture & recreation 5,436,403 - - 281,225 150,381 5,868,009 Planning, development & natural resources 4,000,147 - - 154,676 1,718,030 5,872,853 Health & human services - - 40,754,243 - - 40,754,243 Transportation - 13,397,816 - 153,795 100,525 13,652,136

Debt service:Principal - - - - 5,019,112 5,019,112 Interest - - - - 1,593,991 1,593,991

Capital outlay:General government 10,000 - - - 4,257,378 4,267,378 Community justice & safety 409,597 - - - - 409,597 Culture & recreation - - - - 151,442 151,442 Planning, development & natural resources - - - - 3,923,537 3,923,537 Health & human services - - 20,050 - - 20,050 Transportation - 4,361,211 - - 232,901 4,594,112

Total expenditures 58,125,301 17,759,027 40,774,293 4,906,151 19,472,468 141,037,240

Excess (deficiency) of revenuesover expenditures 12,671,322 (658,941) 92,735 (219,341) (9,520,333) 2,365,442

Other financing sources (uses):Transfers in 359,145 306,130 2,555,183 83,735 2,829,913 6,134,106 Transfers out (7,031,151) (15,450) (12,963) (486,490) (1,214,625) (8,760,679)

Total other financing sources (uses) (6,672,006) 290,680 2,542,220 (402,755) 1,615,288 (2,626,573)

Net change in fund balances 5,999,316 (368,261) 2,634,955 (622,096) (7,905,045) (261,131)

Fund balances - beginning 66,955,957 14,004,457 10,213,600 7,752,711 29,368,683 128,295,408 Decrease in reserve for inventories - (17,336) - - - (17,336)

Fund balances - ending 72,955,273$ 13,618,860$ 12,848,555$ 7,130,615$ 21,463,638$ 128,016,941$


-4-


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

Amounts reported for governmental activities in the statement of activities(page 2) are different because:

Net change in fund balances - total governmental funds (page 4) (261,131)$

Governmental funds report the change in inventories as a change in fund balance.However, in the statement of activities the change is included in expenses. (17,336)

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

Capital outlay 16,755,588$ Depreciation expense (11,000,295) 5,755,293

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 financialresources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital assets sold. (4,493,298)

The issuance of long-term debt provides current financial resources to governmental funds,while repayment of long-term debt principal consumes current financial resources of governmental funds. However, neither transaction has any effect on net assets. Also,governmental funds report the effect of issuance costs and similar items when debt isfirst issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences.

Long-term debt principal repaid 5,019,112 Amortization of debt issuance costs (78,035) 4,941,077

Revenues in the statement of activities that do not provide current financial resourcesare not reported as revenues in the funds. This is the effect of the change in the deferralof these amounts during the year.

Property taxes 148,185 Assessments (382,511) (234,326)

Some expenses reported in the statement of activities do not require the use of currentfinancial resources and, therefore, are not reported as expenditures in governmentalfunds. This is the effect of the change in these liabilities during the year.

Net pension obligation (186,254) Net OPEB obligation (470,378) Compensated absences 71,049 Accrued interest on debt 21,188 (564,395)

Adjustment to reflect the consolidation of internal service fund activities related to governmental activities. 710,727

Change in net assets of governmental activities (page 2) 5,836,611$


-5-


General FundStatement of Revenues, Expenditures and Changes in Fund Balance -

Budget and ActualFor the fiscal year ended June 30, 2010

Variance withFinal Budget

Budgeted Amounts Actual PositiveOriginal Final Amounts (Negative)

Revenues:Intergovernmental 28,884,241$ 29,166,914$ 27,387,752$ (1,779,162)$ Charges for services 9,399,250 9,638,378 8,917,256 (721,122) Licenses and permits 43,855 43,855 40,470 (3,385) Fines and forfeitures 1,796,812 1,796,812 1,784,477 (12,335) Taxes 30,771,763 30,771,763 30,365,444 (406,319) Interest 1,550,000 1,550,000 1,896,609 346,609 Miscellaneous 167,702 169,876 404,615 234,739

Total revenues 72,613,623 73,137,598 70,796,623 (2,340,975)

Expenditures:General government:

Assessor 3,743,578 3,743,578 3,601,930 141,648 Finance 622,967 822,967 776,214 46,753 County Administration - Emergency

Management 602,767 602,767 340,949 261,818 Fiduciary 6,905,548 6,164,513 356,252 5,808,261

Total general government 11,874,860 11,333,825 5,075,345 6,258,480

Elections & records:County Clerk 1,253,767 1,303,767 1,257,784 45,983

Community justice & safety:District Attorney 4,308,057 4,345,657 4,010,405 335,252 Justice Court District 493,910 493,910 427,985 65,925 Sheriff 26,296,209 26,682,683 24,818,198 1,864,485 Community Justice 13,843,566 13,843,566 13,099,034 744,532

Total community justice & safety 44,941,742 45,365,816 42,355,622 3,010,194

Culture & recreation:Library 5,530,685 5,557,860 5,436,403 121,457

(Continues)-6-


General FundStatement of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualFor the fiscal year ended June 30, 2010



Expenditures: (Contd)

Planning, development & natural resources:Economic and Special Development 740,673$ 740,673$ 579,600$ 161,073$ Development Services 3,854,280 3,834,284 3,420,547 413,737

Total planning, development &natural resources 4,594,953 4,574,957 4,000,147 574,810

Total expenditures 68,196,007 68,136,225 58,125,301 10,010,924

Excess (deficiency) of revenues overexpenditures 4,417,616 5,001,373 12,671,322 7,669,949

Other financing sources (uses):Transfers in 205,700 341,677 359,145 17,468 Transfers out (6,103,804) (6,876,041) (7,031,151) (155,110)

Total other financing sources (uses) (5,898,104) (6,534,364) (6,672,006) (137,642)

Net change in fund balance (1,480,488) (1,532,991) 5,999,316 7,532,307

Fund balance - beginning 62,749,658 62,749,658 66,955,957 4,206,299

Fund balance - ending 61,269,170$ 61,216,667$ 72,955,273$ 11,738,606$


-7-


General Road FundStatement of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental 14,391,496$ 14,541,496$ 14,707,807$ 166,311$ Charges for services 1,851,172 2,031,172 2,108,966 77,794 Interest 200,000 200,000 283,313 83,313

Total revenues 16,442,668 16,772,668 17,100,086 327,418


Transportation:Personal services 7,466,001 7,521,001 7,020,307 500,694 Materials and services 14,076,568 8,992,568 6,377,509 2,615,059 Other requirements 100,000 100,000 - 100,000

Total transportation 21,642,569 16,613,569 13,397,816 3,215,753

Capital outlay:Transportation 4,631,099 9,974,649 4,361,211 5,613,438


Excess (deficiency) of revenues overexpenditures (9,831,000) (9,815,550) (658,941) 9,156,609

Other financing sources (uses):Transfers in 336,324 336,324 306,130 (30,194) Transfers out (5,324) (20,774) (15,450) 5,324

Total other financing sources (uses) 331,000 315,550 290,680 (24,870)

Net change in fund balance (9,500,000) (9,500,000) (368,261) 9,131,739

Fund balance - beginning 13,500,000 13,500,000 14,004,457 504,457 Change in reserve for inventories - - (17,336) (17,336)


The accompanying notes are an integral part of this statement.-8-


Health and Human Services FundStatement of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental 34,707,801$ 35,867,224$ 37,298,749$ 1,431,525$ Charges for services 2,996,179 3,021,179 2,059,443 (961,736) Licenses and permits 1,321,168 1,321,168 1,192,181 (128,987) Fines and forfeitures 31,460 31,460 28,461 (2,999) Interest 295,500 295,500 288,194 (7,306) Miscellaneous 59,300 59,300 - (59,300)

Total revenues 39,411,408 40,595,831 40,867,028 271,197


Health & human services:Personal services 16,381,911 17,054,214 14,834,852 2,219,362 Materials and services 26,463,342 26,975,462 25,919,391 1,056,071

Total health & human services 42,845,253 44,029,676 40,754,243 3,275,433

Capital outlay:Health & human services 2,045,800 2,032,837 20,050 2,012,787


Excess (deficiency) of revenues overexpenditures (5,479,645) (5,466,682) 92,735 5,559,417

Other financing sources (uses):Transfers in 2,552,475 2,552,475 2,555,183 2,708 Transfers out (77,873) (90,836) (12,963) 77,873

Total other financing sources (uses) 2,474,602 2,461,639 2,542,220 80,581





-9-


Special Revenue FundStatement of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental 3,352,318$ 3,352,318$ 2,866,764$ (485,554)$ Charges for services 1,397,449 1,397,449 1,501,536 104,087 Fines and forfeitures 20,000 40,000 37,775 (2,225) Interest 115,561 115,561 257,107 141,546 Miscellaneous 5,828 5,828 23,628 17,800

Total revenues 4,891,156 4,911,156 4,686,810 (224,346)

Expenditures:Law Library:

Personal services 76,142 76,142 74,041 2,101 Materials and services 563,486 563,486 207,184 356,302

Total Law Library 639,628 639,628 281,225 358,403

Surveyor:Personal services 450,346 450,346 437,198 13,148 Materials and services 895,708 895,708 125,573 770,135 Capital outlay 15,000 15,000 - 15,000 Other 25,000 25,000 - 25,000

Total Surveyor 1,386,054 1,386,054 562,771 823,283

Footpath and Bicycle Trail:Personal services 84,410 84,410 81,894 2,516 Materials and services 180,389 180,389 71,901 108,488

Total Footpath and Bicycle Trail 264,799 264,799 153,795 111,004

Title III:Materials and services 5,981,501 5,981,501 1,955,437 4,026,064

(Continues)-10-


Special Revenue FundStatement of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualFor the fiscal year ended June 30, 2010



Expenditures: (Contd)Title II:

Materials and services 1,600,000$ 1,600,000$ 1,595,404$ 4,596$

Solid Waste Management:Personal services 76,689 90,689 85,092 5,597 Materials and services 2,368,491 2,354,491 69,584 2,284,907

Total Solid Waste Management 2,445,180 2,445,180 154,676 2,290,504

Court Security:Materials and services 598,862 598,862 202,843 396,019



Other financing sources (uses):Transfers in 5,569 5,569 83,735 78,166 Transfers out (497,630) (517,630) (486,490) 31,140

Total other financing sources (uses) (492,061) (512,061) (402,755) 109,306


Fund balance - beginning 8,516,929 8,516,929 7,752,711 (764,218)

Fund balance - ending -$ -$ 7,130,615$ 7,130,615$


-11-


Statement of Net AssetsProprietary Funds

June 30, 2010

Business-type Activities - Enterprise FundsExposition Exposition

Park Park Airport AirportCurrent Year Prior Year Current Year Prior Year

ASSETS

Current assets:Cash and investments 147,800$ 273,577$ 14,544,867$ 11,418,893$ Receivables (net of allowance for uncollectibles) 74,547 79,300 1,318,601 1,621,380 Deposits and prepaid items 15,551 - 125 - Due from other funds 11,103 968 810,702 13,513 Inventories - - 126,805 -

Total current assets 249,001 353,845 16,801,100 13,053,786

Deferred charges - bond issuance costs - - 739,968 788,127

Capital assets:Land 822,237 822,237 15,309,003 15,277,983 Buildings 10,474,287 9,471,287 68,274,558 20,265,545 Software - - - - Improvements other than buildings 776,440 776,440 44,598,952 39,898,714 Equipment 176,084 176,084 4,094,459 3,868,433 Construction in progress - - 1,260,573 47,508,903 Less accumulated depreciation (5,178,036) (4,749,328) (34,261,232) (31,805,183)

Total capital assets (net of accumulated depreciation) 7,071,012 6,496,720 99,276,313 95,014,395

Total noncurrent assets 7,071,012 6,496,720 100,016,281 95,802,522

Total assets 7,320,013 6,850,565 116,817,381 108,856,308

LIABILITIES

Current liabilities:Accounts payable 54,699 55,833 610,662 371,723 Accrued claims liability - - - - Due to other funds 28,177 30,701 931,464 113,512 Revenue bonds payable, current - - 320,000 300,000 Contract payable, current - - 10,000 10,000 Accrued interest payable - - 85,572 86,865 Compensated absences - - - - Unearned revenue 164,325 84,391 87,841 141,231 Retainages and other liabilities - - 127,007 393,954

Total current liabilities 247,201 170,925 2,172,546 1,417,285

Noncurrent liabilities:Revenue bonds payable, net of current portion - - 19,335,000 19,655,000 Revenue bonds unamortized premium - - 650,689 692,068 Contract payable, net of current portion - - 108,334 118,334

Total noncurrent liabilities - - 20,094,023 20,465,402

Total liabilities 247,201 170,925 22,266,569 21,882,687

NET ASSETS

Invested in capital assets, net of related debt 7,071,012 6,496,720 79,592,258 75,027,120 Restricted for debt service - - 1,613,783 1,603,408 Unrestricted 1,800 182,920 13,344,771 10,343,093

Total net assets 7,072,812$ 6,679,640$ 94,550,812$ 86,973,621$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds

Net assets of business-type activities

The accompanying notes are an integral part of this statement.-12-

GovernmentalRecreation Recreation ActivitiesEnterprise Enterprise Total Internal

Current Year Prior Year Current Year Service Funds

756,861$ 611,351$ 15,449,528$ 17,917,764$ 878,743 116,138 2,271,891 75,371

- - 15,676 90,221 41,240 41,587 863,045 1,089,029

- - 126,805 47,718

1,676,844 769,076 18,726,945 19,220,103

- - 739,968 -

1,514,962 1,514,962 17,646,202 382,150 6,040,478 5,918,720 84,789,323 553,991

- - - 322,452 4,154,775 4,132,844 49,530,167 -

269,063 251,890 4,539,606 7,948,532 453,292 486,157 1,713,865 -

(5,864,917) (5,479,747) (45,304,185) (5,597,828)

6,567,653 6,824,826 112,914,978 3,609,297

6,567,653 6,824,826 113,654,946 3,609,297

8,244,497 7,593,902 132,381,891 22,829,400

905,769 27,133 1,571,130 758,153 - - - 4,087,180

64,376 66,259 1,024,017 1,879,166 - - 320,000 - - - 10,000 - - - 85,572 - - - - 2,268,655 - - 252,166 -

43,681 - 170,688 3,403

1,013,826 93,392 3,433,573 8,996,557

- - 19,335,000 - - - 650,689 - - - 108,334 -

- - 20,094,023 -

1,013,826 93,392 23,527,596 8,996,557

6,567,653 6,824,826 93,230,923 3,609,297 - - 1,613,783 -

663,018 675,684 14,009,589 10,223,546

7,230,671$ 7,500,510$ 108,854,295 13,832,843$

(971,764)

107,882,531$

-12-


Statement of Revenues, Expenses and Changes in Fund Net AssetsProprietary Funds


Business-type Activities - Enterprise Funds GovernmentalExposition Exposition Recreation Recreation Activities

Park Park Airport Airport Enterprise Enterprise Total InternalCurrent Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Service Funds

Operating revenues:Intergovernmental -$ -$ -$ -$ -$ -$ -$ 332,524$ Charges for services 1,436,638 1,601,002 7,382,756 6,472,771 768,717 834,556 9,588,111 17,725,708 Fines and forfeitures - - 1,135 2,220 240 135 1,375 - Other 196,183 266,895 13,992 12,560 2,441 28,298 212,616 22,360

Total operating revenues 1,632,821 1,867,897 7,397,883 6,487,551 771,398 862,989 9,802,102 18,080,592

Operating expenses:Salaries and wages 363,024 414,064 1,313,969 1,285,034 530,995 484,588 2,207,988 5,118,537 Payroll taxes and benefits 167,457 183,791 681,337 684,569 203,826 202,443 1,052,620 2,269,318 General operating expenses 269,054 307,774 457,162 404,554 177,854 160,106 904,070 7,630,399 Special fees 319,991 311,003 - - - - 319,991 - Property maintenance and utilities 277,044 289,224 869,478 849,406 308,840 356,588 1,455,362 2,106,389 Equipment maintenance 95,916 114,026 53,275 56,846 11,539 11,237 160,730 710,052 Professional and other support services 378,398 267,582 1,258,832 1,796,777 2,277,374 177,472 3,914,604 1,284,792 Depreciation 428,708 386,814 2,711,327 2,451,281 367,997 342,954 3,508,032 905,639 Other 10,196 12,330 42,296 41,365 8,725 3,688 61,217 422,669

Total operating expenses 2,309,788 2,286,608 7,387,676 7,569,832 3,887,150 1,739,076 13,584,614 20,447,795

Operating income (loss) (676,967) (418,711) 10,207 (1,082,281) (3,115,752) (876,087) (3,782,512) (2,367,203)

Nonoperating revenues (expenses):Intergovernmental revenues 41,963 49,405 - - 2,564,510 1,192,115 2,606,473 - Passenger facility charges - - 1,148,270 1,005,097 - - 1,148,270 - Interest revenue 4,421 5,296 296,668 454,028 20,935 23,757 322,024 471,672 Interest expense, net of amount

capitalized - - (46,388) (48,160) - - (46,388) - Amortization of bond premium - - 41,379 41,379 - - 41,379 - Gain on sale of capital assets - - - - - - - 71,735 Loss on sale of capital assets - - (27,701) (70,904) - (7,446) (27,701) (30,122)

Total nonoperating revenues(expenses) 46,384 54,701 1,412,228 1,381,440 2,585,445 1,208,426 4,044,057 513,285

Income (loss) beforecontributions and transfers (630,583) (364,010) 1,422,435 299,159 (530,307) 332,339 261,545 (1,853,918)

Capital contributions 1,003,000 916,487 6,127,366 9,580,487 - 103,194 7,130,366 - Transfers in 20,755 18,000 27,390 - 260,468 453,048 308,613 2,446,772 Transfers out - - - - - - - (128,812)

Change in net assets 393,172 570,477 7,577,191 9,879,646 (269,839) 888,581 7,700,524 464,042

Total net assets - beginning 6,679,640 6,109,163 86,973,621 77,093,975 7,500,510 6,611,929 13,368,801

Total net assets - ending 7,072,812$ 6,679,640$ 94,550,812$ 86,973,621$ 7,230,671$ 7,500,510$ 13,832,843$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (246,685)

Change in net assets of business-type activities 7,453,839$


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Statement of Cash FlowsProprietary Funds


Business-type Activities - Enterprise Funds GovernmentalExposition Exposition Recreation Recreation Activities

Park Park Airport Airport Enterprise Enterprise Total InternalCurrent Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Service Funds

Cash flows from operating activities:Sale of goods and services 1,511,190$ 1,626,167$ 6,585,541$ 6,391,388$ 811,937$ 835,617$ 8,908,668$ -$ Receipts from interfund services provided - - - - - - - 18,294,299 Employee payroll payments (530,481) (597,855) (1,995,306) (1,969,603) (734,821) (687,031) (3,260,608) (7,458,069) Purchases of goods and services (1,225,425) (1,211,411) (1,046,434) (3,174,146) (1,664,751) (558,194) (3,936,610) (10,100,501) Receipts from outside agencies - - - - - - - 332,524 Payments for interfund services used (144,383) (124,809) (651,343) (903,537) (199,147) (166,032) (994,873) (784,330) Other operating receipts 196,183 266,895 15,127 14,780 2,681 28,433 213,991 22,360

Net cash provided by (used in) operating activities (192,916) (41,013) 2,907,585 358,882 (1,784,101) (547,207) 930,568 306,283

Cash flows from noncapital financing activities:Transfers received 20,755 18,000 27,390 - 260,468 453,048 308,613 2,446,772 Transfers paid - - - - - - - (128,812) Operating subsidies received 41,963 49,405 - - 1,735,353 1,121,146 1,777,316 -

Net cash provided by (used in) noncapitalfinancing activities 62,718 67,405 27,390 - 1,995,821 1,574,194 2,085,929 2,317,960

Cash flows from capital and related financing activities:

Capital grants - - 6,376,781 8,698,428 23,679 - 6,400,460 - Proceeds from sale of capital assets - - 32,524 - - - 32,524 71,735 Debt principal payments - - (310,000) (10,000) - - (310,000) - Debt interest payments - - (1,034,623) (1,042,375) - - (1,034,623) - Purchase of capital assets - (8,000) (6,318,621) (17,709,821) (110,824) (1,056,866) (6,429,445) (1,671,424) Proceeds from passenger facility charges - - 1,148,270 1,005,097 - - 1,148,270 -

Net cash provided by (used in) capital andrelated financing activities - (8,000) (105,669) (9,058,671) (87,145) (1,056,866) (192,814) (1,599,689)

Cash flows from investing activitiesInterest on investments 4,421 5,296 296,668 454,028 20,935 23,757 322,024 471,672

Net increase (decrease) in cash and investments (125,777) 23,688 3,125,974 (8,245,761) 145,510 (6,122) 3,145,707 1,496,226

Cash and investments - beginning 273,577 249,889 11,418,893 19,664,654 611,351 617,473 12,303,821 16,421,538

Cash and investments - ending 147,800$ 273,577$ 14,544,867$ 11,418,893$ 756,861$ 611,351$ 15,449,528$ 17,917,764$

Reconciliation of Operating Income (Loss) to NetCash Provided by (Used in) Operating Activities

Operating income (loss) (676,967)$ (418,711)$ 10,207$ (1,082,281)$ (3,115,752)$ (876,087)$ (3,782,512)$ (2,367,203)$

Adjustments to reconcile operating income (loss) to netcash provided by (used in) operating activities:

Depreciation 428,708 386,814 2,711,327 2,451,281 367,997 342,954 3,508,032 905,639 (Increase) decrease in:

Accounts receivable 4,753 14,902 53,364 (127,274) 42,873 1,137 100,990 (21,743) Interfund receivable (10,135) 2,822 (797,189) 23,534 347 (76) (806,977) 589,282 Prepaid expenses (15,551) - (125) 930 - - (15,676) 2,591 Inventories - - (126,805) - - - (126,805) (26,310)

Increase (decrease) in:Accounts payable (1,134) (13,932) 238,939 (491,959) 878,636 (3,858) 1,116,441 (668,905) Accrued claims liability - - - - - - - 753,213 Interfund payable (2,524) (20,349) 817,952 (21,096) (1,883) (11,277) 813,545 1,208,244 Compensated absences - - - - - - - (70,214) Deferred revenue and other liabilities 79,934 7,441 (85) (394,253) 43,681 - 123,530 1,689

Total adjustments 484,051 377,698 2,897,378 1,441,163 1,331,651 328,880 4,713,080 2,673,486

Net cash provided by (used in) operating activities (192,916)$ (41,013)$ 2,907,585$ 358,882$ (1,784,101)$ (547,207)$ 930,568$ 306,283$

Noncash investing, capital and financing activities:Capital contributions 1,003,000$ 916,487$ -$ -$ -$ 103,194$ 1,003,000$ -$ Capital asset additions (1,003,000) (916,487) - - - (103,194) (1,003,000) - Bond issuance costs - - 48,159 48,160 - - 48,159 - Bond premium - - (41,379) (41,381) - - (41,379) - Amortization - - (6,780) (6,779) - - (6,780) - Book value of capital assets sold - - 60,225 70,904 - 7,446 60,225 30,122 Gain (loss) on sale of capital assets - - (60,225) (70,904) - (7,446) (60,225) (30,122)

Total noncash investing, capital andfinancing activities -$ -$ -$ -$ -$ -$ -$ -$

The accompanying notes are an integral part of this statement

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Statement of Fiduciary Net AssetsFiduciary FundsJune 30, 2010

Jackson CountyEmployees'

Retirement Plan AgencyTrust Fund Funds

ASSETS

Cash and investments:Pooled cash and investments -$ 3,438,197$ Guaranteed deposits 6,644,130 - Mutual fund investments 8,903,593 -

Receivables (net of allowance for uncollectibles) - 14,175,981

Total assets 15,547,723 17,614,178

LIABILITIES

Accounts payable - 49,369 Amounts held for others - 17,564,809

Total liabilities - 17,614,178

NET ASSETS

Held in trust for employees' pension benefits 15,547,723$ -$


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Statement of Changes in Fiduciary Net AssetsFiduciary Funds


Jackson CountyEmployees'

Retirement PlanTrust Fund

Additions:Contributions - employer 1,135,560$ Investment earnings 1,723,768

Total additions 2,859,328

Deductions:Benefits 1,600,484 Administrative expenses 15,747

Total deductions 1,616,231

Change in net assets 1,243,097

Net assets - beginning 14,304,626

Net assets - ending 15,547,723$


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NOTES TO FINANCIAL STATEMENTS


Notes to Financial Statements June 30, 2010

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REFERENCE TO NOTES

Note Reference Number

Page 1 Summary of Significant Accounting Policies: Organization and Operation 19 Description of the Reporting Entity: 19 Blended Component Units 19 to 20 Government-wide and Fund Financial Statements: 20 Government-wide Financial Statements 20 Fund Financial Statements 20 to 21

Measurement Focus and Basis of Accounting 22 to 23 Cash and Investments 23 to 24 Receivables 24 Deposits and Prepaids 24 Inventory of Materials and Supplies 24 Capital Assets 24 to 25 Long-term Debt 25 Compensated Absences 25 Reserved Fund Balances 26 Restricted Net Assets 26 Self-insurance and Accrued Claims Liability 26 Property Tax Calendar 26 Municipal Solid Waste Landfill 26 to 27 Comparative Data 27

2 Cash and Investments: 27 Deposits 27 to 28 Cash Held by the Association of O&C Counties 28 Investments 28 to 30 Assets Held by Others for the Pension Trust Funds 30 3 Interfund Receivables and Payables 30 to 314 Receivables 31 to 325 Capital Assets 32 to 336 Budget 33 to 347 Encumbrances 34 8 Construction Commitments 34



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REFERENCE TO NOTES

(Continued) Note

Reference Number

Page

9 Long-term Obligations: 35 Bonds Payable 36

General Obligation Bonds Bancroft Bonds

36 to 3838

Urban Rene-wal Bonds 38 to 39 Airport Revenue Bonds 39 to 40 Contract Payable 40 to 41 SEC Rule 15c2-12 41

10 Transfers 41 11 Pension Plans: Accounting Standards 42 Oregon Public Employees Retirement System (OPERS) 42 Single Employer Plans #1, #3 and #5 43 Single Employer Plans #2 and #4 43 to 47

12 Postemployment Health Care Benefits 47 to 4913 Contingencies 49 14 Self-Insurance 49 to 5015 Long-Term Liabilities Not Reported In The Funds 50 to 5116 Related Party 51 17 Subsequent Event

51



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1. Summary of Significant Accounting Policies:

The financial statements of Jackson County, Oregon (the County) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The more significant of the government's accounting policies are described below.

a. Organization and Operation: Jackson County was formed January 12, 1852 under the

predecessor chapter to Oregon Revised Statutes (ORS) Chapter 202. Its present home rule charter, effective January 8, 1979 (revised November 2, 1999) was adopted under Article VI, Section 10, of the Oregon State Constitution. Its boundaries are established by ORS 201.150. The County is governed by a Board of County Commissioners consisting of three independently elected members serving staggered four-year terms.

b. Description of the Reporting Entity: As required by generally accepted accounting principles, these financial statements present the government and its blended component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and data from the units are combined with data of the primary government.

Blended Component Units:

Jackson County Urban Renewal Agency - The Agency was organized as a legally separate entity in April 1991 under the provisions of Oregon Revised Statutes (ORS) Chapter 457 as the agency responsible for rebuilding the infrastructure, public facilities and parks in the White City area. The "tax increment financing" method is being used to provide funds for the Agency. The separate June 30, 2010 financial statements of Jackson County Urban Renewal Agency are available at the County's administrative offices.

The Urban Renewal Agency consists of the three elected members of the Jackson County Board of Commissioners. The Agency is administered by the County’s Administrator’s Office. A seven-member Advisory Committee appointed by the Urban Renewal Agency makes recommendations on project priorities and plan amendments. The Agency has no potential component units.

White City Enhanced Law Enforcement District - The District was created June 14, 1995, under authority of Oregon Revised Statutes (ORS) Chapter 451, by the Jackson County Board of Commissioners. The District is supported by a permanent tax rate per thousand of $2.0211. The Jackson County Board of Commissioners, which also serves as the Board of the District, oversees policy direction for the District. The Jackson County Sheriff's Office has entered into a contractual agreement with the District to provide enhanced public safety service within District boundaries.

The District's separate June 30, 2010 financial statements are available at the County's administrative offices. The District has no potential component units.

JACKSON COUNTY, OREGON Notes to Financial Statements June 30, 2010

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1. Summary of Significant Accounting Policies: (Contd) White City Lighting District – The district was created on May 26, 2004 under the provisions of Oregon Revised Statues (ORS) Chapter 457. The purpose of the district is to provide for the operations and maintenance of supplying street lighting to citizens living within the district, through levied property taxes. In the November 2, 2004 election, the citizens within the district passed a permanent rate levy of $.047 per $1,000 assessed valuation to fund district operations. The Jackson County Board of Commissioners, which also serves as the Board of the District, oversees policy direction for the District.

c. Government-wide and Fund Financial Statements

Government-wide Financial Statements: The Statement of Net Assets and Statement of Activities report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which are primarily supported by intergovernmental revenues and taxes, are reported separately from business-type activities, which rely primarily upon fees charged to external parties. Eliminations have been made to minimize the double counting of internal activities. Direct expenses are not eliminated from the various functional categories. Indirect expenses consisting of building depreciation are allocated based on utilized square footage. The Statement of Activities demonstrates the extent to which direct expenses of a function (i.e., community justice & safety, transportation, general government, etc.) are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function and 2) grants and intergovernmental revenues that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among specific program revenues are reported instead as general revenues.

Fund Financial Statements: 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. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and provides essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses generally result from providing goods and services in connection with a proprietary fund’s principle ongoing operations. Nonoperating expenses are those that do not meet this definition.


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1. Summary of Significant Accounting Policies: (Contd)

The County reports the following major governmental funds: General Fund - This is the County’s primary operating fund. It accounts for all financial resources of the general government, except for those requiring separate accounting in another fund. General Road Fund - The expenditures of the road fund are restricted under Article IX of the Constitution of the State of Oregon for construction, reconstruction, improvement, repair, maintenance, operation, use and policing of public highways, roads and streets within the County. Health and Human Services Fund - This fund accounts for the expenditures of health, mental health, restaurant inspection, environmental health and veterans' services. Special Revenue Fund - This fund was established to individually account for various revenues that are restricted to expenditures for specific purposes, and are not established as other special revenue funds. Departments within this fund are Surveyor, Footpath and Bicycle Trail, Law Library, Liquor Enforcement, Title II, Title III, Solid Waste Management and Court Security. The County reports the following major enterprise funds: Exposition Park Enterprise Fund - Operations of the County’s Exposition Park, including the annual county fair, are accounted for in this enterprise fund.

Airport Enterprise Fund - This fund accounts for the operations and capital projects of the Medford / Rogue Valley International Airport.

Recreation Enterprise Fund - The County’s extensive parks system is accounted for in this fund. Additionally, the County reports the following fund types: Internal Service Funds - These funds account for self-insurance (general liability, auto liability, workers' compensation services and manager’s health benefits), the County’s motor pool, computer replacement and general administrative support functions (“central services”) that are charged to other departments on a cost-reimbursement basis.

Jackson County Employees Retirement Plan Trust Fund - Accounts for the County's single employer pension plans.

Agency Funds - These funds account for property taxes collected on behalf of other taxing districts, and miscellaneous fees collected on behalf of other government agencies.


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d. Measurement Focus and Basis of Accounting:

Government-wide, Proprietary Fund, and Fiduciary Fund Financial Statements - The government-wide, proprietary fund, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds report only assets and liabilities and do not have a measurement focus. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include taxes, grants, and entitlements. On an accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. Governmental Fund Financial Statements - All governmental fund types are accounted for using a current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collection within the current period or soon enough thereafter to be used to pay liabilities of the current period. The County considers property taxes as available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred. All transactions occurring in the governmental fund financial statements are recorded using the modified accrual basis of accounting, except for:

• Interfund transactions for goods and services which are recorded on the accrual basis

• Revenues from grants which are recorded as earned

• Principal and interest on general long-term debt which are recorded when due


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Significant revenues that were measurable and available at June 30, 2010 under the modified accrual basis of accounting were as follows:

• Federal and state grants (to the extent that revenues are recorded as eligible

expenditures are incurred)

• State, County and local shared revenues for business license tax, liquor tax and other

• Property taxes collected within 60 days of year end The County funds certain programs by a combination of specific cost-reimbursement grants, restricted federal funds that are payments in lieu of taxes (PILTs), limited categorical block grants, and general revenues. When program expenses are incurred for which both restricted and unrestricted net assets are available to finance the program, it is the County’s policy to first apply unrestricted resources to such programs, followed by restricted resources.

e. Cash and Investments: The County maintains a cash and investment management pool that is available for use by all funds, except the pension trust fund.

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. Investments held by others for the pension trust funds are also valued at fair value.

The County's investments at year-end consist of investments in the State of Oregon Local Government Investment Pool, certificates of deposit, Federal National Mortgage Association (FNMA), Federal Farm Credit Bank (FFCB), Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC) certificates, corporate paper, and U.S. Government securities held under repurchase agreements, all of which are authorized by Oregon Revised Statutes. Interest earned from pooled investments is allocated to each fund based on each fund's portion of the total investment balance calculated on a daily basis.

The County maintains depository insurance under federal depository insurance funds. The County also covers deposits with collateral held in a multiple financial institution collateral pool administered by the Oregon State Treasurer. The Local Government Investment Pool, repurchase agreements, commercial paper, banker’s acceptances and U.S. Treasury and agency investments are exempt from Statutes requiring such collateral (see Note 2). Cash consists of bank demand deposits, investments which are short-term (less than 90-day maturity at purchase) highly liquid instruments and deposits considered to be cash equivalents. The cash and investment management pool has the general characteristic of a demand deposit account for all county 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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For purposes of the statement of cash flows, cash includes all assets in the cash and investment management pool, including cash and investments with fiscal agents which is restricted.

f. Receivables: Property taxes receivable in the governmental funds which have been collected within 60 days of year end are considered measurable and available, and are recognized as revenues in the funds. All other property taxes receivable in the governmental funds are offset by deferred revenues and, accordingly, have not been recorded as revenue.

Assessments receivable, which represent minor improvements benefiting specific property owners, are financed by and recorded in the governmental funds. The receivables are offset by a deferred revenue account and are recorded as income as they become measurable and available. Substantially all assessments are receivable in installments, including interest at 6% to 9%, over periods of 10 to 20 years.

Accounts receivable in governmental funds and proprietary funds are recorded as revenue when earned.

Receivables for interest, federal and state grants, and state shared revenue are recorded as revenue in all funds as earned.

Receivables are shown net of an allowance for uncollectible accounts.

g. Deposits and Prepaids: Deposits represent amounts held by others as agents of the County which remain the property of, and will be returned to, the County.

Prepaids represent regularly recurring payments made to vendors for services which will benefit periods beyond June 30, 2010.

h. Inventory of Materials and Supplies: Governmental Funds - Inventory, primarily road repair

materials and supplies, is valued at average cost and is shown in the balance sheet as an asset and a reservation of fund balance. The amount shown as inventory has been recorded as an expenditure (purchase method).

Proprietary Funds - Inventory of materials and supplies is valued at lower of first-in, first-out (FIFO) cost or market. Expense is recognized as the materials and supplies are used.

i. Capital Assets: The County implemented GASB Statement No. 51, Accounting and Financial

Reporting for Intangible Assets, for the year ending June 30, 2010. Capital Assets have a useful life of more than one year and are stated at either cost, estimated historical cost or fair market value on the date donated for donated assets. The capitalization threshold for general capital assets is $5,000 for assets reported in the government-wide financial statements and in the proprietary funds. The capitalization threshold for software and other intangible assets is $30,000. Individual assets with a cost of less than the capitalization threshold are not capitalized. The cost of normal maintenance and repairs that do not add to the value of the


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asset or materially extend asset lives are not capitalized. Expenditures for road and bridge construction, sidewalks and drainage systems are capitalized and reflected net of accumulated depreciation in the government-wide Statement of Net Assets. 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. Depreciation and amortization of capital assets is computed on the straight-line method over the estimated useful lives of the related assets. Intangible assets with indefinite useful lives are not amortized.

The estimated useful lives of capital assets are as follows:

Buildings and improvements 7 to 50 years Equipment 3 to 20 years Roads - Arterial & collector 40 years Roads - Local & rural 40 years Roads - Gravel 40 years Bridges – Concrete & steel 50 years Bridges – Wood 20 years Bridges – Box Culvert 50 years Bridges – Pipes over 72” 30 years Signals 20 years Software 3 to 5 years Storm Drains (separate from right-of-way) 30 years

In general, an asphalt overlay of 2” or less is considered to be maintenance. An overlay of greater than 2”, or which increases the capacity of the road system, is considered to be an increase to the original life of the road system and is capitalized.

j. Long-term Debt: All County long-term debt is included in the government-wide financial

statements. Long-term debt directly related to and expected to be paid from proprietary funds is also included in those funds. Unmatured long-term debt information is shown in Note 9.

k. Compensated Absences: Accumulated vested compensated absences which have been advance funded are reported in the Internal Service Fund. Each pay period, newly accrued vacation in all funds is expensed as earned and transferred to the Internal Service Fund. Vacation time is charged against the liability balance as taken. Sick pay, which does not vest, is recorded when leave is taken.


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l. Reserved Fund Balances: The reserved fund balances for governmental funds represent the

amounts that have been identified as reserved for specific purposes. Reservations at June 30, 2010, the purpose for which is not evident on the combined balance sheet, are as follows:

Reserved for O&C Deposits - Deposits held at the Association of O&C Counties. To be returned to Jackson County after November 1, 2005, but no later than November 1, 2012.

Reserved for Sheriff – Funds received through the Community Justice and Treasury Federal Equitable Sharing Agreements restricted to use in drug interdiction activities.

Reserved for Taylor Grazing - Funds deposited to the General Fund which may be used only for Taylor Grazing purposes. This includes fencing and other supplies associated with grazing.

Reserved for Library - Funds deposited to the General Fund which may be used only for library purposes.

Reserved for Animal Control Donations – Funds deposited in the Health and Human Services Fund which may only be used for animal control.

m. Restricted Net Assets: Restricted net assets reported in the Statement of Net Assets represent

amounts for which constraints were imposed by creditors, grantors, contributors or laws or regulations.

n. Self-insurance and Accrued Claims Liability: The County maintains self-insurance

programs (included in the Internal Service Funds) for certain tort and general liability claims, management medical claims and workers' compensation (see Note 14). Premiums are charged to various County funds based on periodically adjusted rates. Premium payments are recorded as expenditures or expenses in the insured fund and revenue in the insurer fund. Estimated liabilities for incurred but not reported claims have been accrued.

o. Property Tax Calendar: Property taxes attach as an enforceable lien on July 1 for real

property and personal property. Taxes are levied as of July 1 and payable in three installments on November 15, February 15 and May 15. Real property taxes unpaid on May 16 are considered delinquent. The County levies, collects and distributes property taxes for all taxing jurisdictions within its boundaries. Uncollected taxes, including delinquent amounts, are deemed to be substantially collectible or recoverable through liens.

p. Municipal Solid Waste Landfill: There is currently only one landfill in operation located on

private property within Jackson County. There are two additional closed landfills that are in postclosure care. Landfill owners are responsible for the closure and postclosure care costs associated with the landfills. Jackson County monitors the owners to ensure they are meeting regulatory requirements and are adequately funding the closure and postclosure care costs associated with the landfills. Jackson County has not recorded a liability related to these landfills as of June 30, 2010 and does not anticipate any future obligations as the owners have maintained adequate funding of postclosure care requirements and have met regulatory requirements.


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The County operated one landfill that has not accepted waste since October 9, 1993 and therefore, does not qualify for regulation under the U.S. Environmental Protection Agency rule "Solid Waste Facility Criteria" issued October 9, 1991.

q. Comparative Data: Comparative total data for the prior year have been presented only for

individual enterprise funds in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of these funds.

2. Cash and Investments:

The County's cash and investments are comprised of the following at June 30, 2010:

Cash on hand and imprest funds 38,977$ Deposits with financial institutions 76,043,386 Cash held by the Association of O&C Counties 473,454 Investments 86,481,848 Assets held by others for the Pension Trust Funds 15,547,723

Total cash and investments 178,585,388

Less cash and investments in fiduciary funds (18,985,920)

Cash and investments, as reportedin statement of net assets 159,599,468$

Deposits: Deposits with financial institutions are bank demand deposits and certificates of deposit. Deposits are covered by Federal Depository Insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Oregon State Treasurer. The total bank balance, as shown on the banks’ records at June 30, 2010 is $78,483,451. Of these deposits, $1,161,702 was covered by FDIC and $77,321,749 was covered by the state collateral pool. Effective July 1, 2008, the Oregon State Treasurer became 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 to the extent required by Oregon Revised Statutes (ORS) Chapter 295. ORS Chapter 295 requires depository banks to place and maintain on deposit with a third-party custodian bank securities having a value of 10%, 25% or 110% of public funds on deposit depending primarily on the capitalization level of the depository bank. The $77,321,749 in County deposits covered by the state collateral pool is exposed to custodial credit risk because the collateral is not held by a third-party custodian bank in the County’s name.


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2. Cash and Investments: (Contd)

Custodial credit risk for deposits is the risk that in the event of a bank failure, the government’s deposits may not be fully recovered through collateral. Through its investment policy, the County addresses custodial credit risk for deposits by limiting certificates of deposit to 65% of the investment portfolio. In addition, any single issuer of certificates of deposit is limited to 30% of the portfolio. At June 30, 2010, the County held $73,646,668 in certificates of deposit, which represented 41.24% of the total portfolio at year-end. Cash Held by the Association of O&C Counties: Deposits held at the Association of O&C Counties are uncollateralized and are to be returned to the County no later than November 1, 2012. All earnings on investment of this deposit will be retained by the Association. Investments: The normal investment horizon for the County is 36 months. County Treasurers in Oregon may adopt investment horizons beyond 18 months if they develop an investment policy that is reviewed by the State Treasurer's Oregon Short Term Fund Board, and is adopted annually by the County's governing body. Jackson County has completed this process and has a policy authorizing an investment horizon of 36 months. State statutes authorize the County to invest in general obligations of the U.S. Government and its agencies, certain commercial paper, bankers’ acceptances, certain bonded obligations of Oregon municipalities, bank repurchase agreements, and the Oregon Local Government Investment Pool, among others. The county’s investment policy neither increases nor decreases the types of investments available per statute.

At June 30, 2010, the County's investments consisted of:

Fair Value Percent

Repurchase agreements 1,613,783$ 1.9%U.S. Government agency securities 62,768,413 72.5%Corporate paper 19,802,308 22.9%Local government investment pool 2,297,344 2.7%

Total investments 86,481,848$ 100.0%


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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 Statues 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. 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, 2010 were approximately: 77% mature within 93 days, 8% mature from 94 days to one year, and 15% mature from one to three years. In accordance with its investment policy, the County seeks to manage loss associated with changes in interest rates by structuring its portfolio so that securities mature to meet cash requirements for ongoing operations, thereby generally avoiding the need to sell securities prior to maturity. In addition, the 36 month investment horizon for operating and capital funds, combined with an attempt to keep maturities relatively short when rates appear to be rising, seeks to limit interest rate risk. As of June 30, 2010, maturities for the County's investments are as follows:

MaturitiesInvestment Type 0-1 years 1-3 years

Repurchase agreements 1,613,783$ -$ U.S. Government agency securities 5,014,050 57,754,363 Corporate Paper 11,133,100 8,669,208 Local government investment pool 2,297,344 -

Total fair value 20,058,277$ 66,423,571$

Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligation.

Investments in U.S Government Agency securities consist of U.S. Government instrumentalities which are rated AAA (S&P) or Aaa (Moody's). Investments in corporate paper are rated AA to AA+ (S&P) or A1 to Aa1 (Moody’s).


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The Repurchase Agreement is an overnight sweep of funds invested in U.S. Treasury and Agency securities. Treasury securities do not require a rating; U.S. Government instrumentalities carry an AAA/Aaa rating. Concentration of credit risk. The County’s investment policy is more restrictive than state statutes and seeks to manage concentration of credit risk through the establishment of maximum percentages for various types of investments, as well as maximums by issuing institution. Actual year-end percentages are provided in a previous table. The County's policy is as follows:

Diversification by Instrument Maximum Percent of PortfolioUS treasury obligations 100%US treasury instrumentalities 75%Bankers' acceptances 25%Certificates of deposit 65%Repurchase agreements 25%Corporate indebtedness 35%

Diversification by InstitutionLocal Government Investment Pool 50%US treasury instrumentality issuer 33%Any certificate of deposit issuer 30%Corporate indebtedness issuer 5%

Custodial credit risk. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The county previously implemented third-party safekeeping with Union Bank for non-depository investments. Investments held by Union Bank are held in the county’s name. Assets Held by Others for the Pension Trust Funds: Cash and investments of the pension trust funds consist of amounts deposited with Standard Insurance Company.

3. Interfund Receivables and Payables: The following is a listing of interfund receivables and payables by fund at June 30, 2010.


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3. Interfund Receivables and Payables: (Contd) Receivable Payable

Governmental Funds:General Fund 3,071,549$ 733,496$ General Road Fund 505,565 270,167 Health and Human Services Fund 91,643 766,977 Special Revenue Fund 120,394 457,637 Nonmajor governmental funds 841,390 1,451,155

4,630,541 3,679,432 Proprietary Funds:

Exposition Park Enterprise Fund 11,103 28,177 Airport Enterprise Fund 810,702 931,464 Recreation Enterprise Fund 41,240 64,376 Internal Service Funds 1,089,029 1,879,166

1,952,074 2,903,183

6,582,615$ 6,582,615$

All interfund balances resulted from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur, transactions are recorded in the accounting system, and payments between funds are made.

4. Receivables:

Receivables for the County's individual major funds and nonmajor funds, internal service funds and fiduciary funds are as follows:

Property InvestmentTaxes Accounts Assessments Income Total

Governmental activities:General Fund 2,317,006$ 2,289,137$ -$ 1,988,688$ 6,594,831$ General Road Fund - 1,651,600 1,443,587 - 3,095,187 Health and Human Services Fund - 1,034,414 - - 1,034,414 Special Revenue Fund - 73,543 - - 73,543 Nonmajor governmental funds 777,012 7,962 24,719 - 809,693 Internal service funds - 75,371 - - 75,371

3,094,018 5,132,027 1,468,306 1,988,688 11,683,039 Business-type activities:

Exposition Park Enterprise - 74,547 - - 74,547 Airport Enterprise Fund - 1,318,601 - - 1,318,601 Recreation Enterprise Fund - 878,743 - - 878,743

- 2,271,891 - - 2,271,891

Fiduciary Fund - Agency 14,175,981 - - - 14,175,981

Totals - all funds 17,269,999$ 7,403,918$ 1,468,306$ 1,988,688$ 28,130,911$


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4. Receivables: (Contd)

Except for two General Fund contracts receivable totaling $658,294, there are no significant accounts receivable balances not expected to be collected within one year. The contracts receivable are being collected in installments. The allowance for uncollectible accounts is not significant.

5. Capital Assets:

Capital asset activity for the year ended June 30, 2010 was as follows:

Beginning Ending Balances Increases Decreases Balances

Governmental activities:Capital assets not being depreciated:

Land 13,962,577$ 508,685$ -$ 14,471,262$ Construction in progress 49,645,744 13,529,626 39,479,965 23,695,405

Total capital assets not being depreciated 63,608,321 14,038,311 39,479,965 38,166,667

Capital assets being depreciated:Buildings and improvements 115,977,799 8,763,613 109,170 124,632,242 Equipment 24,425,815 2,758,528 1,003,514 26,180,829 Software 1,058,565 648,346 - 1,706,911 Infrastructure 152,044,878 27,284,942 58,898 179,270,922

Total capital assets being depreciated 293,507,057 39,455,429 1,171,582 331,790,904

Less accumulated depreciation for:Buildings and improvements 44,785,351 5,021,907 69,387 49,737,871 Equipment 17,705,603 1,987,699 973,393 18,719,909 Software 550,966 155,754 - 706,720 Infrastructure 43,339,960 4,740,574 18,619 48,061,915 Total accumulated depreciation 106,381,880 11,905,934 1,061,399 117,226,415

Total capital assets being depreciated, net 187,125,177 27,549,495 110,183 214,564,489

Governmental activities capital assets, net 250,733,498$ 41,587,806$ 39,590,148$ 252,731,156$

Business-type activities:Capital assets not being depreciated:

Land 17,615,182$ 31,020$ -$ 17,646,202$ Construction in progress 47,995,060 5,605,653 51,886,848 1,713,865

Total capital assets not being depreciated 65,610,242 5,636,673 51,886,848 19,360,067

Capital assets being depreciated:Buildings and improvements 80,463,550 53,938,388 82,448 134,319,490 Equipment 4,296,407 459,081 215,882 4,539,606

Total capital assets being depreciated 84,759,957 54,397,469 298,330 138,859,096

Less accumulated depreciation for:Buildings and improvements 40,415,047 3,265,226 15,870 43,664,403 Equipment 1,619,211 242,806 222,235 1,639,782

Total accumulated depreciation 42,034,258 3,508,032 238,105 45,304,185

Total capital assets being depreciated, net 42,725,699 50,889,437 60,225 93,554,911

Business-type activities capital assets, net 108,335,941$ 56,526,110$ 51,947,073$ 112,914,978$


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5. Capital Assets: (Contd)

Depreciation expense was charged to functions/programs of the County as follows:

Governmental activities: General government 1,076,793$ Elections and Records 50,786 Community justice and safety 1,628,083 Health and Human Services 361,461 Culture and recreation 2,131,504 Planning, Development, and Natural Rescources, inc depreciation of general infrastructure assets 289,693 Transportation, including depreciation of general infrastructure assets 5,461,975 Internal Services 905,639

Total depreciation expense, governmental activities 11,905,934$

Business-type activities: Airport enterprise 2,711,327$ Exposition park enterprise 428,708 Recreation enterprise 367,997

Total depreciation expense, business-type activities 3,508,032$

6. Budget:

Except for agency and pension trust funds, the County is required by State law to budget all funds. The Board order authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. All funds are legally adopted and expenditures are controlled at various levels established by the resolution, as follows: total expenditure by fund, by department, or by expenditure type (personal services, materials and services, capital outlay, other, transfers out to other funds). The latter level is the lowest level at which appropriations are adopted and the budgetary comparisons are presented at this level. Unexpected additional resources may be added to the budget through the use of a supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers and approval by the Board of Commissioners. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval by the Board of Commissioners. The County Administrator's office has been assigned authority to make appropriation adjustments within funds, including interdepartmental and expenditure type, without Board of Commissioner approval, provided the total appropriation for a fund is not increased and provided accumulated adjustments do not exceed 10% of the applicable fund total. The County made numerous appropriation transfers during the year ended June 30, 2010 within funds, with Board of Commissioners' approval. Appropriations lapse as of yearend.


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6. Budget: (Contd)

The County budgets its governmental fund types on the modified accrual basis of accounting and its proprietary fund types, with the exception of capital expenditures, depreciation and debt principal, on the accrual basis of accounting. All budgets are adopted on a fiscal year basis. Actual expenditures or transfers out (on a budgetary basis) were less than the appropriations authorized by the Board of County Commissioners.

7. Encumbrances:

Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to restrict that portion of the applicable appropriation, is employed in all budgeted funds during the year for administrative control purposes only. Encumbrances outstanding at year-end do not constitute expenditures or liabilities and are reflected as reservations of fund balance in the fund financial statements for governmental funds.

8. Construction Commitments:

The County has active construction projects as of June 30, 2010. The projects include remodel of the old Airport Terminal financed by AIP grants and passenger facility charges, road improvement projects financed by federal intergovernmental funds within the General Road Fund, courthouse remodel financed by general funds, and industrial rehabilitation projects within the urban renewal district financed by tax increment revenues. At year-end the government’s capital construction commitments are as follows: Remaining

Project Spent-to-date Commitment

West Main Street-widening & paving 3,160,105$ 53,729$ Old Airport Terminal Remodel 214,997 33,755 Ross Lane North 761,005 3,115,300 Airport Cargo Apron 504,947 160,799 Courthouse Remodel- IT Space 114,007 1,006,304 Avenue H West & North Industrial Storm Sewer 959,370 666,713

Total 5,714,431$ 5,036,600$


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9. Long-term Obligations:

Changes in long-term obligations for the year ended June 30, 2010 are as follows:

Balance Balance Due withinJuly 1, 2009 Additions Deletions June 30, 2010 One Year

Governmental ActivitiesBonds payable: General obligation bonds 30,770,000$ -$ 3,845,000$ $26,925,000 4,045,000$ Urban renewal bonds 4,285,000 - 1,060,000 3,225,000 740,000

Bancroft bond 1,027,538 - 114,112 913,426 - Other liabilities:

Accrued claims liability 3,333,967 3,219,743 2,466,530 4,087,180 1,939,010 Net pension obligation 699,401 864,121 725,679 837,843 -

Net OPEB obligation 496,346 767,416 297,038 966,724 - Compensated absences 4,447,082 3,409,659 3,550,922 4,305,819 2,268,655 Governmental activities

long-term liabilities 45,059,334$ 8,260,939$ 12,059,281$ 41,260,992$ 8,992,665$

The net pension obligation is a liability of the general fund. Pension costs are expensed during the year to all funds with payroll costs. The resulting liabilities are subsequently transferred to the general fund for payment. An internal service fund is used to pay the County's compensated absences liabilities. Internal service funds predominately serve the governmental funds. Accordingly, long-term obligations for them are included as part of the above totals for governmental activities. Also, the accrued claims liability is an internal service fund obligation.

Balance Balance Due withinJuly 1, 2009 Additions Deletions June 30, 2010 One Year

Business-Type ActivitiesBonds Payable 19,955,000$ -$ 300,000$ 19,655,000$ 320,000$ Unamortized bond premium 692,068 - 41,379 650,689 - Contract payable 128,334 - 10,000 118,334 10,000 Business-type activities

long-term liabilities 20,775,402$ -$ 351,379$ 20,424,023$ 330,000$


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9. Long-term Obligations: (Contd)

Bonds Payable:

Principal Interest Outstanding Issued Matured and Outstanding Matured and

July 1, During Paid During June 30, Paid During2009 Year Year 2010 Year

Governmental activities:General Obligation Bonds,

Series 2000 940,000$ -$ 940,000$ -$ 47,000$ General Obligation Bonds,

Series 2001 3,885,000 - 1,900,000 1,985,000 194,250 General Obligation Bonds,

Series 2002 13,445,000 - 1,005,000 12,440,000 587,985 General Obligation Bonds, Series 2006 12,500,000 - - 12,500,000 487,765 Bancroft Bonds,

Series 2009 1,027,538 - 114,112 913,426 36,308 Urban Renewal Bonds,

Series 1994 355,000 - 355,000 - 16,641 Urban Renewal Bonds,

Series 1999A 3,930,000 - 705,000 3,225,000 224,042

Total Governmental activities: 36,082,538$ -$ 5,019,112$ 31,063,426$ 1,593,991$

Business activites:Airport Bonds,

Series A - 2007 13,480,000$ -$ -$ $13,480,000 707,700$ Airport Bonds,

Series B - 2007 6,475,000 - 300,000 6,175,000 326,923

Total Business activities: 19,955,000$ -$ 300,000$ 19,655,000$ 1,034,623$

General Obligation Bonds: Series 2001: Jackson County General Obligation Juvenile Services Center Bonds - Series 2001, principal is due in varying annual installments through June 2011; interest paid semi-annually at 5.0%. The bonds are not subject to optional redemption. The proceeds of the bonds were used to finance the cost of land acquisition, capital construction and capital improvements of certain juvenile facilities.

Fiscal PrincipalYear Maturities Interest Total

2011 1,985,000$ 99,250$ 2,084,250$


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Series 2002: Jackson County General Obligation Library Bonds - Series 2002, principal is due in varying annual installments through June 2020; interest paid semi-annually at 2.0% through June 2005, graduating to 4.75% in 2018. Bonds maturing on or after June 1, 2013 are subject to redemption at the option of the County at any time on or after June 1, 2012, by lot within a maturity, at a price of par plus accrued interest to the date of redemption. The proceeds of the bonds are being used to finance the costs of land acquisition, capital construction, and improvements to library facilities.


2011 1,040,000$ 547,785$ 1,587,785$ 2012 1,075,000 506,185 1,581,185 2013 1,115,000 463,185 1,578,185 2014 1,160,000 418,585 1,578,585 2015 1,205,000 369,285 1,574,285 2016 1,255,000 317,470 1,572,470 2017 1,310,000 262,250 1,572,250 2018 1,365,000 203,300 1,568,300 2019 1,425,000 138,462 1,563,462 2020 1,490,000 70,775 1,560,775

12,440,000$ 3,297,282$ 15,737,282$

Series 2006: Jackson County General Obligation Library Refunding Bonds - Series 2006, principal is due in varying annual installments through June 2020; interest paid semi-annually at 4.00% through June 2015, 3.75% through June 2018, 3.875% for June 2019 and 4.00% for June 2020. The proceeds of the bonds were used to extinguish $12,730,000 of outstanding Series 2000 General Obligation Library Bonds through an in-substance defeasance. The in-substance defeasance was accomplished by placing the proceeds of the Series 2006 General Obligation Refunding Bonds in an irrevocable trust from which principal and interest payments will be made on the defeased debt. The excess of the reacquisition price of the defeased debt over its carrying value was deferred and is being amortized over the term of the Series 2006 bonds. In June 2010, the remaining $12,500,000 in bonds refunded with the 2006 bonds were retired.


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2011 1,020,000$ 487,765$ 1,507,765$ 2012 1,065,000 446,965 1,511,965 2013 1,110,000 404,365 1,514,365 2014 1,165,000 359,965 1,524,965 2015 1,215,000 313,365 1,528,365 2016 1,270,000 264,765 1,534,765 2017 1,320,000 217,775 1,537,775 2018 1,380,000 168,275 1,548,275 2019 1,445,000 116,525 1,561,525 2020 1,510,000 60,400 1,570,400

12,500,000$ 2,840,165$ 15,340,165$

Bancroft Bonds: Series 2009: Jackson County Roads Ironwood/Leafwood Local Improvement District. Principal is due at maturity or as a prepayment as money is received from the property owners. The bond matures on March 1, 2028. Interest payments at a rate of 5.15% are due semi-annually on September and March of each year commencing March 1, 2010. The proceeds of this bond were used to provide funds to finance the costs of the Ironwood/Leafwood Local Improvement District road improvement project, to pay off interim financing for the project and pay bond issuance costs. The debt service on the bond will be paid from payments received by the county from assessment contracts entered into with property owners who benefited from the road improvement project. Urban Renewal Bonds: Principal and interest on all Urban Renewal Bonds are payable first from all tax increment revenues and second, if necessary, from all other available resources. As part of the bond covenants, the Agency is required to certify to the County Assessor of Jackson County, Oregon, to the extent it is legally able to do so, each fiscal year bonds are outstanding, an amount sufficient so that the amount to be received is not less than the annual debt service on the bonds. In the event the tax increment revenues in such fiscal year are less than the annual debt service on the bonds in such fiscal year, then the Agency will certify to the County Assessor, to the extent it is legally able to do so, in future fiscal years such amounts as are necessary to make up any deficiency for previous fiscal years.


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Series 1999A: Jackson County Urban Renewal Agency, Urban Renewal Bonds - Series 1999A, principal is due in increasing annual installments through June 1, 2014; interest paid semiannually at 4.40% in 2000 to 5.90% in 2014; bonds may be prepaid on any interest payment date, in whole or in part.

Bond proceeds were designated for 1) refunding, on an advance refunding basis, the Urban Renewal Bonds series 1993; 2) paying costs of capital projects as defined in the 1999 project list, and; 3) paying the costs of issuance of the bonds. There is no reserve requirement for this issue.


2011 740,000$ 185,267$ 925,267$ 2012 785,000 143,828 928,828 2013 825,000 99,475 924,475 2014 875,000 51,625 926,625

3,225,000$ 480,195$ 3,705,195$

Airport Revenue Bonds:

Series 2007A & 2007B: Jackson County Airport Revenue Bonds – Series 2007A (non-AMT) in the amount of $13,480,000 and Series 2007B (AMT) in the amount of $6,475,000 dated July 10, 2007. Series 2007A interest paid semi-annually commencing December 1, 2007 at 5.25% through December, 2037. Series 2007A principal paid annually commencing December 1, 2023. Series 2007B interest paid semi-annually commencing December 1, 2007 at 5.169% through December, 2023. Series 2007B principal paid annually commencing December 1, 2009. Both Series 2007A and 2007B are subject to redemption prior to maturity at the option of the County, in whole or in part, on any date on or after December 1, 2017. The bond proceeds are being used with Airport and FAA revenues to construct a new terminal facility and related improvements at the Rogue Valley International-Medford Airport.


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Fiscal Principal PrincipalYear Maturities Interest Total Maturities Interest Total

2011 -$ 707,700$ 707,700$ 320,000$ 310,900$ 630,900$ 2012 - 707,700 707,700 340,000 293,844 633,844 2013 - 707,700 707,700 355,000 275,881 630,881 2014 - 707,700 707,700 375,000 257,016 632,016 2015 - 707,700 707,700 395,000 237,116 632,116 2016 - 707,700 707,700 415,000 216,181 631,181 2017 - 707,700 707,700 435,000 194,216 629,216 2018 - 707,700 707,700 460,000 171,088 631,088 2019 - 707,700 707,700 485,000 146,666 631,666 2020 - 707,700 707,700 510,000 120,950 630,950 2021 - 707,700 707,700 540,000 93,813 633,813 2022 - 707,700 707,700 560,000 65,384 625,384 2023 - 707,700 707,700 595,000 35,534 630,534 2024 235,000 701,531 936,531 390,000 10,078 400,078 2025 660,000 678,038 1,338,038 - - - 2026 695,000 642,469 1,337,469 - - - 2027 730,000 605,063 1,335,063 - - - 2028 770,000 565,688 1,335,688 - - - 2029 810,000 524,213 1,334,213 - - - 2030 855,000 480,506 1,335,506 - - - 2031 900,000 434,438 1,334,438 - - - 2032 950,000 385,875 1,335,875 - - - 2033 1,000,000 334,688 1,334,688 - - - 2034 1,055,000 280,744 1,335,744 - - - 2035 1,110,000 223,913 1,333,913 - - - 2036 1,175,000 163,931 1,338,931 - - - 2037 1,235,000 100,669 1,335,669 - - - 2038 1,300,000 34,125 1,334,125 - - -

13,480,000$ 15,355,991$ 28,835,991$ 6,175,000$ 2,428,667$ 8,603,667$

Series 2007A Series 2007B

Contract Payable:

The County is leasing land at the airport to a truck center. As part of the operating lease, the County has agreed to reimburse the lessee for $200,000 in improvements. The reimbursement is payable in monthly installments of $833 over a twenty-year period. Future amounts due are as follows:


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FiscalYear Total

2011 10,000$ 2012 10,000 2013 10,000 2014 10,000 2015 10,000 2016-2020 50,000 2021-2022 18,334

118,334$

SEC Rule 15c2-12:

Jackson County is required to file material events notices to a nationally recognized municipal securities information repository. Management believes there are no material events requiring filing as of the date of this report. Annual disclosure information is provided in the statistical section of this report.

10. Transfers:

Transfers are summarized as follows:

Transfer To

Governmental Funds Proprietary FundsHealth and Exposition

General Human Special Park Recreation InternalTransfer From General Road Services Revenue Nonmajor Airport Enterprise Enterprise Service Total

Governmental Funds:General -$ 6,130$ 2,428,849$ 81,479$ 2,021,069$ 1,644$ 5,563$ 195,438$ 2,290,979$ 7,031,151$ General Road - - - - - - - - 15,450 15,450 Health and Human

Services - - - - - - - - 12,963 12,963 Special Revenue 219,704 - 126,334 - 84,283 15,192 40,977 486,490 Nonmajor 56,387 300,000 - 2,256 724,561 - - 24,053 107,368 1,214,625 Proprietary Funds:

Internal Service 83,054 - - - - 25,746 - - 20,012 128,812

Total 359,145$ 306,130$ 2,555,183$ 83,735$ 2,829,913$ 27,390$ 20,755$ 260,468$ 2,446,772$ 8,889,491$

Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.


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11. Pension Plans:

a. Accounting Standards: The County follows Governmental Accounting Standards Board Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, (GASB No. 25) and Governmental Accounting Standards Board Statement No. 27, Accounting for Pensions by State and Local Governmental Employers (GASB No. 27). These Statements establish standards for the measurement, recognition and display of pension expenditures/expense and related liabilities, assets, note disclosures and required supplementary information in the financial reports of state and local employers. Employers that participate in single employer and agent multiple-employer defined benefit pension plans (sole and agent employers) are required to measure and disclose an amount for annual pension cost equal to the employer's annual required contribution (ARC) to the plan unless the employer has a net pension obligation (NPO) for past undercontributions or overcontributions. Employers that participate in cost-sharing multiple-employer plans are required to recognize annual pension costs equal to their contractually required contributions to the plan.

b. Oregon Public Employees Retirement System (OPERS): Plan Description - The County's defined benefit multiple-employer pension plan provides

retirement, death and disability benefits to participants or their beneficiaries. Jackson County is a participating employer in the Oregon Public Employees Retirement System (OPERS), a cost-sharing multiple-employer public employee retirement system, established under Oregon Revised Statutes 238.600, which acts as a common investment and administrative agent for public employers in the State of Oregon. All County employees are eligible to participate in OPERS in accordance with OPERS statutes. Benefits are established by state statute, and employer contributions are made at an actuarially determined rate as adopted by the Public Employees Retirement Board. OPERS, a component unit of the State of Oregon, issues a comprehensive annual financial report, which may be obtained by writing to Public Employees Retirement System, P.O. Box 73, Portland, Oregon 97207-0073 or by calling (503) 229-5824.

Funding Policy - The County is required to contribute to the system at an actuarially

determined rate. The current rate is 6.55% of annual covered payroll for general service member employees of the State and Local Government Rate Pool, 14.64% for PERS police and fire member employees, 7.30% for general service member employees of the Oregon Public Service Retirement Plan (OPSRP) and 10.01% for police and fire member employees of the OPSRP. State statutes require covered employees to contribute 6% of their annual covered salary to the system but allow the employer to pay any or all of the employees' contribution in addition to the required employers' contribution. The County currently pays for certain employees' contributions. Annual Pension Cost - For the fiscal years ended June 30, 2010, 2009 and 2008, the County's annual pension cost contributed was $6,394,505, $7,136,089, and $7,628,879 respectively.


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11. Pension Plans: (Contd)

c. Single Employer Plans #1, #3 and #5:

Plan Description, Funding Policy and Annual Pension Cost - The County has maintained five single employer (sole agent) defined benefit plans which provide retirement, death and disability benefits to participants or their beneficiaries. During the 1992-1993 fiscal year, the County's employees participating in pension plans #1, #3 and #5 voted to convert their current pension plans to OPERS. Enrollment was made retroactive as though each employee enrolled in OPERS on the date of hire. Since these plans have been integrated with OPERS, the County is no longer required to make contributions to these plans, as the contributions to these plans are now a part of the overall OPERS contribution.

Plans #1, #3 and #5 covered management, non-management general employees and members of the Jackson County Sheriff employees association. Sheriff's deputies and corrections officers, and Sheriff's management and confidential employees were covered by Plans #2 and #4. In December 1997, plan assets for Plans #2 and #4 were transferred to OPERS. At the time of conversion, 41 employees elected to remain in Plan #2 and 14 elected to remain in Plan #4. As of June 30, 2000, all transferable plan assets for plans #1, #3 and #5 had been transferred to OPERS.

d. Single Employer Plans #2 and #4:

Plan Description - Plans #2 and #4 (Sheriff's deputies and corrections officers, and Sheriff's management and confidential employees, respectively) of the County's single employer (sole agent) defined benefit pension plans have transferred agreed-upon assets to OPERS. All new employees that would have historically been eligible to participate in these plans are being enrolled as members of OPERS (see OPERS information above). Benefits are established by ORS 237.620(4), which states that the County must maintain pension plans for Police and Fire Department employees. Employer contributions are actuarially determined by Standard Life Insurance Company, which maintains the pension plans' assets. Standard Life Insurance Company issues an annual report, which can be obtained by writing Standard Life Insurance Company, 1100 S.W. Sixth Avenue, Portland, Oregon 97204-1093 or by calling (503) 321-7000.

Funding Policy - The contribution requirements of plan members and the County are established in contracts between the County and the Sheriff's Office. Members of Plans #2 and #4 are required to contribute 6% of their monthly salary, based on pre-tax dollars. The County contributes whatever amount is required in addition to accumulated employee contributions to pay for the cost of the plan. Currently, (January 1, 2010 valuation), the actuarially determined rates are 309.0% (4 active participants) and 142.7% (2 active participants) of covered payroll for Plans #2 and #4, assuming 6 and 5-year amortization periods, respectively.


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Annual Pension Cost and Net Pension Obligation - The County's annual pension cost and net pension obligation related to pension Plans #2 and #4 for the plan year ended December 31, 2009 is as follows:

Plan #2 Plan #4

Annual required contribution 1,223,879$ 484,440$ Interest on net pension obligation 65,183 (35,174) Adjustment to annual required contribution (185,158) 115,917

Annual pension cost 1,103,904 565,183

Contributions made by December 31, 2009 752,457 396,632

Increase (decrease) in net pension obligation 351,447 168,551

Net pension obligation, January 1, 2009 869,102 (468,989)

Net pension obligation, December 31, 2009 1,220,549$ (300,438)$

Financial Statement Liability:Net pension obligation, June 30, 2010 837,843$ (516,198)$


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The following table presents ten-year trend information for the County's active single employer pension plans:

Annual Percentage NetPlan Year Pension of APC Pension

Ending Cost (APC) Contributed Obligation

Plan #2 December 31, 2009 1,103,904$ 68.2% 1,220,549$ December 31, 2008 401,938 239.5% 869,103 December 31, 2007 336,495 280.2% 1,429,834 December 31, 2006 450,938 135.7% 1,705,106 December 31, 2005 521,318 172.9% 2,124,918

December 31, 2004 763,561 135.2% 2,476,676 December 31, 2003 1,024,639 86.0% 2,583,865 December 31, 2002 1,092,775 161.2% 2,440,514 December 31, 2001 1,242,549 104.2% 3,109,512 December 31, 2000 823,333 137.3% 3,161,586

Plan #4 December 31, 2009 565,183$ 70.2% (300,438)$ December 31, 2008 203,897 322.1% (468,989) December 31, 2007 238,309 270.1% (16,216)

December 31, 2006 221,581 191.8% 170,601 December 31, 2005 330,118 188.8% 555,458 December 31, 2004 447,605 114.0% 830,223 December 31, 2003 750,593 68.9% 987,843 December 31, 2002 708,126 137.6% 724,806 December 31, 2001 751,441 83.3% 991,225 December 31, 2000 421,405 155.1% 865,417


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Schedule of funding progress (10 years):

Actuarial Actuarial Unfunded AALValuation Actuarial Accrued as a Percent of

as of Value of Liability Assets Unfunded Covered CoveredJanuary 1 Assets (AAL) to AAL AAL Payroll Payroll

Plan #2 2010 10,503,044$ 14,291,953$ 73.5% 3,788,909$ 278,614$ 1359.9%2009 8,983,022 14,480,997 62.0% 5,497,975 294,597 1866.3%2008 11,631,393 14,176,061 82.0% 2,544,668 361,719 703.5%2007 11,062,207 13,468,670 82.1% 2,406,463 601,168 400.3%2006 9,984,077 12,863,057 77.6% 2,878,980 607,234 474.1%2005 9,014,238 12,394,560 72.7% 3,380,322 610,997 553.2%2004 7,899,814 12,420,572 63.6% 4,520,758 744,563 607.2%2003 5,972,268 11,640,824 51.3% 5,668,556 952,972 594.8%2002 4,941,819 11,098,303 44.5% 6,156,484 1,169,420 526.5%2001 7,219,459 13,500,890 53.5% 6,281,431 1,181,530 531.6%

Plan #4 2010 5,079,388$ 6,185,998$ 82.1% 1,106,610$ 119,875$ 923.1%2009 4,286,443 6,195,453 69.2% 1,909,010 230,407 828.5%2008 5,338,893 6,089,376 87.7% 750,483 194,486 385.9%2007 5,008,557 6,013,129 83.3% 1,004,572 187,364 536.2%2006 4,449,440 5,655,368 78.7% 1,205,928 239,976 502.5%2005 3,938,633 5,773,818 68.2% 1,835,185 311,717 588.7%2004 3,374,435 5,699,204 59.2% 2,324,769 307,704 755.5%2003 2,640,392 5,882,061 44.9% 3,241,669 594,240 545.5%2002 1,885,879 4,957,150 38.0% 3,071,271 830,605 369.8%2001 2,593,374 5,589,027 46.4% 2,995,653 837,929 357.5%

As of January 1, 2010, plans #2 and #4 have 4 and 2 active employees, respectively. Schedule of employer contributions (10 years):

Plan Year Annual Required Percent Ending Contribution Contributed

Plan #2 December 31, 2009 1,223,879$ 61.5%December 31, 2008 599,320 160.6%December 31, 2007 571,876 164.9%

December 31, 2006 744,272 82.2%December 31, 2005 863,210 104.5%December 31, 2004 1,010,907 86.1%December 31, 2003 1,258,262 70.0%December 31, 2002 1,390,440 126.7%December 31, 2001 1,561,983 82.9%December 31, 2000 1,017,254 111.2%


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Plan Year Annual Required Percent Ending Contribution Contributed

Plan #4 December 31, 2009 484,440$ 81.9% December 31, 2008 201,106 326.5%

December 31, 2007 267,681 240.5% December 31, 2006 317,152 134.0%

December 31, 2005 473,053 131.8% December 31, 2004 617,677 98.0%

December 31, 2003 875,379 55.7%December 31, 2002 878,780 110.9%December 31, 2001 904,963 69.1%December 31, 2000 528,375 123.7%

The annual required contribution for the current year was actuarially determined as part of a January 1, 2009 actuarial valuation using the entry age actuarial cost method. On January 1, 2009, the actuarial value of assets was equal to the balance in the deposit administration fund with interest accrued to the end of the previous calendar quarter, increased by the amount of any accrued or assumed contributions and decreased by the amount of any accrued expenses. The actuarial assumptions include projected salary increases of 4% per year and a return on investment of 7.5%. The unfunded actuarially accrued liability is being amortized as a level percentage of projected payroll expenses on an open basis over a 6-year period for Plan #2 and a 5-year period for Plan #4.

12. Postemployment Health Care Benefits: Plan Description The County maintains a single-employer defined benefit postemployment health care benefits plan.

The plan allows eligible retirees and their dependents to purchase continuation coverage under the County’s health insurance plans from the date of retirement until eligibility for Medicare. The County implemented GASB Statement No. 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions for the year ending June 30, 2009.

Funding Policy The eligible retirees and their dependents pay the cost of the health insurance at COBRA rates.

The County is responsible for an implicit rate subsidy that is the difference between the rate charged to retirees and the estimated rate that would be applicable to those retirees if the benefit was acquired for them as a separate group. There is no obligation on the part of the County to fund these benefits in advance. Funding is on a pay-as-you-go basis. The County made $297,038 in contributions to the plan for payment of benefits in 2009-10.


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12. Postemployment Health Care Benefits: (Contd)

Annual OPEB Cost and Net OPEB Obligation The County’s annual pension cost and net pension obligation to the plan for the year ended June

30, 2010 are as follows:

Annual required contribution 747,562$ Interest on net OPEB obligation 19,854 Adjustment to annual required contribution -

Annual OPEB cost 767,416

Contribution made (297,038)

Increase in net OPEB obligation 470,378

Net OPEB obligation - July 1, 2009 496,346

Net OPEB obligation - June 30, 2010 966,724$

The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2009-10 were as follows:

Percentage of Year Annual Annual OPEB Net OPEBEnded OPEB Cost Cost Contributed Obligation

6/30/2010 $767,416 38.7% $966,7246/30/2009 $727,708 31.8% $496,346

Funded Status and Funding Progress As of July 1, 2008, the actuarial accrued liability for benefits was $6,473,019 and the actuarial

value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $6,473,019. The covered payroll (annual payroll of active employees covered by the plan) was $40,533,000 and the ratio of the UAAL to the covered payroll was 15.98%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and

assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as actual results are compared with past expectations and new estimates are made about the future.


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12. Postemployment Health Care Benefits: (Contd)

Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and the plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the actuarial valuation conducted as of July 1, 2008, the entry age normal actuarial cost method was used. Under this method, the actuarial present value of the projected benefits of each active employee included in the valuation is allocated on a level basis over the service of the active employee between assumed entry age and assumed exit age. The actuarial assumptions included (a) a rate of return on the investment of present and future assets of 4%, and (b) annual health care cost trend rate increase at an initial rate between 8.5% and 12% depending on the plan. The assumed rate of increase slows with time, stabilizing at 5%.

13. Contingencies:

The County is party to various legal proceedings generally incidental to its business. Although the ultimate disposition of these proceedings is not presently determinable, management is vigorously defending the claims and does not believe that adverse determination in any or all of such proceedings will have a material adverse effect upon the financial condition of the County.

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, and any adjustments may become a liability of the General Fund or other applicable funds. County management believes that adjustments, if any, will not materially affect the County's financial condition.

14. Self-Insurance:

The County has established a Self-Insurance Internal Service Fund to account for and finance its risks of loss. The County is self-insured for unemployment compensation, workers' compensation, most general liability, auto liability, medical professional liability, police professional liability, and municipal liability exposures and manager’s health benefits. The County carries a primary general and auto liability policy which is subject to a $750,000 self-insured retention with a $10,000,000 per occurrence/aggregate. The County carries an Excess Workers' Compensation policy which is subject to a $650,000 self-insured retention and Statutory limits for Workers' Compensation claims, plus a $1,000,000 limit for Employers Liability claims. The County purchases insurance for the airport and several miscellaneous liability exposures. The County experienced no claim losses in excess of coverage obtained during fiscal years 2008, 2009 and 2010.


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14. Self-Insurance (cont):

Claims liabilities reported in the County's general purpose financial statements are based on an actuarial estimate of the ultimate cost of settling claims incurred, including incurred but not reported (IBNR) claims as of the balance sheet date. Claims liabilities include all incremental costs incurred directly as a result of a claim, and consider estimated recoveries on both settled and unsettled claims. Claims expense has been reduced by amounts recovered, or expected to be recovered through excess insurance.

At June 30, 2010, a total claims liability of $4,087,180 is reported in the Self-Insurance Fund. All prior and current-year claims are fully reserved and have not been discounted. The County does not utilize annuity contracts from commercial insurers. Therefore, during this reporting period, all known liabilities have been disclosed. Changes in the claims liability for the last three fiscal years are as follows:

Current-YearFiscal Year Balance at Claims and

Ending Beginning Change Claim Balance atJune 30 of Year Estimates Payments End of Year

2010 3,333,967$ 3,219,743$ 2,466,530$ 4,087,180$ 2009 3,015,821$ 3,294,732$ 2,976,586$ 3,333,967$ 2008 2,946,144$ 1,753,651$ 1,683,974$ 3,015,821$

15. Long-Term Liabilities Not Reported In The Funds:

The governmental funds balance sheet (page 3) includes a reconciliation between fund balances reported for governmental funds and net assets reported for governmental activities. One element of that reconciliation is the explanation that "long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds". The details of this $33,719,031 difference are as follows:

Bonds payable:General obligation bonds 26,925,000$ Urban renewal bonds 3,225,000 Bancroft bonds 913,426 Unamortized debt issuance costs/loss on refunding (779,934)

Compensated absences 2,037,164 Net pension obligation 321,645 Net OPEB obligation 966,724 Accrued interest on debt 110,006

Net adjustment related to long-term liabilities 33,719,031$


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15. Long-Term Liabilities Not Reported In The Funds: (Contd) The net pension obligation reflected above is the remaining balance estimated to exist as of June 30, 2010. The net pension obligation in Note No. 9 is the latest available actuarially determined balance as of December 31, 2009.

16. Related Party: In March 2009, the County loaned the County Administrator $654,000 for the purpose of

refinancing his primary residence. The loan is payable in 360 monthly installments of $2,922 or more, including interest at the rate of 3.46% per annum (the applicable federal rate at the time the loan was issued) on the unpaid balance. The first installment was paid April 2009 and the loan matures in March 2039. The loan is secured by a trust deed on the residence. The outstanding balance of the loan at June 30, 2010 was $637,294 and is included in receivables on the statement of net assets.

17. Subsequent Event: On December 29, 2010, Jackson County issued $10,300,000 in General Obligation Refunding

Bonds, Series 2010. The Series 2010 Bonds were issued to refund the County’s General Obligation Library Bonds, Series 2002 maturing on or after June 1, 2010 (callable bonds) through an in-substance defeasance. Principal on the Series 2010 Bonds is due in annual installments through June 2020 and interest is payable semi-annually at 2.0% to 4.5%.

COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES

NONMAJOR GOVERNMENTAL FUNDS County Schools Fund - This fund was established under Oregon Revised Statutes (ORS) 328.005 to provide school support. Federal forest reserve receipts allocated to schools under ORS 294.060 and other revenues specifically earmarked for schools under federal or State law cannot be used to reduce the property tax levy required under this Statute. Amounts appropriated in compliance with ORS 328.005 are apportioned to the County school districts by the County Schools Superintendent's Office as required by ORS 328.015 through 328.045. This fund's operations cover the levy, collection and payment of school tax and other specifically earmarked receipts by the County, but do not extend to apportionments or any other operations of the County Schools Superintendent's Office. Enhanced Law Enforcement District Fund - The District was created June 14, 1995 under authority of Oregon Revised Statute Chapter 451 by the Jackson County Board of Commissioners. Revenues consist primarily of a five-year serial levy. Capital Projects Funds - These funds were established to account for financial resources to be used for the acquisition or construction of major capital improvements not being financed by proprietary funds. Principal resources are charges for services, sale of bonds, interest and operating transfers. These funds include Capital Projects, White City Capital, Library Capital Project, White City Development and White City Lighting District. Debt Service Funds - These funds were established to account for the payment of principal and interest on the County's general obligation bonds. The principal source of funding is property taxes. These funds include Library Debt Service, Juvenile Debt Service and Urban Renewal Agency Debt Service. Permanent Fund - Established from estate proceeds. Interest earned is transferred to the library programs of the General Fund for the purchase of library books. This fund was closed during the 2009-10 fiscal year.


Combining Balance SheetNonmajor Governmental Funds

June 30, 2010

Special Revenue FundsEnhanced Capital Projects Funds

LawCounty Enforcement Capital White CitySchools District Projects Capital

ASSETS

Cash and investments 969$ 819,921$ 3,963,292$ 8,791,107$ Receivables (net of allowance for uncollectibles) - 73,855 24,719 7,962 Due from other funds - 6,118 32,264 2,840

Total assets 969$ 899,894$ 4,020,275$ 8,801,909$

LIABILITIES AND FUND BALANCES

Liabilities:Accounts payable -$ -$ -$ 241,504$ Due to other funds - 64,996 500,740 4,479 Deferred revenue - 60,242 24,719 - Retainages and other liabilities - - 15,984 71,578

Total liabilities - 125,238 541,443 317,561

Fund balances:Reserved for:

Encumbrances - - - 669,607 Debt service - - - -

Unreserved, undesignated 969 774,656 3,478,832 7,814,741

Total fund balances 969 774,656 3,478,832 8,484,348

Total liabilities and fund balances 969$ 899,894$ 4,020,275$ 8,801,909$

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Capital Projects Funds Debt Service Funds TotalLibrary White White City Library Juvenile Urban Renewal NonmajorCapital City Lighting Debt Debt Agency Debt GovernmentalProject Development District Service Service Service Funds

834,259$ 61,269$ 455,837$ 12,936$ 226,572$ 7,201,302$ 22,367,464$ - - 16,884 232,977 148,507 304,789 809,693

18,000 - - 782,168 - - 841,390

852,259$ 61,269$ 472,721$ 1,028,081$ 375,079$ 7,506,091$ 24,018,547$

70,091$ 44$ 9,210$ -$ -$ -$ 320,849$ 782,168 10,940 1,998 72,960 12,874 - 1,451,155

- - 13,720 192,004 123,489 263,169 677,343 - - - 18,000 - - 105,562

852,259 10,984 24,928 282,964 136,363 263,169 2,554,909

- - 45,000 - - - 714,607 - - - 745,117 238,716 7,242,922 8,226,755 - 50,285 402,793 - - - 12,522,276

- 50,285 447,793 745,117 238,716 7,242,922 21,463,638

852,259$ 61,269$ 472,721$ 1,028,081$ 375,079$ 7,506,091$ 24,018,547$

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Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Governmental Funds


Special Revenue FundsEnhanced Capital Projects Funds

LawCounty Enforcement Capital White CitySchools District Projects Capital

Revenues:Intergovernmental 1,107,026$ -$ 113,756$ -$ Charges for services - - 748,919 - Taxes - 1,333,018 - - Interest 387 21,141 108,094 290,488 Miscellaneous - - 12,660 -

Total revenues 1,107,413 1,354,159 983,429 290,488


General government 1,106,544 - 294,194 - Community justice & safety - 924,433 - - Culture & recreation - - 125,700 - Planning, development & natural resources - - - 1,401,230 Transportation - - 100,525 -

Debt service:Principal - - 114,112 - Interest - - 36,308 -

Capital outlay:General government - - 4,257,378 - Culture & recreation - - 7,851 - Planning, development & natural resources - - - 3,923,537 Transportation - - 232,901 -

Total expenditures 1,106,544 924,433 5,168,969 5,324,767

Excess (deficiency) of revenuesover expenditures 869 429,726 (4,185,540) (5,034,279)

Other financing sources (uses):Transfers in - - 2,021,069 - Transfers out - (54,552) (324,053) (62,676)

Total other financing sources (uses) - (54,552) 1,697,016 (62,676)

Net change in fund balances 869 375,174 (2,488,524) (5,096,955)

Fund balances (deficit) - beginning 100 399,482 5,967,356 13,581,303

Fund balances - ending 969$ 774,656$ 3,478,832$ 8,484,348$

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Capital Projects Funds Debt Service Funds TotalLibrary White White City Library Juvenile Urban Renewal NonmajorCapital City Lighting Debt Debt Agency Debt Permanent GovernmentalProject Development District Service Service Service Fund Funds

-$ -$ -$ -$ -$ -$ -$ 1,220,782$ - - - - - - - 748,919 - - 309,962 3,038,303 2,292,512 303,640 - 7,277,435

4,234 2,292 9,900 29,729 24,455 201,035 584 692,339 - - - - - - - 12,660

4,234 2,292 319,862 3,068,032 2,316,967 504,675 584 9,952,135

- - - - - - - 1,400,738 - - - - - - - 924,433

24,681 - - - - - - 150,381 - 210,816 105,984 - - - - 1,718,030 - - - - - - - 100,525

- - - 1,945,000 1,900,000 1,060,000 - 5,019,112 - - - 1,122,750 194,250 240,683 - 1,593,991

- - - - - - - 4,257,378 143,591 - - - - - - 151,442

- - - - - - - 3,923,537 - - - - - - - 232,901

168,272 210,816 105,984 3,067,750 2,094,250 1,300,683 - 19,472,468

(164,038) (208,524) 213,878 282 222,717 (796,008) 584 (9,520,333)

- 62,676 - 746,168 - - - 2,829,913 (746,169) - - - - - (27,175) (1,214,625)

(746,169) 62,676 - 746,168 - - (27,175) 1,615,288

(910,207) (145,848) 213,878 746,450 222,717 (796,008) (26,591) (7,905,045)

910,207 196,133 233,915 (1,333) 15,999 8,038,930 26,591 29,368,683

-$ 50,285$ 447,793$ 745,117$ 238,716$ 7,242,922$ -$ 21,463,638$

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County Schools FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental 1,250,000$ 1,250,000$ 1,107,026$ (142,974)$ Interest - - 387 387

Total revenues 1,250,000 1,250,000 1,107,413 (142,587)

Expenditures:General government:

Materials and services 1,250,000 1,250,000 1,106,544 143,456

Net change in fund balance - - 869 869

Fund balance - beginning - - 100 100

Fund balance - ending -$ -$ 969$ 969$

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Enhanced Law Enforcement District FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Taxes 1,416,332$ 1,416,332$ 1,333,018$ (83,314)$ Interest 9,020 9,020 21,141 12,121

Total revenues 1,425,352 1,425,352 1,354,159 (71,193)

Expenditures:Community justice & safety:


Total expenditures 1,598,378 1,705,478 924,433 781,045

Excess (deficiency) of revenues overexpenditures (173,026) (280,126) 429,726 709,852

Other financing sources (uses):Transfers out (161,922) (54,822) (54,552) 270

Net change in fund balance (334,948) (334,948) 375,174 710,122

Fund balance - beginning 334,948 334,948 399,482 64,534

Fund balance - ending -$ -$ 774,656$ 774,656$

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Capital Projects FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental -$ 524,800$ 113,756$ (411,044)$ Charges for services 991,500 991,500 748,919 (242,581) Interest 58,495 58,495 108,094 49,599 Miscellaneous - - 12,660 12,660

Total revenues 1,049,995 1,574,795 983,429 (591,366)

Expenditures:Capital Projects:

Materials and services - 524,800 294,194 230,606 Capital outlay 5,599,370 5,599,370 4,257,378 1,341,992

Total Capital Projects 5,599,370 6,124,170 4,551,572 1,572,598

County-City Arterial:Materials and services 2,039 2,039 - 2,039

Street Improvement:Materials and services 738,000 738,000 - 738,000 Debt service 350,000 350,000 150,420 199,580 Capital outlay 400,000 400,000 - 400,000

Total Street Improvement 1,488,000 1,488,000 150,420 1,337,580

Greenway:Materials and services 640 640 45 595 Capital outlay 106,000 106,000 21,310 84,690

Total Greenway 106,640 106,640 21,355 85,285

Road System Development:Materials and services 90,000 90,000 46,807 43,193

Parks System Development:Materials and services 86,500 74,500 - 74,500

(Continues)-56-


Capital Projects FundSchedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualFor the fiscal year ended June 30, 2010



Britt Capital Improvements:Materials and services 167,294$ 161,294$ 125,700$ 35,594$ Capital outlay - 8,000 7,851 149

Total Britt Capital Improvements 167,294 169,294 133,551 35,743

Bridge Replacement:Materials and services 90,000 1,585,000 53,673 1,531,327 Capital outlay 1,425,000 225,000 211,591 13,409

Total Bridge Replacement 1,515,000 1,810,000 265,264 1,544,736


Excess (deficiency) of revenues overexpenditures (8,004,848) (8,289,848) (4,185,540) 4,104,308

Other financing sources (uses):Transfers in 1,727,937 2,033,907 2,021,069 (12,838) Transfers out (381,000) (393,000) (324,053) 68,947 Issuance of debt 400,000 400,000 - (400,000)

Total other financing sources (uses) 1,746,937 2,040,907 1,697,016 (343,891)

Net change in fund balance (6,257,911) (6,248,941) (2,488,524) 3,760,417

Fund balance - beginning 6,257,911 6,248,941 5,967,356 (281,585)


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White City Capital FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Interest 245,648$ 245,648$ 290,488$ 44,840$

Expenditures:Planning, development & natural resources:

Materials and services 3,157,682 3,157,682 1,401,230 1,756,452 Capital outlay 10,126,505 10,126,505 3,923,537 6,202,968


Excess (deficiency) of revenues overexpenditures (13,038,539) (13,038,539) (5,034,279) 8,004,260

Other financing sources (uses):Transfers out (62,676) (62,676) (62,676) -

Net change in fund balance (13,101,215) (13,101,215) (5,096,955) 8,004,260

Fund balance - beginning 13,101,215 13,101,215 13,581,303 480,088


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Library Capital Project FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Interest 15,000$ 15,000$ 4,234$ (10,766)$

Expenditures:Culture & recreation:

Materials and services - - 24,681 (24,681) Capital outlay 1,615,000 765,000 143,591 621,409

Total expenditures 1,615,000 765,000 168,272 596,728

Excess (deficiency) of revenues overexpenditures (1,600,000) (750,000) (164,038) 585,962

Other financing sources (uses):Transfers out - (850,000) (746,169) 103,831

Net change in fund balance (1,600,000) (1,600,000) (910,207) 689,793

Fund balance - beginning 1,600,000 1,600,000 910,207 (689,793)

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

-59-


White City Development FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Interest 321$ 321$ 2,292$ 1,971$



Total expenditures 234,216 234,216 210,816 23,400

Excess (deficiency) of revenues overexpenditures (233,895) (233,895) (208,524) 25,371

Other financing sources:Transfers in 62,676 62,676 62,676 -

Net change in fund balance (171,219) (171,219) (145,848) 25,371



-60-


White City Lighting DistrictSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Taxes 321,603$ 321,603$ 309,962$ (11,641)$ Interest 383 383 9,900 9,517

Total revenues 321,986 321,986 319,862 (2,124)


Materials and services 541,029 541,029 105,984 435,045




-61-


Library Debt Service FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Taxes 3,038,564$ 2,188,564$ 3,038,303$ 849,739$ Interest 30,686 30,686 29,729 (957)

Total revenues 3,069,250 2,219,250 3,068,032 848,782

Expenditures:Culture & recreation:

Materials and services 1,500 1,500 - 1,500 Debt service:

Principal 1,945,000 1,945,000 1,945,000 - Interest 1,122,750 1,122,750 1,122,750 -

Total expenditures 3,069,250 3,069,250 3,067,750 1,500

Excess (deficiency) of revenues overexpenditures - (850,000) 282 850,282

Other financing sources:Transfers in - 850,000 746,168 (103,832)

Net change in fund balance - - 746,450 746,450

Fund balance (deficit) - beginning - - (1,333) (1,333)


-62-


Juvenile Debt Service FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Taxes 2,283,298$ 2,283,298$ 2,292,512$ 9,214$ Interest 20,927 20,927 24,455 3,528

Total revenues 2,304,225 2,304,225 2,316,967 12,742

Expenditures:Community justice & safety:

Materials and services 500 500 - 500 Debt service:

Principal 1,900,000 1,900,000 1,900,000 - Interest 194,250 194,250 194,250 -

Total expenditures 2,094,750 2,094,750 2,094,250 500

Net change in fund balance 209,475 209,475 222,717 13,242

Fund balance - beginning (209,475) (209,475) 15,999 225,474


-63-


Urban Renewal Agency Debt Service FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Taxes 151,422$ 151,422$ 303,640$ 152,218$ Interest 145,378 145,378 201,035 55,657

Total revenues 296,800 296,800 504,675 207,875


Materials and services 504,540 504,540 - 504,540 Other 4,306,698 4,306,698 - 4,306,698

Debt service:Principal 1,060,000 1,060,000 1,060,000 - Interest 240,683 240,683 240,683 -





-64-


Permanent FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Interest 544$ 544$ 584$ 40$

Other financing sources (uses):Transfers out - (27,175) (27,175) -

Net change in fund balance 544 (26,631) (26,591) 40

Fund balance - beginning (544) 26,631 26,591 (40)

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

-65-

ENTERPRISE FUNDS These funds are used to account for the acquisition, operation and maintenance of County facilities which are predominately self-supporting through service charges and user fees to customers. • Exposition Park Enterprise • Airport Enterprise • Recreation Enterprise


Exposition Park Enterprise FundSchedule of Revenues, Expenditures and Changes in Fund Balance -

Budget (Non-GAAP Budgetary Basis) and ActualFor the fiscal year ended June 30, 2010



Revenues:Intergovernmental 49,405$ 49,405$ 41,963$ (7,442)$ Charges for services 1,570,100 1,617,795 1,436,638 (181,157) Interest 3,500 3,500 4,421 921 Miscellaneous 235,000 235,000 196,183 (38,817)

Total revenues 1,858,005 1,905,700 1,679,205 (226,495)

Expenditures:Operations:

Personal services 580,234 580,234 530,481 49,753 Materials and services 1,372,571 1,420,266 1,350,599 69,667


Excess (deficiency) of revenues overexpenditures (94,800) (94,800) (201,875) (107,075)

Other financing sources (uses):Transfers in 18,488 18,488 20,755 2,267 Transfers out (6,188) (6,188) - 6,188

Total other financing sources (uses): 12,300 12,300 20,755 8,455

Net change in fund balance (82,500) (82,500) (181,120) (98,620)



Totals from above:Revenues 1,679,205$ Expenditures (1,881,080) Other financing sources (uses) 20,755

(181,120) Add:

Capital contributions 1,003,000 Less:

Depreciation (428,708)

Change in net assets as reported in the Statement of Revenues, Expenses and Changes in Fund Net Assets 393,172$

-66-


Airport Enterprise FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental 19,619,911$ 19,619,911$ 6,127,366$ (13,492,545)$Charges for services 8,758,793 8,758,793 8,531,026 (227,767) Fines & forfeitures 2,540 2,540 1,135 (1,405) Interest 365,635 339,889 296,668 (43,221) Miscellaneous 11,000 11,000 46,516 35,516

Total revenues 28,757,879 28,732,133 15,002,711 (13,729,422)


Personal services 2,363,297 2,363,297 1,995,306 367,991 Materials and services 10,806,260 10,806,260 2,681,043 8,125,217 Capital outlay 22,856,405 22,965,188 5,998,369 16,966,819 Other 2,629,803 2,629,803 1,343,330 1,286,473


Excess (deficiency) of revenues overexpenditures (9,897,886) (10,032,415) 2,984,663 13,017,078

Other financing sources (uses):Transfers in 1,427 27,173 27,390 217 Transfers out (1,427) (1,427) - 1,427

Total other financing sources (uses): - 25,746 27,390 1,644





3,012,053 Add:

Expenditures capitalized 5,998,369 Interest capitalized 1,035,101 Bonds payable principal payment 300,000 Contract payable payment 10,000 Amortization of bond premium 41,379

Less:Depreciation (2,711,327) Amortization of issuance costs (48,159) Book value of capital assets sold (60,225)

Change in net assets as reported in the Statement of Revenues, Expenses and Changes in Fund Net Assets 7,577,191$

-67-


Recreation Enterprise FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental 647,929$ 6,457,929$ 2,564,510$ (3,893,419)$ Charges for services 728,200 728,200 768,717 40,517 Fines and forfeitures - - 240 240 Interest 18,000 18,000 20,935 2,935 Miscellaneous 700 700 2,441 1,741

Total revenues 1,394,829 7,204,829 3,356,843 (3,847,986)


Personal services 737,650 737,650 734,821 2,829 Materials and services 1,025,025 6,973,062 2,784,332 4,188,730 Capital outlay 180,500 492,500 110,824 381,676


Excess (deficiency) of revenues overexpenditures (548,346) (998,383) (273,134) 725,249

Other financing sources (uses):Transfers in 116,081 323,081 260,468 (62,613) Transfers out (381) (381) - 381

Total other financing sources (uses) 115,700 322,700 260,468 (62,232)

Net change in fund balance (432,646) (675,683) (12,666) 663,017

Fund balance - beginning 432,646 675,683 675,684 1



(12,666) Add:

Expenditures capitalized 110,824 Less:

Depreciation (367,997)

Change in net assets as reported in the Statement of Revenues, Expenses and Changes in Fund Net Assets (269,839)$

-68-

INTERNAL SERVICE FUNDS These funds are used to account for activities and services performed for other organizational units within the County on a cost reimbursement basis. Charges to other organizational units are made to support these activities. Internal Service Funds include Motor Pool, Computer Replacement, Self-insurance and Central Services.


Combining Statement of Net AssetsInternal Service Funds

June 30, 2010

Motor Computer Self- CentralPool Replacement Insurance Services Total

ASSETS

Current assets:Cash and investments 719,491$ 682,024$ 11,009,239$ 5,507,010$ 17,917,764$ Receivables (net of allowance for uncollectibles) 53,759 - - 21,612 75,371 Deposits and prepaid items - - 67,500 22,721 90,221 Due from other funds 673,608 - 5,543 409,878 1,089,029 Inventories 47,718 - - - 47,718

Total current assets 1,494,576 682,024 11,082,282 5,961,221 19,220,103

Capital assets:Land 382,150 - - - 382,150 Buildings 416,058 - - 137,933 553,991 Software - - - 322,452 322,452 Equipment 7,286,489 - - 662,043 7,948,532 Less accumulated depreciation (5,038,224) - - (559,604) (5,597,828)

Total capital assets (net of accumulated depreciation) 3,046,473 - - 562,824 3,609,297

Total assets 4,541,049 682,024 11,082,282 6,524,045 22,829,400

LIABILITIES

Current liabilities:Accounts payable 182,147 - 89,951 486,055 758,153 Accrued claims liability - - 4,087,180 - 4,087,180 Due to other funds 97,611 1,088 1,225,382 555,085 1,879,166 Compensated absences - - - 2,268,655 2,268,655 Retainages and other liabilities - - 1,052 2,351 3,403

Total liabilities 279,758 1,088 5,403,565 3,312,146 8,996,557

NET ASSETS

Invested in capital assets, net of related debt 3,046,473 - - 562,824 3,609,297 Unrestricted 1,214,818 680,936 5,678,717 2,649,075 10,223,546

Total net assets 4,261,291$ 680,936$ 5,678,717$ 3,211,899$ 13,832,843$

-69-


Combining Statement of Revenues, Expenses and Changes in Fund Net AssetsInternal Service Funds



Operating revenues:Intergovernmental -$ -$ -$ 332,524$ 332,524$ Charges for services 2,077,948 249,675 6,169,256 9,228,829 17,725,708 Other - 993 4,228 17,139 22,360

Total operating revenues 2,077,948 250,668 6,173,484 9,578,492 18,080,592

Operating expenses:Salaries and wages 173,061 - 138,121 4,807,355 5,118,537 Payroll taxes and benefits 90,454 - 56,898 2,121,966 2,269,318 General operating expenses 32,841 163,210 6,150,308 1,284,040 7,630,399 Property maintenance and utilities 22,786 - - 2,083,603 2,106,389 Equipment maintenance 707,832 - - 2,220 710,052 Professional and other support services 71,332 - 442,352 771,108 1,284,792 Depreciation 819,052 - - 86,587 905,639 Other 1,486 15,458 5,156 400,569 422,669

Total operating expenses 1,918,844 178,668 6,792,835 11,557,448 20,447,795

Operating income (loss) 159,104 72,000 (619,351) (1,978,956) (2,367,203)

Nonoperating revenues (expenses):Interest revenue 31,467 17,518 258,118 164,569 471,672 Gain on sale of capital assets 71,735 - - - 71,735 Loss on sale of capital assets (30,122) - - - (30,122)

Total nonoperating revenues(expenses) 73,080 17,518 258,118 164,569 513,285

Income (loss) before transfers 232,184 89,518 (361,233) (1,814,387) (1,853,918)

Operating transfers in 418,023 - - 2,028,749 2,446,772 Operating transfers out (108,800) - - (20,012) (128,812)

Change in net assets 541,407 89,518 (361,233) 194,350 464,042

Total net assets - beginning 3,719,884 591,418 6,039,950 3,017,549 13,368,801

Total net assets - ending 4,261,291$ 680,936$ 5,678,717$ 3,211,899$ 13,832,843$

-70-


Combining Statement of Cash FlowsInternal Service Funds



Cash flows from operating activities:Receipts from interfund services provided 1,695,017$ 250,456$ 6,357,708$ 9,991,118$ 18,294,299$Employee payroll payments (263,515) - (195,019) (6,999,535) (7,458,069) Purchases of goods and services (581,652) (181,240) (4,495,033) (4,842,576) (10,100,501)Receipts from outside agencies - - - 332,524 332,524 Payments for interfund services used (78,174) - (187,941) (518,215) (784,330) Other operating receipts - 993 4,228 17,139 22,360

Net cash provided by (used in) operating activities 771,676 70,209 1,483,943 (2,019,545) 306,283

Cash flows from noncapital financing activities:Transfers received 418,023 - - 2,028,749 2,446,772 Transfers paid (108,800) - - (20,012) (128,812)

Net cash provided by (used in) noncapitalfinancing activities 309,223 - - 2,008,737 2,317,960

Cash flows from capital and related financing activities:

Proceeds from sale of capital assets 71,735 - - - 71,735 Purchase of capital assets (1,395,036) - - (276,388) (1,671,424)

Net cash provided by (used in) capital andrelated financing activities (1,323,301) - - (276,388) (1,599,689)

Cash flows from investing activities:Interest on investments 31,467 17,518 258,118 164,569 471,672

Net increase (decrease) in cash and investments (210,935) 87,727 1,742,061 (122,627) 1,496,226

Cash and investments - beginning 930,426 594,297 9,267,178 5,629,637 16,421,538

Cash and investments - ending 719,491$ 682,024$ 11,009,239$ 5,507,010$ 17,917,764$

Reconciliation of Operating Income (Loss) to NetCash Provided by (Used in) Operating Activities:

Operating income (loss) 159,104$ 72,000$ (619,351)$ (1,978,956)$ (2,367,203)

Adjustments to reconcile operating income (loss) to netcash provided by (used in) operating activities:

Depreciation 819,052 - - 86,587 905,639 (Increase) decrease in:

Accounts receivable (35,060) 678 528 12,111 (21,743) Interfund receivable (347,871) 103 186,872 750,178 589,282 Prepaid expenses - - (2,434) 5,025 2,591 Inventories (26,310) - - - (26,310)

Increase (decrease) in:Accounts payable 153,496 - (8,310) (814,091) (668,905) Accrued claims liability - - 753,213 - 753,213 Interfund payable 49,265 (2,572) 1,172,373 (10,822) 1,208,244 Compensated absences - - - (70,214) (70,214) Retainages and other liabilities - - 1,052 637 1,689

Total adjustments 612,572 (1,791) 2,103,294 (40,589) 2,673,486

Net cash provided by (used in) operating activities 771,676$ 70,209$ 1,483,943$ (2,019,545)$ 306,283$

Noncash investing, capital and financing activities:Book value of capital assets sold 30,122$ -$ -$ -$ 30,122$ Gain (loss) on sale of capital assets (30,122) - - - (30,122)

Total noncash investing, capital andfinancing activities -$ -$ -$ -$ -$

-71-


Motor Pool FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Charges for services 1,894,222$ 1,732,654$ 2,077,948$ 345,294$ Interest 25,000 25,000 31,467 6,467 Other - - 71,735 71,735

Total revenues 1,919,222 1,757,654 2,181,150 423,496

Expenditures:Personal services 257,649 257,649 263,515 (5,866) Materials and services 1,772,946 1,497,398 836,277 661,121 Capital outlay 1,214,522 1,408,481 1,395,036 13,445 Other 11,786 11,786 - 11,786



Other financing sources (uses):Transfers in 230,809 425,336 418,023 (7,313) Transfers out (287) (114,835) (108,800) 6,035

Total other financing sources (uses): 230,522 310,501 309,223 (1,278)


Fund balance - beginning 1,107,159 1,107,159 1,219,273 112,114



(4,455) Add:

Expenditures capitalized 1,395,036 Less:

Depreciation (819,052) Book value of capital assets sold (30,122)

Change in net assets as reported in the Combining Statement ofRevenues, Expenses and Changes in Fund Net Assets 541,407$

-72-


Computer Replacement FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Charges for services 249,676$ 249,676$ 249,675$ (1)$ Interest 6,000 6,000 17,518 11,518 Miscellaneous - - 993 993

Total revenues 255,676 255,676 268,186 12,510

Expenditures:Materials and services 546,715 546,715 178,668 368,047

Excess (deficiency) of revenues overexpenditures (291,039) (291,039) 89,518 380,557

Other financing sources (uses):Transfers out (84,144) (84,144) - 84,144




Totals from above:Revenues 268,186$ Expenditures (178,668)


-73-


Self-Insurance FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental -$ -$ 10,387$ 10,387$ Charges for services 6,466,074 6,466,074 6,158,869 (307,205) Interest 172,000 172,000 258,118 86,118 Other - - 4,228 4,228

Total revenues 6,638,074 6,638,074 6,431,602 (206,472)

Expenditures:Personal services 204,213 204,213 195,019 9,194 Materials and services 13,784,087 13,784,087 6,597,816 7,186,271



Fund balance - beginning 7,350,226 7,350,226 6,039,950 (1,310,276)


Totals from above:Revenues 6,431,602$ Expenditures (6,792,835)

Change in net assets as reported in the Combining Statement ofRevenues, Expenses and Changes in Fund Net Assets (361,233)$

-74-


Central Services FundSchedule of Revenues, Expenditures and Changes in Fund Balance -




Revenues:Intergovernmental 83,374$ 448,374$ 332,524$ (115,850)$ Charges for services 9,510,523 9,982,805 9,228,829 (753,976) Interest 22,356 22,356 164,569 142,213 Miscellaneous 550 2,803 17,139 14,336

Total revenues 9,616,803 10,456,338 9,743,061 (713,277)

Expenditures:Commissioners:


Total Commissioners 786,555 786,555 591,206 195,349

Information Technology:Personal services 2,510,558 2,595,558 2,470,735 124,823 Materials and services 1,583,331 1,879,562 1,740,872 138,690

Total Information Technology 4,093,889 4,475,120 4,211,607 263,513

Treasury & Financial Services:Personal services 682,835 682,835 671,746 11,089 Materials and services 86,115 86,115 70,983 15,132

Total Treasury & Financial Services 768,950 768,950 742,729 26,221

County Counsel:Personal services 662,160 662,160 623,637 38,523 Materials and services 99,082 99,082 76,254 22,828

Total County Counsel 761,242 761,242 699,891 61,351

County Administration:Personal services 2,644,969 2,692,969 2,582,336 110,633 Materials and services 2,548,424 3,074,235 2,730,559 343,676 Capital Outlay - 12,602 77,296 (64,694)

Total County Administration 5,193,393 5,779,806 5,390,191 389,615

Fiduciary:Materials and services 767,562 637,506 3,063 634,443

(Continues)-75-


Central Services FundSchedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and ActualFor the fiscal year ended June 30, 2010



Expenditures: (Contd)Library Services:

Personal services 96,560$ 96,560$ 93,669$ 2,891$ Materials and services 19,028 19,028 14,893 4,135

Total Library Services 115,588 115,588 108,562 7,026


Excess (deficiency) of revenues overexpenditures (2,870,376) (2,868,429) (2,004,188) 864,241

Other financing sources (uses):Transfers in 2,153,170 2,143,235 2,028,749 (114,486) Transfers out (28,000) (20,012) (20,012) -

Total other financing sources (uses) 2,125,170 2,123,223 2,008,737 (114,486)


Fund balance - beginning 745,206 745,206 2,644,526 1,899,320


Totals from above:Revenues 9,743,061$ Expenditures (11,747,249) Other financing sources (uses) 2,008,737

4,549 Add:

Expenditures Capitalized 276,388

Less:Depreciation (86,587)


-76-

FIDUCIARY FUND TYPES Trust and Agency Funds account for resources received and held by the County in a fiduciary capacity or as an agent for private organizations, other governments and other funds. Disbursements from these funds are made in accordance with the trust agreement or applicable legislative enactment. These include Pension Trust Funds and Agency Funds. Pension Trust Funds are accounted for in essentially the same manner as proprietary funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. PENSION TRUST FUNDS: (Nonbudgeted)

To account for County pension plans. • Jackson County Employees' Retirement Plan #2 • Jackson County Employees' Retirement Plan #4 AGENCY FUNDS: (Nonbudgeted) • Clerk Recording - For the receipt and disbursement of funds collected by the County Clerk

on behalf of other agencies.

• Southern Justice Court - For the receipt and disbursement of court fines and fees paid to Jackson County and other agencies.

• Forfeiture - To account for receipt and disbursement of seized property, which is turned over to other agencies or retained by Jackson County.

• Sheriff - For the receipt and disbursement of bail payments which are turned over to the State courts.

• Special Deposits - Amounts on deposit with the County Treasurer, including unclaimed warrants, within parameters established by State law.

• Property Tax Clearing - Used for the depositing and distributing of all tax funds received by the County Tax Collector.


Combining Statement of Fiduciary Net AssetsPension Trust Funds

June 30, 2010

Jackson County Employees' Retirement Plan Trust Funds Totals

Plan #2 Plan #4 2010 2009ASSETS

Cash and investments 10,443,449$ 5,104,274$ 15,547,723$ 14,304,626$

NET ASSETS

Held in trust for employees'pension benefits 10,443,449$ 5,104,274$ 15,547,723$ 14,304,626$

-77-


Combining Statement of Changes in Fiduciary Net AssetsPension Trust Funds


Jackson County Employees' Retirement Plan Trust Fund TotalsPlan #2 Plan #4 2010 2009

Additions:Contributions - employer 742,280$ 393,280$ 1,135,560$ 1,151,805$ Investment earnings (loss) 1,158,143 565,625 1,723,768 (2,523,885)

Total additions 1,900,423 958,905 2,859,328 (1,372,080)

Deductions:Benefits 1,092,653 507,831 1,600,484 1,460,665 Transfers - - - 596,372 Administrative expenses 8,530 7,217 15,747 12,731

Total deductions 1,101,183 515,048 1,616,231 2,069,768

Change in net assets 799,240 443,857 1,243,097 (3,441,848)

Net assets - beginning 9,644,209 4,660,417 14,304,626 17,746,474

Net assets - ending 10,443,449$ 5,104,274$ 15,547,723$ 14,304,626$

-78-


Combining Statement of Fiduciary Net AssetsAgency FundsJune 30, 2010

Southern PropertyClerk Justice Special Tax Totals

Recording Court Forfeiture Sheriff Deposits Clearing 2010 2009ASSETS

Cash and investments 5,250$ 243,272$ 95,102$ 3,515$ 10,726$ 3,080,332$ 3,438,197$ 2,760,842$ Receivables (net of allowance

for uncollectibles) - - - - - 14,175,981 14,175,981 12,926,946

Total assets 5,250$ 243,272$ 95,102$ 3,515$ 10,726$ 17,256,313$ 17,614,178$ 15,687,788$

LIABILITIES

Accounts payable -$ 49,369$ -$ -$ -$ -$ 49,369$ 108,324$ Amounts held for others 5,250 193,903 95,102 3,515 10,726 17,256,313 17,564,809 15,579,464

Total liabilities 5,250$ 243,272$ 95,102$ 3,515$ 10,726$ 17,256,313$ 17,614,178$ 15,687,788$

-79-


Agency FundsCombining Statement of Changes in Assets and Liabilities


Balances BalancesJuly 1, 2009 Additions Deletions June 30, 2010

Clerk Recording:Assets:

Cash and investments 150$ 30,389$ 25,289$ 5,250$

Liabilities:Amounts held for others 150$ 39,825$ 34,725$ 5,250$

Southern Justice Court:Assets:

Cash and investments 146,691$ 3,130,476$ 3,033,895$ 243,272$

Liabilities:Accounts payable 108,324$ 651,455$ 710,410$ 49,369$ Amounts held for others 38,367 2,998,661 2,843,125 193,903

Total liabilities 146,691$ 3,650,116$ 3,553,535$ 243,272$

Forfeiture:Assets:

Cash and investments 89,269$ 9,478$ 3,645$ 95,102$

Liabilities:Amounts held for others 89,269$ 7,016$ 1,183$ 95,102$

Sheriff:Assets:

Cash and investments 4,024$ 511,239$ 511,748$ 3,515$

Liabilities:Amounts held for others 4,024$ 28,102$ 28,611$ 3,515$

Special Deposits:Assets:

Cash and investments 10,496$ 391$ 161$ 10,726$

Liabilities:Amounts held for others 10,496$ 391$ 161$ 10,726$

(Continues)-80-


Agency FundsCombining Statement of Changes in Assets and LiabilitiesFor the fiscal year ended June 30, 2010

Balances BalancesJuly 1, 2009 Additions Deletions June 30, 2010

Property Tax Clearing:Assets:

Cash and investments 2,510,212$ 501,599,711$ 501,029,591$ 3,080,332$ Receivables (net of allowance

for uncollectibles) 12,926,946 1,249,035 - 14,175,981

Total assets 15,437,158$ 502,848,746$ 501,029,591$ 17,256,313$

Liabilities:Accounts payable -$ 3,588,359$ 3,588,359$ -$ Amounts held for others 15,437,158 456,166,182 454,347,027 17,256,313

Total liabilities 15,437,158$ 459,754,541$ 457,935,386$ 17,256,313$

Total All Agency Funds:Assets:

Cash and investments 2,760,842$ 505,281,684$ 504,604,329$ 3,438,197$ Receivables (net of allowance

for uncollectibles) 12,926,946 1,249,035 - 14,175,981

Total assets 15,687,788$ 506,530,719$ 504,604,329$ 17,614,178$

Liabilities:Accounts payable 108,324$ 4,239,814$ 4,298,769$ 49,369$ Amounts held for others 15,579,464 459,240,177 457,254,832 17,564,809

Total liabilities 15,687,788$ 463,479,991$ 461,553,601$ 17,614,178$

-81-

CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

JACKSON COUNTY, OREGONCapital Assets Used in the Operation of Governmental Funds

Comparative Schedule by SourceJune 30, 2010 and 2009

2010 2009Governmental funds capital assets:

Land 14,089,112$ 13,856,577$ Buildings 119,360,443 110,723,982 Improvements other than buildings 4,717,808 4,722,583 Equipment 18,232,297 17,092,677 Software 1,384,459 897,493 Infrastructure 179,270,922 152,044,879 Construction in progress 23,695,405 49,645,744

Total governmental funds capital assets 360,750,446$ 348,983,935$

Investments in governmental funds capital assets by source:General fund 119,770,076$ 109,618,894$ Special revenue funds 186,219,955 179,785,842 Capital projects funds 54,760,415 59,579,199

Total governmental funds capital assets 360,750,446$ 348,983,935$

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Capital Assets Used in the Operation of Governmental FundsSchedule by Function and Activity

June 30, 2010

ImprovementsOther Than

Land Buildings Buildings

General Government:Assessment -$ 35,718$ -$ Finance:

Taxation - - - Property Management 284,553 - -

Emergency Management - - - Fiduciary 1,780,672 31,835,968 385,331 Capital Project Fund - 157,168 -

Total general government 2,065,225 32,028,854 385,331

Elections and Records:County Clerk - Elections/Recording:

Elections - - - Recording - - -

Surveyor - - -

Total elections and records - - -

Community Justice and Safety:District Attorney: Prosecution Case Management 100,940 575,895 - Sheriff:

Administration 243,688 10,193,507 116,184 Civil Processing - - - Corrections - 258,499 36,665 Criminal Services - 34,834 - Search and Rescue - 96,993 78,094 SoTNT - - 12,890

Community Justice:Adult Supervision and Program - 144,412 155,157 Transition Center - 104,922 - Community Justice - Juvenile 947,444 17,355,733 199,876 Court Services - - -

Court Security Fund - 227,307 -

Total community justice and safety 1,292,072 28,992,102 598,866

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Function and Activity

ConstructionEquipment Software Infrastructure In Progress Total

56,945$ 427,416$ -$ -$ 520,079$

6,461 - - - 6,461 - - - - 284,553

456,145 49,946 - - 506,091 503,142 391,454 - - 34,896,567

64,661 - - 942,455 1,164,284

1,087,354 868,816 - 942,455 37,378,035

181,870 - - - 181,870 55,590 - - - 55,590

143,635 - - - 143,635

381,095 - - - 381,095

90,380 - - - 767,215

759,535 - - - 11,312,914 34,798 - - - 34,798

937,062 16,870 - - 1,249,096 302,757 - - - 337,591

1,059,910 - - - 1,234,997 75,008 - - - 87,898

101,643 - - - 401,212 182,375 - - - 287,297

7,940 - - - 18,510,993 10,457 - - - 10,457 49,148 - - - 276,455

3,611,013 16,870 - - 34,510,923

(Continues)

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Capital Assets Used in the Operation of Governmental FundsSchedule by Function and ActivityJune 30, 2010

ImprovementsOther Than

Land Buildings Buildings

Transportation:Roads, Parks and Planning:

Administration 654,684$ 4,821,270$ 53,914$ Engineering 3,948,028 - 33,858 Road Maintenance - 551,025 - Vegetation Control - - - Fleet Services 77,500 980,459 19,942 County Bridge Replacement 322,022 - -

County Trails 4,283 - 229,791 Bear Creek Greenway 1,619,224 - 3,058,123

Total transportation 6,625,741 6,352,754 3,395,628

Culture, Education and Recreation:Library:

Administration 2,254,112 45,367,753 37,419 Technical Services - 120,767 - Adult Services - - - Law Library - - -

Total culture, education and recreation 2,254,112 45,488,520 37,419

Health and Human Services:Health and Human Services:

Administration 1,528,277 6,498,213 280,155 Human Services - - - Substance Abuse - - - Public Health - - - Developmental Disabilities - - - Animal Control/Shelter - - - Mental Health - - -

Total health and human services 1,528,277 6,498,213 280,155

Planning, Development and Natural Resources:Developmental Services

Planning - - - Natural Resources - Watermaster - - - White City Urban Renewal 323,685 - 20,409 White City Lighting District - - -

Total natural resources and environment 323,685 - 20,409

Total governmental funds capital assets 14,089,112$ 119,360,443$ 4,717,808$

-84-

Function and Activity

ConstructionEquipment Software Infrastructure In Progress Total

144,191$ -$ -$ -$ 5,674,059$ 387,212 - 146,823,221 6,947,983 158,140,302

9,812,456 - - - 10,363,481 451,653 - - - 451,653 554,506 - - - 1,632,407

- - 25,132,567 3,765,671 29,220,260 - - - - 234,074 - - - - 4,677,347

11,350,018 - 171,955,788 10,713,654 210,393,583

83,261 - - - 47,742,545 - - - - 120,767

1,120,272 - - - 1,120,272 22,026 - - - 22,026

1,225,559 - - - 49,005,610

14,323 - - - 8,320,968 190,626 11,807 - - 202,433

70,402 - - - 70,402 91,271 - - - 91,271

6,760 - - - 6,760 32,878 - - - 32,878 70,184 486,966 - - 557,150

476,444 498,773 - - 9,281,862

28,360 - - - 28,360 72,454 - - - 72,454

- - 7,315,134 12,025,289 19,684,517 - - - 14,007 14,007

100,814 - 7,315,134 12,039,296 19,799,338

18,232,297$ 1,384,459$ 179,270,922$ 23,695,405$ 360,750,446$

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Capital Assets Used in the Operation of Governmental FundsSchedule of Changes by Function and Activity


Governmental GovernmentalFunds Capital Funds Capital

Assets AssetsFunction and Activity July 1, 2009 Additions Deletions June 30, 2010

General Government:Assessment 520,079$ -$ -$ 520,079$ Finance:

Taxation 6,461 - - 6,461 Property Management 284,553 - - 284,553

Emergency Management 359,935 146,156 - 506,091 Fiduciary 26,440,774 8,455,793 - 34,896,567 Capital Project Fund 5,500,811 4,265,422 (8,601,949) 1,164,284

Total general government 33,112,613 12,867,371 (8,601,949) 37,378,035

Elections and Records:County Clerk - Elections/Recording:

Elections 181,870 - - 181,870 Recording 55,590 - - 55,590

Surveyor 143,635 - - 143,635

Total elections and records 381,095 - - 381,095

Community Justice and Safety:District Attorney 767,215 - - 767,215 Sheriff:

Administration 11,238,369 81,715 (7,170) 11,312,914 Civil Processing 34,798 - - 34,798 Corrections 1,267,778 - (18,682) 1,249,096 Criminal Services 331,790 5,801 - 337,591 Search and Rescue 921,153 313,844 - 1,234,997 SoTNT 51,163 36,735 - 87,898

Community Justice:Adult Supervision and Program 401,212 - - 401,212 Transition Center 282,760 4,537 - 287,297 Community Justice - Juvenile 17,937,815 573,178 - 18,510,993 Court Services 10,457 - - 10,457

Court Security Fund 276,455 - - 276,455 Juvenile Capital Project 565,238 - (565,238) -

Total community justice and safety 34,086,203 1,015,810 (591,090) 34,510,923

(Continues)

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Capital Assets Used in the Operation of Governmental FundsSchedule of Changes by Function and ActivityFor the fiscal year ended June 30, 2010

Governmental GovernmentalFunds Capital Funds Capital

Assets AssetsFunction and Activity July 1, 2009 Additions Deletions June 30, 2010

Transportation:Roads, Parks and Planning:

Administration 5,674,059$ -$ -$ 5,674,059$ Engineering 152,219,202 6,014,604 (93,504) 158,140,302 Road Maintenance 9,856,304 847,446 (340,269) 10,363,481 Vegetation Control 465,869 - (14,216) 451,653 Fleet Services 1,632,407 - - 1,632,407 County Bridge Replacement 33,564,046 69,451 (4,413,237) 29,220,260

County Trails 234,074 - - 234,074 Bear Creek Greenway 4,517,347 160,000 - 4,677,347

Total transportation 208,163,308 7,091,501 (4,861,226) 210,393,583

Culture, Education and Recreation:Library:

Administration 47,183,269 661,276 (102,000) 47,742,545 Technical Services 120,767 - - 120,767 Adult Services 1,120,272 - - 1,120,272 Law Library 22,026 - - 22,026

Library Capital Projects 495,363 165,912 (661,275) -

Total culture, education and recreation 48,941,697 827,188 (763,275) 49,005,610

Health and Human Services:Health and Human Services:

Administration 8,320,968 - - 8,320,968 Human Services 202,433 - - 202,433 Substance Abuse 70,402 - - 70,402 Public Health 84,281 6,990 - 91,271 Developmental Disabilities - 6,760 - 6,760 Animal Control/Shelter 32,878 - - 32,878 Mental Health 550,850 6,300 - 557,150

Total health and human services 9,261,812 20,050 - 9,281,862

Planning, Development and Natural Resources:Developmental Services:

Planning 28,360 - - 28,360 Natural Resources - Watermaster 72,454 - - 72,454 White City Urban Renewal 14,936,393 4,748,124 19,684,517 White City Lighting District - 14,007 - 14,007

Total natural resources and environment 15,037,207 4,762,131 - 19,799,338

Total governmental funds capital assets 348,983,935$ 26,584,051$ (14,817,540)$ 360,750,446$

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SUPPLEMENTARY SCHEDULES

The County is required by State law to disclose the financial transactions of elected officials. This subsection includes schedules of cash receipts and turnovers for the Assessor, County Clerk, Sheriff, Surveyor and Justice Court. Other financial schedules in this subsection are property tax transactions, property taxes receivable and property tax collection schedules.


AssessorSchedule of Cash Receipts and Turnovers


Cash on hand, July 1, 2009 170$

Receipts:*State grants 890,456$ Application fees 39,172 Map and photocopy sales 4,243 Plat processing fees 15,397 Miscellaneous 56,223

Total receipts 1,005,491

Turnovers to County Treasurer 1,005,491

Cash on hand, June 30, 2010 170$

*Tax receipts are not reflected, as taxation is a division of the Treasury and Financial Services Department.

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County ClerkSchedule of Cash Receipts and Turnovers


Cash on hand, July 1, 2009:Change fund 650$ Cash on deposit with County Treasurer -

Total cash 650

Receipts:*Recording 1,170,017$ Elections 115,088

Total receipts 1,285,105

Turnovers:County Treasurer (revenues) 1,254,672 Others 25,283

Total turnovers 1,279,955

Cash on hand, June 30, 2010:Change fund 650 Cash on deposit with County Treasurer 5,150

Total cash 5,800$

*Department cash receipts generally include fiduciary collections which are not recognized as revenues of County operating funds.

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SheriffSchedule of Cash Receipts and Turnovers


Cash on hand, July 1, 2009:Change fund 7,070$ Cash on deposit with County Treasurer 93,294

Total cash 100,364

Receipts* 6,205,204

Turnovers:County Treasurer (revenues) 5,684,005$ Others 515,385


Cash on hand, June 30, 2010:Change fund 7,770 Cash on deposit with County Treasurer 98,408

Total cash 106,178$

*Department cash receipts generally include fiduciary collections which are not recognized as revenues of County operating funds.

-89-


SurveyorSchedule of Cash Receipts and Turnovers


Cash on hand, July 1, 2009:Change fund 60$ Cash on deposit with County Treasurer 1,074,262

Total cash 1,074,322

Receipts:Surveyor document sales 23,389$ Cornerstone preservation funds 651 Surveyor fees 13,058 Other 39,899

Total receipts 76,997

Turnovers to County Treasurer 172,387


Total cash 978,932$

-90-


Justice Court DistrictSchedule of Cash Receipts and Turnovers


Cash on hand, July 1, 2009:Change fund 100$ Cash on deposit with County Treasurer 146,691

Total cash 146,791

Receipts:Justice Court fines and fees 1,831,201

Turnovers:County Treasurer (revenues) 1,717,823$ Others 30,307



Total cash 229,862$

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Schedule of Property Tax Transactions and Outstanding BalancesFor the fiscal year ended June 30, 2010

Current Add Add/DeductTaxes Levy as Deduct Interest on Deduct Cash Corrections Taxes

Fiscal Receivable Extended by Discounts Delinquent Collections and ReceivablesYear July 1, 2009 Assessor Taken Taxes on Taxes (1) Adjustments June 30, 2010

2009-10 -$ 233,298,026$ 5,504,252$ 165,869$ 218,862,394$ 621,576$ 9,718,825$ 2008-09 9,885,530 - (18,600) 510,960 6,196,579 145,973 4,364,484 2007-08 3,757,225 - (20,133) 518,003 2,315,272 (10,487) 1,969,602 2006-07 1,404,296 - (1,229) 298,483 1,151,826 (12,052) 540,130 2005-06 414,321 - (921) 106,758 337,405 (128) 184,467 2004-05 127,023 - (697) 32,405 57,267 (1,552) 101,306 2003-04 115,495 - (27) 11,205 26,892 (375) 99,460 2002-03 87,292 - - 13,528 25,999 - 74,821 2001-02 69,179 - - 8,772 15,865 - 62,086 2000-01 52,355 - - 4,051 6,926 (1) 49,479 Prior years 117,060 - - 10,290 22,005 (6) 105,339

Totals 16,029,776$ 233,298,026$ 5,462,645$ 1,680,324$ 229,018,430$ 742,948$ 17,269,999$

(1) Amount includes property tax and payments of interest on delinquent taxes.

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Schedule of Property Taxes Receivable by Levy Year by FundLast Ten Fiscal Years

SpecialRevenueEnhanced Capital

Law Projects Debt ServiceFiscal Enforcement White City UrbanYear Total General District Lighting District Renewal Library Juvenile Agency

2009-10 9,718,825$ 1,322,338$ 59,534$ 13,844$ -$ 132,248$ 101,315$ 8,089,546$ 2008-09 4,364,484 570,746 7,772 1,808 146,837 54,347 39,697 3,543,277 2007-08 1,969,602 259,014 3,767 876 101,223 28,185 2,966 1,573,571 2006-07 540,130 74,490 1,124 261 25,923 8,576 - 429,756 2005-06 184,467 25,554 409 95 8,975 3,272 - 146,162 2004-05 101,306 13,903 235 - 4,937 1,921 1,248 79,062 2003-04 99,460 13,537 241 - 4,969 2,007 1,304 77,402 2002-03 74,821 10,245 191 - 4,006 809 1,052 58,518 2001-02 62,086 8,554 171 - 3,077 674 925 48,685 2000-01 49,479 7,129 148 - 2,478 938 - 38,786 Prior years 105,339 11,496 263 - 2,364 - - 91,216

Totals 17,269,999$ 2,317,006$ 73,855$ 16,884$ 304,789$ 232,977$ 148,507$ 14,175,981$

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Schedule of Property Tax Collections by Levy Year by FundLast Ten Fiscal Years

SpecialRevenueEnhanced Capital

Law Projects Debt ServiceFiscal Enforcement White City UrbanYear Total General District Lighting District Renewal Library Juvenile Agency

2009-10 218,696,525$ 29,755,735$ 1,339,647$ 311,531$ -$ 2,975,884$ 2,279,835$ 182,033,893$ 2008-09 5,685,619 743,512 10,124 744 191,284 70,799 51,713 4,617,443 2007-08 1,797,269 236,351 3,438 800 92,366 25,720 2,707 1,435,887 2006-07 853,343 117,686 1,776 413 40,955 13,550 - 678,963 2005-06 230,647 31,951 511 119 11,222 4,091 - 182,753 2004-05 24,862 3,412 58 - 1,212 471 306 19,403 2003-04 15,687 2,135 38 - 784 316 206 12,208 2002-03 12,471 1,708 32 - 668 135 175 9,753 2001-02 7,093 977 20 - 352 77 106 5,561 2000-01 2,875 414 9 - 144 54 - 2,254 Prior years 11,715 1,577 47 - 265 - - 9,826

Totals 227,338,106$ 30,895,458$ 1,355,700$ 313,607$ 339,252$ 3,091,097$ 2,335,048$ 189,007,944$

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STATISTICAL SECTION (Unaudited)

This part of Jackson County, Oregon’s comprehensive annual financial 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 government’s overall financial health. Contents Page Financial Trends 95 to 100 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity 101 to 104 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 105 to 107 These schedules present information to help the reader assess the affordability of the government’s current level of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information 108 to 109 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information 110 to 113 These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Annual Disclosure Information 114 to 122 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

Schedule 1

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Governmental activities Invested in capital assets, net of related debt 104,956,897$ 122,182,793$ 133,755,267$ 132,357,455$ 173,897,701$ 184,221,926$ 196,360,146$ 216,774,136$ 222,447,664$ Restricted 32,374,335 31,136,344 31,419,912 76,090,327 58,691,149 56,017,063 61,464,939 55,928,939 52,117,929 Unrestricted 21,630,114 25,456,767 36,945,546 50,041,106 48,239,664 63,461,839 74,765,668 83,719,204 87,693,297

Total governmental activities net assets 158,961,346$ 178,775,904$ 202,120,725$ 258,488,888$ 280,828,514$ 303,700,828$ 332,590,753$ 356,422,279$ 362,258,890$

Business-type activities Invested in capital assets, net of related debt 50,731,319$ 52,083,918$ 55,857,600$ 63,941,682$ 66,790,250$ 71,388,456$ 76,640,138$ 88,348,666$ 93,230,923$ Restricted 44,710 - - - - - 1,430,814 1,603,408 1,613,783 Unrestricted 7,927,420 7,625,437 7,810,120 6,825,161 6,102,592 7,735,785 11,117,654 10,476,618 13,037,825

Total business-type activities net assets 58,703,449$ 59,709,355$ 63,667,720$ 70,766,843$ 72,892,842$ 79,124,241$ 89,188,606$ 100,428,692$ 107,882,531$

Primary government Invested in capital assets, net of related debt 155,688,216$ 174,266,711$ 189,612,867$ 196,299,137$ 240,687,951$ 255,610,382$ 273,000,284$ 305,122,802$ 315,678,587$ Restricted 32,419,045 31,136,344 31,419,912 76,090,327 58,691,149 56,017,063 62,895,753 57,532,347 53,731,712 Unrestricted 29,557,534 33,082,204 44,755,666 56,866,267 54,342,256 71,197,624 85,883,322 94,195,822 100,731,122

Total primary government net assets 217,664,795$ 238,485,259$ 265,788,445$ 329,255,731$ 353,721,356$ 382,825,069$ 421,779,359$ 456,850,971$ 470,141,421$

Comparable information is only available for the last nine fiscal years

JACKSON COUNTY, OREGONNet Assets by Component

Last Nine Fiscal Years(accrual basis of accounting)

Fiscal Year

Schedule 2

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

ExpensesGovernmental Activities: (1) General Government (1) 12,167,878$ 11,174,605$ 15,201,178$ 19,514,923$ 16,624,284$ 10,875,114$ 8,721,676$ 12,038,430$ 16,376,723$ Elections & Recording - - - - - 1,910,279 2,086,105 2,039,217 1,973,350 Community Justice & Safety (3) 29,812,111 34,649,054 36,201,129 36,294,560 41,213,225 40,941,642 41,986,653 42,874,787 45,769,390 Culture & Recreation (12) 7,586,563 8,259,392 8,259,725 10,812,797 12,482,626 10,389,195 6,105,707 7,820,286 8,102,856 Health & Human Services 35,910,406 36,297,660 33,977,498 37,127,057 39,950,246 39,130,243 38,764,179 39,677,149 41,791,404 Planning, Development & Natural Resources 6,340,927 5,409,458 5,530,279 5,190,146 5,203,868 7,086,483 6,585,858 5,914,108 5,605,315 Transportation 8,947,477 9,456,549 10,344,709 12,365,791 9,066,042 17,385,089 18,349,088 33,197,494 17,551,405 Interest on long-term debt 2,694,689 2,951,593 3,025,560 2,829,220 2,354,310 2,242,805 2,005,796 1,773,395 1,572,803

Total governmental activities expenses 103,460,051 108,198,311 112,540,078 124,134,494 126,894,601 129,960,850 124,605,062 145,334,866 138,743,246

Business-type activities: Airport 4,191,664 4,995,282 5,105,709 5,873,556 6,674,083 6,642,090 7,642,432 7,761,962 7,647,804 Exposition park 1,566,949 1,583,118 1,813,308 1,832,263 2,304,625 2,395,651 2,449,919 2,297,637 2,336,390 Recreation enterprise 1,780,497 1,927,047 1,941,539 1,728,797 1,795,365 1,746,925 1,777,005 1,761,045 3,921,194

Total business-type activities expenses 7,539,110 8,505,447 8,860,556 9,434,616 10,774,073 10,784,666 11,869,356 11,820,644 13,905,388

Total primary government expenses 110,999,161$ 116,703,758$ 121,400,634$ 133,569,110$ 137,668,674$ 140,745,516$ 136,474,418$ 157,155,510$ 152,648,634$

Program RevenuesGovernmental Activities: (11)

Fiscal Year

JACKSON COUNTY, OREGONChanges in Net AssetsLast Nine Fiscal Years

(accrual basis of accounting)

Governmental Activities: (11) Charges for services: (2) Community Justice & Safety 4,677,668$ 6,111,475$ 6,090,607$ 7,980,530$ 7,620,691$ 4,870,672$ 5,618,781$ 6,211,489$ 6,313,071$ Planning, Development & Natural Resources - - - - - 5,918,779 3,318,817 3,645,758 3,052,339 Other activities 9,237,006 10,442,299 11,415,938 14,815,790 15,006,687 12,136,841 11,435,920 9,789,492 9,239,030

Operating grants and contributions (4) 57,376,712 58,118,037 58,742,275 104,031,861 66,652,699 67,818,114 65,984,784 66,855,532 70,662,037 Capital grants and contributions 4,064,691 1,757,507 3,279,815 1,078,788 2,248,551 283,860 348,440 19,752,982 680,975

Total governmental activities program revenues 75,356,077 76,429,318 79,528,635 127,906,969 91,528,628 91,028,266 86,706,742 106,255,253 89,947,452

Business-type activities: Charges for services: (2) Airport services (5) 3,577,110 3,923,025 4,416,542 4,857,780 5,235,071 6,403,372 7,019,374 6,528,930 7,439,262 Exposition Park (6) 1,287,832 1,362,848 1,337,131 1,321,345 1,651,805 1,854,141 2,060,821 1,867,897 1,632,821 Recreation enterprise 771,548 782,344 762,557 720,345 579,200 618,184 598,694 862,989 771,398

Operating grants and contributions (7) 427,902 1,691,127 1,410,149 2,101,637 2,045,510 3,191,345 2,310,285 2,246,617 3,754,743 Capital grants and contributions (8) 6,104,672 867,166 4,143,420 2,883,286 2,478,511 4,475,992 7,960,188 10,600,168 7,130,366

Total business-type activities program revenues 12,169,064 8,626,510 12,069,799 11,884,393 11,990,097 16,543,034 19,949,362 22,106,601 20,728,590

Total primary government program revenues 87,525,141$ 85,055,828$ 91,598,434$ 139,791,362$ 103,518,725$ 107,571,300$ 106,656,104$ 128,361,854$ 110,676,042$

Net (Expense)/RevenueGovernmental activities (28,103,974)$ (31,768,993)$ (33,011,443)$ 3,772,475$ (35,365,973)$ (38,932,584)$ (37,898,320)$ (39,079,613)$ (48,795,794)$ Business-type activities 4,629,954 121,063 3,209,243 2,449,777 1,216,024 5,758,368 8,080,006 10,285,957 6,823,202

Total primary government net expense (23,474,020)$ (31,647,930)$ (29,802,200)$ 6,222,252$ (34,149,949)$ (33,174,216)$ (29,818,314)$ (28,793,656)$ (41,972,592)$

(Continues)

Schedule 2(Continued)

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10General Revenues and Other Changes in Net AssetsGovernmental activities: Property taxes 31,383,933$ 33,968,819$ 35,998,863$ 37,465,932$ 37,016,639$ 38,388,121$ 42,522,108$ 41,611,903$ 37,791,064$ Gain on sale of assets (9) 115,948 57,253 4,013,105 - 1,644 9,291 - - - Unrestricted grants and contributions 14,482,551 14,598,412 14,773,593 14,965,650 15,309,859 15,556,196 15,523,928 15,147,500 12,819,817 Unrestricted investment earnings 4,343,138 3,505,496 2,239,623 4,677,599 5,995,628 8,595,750 9,086,312 6,622,784 4,330,137 Transfers (10) (532,574) (546,429) (668,920) (4,513,493) (618,171) (609,460) (482,347) (471,048) (308,613)

Total governmental activities 49,792,996 51,583,551 56,356,264 52,595,688 57,705,599 61,939,898 66,650,001 62,911,139 54,632,405

Business-type activities: Gain (loss) on sale of assets 1,618 139,951 (12,537) - - (4,171) - - - Unrestricted investment earnings 186,573 198,463 92,739 135,853 291,804 359,332 1,006,251 483,081 322,024 Transfers (10) 532,574 546,429 668,920 4,513,493 618,171 609,460 482,347 471,048 308,613

Total business-type activities 720,765 884,843 749,122 4,649,346 909,975 964,621 1,488,598 954,129 630,637

Total primary government 50,513,761$ 52,468,394$ 57,105,386$ 57,245,034$ 58,615,574$ 62,904,519$ 68,138,599$ 63,865,268$ 55,263,042$

Change in Net AssetsG t l ti iti 21 689 022$ 19 814 558$ 23 344 821$ 56 368 163$ 22 339 626$ 23 007 314$ 28 751 681$ 23 831 526$ 5 836 611$

JACKSON COUNTY, OREGONChanges in Net AssetsLast Nine Fiscal Years

(accrual basis of accounting)

Fiscal Year

Governmental activities 21,689,022$ 19,814,558$ 23,344,821$ 56,368,163$ 22,339,626$ 23,007,314$ 28,751,681$ 23,831,526$ 5,836,611$ Business-type activities 5,350,719 1,005,906 3,958,365 7,099,123 2,125,999 6,722,989 9,568,604 11,240,086 7,453,839

Total primary government 27,039,741$ 20,820,464$ 27,303,186$ 63,467,286$ 24,465,625$ 29,730,303$ 38,320,285$ 35,071,612$ 13,290,450$

Comparable information is only available for the last nine fiscal years. (1)Changes were made to category groupings beginning with the 2006/07 date, which affects comparability by category. Major changes include moving all Planning department activities from Safety to Business, Private and Special Development; combining Community Justice and Safety into one category; creating a new category called Elections & Records, which includes the surveyor's office; moving Capital Projects frund from Organizational Infrastructure to General Government; moved White City and Urban Renewal into Planning, Development & Natural Resources; other changes, as necessary, to group departmental activities together.(1) The increase in 2004/05 is the result of the purchase and implementation of new comprehensive enterprise software in the county.(2) Charges for services generally increase each year as a result of an annual recalculation and board approval of county fees. Planning charges have decreased since 06/07 due to the recession.(3) The significant increase in this account in 2002-03 is a result of an increase in Community Justice charges which was related to increased workloads, additional contracts for workcrews fighting Oregon forest fires, and an amnesty program that enhanced collections.(4) The significant increase in this account in 2004-05 is a result of a one-time intergovernmetal revenue receipt of $30,947,000 for bridge repair/replacements. (5) The increases in these amounts each year reflect the increases in passenger facility charges, and landing fees due to increased activity.(6) The increase in revenues for the Exposition Park in 2005-06 is a result of the opening of the new Ampitheater and the addition of headliner acts at the county fair.(7) The fluctuations in operating grants and contributions for business-type activities is a result of the differences in the number of Airport Improvement Projects in process. (8) The changes in this account are related to the number of Airport Improvement Projects in process. These projects are funded by the Federal Aviation Administration. In 2001-02, there were two large projects in process. In 2003-04, there were 4 projects in process. In 2006-07 there were two large projects in process. In 2007-08, a major terminal construction project was in process.(9) The large gain on the sale of assets in 2003-04 is the result of the sale of the South Interchange Property.(10) The large transfer in 2004-05 includes the transfer of proceeds from the sale of property of $1,168,260 for debt service on the Juvenile Service Facility bonds, and $1,700,000 to the Exposition Park for construction costs of the new Amphitheater.•(11) The County changed their category groupings in 07/08. This affects the comparability of information. • (12) Expenses in 07/08 for Culture and Recreation decreased as a result of the closure of all county libraries in April 2007. They were re-opened in November 2007 at reduced service levels.

Schedule 3

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

General Fund Reserved 612,036$ 1,111,437$ 2,179,354$ 1,730,772$ 1,026,142$ 1,237,812$ 1,106,432$ 1,223,717$ 1,174,342$ Unreserved (3) 19,455,560 22,283,288 32,617,063 34,680,387 39,900,522 46,765,131 59,403,886 65,732,240 71,780,931

Total general fund 20,067,596$ 23,394,725$ 34,796,417$ 36,411,159$ 40,926,664$ 48,002,943$ 60,510,318$ 66,955,957$ 72,955,273$

All Other Governmental Funds Reserved (1), (4) 9,037,981$ 8,250,180$ 14,857,833$ 39,074,879$ 36,242,845$ 15,976,970$ 20,092,263$ 19,351,273$ 20,933,967$ Unreserved, reported in: Special revenue funds (5) 17,476,720 17,342,025 14,726,219 14,274,751 13,645,360 17,923,853 23,758,320 22,916,416 22,381,050 Capital projects funds (2) 35,674,088 37,992,574 20,272,673 31,427,454 18,328,143 28,165,911 23,900,738 19,045,171 11,746,651 Permanent fund, designated for library 35,332 35,332 35,332 35,416 35,546 35,681 35,774 26,591 - Total all other governmental funds 62,224,121$ 63,620,111$ 49,892,057$ 84,812,500$ 68,251,894$ 62,102,415$ 67,787,095$ 61,339,451$ 55,061,668$

Fiscal Year

JACKSON COUNTY, OREGONFund Balances, Governmental Funds,

Last Nine Fiscal Years(modified accrual basis of accounting)

Comparable information is only available for the last nine fiscal years.(1) The increase in the Other Governmental Funds Reserved fund balances in the 2004-05 fiscal year is a result of unspent receipts from the State of Oregon for bridge replacement. This is also part of he reason for the large decrease in the 2006-07 fiscal year. In 2006-07 fewer funds were reserved for encumbrances because of fewer large projects in progress at 6/30/07.(2)The increase in Unreserved fund balances in the Capital projects funds in 02/03 is due to unspent and unencumbered bond proceeds These were mostly spent in subsequent years

Comparable information is only available for the last nine fiscal years.(1) The increase in the Other Governmental Funds Reserved fund balances in the 2004-05 fiscal year is a result of unspent receipts from the State of Oregon for bridge replacement. This is also part of he reason for the large decrease in the 2006-07 fiscal year. In 2006-07 fewer funds were reserved for encumbrances because of fewer large projects in progress at 6/30/07.(2)The increase in Unreserved fund balances in the Capital projects funds in 02/03 is due to unspent and unencumbered bond proceeds. These were mostly spent in subsequent years. (3) The increase in Unreserved fund balance in the general fund in 2007/08 is due to the unexpected receipt of a one-year extension of expired Public Law 106-393 funds from the Federal Government. The county had already reduced the budget significantly in order to operate without these funds. Rather than restore all services with the one-year extension, some services were restored, but most of the money went into the Rainy Day Fund which will be used to provide reduced services over the next two years. The increases in subsequent years are also from O&C replacement funds which were unspent in order to increase the Rainy Day Fund. (4) The increase in Reserved fund balance in the Other Governmental Funds in 2007/08 is due to Urban Renewal tax revenues restricted for debt service.(5) The increase in Special revenue funds unreserved fund balance in 2007/08 is due to the PL 106-393 funds of approximately $4 million which was mostly put into the Roads Departments Rainy Day Fund.

Schedule 4

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10Revenues

Intergovernmental (1) 71,859,263$ 73,556,742$ 76,795,683$ 119,034,094$ 82,038,533$ 83,658,170$ 81,659,151$ 82,003,032$ 83,481,854$ Charges for services 12,508,255 15,169,777 15,891,936 20,983,466 20,763,713 19,998,113 17,509,298 16,226,073 15,336,120 Licenses and permits 1,031,420 1,110,971 1,246,737 1,024,699 1,046,718 1,033,427 1,191,609 1,286,782 1,232,651 Fines and forfeitures 276,762 323,444 379,483 575,330 827,152 1,172,761 1,498,984 1,870,373 1,850,713 Taxes (8) 31,684,281 33,683,239 36,239,232 37,319,114 37,541,295 38,357,081 41,884,350 41,107,566 37,642,879 Interest 3,681,140 2,419,089 1,363,287 3,159,884 4,721,515 6,301,004 6,261,249 4,920,753 3,417,562 Miscellaneous 441,419 784,348 786,437 1,284,319 789,616 1,582,879 2,093,002 1,105,783 440,903

Total revenues 121,482,540 127,047,610 132,702,795 183,380,906 147,728,542 152,103,435 152,097,643 148,520,362 143,402,682

Expenditures

General government & organizational infrastructure(2) 15,093,641 27,284,858 28,944,891 20,317,692 16,076,950 11,034,951 6,967,227 8,919,747 10,016,924 Elections and records - - - - - 1,929,865 1,896,864 1,945,535 1,820,555 Community justice and safety 31,990,814 32,745,530 34,736,729 35,661,215 40,846,651 41,481,466 40,124,809 40,869,629 43,073,301 Culture and recreation (3) 7,464,030 8,098,437 8,294,859 9,222,775 10,779,396 10,422,520 6,157,808 5,948,025 5,868,009 Planning, development, and natural resources (9) 5,402,660 4,764,047 5,425,780 4,824,023 5,999,776 7,753,043 7,009,600 7,159,968 5,872,853 Health and human services (4) 35,207,058 35,847,255 33,602,858 36,240,554 38,624,579 38,029,367 37,959,222 39,091,334 40,754,243 Transportation (7) 9 362 375 9 173 231 9 296 108 13 629 951 10 008 463 12 991 163 13 603 481 20 288 847 13 652 136

JACKSON COUNTY, OREGONChanges in Fund Balances, Governmental Funds,


Fiscal Year

Transportation (7) 9,362,375 9,173,231 9,296,108 13,629,951 10,008,463 12,991,163 13,603,481 20,288,847 13,652,136 Capital outlay (5) 12,242,304 13,636,044 11,150,499 17,244,689 27,044,983 17,883,654 11,122,156 16,276,665 13,366,116 Debt Service Principal 14,242,000 12,250,000 4,409,000 17,449,000 5,785,346 17,959,000 4,868,000 15,943,078 5,019,112 Interest 2,708,773 2,551,263 3,407,445 2,845,625 2,385,423 2,257,031 2,028,056 1,792,787 1,593,991

Total expenditures 133,713,655 146,350,665 139,268,169 157,435,524 157,551,567 161,742,060 131,737,223 158,235,615 141,037,240 Excess of revenues over (under) expenditures (12,231,115) (19,303,055) (6,565,374) 25,945,382 (9,823,025) (9,638,625) 20,360,420 (9,715,253) 2,365,442

Other Financing Sources (Uses)

Proceeds from borrowing 11,720,000 26,282,266 - 13,000,000 12,730,000 13,250,000 - 11,977,616 - Payment to refunding escrow - - - - (12,550,613) - - - - Transfers in 6,102,756 5,364,040 3,969,291 10,940,454 5,154,778 4,365,725 6,574,664 10,294,545 6,134,106 Transfers out (8,027,238) (7,668,370) (7,266,648) (13,194,788) (7,643,707) (7,240,718) (8,688,400) (12,549,406) (8,760,679) Sale of capital assets (6) - - 7,663,962 - - - - - -

Total other financing sources (uses) 9,795,518 23,977,936 4,366,605 10,745,666 (2,309,542) 10,375,007 (2,113,736) 9,722,755 (2,626,573)

Net change in fund balances (2,435,597)$ 4,674,881$ (2,198,769)$ 36,691,048$ (12,132,567)$ 736,382$ 18,246,684$ 7,502$ (261,131)$

Debt service as a percentage of noncapital expenditures 14.9% 13.3% 7.1% 15.3% 6.4% 13.6% 5.5% 13.5% 5.3%

(Continues)


JACKSON COUNTY, OREGONChanges in Fund Balances, Governmental Funds,


Comparative data is only available for the last nine fiscal years. In addition, changes were made to the expenditure category groupings beginning with the 06/07 data which affects comparability by category.(1) The substantial increase in intergovernmental revenues in the 2004-05 fiscal year was a result of the receipt of one-time intergovernmental revenues of $38,947,000 for bridge replacement/repair. The increase in 2009-10 is due to increased state revenues received by the Health & Human Services department.(2) The decrease in general government expenditures in 2007-08 is a result of service reductions because of the expected expiration of Public Law 106-393 funds.(3) The decrease in culture and recreation expenditures for 2007-08 is due to the closure of all libraries in April 2007. They were re-opened in November 2007, but at a reduced level.(4) The decrease in health and human services expenditures in 2007-08 is related to the developmental disability service costs described in (1) above.(5) The increase in capital outlay in 2004-05 is primarily due to the expenditure of the bridge replacement funds.(6) The sale of capital assets in the 2003-04 fiscal year reflects the sale of the Miles Field property in the South Interchange complex.(7) Transportation expenditures for 08/09 includes a $7,000,000 refund to Oregon Department of Transportation for unused 04 Bridge Replacement funds. (8) Decrease in 09-10 taxes reflects the reduction in tax increment revenues for Urban Renewal Debt Service.

Schedule 5

EstimatedTotal Actual Assessed

Total Taxable Direct Taxable Value as aFiscal Manufactured Assessed Tax Value (Real Percentage ofYear Real Structures* Personal Utilities Value Rate Market Value) Actual Value

2000-01 8,772,768,415$ 332,152,696$ 386,825,580$ 445,861,050$ 9,937,607,741$ 2.2798 14,156,136,383$ 70.20%2001-02 9,341,807,420 347,647,464 407,097,400 464,465,200 10,561,017,484 2.3930 15,328,036,987 68.90%2002-03 9,881,625,168 351,225,180 418,087,000 473,254,500 11,124,191,848 2.2995 15,891,702,640 70.00%2003-04 10,451,730,560 359,476,558 416,572,270 449,676,073 11,677,455,461 2.4130 17,047,380,235 68.50%2004-05 11,203,264,638 223,305,265 421,003,630 475,065,901 12,322,639,434 2.3990 20,018,503,911 61.56%2005-06 11,920,685,431 225,477,380 429,784,700 439,977,164 13,015,924,675 2.2028 23,570,940,812 55.22%2006-07 12,688,178,244 223,532,830 452,600,340 464,470,800 13,828,782,214 2.3990 28,839,149,411 47.95%2007-08 13,533,495,808 199,722,920 484,838,850 469,797,062 14,687,854,640 2.1812 31,687,848,811 46.35%2008-09 14,189,871,988 200,962,572 500,593,700 500,516,590 15,391,944,850 2.2667 31,152,790,422 49.41%2009-10 14,718,486,217 180,528,841 463,066,780 534,131,960 15,896,213,798 2.3674 28,365,971,987 56.04%

JACKSON COUNTY, OREGONAssessed Value and Actual Value of Taxable Property

Last Ten Fiscal Years

Source: County Assessor tax roll under Measure 50

Assessed Value is shown net of tax-exempt property

Note: The Assessed Value is not the Real Market Value but a generally lower Assessed Value for tax purposes. Currently Assessed Value is limited to a 3% maximum annual increase plus new growth before tax rates are applied because of a tax limitation measure ("Ballot Measure 50"). Measure 50, which affected property tax collections was approved by the voters in May, 1997.

* Effective 2004-05, real manufactured structures exempt from being titled as mobile homes, are reported in the Real column.

Schedule 6

Taxing Entity 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Jackson County-Gen 2.0099 2.0099 1.9425 1.9357 1.9372 1.951 1.9499 1.9455 1.9442 2.0099Jackson County-Bonds 0.2699 0.3831 0.3570 0.4773 0.4462 0.2518 0.4491 0.2357 0.3225 0.3575Jackson County-Total 2.2798 2.3930 2.2995 2.4130 2.3834 2.2028 2.3990 2.1812 2.2667 2.3674

Education Service District 0.3524 0.3524 0.3410 0.3418 0.3421 0.3423 0.3421 0.3411 0.3409 0.3524

Vector Control 0.0429 0.0429 0.0416 0.0417 0.0417 0.0417 0.0417 0.0416 0.0415 0.0429Soil & Water 0.0484 0.0484 0.0500

Rogue Valley Transit District 0.1772 0.1772 0.1698 0.1709 0.1711 0.1712 0.1711 0.1707 0.1709 0.1772

Cities: Ashland 5.4831 5.3773 5.3599 5.3399 3.8768 5.2491 5.2568 5.7225 5.7086 6.8764 Butte Falls 7.2494 7.2494 7.2494 7.2494 7.2494 7.2494 7.2494 7.2494 7.2494 7.2494 Central Point 5.8328 4.4699 4.4699 4.4699 4.4699 4.4699 4.4699 4.4700 4.4700 4.4700 Eagle Point 3.3011 3.4675 3.3187 3.1920 2.8949 2.8283 2.8949 2.7509 2.7328 2.7172 Gold Hill 2.6754 2.6026 3.7397 3.6039 2.4983 3.5035 3.5397 2.4174 2.4637 2.4179 Jacksonville 3.3953 3.0799 2.9804 2.9077 2.8119 3.7821 2.7482 2.5720 2.4497 2.4200 Medford 5.3990 5.3972 5.1707 5.1801 5.0809 5.1018 5.0809 5.1904 5.1880 5.1989 Phoenix 6.0318 5.9864 5.9475 5.3663 3.6463 6.4963 6.4963 6.2890 3.4226 3.4254 Rogue River 3.7923 3.7559 3.7588 3.7372 3.6906 4.1658 4.1906 4.0900 4.1477 4.1302 Shady Cove 1.6176 1.5693 1.5231 1.4925 1.0558 0.929 1.0558 0.9488 0.9283 0.9202 Talent 3.2316 3.2316 2.9372 2.9170 2.8521 2.79 2.8521 3.0007 2.9534 2.9594

Fire Districts: Applegate #9 2.6787 2.6787 2.6787 2.6787 2.5287 2.5287 2.5287 2.5287 2.5287 2.5287 Central Point #3 3.1194 2.6900 2.5320 2.6772 2.6940 2.7071 2.694 2.6736 2.6686 3.1194 Evans Valley #6 1.2905 1.2905 1.2905 1.2905 1.2905 1.2905 1.2905 1.6505 1.6505 1.6505 Medford #2 2.4938 2.4938 2.4630 2.1810 2.2967 2.4884 2.2967 2.4920 2.4938 2.4938 Prospect 0.9902 0.9902 0.9902 0.9902 0.9902 0.9902 0.9902 0.9902 0.9902 0.9902 Rogue River #1 2.3115 2.7886 2.7747 2.7700 2.2609 2.7509 2.7609 2.7018 2.7116 2.2159 Shady Cove-Trail #4 2.0181 2.0181 2.0181 2.0181 2.0181 2.0181 2.0181 2.0181 2.0181 2.0181 Talent #5 3.1976 3.1976 3.1976 3.1976 3.1976 3.1976 3.1976 3.1976 3.1976 3.1976 Colstein RFPD 1.9455 1.9455 1.9455 1.9455 1.9455 1.9455 1.9455 1.9455 1.9455 1.9455 Lake Creek RFPD 1.4740 1.4740 1.4740 1.4740 1.4740 1.474 1.474 1.4740 1.4740 1.4740

School Districts: Phoenix #4 5.3764 6.3034 6.3245 6.2346 6.1590 5.9467 6.159 4.7739 4.7794 4.8247 Ashland #5 5.9977 5.8263 5.5266 5.4899 5.4425 5.3125 5.4425 5.9395 6.0470 6.1627 Central Point #6 6.0806 6.1331 4.5369 5.1996 5.0614 5.0194 5.0614 4.9875 4.9968 5.5661 Eagle Point #9 4.7170 7.3775 4.7807 6.4319 6.3762 5.9462 6.3762 5.7646 5.6948 6.3233 Rogue River #35 4.1386 5.0515 5.0549 5.1048 5.0926 5.0723 5.0926 5.0307 4.9901 5.0304 Applegate #40 3.8994 4.4661 4.4584 4.4927 4.4285 4.3634 4.4285 4.3035 4.2875 4.2764 Prospect #59 4.3628 4.3628 4.3628 4.3628 4.3628 4.3628 4.3628 4.3628 4.3628 4.3628 Butte Falls #91 4.5749 4.5749 4.5749 4.5749 4.5749 4.5749 4.5749 4.5749 4.5749 4.5749 Pinehurst #94 4.8235 4.8235 4.8235 4.8235 4.8235 4.8235 4.8235 4.8235 4.8235 4.8235 Medford #549C 5.1769 5.1449 5.0784 4.9855 5.0060 4.8036 4.7836 6.2427 6.5550 6.2338

Rogue Community College 0.5128 0.5128 0.4961 0.4973 0.4978 0.6231 0.4978 0.6159 0.6089 0.6278

White City: Law Enforcement 2.0211 2.0211 0.7188 0.7304 0.7206 0.8634 0.7206 0.6018 0.5740 2.0211 Lighting 0.1400 0.1335 0.4700

Urban Renewal: County 0.2752 0.2642 0.2880 0.2551 0.2509 0.2469 0.2509 0.2726 0.0000 0.0000 Medford 0.4767 0.4726 0.4876 0.4575 0.4835 0.4439 0.4835 0.3938 0.4131 0.6687 Talent 0.8017 0.7218 0.6736 0.7164 0.8767 1.077 0.8767 1.2556 1.2392 3.3692

Source: County Assessor's Annual Certified Levy

*Billing rates differ from permanent rates due to timber severance tax offsets and adjustments resulting from urban renewal districtsOregon's property tax system has limits on the levy rates, including formulas for rate compression when a rate maximum is reached.

JACKSON COUNTY, OREGONDirect and Overlapping Property Tax Rates

Last Ten Fiscal Years(Per $1,000 of Assessed Value)

-102-

Schedule 7

Percentage Percentageof Total of Total

Taxable Taxable Taxable TaxableAssessed Assessed Assessed Assessed

Taxpayer Value Rank Value Value Rank Value

Pacificorp * 205,559,000$ 1 1.40% * 174,253,600$ 1 2.24%Carestream Health Inc 102,426,780 2 0.70%Harry & David Operations, Inc 86,095,773 3 0.59% *Rogue Valley Manor 66,376,920 4 0.45% * 43,677,440 4 0.80%Avista Corp * 63,941,600 5 0.44% 44,903,590 6 0.51%Rogue Valley Mall LLC 51,329,920 6 0.35%Qwest Corporation * 54,570,400 7 0.37% 73,237,370 3Boise Building Solutions Manufact 47,882,781 8 0.33% 48,464,220 7 0.45%Charter Communications 42,299,700 9 0.29%Biomass One LTD Partnership 39,983,500 10 0.27%Eastman Kodak Company 72,432,780 2 0.99%Fund A Rogue Valley, Inc 39,060,790 5 0.44%Bear Creek Operations, Inc. 47,767,300 8 0.44%BOC Group Incorporated 27,689,120 9 0.24%Haagen Alexander Properties 22,075,700 10 0.24%

760,466,374$ 5.18% 593,561,910$ 6.35%

*Notes: Utility values are established by the State of Oregon

Source: County Assessor property tax roll records for the 2009-10 and 2000-01 tax rolls.

2009-10 2000-01

JACKSON COUNTY, OREGONPrincipal Property Tax Payers

Current Year and Nine Years Ago

-103-

Schedule 8

Taxes Levied CollectionsFiscal for the Percentage in Subsequent PercentageYear Fiscal Year Amount of Levy Years Amount of Levy

2000-01 29,239,003$ 27,830,654$ 95.2% 1,397,656$ 29,228,310$ 100.0%2001-02 32,382,355 30,908,714 95.4% 1,460,240 32,368,954 100.0%2002-03 34,490,534 32,870,331 95.3% 1,561,685 34,432,016 99.8%2003-04 36,948,059 34,843,520 94.3% 2,082,481 36,926,001 99.9%2004-05 38,295,115 36,204,074 94.5% 2,068,797 38,272,871 99.9%2005-06 37,901,510 36,713,166 96.9% 1,042,182 37,755,348 99.6%2006-07 39,911,487 38,542,832 96.6% 1,330,350 39,873,182 99.9%2007-08 43,479,558 40,882,776 94.0% 2,200,751 43,083,527 99.1%2008-09 32,952,505 31,092,477 94.4% 1,038,821 32,131,298 97.5%2009-10 27,897,211 26,267,932 94.2% 26,267,932 94.2%

Source: County Tax Collector tax roll records relating to Jackson County

Fiscal Year of the Levy Total Collections to Date

JACKSON COUNTY, OREGONProperty Tax Levies and Collections


Collected within the

-104-

Schedule 9

Less:Percentage Business-Type Amounts

General of Actual Special Urban Activities Restricted to Total Percentage PerFiscal Obligation Property Assessment Renewal Revenue Repaying Primary of Personal CapitaYear Bonds Value (1) Bonds Bonds Bonds Principal Government Income(2) (2)

2001-02 34,255,000$ 0.22% 15,049,000$ 290,000$ (6,343,002)$ 43,250,998$ 0.93% 2382002-03 50,745,000 0.32% 12,584,000 - (3,920,678) 59,408,322 1.19% 3232003-04 48,055,000 0.28% 10,865,000 - (9,796,869) 49,123,131 0.94% 2632004-05 44,910,000 0.22% 9,561,000 - (8,741,517) 45,729,483 0.83% 2412005-06 41,370,000 0.18% 8,255,000 - (13,129,438) 36,495,562 0.63% 1902006-07 37,980,000 0.13% 6,936,000 - (5,561,464) 39,354,536 0.65% 2032007-08 34,445,000 0.11% 5,603,000 19,955,000 (13,190,084) 46,812,916 0.71% 2392008-09 30,770,000 0.10% 1,027,538$ 4,285,000 19,955,000 (8,053,596) 47,983,942 0.70% 2422009-10 26,925,000 0.09% 913,426 3,225,000 19,655,000 (8,226,755) 42,491,671 0.61% 212

Notes: Details regarding the county's outstanding debt can be found in the notes to the financial statements.Comparative Data is only available for the last nine fiscal years.

The county administers an urban renewal agency. The agency has tax increment debt which is not an obligation of the county.

(1) See Schedule 5 for property value data(2) See Schedule 12 for personal income and population data.

JACKSON COUNTY, OREGONRatios of Outstanding Debt by Type

Last Nine Fiscal Years

Governmental Activities

Schedule 10

ORS 287A.100(2) provides a debt limit on general obligation bonds of 2% of the real market value of all taxable propertywithin the County's boundaries. This became effective January 1, 2008 superseding ORS 287.054.

Real Debt Less Bonded LegalFiscal Market Limit Debt Debt at DebtYear Value Rate Limit June 30 Margin (1)

2000-01 14,156,136,383$ 2.00% 283,122,728$ 36,260,000$ 246,862,728$ 12.81%2001-02 15,328,036,987 2.00% 306,560,740 34,255,000 272,305,740 11.17%2002-03 15,891,702,640 2.00% 317,834,053 50,745,000 267,089,053 15.97%2003-04 17,047,380,235 2.00% 340,947,605 48,055,000 292,892,605 14.09%2004-05 20,018,503,911 2.00% 400,370,078 44,910,000 355,460,078 11.22%2005-06 23,570,940,812 2.00% 471,418,816 41,370,000 430,048,816 8.78%2006-07 28,839,149,411 2.00% 576,782,988 37,980,000 538,802,988 6.58%2007-08 31,687,848,811 2.00% 633,756,976 34,445,000 599,311,976 5.44%2008-09 31,152,790,422 2.00% 623,055,808 30,770,000 592,285,808 4.94%2009-10 28,365,971,987 2.00% 567,319,440 26,925,000 540,394,440 4.75%

ORS 287A.105(1) provides a debt limit on revenue bonds of 1% of the real market value of all taxable property withinthe County's boundaries. This became effective January 1, 2008 superseding ORS 287.053.

Real Debt Less Bonded LegalFiscal Market Limit Debt Debt at DebtYear Value Rate Limit June 30 Margin (1)

2007-08 31,687,848,811$ 1.00% 316,878,488$ 19,955,000$ 296,923,488$ 6.30%2008-09 31,152,790,422 1.00% 311,527,904 19,955,000 291,572,904 6.41%2009-10 28,365,971,987 1.00% 283,659,720 19,655,000 264,004,720 6.93%

(1) Total net debt applicable to the limit as a percentage of debt limit

Source: Current and prior years financial statements, Jackson County Assessor's office. See schedule 5 for value of property.

JACKSON COUNTY, OREGONLegal Debt Margin Information


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Schedule 11

Passenger AirportFiscal Facility HangarYear Fund Receipts Rental Principal Interest Coverage

2001-02 341,308$ 20,000$ 22,540$ 8.0232252002-03 365,841 290,000 10,585 1.2170972003-04 - - - - 2004-05 - - - - 2005-06 - - - - 2006-07 - - - - 2007-08 1,409,884$ - - 929,451 1.51692008-09 1,005,098 - - 1,042,375 0.9642382009-10 1,148,270 - 300,000 1,034,623 0.86037

Note: Details regarding the government's outstanding debt can be found in the notes to the financial statements.

Comparative data is only available for the last nine fiscal years

Debt Service

Revenue Bonds

JACKSON COUNTY, OREGONPledged-Revenue Coverage

Last Nine Fiscal Years

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Schedule 12

(1) Per (1) Capita (3) (4)

Fiscal (1) Personal Personal School UnemploymentYear Population Income Income Enrollment Rate

2000-01 179,264 4,389,282,000$ 24,485 29,188 6.1%2001-02 181,798 4,646,279,000 25,557 29,406 7.4%2002-03 183,797 4,994,073,000 27,172 29,515 7.9%2003-04 186,567 5,203,090,000 27,889 29,253 6.4%2004-05 189,469 5,508,909,000 29,076 28,950 6.5%2005-06 191,697 5,770,881,000 30,104 29,057 5.7%2006-07 194,087 6,072,400,000 31,287 29,114 5.7%2007-08 196,165 6,619,201,000 33,743 28,901 6.3%2008-09 198,346 6,824,926,000 34,409 28,367 11.0%2009-10 200,298 6,911,440,000 34,506 27,967 12.3%

Data Sources(1) Bureau of Economic Analysis - reflects most current data available at end of fiscal year. Historical data

was revised in 2009 to incorporate the comprehensive revision of the National Income and ProductAccounts Comprehensive revisions.

(2) ODE website - October 1 enrollments(3) Oregon Labor Market Information System

Demographic and Economic StatisticsLast Ten Fiscal Years


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Schedule 13

Percentageof Total County

Employer Employees Rank EmploymentAsante (4) 2,900 1 3.81%State of Oregon (2) 2,282 2 3.00%Federal Government (2) 1,734 3 2.28%Harry & David Operations Corp. (5) 1,168 4 1.54%Providence Medical Center (7) 1,100 5 1.45%Medford School District (6) 1,131 6 1.49%Jackson County (3) 1,005 7 1.32%Lithia Motors (1) 800 8 1.05%Boise Building Solutions (1) 750 9 0.99%Amy's Kitchen (1) 715 10 0.94%

13,585 17.85%

JACKSON COUNTY, OREGONPrincipal Employers

Current Year

2010

Source:(1) Southern Oregon Regional Economic Development, Inc. figures as from 2006-2008 (estimates only). (2) Information from Oregon Employment Department Covered employees statistics (2008 avg )

Source:(1) Southern Oregon Regional Economic Development, Inc. figures as from 2006-2008 (estimates only). (2) Information from Oregon Employment Department Covered employees statistics (2008 avg,)(3) Number of employees paid Pay Period Ended 06/20/10. (4) Information provided by employer as of August 2010.(5) Per employer's 10-K report as of August 31, 2009. Includes stores and facilities outside Jackson County. Does not include seasonal holiday employees of 8,262. (6) Per employer as of 09/14/2009. (7) From Company website as of 08/12/2010.Total employment figures were provided by Oregon Employment Department Covered employment statistics. Pincipal employers from nine years ago was not available.

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Schedule 14

(1) (2) (3) (4) (5)Function/Program 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10General Government 174.99 182.25 185.82 188.19 193.44 193.82 202.34 200.27 200.64 192.14Library 96.10 95.89 96.73 87.18 87.50 87.96 87.92 9.50 3.60 3.60Sheriff 172.00 175.00 169.00 163.00 195.00 178.00 179.00 170.50 175.00 183.25Community justice 123.80 149.83 139.06 142.83 152.01 151.00 140.00 134.00 139.00 141.00Airport 13.95 14.56 15.96 34.75 35.75 37.75 38.75 38.75 38.75 40.75Health & Human Services 264.66 250.95 256.48 239.74 234.87 236.39 230.92 205.63 197.95 203.90Roads and Parks 194.50 196.00 195.51 195.51 140.27 139.30 140.00 124.45 122.75 117.75Development Services 50.23 56.20 55.65 56.80 44.00 30.50

1040.00 1064.48 1058.56 1051.20 1089.07 1080.42 1074.58 939.90 921.69 912.89

Source: Government Budget Office

(1) The increase in Airport full-time equivalents reflects the addition of security personnel(2) Development Services was previously combined with Roads and parks(3) The loss of jobs in 07/08 is mostly due to the loss of Federal O&C Funds. The county contracted with a service to operate the libraries at a reduced service level. The Jail Health and Methadone Programs (part of the Health budget) were also contracted out. (4) The reduction in Development Services reflects layoffs necessary due to the reduction in construction activity.(5) The 2.0 FTE increase in Airport is due to the addition of two maintenance workers which will allow coverage 24 hours per day/7 days per week in order to meet FAA mandates for inspections and wildlife management control. The 13.5 FTE decrease in Development Services is due to continued workload reductions as a result of the reduction in construction activity. Vacant Code Enforcement officer position was not filled; Inspectors were cross-trained in order to reduce staffing.

JACKSON COUNTY, OREGONFull-time Equivalent County Government Employees by Function/Program


Schedule 15

Function/Program 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10General Government Registered Voters 108,637 107,206 108,352 110,410 119,495 113,997 111,390 116,097 117,609 114,339 Legal documents recorded 52,766 63,180 70,162 87,519 75,655 79,001 65,207 57,675 45,962 48,392 Residential Building Permits Issued (2) 659 (2) 734 778 672 602 468 300 239 Commercial Building Permits Issued (2) 53 (2) 49 63 60 57 40 21 23

Library (3) Volumes in collection 503,858 525,478 551,725 581,265 614,806 695,620 611,292 603,223 611,488 645,317 Items checked out, checked in, & reshelved 1,278,505 1,216,440 1,293,713 1,271,177 1,383,438 1,444,813 1,100,926 832,139 1,411,767 1,528,568 Reference questions answered 217,724 176,228 214,838 221,091 220,039 220,233 175,058 107,622 142,649 150,670 Children's programs 1,334 1,633 1,302 1,214 1,557 1,619 1,183 807 1,488 2,242 Persons attending children's programs 36,045 39,222 28,340 30,450 36,261 36,024 23,092 20,244 37,279 46,923 Adult programs 617 539 630 359 496 486 327 196 412 354 Persons attending adult programs 13,260 12,687 15,546 10,966 10,860 12,831 9,540 3,916 10,045 9,119 Items delivered to homebound (2) 35,361 33,882 28,868 28,102 29,268 21,639 4,429 7,644 494 Sessions booked on computer workstations (2) (2) (2) 108,000 241,014 (2) 137957 99,198 180,936 179,061 Public meetings held in library community meeting rooms (2) 540 750 1,845 3,048 4,127 2847 2,125 3,649 4,326

Sheriff Traffic Citations Issued (2) (2) 3,057 4,669 4,907 7,288 6,465 9,542 9,200 10,689 Incidents responded to (2) (2) 24,224 30,016 29,695 29,083 27,565 29,093 23,791 22,393

Community justice Work Center Intakes 752 733 773 862 975 1,089 2,133 2,163 2,293 2,438 Work Crews 1994 2120 1990 2180 2389 2,212 2,222 2,190 2,260 2108 Juvenile Detention Admissions (2) 887 887 923 1,033 1,347 1,203 1,194 904 849 Juvenile Detention Avg Daily Populations (2) 22 22 21 21 33 32 29 94 31 Juvenile Shelter & Youth Care Center Admissions (1) (1) 198 284 372 319 403 226 108 125 Juvenile Shelter & YCC Avg Daily Populations (1) (1) 11 13 12 12 28 11 44 16

Airport Daily Arrivals & Departures (July) 54 52 42 54 56 64 69 62 48 44 Total passengers 496,272 410,455 476,444 506,435 563,179 594,265 624,173 646,410 574,109 618,484 Total operations (take-offs and landings) 65,869 62,172 61,311 61,987 58,727 62,251 59,604 54,372 47,823 46,513

Health & Human Services Animal shelter-dogs and cats handled 6,393 6,365 6,200 6,444 6,410 7,180 6,807 6,542 5,727 5,800 Licensed dogs 22,024 21,500 21,330 21,579 22,000 22,500 22,300 20,120 21,000 20,355 Mental Health clients served 3,439 3,501 3,356 3,089 3,289 3,480 3,553 3,824 4,526 3,534 Family planning patients served (2) (2) 3,426 5,563 5,247 4,733 640 831 5,005 8195 Veterans' Office interviews conducted 3081 4112 3,754 3,474 3,347 3,973 3,832 4,179 5,145 5010

(Continues)

JACKSON COUNTY, OREGONOperating Indicators by Function



Function/Program 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Roads, Parks & Planning: Pavement Condition Index rating (goal is 80) 70 80 80 80 78 77 77 75 75 75 RV Reservations (2) (2) 370 307 447 1080 1098 414 405 511 Day use passes sold (2) (2) 32,624 26,689 30,883 30597 31881 26,553 28,658 27183 Seasonal passes sold (2) (2) 1,788 1,777 1,661 1661 1742 1,526 1,766 1811

Farigrounds & Expo Park: Attendance at Fair (2) 160,000 152,000 210,000 149,770 152,000 147,789 152,360 149,000 146,300 Attendance at Interim events (2) 200,000 210,000 210,000 161,545 213,000 164,421 209,355 165,310 167,247 Facility Use Days (2) 682 701 750 925 1,113 1,144 1,219 1,321 1,075

Source: Records kept by county departments unless otherwise noted(1) Program did not exist(2) Program existed, but statistics not available(3) All Jackson County Libraries were closed April 6, 2007 due to the expiration of PL 106-393, which had provided Jackson County $23 million in Federal revenue. They were reopened in November 2007 and are being operated by a subcontractor.

Operating Indicators by FunctionLast Ten Fiscal Years


Schedule 16

Function/Program 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Library Open Libraries (2) 15 15 15 15 15 15 15 0 15 15 15

Sheriff Jail Beds Available 275 275 275 190 190 190 230 230 230 230 230

Community justice Youth Shelter Beds 0 0 15 15 15 15 15 15 16 15 15 Juvenile Detention Beds 20 20 20 20 40 40 40 40 40 40 40 Work Center Beds 0 62 62 62 72 156 156 156 156 156 158

Airport Runway Length (feet) 6700 8800 8800 8800 8800 8800 8800 8800 8800 8800 8800

Health & Human Services Public Health Center sq ft 7919 8536 9549 10985 20516 19070 19070 19070 19070 19070 19070 Mental Health Center sq ft 15227 16673 16673 13077 17212 17569 17569 17569 17569 17569 17569

Roads, Parks & Planning Campsites in county campgrounds (1) (1) (1) 604 605 605 605 605 605 605 610 Motorpool fleet vehicles 183 187 192 194 196 210 227 243 293 273 292

Miles of roads: Surfaced 750 751 753 750 750 747 748 749 766 767 766 Gravel 167 167 167 166 165 165 163 164 164 164 164 Unimproved 40 37 37 37 39 40 75 75 75 75 75 Total roads 957 955 957 953 954 952 986 988 1005 1006 1005

Concrete, steel and timber bridges 350 325 352 329 329 324 324 351 345 345 343

(1) Statistics for this year not available(2) All Jackson County Libraries were closed April 6, 2007 due to the expiration of PL 106-393, which had provided Jackson County $23 million in Federal revenue. They were reopened in November 2007 and are being operated by a subcontractor. Note: No capital asset indicators are available for the general government function.

JACKSON COUNTY, OREGONCapital Asset Statistics by Function


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ANNUAL DISCLOSURE INFORMATION In conformance with SEC Rule 15c2-12, as amended (17 CFR Part 240, § 240.15c2-12) (the “Rule”), and the county’s continuing disclosure certificates for its bond issues, the following information is provided. Jackson County is required to file material events notices to nationally recognized municipal securities information repositories. During the year, material event notices were filed for the downgrades two debt insurers that the county has used. These are the downgrade of Financial Guaranty Ins. Co. (FGIC) which the county has for its Series 2000 and Series 2002 library bonds. The other is XL Capital Assurance Inc. which the county uses for its Series 2007 Airport Revenue Bonds. The county also uses Financial Security Assurance Inc. (FSA) for which no material events notice was required during the year. Management believes there are no additional material events requiring filing as of the date of this report. FINANCIAL INFORMATION Basis of Accounting and Awards Modified accrual accounting is utilized for all governmental fund types and agency funds. All other funds utilize the accrual basis of accounting. The County's accounting practices conform to generally accepted accounting principals (GAAP), and with the standards of financial reporting developed by the Government Finance Officers Association of the United States and Canada and the Government Accounting Standards Board. The Government Finance Officers Association (GFOA) of the United States and Canada has awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson County for the fiscal years ending 1983 through 2009. In addition, the GFOA has awarded Jackson County its Distinguished Budget Presentation Award for fiscal years ending 1984 through 2009. Fiscal Year July 1 through June 30. Audits In accordance with the Oregon Municipal Audit Law (ORS 297.405 - 297.555 and 297.990) an audit is conducted at the end of each Fiscal Year by independent certified public accountants. This requirement has been complied with and the financial statements have received an "unqualified opinion" from the auditors. Such an opinion indicates there was no limitation on the scope of the auditor's examination and the financial statements were prepared in accordance with generally accepted accounting principles. The County's audit for Fiscal Year 2009-10 was performed by Kenneth Kuhns & Co., CPAs, 570 Liberty St. SE, Salem, Oregon 97301-3594. General Fund Financial Information DISCLOSURE TABLE 1 -- Five-Year General Fund Statement of Revenues and Expenditures

2005-06 2006-07 2007-08 2008-09 2009-10

Revenues Intergovernmental revenue $29,085,078 $31,584,517 $30,024,153 $30,451,272 $27,387,752Charges for services 13,376,689 11,656,454 10,573,020 9,332,153 8,917,256Licenses and permits 44,250 43,601 43,020 42,750 40,470Fines and Forfeitures 763,532 1,090,347 1,437,070 1,807,847 1,784,477Taxes 25,014,733 25,873,940 27,418,941 28,535,701 30,365,444Interest income 1,663,436 2,974,286 3,172,422 2,426,651 1,896,609Miscellaneous 263,939 313,373 1,929,456 844,073 404,615 Total revenues 70,211,657 73,536,518 74,598,082 73,440,447 70,796,623

(Continues)

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2005-06 2006-07 2007-08 2008-09 2009-10Expenditures Current General government $5,913,943 $5,915,144 $4,510,096 $4,776,138 $5,075,345 Elections & recording 1,262,339 1,422,641 1,380,948 1,402,968 1,257,784 Community justice & safety 41,210,370 40,122,157 40,528,749 40,717,366 42,355,622 Culture & recreation 9,188,699 8,122,887 3,754,211 5,413,633 5,436,403 Planning, development & natural resources

3,213,774 6,061,943 5,440,049 4,948,722 4,000,147

Total expenditures 60,789,125 61,644,772 55,614,053 57,258,827 58,125,301

Excess of revenues over (under) expenditures 9,422,532 11,891,746 18,984,029 16,181,620 12,671,322

Other financing sources (uses) Transfers in 178,396 208,010 224,534 700,865 359,145Transfers (out) (5,085,423) (5,023,477) (6,701,188) (10,436,846) (7,031,151) Total other financing Sources (uses) (4,907,027) (4,815,467) (6,476,654) (9,735,981) (6,672,006)

Excess of revenues and Other sources over (under) expenditures and other uses 4,515,505 7,076,279 12,507,375 6,445,639 5,999,316

Fund Balance Beginning July 1 36,411,159 40,926,664 48,002,943 60,510,318 60,955,957 Residual Equity Transfer Fund Balance Ending June 30 $40,926,664 $48,002,943 $60,510,318 $66,955,957 $75,955,273 Source: 2005-06 through 2009-10 derived from audited annual financial statements. 2005-06 through 2006-07 expenditure classifications have been adjusted to fit the new functional categories effective in 2007-08. DISCLOSURE TABLE 2 -- Five-Year General Fund Consecutive Balance Sheets

2005-06 2006-07 2007-08 2008-09 2009-10

Assets and Other Debits Cash and Investments $54,299,893 $61,465,629 $60,845,826 $66,020,993 $69,522,884Receivables: Property Taxes 1,184,581 1,436,159 1,700,980 2,112,749 2,317,006 Investment Income 2,142,962 1,659,206 1,988,688 Accounts 2,183,257 2,404,816 1,440,070 2,503,264 2,289,137Deposits and prepaid items 43,531 213,499 76,711 266,277 216,902Due from other funds 1,930,463 1,179,310 1,296,533 1,726,533 3,071,549Total assets and other debits $59,641,725 $66,699,413 $67,485,082 $74,289,022 $79,406,166

(Continues)

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2005-06 2006-07 2007-08 2008-09 2009-10Liabilities, Equity and Other Credits Liabilities: Accounts payable1 $1,290,404 $1,004,518 $868,113 $411,217 $550,111 Accrued payroll, withholdings and

benefits 15,069,770 14,880,065 3,953,625 4,457,593 2,926,810

Due to other funds 1,177,763 1,700,708 403,257 637,622 733,496 Compensated absences Deferred revenue 999,059 870,412 1,534,202 1,640,548 2,053,584 Retainages and other liabilities 178,065 240,767 215,567 186,085 186,892Total liabilities 18,715,061 18,696,470 6,974,764 7,333,065 6,450,893

Fund Equity and other credits: Reserved 1,026,142 1,237,812 1,106,432 1,223,717 1,174,342 Unreserved: Designated Undesignated 39,900,522 46,765,131 59,403,886 65,732,240 71,780,931Total equity and other credits 40,926,664 48,002,943 60,510,318 66,955,957 72,955,273Total liabilities, equity & other credits $59,641,725 $66,699,413 $67,485,082 $74,289,022 $79,406,166

1. Accounts payable consists of outstanding checks and accounts payable as of June 30. Source: 2005-06 through 2009-10 derived from audited annual financial statements. Accrued Vacation County employees may accrue vacation time and receive reimbursement upon termination of employment. As of June 30, 2010, the total accrued vacation liability and related payroll expenses in the General Fund and Other Funds was $4,305,819; $2,268,655, or 52.7% of the accrued vacation liability is funded. Deposits and Investments ORS 294 authorizes the County to invest in Bonds of the U.S. Treasury, U.S. Government agencies and instrumentalities, bankers' acceptances guaranteed by an Oregon financial institution, commercial paper, repurchase agreements, State of Oregon Local Government Investment Pool and various interest-bearing bonds of Oregon municipalities. The County’s investment policy prohibits the County from leveraging or borrowing funds to make investments. The County's Investment Policy specifies the County's investment objectives, required diversification, certain limitations and reporting requirements. The County held the following cash deposits and investments at June 30, 2010. DISCLOSURE TABLE 3 -- Cash Deposits and Investments

Market Value CostU.S. Government agency securities $62,768,413 $62,389,832Corporate paper 19,802,308 19,668,584Local Government Investment Pool 2,297,344 2,297,344Repurchase agreements 1,613,783 1,613,783Deposits with Financial Institutions 76,555,817 76,555,817Total cash and investments $163,037,665 $162,525,360

Source: Jackson County Finance Department Total Market Value Cash Deposits and Investments corresponds to Cash and Investments as reported in the statement of net assets using the government-wide financial reporting model. (Continues)

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DEBT INFORMATION

DISCLOSURE TABLE 4 -- Debt Ratios1 Values Per Capita Percent of RMV

2010 estimated population 200,298 -- --2009-10 Real Market Value (RMV) $28,365,971,987 $141,619 --Gross Direct Debt2 26,925,000 134 0.095%Net Direct Debt3 26,925,000 134 0.095%Net Overlapping Debt 385,531,155 1,924,79 1.359%Net Direct Debt and Net Overlapping Debt 412,456,155 2059,21 1.454%

1. Outstanding and overlapping debt information are calculated as of June 30, 2010. The overlapping debt calculation was

performed by the Municipal Debt Advisory Commission of the State of Oregon Treasurer’s Office. The County also administers an urban renewal agency; the agency has outstanding tax increment debt which is not an obligation of the County. The county also administers a LID (Bancroft) bond.

2. Gross Direct Debt includes all voter approved General Obligation bonds, Limited Tax bonds and any other bonds, Certificates of Participation or leases backed by the full faith and credit of the County. Debt whose term is less than one year is not included.

3. Net Direct Debt is Gross Direct Debt less bonds or leases paid from non-tax sources. Source: Jackson County, Oregon State Treasury Debt Limitations Limitations Applicable to General Obligation Bonds General Obligation Bonds (voter approved) ORS 287A.100(2) limits indebtedness for general obligation bonds by counties to two percent of the latest Real Market Value of the County, subject to voter authorization. 2009-10 RMV $28,365,971,987

Debt limitation (2.00 % of RMV) 567,319,440 Applicable bonded debt 26,925,000 Debt margin 540,394,440 % of limit issued 4.75%

Limitations Applicable to Revenue Bonds ORS 287A.105(1) limits revenue bond indebtedness by counties to one percent of the latest Real Market Value of the County.

2009-10 RMV $28,365,971,987 Debt limitation (1.00 % of RMV) 283,659,720 Applicable bonded debt 19,655,000

Debt margin 264,004,720 Percent of limit issued 6.93%

Debt Management The County has never defaulted on any debt or lease obligation. Debt Authorization and Future Financing Plans The County has no current plans to issue additional general obligation debt. (Continues)

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DISCLOSURE TABLE 5 -- Outstanding Bonds 1

Dated Date

Maturity

Date

Amount Issued

Amount Outstanding: As of 06/30/09

General Obligation Bonds (voted) Series 2001 Juvenile Services Center Bonds 6/1/01 6/1/11 $16,500,000 $1,985,000Series 2002 Library Bonds 12/1/02 6/1/20 18,575,000 12,440,000Series 2006 Library Refunding Bonds 4/5/06 6/1/20 12,730,000 12,500,000Total Voted GO Bonds $47,805,000 $26,925,000

Certificates of Participation (subject to annual appropriation)

Total COPs 0 Full Faith & Credit Obligations or Limited Tax Bonds Paid from Tax Sources (NOTsubject to annual appropriation)

Total FF&C 0 Leases and Contracts Total Contracts 0 Total Net Direct Debt2 $47,805,000 $26,925,000 Limited Tax Bonds Paid from Non-Tax Sources Total Limited Tax Bonds 0 Total Gross Direct Debt3 $47,805,000 $26,925,000 Short Term Debt 0 1. The County also administers an urban renewal agency; the agency has outstanding tax increment debt which is not an

obligation of the County. The County also administers a LID (Bancroft) bond. 2. Net Direct Debt is all Gross Direct Debt directly paid from tax sources. 3. Gross Direct Debt includes all voter approved General Obligation bonds, Limited Tax bonds and any other obligations,

Certificates of Participation or leases backed by the full faith and credit of the County. Debt whose term is less than one year is not included.

Source: Jackson County Finance Department The following table presents the outstanding debt service and the debt service on the Bonds. DISCLOSURE TABLE 6 – Property Tax Supported Debt Service Payment Obligations

(Continues)

Fiscal Assessed Tax

Year Principal Interest Principal Interest Principal Interest Principal Interest Total Value2 Rate2

2009-10 $ 940,000 $ 47,000 $ 1,900,000 $ 194,250 $ 1,005,000 $ 587,985 $ 487,765 $ 5,162,000 $ 15,896,213,798 0.32992010-11 1,985,000 99,250 1,040,000 547,785 $ 1,020,000 487,765 5,179,800 16,117,492,670 0.32142011-12 1,075,000 506,185 1,065,000 446,965 3,093,150 16,601,017,450 0.18632012-13 1,115,000 463,185 1,110,000 404,365 3,092,550 17,099,047,974 0.18092013-14 1,160,000 418,585 1,165,000 359,965 3,103,5502014-15 1,205,000 369,285 1,215,000 313,365 3,102,6502015-16 1,255,000 317,470 1,270,000 264,765 3,107,2352016-17 1,310,000 262,250 1,320,000 217,775 3,110,0252017-18 1,365,000 203,300 1,380,000 168,275 3,116,5752018-19 1,425,000 138,462 1,445,000 116,525 3,124,9872019-20 1,490,000 70,775 1,510,000 60,400 3,131,175

$ 940,000 $ 47,000 $ 3,885,000 $ 293,500 $13,445,000 $3,885,267 $12,500,000 $3,327,930 $38,323,697

Series 2000 Series 2001 Series 2002 Series 2006

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1. 2009-10 principal and interest payments were made prior to June 30, 2010. 2. For Fiscal Year 2009-10, the tax rate per $1,000 was based on data provided by the Jackson County Assessor’s Office.

The projected tax rates for fiscal years 2010-11 through 2012-13 are estimates and have not been reviewed by the Assessor’s Office. The AV is the assessed valuation used to calculate the tax rate, not reflecting the growth in the urban renewal areas. The Total Assessed Value of all taxable property within Jackson County including urban renewal is $15,896,213,798.

Source: Jackson County Tax Information Property tax administration is governed by the Oregon Constitution, the State’s taxation laws, and regulations of the State Department of Revenue, and includes the process of assessment, equalization, levy and collection of taxes. A tax limitation measure (“Ballot Measure 50”) that affected property tax collections was approved by the voters in May, 1997. The implementing legislation changed the property tax administration system substantially, including changes to levy rates, assessments and equalization. DISCLOSURE TABLE 7 -- Tax Collection Record1

Percent PercentFiscal Assessed Percent Total Percent Tax Rate/ Collected CollectedYear Valuation2 Change Levy Change $10003 Yr. of Levy As of 6/30/10

2000-01 $ 9,497,826,006 5.7% $19,089,538 4.7% 2.0099 95.2 100.0 2001-02 10,086,117,049 6.2% 24,533,333 28.5% 2.4324 95.4 100.0 2002-03 10,583,879,843 4.9% 25,608,614 4.4% 2.4196 95.3 99.9 2003-04 11,124,191,848 5.1% 28,220,109 10.1% 2.5323 94.3 99.9 2004-05 11,757,109,962 5.7% 29,391,858 4.1% 2.4999 94.5 99.9 2005-06 13,026,545,466 10.8% 28,522,256 -2.9% 2.1895 96.9 99.6 2006-07 13,839,721,598 6.2% 30,029,328 5.2% 2.1698 96.6 99.9 2007-08 14,687,854,640 6.1% 31,856,689 6.1% 2.1689 94.0 99.1 2008-09 15,392,593,276 6.2% 34,600,952 8.6% 2.3433 96.2 97.5 2009-10 15,896,213,798 3.3% 37,349,034 7.9% 2.3674 94.2 94.2

1. Table 7 includes general operating and debt service taxes. Special district and urban renewal taxes are not included. 2. The Assessed Value is not the Real Market Value but a generally lower Assessed Value for tax purposes. The Real

Market Value for 2009-10 is $28,365,971,987. Currently the Assessed Value is limited to a 3% maximum annual increase plus new growth before tax rates are applied because of Measure 50. See “Property Tax Limitation” herein. The AV is the assessed valuation used to calculate the tax rate, not reflecting the growth in the urban renewal areas. The Total Assessed Value of all taxable property within Jackson County including urban renewal is $15,896,213,798.

3. The Jackson County permanent rate per $1,000 assessed value is $2.0099. Differences since 1997-98 reflect offsets which the Assessor’s office factors into its calculations as well as debt service levies for general obligation bonds, which are outside of the permanent rate.

Source: Jackson County Assessor’s Office and prior year financial statements DISCLOSURE TABLE 8 -- Principal Taxpayers in Jackson County 2009-10

2009-10 2009-10 Percentage of Taxes Assessed Total Assessed

Taxpayer Account Type of Business Imposed Valuation Valuation1

Pacificorp Utility $2,327,753 $205,599,000 1.29% Carestream Health Inc. Imaging Media 1,491,622 102,426,780 0.64 Harry & David Operations Inc Retail/Agricultural/Mail Order 974,907 86,095,773 0.54 Rogue Valley Manor Retirement Homes 939,629 66,376,920 0.42 Avista Corp. DBA Avista Utilities Utility 909,274 63,941,600 0.40 Rogue Valley Mall LLC Shopping Mall 814,139 51,329,920 0.32 Qwest Corporation Utility 800,077 54,570,400 0.34 (Continues)

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Boise Building Solutions Manuf. Wood Products 670,129 47,882,781 0.30 Charter Communications Cable/Communications 649,275 42,299,700 0.27 Biomass One Ltd Partnership Recycling/Energy Prod. 621,803 39,983,500 0.25 Kogap Enterprises Inc Property Management 504,144 33,297,829 0.21 PK Sale LLC Shopping Mall 500,787 31,573,680 0.20 Certainteed Corporation Manufacturing 457,610 31,525,200 0.20 Lithia Real Estate Inc Property Management 456,710 28,794,710 0.18 Asante Health Care 374,900 23,911,980 0.15 Wal-Mart Real Estate Business Tru Property Management 357,593 22,672,150 0.14 Table Rock Group LLC Food Processor 356,553 24,392,840 0.15 Sierrapine Manufacturing 327,619 26,287,670 0.17 Meriwether Southern Oregon Wood Products 321,395 18,878,049 0.12 US Cellular Northwest Operations Utility 313,906 21,652,000 0.14 Totals $14,169,826 $1,023,452,482 6.44% 1. The 2009-10 Assessed Valuation (AV), excluding the growth increment in urban renewal, is $15,896,213,798 for Jackson

County; the Real Market Valuation is $28,365,971,987. The AV is the assessed valuation used to calculate the tax rate. Source: Jackson County Assessor’s Office (Continues)

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DISCLOSURE TABLE 9 – Airport Obligations and Debt Service Coverage

Outstanding Obligations Dated Date Maturity

Date Amount Issued Amount

Outstanding: As of 06/30/09

Airport Revenue Bonds

Series 2007A 7/10/07 12/1/37 $13,480,000 $13,480,000

Series 2007B 7/10/07 12/1/23 $06,475,000 06,175,000

Total Airport Revenue Bonds $19,955,000 $19,655,000

Debt Service

Fiscal Principal PrincipalYear Maturities Interest Total Maturities Interest Total

2011 -$ 707,700$ 707,700$ 320,000$ 310,900$ 630,900$ 2012 - 707,700 707,700 340,000 293,844 633,844 2013 - 707,700 707,700 355,000 275,881 630,881 2014 - 707,700 707,700 375,000 257,016 632,016 2015 - 707,700 707,700 395,000 237,116 632,116 2016 - 707,700 707,700 415,000 216,181 631,181 2017 - 707,700 707,700 435,000 194,216 629,216 2018 - 707,700 707,700 460,000 171,088 631,088 2019 - 707,700 707,700 485,000 146,666 631,666 2020 - 707,700 707,700 510,000 120,950 630,950 2021 - 707,700 707,700 540,000 93,813 633,813 2022 - 707,700 707,700 560,000 65,384 625,384 2023 - 707,700 707,700 595,000 35,534 630,534 2024 235,000 701,531 936,531 390,000 10,078 400,078 2025 660,000 678,038 1,338,038 - - - 2026 695,000 642,469 1,337,469 - - - 2027 730,000 605,063 1,335,063 - - - 2028 770,000 565,688 1,335,688 - - - 2029 810,000 524,213 1,334,213 - - - 2030 855,000 480,506 1,335,506 - - - 2031 900,000 434,438 1,334,438 - - - 2032 950,000 385,875 1,335,875 - - - 2033 1,000,000 334,688 1,334,688 - - - 2034 1,055,000 280,744 1,335,744 - - - 2035 1,110,000 223,913 1,333,913 - - - 2036 1,175,000 163,931 1,338,931 - - - 2037 1,235,000 100,669 1,335,669 - - - 2038 1,300,000 34,125 1,334,125 - - -

13,480,000$ 15,355,991$ 28,835,991$ 6,175,000$ 2,428,667$ 8,603,667$

Series 2007A Series 2007B

(Continues)

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Debt Service Coverage Funds Available for Debt Service: Airport operating revenues: Charges for services $ 7,382,756 Other operating revenues 15,127 Total airport operating revenues 7,397,883 Airport operating expenses, excluding depreciation 4,676,349 Net airport operating revenues 2,721,534 Airport nonoperating revenues: Passenger facility charges 1,148,270 Interest revenue, excluding $16,749 earned on debt service reserve and construction fund 279,919 Airport funds available for debt service 4,149,723 Debit Service Coverage Calculation, Current Net DS Debt service, Series 2007 A&B Bonds $ 1,344,623 Demonstrated debt service coverage ratio 3.09 Required debt service coverage ratio 1.25

Debt Service Coverage Calculation, Net MADS Maximum annual debt service, Series 2007 A&B Bonds $ 1,225,600 Demonstrated debt service coverage ratio 3.39 Required debt service coverage ratio 1.25

DISCLOSURES IN ACCORDANCE WITH GOVERNMENT AUDITING

STANDARDS AND OMB CIRCULAR A-133


Schedule of Expenditures of Federal AwardsFor the year ended June 30, 2010

State Accrued or Accrued orFederal Pass- Program (Deferred) (Deferred)

Federal Grantor/Pass-Through CFDA Through or Award Revenues Disbursements/ RevenuesGrantor/Program Title Number Number Amount July 1, 2009 Receipts Expenditures June 30, 2010

U.S. Department of TransportationDirect programs:

Airport Improvement Program: 20.106 N/AAIP 3-41-0037-35 1,137,989$ -$ 983,258$ 1,037,640$ 54,382$ AIP 3-41-0037-34 1,619,882 - 1,619,882 1,619,882 - AIP 3-41-0037-32 589,974 - 2,609 2,609 - AIP 3-41-0037-31 2,355,258 606,365 667,637 61,272 - AIP 3-41-0037-30 3,500,000 3,899 4,001 102 -

FAA - Other Transaction Agreement 20.unknown N/A 3,250,000 - 113,000 113,000 - Passenger Facility Charges* None N/A (1,307,616) 1,148,270 1,472,230 (983,656)

Passed through Oregon State Sheriffs Association:Alcohol Traffic Safety and Drunk Driving

Prevention Incentive 20.601 None 20,553 1,665 19,515 20,553 2,703 Occupant Protection 20.602 None 21,331 11,194 25,191 21,331 7,334

Passed through Oregon State Departmentof Transportation:

State and Community Highway Safety 20.600 None 20,477 - 15,606 20,477 4,871 Federal Aid Highway Program: 20.205 None

Highway Bridge Replacement & Rehabilitation 29,959 - 29,959 29,959 - Highway Work Zone Enforcement 4,376 - 4,376 4,376 -

Total U.S. Department of Transportation (684,493) 4,633,304 4,403,431 (914,366)

U.S. Department of the InteriorBureau of Land Management:

Direct programs:Secure Rural Schools and Community Self-

Determination Act of 2000: 15.unknown N/ATitle I - Secure Payments 12,524,996 - 12,524,996 12,524,996 - Title II - Special Projects 1,178,823 - 1,178,823 1,178,823 - Title III - County Projects 1,031,470 (3,580,447) 1,031,470 1,250,024 (3,361,893)

Drug Enforcement - Marijuana Eradication 15.unknown N/A 16,834 5,854 5,854 - - Recreation Area Law Enforcement

Patrol 15.unknown N/A 114,760 25,979 131,230 114,760 9,509 Special Recreation Permits: 15.227 N/A

Taylor Grazing 582 - 582 582 - Federal Entitlement Lands 15.226 N/A 294,238 - 294,238 294,238 -

Bureau of Reclamation:Direct program:

Water 2025 Challege Grant 15.507 N/A 58,129 4,828 53,108 58,129 9,849

Passed through Oregon Department of Fish and Wildlife:

Sport Fish Restoration - Willow LakeCapital Grant 15.605 None 23,679 23,679 - -

Passed through Oregon State Marine Board:Federal Clean Vessel Act Program 15.616 None 3,375 - 3,375 3,375 -

Total U.S. Department of the Interior (3,520,107) 15,247,355 15,424,927 (3,342,535)

U.S. Department of AgricultureForest Service:

Direct program:Recreation Area Law Enforcement

Patrol 10.unknown N/A 35,038 - 35,038 35,038 -

Passed through Oregon Department of Education:National School Breakfast Program 10.553 ** 21,592 1,559 15,464 21,592 7,687 National School Lunch Program 10.555 ** 40,172 2,892 38,792 40,172 4,272

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U.S. Department of Agriculture (Contd)Passed through Oregon Executive Department:

Secure Rural Schools and Community Self-Determination Act of 2000: 10.unknown NoneTitle I - Secure Payments 4,426,103$ -$ 4,426,103$ 4,426,103$ -$ Title II - Special Projects 416,581 - 416,581 416,581 - Title III - County Projects 364,503 (1,264,542) 364,503 441,692 (1,187,353)

Passed through Oregon Department of HumanResources - Health Division:

Special Supplemental Food Program for Women, Infants and Children 10.557 280559 1,002,363 87,241 1,003,911 1,002,363 85,693

Total U.S. Department of Agriculture (1,172,850) 6,300,392 6,383,541 (1,089,701)

U.S. Department of CommerceDirect programs:

Habitat Conservation - NOAA/Ecotrust 11.463 N/A 98,804 22,366 52,642 98,804 68,528 ARRA - Habitat Conservation 11.463 N/A 1,799,898 - 991,979 1,799,898 807,919

Passed through Oregon Military Department -Office of Emergency Management:

Public Safety Interoperable Communications Grant 11.555 None 250,000 250,000 - -

Total U.S. Department of Commerce 272,366 1,294,621 1,898,702 876,447

U.S. Department of Health and Human ServicesDirect program:

National Biterrorism HospitalPreparedness Program 93.889 N/A 23,900 - 23,900 23,900 -

Passed through Health Care Coalition ofSouthern Oregon - HCCSO 93.926 None 159,105 - 159,105 159,105 -

Passed through Oregon Department of Justice:Child Support Enforcement 93.563 None 250,238 97,163 300,286 250,238 47,115 ARRA - Child Support Enforcement 93.563 None 139,904 - 91,371 139,904 48,533

Passed through Oregon Health Sciences University:Maternal and Child Health Services

Block Grant 93.994 None 67,288 18,285 85,573 67,288 -

Passed through Oregon Office for Services to Children & Families:

Social Services Block Grant 93.667 None 228,463 67,067 295,530 228,463 - Foster Care - Title IV-E 93.658 None 3,412 - 3,412 3,412 - Promotion of Safe and Stable Families -

Family Preservation & Support 93.556 None 51,420 - 51,420 51,420 - Medical Assistance Program 93.778 None 30,184 - 30,184 30,184 -

Passed through Oregon Department of Human Services -Maternal and Child Health Federal Consolidated Programs:

National Bioterrorism Hospital Preparedness 93.889 None 135,076 13,313 148,389 135,076 - Substance Abuse & MH Services -

Youth Suicide Prevention 93.243 None 79,723 4,044 58,834 79,723 24,933

Passed through Oregon Department of HumanResources - Health Division:

Family Planning Services - Title X 93.217 280558 88,116 6,875 81,934 88,116 13,057 Disease Control & Prevent-Investigate & Technical

Assistance: 93.283Tobacco Related Chronic Disease None 37,916 - 37,916 37,916 -

Public Health Emergency Preparedness 93.069 280618 660,649 11,048 521,851 660,649 149,846

(Continues)-128-





U.S. Department of Health and Human Services (Contd)Maternal and Child Health Services

Block Grant 93.994 180514 100,695$ -$ 115,355$ 100,695$ (14,660)$ Abstinence Education - STARS 93.235 209003 534 (29) 505 534 - Environmental Public Health & Emergency

Response Cooperative Agreements 93.070 None 5,416 - 5,416 5,416 - Acquired Immunodeficiency Syndrome (AIDS)

Activity - HIV Prevention Program: 93.940 280546/HIV Prevention 280646 49,677 3,819 52,358 49,677 1,138

HIV Health Consortia 93.917 280544 113,394 4,131 113,032 113,394 4,493 HIV Ryan White Support Services 93.917 280544 42,120 6,888 43,361 42,120 5,647 Project Grants and Cooperative Agreements for

Tuberculosis Control Programs 93.116 15-02 846 - 846 846 - Preventive Health and Health Services

Block Grant 93.991 135001 3,500 - 3,500 3,500 - ARRA - Immunization, Centers for Disease

Control Cooperative Agreements 93.712 None 47,902 - 4,825 47,902 43,077 Immunization Grants: 93.268 280540

Immunizations 1,200 - 1,200 1,200 - Direct Assistance - Vaccine 264,199 - 264,199 264,199 -

Passed through Oregon Department of Human Resources - Mental Health Division:

Medical Assistance Program 93.778 None 54,089 4,419 49,256 54,089 9,252 Substance Abuse Prevention Treatment

Block Grant: 93.959 135001Continuum of Care AD66 395,711 - 395,711 395,711 - Substance Abuse Residential AD67 250,422 - 250,422 250,422 - Prevention AD70 75,031 - 75,031 75,031 - Resident Drug AD62 37,668 - 37,668 37,668 -

Projects for Assistance in Transition fromHomelessness 93.150 None 47,116 - 47,116 47,116 -

Community Mental Health Services Block Grant: 93.958 112001Non-Residential Adult (MHS20) 82,385 - 82,385 82,385 - Community Treatment (MED22) 26,231 - 26,231 26,231 -

Total U.S. Department Health and Human Services 237,023 3,458,122 3,553,530 332,431

U.S. Department of EducationPassed through Oregon Department of Human Resources:

Rehabilitation Services - Vocational RehabGrants to States 84.126 None 583 - 583 583 -

Drug Free Schools - Prevention AD70 84.186 15-001 36,124 - 36,124 36,124 -

Total U.S. Department of Education - 36,707 36,707 -

U.S. Department of EnergyDirect program:

ARRA - Energy Efficiency Conservation Block Grant 81.128 N/A 113,756 - 113,756 113,756 -

U.S. Social Security AdministrationPassed through Oregon Department of Human Resources -

Adult and Family Services Division:Social Security Incentive on Incarcerated

Individuals 96.unknown None 13,400 - 13,400 13,400 -

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U.S. Environmental Protection AgencyPassed through Oregon Department of Human

Resources - Health Division:State Public Water System Supervision

Program Grants 66.432 280555 40,914$ -$ 40,914$ 40,914$ -$ Drinking Water State Revolving Fund 66.468 280555 29,374 - 29,374 29,374 -

Total U.S. Environmental Protection Agency - 70,288 70,288 -

U.S. Department of JusticeDirect programs:

State Criminal Alien Assistance Program 16.606 N/A 102,416 - 102,416 102,416 - Bulletproof Vest Partnership 16.607 N/A 3,077 - 3,077 3,077 - ARRA - Collection/Accountability Grant 16.804 N/A 41,578 - 26,578 41,578 15,000 Domestic Violence Grant: 16.590 N/A

Community Justice 183,318 40,816 164,134 183,318 60,000 District Attorney 27,076 12,250 32,825 27,076 6,501

Passed through Oregon Department of Justice:Grants to Encourage Arrest Policies:

Victims of Crime Acts 16.575 None 58,680 14,297 58,413 58,680 14,564 Byrne Grant - State/Local Law

Enforcement Assistance 16.580 None 63,080 11,920 75,000 63,080 -

Passed through Oregon Department of State Police:Stop Violence Against Women 16.588 None 30,744 33,208 46,913 30,744 17,039 ARRA - Stop Violence Against Women 16.588 None 17,987 - 10,392 17,987 7,595 Byrne Grant - Justice Assistance Grant 16.738 None 35,892 111,967 130,951 35,892 16,908

Passed through Oregon Department of Human Resources - Children, Adults and Families Division:

Juvenile Accountability Incentive Block Grant 16.523 05-614 10,981 3,800 10,781 10,981 4,000

Total U.S. Department of Justice 228,258 661,480 574,829 141,607

U.S. Office on National Drug Control PolicyPassed through Oregon State Police:

High Intensity Drug Traffic Area 16.595 IOPORP501 111,790 41,790 120,435 111,790 33,145

U.S. Department of TreasuryPassed through Oregon Department of Justice:

Federal Equitable Sharing 21.unknown None 91,290 - 91,290 91,290 -

U.S. Department of General ServicesPassed through Oregon Department of Administrative Services:

Distribution of Receipts to State and Local Governments - 5% Land Sales 39.002 None 5,486 - 5,486 5,486 -

U.S. Department of Homeland SecurityDirect Programs:Transportation Security Administration

Reimbursement 97.unknown None 170,326 15,040 170,896 170,326 14,470 Transportation Security Administration

Equipment Grant 97.unknown None 208,458 459,252 667,710 208,458 - Emergency Food & Shelter 97.unknown None 24,563 - 24,563 24,563 -

Passed through Oregon Military Department - Office of Emergency Management:

Public Assistance Grant 97.036 None 42,275 - 42,275 42,275 - Emergency Management Performance Grants 97.042 None 95,843 21,328 93,394 95,843 23,777 State Homeland Security Program (SHSP) 97.073 None 372,225 123,024 495,249 395,234 23,009 Citizen Corps Program 97.053 None 6,808 - 208 6,808 6,600

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U.S. Department of Homeland Security (Contd)Passed through Oregon State Marine Board:

Boating Safety Financial Assistance 97.012 None 279,614$ 144,525$ 424,139$ 279,614$ -$

Passed through Oregon Executive Department -Emergency Management Division:

Hazard Mitigation Grant 97.039 None 2,531 - 2,531 2,531 -

Total U.S. Department of Homeland Security 763,169 1,920,965 1,225,652 67,856

U.S. Department of Housing and Urban Development

Passed through Oregon Department of Economic Development:

Community Development Block Grant 14.228 ** 12,500 - 12,500 12,500 -

Total Federal Assistance (3,834,844)$ 33,980,101$ 33,919,829$ (3,895,116)$

Passenger Facility Charges (1,472,230)

Amount used in determining major programs under OMB Circular A-133 guidelines 32,447,599$

3% of total expenditures - Type A Program 973,428$

*Passenger Facility Charges are not federal revenues, but must be used in accordance with Federal Aviation Regulation (Title IVX Code of Federal Regulations Part 158)**State agencies did not provide pass-through numbers.

The accompanying notes are an integral part of this schedule.

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Notes to Schedule of Expenditures of Federal Awards

For the year ended June 30, 2010 1. Purpose of the Schedule: The accompanying schedule of expenditures of federal awards (the Schedule) is a

supplementary schedule to Jackson County, Oregon's (the County) financial statements and is presented for purposes of additional analysis. Because the Schedule presents only a selected portion of the activities of the County, it is not intended to and does not present either the financial position, changes in fund balances, or the current funds' revenues, expenditures and other changes of the County.

2. Significant Accounting Policies: Reporting Entity: The reporting entity is fully described in Note 1 to the County's financial

statements. The Schedule includes all federal financial assistance programs administered by the County for the year ended June 30, 2010.

Basis of Presentation: The information in the Schedule is presented in accordance with

OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Federal Financial Assistance: Pursuant to OMB Circular A-133, federal financial

assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance.

Major Programs: OMB Circular A-133 establishes a dollar limit and risk base criteria for

selecting major federal programs. Using this criteria, the County has five Type A programs, all of which were selected for testing as major programs, the remainder being Type B programs, one of which was selected for testing as a major program.

Basis of Accounting: The expenditures in the Schedule are recognized as incurred based on

the accrual basis of accounting and the cost accounting principles contained in OMB Circular A-87, Cost Principles for State and Local Governments. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.

Matching Costs: The Schedule does not include matching expenditures.

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SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2010

A - SUMMARY OF AUDIT RESULTS:

1. The independent auditor's report expresses an unqualified opinion on the financial statements of Jackson County, Oregon.

2. There were no significant deficiencies in internal control over financial reporting reported during the audit of the financial statements of Jackson County, Oregon.

3. No instances of noncompliance material to the financial statements of Jackson County, Oregon were disclosed during the audit.

4. There were no significant deficiencies in internal control over compliance reported during the audit of the major federal award programs of Jackson County, Oregon.

5. The independent auditor's report on compliance for the major federal award programs of Jackson County, Oregon expresses an unqualified opinion.

6. No audit findings relative to the major federal award programs of Jackson County, Oregon are reported in this schedule.

7. The programs tested as major programs included the following programs:

CFDA Program Name Number U.S. Department of Transportation, Airport Improvement Program 20.106 U.S. Department of the Interior, Secure Rural Schools and Community Self-Determination Act of 2000 15.unknown U.S. Department of Agriculture, Secure Rural Schools and Community Self-Determination Act of 2000 10.unknown Special Supplemental Food Program For Women, Infants and Children 10.557 ARRA – Habitat Conservation 11.463 ARRA – Energy Efficiency Conservation Block Grant 81.128

8. The threshold for distinguishing Type A programs from Type B programs was $973,428.

9. Jackson County, Oregon was determined to be a low-risk auditee. B - FINDINGS, FINANCIAL STATEMENTS AUDIT:

None. C - FINDINGS AND QUESTIONED COSTS, MAJOR FEDERAL AWARD

PROGRAMS AUDIT:

None.

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

Oregon Administrative Rules 162-010-0050 through 162-010-0320 incorporate the Minimum Standards for Audits of Oregon Municipal Corporations prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy. Such standards enumerate the financial statements, schedules, comments and disclosures required in audit reports. The required financial statements and schedules are set forth in preceding sections of this report. Required comments and disclosures related to the audit of such statements and schedules are set forth following.

JACKSON COUNTY, OREGON COMPREHENSIVE ANNUAL ...

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