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					  Josephine County
            Oregon
  Comprehensive Annual
    Financial Report




For the Fiscal Year Ended June 30, 2004
Josephine County, Oregon
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2004




     Report Prepared by Josephine County Finance Department

                Arthur O’Hare, Chief Accountant

            William V. Burnes, CPA / Budget Analyst
                                     JOSEPHINE COUNTY, OREGON


                         Comprehensive Annual Financial Report
                         For the Fiscal Year Ended June 30, 2004

                                                Table of Contents
                                                 Introductory Section
                                                                                                                            Page
Letter of Transmittal ............................................................................................................2
Certificate of Achievement for Excellence in Financial Reporting.....................................5
Organization Chart...............................................................................................................6
List of Elected and Appointed Officials ..............................................................................7

                                                    Financial Section

Independent Auditor’s Report..............................................................................................9
Management’s Discussion and Analysis ...........................................................................11
Basic Financial Statements:
  Government-wide Financial Statements:
   Statement of Net Assets ...............................................................................................20
   Statement of Activities.................................................................................................21
  Fund Financial Statements:
   Balance Sheet – Government Funds ............................................................................22
   Reconciliation of the Balance Sheet to the Statement of Net Assets...........................23
   Statement of Revenues, Expenditures, and Changes in Fund Balances
     – Governmental Funds..............................................................................................24
   Reconciliation of the Statement of Revenues, Expenditures, and Changes in
     Fund Balances – Governmental Funds to the Statement of Activities .....................25
   Statement of Net Assets – Proprietary Funds ..............................................................26
   Statement of Revenues, Expenditures, and Changes in Fund
     Net Assets – Proprietary Funds.................................................................................27
   Statement of Cash Flows – Proprietary Funds.............................................................28
   Statement of Fiduciary Net Assets – Fiduciary Funds.................................................29
  Notes to the Financial Statements...................................................................................30

Required Supplementary Information:
 Statement of Revenues, Expenditures, and Changes in Fund Balances –
   Budget and Actual – General Fund..............................................................................50
 Statement of Revenues, Expenditures, and Changes in Fund Balances –
   Budget and Actual – Public Works Program Fund......................................................53
 Statement of Revenues, Expenditures, and Changes in Fund Balances –
   Budget and Actual – Mental Health Program Fund.....................................................54
 Statement of Revenues, Expenditures, and Changes in Fund Balances –
   Budget and Actual – Regional Hospital Program Fund...............................................55

Combining and Individual Fund Statements and Schedules:


                                                                ii
                                  JOSEPHINE COUNTY, OREGON


Combining Balance Sheet – Nonmajor Governmental Funds........................................63
Combining Statement of Revenues, Expenditures, and Changes in Fund
 Balances – Nonmajor Governmental Funds ................................................................64

Combining Balance Sheet – Nonmajor Special Revenue Funds ....................................65
Combining Statement of Revenues, Expenditures, and Changes in Fund
 Balances – Nonmajor Special Revenue Funds ............................................................65
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
 Budget and Actual – Nonmajor Special Revenue Funds.............................................73

Combining Balance Sheet – Nonmajor Debt Service Funds ..........................................92
Combining Statement of Revenues, Expenditures, and Changes in Fund
 Balances – Nonmajor Debt Service Funds ..................................................................92
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
 Budget and Actual – Nonmajor Debt Service Funds...................................................94

Combining Balance Sheet – Nonmajor Capital Project Funds.......................................97
Combining Statement of Revenues, Expenditures, and Changes in Fund
 Balances – Nonmajor Capital Project Funds ...............................................................97
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
 Budget and Actual – Nonmajor Capital Project Funds................................................98

Combining Balance Sheet – Nonmajor Permanent Funds............................................100
Combining Statement of Revenues, Expenditures, and Changes in Fund
 Balances – Nonmajor Permanent Funds ....................................................................100
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
 Budget and Actual – Nonmajor Permanent Funds ....................................................101

Combining Statement of Net Assets – Nonmajor Enterprise Funds.............................103
Combining Statement of Revenues, Expenses, and Changes in Fund
 Net Assets – Nonmajor Enterprise Funds..................................................................104
Combining Statement of Cash Flows – Nonmajor Enterprise Funds ...........................105
Schedule of Revenues, Expenditures, and Changes in Fund Net Assets –
 Budget and Actual – Nonmajor Enterprise Funds .....................................................106

Combining Statement of Net Assets – Internal Service Funds.....................................109
Combining Statement of Revenues, Expenses, and Changes in Fund
 Net Assets – Internal Service Funds ..........................................................................110
Combining Statement of Cash Flows – Internal Service Funds ...................................111
Schedule of Revenues, Expenditures, and Changes in Fund Net Assets –
 Budget and Actual – Internal Service Funds .............................................................113

Combining Statement of Changes in Assets and Liabilities – Trust and
 Agency Funds ............................................................................................................118




                                                           iii
                                    JOSEPHINE COUNTY, OREGON



                                                  Statistical Section

General Government Expenditures by Function..............................................................120
General Government Revenue by Source........................................................................122
Property Tax Levies and Collections...............................................................................123
Assessed and Real Market Values of Taxable Property ..................................................124
Nominal Property Tax Rates – Direct and Overlapping Governments ...........................125
Principal Taxpayers .........................................................................................................126
Special Assessment Collections.......................................................................................127
Computation of Legal Debt Margin.................................................................................128
Ratio of Net General Bonded Debt to Assessed Value....................................................129
Ratio of Annual Debt Service Expenditures for General Bonded Debt
  To Total General Governmental Expenditures .............................................................130
Computation of Direct and Overlapping Bonded Debt ...................................................131
Demographic Statistics ....................................................................................................132
Building Permits and Construction Value .......................................................................133
Schedule of Insurance and Fidelity Bond Coverage........................................................134
Miscellaneous Statistics ...................................................................................................135

              Disclosures in Accordance with Government Auditing Standards
                           And Independent Auditor’s Comments

Independent Auditor’s Report on Compliance and on the Internal Control
  Over Financial Reporting based on an Audit of the Financial Statements
  Performed in Accordance with Government Auditing Standards ................................138
Independent Auditor’s Comments ...................................................................................140




                                                              iv
  JOSEPHINE COUNTY, OREGON




INTRODUCTORY SECTION




             1
                                      Josephine County, Oregon
                                                             Board of Commissioners: Jim Riddle, Dwight F. Ellis, Jim Raffenburg



                                                                          Finance Department
                                                                   Josephine County Courthouse
                                                                           th
                                                        500 NW 6 Street / Grants Pass OR 97526
                                      (541) 474-5255 / FAX (541) 474-5258 / TTY (800) 735-2900


May 18, 2005

Honorable Members
Board of County Commissioners

Citizens of Josephine County

We are pleased to present to you the audited Comprehensive Annual Financial Report (CAFR) of
Josephine County for the fiscal year ended June 30, 2004. This CAFR is published to fulfill the
requirements of Oregon Revised Statute 297.415 and other state and local laws. The financial statements
presented herein conform to generally accepted accounting principles and have been given an unqualified
(“clean”) opinion by the independent auditing firm of Kenneth Kuhns & Co. The independent auditor’s
report is located at the front of the financial section of this report.

This report consists of management’s representation concerning the finances of the county. As such,
management assumes full responsibility for the completeness and reliability of the information contained
in this report, based upon the framework of internal controls that it has established for this purpose. The
cost of internal controls should not outweigh their benefits; therefore, internal controls are designed to
provide reasonable rather than absolute assurance that the financial statements are free from material
misstatement. We believe, to the best of our knowledge, the financial statements are complete and
reliable in all material respects.

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

Profile of Josephine County Government

Josephine County is located in the southwestern corner of the State of Oregon. The southern border of
the County forms the Oregon/California state line. The County was established on January 22, 1856.
The County's boundaries encompass an area of 1,641 square miles. Living within these boundaries is a
population of approximately 76,000 people. The County's population has shown a significant increase. It
has more than doubled since 1970 when the population was 35,746.

Josephine County has three commissioners who are elected at large for four-year terms. The daily
administrative functions of each County department are overseen by an appointed Department Head or
one of seven other Elected Officials. The Board of County Commissioners (BCC) sets policy, adopts the
annual budget, and passes resolutions and ordinances in accordance with state law. The BCC appoints the
non-elected department heads and many volunteers to citizen's advisory and review committees, including
the Budget Committee. These committees assist the County and the BCC in providing needed and
desired services to the community.




                                                     2
The Budget Committee is comprised of the three Commissioners and three citizens appointed from the
public at large by the BCC, and two alternates. Each of the citizens serves a three-year term (terms are
staggered so one is up for replacement each year), and they are not paid for their services. The Budget
Committee hears each department's budget presentation, reviews and approves the annual budget in
hearings open to the public. All funds are budgeted in conformance with Oregon Local Budget Law. The
resolution authorizing appropriations for each fund sets the level that expenditures cannot legally exceed.
The level of accountability for the general fund and administrative internal service funds is at the
department level. The level of accountability for all other funds is at the expenditure category level
(Personal Services, Materials and Services, Capital Outlay, etc.).

Josephine County government provides a wide range of services. The services consist of public and
mental health, parks and recreation, airport operations, public road maintenance and construction,
planning and development, building safety, county fair activities, probation and juvenile justice activities,
and libraries. In addition, it provides human services to the economically disadvantaged in the county.
Some of the services are provided by the departments which are headed by one of the seven Elected
Officials. The Sheriff provides 24-hour patrols and operates the jail. The Assessor is responsible for
certifying all levies and computing the valuation of property for taxation. The Clerk conducts elections
and maintains official records. The District Attorney prosecutes the criminals of the community and
maintains a family support division. The County Surveyor maintains County land survey records and the
Treasurer is the custodian of County and District monetary funds. Finally, the County's Legal Counsel
provides legal support to all County departments.

Local Economic Condition and Outlook

Josephine County’s reliance on logging and timber products manufacturing has decreased over the past
two decades. Despite this, new jobs continue to be added. And while the County’s industrial base has
diversified to include high technology, medical care, tourism, retirement services, retail trade and other
service and manufacturing sectors, the wood products industry is still a major force in the County. Many
of the top manufacturers in the County, including those producing wood products, continue to expand and
add employees. Job growth has continued in Josephine County, which experienced little impact of the
recent recession.

In fact, the County leads the state in economic diversity among rural counties. A state economist has
determined Josephine County to rank highest among Oregon rural counties in terms of economic
diversification. Also, Josephine County has experienced a rapid rate of population growth –
approximately 20% over the last ten years.

Retail trade is the largest sector of employment (16.6%), followed by health services (13.7%),
manufacturing (12.8%), leisure and hospitality (11.2%), and local education (9.1%). The total civilian
labor force grew to over 31,000 in 2003. The total number of jobs in Josephine County has increased by
15% between 1992 and 2002.

Following similar national and statewide trends, manufacturing employment has fallen by more than 800
jobs in the past decade in the County. Employment in the wood products industry fell by more than 33%
in this time. However, employment in secondary wood products manufacturing continues positive or
stable growth. Non-manufacturing has experienced modest growth. Through 2005, the services sector is
projected to see the fastest job growth in the region (30.7%), followed by construction (24.6%), and trade
(22.8%). The trade sector will continue to dominate the market in terms of total job count in the region.
Some of the fastest growing occupations in the region through 2006 include home health aids, social
welfare service aids, computer engineers, amusement/recreation service workers, preschool teachers and
computer-related specialists.

The City of Grants Pass and surrounding community are positioned well for economic growth. The
community’s philosophy toward growth is not a “growth at any cost” approach. In fact, leaders are


                                                      3
constantly working at the precarious balance of growth management, striving to preserve the quality of
life and the small town atmosphere that combine to make the area a special place. Despite the slowing
state and national economy and challenging times, the new century remains a time of re-birth in Josephine
County. It is an exciting era with a new high school, a new hospital, a new downtown, a new industrial
park and many new business expansions.

Awards

The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the County for its 2003 Comprehensive Annual Financial Report.
This is the sixth year in a row the County has received this prestigious award. To earn a Certificate of
Achievement, the County must publish an easily readable and efficiently organized CAFR that satisfies
both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
meets the Certificate of Achievement Program’s requirements and will submit it to the GFOA to
determine its eligibility for another certificate.

Acknowledgements

The preparation of this report would not have been possible without the efficient and dedicated service of
the entire staff of the Finance Department. We give special recognition to Josephine County Treasurer
John Harelson for providing sound financial leadership to the Finance Department throughout this past
fiscal year. As Acting Chief Financial Officer, John gave direction and stability to the department during
an extended management transition. Thanks, John!

Our appreciation is also given to the professional management and accounting personnel in each
department; without their contribution this report could not be developed. In addition, we appreciate the
Board of County Commissioners for their support and interest in planning and conducting the financial
operations of the County.

Respectfully Submitted,




Arthur O’Hare                                                    William V. Burnes, CPA
Chief Accountant                                                 Budget Analyst




                                                    4
5
                                             Citizens of Josephine County
                                                              CHARTER

                                               Board of County Commissioners                                               Boards and Committees
                                                Jim Brock, Harold L. Haugen, Jim Riddle




General Government             Community Development                                      Criminal Justice                        Human Services

          Assessor                       Airports                                              Community Justice                           Public Health
       Mike Schneyder                   Alex Grossi                                                 Marie Hill                              Leslie O’Brien

                                     Building & Safety
     Clerk & Recorder                                                                                   Adult                                 Public Health
                                       Dave Bassett
       Georgette Brown

                                     Community Dev.                                                    Juvenile                            Environmental Health
      County Counsel
                                       Bruce Bartow
          Steve Rich

                                             Parks                                                                                           Animal Control
    Information Systems
        Tyler Wilhelm                                                                           District Attorney
                                            Planning                                              Clay Johnson                                 Library
                                                                                                                                              Sue Luce
     Human Resources
         Kent Granat                     Forestry
                                        Virgil Witcher                                                                                   Human Services -
                                                                                                     Sheriff                              Mental Health
             Risk Mgmt.                                                                            Dave Daniel                                Joe Adair

                                       Public Works
          Communications                                                                                                                    Comm. on Child &
                                       Robert Weber                                                      Jail
                                                                                                                                               Families
                                        Build. Operations &
          Treasurer                        Maintenance                                                                                    Community Services
        John Harelson                                                                             Emergency Services
                                          County Fleet
            Tax Collection
                                       County Prop. Mgmt.


           Finance                      Surveyor                                                       Elected Officials are indicated by a shadowed box…
     John Harelson (Interim)            Peter Allen
                                                                 6
                       JOSEPHINE COUNTY, OREGON



                 LIST OF ELECTED AND APPOINTED OFFICIALS

                                 JUNE 30, 2004


Elected Officials

Jim Riddle                Chair, Board of County Commissioners
Jim Brock                 Vice Chair, Board of County Commissioners
Harold L. Haugen          Commissioner, Board of County Commissioners

Mike Schneyder            Assessor
Georgette Brown           Clerk
Steve Rich                County Counsel
Clay Johnson              District Attorney
Peter Allen               Surveyor
John Harelson             Treasurer
Dave Daniel               Sheriff


Appointed Officials

Alex Grossi               Department of Airports
Dave Bassett              Building and Safety
Bruce Bartow              Community Development
Marie Hill                Community Justice
Virgil Witcher            Forestry
Joe Adair                 Human Services
Sue Luce                  Library
Leslie O’Brien            Public Health
Robert Weber              Public Works




                                        7
JOSEPHINE COUNTY, OREGON




FINANCIAL SECTION




           8
9
10
                          JOSEPHINE COUNTY, OREGON


                 MANAGEMENT’S DISCUSSION AND ANALYSIS

This section of the County’s comprehensive annual financial report presents our
discussion and analysis of the County’s financial performance during the fiscal year
ended June 30, 2004. This discussion and analysis is intended to serve as an introduction
of the County’s basic financial statement. It is designed to (a) assist the reader in
focusing on significant financial issues, (b) provide an overview of the County’s financial
activities, (c) identify any material changes from the original budget, and (d) highlight
individual fund issues.

We encourage readers to consider the information presented here in conjunction with our
letter of transmittal beginning on page 2 of this report.

Financial Highlights

   •   The assets of Josephine County exceeded its liabilities at the close of the most
       recent fiscal year by $21,943,038 (total net assets).

   •   The County’s total net assets increased by $2,375,518 as a result of the year’s
       operations. The public works fund and the payroll liability reserve fund account
       for most of the increase.

   •   At June 30, 2004 the County’s governmental funds reported combined ending
       fund balances of $18,510,984 an increase of $3,411,656 in comparison to the
       prior year.

   •   Josephine County’s total outstanding debt for bonds, leases, and loans decreased
       by $804,273 in comparison to the prior year as a result of normal loan payments.
       No new debt was issued during the year.

Overview of the Financial Statements
The basic financial statements consist of 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 themselves.

Government-wide Financial Statements
The government-wide financial statements are designed to provide a broad overview of
the County’s finances, in a manner similar to a private-sector business. All of the
County’s activities are reported in the government-wide statements, except for activities
accounted for in fiduciary funds because resources of those funds are not available to
support the County’s own programs.

The statement of net assets presents information on all of the County’s assets and
liabilities, with the difference between the two reported as net assets.




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                           JOSEPHINE COUNTY, OREGON


The statement of activities presents information showing how the County’s net assets
changed during the fiscal year. All of the changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of the related
cash flows. Revenues are recognized when earned and expenses are recorded at the time
liabilities are incurred. Thus, revenues and expenses are reported in this statement for
some items that will not result in cash flows until future fiscal periods (e.g., uncollected
taxes).

These two government-wide financial statements report the County’s net assets and the
change in net assets. Net assets, which represent the difference between assets and
liabilities, are one measure of the County’s financial health, or financial position. Over
time, increases or decreases in the County’s net assets may serve as a useful indicator of
whether its financial position is improving or deteriorating. However, to assess the
overall health of the County, you need to consider additional non-financial factors such as
changes in the property tax base and changes in the County’s economy.

The government-wide financial statements of the County are divided into the following
two categories:
1. Governmental activities. This includes the basic services provided by the County to
its citizens, such as public assistance programs, public safety and public health. O&C
funds, property taxes, federal grants, and state grants finance most of these activities. The
County’s internal service funds, which provide services to other County departments, are
included in governmental activities because these services predominately benefit
governmental programs rather than business-type functions.
2. Business-type activities. The County charges fees to customers to help cover the costs
of certain services it provides. These activities include the Jail Commissary and the two
airports.

Fund Financial Statements
The fund financial statements provide more detailed information about the County’s most
significant funds (not the County as a whole). Funds are accounting mechanisms the
County uses to keep track of specific sources of funding and spending for particular
purposes. Similar to other state and local governments, the County uses fund accounting
to demonstrate and ensure compliance with finance-related legal requirements.

All of the County’s funds can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds.

Governmental funds. Most of the County’s basic services are included in governmental
funds, which focus on (1) how cash and other financial assets that can readily be
converted to cash flow in and out and (2) the balances remaining at year end that are
available for spending. Thus, the governmental fund statements provide a detailed short-
term view that helps to determine whether there are more or less financial resources that
can be spent in the near future to finance the County’s programs. Because this
information does not encompass the additional long term focus of the government-wide




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                          JOSEPHINE COUNTY, OREGON


statements, we provide information following the governmental fund statements that
reconciles the government-wide focus to the governmental fund focus.

The County maintains over fifty individual governmental funds. Information is presented
separately in the governmental fund financial statements for the four major governmental
funds, including the general fund. Data from the other governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this
report.

Proprietary funds. Services for which the County charges customers a fee, similar to a
business operation, are generally reported in proprietary funds. Proprietary fund
statements, like the government-wide statements, provide both long-term and short-term
financial information. The County’s enterprise funds (one type of proprietary fund) are
the same as its business-type activities, but provide more detail and additional
information, such as cash flows. We use internal service funds (the other type of
proprietary fund) to report activities that provide services to the County’s other programs
and activities (such as the County’s Central Motor Pool).

The proprietary fund financial statements provide separate information for the County’s
single major proprietary fund. The two nonmajor proprietary funds are combined and all
the internal service funds are combined into aggregated presentations. Individual fund
data for each nonmajor proprietary fund and for each of the internal service funds is
provided in the form of combining statements elsewhere in this report.

Fiduciary funds. Fiduciary funds account for resources held for the benefit of parties
outside the government. The County is the trustee, or fiduciary, for these funds. Fiduciary
funds are accounted for in a manner similar to proprietary funds. All of the County’s
fiduciary activities are reported in a separate statement of changes in fiduciary net assets.
These activities have been excluded from the County’s government-wide financial
statements because the County cannot use these assets to finance its operations.

Notes to the Financial Statements
The basic financial statements also include notes, which provide additional information
that is essential to a full understanding of the data provided in the government-wide and
fund financial statements.

Other Information
In addition to the basic financial statements and accompanying notes, this report also
presents a section of required supplementary information (RSI) which contains budget-to-
actual comparison schedules for the County’s general fund and the major special revenue
funds. The combining financial statements referred to earlier are presented immediately
following the required supplementary information. These combining statements provide
details about our nonmajor governmental funds, enterprise funds, and internal service
funds, each of which are added together and presented in single columns in the basic
financial statements.




                                             13
                          JOSEPHINE COUNTY, OREGON



A statistical section containing selected financial, economic, and demographic
information is presented immediately following the combining statements.

Government-wide Financial Analysis

Net Assets. Net assets may serve over time as a useful indicator of a government’s
financial position. Josephine County’s combined net assets for the current fiscal year
were approximately $21.9 million as shown in Table 1. The largest portion of this
balance consists of capital assets (e.g. land, buildings, and equipment). Since the County
uses its capital assets to provide services to citizens, this amount is not available for
future spending.

An additional portion of the County’s net assets represent resources that are subject to
restrictions on how they may be used. The remaining balance of unrestricted net assets is
a deficit of $18.6 million. The deficit unreserved, undesignated net assets indicates that
reservations of net assets exceed total net assets.

                                       Table 1
                    Josephine County’s Net Assets – June 30, 2004
                                    (in millions)

                    Governmental      Business-type
                       Activities         Activities          Total
Total Assets                 $63.4               $2.3          $65.7

Total Liabilities              43.3                0.5           43.8

Net Assets:
 Invested in Capital Assets,
   net of related debt        24.5                 1.6           26.1
 Restricted                   14.4                 -             14.4
 Unrestricted                (18.8)                0.2          (18.6)
Total Net Assets             $20.1                $1.8          $21.9


Changes in Net Assets. The County’s combined change in net assets for the current
fiscal year was an increase of $2.4 million as shown in Table 2. Several governmental
activities had an increase in net assets and several had a decrease in net assets.

The major increases occurred in the Public Works Fund and the Payroll Liability Reserve
Fund. The Public Works Fund had road fund revenue and intergovernmental transfers
that exceeded program expenditures by approximately $1.9 million. The Payroll
Liability Reserve Fund is accumulating resources in order to fund the County’s liability
for Time Management Leave (called Compensated Absences on the financial statements).




                                            14
                           JOSEPHINE COUNTY, OREGON


The major decreases occurred in the Mental Health Fund and the Internal Services Fund.
The Mental Health Fund experienced a decrease in support from state and federal grants
while their expenses increased slightly. The decrease in the Internal Service Fund was
due to closing the Public Works Equipment account and transferring the assets to the
government-wide fund.

Net assets for business-type activities increased slightly as a result of normal operations.

                                         Table 2
                       Josephine County’s Changes in Net Assets
                           For the year ended June 30, 2004
                                      (in millions)

                    Governmental        Business-type
                       Activities           Activities          Total
Total Revenues               $66.5                 $0.8          $67.3

Total Expenses                  64.3                 0.6           64.9

Change in Net Assets             2.2                 0.2            2.4

Net Assets – July 1, 2003       17.9                 1.6           19.5
Net Assets – June 30, 2004     $20.1                $1.8          $21.9


Financial Analysis of the County’s Funds
As noted earlier, Josephine 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 of near-term inflows, outflows, and resources available for spending. Such
information is useful in assessing the County’s financing requirements. In particular,
unreserved fund balance may serve as a useful measure of the County’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 $18.5 million, an increase of $3.4 million over the
prior year. Approximately 95% of this total amount constitutes unreserved fund balance,
which is available for spending on governmental programs at the County’s discretion.
The remainder of fund balance is reserved to indicate that it is not available for new
spending because it represents amounts which have already been committed.

The general fund is the chief operating fund of the County. At the end of the current
fiscal year, unreserved fund balance in the general fund was $2.5 million. Revenues from
property tax and O&C funding increased slightly while expenditures decreased slightly
for an overall increase in fund balance of $396,856.



                                             15
                          JOSEPHINE COUNTY, OREGON



Proprietary Funds. Total proprietary fund net assets increased by $194,640 due mainly
to federal funding of capital improvement projects at the County’s two airports.

Fiduciary Funds. Fiduciary funds account for resources held for the benefit of parties
outside the government. Net assets of all fiduciary funds are reported as held in trust for
particular purposes.

General Fund Budgetary Highlights
The general fund increase of $404,729 between the original adopted budget and the final
budget was primarily due to additional funds received from several federal and state
grants.

Actual expenditures in the general fund were less than the final budgeted expenditures by
$2,010,098. Several factors contributed to these budgetary savings. In particular, the
following two projects funded by Title III dollars were not completed and budget was
carried forward to the following year: 1. Forestry Department conservation easements for
fire mitigation; and, 2. Planning Department program for fire assessment.

Capital Assets
The County’s investment in capital assets for its governmental and business-type
activities as of June 30, 2004 was $38.6 million (net of accumulated depreciation). This
investment in capital assets included land, buildings, improvements, equipment, and
construction in progress. It does not include the County’s infrastructure of roads or
bridges. The County’s investment in capital assets decreased 2.31% for the fiscal year.

Major capital asset events during the fiscal year included the following:
   • $185,026 to purchase four new buses for the Community Action program
   • $330,615 in runway improvements at the two airports
   • $919,411 adjustment to reflect actual cost of building improvements

Additional information on capital assets can be found in Note 4 of this report.

Debt Administration
The County’s total bonded debt outstanding as of June 30, 2004 was $24.7 million. The
outstanding balance represents prior year funding for the construction of the Adult Jail
and for the PERS unfunded actuarial liability, both of which are backed by the full faith
and credit of the County. There was no new bonded debt issued during the fiscal year.

Under state law, Josephine County has a general obligation debt limitation of 2% of the
real market value of taxable property in the county. As of June 30, 2004 the County’s
general obligation bonded debt of $11.5 million was well below the legal limitation of
$109 million.




                                            16
                           JOSEPHINE COUNTY, OREGON


The County’s last bond sale in 2001 received a rating of “Aaa” from Moody’s Investor
Service. Additional information about the County’s long-term debt can be found in Note
5 of this report.

Economic Factors and Next Year’s Budget
Josephine County is faced with some major financial issues, which impact both current
and future budgets. These are discussed in the following paragraphs.

O & C Funding Expires Soon. The largest source of Josephine County general fund
revenues is the federal Secure Rural Schools and Community Self-Determination Act (O
& C replacement funds or Public Law 106-393), which became law on October 30, 2000.
This law provides revenue to counties and schools in rural areas in lieu of declining O &
C and Forest Service receipts. This money is necessary because a very large percentage
of Josephine County is forestland that is not subject to property taxes. It is estimated that
Josephine County will receive a total of $15,070,741 for the budget year of 2004-05.

The O & C money represents an extremely vital source of revenue for the County,
especially for the County’s general fund where it is about 40% of available resources.
The funding under PL 106-393 only lasts through fiscal year 2006-07, and Congressional
action will be required to renew it. For the next two years, the Board of County
Commissioners must commit every possible effort to ensure continuation of these
payments. At the same time, County Department Heads and Elected Officials need to
make contingency plans in case the program is continued at a lower level or is completely
discontinued by Congress.

Local Government Funding Constraints. With the passage of statewide constitutional
property tax limitations of Ballot Measures 5 and 47/50, Josephine County’s ability to
solve its financial problems through tax measures is severely constrained. In a sense the
County is locked in at the $.5867 permanent tax rate and there is no possibility to
increase that rate. One possible solution is to form County Service Districts, which if
approved by voters, would have their own permanent rate. Moreover, Josephine County
has the lowest permanent tax rate in the state. The second lowest rate is Curry County
with a rate of $.5996. Other neighboring counties, Coos, Douglas and Jackson, all have
substantially higher rates. The average permanent tax rate in Oregon is $2.8348.
Josephine County’s low tax rate is in part a reflection of the dependence on the now
uncertain O & C funds at the time the rates were made permanent.

The tax rate constraint mentioned above limits assessed value increases to 3% per year,
or market value, whichever is lower. No property may increase in value more than 3% in
any year unless it is substantially revised or seeks voluntary rezoning. The cap on
assessed values and the requirement to assess new construction similarly to existing
properties has continued to increase the gap between market value and assessed value.
Property value is increasing faster than 3%, and the artificial constitutional gap keeps the
tax rate from responding to the real increases in total value. The limitation of assessed
values keeps the current tax rate from producing sufficient revenue. Rising population,
increased public demand for services and inflationary pressures are causing operating




                                             17
                          JOSEPHINE COUNTY, OREGON


costs to increase faster than revenues, and this situation is projected to cause very
significant budget gaps in the future, even if the O & C funds are renewed at the same
level.

PERS. The 2003 Oregon State Legislature enacted major revisions to the Oregon Public
Employees Retirement System (PERS) in order to make it more affordable to the State of
Oregon and all local governments in Oregon. These changes offset the County’s
unfunded actuarial liability by approximately $33 million, still not enough to offset the
increases caused by PERS investment losses. Not surprisingly, a large number of
employee unions and individuals have appealed the reform legislation to the Oregon
Supreme Court, and the final outcome remains uncertain.

Health Care Premiums. Like most employers and individuals, Josephine County has
been faced with double-digit increases in recent years in the health care premiums it pays
(in part) for its employees. Even small increases in this item have a major impact on the
County.

Declining State Funding. Josephine County receives a large number of grants from the
State. The total budget for 2004-05 for state grants is $25,980,810. These grants help
fund various programs operated by the County, primarily in the Mental Health,
Community Action and Community Justice departments. Due to cutbacks at the State,
grants expected to be received by these three departments in the 2004-05 budget year are
down from the prior year, and this trend could continue unless Oregon’s economy
improves enough to provide the State with more tax revenues. One exception to this
trend is the new grant received for $3,923,000 to rebuild three bridges in Josephine
County.

Requests for Information
This financial report is designed to provide a general overview of the County’s finances
for all those with an interest in the government’s finances. Questions concerning any of
the information provided in this report or requests for additional financial information
should be addressed to Josephine County Finance Department, 500 NW 6th St, Grants
Pass, OR, 97526.




                                            18
     JOSEPHINE COUNTY, OREGON




BASIC FINANCIAL STATEMENTS




                19
                                        JOSEPHINE COUNTY, OREGON


Statement of Net Assets                                               Primary Government
June 30, 2004                                               Governmental             Business-Type
                                                              Activities               Activities            Total
Assets:
  Cash & Investments                                    $         20,822,369     $            201,811    $    21,024,180
  Taxes Receivable                                                    225,731                        -           225,731
  Other Receivables                                                4,323,139                  438,716          4,761,855
  Internal Balances                                                    20,898                 (20,898)                    -
  Due From Other Governments                                          285,039                        -           285,039
  Inventories                                                         755,532                        -           755,532
  Other Assets                                                         61,850                        -               61,850
  Capital Assets:
     Land                                                          9,658,219                  611,814         10,270,033
     Buildings & Improvements                                     31,407,296                3,159,577         34,566,873
     Equipment                                                     9,479,608                   12,882          9,492,490
     Construction in Progress                                           5,506                 330,615            336,121
     Less - Accumulated Depreciation                             (13,635,201)              (2,451,555)       (16,086,756)
Total Assets                                                      63,409,986                2,282,962         65,692,948


Liabilities:
  Accounts Payable                                                 2,937,394                  447,117          3,384,511
  Accrued Payroll Liabilities                                      2,305,979                    6,004          2,311,983
  Accrued Interest Payable                                             91,440                        -               91,440
  Claims Payable                                                      527,800                        -           527,800
  Due to Other Governments                                                 233                       -                 233
  Deferred Revenue                                                    711,169                        -           711,169
  Other Liabilities                                                   163,704                        -           163,704
  Noncurrent Liabilities:
  Due in One Year:
    Bonds Payable                                                     950,000                        -           950,000
    Leases Payable                                                    144,572                        -           144,572
    Loans Payable                                                      35,852                        -               35,852
    Compensated Absences                                           1,157,600                         -         1,157,600
    Landfill Closure Costs                                         1,772,785                         -         1,772,785
  Due in More Than One Year:
    Bonds Payable                                                 23,711,867                         -        23,711,867
    Leases Payable                                                    184,500                        -           184,500
    Loans Payable                                                     554,563                        -           554,563
    Compensated Absences                                           4,560,006                         -         4,560,006
    Landfill Closure Costs                                         3,487,325                         -         3,487,325
Total Liabilities                                                 43,296,789                  453,121         43,749,910


Net Assets:
  Invested in Capital Assets, net of related debt                 24,510,941                1,663,333         26,174,274
  Restricted for:
    General Government                                             1,516,311                         -         1,516,311
    Criminal Justice                                                  888,733                        -           888,733
    Public Works                                                   5,424,134                         -         5,424,134
    Culture and Recreation                                            644,504                        -           644,504
    Physical Environment                                           1,375,952                         -         1,375,952
    Physical and Mental Health                                     4,169,669                         -         4,169,669
    Debt Service                                                      401,999                        -           401,999
  Unrestricted                                                   (18,819,046)                 166,508        (18,652,538)
Total Net Assets                                        $         20,113,197     $          1,829,841    $    21,943,038


The notes to the financial statements are an integral part of this statement.



                                                                 20
                                              JOSEPHINE COUNTY, OREGON


Statement of Activities
For the Year Ended June 30, 2004

                                                                                             Program Revenues
                                                                                                            Operating               Net
                                                                                      Charges for           Grants and           (Expense)
                 Functions / Programs                             Expenses             Services         Contributions            Revenue


Primary Government:
  Governmental Activities:
    General Government                                        $     7,562,145     $        1,696,813    $      4,436,784     $    (1,428,548)
    Public Safety                                                  16,035,512               748,900            5,901,862          (9,384,750)
    Public Works                                                    5,795,684               125,780            7,063,734           1,393,830
    Culture and Recreation                                          3,587,034              1,528,374            618,166           (1,440,494)
    Community Development                                           2,782,839              2,923,765             84,278              225,204
    Human Services                                                 27,043,154              2,119,446         22,802,888           (2,120,820)
    Interest on long-term debt                                      1,477,150                       -                    -        (1,477,150)
      Total Governmental Activities                           $    64,283,518     $        9,143,078    $    40,907,712      $ (14,232,728)


  Business-type Activities:
    Public Safety                                                       28,782               49,547                      -            20,765
    Culture and Recreation                                            581,488               230,904             504,964              154,380
      Total Business-type Activities                                  610,270               280,451             504,964              175,145


Total Primary Government                                      $    64,893,788     $        9,423,529    $    41,412,676      $ (14,057,583)



                                                                      Primary Government
                                                               Governmental       Business-type
                                                                  Activities           Activities             Total
Changes in Net Assets:
  Net (Expense) Revenue                                       $ (14,232,728)      $         175,145     $ (14,057,583)
General Revenues:
  Property Taxes                                                    3,759,885                       -          3,759,885
  Other taxes                                                         954,202                       -           954,202
  Grants and Contributions                                         11,388,960                       -        11,388,960
  Unrestricted Interest and Investment Earnings                       322,049                 8,005             330,054
Transfers - Internal Activities                                        (12,000)              12,000                      -


Change in Net Assets                                                2,180,368               195,150            2,375,518


Net Assets - July 1, 2003, as previously stated                    18,852,240              1,634,691         20,486,931
Prior Period Adjustment                                               (919,411)                     -           (919,411)


Net Assets - July 1, 2003, restated                                17,932,829              1,634,691         19,567,520
Net Assets - June 30, 2004                                    $    20,113,197     $        1,829,841    $    21,943,038



The notes to the financial statements are an integral part of this statement.




                                                                                      21
                                                                JOSEPHINE COUNTY, OREGON
                                                                    Governmental Funds

Balance Sheet
June 30, 2004
                                                                                                                                         Other              Total
                                                General                                                               Regional       Governmental       Governmental
                                                 Fund                 Public Works            Mental Health           Hospital           Funds              Funds
Assets
  Current Assets
    Cash & Investments                     $      4,133,920       $       4,514,346       $         245,694       $     2,730,913    $    7,275,078     $   18,899,951
    Taxes Receivable                                148,912                          -                        -                  -          76,819            225,731
    Other Receivables                             1,722,346                458,107                  583,008                73,729         1,279,820          4,117,010
    Due From Other Governments                       12,800                  16,139                           -           250,000            6,100            285,039
    Due From Other Funds                          1,453,261                154,917                  252,000                      -         701,427           2,561,605
    Inventories                                             -              715,421                            -                  -                  -         715,421
    Other Assets                                            -                        -                        -                  -          61,850             61,850
Total Assets                               $      7,471,239       $       5,858,930       $       1,080,702       $     3,054,642    $    9,401,094     $   26,866,607


Liabilities and Fund Balances
  Liabilities:
    Accounts Payable                       $      1,035,436       $        128,755        $         298,128       $       130,175    $     701,018      $    2,293,512
    Accrued Payroll Liabilities                     670,316                306,041                  388,819                      -         690,082           2,055,258
    Due To Other Governments                                -                        -                        -                  -               233                233
    Due To Other Funds                            2,439,735                          -                5,423               250,000          339,920           3,035,078
    Deferred Revenue                                830,933                          -                        -                  -         136,967            967,900
    Other Liabilities                                       -                        -                        -                  -           3,642               3,642
Total Liabilities                                 4,976,420                434,796                  692,370               380,175         1,871,862          8,355,623


Fund Balances:
  Reserved for:
    Participant Distributions                               -                        -                        -           250,000                   -         250,000
    Permanent Endowment                                     -                        -                        -                  -         367,410            367,410
    Debt Service                                            -                        -                        -                  -         349,265            349,265
  Unreserved, Reported in :
    General Fund                                  2,494,819                          -                        -                  -                  -        2,494,819
    Special Revenue Funds                                   -             5,424,134                 388,332             2,424,467         5,383,792         13,620,725
    Debt Service Funds                                      -                        -                        -                  -        1,138,761          1,138,761
    Capital Project Funds                                   -                        -                        -                  -         108,457            108,457
    Permanent Funds                                         -                        -                        -                  -         181,547            181,547
Total Fund Balances                               2,494,819               5,424,134                 388,332             2,674,467         7,529,232         18,510,984


Total Liabilities and Fund Balances        $      7,471,239       $       5,858,930       $       1,080,702       $     3,054,642    $    9,401,094     $   26,866,607




The notes to the financial statements are an integral part of this statement.




                                                                                         22
                                                           JOSEPHINE COUNTY, OREGON
                                                               Governmental Funds

Reconciliation of the Balance Sheet
to the Statement of Net Assets
as of June 30, 2004


Fund Balances - Governmental Funds                                                                                        $    18,510,984


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


           Capital Assets used in governmental activities are not financial resources and therefore
           are not reported in the governmental funds:
             Governmental capital assets                                                                    47,087,548
             less accumulated depreciation                                                                 (11,072,648)        36,014,900


           Other long-term assets are not available to pay current period expenditures and, therefore,
           are deferred in the governmental funds:
             Property Taxes                                                                                    225,731
             Assessments                                                                                        31,000            256,731


           Long-term liabilities, including bonds payable, are not due and payable in the current period
           and therefore are not reported in the governmental funds.
             Bonds Payable                                                                                 (24,661,867)
             Leases Payable                                                                                   (329,072)
             Loand Payable                                                                                    (590,415)
             Accrued Interest Payable                                                                          (91,440)
             Compensated Absences                                                                           (5,717,606)
             Lanfill Closure Costs                                                                          (5,260,110)       (36,650,510)


           Internal service funds are used by management to cahrge the costs of certain activities
           to individual funds. Net assets of the internal service funds that are reported with
           governmental activities.                                                                                             1,981,092


Net Assets of Governmental Activities                                                                                     $    20,113,197



The notes to the financial statements are an integral part of this statement.




                                                                                        23
                                                               JOSEPHINE COUNTY, OREGON
                                                                   Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2004

                                                                                                                                          Other             Total
                                                  General                                                              Regional       Governmental      Governmental
                                                   Fund               Public Works             Mental Health           Hospital           Funds             Funds
Revenues:
 Taxes                                        $      3,256,686       $      4,370,080          $       59,557      $              -   $     1,414,271   $     9,100,594
 Fees and Charges for Services                       4,457,434                  100,438               577,533                     -         3,182,850         8,318,255
 Interfund Charges for Services                          22,250                 347,649                        -                  -         2,918,980         3,288,879
 Intergovernmental Revenues                         14,906,489              1,866,588               8,377,044             1,662,549        17,701,876        44,514,546
 Other Revenues                                      1,873,791                  767,625                39,464               429,528          601,647          3,712,055
Total Revenues                                      24,516,650              7,452,380               9,053,598             2,092,077        25,819,624        68,934,329


Expenditures:
 General Government                                  3,392,900                        -                        -                  -         3,641,706         7,034,606
 Public Safety                                      14,518,031                        -                        -                  -         1,920,355        16,438,386
 Public Works                                                  -            5,970,500                          -                  -          287,826          6,258,326
 Culture & Recreation                                          -                      -                        -                  -         3,567,235         3,567,235
 Community Development                               2,074,778                        -                        -                  -          842,985          2,917,763
 Human Services                                      3,826,200                        -            10,425,944             1,204,669        12,133,001        27,589,814
 Debt Service - Principle                                      -                      -                        -                  -         1,082,142         1,082,142
 Debt Service - Interest                                       -                      -                        -                  -         1,048,909         1,048,909
Total Expenditures                                  23,811,909              5,970,500              10,425,944             1,204,669        24,524,159        65,937,181


Excess of Revenues Over (Under)
 Expenditures                                          704,741              1,481,880              (1,372,346)              887,408         1,295,465         2,997,148


Other Financing Sources (Uses):
 Transfers In                                        1,043,235                  446,992               548,244                     -         2,241,510         4,279,981
 Transfers Out                                      (1,351,120)                 (5,750)              (729,645)            (250,000)       (1,528,958)       (3,865,473)
Total Other Financing Sources (Uses)                  (307,885)                 441,242              (181,401)            (250,000)          712,552           414,508


Net Change in Fund Balance                             396,856              1,923,122              (1,553,747)              637,408         2,008,017         3,411,656


Fund Balances - July 1, 2003                         2,097,963              3,501,012               1,942,079             2,037,059         5,521,215        15,099,328
Fund Balances - June 30, 2004                 $      2,494,819       $      5,424,134          $      388,332      $      2,674,467   $     7,529,232   $    18,510,984



The notes to the financial statements are an integral part of this statement.




                                                                                          24
                                                           JOSEPHINE COUNTY, OREGON
                                                               Governmental Funds

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, 2004


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


           Net change in fund balances - total governmental funds                                                          $   3,411,656


           Governmental funds report capital outlay as expenditures. However, in the statement of
           activities the cost of those assets is allocated over their estimated useful lives and reported
           as depreciation expense. This is the amount by which capital outlay exceeded depreciation
           in the current period.
             Expenditures for capital assets                                                                    171,590
             less current year depreciation                                                                  (1,140,093)       (968,503)


           Revenues in the statement of activities that do not provide current financial resources
           are not reported as revenues in the funds.
             Change in deferred property tax revenues                                                           (16,427)
             Change in deferred assessments                                                                     (35,926)        (52,353)


           The issuance of long-term debt (e.g. bonds, leases) 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
             Long-term principal repaid                                                                       1,106,824
             Amortization of deferred interest bonds                                                          (302,551)         804,273


           Some expenses reported in the statement of activities do not require the use of current
           financial resources and , therefore, are not reported as expenditures in governmental funds.
             Compensated absences                                                                             (888,011)
             Landfill closure costs                                                                              99,495
             Accrued interest on debt                                                                            19,655        (768,861)


           Adjustment to reflect the consolidation of internal service funds to governmental funds                             (245,844)


Change in net assets of governmental activities                                                                            $   2,180,368



The notes to the financial statements are an integral part of this statement.




                                                                                        25
                                                                JOSEPHINE COUNTY, OREGON
                                                                     Proprietary Funds

Statement of Net Assets
June 30, 2004

                                                                            Business-Type Activities - Enterprise Funds                       Governmental
                                                                  Grants Pass      Nonmajor                                                     Activities
                                                                    Airport       Enterprise           Total            Total                    Internal
                                                                     Fund           Funds          Current Year       Prior Year              Service Fund

Assets:
  Current Assets:
    Cash & Investments                                           $         124,314      $      77,497     $     201,811     $     205,078     $    1,922,418
    Accounts Receivable                                                    430,774              7,942           438,716             8,428           206,129
    Due From Other Funds                                                            -                -                 -            3,000           414,678
    Inventories                                                                     -                -                 -                 -           40,111
Total Current Assets                                                       555,088             85,439           640,527           216,506          2,583,336


  Capital Assets:
     Land                                                                  491,764            120,050           611,814           611,814                  -
     Buildings and Improvements                                          1,383,597          1,775,980         3,159,577         3,159,576                  -
     Equipment                                                                  8,656           4,226            12,882            12,882          3,463,081
     Construction in Progress                                              330,615                   -          330,615                  -                 -
     Less - Accumulated Depreciation                                      (984,691)         (1,466,864)       (2,451,555)       (2,303,057)       (2,562,553)
Total Capital Assets, net of Accumulated Depreciation                    1,229,941            433,392         1,663,333         1,481,215           900,528


Total Assets                                                             1,785,029            518,831         2,303,860         1,697,721          3,483,864


Liabilities:
  Current Liabilities:
    Accounts Payable                                                       446,191                926           447,117            29,736           643,882
    Accrued Payroll Liabilities                                                 4,204           1,800             6,004             9,083           250,721
    Claims Payable                                                                  -                -                 -                 -          527,800
    Other Liabilities                                                               -                -                 -            2,780                  -
    Due to Other Funds                                                      18,050                   -           18,050            18,073            83,217
Total Liabilities                                                          468,445              2,726           471,171            59,672          1,505,620


Net Assets:
  Invested in Capital Assets                                             1,229,941            433,392         1,663,333         1,481,215           900,528
  Unrestricted                                                              86,643             82,713           169,356           156,834          1,077,716
Total Net Assets                                                 $       1,316,584      $     516,105         1,832,689     $   1,638,049     $    1,978,244


Adjustment to reflect the consolidation of internal
  service fund activities related to enterprise funds                                                             (2,848)


Net Assets of business-type activities                                                                    $   1,829,841



The notes to the financial statements are an integral part of this statement.




                                                                                   26
                                                               JOSEPHINE COUNTY, OREGON
                                                                    Proprietary Funds

Statement of Revenues, Expenses, and Changes in Fund Net Assets
For the Year Ended June 30, 2004


                                                                           Business-Type Activities - Enterprise Funds                   Governmental
                                                                 Grants Pass     Nonmajor                                                  Activities
                                                                   Airport       Enterprise          Total             Total                Internal
                                                                    Fund           Funds         Current Year       Prior Year           Service Fund
Revenues:
 Fees and Charges for Services                                   $        208,552       $    71,899    $    280,451     $    446,394     $    1,243,737
 Interfund Charges for Services                                                     -             -                -                -        10,537,540
 Other Revenues                                                                     -             -                -          21,160           856,283
Total Revenues                                                            208,552            71,899         280,451          467,554         12,637,560


Expenditures:
 Personal Services                                                         61,139            33,725          94,864          119,642          8,182,721
 Materials & Services                                                     295,737            42,989         338,726          272,638          3,367,717
 Depreciation                                                              68,052            80,447         148,499          142,318           348,353
 Interfund Payment for Services                                            16,723            11,968          28,691           24,122           579,635
Total Expenditures                                                        441,651           169,129         610,780          558,720         12,478,426


Operating Income (Loss)                                                  (233,099)          (97,230)        (330,329)         (91,166)         159,134


Nonoperating Revenues (Expenses)
 Intergovernmental revenues                                               174,349                 -         174,349          151,749                  -
 Interest Income                                                                6,818         1,187           8,005            2,983            22,041
Total Nonoperating Revenues (Expenses)                                    181,167             1,187         182,354          154,732            22,041


Net Income (Loss) Before Contributions and Transfers                       (51,932)         (96,043)        (147,975)         63,566           181,175


 Capital grant contributions                                              330,615                 -         330,615                 -                 -
 Capital assets transferred to governmental funds                                   -             -                -                -          (719,276)
 Transfers In                                                                       -        12,000          12,000           12,000           233,484
 Transfers Out                                                                      -             -                -                -          (659,992)


Change in Net Assets                                                      278,683           (84,043)        194,640           75,566           (964,609)


Total Net Assets - July 1, 2003                                         1,037,901           600,148        1,638,049        1,562,483         2,942,853
Total Net Assets - June 30, 2004                                 $      1,316,584       $   516,105        1,832,689    $   1,638,049    $    1,978,244


Adjustment to reflect the consolidation of internal
 service fund activities related to enterprise funds                                                          (2,848)


Net Assets of business-type activities                                                                 $   1,829,841



The notes to the financial statements are an integral part of this statement.




                                                                                   27
                                                              JOSEPHINE COUNTY, OREGON
                                                                   Proprietary Funds

Statement of Cash Flows
for the year ended June 30, 2004                                            Business-Type Activities - Enterprise Funds                 Governmental
                                                                   Grants Pass Nonmajor                                                   Activities
                                                                     Airport     Enterprise          Total            Total                Internal
                                                                      Fund         Funds        Current Year        Prior Year          Service Fund
Cash Flows from Operating Activities
 Cash received from users                                          $      213,079        $   64,945     $   278,024     $   611,586     $   11,852,213
 Cash received from other sources                                                   -              -               -         21,160           856,283
 Cash paid to suppliers                                                  (107,961)           (54,513)       (162,474)       (269,320)       (4,027,179)
 Cash paid to employees                                                    (63,884)          (34,059)        (97,943)       (119,470)       (7,816,804)
Net cash provided by operating activities                                  41,234            (23,627)        17,607         243,956           864,513

Cash Flows from Non-capital Financing Activities
 Transfers made                                                                     -              -               -               -          (400,595)
 Transfers received                                                                 -        15,000          15,000          12,000           233,484
 Intergovernmental Receipts                                                74,341                  -         74,341          15,239                  -
Net cash provided by (used in) noncapital
 financing activities                                                      74,341            15,000          89,341          27,239           (167,111)

Cash Flows from Capital Financing Activities
 Purchase of capital assets                                              (118,220)                 -        (118,220)       (169,913)         (220,826)
Net cash provided by capital and related
 financing activities                                                    (118,220)                 -        (118,220)       (169,913)         (220,826)

Cash Flows from Investing Activities
 Interest income received                                                       6,818         1,187           8,005           2,983            22,041
Net cash provided by investing activities                                       6,818         1,187           8,005           2,983            22,041

Net Increase (Decrease) in Cash and Cash Equivalents                            4,173         (7,440)         (3,267)       104,265           498,617

Cash and Cash Equivalents - July 1, 2003                                  120,141            84,937         205,078         100,813          1,423,801
Cash and Cash Equivalents - June 30, 2004                          $      124,314        $   77,497     $   201,811     $   205,078     $    1,922,418


Reconciliation of Net Operating Income (Loss)
to Net Cash Provided by Operating Activities
Operating Income (Loss)                                            $     (233,099)       $   (97,230)   $   (330,329)   $    60,583     $     159,134
Adjustments to reconcile operating income (loss) to
 net cash provided (used) by operating activities:
   Depreciation                                                            68,052            80,447         148,499         142,318           348,353
   (Increase) Decrease in accounts receivable                                   7,289         (6,954)           335          10,343           (159,317)
   (Increase) Decrease in prepayments                                               -              -               -               -           12,787
   (Increase) Decrease in due from other funds                                      -              -               -          3,100           232,753
   (Increase) Decrease in inventories                                               -              -               -               -            (8,208)
   Increase (Decrease) in accounts payable                                204,522               462         204,984          29,486           442,833
   Increase (Decrease) in payroll payable                                   (2,745)            (334)          (3,079)           172             9,959
   Increase (Decrease) in due to other funds                                      (23)             -             (23)         (2,046)         (164,127)
   Increase (Decrease) in due to other governments                                  -              -               -               -           (23,716)
   Increase (Decrease) in deposits payable                                  (2,762)              (18)         (2,780)              -            (2,500)
   Increase (Decrease) in claims payable                                            -              -               -               -           16,562
     Total adjustments                                                    274,333            73,603         347,936         183,373           705,379

Net cash provided by operating activities                          $       41,234        $   (23,627)   $    17,607     $   243,956     $     864,513


Noncash Investing, Capital and Financing
Activities
Capital assets transferred to governmental funds                                                                                        $     (719,276)
Noncash transfers out                                                                                                                         (259,397)

Total noncash investing, capital and financing activities                                                                               $     (978,673)


The notes to the financial statements are an integral part of this statement.




                                                                                   28
                    JOSEPHINE COUNTY, OREGON
                          Fiduciary Funds

Statement of Fiduciary Net Assets
June 30, 2004


Assets:
    Cash & Investments                                                    $     6,213,202
    Taxes Receivable                                                            2,063,490
    Accounts Receivable                                                          596,091
    Due From Other Governments                                                    69,242
    Due From Other Funds                                                         170,062
    Prepaid Expenses                                                              17,375
Total Assets                                                              $     9,129,462


Liabilities:
    Accounts Payable                                                      $      711,985
    Due To Other Governments                                                    2,714,043
    Due To Other Funds                                                            10,000
    Money Held for Others                                                       5,693,435
Total Liabilities                                                         $     9,129,462



The notes to the financial statements are an integral part of this statement.




                                                  29
                                    JOSEPHINE COUNTY, OREGON
                                       Notes to Financial Statements
                                     for the Year Ended June 30, 2004

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The financial statements of Josephine County have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as prescribed by the Governmental Accounting
Standards Board (GASB). The significant accounting policies of the county are described below.

   A. Reporting Entity:

       Josephine County was formed under the predecessor chapter to Oregon Revised Statues (ORS) 202, and its
       present “home rule” charter, effective January 5, 1981, was adopted under Article VI, Section 10 of the
       Oregon State Constitution. Its boundaries are established by ORS 201.150. A Board of Commissioners
       consisting of three independently elected members governs the County.

       Blended Component Units – As required by generally accepted accounting principles, these financial
       statements present the County and its blended component unit, 4H-Extension, for which the County is
       considered to be financially accountable.

       A blended component unit, although a legally separate entity is, in substance, part of the County’s
       operations and so data from it is combined with data of the County. A board comprised of the County’s
       Commissioners governs this blended component. The 4H Extension is included in the other governmental
       funds and, like the County, has a June 30 fiscal year-end.

   B. Government-wide and Fund Financial Statements:

       Government-wide Financial Statements – The Statement of Net Assets and Statement of Activities report
       information all of the non-fiduciary activities of the County and its component unit. 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. All significant
       interfund transactions have been eliminated from these statements.

       The Statement of Activities demonstrates the extent to which direct expenses of the County’s
       functions/programs listed in the statement (such as General Government, Public Safety, Human Services
       etc.) are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
       function or program. Program revenues include 1) charges to customers or applicants who purchase, use,
       or directly benefit from goods, services or privileges provided by a given function or program and 2) grants
       and intergovernmental revenues that are restricted to meeting the operational or capital requirements of a
       particular function or program. Taxes and other items which are not specific program revenues are
       reported as general revenues in the Statement of activities.

       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 non-major funds.

   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.




                                                         30
                                    JOSEPHINE COUNTY, OREGON
                                       Notes to Financial Statements
                                     for the Year Ended June 30, 2004

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)


   Public Works Fund – The expenditures of this 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. Major sources of revenue include motor fuel taxes and
   forest service receipts.

   Mental Health Fund – This fund accounts for the main mental health operations and programs. Resources of
   this fund are primarily from federal and state grants and from alcohol tax. Expenditures are for mental health
   care activities.

   Regional Hospital Fund – This fund accounts for moneys received for the provision of mental health beds for
   patients that require hospital commitment. Resources are received from the State of Oregon.

   The County reports the following major enterprise funds:

   Grants Pass Airport Fund – This fund accounts for the operations of the county airport located in Merlin,
   Oregon. User fees are the primary source of revenue. Expenditures are for the administration and maintenance
   of the airport buildings and grounds.

   Additionally the County reports the following fund types

   Proprietary Funds – Account for the operations of predominantly self-supporting activities. Enterprise funds
   account for services rendered to the public on a user charge basis, and internal service funds account for
   services provided to other departments or agencies of the County or other governments, on a cost
   reimbursement basis.

   Agency Funds – Account for resources received and held by the County in a fiduciary capacity.

C. 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 accrual basis of accounting. Revenues are recorded when earned and expenses are
   recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Property taxes
   are 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 imposed by the provider have
   been satisfied.

   The County applies all applicable GASB pronouncements, as well as Financial Accounting Standards Board
   (FASB) pronouncements and Accounting Principles Board (APB) opinions, issued on or before November 30,
   1989, unless those pronouncements conflict with or contradict GASB pronouncements. It does not apply FASB
   guidance issued subsequent to November 30, 1989 unless specifically adopted by the GASB.

   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. Revenues are recognized
   as soon as they are both measurable and available. Revenues are considered to be available when they are
   collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this
   purpose, the County generally considers revenues to be available if they are collected within 60 days of the end
   of the current fiscal period. Federal and state grants (to the extent that eligible expenditures are incurred),
   licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and
   so have been recognized as revenues within the current fiscal period. Expenditures are generally recorded when
   a liability is incurred, as under accrual accounting, However, debt service expenditures as well as expenditures
   related to compensated absences and claims and judgments are recorded only when the payment is due.




                                                        31
                                      JOSEPHINE COUNTY, OREGON
                                         Notes to Financial Statements
                                       for the Year Ended June 30, 2004

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)

    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 restricted resources to such programs, followed by
    unrestricted resources.

    Agency Funds – Agency funds only report assets and liabilities and do not have a measurement focus.

D. Investments:

    Investments included in cash and investments are reported at fair value. The County invests primarily in the
    State of Oregon Local Government Investment Pool and U.S. Government and Agencies Securities. Oregon
    Revised Statues authorize all County investments. Interest earned from pooled investments is allocated based
    upon a fund’s portion of the total average daily investment balance. The County maintains depository insurance
    under Federal depository insurance coverage and state and financial institution collateral pools for its cash
    deposits and investments, except for the Local Government Investment Pool and U.S. government and agencies
    securities which are exempt from statues requiring insurance.

E. Receivables:

    The County levies, collects, and distributes property taxes for all taxing districts within its boundaries. Property
    taxes attach as an enforceable lien on property as of July 1. All taxes are levied as of the lien date and are
    payable in three installments on November 15, February 15 and May 15. Property taxes receivable in
    governmental funds represent only the County’s portion of uncollected property taxes. They are delinquent and
    are offset by deferred revenue and, accordingly, have not been recorded as revenue.

    For the year ended June 30, 2004, the County’s tax levy did not exceed the Oregon constitutional limitation.
    All other districts’ property taxes receivable is reported in the Agency Funds.

    Special Assessments are recognized as receivable at the time property owners are assessed for property
    improvements. Delinquent receivables are those special assessments remaining unpaid after the date on which a
    penalty for non-payment is attached.

    “Bancrofted” assessments occur when installments are two payments (one year) late. Such assessments
    receivable are offset by a deferred revenue account and, accordingly, have not been recorded as revenue.

    Accounts and other receivables in governmental and proprietary fund types are recorded as revenue when
    earned, except for timber sales, which are recorded as revenue when the logging occurs.

F. Inventories:

    Governmental Funds – Inventory of parts and supplies is held by the Public Works Department and is valued at
    average cost. Inventory is accounted for under the consumption method, whereby expenditures are recorded
    when the inventory is conusumed.

G. Capital Assets:

    Capital assets, which include property, plant, and equipment are reported in the applicable governmental or
    business-type activities columns in the government-wide financial statements. Capital assets are defined by the
    government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess
    of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
    Donated capital assets are recorded at estimated fair market value at the date of donation. Major outlays for
    capital assets and improvements are capitalized as projects are constructed. The costs of normal maintenance
    and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.




                                                          32
                                       JOSEPHINE COUNTY, OREGON
                                          Notes to Financial Statements
                                        for the Year Ended June 30, 2004

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)

     The County has elected to delay the retroactive reporting of infrastructure assets as allowed by GASB 34.
     There were no infrastructure additions during the year.

     Capital assets are depreciated using the straight line method over the following estimated useful lives:

                   Assets                                                                      Years

         Buildings and improvements                                                              35
         Vehicles and machinery                                                                5 to 15
         Office furniture and equipment                                                        3 to 10
         Computer equipment                                                                       3

H. Landfill Closure and Post-closure Care Liabilities:

     The County accrues for landfill closure and post-closure liabilities over the useful life the related landfills.

I.   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 5.

J.   Compensated Absences:

     Accumulated vested compensated absences are accrued in the government-wide financial statements as earned
     by employees.

     The County established the Payroll Liability Reserve Debt Service Fund for the purpose of accumulating
     resources to pay employees for time management leave, vacation leave, and sick leave. Resources are provided
     by other County funds. Unused management leave and vacation leave is paid upon termination according to
     applicable union or non-union rules, and is recorded as an expenditure at time of payment. Sick pay, which
     does not vest, is recorded as an expenditure when it is taken.

K. Fund Equity:

     In the fund financial statements, governmental funds report reservations of fund balance for amounts that are
     not available for appropriation or are legally restricted by outside parties for use for a specific purpose.

L. 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.

M. Cash Flows Statement:

     For purposes of the statement of cash flows, the proprietary fund types consider all highly liquid investments
     with a maturity of three months or less when purchased to be cash equivalents. Accordingly, all County
     investments are considered to be cash equivalents.




                                                            33
                                     JOSEPHINE COUNTY, OREGON
                                        Notes to Financial Statements
                                      for the Year Ended June 30, 2004

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)

N. 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, and are recorded as revenue when received.

O. Comparative Data/Reclassifications:

    Comparative total data for the prior year have been presented only for the 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. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent
    with the current year’s presentations.


NOTE 2 – CASH AND INVESTMENTS:

    The County maintains an internal cash and investments pool that is available for use by all funds. In addition,
    cash and investments are separately held by some of the County’s funds.

    Cash and investments are comprised of the following at June 30, 2004:

              Cash on Hand                                                      $        164,726
              Deposits with Financial Institutions                                      9,014,964
              Investments                                                              18,057,692
              Total Cash and Investments                                         $     27,237,382


    Cash and investments consist of $21,024,180 shown on the government-wide Statement of Net Assets and
    $6,213,202 shown on the Statement of Fiduciary Net Assets.

    Deposits with Financial Institutions – Deposits with financial institutions are bank demand deposits and
    certificates of deposit. The total bank balances, as shown on the bank’s records at June 30, 2004, are
    $9,773,276. Of these deposits, $487,107 are covered by federal depository insurance and $9,286,169 are
    collateralized by certificates of participation. Oregon laws require municipal corporations to obtain certificates
    of participation issued by a pool manager for amounts on deposit in excess of federal depository insurance. The
    County held certificates totaling $65,200,000 at June 30, 2004. Oregon Revised Statues require the depository
    institution to maintain on depository with a collateral pool manger securities having a value of not less than
    35% of the outstanding certificates of participation issued by the pool manager. Deposits in excess of federal
    depository insurance, even to the extent collateralized by certificates of participation are considered
    uncollateralized by GASB Statement No. 3.

    Investments – Oregon Revised Statues, Chapter 294, authorize the County to invest in obligations of the U.S.
    Treasury, U.S. Government agencies and instrumentalities, bankers’ acceptances guaranteed by an Oregon
    financial institution, repurchase agreements, State of Oregon Local Government Investment Pool and various
    interest bearing bonds of Oregon municipalities. The County is authorized to enter into reverse repurchase
    agreements. In addition the County’s investments are governed by a written Investment Policy. The policy
    specifies the County’s investment objectives, required diversification, certain limitations and reporting
    requirements.




                                                         34
                                             JOSEPHINE COUNTY, OREGON
                                                Notes to Financial Statements
                                              for the Year Ended June 30, 2004

NOTE 2 – CASH AND INVESTMENTS: (Continued)

  The County’s investments are categorized below to give an indication of the level of risk assumed by the
  County on June 30, 2004. The risk categories for investments are as follows:

      Category 1 – Includes investments that are insured or registered or for which the securities are held by the
      County or its agent in the County’s name.

      Category 2 – Includes investments that are uninsured and unregistered for which the securities are held by
      the trust department of the financial institution selling the security to the County in the County’s name.

      Category 3 – Includes investments that are uninsured and unregistered for which the securities are held by
      the financial institution selling the security to the County, or by its trust department or agent, but are not in
      the County’s name.

  Summary of Investments

                                                Categories                                   Carrying              Fair
                                     1                 2                   3                 Amount                Value


      U.S. Government and
      Agencies Securities        $       -       $    4,615,480       $        -              $        4,615,480   $      4,615,480




      Local Government Investment Pool                                                                13,442,212       13,442,212


       Total Investments                                                                      $       18,057,692   $ 18,057,692


  The investment in the State of Oregon Local Government Investment Pool (LGIP) is an open-ended, no-load
  diversified portfolio created under Oregon Revised Statues 294.805 to 294.895. The LGIP is administered by
  the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short Term Board. The
  fair value of the County’s position in the pool is the same as the value of the pool shares.


NOTE 3 – INTERFUND RECEIVABLES AND PAYABLES:

  The following is a listing of interfund receivables and payables by fund at June 30, 2004:

                                                     Receivable                        Payable
      Governmental Funds:
        General Fund                                 $ 1,453,261                   $ 2,439,735
        Public Works Fund                                  154,917                                -
        Mental Health Fund                                 252,000                          5,423
        Regional Hospital Fund                                    -                       250,000
        Nonmajor governmental funds                        701,427                        339,920


      Proprietary Funds:
        Grants Pass Airport Fund                                  -                        18,050
        Internal service funds                             414,678                         83,217


      Agency Funds:                                        170,062                         10,000
                                                     $ 3,146,345                   $     3,146,345




                                                                      35
                                                    JOSEPHINE COUNTY, OREGON
                                                       Notes to Financial Statements
                                                     for the Year Ended June 30, 2004

NOTE 3 – INTERFUND RECEIVABLES AND PAYABLES: (Continued)

   Within these interfund receivables and payables are interfund loans that are payable to the General Fund
   totaling $99,380. The loans receivable for the General Fund consist of $18,050 from enterprise funds and
   $81,330 from nonmajor governmental funds. All interfund loans are due in the 2004-05 fiscal year. All other
   interfund balances resulted from the time lag between the dates that interfund goods and services are provided
   or reimbursable expenditures occur and when the related payments between funds are made.

NOTE 4 – CAPITAL ASSETS:

   Capital asset activity for the year ended June 30, 2004 was as follows:
                                                                   Restated
                                                                   Beginning                                            Ending
                                                                   Balances         Increases         Decreases        Balances
  Governmental Activities:
  Capital Assets not being depreciated:
   Land                                                        $ 9,599,032      $       59,187    $          -     $ 9,658,219
   Construction in Progress                                                 -            5,506               -             5,506


     Total Capital Assets not being depreciated                     9,599,032           64,693               -          9,663,725


  Capital Assets being depreciated:
   Building and Improvements                                       31,407,296               -                -         31,407,296
   Equipment                                                        9,160,443         327,723             8,558         9,479,608


     Total Capital Assets being depreciated:                       40,567,739         327,723             8,558        40,886,904


   Less Accumulated Depreciation for:
     Buildings and Improvements                                     4,890,571         903,831                -          5,794,402
     Equipment                                                      7,264,742         584,615             8,558         7,840,799


     Total Accumulated Depreciation                                12,155,313        1,488,446            8,558        13,635,201


     Total Capital Assets being depreciated, net                   28,412,426       (1,160,723)              -         27,251,703
     Governmental Activities Capital Assets, net               $ 38,011,458     $(1,096,030)      $          -     $ 36,915,428


  Business-type Activities:
  Capital Assets not being depreciated:
   Land                                                        $     611,814    $           -     $          -     $     611,814
   Construction in Progress                                                 -         330,615                -           330,615


   Total Capital Assets not being depreciated                        611,814          330,615                -           942,429


  Capital Assets being depreciated:
   Building and Improvements                                        3,159,577               -                -          3,159,577
   Equipment                                                          12,882                -                -            12,882


   Total Capital Assets being depreciated                           3,172,459               -                -          3,172,459


   Less Accumulated Depreciation for:
     Buildings and Improvements                                     2,290,882         148,395              (191)        2,439,468
     Equipment                                                        12,175               103             191            12,087


     Total Accumulated Depreciation                                 2,303,057         148,498                -          2,451,555


     Total Capital Assets being depreciated, net                     869,402         (148,498)               -           720,904
     Business-type Activities Capital Assets, net              $ 1,481,216      $     182,117     $          -     $ 1,663,333




                                                                       36
                                                          JOSEPHINE COUNTY, OREGON
                                                             Notes to Financial Statements
                                                           for the Year Ended June 30, 2004

             NOTE 4 – CAPITAL ASSETS: (Continued)

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

              Governmental Activities:


                Public Safety                                                            $     493,420
                Culture and Recreation                                                         146,708
                General Government                                                             148,189
                Human Services                                                                 105,593
                Public Works                                                                   246,183
                Internal Service Funds                                                         348,353


                Total Depreciation Expense, Governmental Activities                      $ 1,488,446



              Business-type Activities:


                Grants Pass Airport                                                      $      68,051
                Illinois Valley Airport                                                         80,447


                Total Depreciation Expense, Business-type Activities                     $     148,498



             NOTE 5 – LONG TERM OBLIGATIONS:

                   Changes in long-term obligations for the year ended June 30, 2004 are as follows:
                                                                    Balance                                                         Balance       Due Within
                                                                  July 1, 2003               Additions           Deletions        June 30, 2004       One Year
General Government Activities:
 Bonds Payable:
     Adult Jail Facility Bond                                 $        12,070,000        $               -   $     585,000    $      11,485,000   $      610,000
     PERS Bond                                                         13,179,316               302,551            305,000           13,176,867          340,000
 Loans Payable:
     OR Dept of Energy Loan                                               26,970                         -          19,009                7,961            7,598
     OHCSD Secured Treatment Facility Loan                               387,236                         -          13,797              373,439           14,040
     Community Correction Building Loan                                  139,211                         -          11,657              127,554           12,500
     North Valley Industrial Park                                         26,148                145,345            171,493                    -              -
     Crestview Loop                                                       83,101                         -            1,640              81,461            1,714
 Leases Payable:
     Mental Health, Public Health, A&T System                            369,000                         -          92,250              276,750           92,250
     Finance and Recording System                                        104,645                         -          52,323               52,322           52,322
Compensated Absences Payable                                            4,829,595             2,096,930           1,208,919           5,717,606        1,157,600
Solid Waste Facilities Closure and
        Monitoring Cost Payable                                         5,359,605                        -          99,495            5,260,110        1,772,785
Governmental Activities Long-term Liabilities                 $        36,574,827        $ 2,544,826         $ 2,560,583      $      36,559,070   $ 4,060,809




                                                                                    37
                                    JOSEPHINE COUNTY, OREGON
                                       Notes to Financial Statements
                                     for the Year Ended June 30, 2004


NOTE 5 – LONG TERM OBLIGATIONS: (Continued)

  Bonds Payable:

  Adult Jail Facility Bond – In 2000, after Josephine County voters approved levies for the construction of an
  adult jail facility, the County issued $13,940,000 in Bonds for the construction of the facility. Interest rates on
  the bonds range from 4.20% to 4.875%. Payments are made annually with the final payment of $1,137,894 due
  on June 1, 2018.

  Future obligations of the Adult Jail Facility Bond are as follows:

          Fiscal                                  Principal                                June 30, 2004
         Year of            Outstanding               Paid             Outstanding                 Future
         Maturity           July 1, 2003         During Year           June 30, 2004           Interest

        2003-04              $     585,000        $     585,000          $             -       $            -
        2004-05                    610,000                     -              610,000                522,945
        2005-06                    635,000                     -              635,000                496,715
        2006-07                    665,000                     -              665,000                469,728
        2007-08                    690,000                     -              690,000                441,465
        2008-09                    720,000                     -              720,000                412,485
        2009-10                    755,000                     -              755,000                382,245
        2010-11                    785,000                     -              785,000                349,403
        2011-12                    820,000                     -              820,000                314,470
        2012-13                    860,000                     -              860,000                277,570
        2013-14                    900,000                     -              900,000                237,580
        2014-15                    940,000                     -              940,000                195,280
        2015-16                    985,000                     -              985,000                150,630
        2016-17                  1,035,000                     -             1,035,000               103,350
        2017-18                  1,085,000                     -             1,085,000                52,894

                             $ 12,070,000         $     585,000         $ 11,485,000       $        4,406,760




                                                         38
                                     JOSEPHINE COUNTY, OREGON
                                        Notes to Financial Statements
                                      for the Year Ended June 30, 2004

NOTE 5 – LONG TERM OBLIGATIONS: (Continued)

  PERS Bond – In fiscal year 2001-2002 the County issued $12,894,947 of Limited Tax Pension Obligation
  Revenue Bonds and transferred the net proceeds to the Sate of Oregon Public Employees Retirement System to
  cover the County’s unfunded actuarial liability at that time. Principal payments are due annually through June
  1, 2024, and interest is payable in December and June of each year with rates ranging from 4.8% to 6.7%.
  Obligations maturing through June 1, 2018 are deferred interest obligations and are shown at matured value.

  Future principal and interest maturities are as follows:

                                                    Principal                                  June 30,
      Fiscal                                        Matured                                      2004
     Year of                Outstanding             and Paid           Outstanding              Future
     Maturity               July 1, 2003           During Year         June 30, 2004           Interest



    2003-04                  $      305,000        $         305,000     $            -        $          -
    2004-05                         340,000                        -            340,000             495,594
    2005-06                         375,000                        -            375,000             495,594
    2006-07                         410,000                        -            410,000             495,594
    2007-08                         450,000                        -            450,000             495,594
    2008-09                         490,000                        -            490,000             495,594
    2009-10                         530,000                        -            530,000             495,594
    2010-11                         575,000                        -            575,000             495,594
    2011-12                         620,000                        -            620,000             495,594
    2012-13                         670,000                        -            670,000             495,594
    2013-14                         720,000                        -            720,000             495,594
    2014-15                         770,000                        -            770,000             495,594
    2015-16                         825,000                        -            825,000             495,594
    2016-17                         880,000                        -            880,000             495,594
    2017-18                         940,000                        -            940,000             495,594
    2018-19                       1,005,000                        -          1,005,000             487,938
    2019-20                       1,130,000                        -          1,130,000             426,381
    2020-21                       1,265,000                        -          1,265,000             357,169
    2021-22                       1,415,000                        -          1,415,000             279,687
    2022-23                       1,575,000                        -          1,575,000             191,250
    2023-24                       1,485,000                        -          1,485,000              92,812

                                 16,775,000                  305,000         16,470,000            8,773,553
    Less:
    Deferred Interest            (3,595,684)             (302,551)           (3,293,133)                   -

                             $ 13,179,316          $           2,449    $    13,176,867    $       8,773,553




                                                        39
                                    JOSEPHINE COUNTY, OREGON
                                       Notes to Financial Statements
                                     for the Year Ended June 30, 2004

NOTE 5 – LONG TERM OBLIGATIONS: (Continued)

  Loans Payable:

  Energy Loan – The State of Oregon Department of Energy issued three loans for energy improvements to three
  County facilities. They are payable in monthly installments totaling $1,707 including interest that ranges from
  7.61% to 8.0% per annum.

  The future maturities for the years ending June 30 are as follows:

           Fiscal                                     Principal                               June 30, 2004
          Year of             Outstanding              Paid                Outstanding           Future
          Maturity            July 1, 2003          During Year            June 30, 2004        Interest

          2003-04             $      19,009         $     19,009           $            -     $             -
          2004-05                     7,598                    -                    7,598                 247
          2005-06                       363                    -                      363                  12

                              $      26,970         $     19,009           $        7,961    $            259

  OHCSD Secured Treatment Facility Loan – Obtained for the Hugo Hills Secured Treatment Facility, the loan is
  payable in monthly installments of $1,705 including interest at 1.75% per annum. The property is collateral for
  the loan. Annual requirement to repay OHCSD loan are as follows:

        Fiscal                                   Principal                                   June 30, 2004
       Year of           Outstanding               Paid                Outstanding              Future
       Maturity          July 1, 2003           During Year            June 30, 2004           Interest

       2003-04            $        13,797       $       13,797         $              -       $             -
       2004-05                     14,040                    -                   14,040                 6,423
       2005-06                     14,288                    -                   14,288                 6,175
       2006-07                     14,540                    -                   14,540                 5,923
       2007-08                     14,797                    -                   14,797                 5,667
       2008-09                     15,058                    -                   15,058                 5,406
       2009-10                     15,323                    -                   15,323                 5,140
       2010-11                     15,594                    -                   15,594                 4,870
       2011-12                     15,869                    -                   15,869                 4,595
       2012-13                     16,149                    -                   16,149                 4,315
       2013-14                     16,434                    -                   16,434                 4,030
       2014-15                     16,724                    -                   16,724                 3,740
       2015-16                     17,019                    -                   17,019                 3,445
       2016-17                     17,319                    -                   17,319                 3,145
       2017-18                     17,624                    -                   17,624                 2,839
       2018-19                     17,935                    -                   17,935                 2,528
       2019-20                     18,252                    -                   18,252                 2,212
       2020-21                     18,574                    -                   18,574                 1,890
       2021-22                     18,901                    -                   18,901                 1,562
       2022-23                     19,235                    -                   19,235                 1,229
       2023-24                     19,574                    -                   19,574                   889
       2024-25                     19,919                    -                   19,919                   544
       2025-26                     20,271                    -                   20,271                   193
                          $       387,236       $       13,797         $        373,439      $         76,760



                                                        40
                                    JOSEPHINE COUNTY, OREGON
                                       Notes to Financial Statements
                                     for the Year Ended June 30, 2004

NOTE 5 – LONG TERM OBLIGATIONS: (Continued)

  Community Correction Loan – In May 1997, the County purchased the 4th and D Street day reporting center
  with a mortgage payable to the seller of the property. The loan is payable in monthly installments of $1,752
  which includes interest at a rate of 7.00% per annum, and is collateralized by the property. The payments
  continue through November 2012.

  Annual requirements to repay the loan are as follows:

       Fiscal                               Principal                            June 30, 2004
       Year of       Outstanding           Paid              Outstanding             Future
      Maturity       July 1, 2003       During Year          June 30, 2004           Interest
      2003-04             $11,657            $11,657           $             -   $                -
      2004-05              12,500                                      12,500                 8,532
      2005-06              13,404                                      13,404                 7,629
      2006-07              14,372                                      14,372                 6,660
      2007-08              15,411                                      15,411                 5,621
      2008-09              16,526                                      16,526                 4,506
      2009-10              17,720                                      17,720                 3,312
      2010-11              19,001                                      19,001                 2,031
      2011-12              18,620                                      18,620                   357
                         $139,211            $11,657                $127,554              $38,648




  North Valley Industrial Park – Financing received from the State of Oregon Economic Development
  Department was payable in annual installments of $1,497 through December 2008 and $3,938 from December
  2009 with a final payment of $2,821 in December of 2016. This loan was paid in full in August 2003.




                                                        41
                                     JOSEPHINE COUNTY, OREGON
                                        Notes to Financial Statements
                                      for the Year Ended June 30, 2004

NOTE 5 – LONG TERM OBLIGATIONS: (Continued)

  Crestview Sewer Treatment Plant – Annual installments of $5,380 are made to USDA – Rural Development for
  the construction of the treatment plant. The payment includes interest of 4.5% per annum

  Future commitments on the Crestview Loan for the years ending June 30 are as follows:

           Fiscal                                  Principal                             June 30, 2004
           Year of           Outstanding            Paid            Outstanding             Future
          Maturity           July 1, 2003        During Year        June 30, 2004          Interest

           2003-04       $           1,640   $          1,640   $              -     $                 -
           2004-05                   1,714                 -                 1,714                3,666
           2005-06                   1,791                 -                 1,791                3,589
           2006-07                   1,872                 -                 1,872                3,508
           2007-08                   1,956                 -                 1,956                3,424
           2008-09                   2,044                 -                 2,044                3,336
           2009-10                   2,136                 -                 2,136                3,244
           2010-11                   2,232                 -                 2,232                3,148
           2011-12                   2,333                 -                 2,333                3,047
           2012-13                   2,437                 -                 2,437                2,942
           2013-14                   2,547                 -                 2,547                2,832
           2014-15                   2,662                 -                 2,662                2,718
           2015-16                   2,782                 -                 2,782                2,598
           2016-17                   2,907                 -                 2,907                2,473
           2017-18                   3,038                 -                 3,038                2,342
           2018-19                   3,174                 -                 3,174                2,205
           2019-20                   3,317                 -                 3,317                2,062
           2020-21                   3,466                 -                 3,466                1,913
           2021-22                   3,622                 -                 3,622                1,757
           2022-23                   3,785                 -                 3,785                1,594
           2023-24                   3,956                 -                 3,956                1,424
           2024-25                   4,134                 -                 4,134                1,246
           2025-26                   4,320                 -                 4,320                1,060
           2026-27                   4,514                 -                 4,514                    865
           2027-28                   4,717                 -                 4,717                    662
           2028-29                   4,929                 -                 4,929                    450
           2029-30                   5,076                 -                 5,076                    228

                         $         83,101    $          1,640   $          81,461    $           58,333




                                                           42
                                        JOSEPHINE COUNTY, OREGON
                                           Notes to Financial Statements
                                         for the Year Ended June 30, 2004

NOTE 5 – LONG TERM OBLIGATIONS: (Continued)

  Leases Payable:

  Mental Health, Public Health, and A&T Systems Lease – This lease consists of an installment purchase of
  computers and software for Mental Health, Public Health, and Assessment and Taxation. Annual principal
  payments are $92,250. Interest on the lease is 4.25% per annum.

  Annual requirements to repay the lease are as follows:

      Fiscal                                   Principal                                          June 30, 2004
     Year of        Outstanding                 Paid                    Outstanding                   Future
    Maturity        July 1, 2003          During Year                   June 30, 2004                 Interest

    2003-04         $        92,250            $    92,250                                -       $                -
    2004-05                  92,250                        -                         92,250                   9,802
    2005-06                  92,250                        -                         92,250                   5,881
    2006-07                  92,250                        -                         92,250                   1,960

                    $       369,000        $        92,250              $           276,750       $          17,643


  Finance and Clerk’s Recording Lease – In March of 2002, the County obtained a lease to finance computers and
  software for the Finance Accounting System and the Clerk’s Recording in annual payments of $52,322 plus
  4.0% per annum.

  Future minimum lease payments and interest are as follows:

       Fiscal                                      Principal                                            June 30, 2004
      Year of           Outstanding                 Paid                     Outstanding                     Future
     Maturity           July 1, 2003           During Year                  June 30, 2004                    Interest



    2003-04             $      52,323          $        52,323                  $             -          $                 -
    2004-05                    52,322                          -                         52,322                        2,092

                        $     104,645          $        52,323              $            52,322         $              2,092




                                                                   43
                                        JOSEPHINE COUNTY, OREGON
                                           Notes to Financial Statements
                                         for the Year Ended June 30, 2004

NOTE 5 – LONG TERM OBLIGATIONS: (Continued)

  Solid Waste Facilities Closure Costs:

  The County owns the Kerby Landfill, which closed during fiscal year 1993-94, and the Marlsan Lagoon, which
  closed during fiscal year 1996-97. Monitoring of the Marlsan Lagoon includes a landfill that was closed in
  1976.

  State federal laws and regulations require the County to place final cover on the landfill and lagoon sites when
  they stop accepting waste and to perform certain maintenance and monitoring functions at the sites after
  closure. The $5,260,110 reported as solid waste facilities closure costs liability at June 30, 2004, represents the
  best estimate of the County’s liability for closure and post-closure care costs. These amounts are based on what
  it would cost to perform all closure and post-closure in 2004-05 and beyond. Actual costs may be higher due to
  inflation, changes in technology, or changes in regulations.


NOTE 6 – RISK MANAGEMENT:

  The County is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets;
  errors and omissions; injuries to employees; and natural disasters. During fiscal year 1987-88 the County
  established a self-insurance fund (an internal service fund) to account for and finance its uninsured risks of loss.
  Under this program, the self-insurance fund provides coverage for up to a maximum of $100,000 for each
  general liability claim, $100,000 for each automobile accident claim, $25,000 for each property loss or damage,
  and the first $400,000 for each workers compensation claim. The County purchases commercial insurance for
  claims in excess of coverage provided by the fund and for all other risks of loss. Settled claims have not
  exceeded the self-insurance retention (SIR) since the program began.

  All funds of the County participate in the risk management program and make payments to the self-insurance
  fund based on estimates needed to pay prior and current year claims and to establish a reserve for catastrophic
  losses. The claims liability of $527,800 reported in the self-insurance fund at June 30, 2004 is based on
  requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for
  claims be reported if information prior to the issuance of the financial statements indicates that it is probable
  that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably
  estimated. The claims liability is based on an evaluation of outstanding claims, using past experience and
  current assessments of potential and probable exposure, as well as an estimate for incurred but not reported
  claims as of June 30, 2004. Changes in estimates of claims costs resulting from the County’s continuous review
  process and differences between estimates and payment of claims are recognized in the results of operations of
  the self-insurance fund as determinable.

  Changes in the insurance fund’s claims liability amount in fiscal years 2004 and 2003 were:

                                                              2003-04          2002-03


           Balance July 1                                 $      511,238   $      450,045
           Current year claims and changes in estimates          270,502          292,127
           Claim Payments                                      (253,940)       ( 230,934 )


           Balance - June 30                              $      527,800   $      511,238




                                                          44
                                                         JOSEPHINE COUNTY, OREGON
                                                            Notes to Financial Statements
                                                          for the Year Ended June 30, 2004

                NOTE 7 – TRANSFERS:

                         Transfers are summarized as follows:
                                                                                    Transfer To
                                                        Governmental Funds
                                                      Public           Mental                                                 Internal
     Transfer From                  General           Works            Health             Nonmajor       Enterprise           Service           Total


Governmental Funds:
 General                        $             -   $            -   $    53,318            $ 1,286,388    $            -   $      11,414      $ 1,351,120
 Public Works                          5,750                   -                -                    -                -                  -         5,750
 Mental Health                       484,382                   -                -             245,263                 -                  -       729,645
 Regional Hospital                            -                        250,000                       -                                           250,000
 Nonmajor                            553,103                   -       244,926                709,859         12,000              9,070        1,528,958
Proprietary Funds:
 Internal Service                             -       446,992                   -                    -                -         213,000          659,992


 Total                          $ 1,043,235       $ 446,992        $ 548,244              $ 2,241,510    $    12,000      $     233,484      $ 4,525,465


                     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, and use unrestricted revenues collected in the general fund to
                     finance various programs accounted for in other funds in accordance with budgetary authorizations.

                     In addition, the Public Works Equipment Fund was closed in 2003-04 and its residual equity of $446,992 was
                     transferred to the Public Works Operation Fund and its equipment of $719,276 was transferred to general
                     government capital assets.


                NOTE 8 – PENSION PLAN:

                     State of Oregon Public Employees Retirement System Plan:

                     Plan Descriptions – The County participates in the Sate of Oregon Public Employees Retirement System
                     (PERS), a cost-sharing multiple-employer pension plan which provides retirement and disability benefits,
                     annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The system is a
                     statewide defined benefit retirement plan for units of state government, political subdivisions, community
                     colleges, and school districts. PERS is administered under Oregon Revised Statues Chapter 238 by the Public
                     Employees Retirement Board. Participation by state government units, school districts, and community
                     colleges is mandatory. Participation by most political subdivisions is optional but irrevocable if elected. A
                     stand-alone financial report is not available for the County. However, the State of Oregon Public Employees
                     Retirement System issues a publicly available financial report that includes financial statements and
                     supplementary information. That report may be obtained by writing to Oregon Public Employees Retirement
                     System, 11410 SW 68th Parkway, PO Box 23700, Tigard, Oregon 97281-3700 or by calling (503) 598-PERS.

                     Funding Policy – PERS members are required to contribute 6% of their annual covered salary. The County is
                     required to contribute an actuarially determined rate; the rate during the year ended June 30, 2004 was 9.45% of
                     annual covered payroll. The contribution requirements of plan members and the County are established and
                     may be amended by the Public Employees Retirement Board.

                     Annual Pension Cost – For 2003-04, the County’s annual pension cost of $2,423,100 for the system was equal
                     to the County’s required and actual contributions.




                                                                                45
                                    JOSEPHINE COUNTY, OREGON
                                       Notes to Financial Statements
                                     for the Year Ended June 30, 2004

NOTE 8 – PENSION PLAN: (Continued)

   Three-Year Trend Information –

                                Annual          Percentage            Net
                                Pension           of APC             Pension

           Year Ended          Cost (APC)       Contributed     Obligation


         June 30, 2004        $ 2,423,100          100%          $          -
         June 30, 2003           2,205,000         100%                     -
         June 30, 2002           1,942,000         100%                     -

   Deferred Compensation:

   The County also a deferred compensation plan for its employees. Employees may elect to contribute to their
   individual deferred compensation accounts, and the County will match the employee contribution up to 3% or
   6%, depending on employee eligibility and classification. The County’s deferred compensation cost for the
   year ended June 30, 2004 was $806,390.


NOTE 9 – COMMITMENTS AND CONTINGENCIES:

   The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of
   its operations. Claims for which an adverse judgment is probable and which can be reasonably estimated have
   been accrued in the County’s Self-Insurance Fund. In the opinion of County management, based on the advice
   of legal counsel and the County’s insurance agent with respect to such other litigation and claims, the ultimate
   disposition of these matters will not have a material adverse effect on the financial position or results of
   operations of the County.

   Amounts receivable or received from grantor agencies are subject to audit and adjustment by grantor agencies,
   principally the federal government. Any unforeseen disallowed claims, including amounts already collected,
   could become a liability of the General Fund or other applicable funds.


NOTE 10 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY:

   Budgetary Information:

   The County budgets all funds except Agency Funds and clearing accounts.

   The County follows these procedures, which conform to Local Budget Law for Oregon, in establishing the
   budgetary data reflected in the financial statements:

   1.   Around March 1, the County’s Budget Officer and Board of County Commissioners submits a proposed
        budget to the County Budget Committee for the ensuing fiscal year starting July 1. The budget includes
        recommended expenditure category levels and the estimated revenues that will finance them.

   2.   The Budget Committee holds public hearings on the proposed budget and recommends a budget which is
        published at least two weeks prior to the adoption of the budget resolution by the County’s Board of
        Commissioners at a public hearing.

   3.   After a hearing and prior to July 1, the budget is enacted by a Commissioners’ resolution. If it is not
        enacted prior to July, the County has no authority to expend monies until the resolution is enacted.




                                                       46
                                        JOSEPHINE COUNTY, OREGON
                                           Notes to Financial Statements
                                         for the Year Ended June 30, 2004

NOTE 10 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY: (Continued)

  4.    The County’s appropriation resolution established the level of control for expenditures at the department
        level for the General Fund and Administrative Internal Service Fund and at the expenditure category level
        for all other funds. The departments are authorized to transfer appropriations between line items within a
        category, but transfers between categories and departments must be approved by the Board of
        Commissioners by resolution at a regular business session. All other revisions that increase the total
        appropriations of any department or fund, other than through the receipt of a designated grant, must be
        made using a supplemental budget. This process requires a hearing and enactment by the Board of
        Commissioners.

  5.    The budget for the department or fund receiving designated grant money is increased by resolution of the
        Board of County Commissioners at a regular weekly business session.

  6.    Formal budgetary review is employed as a management control device during t he year for the General,
        Special Revenue, Debt Service, Capital Projects, Enterprise and Internal Service Funds.

  7.    Appropriations lapse at the end of the fiscal year.

  The County adopted two supplemental budgets during the year.

  Excess of Expenditures Over Appropriations:

  The funds shown below had budgetary over-expenditures.

       General Fund:
          Water Resources                                  $              9,446
       Special Revenue Funds:
          O & C Title III County Projects                            892,077
          Enterprise Community Grant                                  29,691
       Internal Service Funds:
          Administrative Internal Service:
              Building Operations and Maintenance                     12,312
          County Fleet Operations                                     31,871



  Deficit Fund Equity:

  On June 30, 2004 the following funds had deficit fund balances/net assets:

                                Fund                           Amount
       Josephine County Fair                           $        106,846
       Special Transportation                                     9,059
       Disposal Sites Closure                                   117,351



NOTE 11 – NET ASSETS RESTATEMENT:

  Beginning net assets of the governmental activities have been reduced by $919,411 to remove
  duplicate capital assets.




                                                           47
         JOSEPHINE COUNTY, OREGON




REQUIRED SUPPLEMENTARY INFORMATION




                    48
                          JOSEPHINE COUNTY, OREGON




                                   MAJOR FUNDS

General Fund The General Fund is used to account for all revenues and expenditures of
the County, which are not accounted for in other funds. Principal sources of revenue are
O&C Funding, state and federal grants, property taxes, licenses and permits, fines, and
interest. Primary expenditures are for public safety, general government administration,
and community development. Significant operating transfers are made to other funds.

Public Works Operating Fund Functions performed by the County relative to publicly
used facilities, principally roads and bridges are accounted for in this fund. Major
sources of revenue include motor fuel taxes and forest service receipts. Expenditures are
primarily for road construction and maintenance.

Mental Health Program Fund County mental health services are accounted for in this
fund. Resources of this fund are primarily from federal and state grants and from alcohol
tax. Expenditures are for mental health care activities.

Regional Hospital Fund This fund accounts for moneys received for the provision of
mental health beds for patients that require hospital commitment. Resources are received
from the State of Oregon.


The County’s budgets are accounted for using the modified accrual basis of accounting.
The General Fund is appropriated by department. The Public Works Operating Fund,
Mental Health Program Fund, and the Regional Hospital Fund are appropriated at the
fund and category level.




                                           49
                                   JOSEPHINE COUNTY, OREGON
                                          General Fund

Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004
                                                                                                 Variance with
                                                                                                 Final Budget
                                           Original           Final                               Favorable
                                           Budget             Budget            Actual           (Unfavorable)
Revenues:
  Taxes                                $     3,188,300    $     3,188,300   $    3,256,686   $             68,386
  Fees and Charges for Services              3,414,174          3,541,166        4,457,434               916,268
  Intergovernmental Revenues                14,500,034         14,873,121       14,906,489                 33,368
  Interfund Charges for Services                56,917            56,917            22,250                (34,667)
  Other Revenues                             2,160,191          2,128,157        1,873,791               (254,366)
Total Revenues                              23,319,616         23,787,661       24,516,650               728,989


Expenditures:


General Government
General Government
  Materials & Services                         112,467           112,467           198,802                (86,335)
  Capital Outlay                               373,638           373,638           212,960               160,678
  Interfund Payment for Services               553,632           553,632           553,657                       (25)
  Contingency                                  633,238           632,792                 -               632,792
    Total                                    1,672,975          1,672,529          965,419               707,110


Assessor
  Personal Services                          1,091,638          1,064,988          965,128                 99,860
  Materials & Services                          72,168            95,818            72,934                 22,884
  Capital Outlay                                25,816            41,216            25,527                 15,689
  Interfund Payment for Services               119,420           119,420           118,165                  1,255
    Total                                    1,309,042          1,321,442        1,181,754               139,688


Clerk
  Personal Services                            417,713           417,713           401,043                 16,670
  Materials & Services                         166,720           221,720           224,843                 (3,123)
  Interfund Payment for Services               101,849           101,849           101,640                       209
  Debt Service                                  21,357            21,357            21,357                         -
    Total                                      707,639           762,639           748,883                 13,756


Treasurer
  Personal Services                            397,492           397,492           361,746                 35,746
  Materials & Services                          83,724            83,724            66,911                 16,813
  Capital Outlay                                10,605            10,605             1,633                  8,972
  Interfund Payment for Services                68,071            68,071            66,554                  1,517
    Total                                      559,892           559,892           496,844                 63,048


Total General Government                     4,249,548          4,316,502        3,392,900               923,602




                                                         50
                                            JOSEPHINE COUNTY, OREGON
                                              General Fund (Continued)

Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004
                                                                                                    Variance with
                                                                                                    Final Budget
                                                   Original            Final                         Favorable
                                                   Budget              Budget          Actual       (Unfavorable)
Public Safety
District Attorney
   Personal Services                                 1,394,743           1,404,952      1,371,433            33,519
   Materials & Services                                135,505            147,763         121,931            25,832
   Capital Outlay                                        1,500             14,226          12,902             1,324
   Interfund Payment for Services                      178,043            179,743         179,186                  557
     Total                                           1,709,791           1,746,684      1,685,452            61,232


Community Justice
   Personal Services                                 3,149,759           3,177,280      3,176,568                  712
   Materials & Services                                232,966            240,662         230,390            10,272
   Capital Outlay                                       27,000             28,200          17,822            10,378
   Interfund Payment for Services                      445,459            356,170         356,460                (290)
     Total                                           3,855,184           3,802,312      3,781,240            21,072


Sheriff
   Personal Services                                 6,322,222           6,404,148      6,283,254           120,894
   Materials & Services                              1,082,405           1,107,979      1,102,493             5,486
   Capital Outlay                                             -                    -       46,063            (46,063)
   Interfund Payment for Services                    1,491,064           1,491,064      1,429,598            61,466
   Intergovernmental Payment for Services              200,000            200,000         189,931            10,069
     Total                                           9,095,691           9,203,191      9,051,339           151,852


Total Public Safety                                 14,660,666          14,752,187     14,518,031           234,156


Community Development
Water Resources
   Personal Services                                    36,477             36,477          44,077             (7,600)
   Materials & Services                                 10,000             10,000          10,042                   (42)
   Interfund Payment for Services                             -                    -        1,804             (1,804)
     Total                                              46,477             46,477          55,923             (9,446)


Surveyor
   Personal Services                                    42,422             42,422          42,327                   95
   Materials & Services                                  9,953                 9,953        7,770             2,183
   Interfund Payment for Services                       16,467             16,467          16,396                   71
     Total                                              68,842             68,842          66,493             2,349


Forestry
   Personal Services                                   467,956            469,203         415,872            53,331
   Materials & Services                                230,595            233,448         238,062             (4,614)
   Capital Outlay                                      263,000            285,673          59,815           225,858
   Interfund Payment for Services                      102,946            102,946         106,373             (3,427)
   Intergovernmental Payment for Services              101,945            101,945          63,590            38,355
     Total                                           1,166,442           1,193,215        883,712           309,503




                                                                  51
                                               JOSEPHINE COUNTY, OREGON
                                                 General Fund (Continued)

Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004
                                                                                                                    Variance with
                                                                                                                    Final Budget
                                                       Original              Final                                   Favorable
                                                       Budget                Budget              Actual             (Unfavorable)
Planning
   Personal Services                                       620,161              620,161             683,374                  (63,213)
   Materials & Services                                    570,724              570,724             123,494                 447,230
   Capital Outlay                                            1,800                   1,800                 -                  1,800
   Interfund Payment for Services                          258,985              258,985             261,782                   (2,797)
    Total                                                1,451,670             1,451,670          1,068,650                 383,020


Total Community Development                              2,733,431             2,760,204          2,074,778                 685,426

Human Services
Mental Health
   Personal Services                                       714,757              534,757             528,595                   6,162
   Materials & Services                                     43,090               43,090              38,866                   4,224
   Capital Outlay                                                 899                 899             1,122                      (223)
   Interfund Payment for Services                           53,089               53,089              50,172                   2,917
    Total                                                  811,835              631,835             618,755                  13,080


Public Health
   Personal Services                                     2,185,578             2,309,234          2,225,095                  84,139
   Materials & Services                                    401,090              569,620             521,554                  48,066
   Capital Outlay                                           11,451               43,746              42,142                   1,604
   Interfund Payment for Services                          320,179              320,179             314,085                   6,094
   Intergovernmental Payment for Services                   14,500               89,500             102,445                  (12,945)
   Debt Service                                             29,000               29,000               2,124                  26,876
    Total                                                2,961,798             3,361,279          3,207,445                 153,834


Total Human Services                                     3,773,633             3,993,114          3,826,200                 166,914


Grand Total Expenditures                                25,417,278            25,822,007         23,811,909               2,010,098


Excess of Revenues Over (Under) Expenditures             (2,097,662)          (2,034,346)           704,741               2,739,087


Other Financing Sources (Uses):
  Transfers In                                           2,268,336             2,268,336          1,043,235               (1,225,101)
  Transfers Out                                          (1,378,990)          (1,378,990)         (1,351,120)                27,870
Total Other Financing Sources (Uses)                       889,346              889,346            (307,885)              (1,197,231)


Net change in Fund Balances                              (1,208,316)          (1,145,000)           396,856               1,541,856


Fund Balances - July 1, 2003                             1,208,316             1,145,000          2,097,963                 952,963
Fund Balances - June 30, 2004                      $                -    $               -   $    2,494,819     $         2,494,819




                                                                        52
                                               JOSEPHINE COUNTY, OREGON
                                                Public Works Program Fund

Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

                                                                                                                  Variance with
                                                                                                                  Final Budget
                                                       Original              Final                                  Favorable
                                                       Budget               Budget             Actual             (Unfavorable)
Revenues:
  Taxes                                            $     3,905,324      $     3,905,324    $    4,370,080     $           464,756
  Fees and Charges for Services                             82,000             132,000            100,438                  (31,562)
  Intergovernmental Revenues                             1,877,174            1,877,174         1,866,588                  (10,586)
  Interfund Charges for Services                           238,000             238,000            347,649                 109,649
  Other Revenues                                           536,221             536,221            653,958                 117,737
Total Revenues                                           6,638,719            6,688,719         7,338,713                 649,994


Expenditures:
   Personal Services                                     3,964,570            4,014,570         3,975,939                  38,631
   Materials & Services                                  1,540,422            1,540,422         1,250,468                 289,954
   Capital Outlay                                          263,450             263,450             43,843                 219,607
   Interfund Payment for Services                          647,925             647,925            641,775                   6,150
   Intergovernmental Payment for Services                   92,754              92,754             58,475                  34,279
Total Expenditures                                       6,509,121            6,559,121         5,970,500                 588,621


Excess of Revenues Over (Under) Expenditures               129,598             129,598          1,368,213               1,238,615


Other Financing Sources (Uses):
  Transfers In                                                    -                   -           560,659                 560,659
  Transfers Out                                              (9,000)             (9,000)            (5,750)                 3,250
Total Other Financing Sources (Uses)                         (9,000)             (9,000)          554,909                 563,909


Net change in Fund Balances                                120,598             120,598          1,923,122               1,802,524


Fund Balances - July 1, 2003                             3,116,316            3,116,316         3,501,012                 384,696
Fund Balances - June 30, 2004                      $     3,236,914      $     3,236,914    $    5,424,134     $         2,187,220




                                                                       53
                                               JOSEPHINE COUNTY, OREGON
                                                Mental Health Program Fund

Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

                                                                                                                  Variance with
                                                                                                                  Final Budget
                                                        Original             Final                                  Favorable
                                                        Budget              Budget             Actual             (Unfavorable)
Revenues:
  Taxes                                             $        55,500     $       55,500     $       59,557     $              4,057
  Fees and Charges for Services                             582,493            736,703            577,533                 (159,170)
  Intergovernmental Revenues                              7,963,217           8,897,496         8,377,044                 (520,452)
  Other Revenues                                             62,400             62,400             39,464                  (22,936)
Total Revenues                                            8,663,610           9,752,099         9,053,598                 (698,501)


Expenditures:
   Personal Services                                      5,357,618           5,953,548         5,844,545                 109,003
   Materials & Services                                     726,283           1,127,698         1,034,964                  92,734
   Capital Outlay                                             2,400               2,900             3,372                     (472)
   Interfund Payment for Services                           605,638            605,638            606,621                     (983)
   Intergovernmental Payment for Services                 3,221,587           3,221,587         2,932,580                 289,007
   Debt Service                                                    -                  -             3,862                   (3,862)
Total Expenditures                                        9,913,526          10,911,371        10,425,944                 485,427


Excess of Revenues Over (Under) Expenditures              (1,249,916)        (1,159,272)        (1,372,346)               (213,074)


Other Financing Sources (Uses):
  Transfers In                                              580,674            650,674            548,244                 (102,430)
  Transfers Out                                            (726,258)           (967,071)         (729,645)                237,426
Total Other Financing Sources (Uses)                       (145,584)           (316,397)         (181,401)                134,996


Net change in Fund Balances                               (1,395,500)        (1,475,669)        (1,553,747)                (78,078)


Fund Balances - July 1, 2003                              1,395,500           1,475,669         1,942,079                 466,410
Fund Balances - June 30, 2004                       $              -    $             -    $      388,332     $           388,332




                                                                   54
                                               JOSEPHINE COUNTY, OREGON
                                               Regional Hospital Program Fund

Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

                                                                                                                 Variance with
                                                                                                                 Final Budget
                                                        Original             Final                                 Favorable
                                                        Budget              Budget             Actual            (Unfavorable)
Revenues:
  Intergovernmental Revenues                        $     1,558,600     $     1,662,549    $    1,662,549    $                   -
  Other Revenues                                                               370,391            429,528                 59,137
Total Revenues                                            1,558,600           2,032,940         2,092,077                 59,137


Expenditures:
   Intergovernmental Payment for Services                 1,558,600           2,032,940         1,204,669                828,271
Total Expenditures                                        1,558,600           2,032,940         1,204,669                828,271


Excess of Revenues Over (Under) Expenditures                        -                 -           887,408                887,408


Other Financing Sources (Uses):
  Transfers Out                                                     -          (250,000)         (250,000)                       -
Total Other Financing Sources (Uses)                                -          (250,000)         (250,000)                       -


Net change in Fund Balances                                         -          (250,000)          637,408                887,408


Fund Balances - July 1, 2003                                        -          250,000          2,037,059              1,787,059
Fund Balances - June 30, 2004                       $               -   $             -    $    2,674,467    $         2,674,467




                                                                   55
      JOSEPHINE COUNTY, OREGON




COMBINING AND INDIVIDUAL FUND
  STATEMENTS AND SCHEDULES




                 56
                            JOSEPHINE COUNTY, OREGON


                       NONMAJOR GOVERNMENTAL FUNDS

                           NONMAJOR SPECIAL REVENUE FUNDS

Oregon and California (O & C) Title III County Projects - This fund was established to account
for the revenues received from the Federal Government under the O & C Title III and the
expenditure of those moneys. Most of the monies are transferred to other departments that carry
out programs allowable under the terms of Title III (primarily projects on Federal lands or the
surrounding lands).

Community Development Block Grant Management Fund (CDBG) - This fund accounts for
revenues received and expenditures made for community development under block grants
received from the Federal Government.

Economic Development (Video Poker) Fund - This fund was established to account for
expenditure of a share of video poker funds received from the State of Oregon that are to be used
for economic improvement in Josephine County. Some of the resources in this fund are
transferred to other County funds, such as Parks, Airports and Fairgrounds.

Adult Jail Arbitrage Fund - Federal regulations require that investment earnings on tax exempt
bonds in excess of the interest rate of the bond obligation are subject to arbitrage rebate
requirements. Under these requirements, the County must pay excess interest earnings to the
Federal Government. This fund accounts for the arbitrage liability that arose from the adult jail
bonds .The liability was liquidated in 2003-04.

PEG Access Fund - Josephine County Ordinance 98-1 authorizes the Board of County
Commissioners of Josephine County to grant non-exclusive franchises for the operation of cable
communication systems within the unincorporated area of Josephine County. The PEG Access
Trust Fund accounts for the monies received for the franchise fees. Expenditures are for public
cable access.

County School Trust Fund – This fund is used to distribute monies received by the County to
the city and county school districts. Funding for the County School Trust Fund is made up of: 1) a
portion of the County’s 1965-66 levy which is required for the purposes of the County School
Trust Fund, and 2) a portion of the Federal Forest Reserve receipts which are allocated to
schools. Apportionment of these funds between the school districts is based on the average daily
enrollments for the previous fiscal year. However, before apportionment, the County is required
by state statute to pay from the County School Trust Fund the annual bill from the Oregon
Department of Education for special education.

Clerk’s Record Fund - In accordance with state law, five percent of certain fees collected by the
county clerk’s office have been set aside for acquiring storage and retrieval systems, payment of
expenses incurred in collecting those fees, and maintaining and restoring records as authorized
by the county clerk.

Anne G. Basker Fund - This fund was established to account for the remodeling project of the
County’s auditorium. Donations made up the major portion of the revenues. Expenditures were
for the remodeling of the auditorium. The remodeling is complete, and this fund presently has no
activity.

Enterprise Community Grant Fund - This fund was established to account for the operations of
a Federal/State/Local partnership to create jobs and opportunities. Revenue is received from the
Federal Government. Expenditures are for the administration of the partnership and its
programs.




                                                57
                             JOSEPHINE COUNTY, OREGON


Building Safety and Electrical Inspection Fund - New legislation prohibiting the use of fees
and charges earned by Building and Safety for any use except that department’s programs
prompted the combining of the general fund portion of the department with Electrical Inspections.
In addition, this fund accounts for fees collected for electrical inspections, which by requirement
must be segregated and used only to fund these inspections.

Court Security Fund - Moneys earmarked for making improvements to courtrooms and related
facilities are accounted for in this fund. The major revenue source is court-imposed fines.

Community Corrections Fund - This fund accounts for funds received from the State of Oregon
Department of Corrections to supervise adult felony cases, administer Community Correction Act
(CCA) sanction and services programs and the work crew program.

Enhanced Supervision Fund – This is a revolving fund to collect fees from participants to be
distributed for needed services to drug treatment clients.

Juvenile Flexible Services Fund - This fund accounts for the moneys provided by contract
between Josephine County and the Oregon Youth Authority. These funds are used to provide
individualized services to adjudicated delinquent youth that are in danger of being referred to a
youth correctional facility. The expectation is that providing specialized individualized services as
needed by the youth may avert the commitment to a facility, increase educational participation
and community protection and decrease self-destructive behavior.

District Attorney's Forfeitures Fund - Moneys and property received by the District Attorney's
Office as forfeitures in drug related prosecutions are accounted for in this fund. These forfeitures
are the major source of revenue. Expenditures are for general administration of the District
Attorney’s office.

VAWA Fund - This fund was used to account for funds used for funding a domestic violence
intervention team, which was funded by a federal grant, through the Violence Against Women
Act. This fund is now inactive and will be closed.

Liquor Law Enforcement Fund – This fund is used to account for moneys received from the
state courts, which have been earmarked for enforcing liquor laws. The major source of revenue
is state funds received from alcohol offenders. Expenditures are for administration and operation
of the public school alcohol and drug programs and to purchase alcohol and drug detecting
devices for use by schools and local law enforcement agencies. Effective July 1, 2004, this fund
was closed into the General Fund, where its operations will continue to be accounted for
separately.

C.A.M.I. Fund - This fund accounts for revenues and expenditures dedicated to the County multi-
disciplinary child abuse investigative program. The major source of revenue is assessments paid
by convicted criminals. Effective July 1, 2004, this fund was closed into the General Fund, where
its operations will continue to be accounted for separately.

Sheriff's Reserve Fund - Fees earned by the Sheriff’s Reserve Officers are accounted for in this
fund. Expenditures are for the administration and operation of the Reserve Officers Organization.
The Reserve organization is made up of individuals who donate their time and effort to Josephine
County. It is a skilled support division trained to assist the Sheriff’s office.

JOINT Trust Fund - The property seized in activities related to illegal drug activities is accounted
for in this fund. Expenditures are for the investigations performed to uncover these activities.




                                                 58
                              JOSEPHINE COUNTY, OREGON


Josephine County Fair Fund - Operations of the fair are accounted for in this fund. Major
sources of revenue include operation of the annual fair, horse racing proceeds, and a subsidy
from the Economic Development Fund, discussed above. Expenditures are primarily for
administration, operation of the fair, and the maintenance of the fair buildings and grounds. The
Fair Board is charged with the responsibility for operational and financial management of the
fairgrounds.

Library Operating Fund – In March 1995, the voters of Josephine County passed a 3-year serial
levy. In May 1997, Oregon Measure 50 was passed by voters, and the 1995 levy became part of
the county’s permanent rate. Since that time, an amount equivalent to the levy has been
transferred annually to the Library Operating Fund. This fund accounts for this money and other
revenues and operating costs of the Main Library in Grants Pass and the three branches in Cave
Junction, Wolf Creek and Williams.

Law Library Fund -This fund is used to account for moneys collected which are restricted for the
purpose of providing Josephine County with a law library. The law library is for the use of judges,
litigants and potential litigants. It is funded totally through fees which are collected from each civil
action or proceeding filed in the circuit or district court. State law limits the amount used for the
law library to no more than 40% of the fees the collected by the courts.

Library Trust Fund - This is a special fund for the management of gifts, donations, grants and
other supplementary funding for the benefit of the Josephine County Library System. Most gifts
are donated to the library for specific purposes and the donors’ wishes must be honored. The
fund can also be used to account for unrestricted gifts and grants.

Kaye Jean Turner Fund – Mr. and Mrs. Fred Gray established the Kaye Jean Turner Trust Fund
in 1979 in memory of their daughter. The purpose of the fund is to purchase library materials in
the subject areas of art history and art appreciation. The fund regularly receives contributions
from the Gray family. No more than one-third of the principal amount is to be expended annually
with the remaining balance to accumulate interest and be added to the principal amount for future
use.

Parks Operating Fund -This fund accounts for the operations of the County’s parklands and
other facilities, which include campgrounds, Rogue River boat ramps, access to the Applegate
River and Lake Selmac, and the Granite Hill Cemetery. Major revenue sources include grants,
user fees, and an operating transfer from the Economic Development Fund, discussed above.
Expenditures are for the management and maintenance of the county parks and the other
facilities.

4H Extension Fund - This fund accounts for moneys received for the operation of the Josephine
County 4H Extension Service. The major source of revenue is from tax dollars provided
specifically for this purpose. Expenditures are for the administration and operation of the Service.

Commission for Children and Families Fund - This fund was established as a collection point
for grants that provide assistance to children and families in crisis. Expenditures are for
distributions of these grants to other funds and outside agencies.

Community Services Fund – This is the primary fund for the Community Services and Senior
Programs. Revenues come from grants, contracts and donations and are used for the general
administration and program operation of over twenty services for seniors, disabled, and low-
income individuals. This fund also accounts for the Veteran’s Office.

Josephine County Food Share Fund – This fund is used to account for USDA reimbursements,
share contributions from disbursement agencies, and donations from the private sector which are




                                                   59
                             JOSEPHINE COUNTY, OREGON


used for the administration and operation of the Food Share program for the benefit of needy
people in Josephine County.

Special Transportation Fund - This fund is used to account for Oregon Department of
Transportation (ODOT) taxes received from the State of Oregon that are earmarked for providing
transportation for those citizens who are elderly or are limited in mobility due to either mental or
physical disabilities.

Jennifer Patton Memorial Fund – This fund was established in the name of Jennifer Patton, a
former skill trainer for the Developmental Disabilities Program, whose life was cut short in May
1995. The fund directly serves clients with developmental disabilities and supports the activities
she shared with them.

Developmentally Disabled Services Fund - This fund was established to account for state
mandated services for the developmentally disabled. The primary sources of revenues are
federal and state grants. Expenditures are for the operations of the Developmental Disabilities
Program

ESCE Early Intervention - This fund accounts for the revenues and expenditures of the Early
Intervention Program. Revenue sources are federal and state grants and expenditures are for
early intervention services for children with developmental delays whose ages range from birth to
six years.

Alcohol and Drug Fund – This fund was established to account for alcohol and drug prevention,
early intervention, treatment, continuum of care, and drug-free housing. The primary revenue
source is the Oregon Office of Mental Health and Addiction Services, although grants and
community donations support a portion of College Dreams (see below).

Secured Residential Treatment Facility Fund - This fund accounts for the expenses associated
with the operations of the Hugo Hills regional treatment facility in Hugo. Resources are derived
mainly from federal and state grants.

Zelzie Reed Fund - A bequeath from the estate of Ms. Reed established this fund to provide
services to children through the Mental Health Department's early intervention program.
Expenditures of this fund are for its administration and for the operations of the early intervention
program.

College Dreams Fund – This fund accounts for college scholarships awarded to disadvantaged
students deemed at risk of dropping out of high school or getting involved with drugs. Students
are eligible to enter this program during their sixth school year and can continue to earn
scholarship money throughout high school. They earn these scholarships with good school
attendance, academic progress, and participation in regular club skill building meetings. Parents
attend parent meetings and outings to college campuses. Revenues are received mainly from
grants and donations. Expenditures are for the scholarships.


                               NONMAJOR DEBT SERVICE FUNDS

Energy Improvements Fund - This fund accounts for debt service payments on energy
improvement loans with the State of Oregon. Loans were used to improve the County
Courthouse, the Illinois Valley Pool and the Grants Pass YMCA building.

PERS Bonded Debt – During fiscal year 2001-02, the County created this fund and completed
financing the PERS unfunded actuarial liability that existed at that time. The revenue for
repayment is being received from all County departments and placed in this fund. The related




                                                 60
                            JOSEPHINE COUNTY, OREGON


debt payments are recorded in this fund.

Adult Jail Facility Fund - This fund accounts for the collection of property taxes related to the
retirement of the bonds issued for the construction of the Adult Jail. Josephine County voters
approved the levy in the November 3, 1998 general election.

Payroll Liability Reserve Fund – Funds are provided by each County department to the Leave
Liability Reserve fund as determined by formula. Charges against this fund are for payments
made to employees who exchange time management leave, sell back vacation time or receive
settlement for accrued leaves at the time of retirement or termination of employment.

North Valley Industrial Park Fund - This fund was established to account for the annual debt
service payments of principal and interest on bonds issued by the City of Grants Pass. The
County repaid the City an amount expected to cover the future debt service on the bonds .This
fund also accounts for the activities associated with management of County property remaining in
the industrial park and operation and maintenance of the County’s sewer system, pumping station
and infrastructure improvements for the industrial park.

Crestview Debt Service Fund -This fund accounts for debt service payments on the sewer
system for the Local Improvement District formed in the Crestview Loop area.


                            NONMAJOR CAPITAL PROJECT FUNDS

Search & Rescue Building Construction Fund – This fund accounts for the monies budgeted
for the construction of search and rescue facilities.

ADA Compliance Fund - This fund was accounts for revenues and expenditures associated with
the County’s program to bring County buildings and facilities into compliance with the Federal
Americans with Disabilities Act (ADA). The major source of revenue is transfers from the General
Fund.

Josephine County Revolving Construction Fund – The purpose of the fund is to provide
capital to advance finance Local Improvement District (LID) projects, which are contracted
through a competitive bidding process. Property owners typically petition for these projects with
assessments being made to benefiting properties in order to repay the initial capital outlay by the
County. Depending upon the activity in this program, the fund has at times sustained itself by
funding new projects through assessment receipts on previously completed projects. Historically,
transfers have been made from the County’s General Fund when necessary to meet anticipated
program needs. In 2004-05, however, the fund is budgeted to return money to the General Fund
from the sale of foreclosed properties, which the County has had to clean up prior to sale.

Disposal Sites Closure – This fund accounts for the revenues and expenditures associated with
the ongoing monitoring and remediation of two former disposal sites, Kerby Landfill and Marlsan
Lagoon.


                               NONMAJOR PERMANENT FUNDS

William MacKenzie Fund – This trust fund was established based on a bequest included in the
will of William MacKenzie. The bequest established the fund principal, which cannot be
expended. The purpose of the fund is to assist Josephine County residents who have exhausted
all other sources of public assistance. The fund, which is administered by the Board of County
Commissioners, provides assistance based on requests received from various public service
agencies, within the limits of the amounts of interest earned by the fund.




                                                61
                            JOSEPHINE COUNTY, OREGON



George R. Borders Memorial Fund - This fund was established in 1995 as a result of a bequest
from the estate of Mr. Borders. The principal is to remain unspent, while the interest may be used
for projects to benefit the Main Library in Grants Pass.




                                               62
                                          JOSEPHINE COUNTY, OREGON
                                          Nonmajor Governmental Funds

Combining Balance Sheet
June 30, 2004


                                        Total            Total           Total
                                      Nonmajor         Nonmajor        Nonmajor        Total          Total
                                       Special           Debt           Capital      Nonmajor       Nonmajor
                                      Revenue           Service         Projects     Permanent     Governmental
                                       Funds            Funds            Funds         Funds          Funds

Assets:
  Current Assets:
    Cash & Investments                $    5,696,805   $    905,335    $   191,421   $   481,517   $     7,275,078
    Taxes Receivable                         24,085          52,734              -             -           76,819
    Other Receivables                      1,198,520         46,566         29,144         5,590         1,279,820
    Due From Other Governments                6,100                -             -             -            6,100
    Due From Other Funds                     80,418         597,509         23,500             -          701,427
    Other Assets                                   -               -             -        61,850           61,850
Total Assets                          $    7,005,928   $   1,602,144   $   244,065   $   548,957   $     9,401,094


Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                  $     666,035    $     16,626    $    18,357   $         -   $      701,018
    Accrued Payroll Liabilities             690,082                -             -             -          690,082
    Due To Other Governments                    233                -             -             -              233
    Due To Other Funds                      208,911          13,758        117,251             -          339,920
    Deferred Revenue                         53,233          83,734              -             -          136,967
    Other Liabilities                         3,642                -             -             -            3,642
Total Liabilities                          1,622,136        114,118        135,608             -         1,871,862


Fund Balances:
  Reserved for Permanent Endowment                 -               -             -       367,410          367,410
  Reserved for Debt Service                        -        349,265              -             -          349,265
  Unreserved Fund Balance                  5,383,792       1,138,761       108,457       181,547         6,812,557
Total Fund Balances                        5,383,792       1,488,026       108,457       548,957         7,529,232
Total Liabilities and Fund Balances   $    7,005,928   $   1,602,144   $   244,065   $   548,957   $     9,401,094




                                                           63
                                           JOSEPHINE COUNTY, OREGON
                                           Nonmajor Governmental Funds

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
for the year ended June 30, 2004


                                         Total              Total            Total
                                       Nonmajor           Nonmajor         Nonmajor         Total          Total
                                        Special             Debt            Capital       Nonmajor       Nonmajor
                                       Revenue             Service          Projects      Permanent     Governmental
                                        Funds              Funds             Funds          Funds          Funds

Revenues:
 Taxes                                 $      253,720         1,160,551    $         -    $         -   $     1,414,271
 Fees and Charges for Services              3,121,591              5,661        55,598              -         3,182,850
 Interfund Charges for Services                      -        2,918,980              -              -         2,918,980
 Intergovernmental Revenues                17,551,876                  -       150,000              -        17,701,876
 Other Revenues                               521,390           67,944            992          11,321           601,647
Total Revenues                             21,448,577         4,153,136        206,590         11,321        25,819,624


Expenditures:
 General Government                         2,432,787         1,208,919              -              -         3,641,706
 Public Safety                              1,920,355                  -             -              -         1,920,355
 Public Works                                        -                 -       287,826              -           287,826
 Culture and Recreation                     3,565,776                  -             -          1,459         3,567,235
 Community Development                        809,302           33,683               -              -           842,985
 Human Services                            12,133,001                  -             -              -        12,133,001
 Debt Service - Principal                            -        1,082,142              -              -         1,082,142
 Debt Service - Interest                             -        1,048,909              -              -         1,048,909
Total Expenditures                         20,861,221         3,373,653        287,826          1,459        24,524,159


Excess of Revenues Over (Under)
    Expenditures                              587,356          779,483         (81,236)         9,862         1,295,465


Other Financing Sources (Uses):
 Transfers In                               1,992,047           20,473         228,990              -         2,241,510
 Transfers Out                              (1,528,958)                -             -              -         (1,528,958)
Total Other Financing Sources (Uses)          463,089           20,473         228,990              -           712,552


Net change in Fund Balances                 1,050,445          799,956         147,754          9,862         2,008,017
Fund Balances - July 1, 2003                4,333,347          688,070         (39,297)       539,095         5,521,215
Fund Balances - June 30, 2004          $    5,383,792     $   1,488,026    $   108,457    $   548,957   $     7,529,232




                                                              64
                                        JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds

Combining Balance Sheet
June 30, 2004

                                           O & C Title III        Community              Economic             Adult Jail
                                              County              Development           Deveolpment           Arbitrage              PEG
                                             Projects             Block Grant           (Video Poker)           Trust               Access
                                               Fund                  Fund                   Fund                Fund                Fund
Assets:
 Current Assets:
   Cash & Investments                  $        1,437,745     $          42,927     $          65,756     $                36   $       80,509
   Taxes Receivable                                     -                     -                     -                       -                -
   Other Receivables                                2,006                    52                69,053                      21              106
   Due From Other Governments                           -                     -                     -                       -                -
   Due From Other Funds                                 -                     -                     -                       -                -
Total Assets                           $        1,439,751     $          42,979     $         134,809     $                57   $       80,615

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                   $            40,365    $                 -   $                -    $                36   $            -
    Accrued Payroll Liabilities                          -                      -                    -                      -                -
    Due To Other Governments                             -                      -                    -                      -                -
    Due To Other Funds                              59,167                      -               30,000                      -                -
    Deferred Revenue                                     -                      -                    -                      -                -
    Other Liabilities                                    -                      -                    -                      -                -
Total Liabilities                                   99,532                      -               30,000                     36                -

Fund Balances:
 Unreserved Fund Balance                        1,340,219                42,979               104,809                      21           80,615
Total Fund Balances                             1,340,219                42,979               104,809                      21           80,615
Total Liabilities and Fund Balances    $        1,439,751     $          42,979     $         134,809     $                57   $       80,615



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                 $                -     $               -     $               -     $                 -   $       48,118
 Fees and Charges for Services                          -                     -                     -                       -                -
 Intergovernmental Revenues                     2,448,850                     -               340,145                       -                -
 Other Revenues                                    20,482                   593                   929                   1,375            1,063
Total Revenues                                  2,469,332                   593               341,074                   1,375           49,181

Expenditures:
 General Government                             1,612,995                       -             178,136               (12,631)            31,712
 Public Safety                                          -                       -                   -                     -                  -
 Culture and Recreation                                 -                       -                   -                     -                  -
 Community Development                                  -                       -                   -                     -                  -
 Human Services                                         -                       -                   -                     -                  -
Total Expenditures                              1,612,995                       -             178,136               (12,631)            31,712

Excess of Revenues Over (Under)
    Expenditures                                  856,337                   593               162,938               14,006              17,469

Other Financing Sources (Uses):
 Transfers In                                            -                      -                3,750                    -                  -
 Transfers Out                                    (677,177)                     -             (129,210)             (36,661)           (13,000)
Total Other Financing Sources (Uses)              (677,177)                     -             (125,460)             (36,661)           (13,000)

Net change in Fund Balances                       179,160                   593                37,478               (22,655)             4,469
Fund Balances - July 1, 2003                    1,161,059                42,386                67,331                22,676             76,146
Fund Balances - June 30, 2004          $        1,340,219     $          42,979     $         104,809     $              21     $       80,615


                                                                    65
                                            JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds (Continued)

Combining Balance Sheet
June 30, 2004
                                                                                                                                 Building
                                                County                                 Anne G              Enterprise            Safety &
                                                School              Clerk's            Basker              Community            Electrical
                                                Trust               Record            Auditorium             Grant              Inspection
                                                Fund                Fund                Fund                 Fund                 Fund
Assets:
 Current Assets:
   Cash & Investments                       $            291    $        43,221   $             325    $         16,936     $      1,303,812
   Taxes Receivable                                                           -                   -                   -                    -
   Other Receivables                                                         52                   -                  21                1,549
   Due From Other Governments                                                 -                   -                   -                    -
   Due From Other Funds                                                       -                   -                   -                    -
Total Assets                                $            291    $        43,273   $             325    $         16,957     $      1,305,361

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                        $              -    $             -   $                -   $                -   $         11,636
    Accrued Payroll Liabilities                            -                  -                    -                    -             33,007
    Due To Other Governments                               -                  -                    -                    -                  -
    Due To Other Funds                                     -                  -                    -                    -                  -
    Deferred Revenue                                       -                  -                    -                    -                  -
    Other Liabilities                                      -                  -                    -                    -                  -
Total Liabilities                                          -                  -                    -                    -             44,643

Fund Balances:
 Unreserved Fund Balance                                 291             43,273                 325              16,957            1,260,718
Total Fund Balances                                      291             43,273                 325              16,957            1,260,718
Total Liabilities and Fund Balances         $            291    $        43,273   $             325    $         16,957     $      1,305,361



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                      $            -      $             -   $                -   $              -     $              -
 Fees and Charges for Services                           -               15,730                    -                  -              943,543
 Intergovernmental Revenues                        622,084                    -                    -            262,229                    -
 Other Revenues                                        425                  470                    4                328               14,427
Total Revenues                                     622,509               16,200                    4            262,557              957,970

Expenditures:
 General Government                                622,575                    -                    -                  -                    -
 Public Safety                                           -                    -                    -                  -                    -
 Culture and Recreation                                  -                    -                    -                  -                    -
 Community Development                                   -                    -                    -            258,479              550,823
 Human Services                                          -                    -                    -                  -                    -
Total Expenditures                                 622,575                    -                    -            258,479              550,823

Excess of Revenues Over (Under)
    Expenditures                                         (66)            16,200                    4                4,078            407,147

Other Financing Sources (Uses):
 Transfers In                                              -                  -                    -                  -                      -
 Transfers Out                                             -                  -                    -             (3,750)                     -
Total Other Financing Sources (Uses)                       -                  -                    -             (3,750)                     -

Net change in Fund Balances                              (66)            16,200                   4                 328              407,147
Fund Balances - July 1, 2003                             357             27,073                 321              16,629              853,571
Fund Balances - June 30, 2004               $            291    $        43,273   $             325    $         16,957     $      1,260,718


                                                                    66
                                            JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds (Continued)

Combining Balance Sheet
June 30, 2004

                                                                                                               Juvenile              District
                                                 Court              Community            Enhanced              Flexible             Attorney's
                                                Security            Corrections          Supervision           Services             Forfeitures
                                                 Fund                  Fund                 Fund                Fund                  Fund
Assets:
 Current Assets:
   Cash & Investments                       $        51,106     $         566,377    $         67,076      $           7,571    $            1,855
   Taxes Receivable                                       -                     -                   -                      -                     -
   Other Receivables                                  4,181                50,189                  82                      9                     2
   Due From Other Governments                             -                     -                   -                      -                     -
   Due From Other Funds                                   -                   350                   -                      -                     -
Total Assets                                $        55,287     $         616,916    $         67,158      $           7,580    $            1,857

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                        $              24   $          15,484    $                 -   $              375   $                  -
    Accrued Payroll Liabilities                             -             130,016                      -                    -                      -
    Due To Other Governments                                -                   -                      -                    -                      -
    Due To Other Funds                                      -                   -                      -                    -                      -
    Deferred Revenue                                        -                   -                      -                    -                      -
    Other Liabilities                                       -                   -                      -                    -
Total Liabilities                                          24             145,500                      -                  375                      -

Fund Balances:
 Unreserved Fund Balance                             55,263               471,416              67,158                  7,205                 1,857
Total Fund Balances                                  55,263               471,416              67,158                  7,205                 1,857
Total Liabilities and Fund Balances         $        55,287     $         616,916    $         67,158      $           7,580    $            1,857



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                      $             -     $               -    $              -      $               -    $                  -
 Fees and Charges for Services                       48,445                     -                   -                      -                       -
 Intergovernmental Revenues                               -             2,256,535               9,592                  8,930                       -
 Other Revenues                                         827                 4,680                 826                     90                      24
Total Revenues                                       49,272             2,261,215              10,418                  9,020                      24

Expenditures:
 General Government                                       -                     -                      -                 -                         -
 Public Safety                                       56,319             1,769,476                  2,628            11,641                         -
 Culture and Recreation                                   -                     -                      -                 -                         -
 Community Development                                    -                     -                      -                 -                         -
 Human Services                                           -                     -                      -                 -                         -
Total Expenditures                                   56,319             1,769,476                  2,628            11,641                         -

Excess of Revenues Over (Under)
    Expenditures                                     (7,047)              491,739                  7,790             (2,621)                      24

Other Financing Sources (Uses):
 Transfers In                                               -                   -                      -                    -                      -
 Transfers Out                                              -             (76,977)                     -                    -                      -
Total Other Financing Sources (Uses)                        -             (76,977)                     -                    -                      -

Net change in Fund Balances                          (7,047)              414,762               7,790                (2,621)                    24
Fund Balances - July 1, 2003                         62,310                56,654              59,368                 9,826                  1,833
Fund Balances - June 30, 2004               $        55,263     $         471,416    $         67,158      $          7,205     $            1,857


                                                                     67
                                            JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds (Continued)

Combining Balance Sheet
June 30, 2004


                                                                   Liquor Law                             Sheriff's           JOINT
                                                VAWA               Enforcement           CAMI             Reserve             Trust
                                                Fund                  Fund               Fund              Fund               Fund
Assets:
 Current Assets:
   Cash & Investments                       $          1,207   $          43,565     $       5,452    $           6,510   $     162,820
   Taxes Receivable                                        -                   -                 -                    -               -
   Other Receivables                                       1               1,291            27,565                1,385          22,787
   Due From Other Governments                              -                   -                 -                    -               -
   Due From Other Funds                                    -                   -                 -                    -               -
Total Assets                                $          1,208   $          44,856     $      33,017    $           7,895   $     185,607

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                        $              -   $                 -   $          187   $           1,748   $           2,459
    Accrued Payroll Liabilities                            -                     -                -                   -                   -
    Due To Other Governments                               -                     -                -                   -                   -
    Due To Other Funds                                     -                     -                -                   -                   -
    Deferred Revenue                                       -                     -                -                   -                   -
    Other Liabilities                                      -                     -                -                   -                   -
Total Liabilities                                          -                     -              187               1,748               2,459

Fund Balances:
 Unreserved Fund Balance                               1,208              44,856            32,830                6,147         183,148
Total Fund Balances                                    1,208              44,856            32,830                6,147         183,148
Total Liabilities and Fund Balances         $          1,208   $          44,856     $      33,017    $           7,895   $     185,607



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                      $             -    $               -     $           -    $              -    $           -
 Fees and Charges for Services                            -                    -                 -                   -           78,829
 Intergovernmental Revenues                               -               77,598           111,358              10,625                -
 Other Revenues                                          15                  542               469                 124            2,353
Total Revenues                                           15               78,140           111,827              10,749           81,182

Expenditures:
 General Government                                        -                     -               -                    -               -
 Public Safety                                             -                 6,248          24,318                8,469          41,256
 Culture and Recreation                                    -                     -               -                    -               -
 Community Development                                     -                     -               -                    -               -
 Human Services                                            -                     -               -                    -               -
Total Expenditures                                         -                 6,248          24,318                8,469          41,256

Excess of Revenues Over (Under)
    Expenditures                                         15               71,892            87,509                2,280          39,926

Other Financing Sources (Uses):
 Transfers In                                              -                    -                -                    -                   -
 Transfers Out                                             -              (33,966)         (88,523)                   -                   -
Total Other Financing Sources (Uses)                       -              (33,966)         (88,523)                   -                   -

Net change in Fund Balances                               15              37,926            (1,014)               2,280          39,926
Fund Balances - July 1, 2003                           1,193               6,930            33,844                3,867         143,222
Fund Balances - June 30, 2004               $          1,208   $          44,856     $      32,830    $           6,147   $     183,148


                                                                     68
                                            JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds (Continued)

Combining Balance Sheet
June 30, 2004


                                                Josephine             Library                                  Library             Kaye Jean
                                                County Fair          Operating           Law Library           Trust                Turner
                                                   Fund                Fund                 Fund                Fund                 Fund
Assets:
 Current Assets:
   Cash & Investments                       $         54,403     $        324,263    $         18,692      $      119,684      $        60,433
   Taxes Receivable                                        -               13,681                   -                   -                    -
   Other Receivables                                   8,231                1,745               7,773                 215                   74
   Due From Other Governments                              -                    -                   -                   -                    -
   Due From Other Funds                                    -                    -                   -                   -                    -
Total Assets                                $         62,634     $        339,689    $         26,465      $      119,899      $        60,507

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                        $        123,023     $         42,192    $             3,481   $           5,561   $               28
    Accrued Payroll Liabilities                       17,309               67,035                  5,339                   -                    -
    Due To Other Governments                               -                  233                      -                   -                    -
    Due To Other Funds                                     -                    -                      -                   -                    -
    Deferred Revenue                                  29,148               13,681                      -                   -                    -
    Other Liabilities                                      -                    -                      -                   -                    -
Total Liabilities                                    169,480              123,141                  8,820               5,561                   28

Fund Balances:
 Unreserved Fund Balance                             (106,846)            216,548              17,645             114,338               60,479
Total Fund Balances                                  (106,846)            216,548              17,645             114,338               60,479
Total Liabilities and Fund Balances         $          62,634    $        339,689    $         26,465      $      119,899      $        60,507



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                      $              -     $         20,490    $              -      $             -     $               -
 Fees and Charges for Services                       946,922                8,810              86,108               11,892                     -
 Intergovernmental Revenues                           39,200               42,675                   -                    -                     -
 Other Revenues                                            -               19,950                   -                1,359                   817
Total Revenues                                       986,122               91,925              86,108               13,251                   817

Expenditures:
 General Government                                         -                   -                   -                    -                      -
 Public Safety                                              -                   -                   -                    -                      -
 Culture and Recreation                             1,063,701           1,283,309             116,894               10,534                  4,114
 Community Development                                      -                   -                   -                    -                      -
 Human Services                                             -                   -                   -                    -                      -
Total Expenditures                                  1,063,701           1,283,309             116,894               10,534                  4,114

Excess of Revenues Over (Under)
    Expenditures                                      (77,579)         (1,191,384)             (30,786)                2,717             (3,297)

Other Financing Sources (Uses):
 Transfers In                                         54,710            1,175,000                      -                   -                    -
 Transfers Out                                             -                    -                      -                   -                    -
Total Other Financing Sources (Uses)                  54,710            1,175,000                      -                   -                    -

Net change in Fund Balances                           (22,869)            (16,384)             (30,786)             2,717               (3,297)
Fund Balances - July 1, 2003                          (83,977)            232,932               48,431            111,621               63,776
Fund Balances - June 30, 2004               $        (106,846)   $        216,548    $          17,645     $      114,338      $        60,479


                                                                     69
                                            JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds (Continued)

Combining Balance Sheet
June 30, 2004

                                                                                         Commission
                                                 Parks                                   for Children          Community           Food
                                                Operating         4H Extension           and Families           Services           Share
                                                  Fund               Fund                   Fund                 Fund              Fund
Assets:
 Current Assets:
   Cash & Investments                       $        89,566   $                -     $         176,972     $         87,973    $      28,341
   Taxes Receivable                                       -               10,404                     -                    -                -
   Other Receivables                                 97,052                   21                46,173               90,073            3,338
   Due From Other Governments                             -                    -                     -                    -            6,100
   Due From Other Funds                              30,000                    -                45,645                    -                -
Total Assets                                $       216,618   $           10,425     $         268,790     $        178,046    $      37,779

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                        $        22,592   $                -     $         103,284     $         59,002    $       9,342
    Accrued Payroll Liabilities                      39,874                    -                11,471               37,462            9,686
    Due To Other Governments                              -                    -                     -                    -                -
    Due To Other Funds                                    -                    -                   200                    -                -
    Deferred Revenue                                      -               10,404                     -                    -                -
    Other Liabilities                                 3,642                    -                     -                    -                -
Total Liabilities                                    66,108               10,404               114,955               96,464           19,028

Fund Balances:
 Unreserved Fund Balance                            150,510                   21               153,835               81,582           18,751
Total Fund Balances                                 150,510                   21               153,835               81,582           18,751
Total Liabilities and Fund Balances         $       216,618   $           10,425     $         268,790     $        178,046    $      37,779



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                      $             -   $          185,112     $               -     $              -    $           -
 Fees and Charges for Services                      474,098                2,106                   840               11,946           39,028
 Intergovernmental Revenues                         366,495                    -               502,502            1,360,516           60,389
 Other Revenues                                     154,699                    -                 2,565               49,015          122,426
Total Revenues                                      995,292              187,218               505,907            1,421,477          221,843

Expenditures:
 General Government                                       -                    -                     -                    -                -
 Public Safety                                            -                    -                     -                    -                -
 Culture and Recreation                             901,216              186,008                     -                    -                -
 Community Development                                    -                    -                     -                    -                -
 Human Services                                           -                    -               506,987            1,541,255          274,238
Total Expenditures                                  901,216              186,008               506,987            1,541,255          274,238

Excess of Revenues Over (Under)
    Expenditures                                     94,076                 1,210                (1,080)           (119,778)          (52,395)

Other Financing Sources (Uses):
 Transfers In                                        55,000                      -             231,942               52,205               408
 Transfers Out                                            -                      -            (203,448)             (29,580)           (9,872)
Total Other Financing Sources (Uses)                 55,000                      -              28,494               22,625            (9,464)

Net change in Fund Balances                         149,076                1,210                27,414              (97,153)          (61,859)
Fund Balances - July 1, 2003                          1,434               (1,189)              126,421              178,735            80,610
Fund Balances - June 30, 2004               $       150,510   $               21     $         153,835     $         81,582    $       18,751


                                                                    70
                                            JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds (Continued)

Combining Balance Sheet
June 30, 2004

                                                                  Jennifer         Developmentally             ESCE
                                               Special             Patton              Disabled                Early             Alcohol
                                            Transportation        Memorial             Services             Intervention         & Drug
                                                Fund               Fund                 Fund                   Fund               Fund
Assets:
 Current Assets:
   Cash & Investments                      $        61,621    $           6,576    $        422,330     $             141    $      233,033
   Taxes Receivable                                      -                    -                   -                     -                 -
   Other Receivables                                94,448                  790             156,430               199,927           192,194
    Due From Other Governments                           -                    -                   -                     -                 -
   Due From Other Funds                                  -                    -                   -                     -             4,423
Total Assets                               $       156,069    $           7,366    $        578,760     $         200,068    $      429,650

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                       $        17,946    $                -   $         71,284     $          35,622    $       76,212
    Accrued Payroll Liabilities                     37,382                     -             72,754               102,219            21,729
    Due To Other Governments                             -                     -                  -                     -                 -
    Due To Other Funds                             109,800                     -              8,444                     -               800
    Deferred Revenue                                     -                     -                  -                     -                 -
    Other Liabilities                                    -                     -                  -                     -                 -
Total Liabilities                                  165,128                     -            152,482               137,841            98,741

Fund Balances:
 Unreserved Fund Balance                            (9,059)               7,366             426,278                62,227           330,909
Total Fund Balances                                 (9,059)               7,366             426,278                62,227           330,909
Total Liabilities and Fund Balances        $       156,069    $           7,366    $        578,760     $         200,068    $      429,650



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                     $             -    $             -      $              -     $               -    $             -
 Fees and Charges for Services                     157,711                  -                     -               150,109             48,111
 Intergovernmental Revenues                        616,596                  -             4,463,322             1,303,263          1,268,376
 Other Revenues                                     82,637             10,573                 7,183                 5,368                  -
Total Revenues                                     856,944             10,573             4,470,505             1,458,740          1,316,487

Expenditures:
 General Government                                      -                    -                   -                     -                  -
 Public Safety                                           -                    -                   -                     -                  -
 Culture and Recreation                                  -                    -                   -                     -                  -
 Community Development                                   -                    -                   -                     -                  -
 Human Services                                    873,378                9,893           4,461,543             1,546,086          1,313,209
Total Expenditures                                 873,378                9,893           4,461,543             1,546,086          1,313,209

Excess of Revenues Over (Under)
    Expenditures                                   (16,434)                  680                8,962             (87,346)               3,278

Other Financing Sources (Uses):
 Transfers In                                            -                     -               25,819             128,084            226,129
 Transfers Out                                           -                     -                    -             (10,000)          (216,794)
Total Other Financing Sources (Uses)                     -                     -               25,819             118,084              9,335

Net change in Fund Balances                        (16,434)                 680              34,781                30,738            12,613
Fund Balances - July 1, 2003                         7,375                6,686             391,497                31,489           318,296
Fund Balances - June 30, 2004              $        (9,059)   $           7,366    $        426,278     $          62,227    $      330,909


                                                                  71
                                            JOSEPHINE COUNTY, OREGON
                                       Nonmajor Special Revenue Funds (Continued)

Combining Balance Sheet
June 30, 2004
                                                   Secured                                                       Total
                                                  Residential          Zelzie Reed                              Nonmajor
                                                  Treatment               Early               College           Special
                                                   Facility            Intervention           Dreams            Revenue
                                                     Fund                 Fund                 Fund              Funds
Assets:
 Current Assets:
   Cash & Investments                         $         14,515     $          15,467      $       77,698    $     5,696,805
   Taxes Receivable                                          -                     -                   -             24,085
   Other Receivables                                   118,489                    19               1,176          1,198,520
   Due From Other Governments                                -                     -                   -              6,100
   Due From Other Funds                                      -                     -                   -             80,418
Total Assets                                  $        133,004     $          15,486      $       78,874    $     7,005,928

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                          $         24,152     $                  -   $             -   $       666,035
    Accrued Payroll Liabilities                        104,799                        -                 -           690,082
    Due To Other Governments                                 -                        -                 -               233
    Due To Other Funds                                     500                        -                 -           208,911
    Deferred Revenue                                         -                        -                 -            53,233
    Other Liabilities                                        -                        -                 -             3,642
Total Liabilities                                      129,451                        -                 -         1,622,136

Fund Balances:
 Unreserved Fund Balance                                 3,553                15,486              78,874          5,383,792
Total Fund Balances                                      3,553                15,486              78,874          5,383,792
Total Liabilities and Fund Balances           $        133,004     $          15,486      $       78,874    $     7,005,928



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                        $               -    $                -     $            -    $       253,720
 Fees and Charges for Services                           97,363                     -                  -          3,121,591
 Intergovernmental Revenues                           1,380,596                     -                  -         17,551,876
 Other Revenues                                              10                   202             14,540            521,390
Total Revenues                                        1,477,969                   202             14,540         21,448,577

Expenditures:
 General Government                                           -                       -                 -         2,432,787
 Public Safety                                                -                       -                 -         1,920,355
 Culture and Recreation                                       -                       -                 -         3,565,776
 Community Development                                        -                       -                 -           809,302
 Human Services                                       1,606,412                       -                 -        12,133,001
Total Expenditures                                    1,606,412                       -                 -        20,861,221

Excess of Revenues Over (Under)
    Expenditures                                       (128,443)                  202             14,540            587,356

Other Financing Sources (Uses):
 Transfers In                                            39,000                       -                 -          1,992,047
 Transfers Out                                                -                       -                 -         (1,528,958)
Total Other Financing Sources (Uses)                     39,000                       -                 -            463,089

Net change in Fund Balances                             (89,443)                 202              14,540          1,050,445
Fund Balances - July 1, 2003                             92,996               15,284              64,334          4,333,347
Fund Balances - June 30, 2004                 $           3,553    $          15,486      $       78,874    $     5,383,792


                                                                        72
                                JOSEPHINE COUNTY, OREGON
                               Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

O & C Title III County Projects - Fund 200:                                                                  Variance with
                                                                                                             Final Budget
                                                   Original             Final                                  Favorable
                                                   Budget              Budget             Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $     1,001,130     $     1,001,130    $    2,448,850     $         1,447,720
  Other Revenues                                        20,000             20,000             20,482                        482
Total Revenues                                       1,021,130           1,021,130         2,469,332               1,448,202
Expenditures:
   Materials & Services                                507,121            562,918          1,588,258               (1,025,340)
   Interfund Payment for Services                             -                  -             1,575                   (1,575)
   Capital Outlay                                             -           158,000             23,162                 134,838
Total Expenditures                                     507,121            720,918          1,612,995                 (892,077)


Excess of Revenues Over (Under) Expenditures           514,009            300,212            856,337                 556,125


Other Financing Sources (Uses):
  Transfers Out                                      (1,725,441)        (1,511,644)         (677,177)                834,467
Total Other Financing Sources (Uses)                 (1,725,441)        (1,511,644)         (677,177)                834,467


Net change in Fund Balances                          (1,211,432)        (1,211,432)          179,160               1,390,592


Fund Balances - July 1, 2003                         1,211,432           1,211,432         1,161,059                  (50,373)
Fund Balances - June 30, 2004                  $              -    $             -    $    1,340,219     $         1,340,219




Community Development Block Grant - Fund 216:                                                                Variance with
                                                                                                             Final Budget
                                                   Original            Final                                  Favorable
                                                   Budget              Budget             Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $     3,350,000     $     3,350,000    $              -   $         (3,350,000)
  Other Revenues                                              -                  -                 593                      593
Total Revenues                                       3,350,000           3,350,000                 593             (3,349,407)
Expenditures:
   Materials & Services                              3,350,000           3,350,000                   -             3,350,000
Total Expenditures                                   3,350,000           3,350,000                   -             3,350,000


Net change in Fund Balances                                   -                  -                 593                      593


Fund Balances - July 1, 2003                                  -                  -            42,386                  42,386
Fund Balances - June 30, 2004                  $              -    $             -    $       42,979     $            42,979




                                                              73
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Economic Development (Video Poker) - Fund 231                                                                 Variance with
                                                                                                              Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $       245,198     $      264,748      $      340,145     $            75,397
  Other Revenues                                         3,500                 3,500                929                 (2,571)
Total Revenues                                         248,698            268,248             341,074                  72,826
Expenditures:
   Personal Services                                    42,802             53,302              53,146                        156
   Materials & Services                                138,359            138,359             106,469                  31,890
   Interfund Payment for Services                       22,815             22,815              18,521                    4,294
  Capital Outlay                                        12,315                     -                  -                        -
Total Expenditures                                     216,291            214,476             178,136                  36,340


Excess of Revenues Over (Under) Expenditures            32,407             53,772             162,938                 109,166


Other Financing Sources (Uses):
  Transfers In                                           7,500                 7,500            3,750                   (3,750)
  Transfers Out                                         (62,000)          (83,365)           (129,210)                 (45,845)
Total Other Financing Sources (Uses)                    (54,500)          (75,865)           (125,460)                 (49,595)


Net change in Fund Balances                             (22,093)          (22,093)             37,478                  59,571


Fund Balances - July 1, 2003                            22,093             22,093              67,331                  45,238
Fund Balances - June 30, 2004                  $              -    $               -   $      104,809     $           104,809




Adult Jail Arbitrage Trust - Fund 700                                                                         Variance with
                                                                                                              Final Budget
                                                   Original            Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
  Other Revenues                               $         2,405     $           2,405   $        1,375     $             (1,030)
Total Revenues                                           2,405 -               2,405            1,375                   (1,030)
Expenditures:
   Materials & Services                                       -           101,817              (12,631)               114,448
Total Expenditures                                            -           101,817              (12,631)               114,448


Excess of Revenues Over (Under) Expenditures             2,405            (99,412)             14,006                 113,418


Other Financing Sources (Uses):
  Transfers Out                                               -           (40,588)             (36,661)                  3,927
Total Other Financing Sources (Uses)                          -           (40,588)             (36,661)                  3,927


Net change in Fund Balances                              2,405           (140,000)             (22,655)               117,345


Fund Balances - July 1, 2003                           140,000            140,000              22,676                 (117,324)
Fund Balances - June 30, 2004                  $       142,405     $               -   $             21   $                   21




                                                              74
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

PEG Access - Fund 704                                                                                               Variance with
                                                                                                                    Final Budget
                                                   Original              Final                                        Favorable
                                                   Budget               Budget              Actual                  (Unfavorable)
Revenues:
  Taxes                                        $        46,842      $       46,842      $       48,118                        1,276
  Other Revenues                                         1,500                  1,500            1,063                           (437)
Total Revenues                                          48,342              48,342              49,181                             839
Expenditures:
   Materials & Services                                         -           31,312              31,312                                -
   Capital Outlay                                      110,342              79,030                   400                     78,630
Total Expenditures                                     110,342             110,342              31,712                       78,630


Excess of Revenues Over (Under) Expenditures            (62,000)           (62,000)             17,469                       79,469


Other Financing Sources (Uses):
  Transfers Out                                         (13,000)           (13,000)             (13,000)                              -
Total Other Financing Sources (Uses)                    (13,000)           (13,000)             (13,000)                              -


Net change in Fund Balances                             (75,000)           (75,000)              4,469                       79,469


Fund Balances - July 1, 2003                            75,000              75,000              76,146                        1,146
Fund Balances - June 30, 2004                  $                -   $               -   $       80,615          $            80,615




County Schools Trust - Fund 715                                                                                     Variance with
                                                                                                                    Final Budget
                                                   Original             Final                                        Favorable
                                                   Budget               Budget              Actual                  (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $       626,000      $      626,000      $      622,084          $             (3,916)
  Other Revenues                                              500                500                 425                            (75)
Total Revenues                                         626,500 -           626,500 -           622,509      -                 (3,991)
Expenditures:
   Intergovernmental Payments                          626,500             626,500             622,575                        3,925
Total Expenditures                                     626,500             626,500             622,575                        3,925


Net change in Fund Balances                                     -                   -                (66)                           (66)


Fund Balances - July 1, 2003                                    -                   -                357                           357
Fund Balances - June 30, 2004                  $                -   $               -   $            291        $                  291




                                                               75
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Clerk's Record - Fund 223                                                                                Variance with
                                                                                                         Final Budget
                                           Original             Final                                      Favorable
                                           Budget              Budget             Actual                 (Unfavorable)
Revenues:
  Fees and Charges for Services        $        10,000     $       10,000     $       15,730         $             5,730
  Other Revenues                                      50                50                 470                          420
Total Revenues                                  10,050 -           10,050 -           16,200     -                 6,150
Expenditures:
   Capital Outlay                               23,050             23,050                    -                    23,050
Total Expenditures                              23,050             23,050                    -                    23,050


Net change in Fund Balances                     (13,000)          (13,000)            16,200                      29,200


Fund Balances - July 1, 2003                    13,000             13,000             27,073                      14,073
Fund Balances - June 30, 2004          $               -   $             -    $       43,273         $            43,273




Anne G. Basker Auditorium - Fund 703                                                                     Variance with
                                                                                                         Final Budget
                                           Original            Final                                      Favorable
                                           Budget              Budget             Actual                 (Unfavorable)
Revenues:
  Other Revenues                       $               -   $             -    $              4       $                    4
Total Revenues                                         -                 -                   4                            4
Expenditures:
   Materials & Services                                                                      -                            -
Total Expenditures                                     -                 -                   -                            -


Net change in Fund Balances                            -                 -                   4                            4


Fund Balances - July 1, 2003                           -                 -                 321                          321
Fund Balances - June 30, 2004          $               -   $             -    $            325       $                  325




                                                      76
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Enterprise Community Grant - Fund 283                                                                          Variance with
                                                                                                               Final Budget
                                                   Original              Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $         232,538    $      232,538      $      262,229     $            29,691
  Other Revenues                                                -                   -                328                      328
Total Revenues                                           232,538           232,538             262,557                  30,019
Expenditures:
   Materials & Services                                  223,438           223,438             258,479                  (35,041)
   Capital Outlay                                             600                600                   -                      600
   Contingency                                             1,000                1,000                  -                 1,000
Total Expenditures                                       225,038           225,038             258,479                  (33,441)


Excess of Revenues Over (Under) Expenditures               7,500                7,500            4,078                   (3,422)


Other Financing Sources (Uses):
  Transfers Out                                           (7,500)            (7,500)             (3,750)                 3,750
Total Other Financing Sources (Uses)                      (7,500)            (7,500)             (3,750)                 3,750


Net change in Fund Balances                                     -                   -                328                      328


Fund Balances - July 1, 2003                                    -                   -           16,629                  16,629
Fund Balances - June 30, 2004                  $                -   $               -   $       16,957     $            16,957




Building Safety & Electrical Inspection - Fund 261/262                                                         Variance with
                                                                                                               Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
  Fees and Charges for Services                $         559,551    $      559,551      $      943,543     $           383,992
  Other Revenues                                                -                   -           14,427                  14,427
Total Revenues                                           559,551           559,551             957,970                 398,419
Expenditures:
   Personal Services                                     395,586           395,586             385,544                  10,042
   Materials & Services                                   91,201            91,201              88,540                   2,661
   Interfund Payment for Services                         68,364            68,364              74,671                   (6,307)
   Capital Outlay                                          4,400                4,400            2,068                   2,332
   Contingency                                           798,000           798,000                     -               798,000
Total Expenditures                                   1,357,551 -          1,357,551 -          550,823                 806,728


Net change in Fund Balances                           (798,000)           (798,000)            407,147               1,205,147


Fund Balances - July 1, 2003                             798,000           798,000             853,571                  55,571
Fund Balances - June 30, 2004                  $                -   $               -   $    1,260,718     $         1,260,718




                                                               77
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Court Security - Fund 275                                                                                      Variance with
                                                                                                               Final Budget
                                                   Original              Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $        50,000      $       50,000      $       48,445     $             (1,555)
  Other Revenues                                         1,403                  1,403                827                    (576)
Total Revenues                                          51,403              51,403              49,272                   (2,131)
Expenditures:
   Materials & Services                                115,903             115,903              55,819                  60,084
   Interfund Payment for Services                             500                500                 500                        -
Total Expenditures                                     116,403             116,403              56,319                  60,084


Net change in Fund Balances                             (65,000)            (65,000)             (7,047)                57,953


Fund Balances - July 1, 2003                            65,000              65,000              62,310                   (2,690)
Fund Balances - June 30, 2004                  $                -   $               -   $       55,263     $            55,263




Community Corrections - Fund 243                                                                               Variance with
                                                                                                               Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $     1,653,605      $     2,318,486     $    2,256,535     $            (61,951)
  Other Revenues                                         4,000                  4,000            4,680                        680
Total Revenues                                       1,657,605 -          2,322,486          2,261,215                  (61,271)
Expenditures:
   Personal Services                                 1,185,290            1,309,124          1,304,265                   4,859
   Materials & Services                                151,626             209,790             214,260                   (4,470)
   Interfund Payment for Services                      209,600             209,600             229,834                  (20,234)
   Debt Service                                         22,000              22,000              21,117                        883
   Contingency                                                  -          482,883                     -               482,883
Total Expenditures                                   1,568,516            2,233,397          1,769,476                 463,921


Excess of Revenues Over (Under) Expenditures            89,089              89,089             491,739                 402,650


Other Financing Sources (Uses):
  Transfers Out                                         (89,089)            (89,089)            (76,977)                12,112
Total Other Financing Sources (Uses)                    (89,089)            (89,089)            (76,977)                12,112


Net change in Fund Balances                                     -                   -          414,762                 414,762


Fund Balances - July 1, 2003                                    -                   -           56,654                  56,654
Fund Balances - June 30, 2004                  $                -   $               -   $      471,416     $           471,416




                                                               78
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Enhanced Supervision - Fund 244                                                                     Variance with
                                                                                                    Final Budget
                                            Original             Final                                Favorable
                                            Budget              Budget           Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues            $        60,000     $       60,000   $        9,592     $            (50,408)
  Other Revenues                                       -                 -                826                      826
Total Revenues                                   60,000             60,000           10,418                  (49,582)
Expenditures:
   Materials & Services                          60,000             60,000            2,628                  57,372
Total Expenditures                               60,000             60,000            2,628                  57,372


Net change in Fund Balances                            -                 -            7,790                   7,790


Fund Balances - July 1, 2003                           -                 -           59,368                  59,368
Fund Balances - June 30, 2004           $              -    $            -   $       67,158     $            67,158




Juvenile Flexible Services - Fund 281                                                               Variance with
                                                                                                    Final Budget
                                            Original            Final                                Favorable
                                            Budget              Budget           Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues            $        15,000     $       15,000   $        8,930     $             (6,070)
  Other Revunues                                       -                 -                 90   $                   90
Total Revenues                                   15,000             15,000            9,020                   (5,980)
Expenditures:
   Materials & Services                          15,000             15,000           10,770                   4,230
   Interfund Payment for Services                      -                 -                871                    (871)
Total Expenditures                               15,000             15,000           11,641                   3,359


Net change in Fund Balances                            -                 -            (2,621)                 (2,621)


Fund Balances - July 1, 2003                           -                 -            9,826                   9,826
Fund Balances - June 30, 2004           $              -    $            -   $        7,205     $             7,205




                                                       79
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

District Attorney's Forfeitures - Fund 212                                                              Variance with
                                                                                                        Final Budget
                                                 Original             Final                               Favorable
                                                 Budget              Budget           Actual            (Unfavorable)
Revenues:
  Other Revenues                                                                  $            24   $                   24
Total Revenues                                              -                 -                24                       24
Expenditures:
   Materials & Services                                                                                                  -
Total Expenditures                                          -                 -                 -                        -


Net change in Fund Balances                                 -                 -                24                       24


Fund Balances - July 1, 2003                                                               1,833                  1,833
Fund Balances - June 30, 2004                $              -    $            -   $        1,857    $             1,857




VAWA - Fund 256                                                                                         Variance with
                                                                                                        Final Budget
                                                 Original            Final                               Favorable
                                                 Budget              Budget           Actual            (Unfavorable)
Revenues:
  Other Revenues                             $              -    $            -   $            15   $                   15
Total Revenues                                              -                 -                15                       15
Expenditures:
   Materials & Services                                                                         -                        -
Total Expenditures                                          -                 -                 -                        -


Net change in Fund Balances                                 -                 -                15                       15


Fund Balances - July 1, 2003                                -                 -                 -                        -
Fund Balances - June 30, 2004                $              -    $            -   $            15   $                   15




                                                            80
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Liquor Law Enforcement - Fund 233                                                                              Variance with
                                                                                                               Final Budget
                                                   Original              Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues                   $        15,000      $       75,869      $       77,598     $             1,729
  Other Revenues                                                -                   -                542                      542
Total Revenues                                          15,000              75,869              78,140                   2,271
Expenditures:
   Personal Services                                            -               2,264            2,264                          -
   Materials & Services                                  3,000                  2,000            1,567                        433
   Capital Outlay                                       15,000                  2,417            2,417                          -
   Contingency                                                  -           40,731                     -                40,731
Total Expenditures                                      18,000              47,412               6,248                  41,164


Excess of Revenues Over (Under) Expenditures             (3,000)            28,457              71,892                  43,435


Other Financing Sources (Uses):
  Transfers Out                                                 -          (33,966)             (33,966)                        -
Total Other Financing Sources (Uses)                            -          (33,966)             (33,966)                        -


Net change in Fund Balances                              (3,000)            (5,509)             37,926                  43,435


Fund Balances - July 1, 2003                             3,000                  5,509            6,930                   1,421
Fund Balances - June 30, 2004                  $                -   $               -   $       44,856     $            44,856


CAMI - Fund 263                                                                                                Variance with
                                                                                                               Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:

  Intergovernmental Revenues                   $        83,860      $      111,358      $      111,358     $                    -
  Other Revenues                                                -                   -                469                      469
Total Revenues                                          83,860             111,358             111,827                        469
Expenditures:
   Materials & Services                                 14,159              28,611              14,158                  14,453
   Interfund Payment for Services                             988                988                 988                        -
   Capital Outlay                                               -               9,730            9,172                        558
   Contingency                                           7,979                      -                  -                        -
Total Expenditures                                      23,126              39,329              24,318                  15,011


Excess of Revenues Over (Under) Expenditures            60,734              72,029              87,509                  15,480


Other Financing Sources (Uses):
  Transfers Out                                         (84,000)           (88,523)             (88,523)                        -
Total Other Financing Sources (Uses)                    (84,000)           (88,523)             (88,523)                        -


Net change in Fund Balances                             (23,266)           (16,494)              (1,014)                15,480


Fund Balances - July 1, 2003                            23,266              33,844              33,844                          -
Fund Balances - June 30, 2004                  $                -   $       17,350      $       32,830     $            15,480




                                                               81
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Sheriff's Reserve - Fund 226                                                                        Variance with
                                                                                                    Final Budget
                                        Original              Final                                   Favorable
                                        Budget               Budget              Actual             (Unfavorable)
Revenues:
  Intergovernmental Revenues        $        20,000      $       20,000      $       10,625     $             (9,375)
  Other Revenues                                     -                   -                124                      124
Total Revenues                               20,000              20,000              10,749                   (9,251)
Expenditures:
   Materials & Services                      24,110              24,110               8,047                  16,063
   Interfund Payment for Services                  390                390                 422                       (32)
   Capital Outlay                                    -                                                                -
Total Expenditures                           24,500              24,500               8,469                  16,031


Net change in Fund Balances                   (4,500)            (4,500)              2,280                   6,780


Fund Balances - July 1, 2003                  4,500                  4,500            3,867                      (633)
Fund Balances - June 30, 2004       $                -   $               -   $        6,147     $             6,147




JOINT Trust - Fund 735                                                                              Variance with
                                                                                                    Final Budget
                                        Original             Final                                   Favorable
                                        Budget               Budget              Actual             (Unfavorable)
Revenues:
  Fees and Charges for Services     $        26,000      $       91,500      $       78,829     $            (12,671)
  Other Revenues                             15,495              15,495               2,353                  (13,142)
Total Revenues                               41,495             106,995              81,182                  (25,813)
Expenditures:
   Materials & Services                      46,495              84,495              35,324                  49,171
   Interfund Payment for Services                    -               1,000            1,062                         (62)
   Capital Outlay                                    -           26,500               4,870                  21,630
Total Expenditures                           46,495             111,995              41,256                  70,739


Net change in Fund Balances                   (5,000)            (5,000)             39,926                  44,926


Fund Balances - July 1, 2003                  5,000                  5,000          143,222                 138,222
Fund Balances - June 30, 2004       $                -   $               -   $      183,148     $           183,148




                                                    82
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Josephine County Fair - Fund 221                                                                                  Variance with
                                                                                                                  Final Budget
                                                   Original                Final                                    Favorable
                                                   Budget                 Budget               Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $     1,089,715        $     1,089,715      $      946,922     $           (142,793)
   Intergovernmental Revenues                           41,000                41,000               39,200                   (1,800)
Total Revenues                                       1,130,715              1,130,715             986,122                 (144,593)
Expenditures:
   Personal Services                                   308,595               308,595              264,017                  44,578
   Materials & Services                                787,655               812,655              741,991                  70,664
   Interfund Payment for Services                       55,398                55,398               55,398                          -
   Capital Outlay                                        5,000                    9,710             2,295                    7,415
Total Expenditures                                   1,156,648              1,186,358           1,063,701                 122,657


Excess of Revenues Over (Under) Expenditures            (25,933)              (55,643)             (77,579)                (21,936)


Other Financing Sources (Uses):
  Transfers In                                          25,000                54,710               54,710                          -
Total Other Financing Sources (Uses)                    25,000                54,710               54,710                          -


Net change in Fund Balances                                   (933)                (933)           (22,869)                (21,936)


Fund Balances - July 1, 2003                                  933                  933             (83,977)                (84,910)
Fund Balances - June 30, 2004                  $                 -    $               -    $     (106,846)    $           (106,846)


Library Operating - Fund 205                                                                                      Variance with
                                                                                                                  Final Budget
                                                   Original               Final                                    Favorable
                                                   Budget                 Budget               Actual             (Unfavorable)
Revenues:
 Taxes                                         $        32,000        $       32,000       $       20,490     $            (11,510)
   Fees and Charges for Services                        15,200                15,200                8,810                   (6,390)
   Intergovernmental Revenues                           41,750                41,750               42,675                        925
   Other Revenues                                       36,550                36,550               19,950                  (16,600)
Total Revenues                                         125,500               125,500               91,925                  (33,575)
Expenditures:
   Personal Services                                   866,317               866,317              791,358                  74,959
   Materials & Services                                303,842               303,842              262,088                  41,754
   Interfund Payment for Services                      230,341               230,341              229,863                        478
Total Expenditures                                   1,400,500              1,400,500           1,283,309                 117,191


Excess of Revenues Over (Under) Expenditures         (1,275,000)           (1,275,000)          (1,191,384)                83,616


Other Financing Sources (Uses):
  Transfers In                                       1,175,000              1,175,000           1,175,000                          -
Total Other Financing Sources (Uses)                 1,175,000              1,175,000           1,175,000                          -


Net change in Fund Balances                           (100,000)              (100,000)             (16,384)                83,616


Fund Balances - July 1, 2003                           100,000               100,000              232,932                 132,932
Fund Balances - June 30, 2004                  $                 -    $               -    $      216,548     $           216,548

                                                                83
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Law Library - Fund 237                                                                             Variance with
                                                                                                   Final Budget
                                        Original             Final                                   Favorable
                                        Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services    $         1,000     $           1,000   $       86,108     $            85,108
   Intergovernmental Revenues                73,000             73,000                     -                (73,000)
   Other Revenues                             2,000                 2,000                  -                 (2,000)
Total Revenues                               76,000             76,000              86,108                  10,108
Expenditures:
   Personal Services                         63,390             63,390              62,126                   1,264
   Materials & Services                      63,241             63,241              40,563                  22,678
   Interfund Payment for Services            13,369             13,369              13,369                         -
   Capital Outlay                             6,000                 6,000                836                 5,164
Total Expenditures                          146,000            146,000             116,894                  29,106


Net change in Fund Balances                  (70,000)          (70,000)             (30,786)                39,214


Fund Balances - July 1, 2003                 70,000             70,000              48,431                  (21,569)
Fund Balances - June 30, 2004       $              -    $               -   $       17,645     $            17,645




Library Trust - Fund 702                                                                           Variance with
                                                                                                   Final Budget
                                        Original            Final                                   Favorable
                                        Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services             23,000             23,000              11,892     $            (11,108)
   Other Revenues                   $         3,000     $           3,000   $        1,359     $             (1,641)
Total Revenues                               26,000             26,000              13,251                  (12,749)
Expenditures:
   Materials & Services                      38,600             38,600               6,225                  32,375
   Interfund Payment for Services             2,208                 2,208            2,208                         -
   Capital Outlay                            14,000             14,000               2,101                  11,899
   Contingency                               81,192             81,192                     -                81,192
Total Expenditures                          136,000            136,000              10,534                 125,466


Net change in Fund Balances                (110,000)          (110,000)              2,717                 112,717


Fund Balances - July 1, 2003                110,000            110,000             111,621                   1,621
Fund Balances - June 30, 2004       $              -    $               -   $      114,338     $           114,338




                                                   84
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Kaye Jean Turner - Fund 710                                                                                   Variance with
                                                                                                              Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
   Other Revenues                              $         2,000     $           2,000   $            817   $             (1,183)
Total Revenues                                           2,000                 2,000                817                 (1,183)
Expenditures:
   Materials & Services                                 15,000             15,000               4,114                  10,886
   Contingency                                          50,000             50,000                     -                50,000
Total Expenditures                                      65,000             65,000               4,114                  60,886


Net change in Fund Balances                             (63,000)          (63,000)              (3,297)                59,703


Fund Balances - July 1, 2003                            63,000             63,000              63,776                        776
Fund Balances - June 30, 2004                  $              -    $               -   $       60,479     $            60,479




Parks Operating - Fund 260                                                                                    Variance with
                                                                                                              Final Budget
                                                   Original            Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $       400,652     $      400,652      $      474,098     $            73,446
   Intergovernmental Revenues                          393,900            428,900             366,495                  (62,405)
   Other Revenues                                        2,000             76,905             154,699                  77,794
Total Revenues                                         796,552            906,457             995,292                  88,835
Expenditures:
   Personal Services                                   463,764            430,621             391,914                  38,707
   Materials & Services                                192,293            282,870             264,127                  18,743
   Interfund Payment for Services                      142,330            146,330             145,544                        786
   Capital Outlay                                       23,165            101,636              99,631                   2,005
Total Expenditures                                     821,552            961,457             901,216                  60,241


Excess of Revenues Over (Under) Expenditures            (25,000)          (55,000)             94,076                 149,076


Other Financing Sources (Uses):
  Transfers In                                          25,000             55,000              55,000                          -
Total Other Financing Sources (Uses)                    25,000             55,000              55,000                          -


Net change in Fund Balances                                   -                    -          149,076                 149,076


Fund Balances - July 1, 2003                                  -                    -            1,434                   1,434
Fund Balances - June 30, 2004                  $              -    $               -   $      150,510     $           150,510




                                                              85
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

4H Extension - Fund 222                                                                                       Variance with
                                                                                                              Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
 Taxes                                         $       174,050     $      174,050      $      185,112     $            11,062
  Fees and Charges for Services                         18,055             18,055               2,106                  (15,949)
Total Revenues                                         192,105            192,105             187,218                   (4,887)
Expenditures:
   Personal Services                                          -                    -                  -                        -
   Materials & Services                                  1,150                 1,150            1,150                          -
   Interfund Payment for Services                             -                    -                  -                        -
   Intergovernmental Payments                          210,955            210,955             184,858                  26,097
Total Expenditures                                     212,105            212,105             186,008                  26,097


Net change in Fund Balances                             (20,000)          (20,000)              1,210                  21,210


Fund Balances - July 1, 2003                           120,000            120,000               (1,189)               (121,189)
Fund Balances - June 30, 2004                  $       100,000     $      100,000      $             21   $            (99,979)




Commission for Children and Families - Fund 720                                                               Variance with
                                                                                                              Final Budget
                                                   Original            Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $        20,000     $       20,840      $            840   $            (20,000)
   Intergovernmental Revenues                          621,052            512,605             502,502                  (10,103)
   Other Revenues                                        2,200                 2,531            2,565                         34
Total Revenues                                         643,252            535,976             505,907                  (30,069)
Expenditures:
   Personal Services                                   135,864            135,864             135,460                        404
   Materials & Services                                590,727            328,588             307,923                  20,665
   Interfund Payment for Services                       31,778             31,778              31,778                          -
   Intergovernmental Payments                                              33,807              31,826                    1,981
Total Expenditures                                     758,369            530,037             506,987                  23,050


Excess of Revenues Over (Under) Expenditures          (115,117)                5,939            (1,080)                 (7,019)


Other Financing Sources (Uses):
  Transfers In                                         230,453            253,984             231,942                  (22,042)
  Transfers Out                                       (115,336)          (240,445)           (203,448)                 36,997
Total Other Financing Sources (Uses)                   115,117             13,539              28,494                  14,955


Net change in Fund Balances                                   -            19,478              27,414                    7,936


Fund Balances - July 1, 2003                                  -           126,421             126,421                          -
Fund Balances - June 30, 2004                  $              -    $      145,899      $      153,835     $              7,936




                                                              86
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Community Services - Fund 208                                                                                  Variance with
                                                                                                               Final Budget
                                                   Original              Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $         3,100      $       11,750      $       11,946     $                  196
   Intergovernmental Revenues                        1,398,990            1,693,354          1,360,516                 (332,838)
   Other Revenues                                       54,323              42,264              49,015                    6,751
Total Revenues                                       1,456,413            1,747,368          1,421,477                 (325,891)
Expenditures:
   Personal Services                                   423,716             485,467             467,263                  18,204
   Materials & Services                                959,717            1,126,261            958,150                 168,111
   Interfund Payment for Services                      117,357             110,750             115,842                   (5,092)
   Contingency                                          45,620             206,649                     -               206,649
Total Expenditures                                   1,546,410            1,929,127          1,541,255                 387,872
Excess of Revenues Over (Under) Expenditures            (89,997)           (181,759)          (119,778)                 61,981


Other Financing Sources (Uses):
  Transfers In                                          49,872              49,872              52,205                    2,333
  Transfers Out                                         (29,297)            (46,848)            (29,580)                17,268
Total Other Financing Sources (Uses)                    20,575                  3,024           22,625                  19,601


Net change in Fund Balances                             (69,422)           (178,735)            (97,153)                81,582


Fund Balances - July 1, 2003                            69,422             178,735             178,735                          -
Fund Balances - June 30, 2004                  $                -   $               -   $       81,582     $            81,582


Food Share - Fund 230                                                                                          Variance with
                                                                                                               Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $        40,000      $       36,900      $       39,028     $              2,128
   Intergovernmental Revenues                           67,921              57,743              60,389                    2,646
   Other Revenues                                       74,036             118,788             122,426                    3,638
Total Revenues                                         181,957             213,431             221,843                    8,412
Expenditures:
   Personal Services                                   117,832             147,461             143,486                    3,975
   Materials & Services                                 57,397              81,500              86,110                   (4,610)
   Interfund Payment for Services                       45,143              46,529              44,642                    1,887
   Contingency                                          18,520                  9,087                  -                  9,087
Total Expenditures                                     238,892             284,577             274,238                  10,339
Excess of Revenues Over (Under) Expenditures            (56,935)            (71,146)            (52,395)                18,751


Other Financing Sources (Uses):
  Transfers In                                                408                408                 408                        -
  Transfers Out                                                 -            (9,872)             (9,872)                        -
Total Other Financing Sources (Uses)                          408            (9,464)             (9,464)                        -


Net change in Fund Balances                             (56,527)            (80,610)            (61,859)                18,751


Fund Balances - July 1, 2003                            56,527              80,610              80,610                          -
Fund Balances - June 30, 2004                  $                -   $               -   $       18,751     $            18,751
                                                               87
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Special Transportation - Fund 245                                                                    Variance with
                                                                                                     Final Budget
                                          Original             Final                                   Favorable
                                          Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services      $       171,580     $       60,348      $      157,711     $            97,363
   Intergovernmental Revenues                 368,081            681,729             616,596                  (65,133)
   Other Revenues                             289,459            230,350              82,637                 (147,713)
Total Revenues                                829,120            972,427             856,944                 (115,483)
Expenditures:
   Personal Services                          468,283            465,614             461,905                    3,709
   Materials & Services                        83,543             77,016              77,083                         (67)
   Interfund Payment for Services             154,325            154,348             164,346                   (9,998)
   Capital Outlay                             179,460            282,824             170,044                 112,780
   Contingency                                       -                    -                  -                         -
Total Expenditures                            885,611            979,802             873,378                 106,424


Net change in Fund Balances                    (56,491)           (7,375)             (16,434)                 (9,059)


Fund Balances - July 1, 2003                   56,491                 7,375            7,375                           -
Fund Balances - June 30, 2004         $              -    $               -   $        (9,059)   $             (9,059)




Jennifer Patton Memorial - Fund 242                                                                  Variance with
                                                                                                     Final Budget
                                          Original            Final                                   Favorable
                                          Budget              Budget              Actual             (Unfavorable)
Revenues:
   Other Revenues                     $        20,000     $       20,000      $       10,573     $             (9,427)
Total Revenues                                 20,000             20,000              10,573                   (9,427)
Expenditures:
   Materials & Services                        20,000             20,000               9,893                  10,107
   Capital Outlay                                    -                1,000                                     1,000
Total Expenditures                             20,000             21,000               9,893                  11,107


Net change in Fund Balances                          -            (1,000)                  680                  1,680


Fund Balances - July 1, 2003                         -                1,000            6,686                    5,686
Fund Balances - June 30, 2004         $              -    $               -   $        7,366     $              7,366




                                                     88
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Developmentally Disabled Services - Fund 251                                                                     Variance with
                                                                                                                 Final Budget
                                                   Original                Final                                   Favorable
                                                   Budget                 Budget              Actual             (Unfavorable)
Revenues:
   Intergovernmental Revenues                  $     4,865,083        $     5,006,644     $    4,463,322     $           (543,322)
   Other Revenues                                                -                    -            7,183                    7,183
Total Revenues                                       4,865,083              5,006,644          4,470,505                 (536,139)
Expenditures:
   Personal Services                                 1,060,243              1,067,834          1,009,832                  58,002
   Materials & Services                                428,499               585,848             433,362                 152,486
   Interfund Payment for Services                       84,454                84,454              80,588                    3,866
   Intergovernmental Payments                        3,342,706              3,367,827          2,936,096                 431,731
   Capital Outlay                                                -                1,500            1,665                      (165)
Total Expenditures                                   4,915,902              5,107,463          4,461,543                 645,920
Excess of Revenues Over (Under) Expenditures            (50,819)             (100,819)             8,962                 109,781


Other Financing Sources (Uses):
  Transfers In                                          50,000               100,819              25,819                  (75,000)
Total Other Financing Sources (Uses)                    50,000               100,819              25,819                  (75,000)


Net change in Fund Balances                                   (819)                   -           34,781                  34,781


Fund Balances - July 1, 2003                                     -                    -          391,497                 391,497
Fund Balances - June 30, 2004                  $              (819)   $               -   $      426,278     $           426,278


ESCE Early Intervention - Fund 252                                                                               Variance with
                                                                                                                 Final Budget
                                                   Original               Final                                   Favorable
                                                   Budget                 Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $       133,504        $      143,554      $      150,109     $              6,555
   Intergovernmental Revenues                        1,195,926              1,535,221          1,303,263                 (231,958)
   Other Revenues                                                -                2,706            5,368                    2,662
Total Revenues                                       1,329,430              1,681,481          1,458,740                 (222,741)
Expenditures:
   Personal Services                                 1,285,129              1,486,089          1,233,429                 252,660
   Materials & Services                                114,114               258,205             199,930                  58,275
   Interfund Payment for Services                      110,784               110,784             109,624                    1,160
   Capital Outlay                                        4,250                    6,250            3,103                    3,147
Total Expenditures                                   1,514,277              1,861,328          1,546,086                 315,242
Excess of Revenues Over (Under) Expenditures          (184,847)              (179,847)            (87,346)                92,501


Other Financing Sources (Uses):
  Transfers In                                         110,564               115,564             128,084                  12,520
  Transfers Out                                                  -            (10,000)            (10,000)                       -
Total Other Financing Sources (Uses)                   110,564               105,564             118,084                  12,520


Net change in Fund Balances                             (74,283)              (74,283)            30,738                 105,021


Fund Balances - July 1, 2003                            74,283                74,283              31,489                  (42,794)
Fund Balances - June 30, 2004                  $                 -    $               -   $       62,227     $            62,227

                                                                89
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Alcohol & Drug - Fund 253                                                                                      Variance with
                                                                                                               Final Budget
                                                    Original             Final                                   Favorable
                                                    Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $         66,000     $       66,000      $       48,111     $            (17,889)
   Intergovernmental Revenues                         1,598,968           1,873,724          1,268,376                 (605,348)
   Other Revenues                                         6,800                 6,800                 -                  (6,800)
Total Revenues                                        1,671,768           1,946,524          1,316,487                 (630,037)
Expenditures:
   Personal Services                                    693,595            693,595             469,933                 223,662
   Materials & Services                                 410,848            412,062             195,054                 217,008
   Interfund Payment for Services                        41,215             41,215              40,245                        970
   Intergovernmental Payments                           481,435            684,928             607,922                  77,006
   Capital Outlay                                         4,800                 4,800                55                   4,745
Total Expenditures                                    1,631,893           1,836,600          1,313,209                 523,391
Excess of Revenues Over (Under) Expenditures             39,875            109,924               3,278                 (106,646)
Other Financing Sources (Uses):
  Transfers In                                           21,883             21,883             226,129                 204,246
  Transfers Out                                        (213,000)           (283,049)          (216,794)                 66,255
Total Other Financing Sources (Uses)                   (191,117)           (261,166)             9,335                 270,501


Net change in Fund Balances                            (151,242)           (151,242)            12,613                 163,855


Fund Balances - July 1, 2003                            151,242            151,242             318,296                 167,054
Fund Balances - June 30, 2004                  $               -    $               -   $      330,909     $           330,909


Secured Residential Treatment Facility - Fund 270                                                              Variance with
                                                                                                               Final Budget
                                                    Original            Final                                   Favorable
                                                    Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $         82,502     $       82,502      $       97,363     $            14,861
   Intergovernmental Revenues                         1,446,374           1,446,374          1,380,596                  (65,778)
   Other Revenues                                         2,600                 2,600                10                  (2,590)
Total Revenues                                        1,531,476           1,531,476          1,477,969                  (53,507)
Expenditures:
   Personal Services                                  1,182,911           1,272,911          1,284,061                  (11,150)
   Materials & Services                                  91,599            231,599             172,824                  58,775
   Interfund Payment for Services                       143,838            143,838             133,478                  10,360
   Debt Service                                          29,000             29,000              16,049                  12,951
Total Expenditures                                    1,447,348           1,677,348          1,606,412                  70,936
Excess of Revenues Over (Under) Expenditures             84,128            (145,872)          (128,443)                 17,429
Other Financing Sources (Uses):
  Transfers In                                                 -            50,000              39,000                  (11,000)
  Transfers Out                                        (180,000)                    -                 -                         -
Total Other Financing Sources (Uses)                   (180,000)            50,000              39,000                  (11,000)


Net change in Fund Balances                              (95,872)           (95,872)            (89,443)                  6,429


Fund Balances - July 1, 2003                             95,872             95,872              92,996                   (2,876)
Fund Balances - June 30, 2004                  $               -    $               -   $        3,553     $              3,553

                                                               90
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Special Revenue Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004


Zelzie Reed Early Intervention - Fund 726                                                                  Variance with
                                                                                                           Final Budget
                                                Original              Final                                  Favorable
                                                Budget               Budget             Actual             (Unfavorable)
Revenues:
   Other Revenues                           $              450   $            450   $            202   $                (248)
Total Revenues                                             450                450                202                    (248)
Expenditures:
   Materials & Services                                    450                450                  -                      450
Total Expenditures                                         450                450                  -                      450


Net change in Fund Balances                                  -                  -                202                      202


Fund Balances - July 1, 2003                                 -                  -           15,284                  15,284
Fund Balances - June 30, 2004               $                -   $              -   $       15,486     $            15,486




College Dreams - Fund 727                                                                                  Variance with
                                                                                                           Final Budget
                                                Original             Final                                  Favorable
                                                Budget               Budget             Actual             (Unfavorable)
Revenues:
   Other Revenues                           $         4,000      $       14,000     $       14,540     $                  540
Total Revenues                                        4,000              14,000             14,540                        540
Expenditures:
   Materials & Services                               4,000              14,000                    -                14,000
Total Expenditures                                    4,000              14,000                    -                14,000


Net change in Fund Balances                                  -                  -           14,540                  14,540


Fund Balances - July 1, 2003                                 -                  -           64,334                  64,334
Fund Balances - June 30, 2004               $                -   $              -   $       78,874     $            78,874




                                                            91
                                       JOSEPHINE COUNTY, OREGON
                                        Nonmajor Debt Service Funds

Combining Balance Sheet
June 30, 2004
                                                                                   Adult Jail            Payroll            North Valley
                                          Energy               PERS                 Facility             Liabilty            Industrial
                                       Improvements         Bonded Debt           Debt Service           Reserve               Park
                                           Fund                Fund                  Fund                 Fund                 Fund
Assets:
 Current Assets:
   Cash & Investments                  $          59    $        201,577      $         147,531      $       426,483    $         129,662
   Taxes Receivable                                -                   -                 52,734                    -                    -
   Other Receivables                           1,492                 157                      -                    -               44,917
   Due From Other Governments                      -                   -                      -                    -                    -
   Due From Other Funds                            -                   -                      -              597,509                    -
Total Assets                           $       1,551    $        201,734      $         200,265      $     1,023,992    $         174,579


Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                   $           -    $                 -   $               -      $              7   $          16,619
    Accrued Payroll Liabilities                    -                      -                   -                     -                   -
    Due To Other Governments                       -                      -                   -                     -                   -
    Due To Other Funds                             -                      -                   -                     -              13,758
    Deferred Revenue                               -                      -              52,734                     -              31,000
    Other Liabilities                                                                         -                     -                   -
Total Liabilities                                  -                      -              52,734                     7              61,377

Fund Balances:
 Reserved for Debt Service                         -             201,734                147,531                    -                    -
 Unreserved Fund Balance                       1,551                   -                      -            1,023,985              113,202
Total Fund Balances                            1,551 -           201,734 -              147,531 -          1,023,985 -            113,202
Total Liabilities and Fund Balances    $       1,551   $         201,734   $            200,265   $        1,023,992   $        1,549,403



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                 $           -    $              -      $       1,160,551      $             -    $               -
 Fees and Charges for Services                     -                   -                      -                    -                5,661
 Interfund Charges for Services                    -             832,970                      -            2,086,010                    -
 Other Revenues                                1,558               2,795                 54,860                1,004                2,345
Total Revenues                                 1,558             835,765              1,215,411            2,087,014                8,006

Expenditures:
 General Government                                -                      -                      -         1,208,919                    -
 Community Development                             -                      -                      -                 -               33,683
 Debt Service:                                                                                                                          -
   Principal                                  19,009             305,000                585,000                    -              171,493
   Interest                                    1,475             495,594                548,100                    -                    -
Total Expenditures                            20,484             800,594              1,133,100            1,208,919              205,176

Excess of Revenues Over (Under)
    Expenditures                             (18,926)             35,171                 82,311              878,095             (197,170)

Other Financing Sources (Uses):
 Transfers In                                 20,473                      -                      -                  -                      -
 Transfers Out                                     -                      -                      -                  -                      -
Total Other Financing Sources (Uses)          20,473                      -                      -                  -                      -

Net change in Fund Balances                    1,547              35,171                 82,311              878,095             (197,170)
Fund Balances - July 1, 2003                       4             166,563                 65,220              145,890              310,372
Fund Balances - June 30, 2004          $       1,551    $        201,734      $         147,531      $     1,023,985    $         113,202



                                                                 92
                                           JOSEPHINE COUNTY, OREGON
                                       Nonmajor Debt Service Funds (Continued)

Combining Balance Sheet
June 30, 2004
                                                                                      Total
                                                             Crestview              Nonmajor
                                                            Debt Service           Debt Service
                                                               Fund                  Funds
Assets:
 Current Assets:
   Cash & Investments                                   $              23      $         905,335
   Taxes Receivable                                                        -              52,734
   Other Receivables                                                       -              46,566
   Due From Other Governments                                              -                   -
   Due From Other Funds                                                                  597,509
Total Assets                                            $              23      $       1,602,144


Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                                    $                  -   $          16,626
    Accrued Payroll Liabilities                                            -                   -
    Due To Other Governments                                               -                   -
    Due To Other Funds                                                     -              13,758
    Deferred Revenue                                                       -              83,734
    Other Liabilities                                                      -                   -
Total Liabilities                                                          -             114,118

Fund Balances:
 Reserved for Debt Service                                             -                 349,265
 Unreserved Fund Balance                                               23              1,138,761
Total Fund Balances                                                    23              1,488,026
Total Liabilities and Fund Balances                     $              23      $       1,602,144



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Taxes                                                  $              -       $       1,160,551
 Fees and Charges for Services                                          -                  5,661
 Interfund Charges for Services                                         -              2,918,980
 Other Revenues                                                     5,382                 67,944
Total Revenues                                                      5,382              4,153,136

Expenditures:
 General Government                                                        -           1,208,919
 Community Development                                                     -              33,683
 Debt Service:
   Principal                                                        1,640              1,082,142
   Interest                                                         3,740              1,048,909
Total Expenditures                                                  5,380              3,373,653

Excess of Revenues Over (Under)
    Expenditures                                                           2             779,483

Other Financing Sources (Uses):
 Transfers In                                                              -              20,473
 Transfers Out                                                             -                   -
Total Other Financing Sources (Uses)                                       -              20,473

Net change in Fund Balances                                             2                799,956
Fund Balances - July 1, 2003                                           21                688,070
Fund Balances - June 30, 2004                           $              23      $       1,488,026



                                                                  93
                                JOSEPHINE COUNTY, OREGON
                                 Nonmajor Debt Service Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

North Valley Industrial Park - Fund 601                                                                   Variance with
                                                                                                          Final Budget
                                              Original              Final                                   Favorable
                                              Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services          $        12,572      $       12,572      $        5,661     $             (6,911)
   Other Revenues                                          -                   -            2,345                   2,345
Total Revenues                                     12,572              12,572               8,006                   (4,566)
Expenditures:
   Materials & Services                            10,000              10,000                   313                 9,687
   Interfund Payment for Services                  13,577              13,577              17,335                   (3,758)
   Intergovernmental Payments                      16,000              16,000              16,035                         (35)
   Debt Service                                     1,498             171,498             171,493                           5
Total Expenditures                                 41,075             211,075             205,176                   5,899


Net change in Fund Balances                        (28,503)          (198,503)           (197,170)                  1,333


Fund Balances - July 1, 2003                       50,109             220,109             310,372                  90,263
Fund Balances - June 30, 2004             $        21,606      $       21,606      $      113,202     $            91,596




Crestview Debt Service - Fund 603                                                                         Variance with
                                                                                                          Final Budget
                                              Original             Final                                   Favorable
                                              Budget               Budget              Actual             (Unfavorable)
Revenues:
   Other Revenues                         $         5,885      $           5,885   $        5,382     $                (503)
Total Revenues                                      5,885                  5,885            5,382                      (503)
Expenditures:
   Debt Service                                     5,380                  5,380            5,380                           -
Total Expenditures                                  5,380                  5,380            5,380                           -


Net change in Fund Balances                              505                505                   2                    (503)


Fund Balances - July 1, 2003                        1,512                  1,512                 21                 (1,491)
Fund Balances - June 30, 2004             $         2,017      $           2,017   $             23   $             (1,994)




                                                          94
                                JOSEPHINE COUNTY, OREGON
                           Nonmajor Debt Service Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004


Energy Improvements - Fund 605                                                                                     Variance with
                                                                                                                   Final Budget
                                                   Original              Final                                       Favorable
                                                   Budget               Budget              Actual                 (Unfavorable)
Revenues:
   Other Revenues                              $              100   $            100    $        1,558         $             1,458
Total Revenues                                                100                100             1,558                       1,458
Expenditures:
   Interfund Payment for Services                              89                 89                  -                            89
   Debt Service                                         20,484              20,484              20,484                              -
Total Expenditures                                      20,573              20,573              20,484                             89


Excess of Revenues Over (Under) Expenditures            (20,473)           (20,473)             (18,926)                     1,547


Other Financing Sources (Uses):
  Transfers In                                          20,473              20,473              20,473                              -
Total Other Financing Sources (Uses)                    20,473              20,473              20,473                              -


Net change in Fund Balances                                     -                   -            1,547                       1,547


Fund Balances - July 1, 2003                                    -                   -                 4                             4
Fund Balances - June 30, 2004                  $                -   $               -   $        1,551         $             1,551




PERS Bonded Debt Fund - Fund 610                                                                                   Variance with
                                                                                                                   Final Budget
                                                   Original             Final                                       Favorable
                                                   Budget               Budget              Actual                 (Unfavorable)
Revenues:
   Interfund Charges for Services              $       866,035      $      866,035      $      832,970         $            (33,065)
   Other Revenues                                        1,275                  1,275            2,795                       1,520
Total Revenues                                         867,310             867,310             835,765                      (31,545)
Expenditures:
   Debt Service                                        800,594             800,594             800,594                              -
Total Expenditures                                     800,594             800,594             800,594                              -


Net change in Fund Balances                             66,716 -            66,716 -            35,171     -                (31,545)


Fund Balances - July 1, 2003                                    -                   -          166,563                     166,563
Fund Balances - June 30, 2004                  $        66,716      $       66,716      $      201,734         $           135,018




                                                               95
                                JOSEPHINE COUNTY, OREGON
                           Nonmajor Debt Service Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Adult Jail Facility Debt Service - Fund 625                                                                Variance with
                                                                                                           Final Budget
                                                  Original             Final                                 Favorable
                                                  Budget              Budget              Actual           (Unfavorable)
Revenues:
 Taxes                                        $     1,168,491     $     1,168,491     $    1,160,551   $             (7,940)
   Other Revenues                                      13,000             13,000              54,860                41,860
Total Revenues                                      1,181,491           1,181,491          1,215,411                33,920
Expenditures:
   Debt Service                                     1,133,100           1,133,100          1,133,100                        -
Total Expenditures                                  1,133,100           1,133,100          1,133,100                        -


Net change in Fund Balances                            48,391             48,391              82,311                33,920


Fund Balances - July 1, 2003                           98,609             98,609              65,220                (33,389)
Fund Balances - June 30, 2004                 $       147,000     $      147,000      $      147,531   $                  531




Payroll Liability Reserve - Fund 651                                                                       Variance with
                                                                                                           Final Budget
                                                  Original            Final                                 Favorable
                                                  Budget              Budget              Actual           (Unfavorable)
Revenues:
   Interfund Charges for Services             $     1,072,238     $     1,572,238     $    2,086,010   $           513,772
   Other Revenues                                       7,000                 7,000            1,004                 (5,996)
Total Revenues                                      1,079,238           1,579,238          2,087,014               507,776
Expenditures:
   Personal Services                                1,238,837           1,725,238          1,208,919               516,319
   Contingency                                        140,401                     -                -                        -
Total Expenditures                                  1,379,238           1,725,238          1,208,919               516,319


Net change in Fund Balances                          (300,000)           (146,000)           878,095             1,024,095


Fund Balances - July 1, 2003                          300,000            146,000             145,890                    (110)
Fund Balances - June 30, 2004                 $              -    $               -   $    1,023,985   $         1,023,985




                                                             96
                                       JOSEPHINE COUNTY, OREGON
                                       Nonmajor Capital Project Funds

Combining Balance Sheet
June 30, 2004
                                            Search &
                                             Rescue                                                           Disposal           Total
                                             Building               ADA                 Revolving               Sites          Nonmajor
                                           Construction           Compliance           Construction           Closure        Capital Project
                                              Fund                  Fund                  Fund                  Fund            Funds
Assets:
 Current Assets:
   Cash & Investments                  $          75,282      $           1,388    $         113,219      $         1,532    $      191,421
   Other Receivables                                   -                      2               29,140                    2            29,144
   Due From Other Funds                                -                 15,000                    -                8,500            23,500
Total Assets                           $          75,282      $          16,390    $         142,359      $        10,034    $      244,065

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                   $            442       $           7,781    $                  -   $        10,134    $       18,357
    Due To Other Funds                                -                       -                       -           117,251           117,251
Total Liabilities                                   442                   7,781                       -           127,385           135,608

Fund Balances:
 Unreserved Fund Balance                          74,840                  8,609              142,359             (117,351)          108,457
Total Fund Balances                               74,840                  8,609              142,359             (117,351)          108,457
Total Liabilities and Fund Balances    $          75,282      $          16,390    $         142,359      $        10,034    $      244,065




Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Fees and Charges for Services         $                  -   $              -     $          50,239      $         5,359    $       55,598
 Intergovernmental Revenues                               -                  -                     -              150,000           150,000
 Other Revenues                                           -                 18                   974                    -               992
Total Revenues                                            -                 18                51,213              155,359           206,590

Expenditures:
 Public Works                                     25,160                  7,781                       -           254,885           287,826
Total Expenditures                                25,160                  7,781                       -           254,885           287,826

Excess of Revenues Over (Under)
    Expenditures                                 (25,160)                (7,763)              51,213              (99,526)           (81,236)

Other Financing Sources (Uses):
 Transfers In                                    100,000                 15,000               36,661               77,329           228,990
 Transfers Out                                         -                      -                    -                    -                 -
Total Other Financing Sources (Uses)             100,000                 15,000               36,661               77,329           228,990

Net change in Fund Balances                       74,840                  7,237               87,874              (22,197)          147,754
Fund Balances - July 1, 2003                           -                  1,372               54,485              (95,154)          (39,297)
Fund Balances - June 30, 2004          $          74,840      $           8,609    $         142,359      $      (117,351)   $      108,457




                                                                    97
                                JOSEPHINE COUNTY, OREGON
                                Nonmajor Capital Project Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Search & Rescue Building Construction - Fund 301                                                              Variance with
                                                                                                              Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $               -   $               -   $             -    $                     -
Total Revenues                                                 -                   -                 -                          -
Expenditures:
   Capital Outlay                                              -          200,000              25,160                 174,840
Total Expenditures                                             -          200,000              25,160                 174,840


Excess of Revenues Over (Under) Expenditures                   -         (200,000)             (25,160)               174,840


Other Financing Sources (Uses):
  Transfers In                                                 -          200,000             100,000                 (100,000)
Total Other Financing Sources (Uses)                           -          200,000             100,000                 (100,000)


Net change in Fund Balances                                    -                   -           74,840                  74,840


Fund Balances - July 1, 2003                                   -                   -                 -                          -
Fund Balances - June 30, 2004                  $               -   $               -   $       74,840     $            74,840




ADA Compliance - Fund 311                                                                                     Variance with
                                                                                                              Final Budget
                                                   Original            Final                                   Favorable
                                                   Budget              Budget              Actual             (Unfavorable)
Revenues:
   Other Revenues                              $              20   $             20    $            18    $                    (2)
Total Revenues                                                20                 20                 18                         (2)
Expenditures:
   Materials & Services                                 16,420             16,420               7,781                    8,639
Total Expenditures                                      16,420             16,420               7,781                    8,639


Excess of Revenues Over (Under) Expenditures            (16,400)          (16,400)              (7,763)                  8,637


Other Financing Sources (Uses):
  Transfers In                                          15,000             15,000              15,000                           -
Total Other Financing Sources (Uses)                    15,000             15,000              15,000                           -


Net change in Fund Balances                              (1,400)           (1,400)              7,237                    8,637


Fund Balances - July 1, 2003                             1,400                 1,400            1,372                         (28)
Fund Balances - June 30, 2004                  $               -   $               -   $        8,609     $              8,609




                                                              98
                                JOSEPHINE COUNTY, OREGON
                         Nonmajor Capital Project Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

Revolving Construction - Fund 302                                                                              Variance with
                                                                                                               Final Budget
                                                   Original              Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $         7,000      $           7,000   $       50,239     $            43,239
   Other Revenues                                             300                300                 974                      674
Total Revenues                                           7,300                  7,300           51,213                  43,913
Expenditures:
   Interfund Payment for Services                       58,242              58,242                     -                58,242
Total Expenditures                                      58,242              58,242                     -                58,242


Excess of Revenues Over (Under) Expenditures            (50,942)            (50,942)            51,213                 102,155


Other Financing Sources (Uses):
  Transfers In                                                  -                   -           36,661                  36,661
Total Other Financing Sources (Uses)                            -                   -           36,661                  36,661


Net change in Fund Balances                             (50,942)            (50,942)            87,874                 138,816


Fund Balances - July 1, 2003                            50,942              50,942              54,485                    3,543
Fund Balances - June 30, 2004                  $                -   $               -   $      142,359     $           142,359




Disposal Sites Closure - Fund 357                                                                              Variance with
                                                                                                               Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $         4,000      $           4,000   $        5,359     $              1,359
   Intergovernmental Revenues                        1,700,000            1,700,000            150,000               (1,550,000)
Total Revenues                                       1,704,000            1,704,000            155,359               (1,548,641)
Expenditures:
   Materials & Services                                312,869             312,869              83,460                 229,409
   Interfund Payment for Services                       35,461              35,461              21,165                  14,296
   Capital Outlay                                    1,465,670            1,465,670            150,260               1,315,410
Total Expenditures                                   1,814,000            1,814,000            254,885               1,559,115


Excess of Revenues Over (Under) Expenditures          (110,000)            (110,000)            (99,526)                10,474


Other Financing Sources (Uses):
  Transfers In                                         110,000             110,000              77,329                  (32,671)
Total Other Financing Sources (Uses)                   110,000             110,000              77,329                  (32,671)


Net change in Fund Balances                                     -                   -           (22,197)                (22,197)


Fund Balances - July 1, 2003                                    -                   -           (95,154)                (95,154)
Fund Balances - June 30, 2004                  $                -   $               -   $     (117,351)    $           (117,351)




                                                               99
                                       JOSEPHINE COUNTY, OREGON
                                        Nonmajor Permanent Funds

Combining Balance Sheet
June 30, 2004
                                                             William              George R.                Total
                                                            MacKenzie             Borders                Nonmajor
                                                              Trust               Memorial               Permanent
                                                              Fund                 Fund                    Funds
Assets:
 Current Assets:
   Cash & Investments                                $            66,383      $        415,134       $        481,517
   Taxes Receivable                                                     -                      -                      -
   Other Receivables                                                  81                  5,509                  5,590
   Due From Other Governments                                           -                      -                      -
   Due From Other Funds                                                 -                      -                      -
   Other Assets                                                         -                61,850                 61,850
Total Assets                                            $         66,464      $        482,493       $        548,957

Liabilities and Fund Balances:
  Liabilities:
    Accounts Payable                                 $                    -   $                  -   $                     -
    Accrued Payroll Liabilities                                           -                      -                         -
    Due To Other Governments                                              -                      -                         -
    Due To Other Funds                                                    -                      -                         -
    Deferred Revenue                                                      -                      -                         -
    Other Liabilities                                                     -                                                -
Total Liabilities                                                         -                      -                         -

Fund Balances:
 Reserved for Permanent Endowment                                       -              367,410                367,410
 Unreserved Fund Balance                                          66,464               115,083                181,547
Total Fund Balances                                               66,464               482,493                548,957
Total Liabilities and Fund Balances                     $         66,464      $        482,493       $        548,957



Combining Statement of Revenues,
Expenditures and Fund Balances
for the year ended June 30, 2004

Revenues:
 Other Revenues                                      $                  845   $         10,476       $         11,321
Total Revenues                                                          845             10,476                 11,321

Expenditures:
 General Government                                                       -                  -                           -
 Public Safety                                                            -                  -                           -
 Culture and Recreation                                                   -              1,459                      1,459
 Community Development                                                    -                  -                           -
 Human Services                                                           -                  -                           -
Total Expenditures                                                        -              1,459                     1,459

Excess of Revenues Over (Under)
    Expenditures                                                        845              9,017                     9,862

Other Financing Sources (Uses):
 Transfers In                                                             -                   -                          -
 Transfers Out                                                            -                   -                          -
Total Other Financing Sources (Uses)                                      -                   -                         -

Net change in Fund Balances                                          845                 9,017                  9,862
Fund Balances - July 1, 2003                                      65,619               473,476                539,095
Fund Balances - June 30, 2004                           $         66,464      $        482,493       $        548,957




                                                  100
                                JOSEPHINE COUNTY, OREGON
                                 Nonmajor Permanent Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
for the year ended June 30, 2004

William MacKenzie Trust - Fund 712                                                                             Variance with
                                                                                                               Final Budget
                                                   Original              Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services               $               -    $               -   $              -   $                    -
   Other Revenues                                              -                    -                845                      845
Total Revenues                                                 -                    -                845                      845
Expenditures:
   Contingency                                                 -                5,000                  -                 5,000
Total Expenditures                                             -                5,000                  -                 5,000


Excess of Revenues Over (Under) Expenditures                   -            (5,000)                  845                 5,845


Other Financing Sources (Uses):
  Transfers In                                                 -                5,000                  -                 (5,000)
  Transfers Out                                                -                    -                  -                        -
Total Other Financing Sources (Uses)                           -                5,000                  -                 (5,000)


Net change in Fund Balances                                    -                    -                845                      845


Fund Balances - July 1, 2003                                   -                    -           65,619                  65,619
Fund Balances - June 30, 2004                  $               -    $               -   $       66,464     $            66,464




George R. Borders Memorial - Fund 744                                                                          Variance with
                                                                                                               Final Budget
                                                   Original             Final                                   Favorable
                                                   Budget               Budget              Actual             (Unfavorable)
Revenues:
   Other Revenues                              $        10,000      $       10,000      $       10,476     $                  476
Total Revenues                                          10,000              10,000              10,476                        476
Expenditures:
   Materials & Services                                 15,000              15,000                     -                15,000
   Interfund Payment for Services                        1,459                  1,459            1,459                          -
   Capital Outlay                                       88,541              88,541                                      88,541
Total Expenditures                                     105,000             105,000               1,459                 103,541


Net change in Fund Balances                             (95,000)           (95,000)              9,017                 104,017


Fund Balances - July 1, 2003                            95,000              95,000             473,476                 378,476
Fund Balances - June 30, 2004                  $               -    $               -   $      482,493     $           482,493




                                                              101
                         JOSEPHINE COUNTY, OREGON




                        NONMAJOR ENTERPRISE FUNDS

Illinois Valley Airport Fund This fund accounts for the operations of the county airport
located outside the city of Cave Junction, Oregon. User fees are the primary source of
revenue. Expenditures are for the administration and maintenance of the airport
buildings and grounds.

Jail Commissary Fund This fund was established to account for funds received by
inmates and revenue received by the inmate phone system. Expenditures are for the
enhancement of Josephine County Jail conditions.




                                           102
                                                   JOSEPHINE COUNTY, OREGON
                                                     Nonmajor Enterprise Funds

Combining Statement of Net Assets
June 30, 2004



                                                                                                Total
                                                        Illinois Valley       Jail            Nonmajor
                                                             Airport       Commissary         Enterprise
                                                              Fund           Fund              Funds

Assets:
  Current Assets:
    Cash & Investments                                  $        11,453    $     66,044   $         77,497
    Accounts Receivable                                               7           7,935              7,942
Total Current Assets                                             11,460          73,979             85,439


  Capital Assets:
    Land                                                        120,050               -            120,050
    Buildings and Improvements                                1,775,980               -           1,775,980
     Equipment                                                    4,226               -              4,226
     Construction in Progress                                         -               -                    -
     Less - Accumulated Depreciation                         (1,466,864)              -          (1,466,864)
Total Capital Assets, net of Accumulated Depreciation           433,392               -            433,392


Total Assets                                                    444,852          73,979            518,831


Liabilities:
  Current Liabilities:
    Accounts Payable                                               453             473                 926
    Accrued Payroll Liabilities                                   1,800               -              1,800
    Due to Other Funds                                                -               -                    -
Total Liabilities                                                 2,253            473               2,726


Net Assets:
  Invested in Capital Assets                                    433,392               -            433,392
  Unrestricted                                                    9,207          73,506             82,713
Total Net Assets                                        $       442,599    $     73,506   $        516,105




                                                                    103
                                           JOSEPHINE COUNTY
                                         Nonmajor Enterprise Funds

Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
for the year ended June 30, 2004



                                                                                Total
                                            Illinois Valley       Jail        Nonmajor
                                                 Airport       Commissary     Enterprise
                                                  Fund           Fund          Funds
Operating Revenues:
 Fees and Charges for Services                       22,352          49,547         71,899
 Intergovernmental Revenues                               -               -                -
Total Operating Revenues                             22,352          49,547         71,899


Operating Expenditures:
 Personal Services                                   33,725               -         33,725
 Materials & Services                                15,335          27,654         42,989
 Depreciation                                        80,447               -         80,447
 Interfund Payment for Services                      10,840           1,128         11,968
Total Operating Expenditures                        140,347          28,782        169,129


Operating Income (Loss)                            (117,995)         20,765        (97,230)


Nonoperating Revenues (Expenses)
 Interest Income                                       282             905           1,187
Total Nonoperating Revenues (Expenses)                 282             905           1,187


Net Income (Loss) Before Transfers                 (117,713)         21,670        (96,043)


Transfers In                                         12,000               -         12,000


Change in Net Assets                               (105,713)         21,670        (84,043)


Total Net Assets - July 1, 2003                     548,312          51,836        600,148
Total Net Assets - June 30, 2004                    442,599          73,506        516,105




                                                        104
                                                       JOSEPHINE COUNTY, OREGON
                                                         Nonmajor Enterprise Funds

Combining Statement of Cash Flows
for the year ended June 30, 2004                                                                      Total
                                                             Illinois Valley        Jail            Nonmajor
                                                                  Airport       Commissary          Enterprise
                                                                   Fund            Fund              Funds
Cash Flows from Operating Activities
 Cash received from users                                    $        22,345    $     42,600    $         64,945
 Cash received from other sources                                          -               -                     -
 Cash paid to suppliers                                              (26,118)        (28,395)            (54,513)
 Cash paid to employees                                              (34,059)              -             (34,059)
Net cash provided by (used in) operating activities                  (37,832)         14,205             (23,627)


Cash Flows from Non-capital Financing Activities
 Operating transfers made                                                  -               -                     -
 Operating transfers received                                         15,000               -              15,000


Net cash provided by noncapital financing activities                  15,000               -              15,000


Cash Flows from Investing Activities
 Interest income received                                               282             905                1,187
Net cash provided by investing activities                               282             905                1,187


Net Increase (Decrease) in Cash and Cash Equivalents                 (22,550)         15,110              (7,440)


Cash and Cash Equivalents - July 1, 2003                              34,003          50,934              84,937


Cash and Cash Equivalents - June 30, 2004                    $        11,453    $     66,044    $         77,497




Reconciliation of Net Operating Income (Loss)
to Net Cash Provided by Operating Activities

Operating Income (Loss)                                      $      (117,995)   $     20,765    $        (97,230)
Adjustments to reconcile operating income (loss) to
 net cash provided by (used in) operating activities:
   Depreciation                                                       80,447               -              80,447
   (Increase) Decrease in accounts receivable                             (7)         (6,947)             (6,954)
   Increase (Decrease) in accounts payable                                75            387                 462
   Increase (Decrease) in payroll payable                               (334)              -                (334)
   Increase (Decrease) in due to other governments                         -               -                     -
   Increase (Decrease) in deposits payable                               (18)              -                 (18)
     Total adjustments                                                80,163          (6,560)             73,603


Net cash provided by (used in) operating activities          $       (37,832)   $     14,205    $        (23,627)




                                                                       105
                                JOSEPHINE COUNTY, OREGON
                                  Nonmajor Enterprise Funds
Schedule of Revenues, Expenditures, and Changes in Net Assets
Budget and Actual
for the year ended June 30, 2004

Grants Pass Airport - Fund 530                                                                             Variance with
                                                                                                           Final Budget
                                               Original              Final                                   Favorable
                                               Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services           $       313,664      $      313,664      $      208,552     $           (105,112)
   Intergovernmental Revenues                      692,000             692,000             504,964                 (187,036)
   Other Revenues                                    5,000                  5,000            6,818                    1,818
Total Revenues                                   1,010,664            1,010,664            720,334                 (290,330)
Expenses:
   Personal Services                                93,454              93,454              61,139                  32,315
   Materials & Services                            992,887             992,887             295,737                 697,150
   Depreciation                                     77,800              77,800              68,052                    9,748
   Interfund Payment for Services                   22,323              22,323              16,723                    5,600
   Contingency                                       2,000                  2,000                  -                  2,000
Total Expenses                                   1,188,464            1,188,464            441,651                 746,813


Net change in Net Assets                          (177,800)            (177,800)           278,683                 456,483


Net Assets - July 1, 2003                          177,800             177,800           1,037,901                 860,101
Net Assets - June 30, 2004                 $               -    $               -   $    1,316,584     $         1,316,584




Illinois Valley Airport - Fund 531                                                                         Variance with
                                                                                                           Final Budget
                                               Original             Final                                   Favorable
                                               Budget               Budget              Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services           $        23,720      $       23,720      $       22,352     $             (1,368)
   Intergovernmental Revenues                      182,000             182,000                     -               (182,000)
   Other Revenues                                    5,900                  5,900                282                 (5,618)
Total Revenues                                     211,620             211,620              22,634                 (188,986)
Expenses:
   Personal Services                                30,472              35,772              33,725                    2,047
   Materials & Services                            211,332             205,832              15,335                 190,497
   Interfund Payment for Services                   10,816              11,016              10,840                        176
   Depreciation                                     82,500              82,500              80,447                    2,053
   Contingency                                       1,000                  1,000                  -                  1,000
Total Expenses                                     336,120             336,120             140,347                 195,773


Excess of Revenues Over (Under) Expenses          (124,500)            (124,500)          (117,713)                   6,787


Other Financing Sources (Uses):
  Transfers In                                      12,000              12,000              12,000                          -
Total Other Financing Sources (Uses)                12,000              12,000              12,000                          -


Net change in Net Assets                          (112,500)            (112,500)          (105,713)                   6,787


Net Assets - July 1, 2003                          112,500             112,500             548,312                 435,812
Net Assets - June 30, 2004                 $               -    $               -   $      442,599     $           442,599




                                                          106
                                JOSEPHINE COUNTY, OREGON
                            Nonmajor Enterprise Funds (Continued)
Schedule of Revenues, Expenditures, and Changes in Net Assets
Budget and Actual
for the year ended June 30, 2004

Jail Commissary - Fund 501                                                                        Variance with
                                                                                                  Final Budget
                                        Original              Final                                 Favorable
                                        Budget               Budget            Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services    $        14,440      $       54,440    $       49,547     $             (4,893)
   Other Revenues                                   -                 -                 905                      905
Total Revenues                               14,440              54,440            50,452                   (3,988)
Expenses:
   Materials & Services                      17,036              37,036             8,215                  28,821
   Interfund Payment for Services             1,204               1,204             1,128                         76
   Capital Outlay                             5,000              25,000            19,439                   5,561
Total Expenses                               23,240              63,240            28,782                  34,458


Net change in Net Assets                      (8,800)            (8,800)           21,670                  30,470


Net Assets - July 1, 2003                     8,800               8,800            51,836                  43,036
Net Assets - June 30, 2004          $               -    $            -    $       73,506     $            73,506




                                                   107
                         JOSEPHINE COUNTY, OREGON




                           INTERNAL SERVICE FUNDS

Administrative Internal Service Fund This fund accounts for the operations of the
County departments that provide services primarily to other County departments.
Revenue is derived from the departments receiving these services. Expenditures are for
the provision of these services.

County Fleet Operations Fund The maintenance of the County's vehicle fleet is
accounted for in this fund. The primary source of revenue is vehicle usage fees from
departments.

Public Works Equipment Rental and Revolving Fund The maintenance of the
equipment used by the Public Works Department is accounted for in this fund. The
moneys accumulated for the acquisition of new equipment are also accounted for here.
The major sources of revenue include rental fees and transfers from the Public Works
Operating Fund.

This fund was closed effective June 30, 2004. The capital assets were transferred to the
general government assets account and the remaining equity was transferred to the Public
Works Operating Fund.

Self-Insurance Fund This fund was established for the collection of the general liability
and auto liability premiums for the County's self-insurance policy. Expenditures are for
any losses against the policy.

Health Insurance Fund This fund collects premiums for the County’s medical, dental,
and vision insurance. Expenditures are for administration of the fund and for the
payment of premiums.




                                           108
                                                        JOSEPHINE COUNTY, OREGON
                                                           Internal Service Funds

Combining Statement of Net Assets
June 30, 2004
                                                                                                                                                    Total
                                       Administrative                                   Public                                                    Internal
                                         Internal             County                    Works                Self               Health            Service
                                         Service               Fleet                  Equipment           Insurance           Insurance            Funds
Assets:
  Current Assets:
    Cash & Investments                 $      722,189     $      306,064          $               -   $       890,274     $         3,891     $     1,922,418
    Accounts Receivable                        85,489            117,482                          -             2,789                369              206,129
    Due From Other Funds                       13,287                   -                         -            34,327             367,064             414,678
    Inventories                                     -             40,111                          -                   -                   -            40,111
Total Current Assets                          820,965            463,657                          -           927,390             371,324           2,583,336


  Capital Assets:
     Equipment                                      -           3,463,081                         -                   -                   -         3,463,081
     Less - Accumulated Depreciation                -          (2,562,553)                        -                   -                   -         (2,562,553)
Total Capital Assets, net of
  Accumulated Depreciation                          -            900,528                          -                   -                   -           900,528


Total Assets                                  820,965           1,364,185                         -           927,390             371,324           3,483,864


Liabilities:
  Current Liabilities:
    Accounts Payable                          188,051             84,386                          -            14,643             356,802             643,882
    Accrued Payroll Liabilities               227,875             22,846                          -                   -                   -           250,721
    Claims Payable                                  -                   -                         -           527,800                     -           527,800
    Due to Other Funds                         52,040             21,348                          -             9,829                     -            83,217
Total Liabilities                             467,966            128,580                          -           552,272             356,802           1,505,620


Net Assets:
  Invested in Capital Assets                        -            900,528                          -                   -                   -           900,528
  Unrestricted                                352,999            335,077                          -           375,118              14,522           1,077,716
Total Net Assets                       $      352,999     $     1,235,605         $               -   $       375,118     $        14,522     $     1,978,244




                                                                            109
                                                       JOSEPHINE COUNTY, OREGON
                                                          Internal Service Funds

Combining Statement of Revenues,
Expenses and Changes in Fund Net Assets
for the year ended June 30, 2004
                                                                                                                                                 Total
                                     Administrative                                 Public                                                     Internal
                                       Internal              County                 Works                 Self               Health            Service
                                       Service                Fleet               Equipment            Insurance           Insurance            Funds

Operating Revenues:
 Fees and Charges for Services       $      295,765      $      947,972       $               -    $               -   $               -   $     1,243,737
 Interfund Charges for Services            4,988,033                   -                      -           1,074,585           4,474,922         10,537,540
 Other Revenues                             260,063             231,857                       -                    -           364,363             856,283
Total Operating Revenues                   5,543,861           1,179,829                      -           1,074,585           4,839,285         12,637,560


Operating Expenses:
 Personal Services                         2,945,751            284,020                       -            178,285            4,774,665          8,182,721
 Materials and Services                    2,142,257            466,996                       -            758,464                     -         3,367,717
 Depreciation                                      -            348,353                       -                    -                   -           348,353
 Interfund Payment for Services             387,254             181,434                       -             10,947                     -           579,635
Total Operating Expenses                   5,475,262           1,280,803                      -            947,696            4,774,665         12,478,426


Operating Income (Loss)                      68,599             (100,974)                     -            126,889              64,620             159,134


Non-Operating Revenues (Expenses):
 Interest Income                              6,079                2,242                      -             12,000               1,720              22,041


Net Income (Loss) before Transfers           74,678              (98,732)                     -            138,889              66,340             181,175


 Capital Assets Transferred to
   Governmental Funds                              -                   -              (719,276)                    -                   -          (719,276)
 Transfers In                               233,484                    -                      -                    -                   -           233,484
 Transfers Out                                     -                   -              (446,992)            (165,000)            (48,000)          (659,992)
Total Transfers In (Out)                    233,484                    -             (1,166,268)           (165,000)            (48,000)         (1,145,784)


Change in Net Assets                        308,162              (98,732)            (1,166,268)            (26,111)            18,340            (964,609)


Total Net Assets - July 1, 2003              44,837            1,334,337             1,166,268             401,229               (3,818)         2,942,853
Total Net Assets - June 30, 2004     $      352,999      $     1,235,605      $               -    $       375,118     $        14,522     $     1,978,244




                                                                        110
                                                           JOSEPHINE COUNTY, OREGON
                                                              Internal Service Funds

Combining Statement of Cash Flows
for the year ended June 30, 2004
                                                                                                                                                      Total
                                                       Administrative                          Public                                               Internal
                                                         Internal              County          Works            Self            Health              Service
                                                         Service                Fleet        Equipment       Insurance        Insurance              Funds

Cash Flows from Operating Activities
 Cash received from users                              $     5,313,097     $     997,886     $          -    $   1,070,569    $   4,470,661     $ 11,852,213
 Cash received from other sources                              260,063           231,857                -                -          364,363            856,283
 Cash paid to suppliers                                      (2,622,689)         (638,638)              -         (765,852)                -         (4,027,179)
 Cash paid to employees                                      (2,937,960)         (281,852)              -         (178,285)       (4,418,707)        (7,816,804)
Net cash provided by operating activities                       12,511           309,253                -         126,432           416,317            864,513


Cash Flows from Non-capital Financing Activities
 Transfers made                                                       -                 -        (187,595)        (165,000)          (48,000)         (400,595)
 Transfers received                                            233,484                  -               -                -                 -           233,484
Net cash provided by (used in) noncapital
 financing activities                                          233,484                  -        (187,595)        (165,000)          (48,000)         (167,111)


Cash Flows from Capital Financing Activities
 Purchase of capital assets                                           -          (220,826)              -                -                 -          (220,826)
Net cash provided by (used in) capital
 financing activities                                                 -          (220,826)              -                -                 -          (220,826)


Cash Flows from Investing Activities
 Interest income received                                        6,079              2,242               -          12,000             1,720             22,041
Net cash provided by investing activities                        6,079              2,242               -          12,000             1,720             22,041


Net Increase (Decrease) in Cash and Cash Equivalents           252,074            90,669         (187,595)         (26,568)         370,037            498,617


Cash and Cash Equivalents - July 1, 2003                       470,115           215,395         187,595          916,842          (366,146)         1,423,801


Cash and Cash Equivalents - June 30, 2004              $       722,189     $     306,064     $          -    $    890,274     $       3,891     $    1,922,418




                                                                                     111
                                                          JOSEPHINE COUNTY, OREGON
                                                             Internal Service Funds

Reconciliation of Net Operating Income (Loss)
to Net Cash Provided by Operating Activities
                                                                                                                                                 Total
                                                      Administrative                         Public                                            Internal
                                                        Internal             County          Works            Self           Health            Service
                                                        Service               Fleet        Equipment       Insurance       Insurance            Funds

Operating Income (Loss)                               $       68,599     $     (100,974)   $          -    $   126,889     $    64,620     $      159,134
Adjustments to reconcile operating income (loss) to
 net cash provided by operating activities:
   Depreciation                                                     -          348,353                -                -               -          348,353
   (Increase) Decrease in accounts receivable                 (57,233)          (98,926)              -         (2,789)           (369)          (159,317)
   (Increase) Decrease in prepayments                         12,787                  -               -                -               -           12,787
   (Increase) Decrease in due from other funds                89,032           148,840                -         (1,227)         (3,892)           232,753
   (Increase) Decrease in inventories                               -            (8,208)              -                -               -           (8,208)
   Increase (Decrease) in accounts payable                    43,239            66,393                -        (22,757)        355,958            442,833
   Increase (Decrease) in payroll payable                       7,791             2,168               -                -               -            9,959
   Increase (Decrease) in due to other funds                 (125,488)          (48,393)              -          9,754                 -         (164,127)
   Increase (Decrease) in due to other governments            (23,716)                -               -                -               -          (23,716)
   Increase (Decrease) in deposits payable                     (2,500)                -               -                -               -           (2,500)
   Increase (Decrease) in claims payable                            -                 -               -         16,562                 -           16,562
     Total adjustments                                        (56,088)         410,227                -           (457)        351,697            705,379


Net cash provided by operating activities             $       12,511     $     309,253     $          -    $   126,432     $   416,317     $      864,513




                                                                                                                                                 Total
                                                      Administrative                         Public                                            Internal
                                                        Internal             County          Works            Self           Health            Service
                                                        Service               Fleet        Equipment       Insurance       Insurance            Funds

Noncash Investing, Capital and
 Financing Activities
   Capital assets transferred to governmental funds   $             -    $            -    $   (719,276)   $           -   $           -   $     (719,276)
   Noncash transfers out                                            -                 -        (259,397)               -               -         (259,397)


   Total noncash investing                            $             -    $            -    $   (978,673)   $           -   $           -   $     (978,673)




                                                                                   112
                                       JOSEPHINE COUNTY, OREGON
                                          Internal Service Funds

Schedule of Revenues, Expenses and Changes in Net Assets
Budget and Actual
for the year ended June 30, 2004

Administrative Internal Service - Fund 401                                                                    Variance with
                                                                                                              Final Budget
                                                 Original                Final                                  Favorable
                                                 Budget                 Budget             Actual             (Unfavorable)
Revenues:
  Fees and Charges for Services              $       335,045       $       335,045     $      295,765     $            (39,280)
  Interfund Charges for Services                   5,045,837              5,045,837         4,988,033                  (57,804)
  Intergovernmental Revenues                          49,815                49,815                    -                (49,815)
  Other Revenues                                      43,600               115,106            260,063                 144,957
Total Operating Revenues                           5,474,297              5,545,803         5,543,861                   (1,942)


Expenses:
Central Services
   Personal Services                                  28,430                28,430             13,940                  14,490
   Materials & Services                              114,160               114,160             88,059                  26,101
   Capital Outlay                                           150                  150                 80                       70
   Interfund Payment for Services                             -                    -                 75                       (75)
    Total Expenses                                   142,740               142,740            102,154                  40,586


Board of County Commissioners
   Personal Services                                 462,340               462,340            441,155                  21,185
   Materials & Services                              165,278               165,278            110,079                  55,199
   Capital Outlay                                      1,900                 1,900                  139                 1,761
   Interfund Payment for Services                     20,834                20,834             17,166                   3,668
    Total Expenses                                   650,352               650,352            568,539                  81,813


Finance
   Personal Services                                 320,546               320,546            307,344                  13,202
   Materials & Services                              188,872               235,575            235,655                         (80)
   Capital Outlay                                           500             25,303             20,742                   4,561
   Interfund Payment for Services                      7,500                 7,500              7,424                         76
   Debt Service                                       35,200                35,200             33,427                   1,773
    Total Expenses                                   552,618               624,124            604,592                  19,532


Planning
   Personal Services                                 152,494               152,494             94,348                  58,146
   Materials & Services                               17,143                17,143             18,472                   (1,329)
   Capital Outlay                                      3,000                 3,000                    -                 3,000
   Interfund Payment for Services                      2,404                 2,404              2,273                        131
    Total Expenses                                   175,041               175,041            115,093                  59,948


Information Systems
   Personal Services                                 660,071               649,792            651,867                   (2,075)
   Materials & Services                              187,026               197,305            165,812                  31,493
   Capital Outlay                                     10,000                10,000                    -                10,000
   Interfund Payment for Services                      2,100                 2,100              2,100                           -
    Total Expenses                                   859,197               859,197            819,779                  39,418




                                                                  113
                                             JOSEPHINE COUNTY, OREGON
                                           Internal Service Funds (Continued)

Schedule of Revenues, Expenses and Changes in Net Assets
Budget and Actual
for the year ended June 30, 2004

Administrative Internal Service - Fund 401                                                                      Variance with
                                                                                                                Final Budget
                                                      Original               Final                                Favorable
                                                      Budget                Budget             Actual           (Unfavorable)
Building Operation & Maintenance
   Personal Services                                      897,687              897,687            674,742               222,945
   Materials & Services                                 1,150,216             1,150,216         1,285,071               (134,855)
   Capital Outlay                                          12,500               12,500             11,040                  1,460
   Interfund Payment for Services                         241,420              241,420            343,282               (101,862)
     Total Expenses                                     2,301,823             2,301,823         2,314,135                (12,312)


Communications
   Personal Services                                      215,134              215,134            216,158                 (1,024)
   Materials & Services                                   136,220              136,220            123,572                12,648
   Interfund Payment for Services                          10,982               10,982             11,517                   (535)
     Total Expenses                                       362,336              362,336            351,247                11,089


Personnel
   Personal Services                                      305,532              305,532            258,638                46,894
   Materials & Services                                    58,915               58,915             38,527                20,388
   Interfund Payment for Services                           3,100                 3,100             1,122                  1,978
     Total Expenses                                       367,547              367,547            298,287                69,260


Legal
   Personal Services                                      294,263              294,263            287,558                  6,705
   Materials & Services                                    17,165               17,165             10,100                  7,065
   Capital Outlay                                           1,000                 1,000             1,483                   (483)
   Interfund Payment for Services                           2,200                 2,200             2,295                       (95)
     Total Expenses                                       314,628              314,628            301,436                13,192


Grand Total Expenses                                    5,726,282             5,797,788         5,475,262               322,526


Excess of Revenues Over (Under) Expenses                 (251,985)             (251,985)           68,599               320,584


Other Financing Sources (Uses):
  Interest Income                                           5,500                 5,500             6,079                      579
  Transfers In                                            270,720              270,720            233,484                (37,236)
  Transfers Out                                            (24,235)             (24,235)                -                24,235
Total Other Financing Sources (Uses)                      251,985              251,985            239,563                (12,422)


Net change in Fund Balances                                      -                    -           308,162               308,162


Net [GAAP] Change in Net Assets                                  -                    -           308,162               308,162


Net Assets - July 1, 2003                                        -                    -            44,837                44,837
Net Assets - June 30, 2004                        $              -     $              -    $      352,999   $           352,999




                                                                      114
                                             JOSEPHINE COUNTY, OREGON
                                           Internal Service Funds (Continued)

Schedule of Revenues, Expenses and Changes in Net Assets
Budget and Actual
for the year ended June 30, 2004

County Fleet - Fund 402                                                                                              Variance with
                                                                                                                     Final Budget
                                                      Original                Final                                    Favorable
                                                      Budget                 Budget               Actual             (Unfavorable)
Revenues:
   Fees and Charges for Services                  $       947,475        $      947,475       $      947,972     $                  497
   Other Revenues                                          10,000                10,000              231,857                 221,857
Total Operating Revenues                                  957,475               957,475            1,179,829                 222,354


Expenses:
   Personal Services                                      324,045               324,045              284,020                  40,025
   Materials & Services                                   417,936               417,936              466,996                  (49,060)
   Capital Outlay                                         286,886               286,886              220,826                  66,060
   Depreciation                                           252,000               252,000              348,353                  (96,353)
   Interfund Payment for Services                         188,891               188,891              181,434                    7,457
Total Expenses                                          1,469,758              1,469,758           1,501,629                  (31,871)


Excess of Revenues Over (Under) Expenses                 (512,283)              (512,283)           (321,800)                254,225


Other Financing Sources (Uses):
  Interest Income                                           8,000                  8,000               2,242                   (5,758)
  Transfers In                                                       -                    -                 -                         -
  Transfers Out                                                      -                    -                 -                         -
Total Other Financing Sources (Uses)                        8,000                  8,000               2,242                   (5,758)


Net change in Fund Balances                              (504,283)              (504,283)           (319,558)                248,467


Reclassify Capital Outlay                                            -                    -          220,826                 (220,826)


Net [GAAP] Change in Net Assets                          (504,283)              (504,283)             (98,732)               405,551


Net Assets - July 1, 2003                                 504,283               504,283            1,334,337                 830,054
Net Assets - June 30, 2004                        $                  -   $                -   $    1,235,605     $         1,235,605




Public Works Equipment - Fund 403

Other Financing Sources (Uses):
  Transfers Out                                   $              -       $            -       $    (1,166,268)   $         (1,166,268)
Total Other Financing Sources (Uses)                                 -                    -        (1,166,268)             (1,166,268)


Net change in Fund Balances                                          -                    -        (1,166,268)             (1,166,268)


Net [GAAP] Change in Net Assets                                      -                    -        (1,166,268)             (1,166,268)


Net Assets - July 1, 2003                                                                 -        1,166,268               1,166,268
Net Assets - June 30, 2004                        $                  -   $                -   $             -    $                    -




                                                                 115
                                             JOSEPHINE COUNTY, OREGON
                                           Internal Service Funds (Continued)

Schedule of Revenues, Expenses and Changes in Net Assets
Budget and Actual
for the year ended June 30, 2004
                                                                                                                 Variance with
                                                                                                                 Final Budget
Self Insurance - Fund 410                             Original             Final                                  Favorable
                                                      Budget               Budget             Actual             (Unfavorable)
Revenues:
   Interfund Charges for Services                 $     1,136,589      $     1,136,589    $    1,074,585     $            (62,004)
Total Operating Revenues                                1,136,589            1,136,589         1,074,585                  (62,004)


Expenses:
   Personal Services                                       56,500             199,500            178,285                  21,215
   Materials & Services                                   800,947             800,947            758,464                  42,483
   Interfund Payment for Services                          14,142              14,142             10,947                    3,195
   Contingencies                                          110,000                    -                  -                        -
Total Expenses                                            981,589            1,014,589           947,696                  66,893


Excess of Revenues Over (Under) Expenses                  155,000             122,000            126,889                    4,889


Other Financing Sources (Uses):
  Interest Income                                                 -                  -            12,000                  12,000
  Transfers Out                                          (155,000)            (165,000)         (165,000)                        -
Total Other Financing Sources (Uses)                     (155,000)            (165,000)         (153,000)                 12,000


Net change in Fund Balances                                       -            (43,000)           (26,111)                16,889
Net [GAAP] Changes in Net Assets                                  -            (43,000)           (26,111)                16,889


Net Assets - July 1, 2003                                                      43,000            401,229                 358,229
Net Assets - June 30, 2004                        $               -    $             -    $      375,118     $           375,118


Health Insurance - Fund 420

Revenues:
   Interfund Charges for Services                 $     5,135,918      $     5,135,918    $    4,474,922     $           (660,996)
   Other Revenues                                          48,000              48,000            364,363                 316,363
Total Revenues                                          5,183,918            5,183,918         4,839,285                 (344,633)


Expenses:
   Personal Services                                    5,135,918            5,135,918         4,774,665                 361,253
Total Expenses                                          5,135,918            5,135,918         4,774,665                 361,253


Excess of Revenues Over (Under) Expenses                   48,000              48,000             64,620                  16,620


Other Financing Sources (Uses):
  Interest Income                                                 -                  -             1,720                    1,720
  Transfers Out                                            (48,000)            (48,000)           (48,000)                       -
Total Other Financing Sources (Uses)                       (48,000)            (48,000)           (46,280)                  1,720


Net change in Fund Balances                                       -                  -            18,340                  18,340
Net [GAAP] Changes in Net Assets                                  -                  -            18,340                  18,340


Net Assets - July 1, 2003                                                            -             (3,818)                 (3,818)
Net Assets - June 30, 2004                        $               -    $             -    $       14,522     $            14,522



                                                                 116
                          JOSEPHINE COUNTY, OREGON




                           TRUST AND AGENCY FUNDS

Flexible Spending Plan Agency Fund This fund accounts for qualifying childcare and
medical expenses deducted from employees pay as provided for by sections 125 and 129
of the Internal Revenue Code.

Treasurer's Trust and Agency Funds Assets maintained by the County Treasurer in
behalf of other governmental entities, private individuals and others as provided for in
Oregon State statutes are accounted for in these funds.




                                            117
                                     JOSEPHINE COUNTY, OREGON
                                        Trust and Agency Funds

Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2004

                                              Balance                                                       Balance
                                            July 1, 2003          Additions           Deletions           June 30, 2004
Treasurer's Trust and Agency Funds
Assets:
   Cash & Investments                   $        4,297,440    $    124,172,593    $    122,280,012    $         6,190,021
   Taxes Receivable                              2,270,981          39,925,017          40,132,508              2,063,490
   Accounts Receivable                             414,514           1,181,970           1,000,393                596,091
   Due From Other Governments                       51,727           2,006,595           1,989,080                 69,242
   Due From Other Funds                              1,751              90,607              17,358                 75,000
   Prepaid Expenses                                      -              17,375                    -                17,375
Total Assets                            $        7,036,413    $    167,394,157    $    165,419,351    $         9,011,219

Liabilities:
   Accounts Payable                     $           43,419    $      3,309,891    $      3,920,817    $           654,344
   Due To Other Governments                      2,796,509          40,711,524          40,629,058              2,714,043
   Due To Other Funds                               25,042              27,562              12,520                 10,000
   Money Held for Others                         4,171,443          98,321,197          99,782,586              5,632,832
Total Liabilities                       $        7,036,413    $    142,370,175    $    144,344,981    $         9,011,219



Flexible Spending Plan Agency Fund
Assets:
   Cash & Investments                   $          (10,934)   $       1,145,111   $       1,110,996   $           23,181
   Due From Other Funds                             53,220               95,062              53,220               95,062
Total Assets                            $           42,286    $       1,240,173   $       1,164,216   $          118,243

Liabilities:
   Accounts Payable                     $           11,054    $         923,358   $         969,945   $           57,640
   Money Held for Others                            31,232            1,794,523           1,823,894               60,603
Total Liabilities                       $           42,286    $       2,717,882   $       2,793,839   $          118,243



Total - All Trust and Agency Funds
Assets:
   Cash & Investments                   $        4,286,506    $    125,317,704    $    123,391,008    $         6,213,202
   Taxes Receivable                              2,270,981          39,925,017          40,132,508              2,063,490
   Accounts Receivable                             414,514           1,181,970           1,000,393                596,091
   Due From Other Governments                       51,727           2,006,595           1,989,080                 69,242
   Due From Other Funds                             54,971             185,669              70,578                170,062
   Prepaid Expenses                                      -              17,375                    -                17,375
Total Assets                            $        7,078,699    $    168,634,330    $    166,583,567    $         9,129,462

Liabilities:
   Accounts Payable                     $           54,473    $      4,233,250    $      4,890,761    $           711,985
   Due To Other Governments                      2,796,509          40,711,524          40,629,058              2,714,043
   Due To Other Funds                               25,042              27,562              12,520                 10,000
   Money Held for Others                         4,202,675         100,115,720         101,606,480              5,693,435
Total Liabilities                       $        7,078,699    $    145,088,057    $    147,138,820    $         9,129,462




                                                       118
 JOSEPHINE COUNTY, OREGON




STATISTICAL SECTION




            119
                                 JOSEPHINE COUNTY, OREGON

General Government Expenditures by Function (1)
Last Ten Fiscal Years




     Fiscal                  General              Public                Public              Culture and
     Year                   Government            Safety                Works               Recreation

    1994-95             $      3,715,595     $    10,069,492        $   5,818,500       $      2,533,806

    1995-96                    4,174,374           8,445,463            4,817,616              2,496,773

    1996-97                    3,842,159          10,555,926            5,379,508              4,772,280

    1997-98                    3,972,461          12,090,087            5,871,559              4,186,783

    1998-99                    3,784,879          15,608,341            6,799,611              4,708,692

    1999-00                    7,322,882          24,097,729            8,215,031              4,498,725

    2000-01                    5,116,720          17,394,113            6,973,076              5,174,086

    2001-02                    7,568,789          17,188,926            5,305,656              5,408,758

    2002-03                    6,772,013          17,176,501            5,298,780              5,616,494

    2003-04             $      5,599,443     $    16,438,386        $   6,258,326       $      3,567,235


  Source: Current and prior Josephine County Comprehensive Annual Financial Reports.

  Notes:
  (1) Includes expenditures of the General, Special Revenue, Debt Service, Capital Projects, and
  Expendable Trust Funds.




                                                    120
                                       JOSEPHINE COUNTY, OREGON

General Government Expenditures by Function (Continued)
Last Ten Fiscal Years




                                                                                              Portland-
                                                                                                Salem
                                                                                               Oregon
                                                                                              Consumer
                                                                                                Price
     Community              Human               Debt                                 Per      Index (U)
    Development             Services           Service              Total           Capita    (1982-84)

$      2,363,869        $     9,246,561    $              -    $   33,747,823   $    490.12        147.1

       1,789,915            13,502,922                    -        35,227,063        495.56        153.2

       2,190,078            13,594,450                    -        40,334,401        495.46        158.6

       2,365,116            25,867,823                    -        54,353,829        560.20        164.1

       2,533,114            14,996,425                    -        48,431,062        744.57        167.1

       2,607,620            17,839,953                    -        64,581,940        663.44        172.6

       2,348,234            21,632,905                    -        58,639,134        790.30        178.0

       2,956,275            27,155,247                    -        65,583,651        844.61        182.4

       2,882,527            27,055,586          2,062,368          66,864,269        855.47        183.8

$      2,917,763        $   27,589,814     $    2,131,051      $   64,502,018   $    823.25        186.3




                                                         121
                                                 JOSEPHINE COUNTY, OREGON

General Government Revenues by Source (1)
Last Ten Fiscal Years




                                   Fees and            Inter-              Interfund
   Fiscal                           Charges         governmental           Charges        Other                           Per
   Year             Taxes         For Services       Revenues            for Services    Revenues          Total         Capita

  1994-95        $ 4,822,445       $ 4,388,512      $ 22,095,366         $    102,075    $ 1,168,010   $   32,576,408   $ 452.45

  1995-96          6,214,482         4,451,606        26,215,471              144,226     1,717,056        38,742,841    530.72

  1996-97          6,282,335         5,115,739        28,210,001              725,512     1,778,451        42,112,038    576.88

  1997-98          6,344,265         5,570,603        39,769,020              900,247     5,140,885        57,725,020    778.32

  1998-99          6,371,970         5,293,655        29,626,214             1,112,733    2,523,206        44,927,778    605.50

  1999-00          8,706,279         5,238,703        34,303,387             1,017,471    2,397,510        51,663,350    672.26

  2000-01         10,060,870         6,485,462        34,361,839             1,257,680    3,236,466        55,402,317    710.74

  2001-02          8,740,873         7,776,705        44,352,117             1,443,049    2,843,905        65,156,649    831.61

  2002-03          8,517,922         6,982,626        45,600,836             2,600,649    4,705,372        68,407,405    877.58

  2003-04        $ 9,100,594       $ 8,318,255      $ 43,079,383         $ 3,288,879     $ 3,598,388   $   67,385,499   $ 860.06



  Source: Current and prior Josephine County Comprehensive Annual Financial Reports.

  Notes:
  (1) Includes expenditures of the General, Special Revenue, Debt Service, Capital Projects, and
  Expendable Trust Funds.




                                                                   122
                                               JOSEPHINE COUNTY, OREGON

Property Tax Levies and Collections
Last Ten Fiscal Years




                                                Percent                                   Percent of                  Percent of
                                   Tax          of Levy                                    Total Tax                  Delinquent
                               Collections     Collected    Delinquent      Total         Collections   Outstanding   Taxes To
  Fiscal             Total          In             In           Tax           Tax           To Tax      Delinquent       Tax
  Year             Tax Levy    First Year      First Year   Collections   Collections        Levy         Taxes         Levy

 1994-95       $    786,487    $    720,275        91.6     $    49,635   $    769,910       98.4        $ 88,014       11.2

 1995-96           2,183,433       2,017,697       91.6          48,998       2,066,695      97.9         158,704        7.3

 1996-97           2,234,112       2,060,458       92.4          81,486       2,141,944      94.7         199,898        8.9

 1997-98           2,216,030       2,048,231       92.2         109,280       2,157,511      95.9         216,392        9.8

 1998-99           2,299,451       2,127,303       92.4         120,909       2,248,212      97.4         258,485       11.2

 1999-00           4,112,568       3,680,975       92.5         111,245       3,792,220      97.8         258,485        5.7

 2000-01           5,421,884       5,072,215       93.6         144,674       5,216,889      96.2         236,211        4.4

 2001-02           3,605,599       3,383,821       93.8         180,611       3,564,431      98.9         236,211        6.6

 2002-03           3,686,180       3,458,544       93.8         157,968       3,616,513      98.1         269,742        7.3

 2003-04       $ 3,655,360     $ 3,447,640         94.3     $ 155,139     $ 3,602,779        98.6        $ 215,328       5.9


Source: Josephine County Treasurer/Tax Collector




                                                                123
                                     JOSEPHINE COUNTY, OREGON

Assessed and Real Market Values of Taxable Property
Last Ten Fiscal Years




                                              Assessed Value                                             Real
 Fiscal                       Manufactured                                                              Market
 Year            Real          Structures         Personal         Utilities           Total            Value

1994-95     2,849,297,390      116,640,110       62,310,159     107,390,321       3,135,637,980      3,135,637,980

1995-96     3,087,315,823      127,961,980       69,684,597     107,397,473       3,392,359,873      3,392,359,873

1996-97     3,130,787,095      130,411,447       69,365,688     113,929,807       3,444,494,037      3,444,494,037

1997-98     2,874,907,173      118,736,385       70,740,248     120,087,832       3,184,471,638      3,639,356,802

1998-99     2,986,273,853      116,517,948       71,554,409     131,286,480       3,305,632,690      3,686,798,127

1999-00     3,141,350,622      119,033,862       77,544,253     141,919,217       3,479,847,954      3,882,418,254

2000-01     3,301,818,997      117,922,460       81,242,412     135,334,122       3,636,317,991      4,127,856,553

2001-02     3,482,266,765      121,049,292       82,342,601     143,339,062       3,828,997,720      4,436,423,374

2002-03     3,677,567,535      119,945,632       80,764,669     142,176,006       4,020,453,842      4,803,016,923

2003-04     3,890,566,005      122,510,207       87,825,003     133,119,521       4,234,020,736      5,478,748,706

* Ballot Measure 50, approved by State voters in May 1997, changed the way property taxes are
assessed and computed. For 1997-98, the assessed value of property is the real market value or
90 percent of the 1995 assessed value, whichever is lower. If the property has changed since
1995, increased values are calculated in comparison to the values of similar property that existed
* 1995.
in

Source: Josephine County Assessor's Office




                                                   124
                                                       JOSEPHINE COUNTY, OREGON

Nominal Property Tax Rates(1) - Direct and Overlapping Governments
Last Ten Fiscal Years




                                                                                                        Special
                                 Cities                    Rural Fire Districts                     School Disctricts           Rogue
 Fiscal      Josephine     Grants      Cave                Illinois               Wolf        Grants    Three       So. OR.   Community    4H
                                                                                                                                                (2)
 Year         County        Pass      Junction   Applegate Valley     Williams    Creek        Pass     Rivers        ESD      College Extension

1994-95          0.66         4.36       1.36        1.79       1.74      1.02       1.69       12.91       5.91      0.87        1.16        -

1995-96          0.66         4.38       2.23        1.63       1.82      1.03       1.81       13.37       5.86      0.88        1.21        -

1996-97          0.66         4.38       2.23        1.63       1.82      1.03       1.81       13.37       5.86      0.88        1.21        -

1997-98          0.66         6.03       2.07        1.66       1.83      0.97       1.90        7.55       3.73      0.35        0.51       0.05

1998-99          0.66         5.29       2.07        1.66       1.83      1.04       1.96        7.56       3.73      0.35        0.51       0.05

1999-00          1.15         5.28       2.06        2.67      1.83       1.04       1.98        7.43       3.73      0.35        0.51       0.05

2000-01          1.52         4.98       2.05        2.68      1.87       1.06       2.19        7.23       3.73      0.35        0.51       0.05

2001-02          0.96         4.98       2.05        2.68      1.87       1.06       2.19        7.14       4.47      0.35        0.51       0.05

2002-03          0.93         4.98       2.05        2.68       1.87      1.06       2.19        7.06       4.46      0.35        0.51       0.05

2003-04          0.88         5.02       2.04        2.68       2.44      1.06       2.19        6.43       4.45      0.35        0.51       0.05



(1)
       Nominal property tax rate is per $1,000 without compression resulting from Ballot Measure 5 commencing in
      1991-92.
(2)
      New Taxing District approved by voters on November 5, 1996 for fiscal year 1997-98.




Note: These figures are rounded and for general information only. For actual nominal tax rates, inquire at the
County Assessors's Office.




                                                                         125
                                             JOSEPHINE COUNTY, OREGON

Principal Taxpayers
For the year ended June 30, 2004


                                                                                                    Percentage
                                                                                                      of Total
                     Principal                                                      Assessed         Assessed
                    Taxpayers                                Type of Business       Valuation        Valuation

Pacificorp (PP&L)                                Utility                        $     56,948,700        1.35%

QWEST Corporation                                Utility                              35,509,343        0.84%

Grant Kent Partners LP                           Commercial                           11,857,360        0.28%

Auerbach Grants Pass LLC and
  Freeman Grants Pass LLC                        Commercial                           10,578,340        0.25%

Nunn, Ronald C and Marcia K                      Developer                            15,261,230        0.36%

Albertson's Inc.                                 Commercial                             8,285,211       0.20%

Wal-Mart Stores, Inc                             Commercial                             8,030,033       0.19%

Jensen, Robert A & Shirley Y                     Commercial                             7,611,908       0.18%

Hillebrand Children Riverwood Apts               Rental                                 7,508,090       0.18%

Avista Corp                                      Utility                                8,964,000       0.21%

   Total Principal Taxpayers                                                         170,554,215        4.03%

   Total Other Taxpayers                                                            4,063,466,521      95.97%

   Total                                                                        $ 4,234,020,736       100.00%




Source: Josephine County Assessor's Office




                                                             126
                               JOSEPHINE COUNTY, OREGON

Special Assessment Collections
Last Ten Fiscal Years




                                                                                Total
  Fiscal                                  Assessments                        Outstanding
  Year                                     Collected                         Assessments

 1994-95                                  $     32,554                       $   267,276

 1995-96                                        29,132                           267,276

 1996-97                                        26,856                           211,289

 1997-98                                        94,324                           204,410

 1998-99                                        25,515                           178,895

 1999-00                                         1,351                           177,544

 2000-01                                        98,555                            78,989

 2001-02                                        12,063                            66,926

 2002-03                                               -                          66,926

 2003-04                                  $            -                     $         -



 Note: The County does not have any debt related to the above assessments.




                                                 127
                                  JOSEPHINE COUNTY, OREGON

Computation of Legal Debt Margin
June 30, 2004




Real Market Value of taxable property (1)                                $ 5,478,748,706

Debt limit 2%                                                            $   109,574,974


General obligation bonds outstanding                     11,485,000
Less assets in debt service fund
 available for payment of principal                          (147,531)
      Net debt applicable to limitation                                       11,337,469


Legal debt margin                                                        $    98,237,505




(1)
      Josephine County Assessor's Office




                                            128
                                              JOSEPHINE COUNTY, OREGON

Ratio of Net General Bonded Debt to Assessed
Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years



                                                                                                           Ratio of
                                                                          Debt                           Net Bonded
                                    Assessed                             Service              Net          Debt to    Net Bonded
                                      Value              Bonded          Monies             Bonded        Assessed       Debt
  June 30      Population (1)   (In Thousands) (2)        Debt          Available            Debt           Value     Per Capita

      1995        68,100         $   3,135,638       $             -    $           -   $            -      0.0000         0.00

      1996        71,100             3,392,360                     -                -                -      0.0000         0.00

      1997        72,000             3,444,494                     -                -                -      0.0000         0.00

      1998        73,000             3,184,472                     -                -                -      0.0000         0.00

      1999        73,000             3,305,633           15,897,700                 -       15,897,700      0.0048       217.78

      2000        74,166             3,479,848           14,371,287                 -       14,371,287      0.0041       193.77

      2001        74,199             3,636,318           13,628,453                 -       13,628,453      0.0037       183.67

      2002        76,850             3,828,998           12,859,523                 -       12,859,523      0.0034       167.33

      2003        77,950             4,020,454           12,070,000                 -       12,070,000      0.0030       154.84

      2004        78,350         $   4,234,049       $ 11,485,000       $ 147,531       $ 11,337,469        0.0027       144.70




(1)
       Portland State University
(2)
      Josephine County Assessor's Office




                                                                  129
                                        JOSEPHINE COUNTY, OREGON

Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total General Governmental Expenditures
Last Ten Fiscal Years



                                                                                                 Ratio of Debt
                                                                                                  Service To
                                                                               Total General     Total General
      Fiscal                                                    Total          Governmental      Governmental
      Year              Principal           Interest         Debt Service      Expenditures(1)   Expenditures

 1994-95            $               -   $              -     $           -      $ 33,747,823             0.0%

 1995-96                            -                  -                 -        35,227,063             0.0

 1996-97                            -                  -                 -        40,334,401             0.0

 1997-98                            -                  -                 -        54,353,829             0.0

 1998-99                            -                  -                 -        48,431,062             0.0

 1999-00                1,526,876            948,447             2,475,323        64,581,940             3.8

 2000-01                  742,834            645,610             1,388,444        58,639,134             2.4

 2001-02                  769,930            928,277             1,698,207        65,583,651             2.6

 2002-03                  979,945           1,082,423            2,062,368        66,864,269             3.1

 2003-04            $ 1,080,142         $ 1,048,909          $ 2,129,051        $ 64,502,018             3.3%


(1)
         General, Special Revenue, Debt Service, Capital Projects, and Expendable Trust Funds.




                                                           130
                            JOSEPHINE COUNTY, OREGON

Computation of Direct and Overlapping Bonded Debt
General Obligation Bonds
June 30, 2004


                                  Net General
                                   Obligation        Percentage               Amount
                                  Bonded Debt       Applicable To           Applicable To
          Jurisdiction            Outstanding          County                 County

Direct:
  Counties:
   Josephine                  $      11,337,469            100.00%      $       11,337,469

Overlapping:
 Cities:
  Grants Pass                         2,070,000            100.00%               2,070,000
  Cave Junction                          27,047            100.00%                  27,047

 Community Colleges:
  Rogue Community College            None                           -                       -

 School Districts:
  Grants Pass District 7             30,650,000            100.00%              30,650,000
  Three Rivers District              23,100,000             96.79%              22,358,490

  Total                       $      67,184,516                         $       66,443,006




                                            131
                                               JOSEPHINE COUNTY, OREGON

Demographic Statistics
Last Ten Fiscal Years




                                                                                                                   County
                                                                                                      Total       Employees
       Fiscal                        Per Capita     School           Unemployment    Marriage        County       Per 1,000
                               (1)          (4)              (2)             (4)             (3)            (5)
       Year       Population         Income       Enrollment            Rate        Licenses       Employees      Population

      1994-95       68,100           $17,407         22,399              8.7           610             434           6.4

      1995-96       71,100           $18,183         24,894              9.9           523             429           6.0

      1996-97       72,000           $18,574         26,577              9.4           600             485           6.7

      1997-98       73,000           $19,862         24,358              8.7           564             474           6.5

      1998-99       73,000           $19,775         23,995              8.4           632             553           7.6

      1999-00       74,166           $20,666         24,447              8.4           200             555           7.5

      2000-01       74,199           $22,231         24,504              6.9           610             612           8.2

      2001-02       76,850           $22,791         21,225              8.5           592             672           8.7

      2002-03       77,950              N/A          20,373              8.6           633             696           8.9

      2003-04       78,350              N/A          19,606              8.1           736             618           7.9

(1)
    Portland State University
(2)
    Grants Pass School District 7, Three Rivers School District and Rogue Community College
(3)
    Josephine County Clerk
(4)
    Oregon Employment Department
(5)
     Josephine County Personnel Department
N/A Information not available




                                                               132
                                    JOSEPHINE COUNTY, OREGON

Building Permits and Construction Value
Last Ten Fiscal Years




 Calendar         Residential (1)                  Other (1)               Total Construction
  Year         Number       Value            Number       Value          Number        Value

      1995       598       $28,271,396        313           $4,242,303    911       $32,513,699

      1996       641       $29,332,955        334           $6,122,174    975       $35,455,129

      1997       608       $21,807,589        522           $6,279,783    1,130     $28,087,372

      1998       624       $28,668,919        395           $4,734,592    1,019     $33,403,511

      1999       652       $34,165,396        428           $3,071,336    1,080     $37,236,732

      2000       640       $33,966,996        1,924         $3,315,214    2,564     $37,282,210

      2001       857       $55,941,500        1,965         $2,527,100    2,822     $58,468,600

      2002       788       $46,914,448        2,492     $13,439,238       3,280     $60,353,686

      2003       785       $52,614,697        2,868         $9,835,260    3,653     $62,449,957

      2004       876       $60,092,922        3,388     $13,391,926       4,264     $73,484,848


(1)
      Josephine County Building Department




                                                      133
                                         JOSEPHINE COUNTY, OREGON

Schedule of Insurance and Fidelity Bond Coverage
June 30, 2004




                                                                                                             Policy Period
   Policy Number         Company                              Coverage                     Amount         From           To

PE 4601 908-00     Argonaut Insurance   All County Vehicles                               $2,000,000    7/1/2003     7/1/2004
                                        Transit Buses                                    $100,000 SIR

PE 4601 908-00     Argonaut Insurance   Public Entity Liability                           $2,000,000    7/1/2003     7/1/2004
                                        Garage Keepers                                    $1,000,000
                                        Medical Malpractice                               $2,000,000
                                                                                         $100,000 SIR
                                        Aggregate                                         $3,000,000


PE 4601 908-00     Argonaut Insurance   Employment Law Coverage                           $250,000      7/1/2003     7/1/2004
                                                                                         $100,000 SIR


PE 4601 908-00     Argonaut Insurance   Comercial Property Policy                         Deductible    7/1/2003     7/1/2004
                                         Total insurance limit varies per each insured     $25,000
                                         structure.


SP3720 OR          Security Insurance   Excess Worker's Compensation Liability            $400,000      7/1/2003     7/1/2004
                    Agency


A 187171 130       SAIF Corporation     Worker's Compensation Coverage for Fairgrounds    $500,000      7/1/2003     7/1/2004


68567382           CNA Surety           Treasurer's Bond                                   $50,000      1/14/2004   1/14/2005




                                                              134
                                        JOSEPHINE COUNTY, OREGON

Miscellaneous Statistics


Date of Incorporation                                                                     January 22, 1856

Form of Government                                                                      Home Rule Charter
                                                                        Board of Commissioners (3 Members)

Number of Employees(1):
  Elected Officials                                                                                    10
  Department Heads                                                                                     17
  Other full-time                                                                                     500
  Part-time                                                                                            91

     Total                                                                                            618


County Seat                                                                                   Grants Pass

Area in Square Miles (2)                                                                            1,641

County Facilities and Services:
  Miles of Maintained Road (4)                                                                        575
  Bridges*(4)                                                                                         196
  County Parks(5)                                                                                      24
  Park Acreage(5)                                                                                   1,655


Major Employers(6):
  Three Rivers Community Hospital                         Three Rivers School District
  Rogue Community College                                 Josephine County
  Grants Pass School District #7                          MasterBrand Cabinets
  Wal-Mart                                                Fred Meyer
  Royale Gardens                                          Siskiyou Forest Service

Principal industries(2):
   Tourism                                                Recreation
   Forest products                                        Electronics
   Software


Points of interest(2):
   Oregon Caves National Monument                         Wolf Creek Tavern
   Rogue Music Theater                                    Hellgate Canyon
   Barnstormers Theater                                   Sunny Valley Covered Bridge
   Rogue River fishing and boat trips                     Wildlife Images
   Grants Pass Historic District                          Growers Market
   Rogue Community College                                Kalmiopsis Wilderness




                                                  135
                                              JOSEPHINE COUNTY, OREGON

Miscellaneous Statistics (Continued)


Registered voters(3):
  Consitiution                                                                    107
  Democrat                                                                     14,896
  Libertarian                                                                     547
  Non-Affiliated                                                               10,066
  Other                                                                         1,412
  Pacific Green                                                                   312
  Reform                                                                           27
  Republican                                                                   22,812
  Socialist                                                                         7

       Total                                                                   50,186

Facilities and services not included in County Government:
  Public Education(7):
      Elementary Schools                                                           17
      Middle Schools                                                                5
      High Schools                                                                  5
  Hospitals(7):
      Number of hospitals                                                           1
      Number of beds                                                              102




(1)
      Josephine County Personnel Department
(2)
      Oregon Blue Book 2002-03
(3)
      Josephine County Clerk
(4)
      Josephine County Public Works
(5)
      Josephine County Parks Department
(6)
      Southern Oregon Regional Economic Development
(7)
      Josephine County Phone Directory




* Includes culverts five to eight feet in diameter if longer than eight feet
    and all culverts eight feet in diameter and larger.




                                                                 136
         JOSEPHINE COUNTY, OREGON




     DISCLOSURES IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
                AND
  INDEPENDENT AUDITOR’S COMMENTS




                    137
                          INDEPENDENT AUDITOR'S COMMENTS



Internal Control

      Our report on the County's internal control over financial reporting is presented
elsewhere in this Comprehensive Annual Financial Report.

Other Comments and Disclosures

      In connection with our audit, nothing came to our attention that caused us to believe the
County was not substantially in compliance with:

•   ORS Chapter 295 regarding collateral securing depository balances,

•   ORS 294.035 regarding the investment of surplus public funds,

•   State of Oregon legal requirements relating to debt,

•   ORS 294.305 to 294.565 in the preparation and adoption of its budget for the fiscal years
    ending June 30, 2004 and June 30, 2005, and the execution of its budget for the fiscal year
    ended June 30, 2004,

•   ORS Chapter 279 in the awarding of public contracts and the construction of public
    improvements,

•   the legal requirements pertaining to the use of revenue from taxes on motor vehicle use fuel,

•   the statutory requirements pertaining to the use of road funds,

•   the appropriate laws, rules and regulations pertaining to programs funded wholly or partially
    by other governmental agencies,

except as follows:

•   As discussed in Note 10 to the financial statements, the County overexpended appropriations
    for certain funds.

However, it should be noted that our audit was not directed primarily toward obtaining
knowledge of noncompliance with such requirements.

    Additionally, we make the following comments:

•   In March 1993 the voters of Josephine County adopted a charter amendment related to
    limitation of debt. Because this charter amendment is subject to legal interpretation, we
    make no representations as to the County's compliance with the charter amendment.




                                                138
•   The accounting records are generally adequate for the needs of the County and are
    reasonably well maintained. Comments and recommendations for improvement are
    contained in a separate letter to the Board of Commissioners of Josephine County, Oregon.

•   We have reviewed the County's insurance and fidelity bond coverage for compliance with
    legal requirements. Since we are not experts in insurance matters, we make no
    representation as to the adequacy of such coverage.

•   The County issues a separate report to meet the requirements of OMB Circular A-133,
    Audits of States, Local Governments, and Non-Profit Organizations.



                                    COMMENDATION

       The courteous assistance and cooperation extended to us by employees and officials of
the County during the course of the audit are sincerely appreciated.




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