HomeMy WebLinkAbout092010_ra01
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO:
Board of Commissioners
FROM:
Philip Morley, County Administrator
DATE:
September 20, 2010
RE:
2011 Budget Update
STATEMENT OF ISSUE:
Staff will update the County Commissioners on work to prepare the 20 II Jefferson County
Budget.
ANALYSIS:
On August 2, the County Commissioners heard the most recent of a series of updates on
county finances, focusing on Current Expense, the county's General Fund.
A growing gap between General Fund expenditures and revenues requires significant and
difficult reductions to existing public services and programs in 2011 and beyond. The
expenditure/revenue gap is perpetual and structural for rural counties like Jefferson County.
State limits on how county services are financed rely heavily on a property tax base that
steadily loses ground to cost inflation for existing services. Our annual property tax base
collected in 2002 has lagged behind inflation in the years since then, and lost approximately $1
million in actual purchasing value, and will continue to lose purchasing power in future years.
This structural problem is made worse by our nation's Great Recession, which has reduced the
County's sales tax and timber revenues, and which has lowered interest rates, eliminating most
county investment income. An economic recovery continues to be late and very gradual.
The County has made significant budget cuts and adjustments in the past two years. Even so,
Jefferson County faces a 2011 expenditore!revenue gap of $900,000 that grows annually
thereafter. The cuts we are required to make threaten to eliminate certain services and lower
the service level of virtually all mandated services. These cuts would significantly impact the
lives of citizens of the community we serve.
To give citizens a say in the depth of necessary cuts, the Commissioners on August 10 adopted
Resolution 32-10, placing Proposition No. I on the November 2,2010 general election ballot.
Prop. I asks voters if they would approve or reject a3/IOth ofl% sales tax dedicated "to
maintain certain sheriff, prosecutor, other public safety services, youth programs, juvenile
services, senior services, co=unity centers, public health and basic government services."
It is estimated that were it adopted, Prop. 1 would generate approximately $637,000 per year
to the County, and $425,000 to the City of Port Townsend. The $637,000 would cover about
two thirds of the County's $900,000 expenditure revenue gap and reduce the size of necessary
cuts to programs and services in 2011. County Resolution 32-10 identifies specific programs
and services that would be funded and be spared from cuts. If Prop 1 is not approved, then
these same programs and services would be cut. Our base reco=ended budget is being
developed premised on Prop 1 not being approved, and will phase in the following cuts:
loept
Sherlff
Prosecutor
JuvenlIe Services
Mise. Publ1c safety
subttJ public safety
Community Services: OlyCAP
Community Services: PT Sr
Association
Community services: Gardiner
Comm ctr.
COmmunity Services: Jefferson
COunty Fair
WSU Cooperative Extension
Transferto Public Health
Transfer to Substance Abuse
Transfer to Jefferson County
Conservation District
MIse. Community Services
subttl community services
MIse. Cora Servlces
subttl core services
I Total
Amount
$115,000
$37,500
IWhat
1 deputy, 1 animal control officer, 1/2 training
1/2 deputy prosecutor
1 juvenile probation officer. 5 hrs support staff, $3.700 Proctor Home &
drug/alcohol services
reductions In costs In other criminal Justice departments
$75,000
$19,000
$306.500
3 COmmunIty centers & senior services
$126,000
PT Community Center
$12,500
$2,800 ,
Gardiner Community Center
County Fair
afterschool programs for youth and reduction In facIlity space
Maternal Health Nurse (actually 56,COO}
Programs Includlng "Project Alert" that serves youth In PT. Chimacum and
Qullcene
programs In agriculture. water qualty. forestry, fish & w1ldllfe habitat and
eductatlon
$4.500
$20,000
$50,000
$45,600
$45.600
$0
$308,000
Staffing In admlnlstrattve departments
$22.500
$22,500
$637.000
TOTAL
Prop 1, if approved by the voters, would fund and preserve these same services, but Prop
1 would not solve all of the County's budget problem. Even if the voters might choose to
approve Prop 1, the County will still face a remaining 2011 expenditure/revenue gap of close
$300,000. This gap continues each year thereafter and grows over time.
To this end, the County's adopted 201 I Budget Goals and Objectives have determined that
wages for all non-union staff and most elected officials will be frbzen at 2010 levels in 2011.
In negotiations with our two unions, the Teamsters and the United Food and Co=ercial
Workers we are asking all staff to participate in this cost-saving measure. Such a measure
would reduce future years' General Fund expenditures by about $290,000 each year, and allow
the county to retain more of our valued staff and reduce cuts to programs and services. We
know the County will still need to make other cuts, but this would reduce their scope.
On September 15, the Elected Officials and Department heads held a Budget Committee
meeting to discuss preparations for the 2011 budget. The September 20 briefing will
summarize the material discussed there and next steps.
FISCAL IMPACT: Supports development of a balance budget. No direct impact, briefing
only.
RECOMMENDA nON: Hear the briefing and provide staff appropriate direction on
continuing budget preparations.
~;/~//o
Date