HomeMy WebLinkAboutWORKSHOP re 2026 GF Budget JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
WORKSHOP AGENDA REQUEST
TO: Board of County Commissioners
FROM: Judy Shepherd,Finance Director
DATE: November 11,2025
RE: Workshop—General Fund 2026 Recommended Budget
STATEMENT OF ISSUE:
At this stage of the Fiscal Year(FY)2026 Budget process,there is a General Fund(GF)budget deficit of
approximately$5.2 million.Washington State mandates that local governments adopt balanced budgets.
Action is needed between now and budget adoption in December 2025 to resolve this GF deficit.Absent
additional revenue,getting to a balanced budget for 2026 would require a 12%reduction overall in GF
expenditures.See the table(on p. 3)indicating reductions required by department.
ANALYSIS:
Each county department would be impacted by expenditure reductions;some departments would be
impacted more than others.There are several options available to the county to get to a balanced budget
for 2026 without a full 12%overall GF expenditure reduction. Options include enabling additional
revenue sources,directing certain funds to specific county services,and making other organizational
changes. Implementation of each of these represents a policy decision.Among the most impactful options
to consider are the following:
1. Apply the estimated amount to be collected in 2026 from the additional 2/10 of one percent sales
tax in unincorporated Jefferson County for the county's Transportation Benefit District(TBD),as
approved by the voters in the November 4,2025 election,as part of the fund mix to fulfill the
adopted resolution dedicating$603,200 of supplemental dollars to the Road Fund in 2026. In
combination with debt forgiveness by the Capital Improvement Fund,$36,000/annually,this
would make$638,000 available for the GF in 2026.
2. Adopt a resolution that directs$275,000 to the Therapeutic Court from Fund 131 (generated by
existing sales tax)in 2026,which represents an increase of$75,000 from 2025.This would cover
additional costs needed to operate the Therapeutic Court,while relieving the need for GF dollars
for that purpose.
3. Budget expenditure of Fund 132 dollars in 2026 for departments that perform duties and provide
services associated with court-directed opioid settlements.This would be in lieu of issuing a
Request for Proposals(RFP)for related services that would include external partners,following
funding recommendations by the Behavioral Health Advisory Committee(BHAC). Using Fund
132 dollars in this way would relieve the GF of obligating$541,000 to expenditure budgets of the
Jefferson County Sheriff's Office,Prosecuting Attorney's Office,Juvenile Services,the court
system,and/or Public Health.
4. Resolve to adopt by 2025 Board action the 1/10 of one percent sales tax option provided to local
government by state law(House Bill 2015 from 2025)to fund public safety services and to
support programs for domestic violence,mental health,and public defense.Taking this action
would enable the county to budget for additional revenue of approximately$301,600 in 2026 to
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be included in expenditure budgets of the Jefferson County Sheriff's Office,Prosecuting
Attorney's Office,the court system including public defense.There would be corresponding
adjustments to GF expenditures for GF-funded departments.
5. Direct the County Administrator to coordinate with county departments and offices to move staff
currently located at"The Annex,"leased from the Port of Port Townsend,to the courthouse and
to use accessible grant funds to develop Elections capacity within a building adjacent to the
courthouse.This would eliminate rent and utility expenses for a portion of 2026 and for future
budget years. For the 2026 budget, staff estimates a GF savings of$20,000 due to the fact that
movement from The Annex would not occur until at least May 31,2026.
See the table(on p. 3)indicating the effect on requirements for county departments to reduce
expenditures should the county choose to implement all the measures listed above.
Note that county staff are considering other cost-saving and revenue-generating ideas for 2026 and
beyond.The options listed above are measures that could be instituted as part of the 2026 budget decision
process,which is scheduled for completion(i.e.,budget adoption)in December 2025.Additional
measures implemented in 2026 would be done with the expectation to improve the GF end fund balance
next year.
FISCAL IMPACT:
To be determined based on Board approval and guidance.
RECOMMENDATION:
Staff seeks Board guidance for development of a fiscally responsible budget for FY2026 in a way that has
the least impact possible to county departments,staff,and services to residents. Staff requests direction on
whether to pursue specific options listed above for inclusion in the recommended 2026 budget that will be
the subject of a public hearing anticipated for December 1,2025.
REVIEWED BY:
to• lirr,:l. 11/7/2025
Jo• D. Peters, County Administrator Date
2026 Recommended Budget-General Fund
Department
Percentage Impact of
Total Net of Total 12%Reduction Additional
Expenditures Budget Required Funding Other Funding
DEPARTMENT 3,913,680 2,190,800 Law/Justice Tax 301,600
010Assessor 1,244,169 4.22% 165,181.72 92,465.43 RoadsSRS/PILTAid 638,000
020Auditor 1,027,626 3.49%i 136,432.46 76,372.17 OpioidSettlementFunds 541,000
021 Elections 491,007 1.67% 65,188.40 36,491.16 CS Internal Svcs Reduction 242,280
050Clerk 501,232 1.70% 66,545.92 37,251.08 1,722,880
059 County Administrator 513,480 1.74% 68,172.02 38,161.34
060 Commissioners 844,232 2.86% 112,084.21 62,742.50 Therapeutic Cts 75,000
061 Board of Equilization 8,730 0.03% 1,159.04 648.81
062 Civil Service 6,672 0.02% 885.81 495.86
063 Planning Commission 39,116 0.13% 5,193.22 2,907.06
065 Human Resources 578,838 1.96% 76,849.25 43,018.68
067 Emergency Management 287,877 0.98% 38,219.90 21,394.74
068CommunityServices 317,320 1.08% 42,128.89 23,582.91
080DistrictCourt 823,264 2.79% 109,300.40 61,184.18
110 Juvenile&Family Court 1,046,483 3.55% 138,936.00 77,773.60
150 Prosecuting Attorney 1,799,864 6.11% 238,958.40 133,764.15
151Coroner 93,981 0.32% 12,477.36 6,984.58
180 Sheriff 9,136,646 30.99% 1,213,024.05 679,026.67
240 Superior Court 562,226 1.91% 74,643.77 41,784.09
245 THERAPEUTIC COURTS CASE MG 5,324 0.02% 706.84 395.67
250 Treasurer 772,474 2.62% 102,557.28 57,409.52
261 Operating Transfers 2,629,912 8.92% 349,159.47 195,452.51
270 Non-Departmental 6,747,845 22.89% 895,875.61 501,493.30
Total General Fund P 29,478,318 100.00%11' 3,913,680 2,190,800.00
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