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Home My WebLink AboutWORKSHOP re 2027 Budget - updatedJEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS WORKSHOP AGENDA REQUEST TO: Board of County Commissioners FROM: Judy Shepherd, Finance Director DATE: July 13, 2026 RE: 2027 Budget Workshop STATEMENT OF ISSUE: The Board of County Commissioners adopts a Resolution at the beginning of every budget cycle to establish Budget Goals and Objectives with Budget Preparation Guidelines for departments and elected offices as they work to prepare a balanced Jefferson County Budget for the next fiscal year (FY). We are set to initiate the budget planning process for FY2027 (January 1-December 31, 2027). ANALYSIS: The County Administrator and Finance Director will facilitate the discussion by presenting General Fund projections, reviewing mandated services, and discussing other key considerations. FISCAL IMPACT: N/A RECOMMENDATION: The Board will provide guidance on Budget Goals and Objectives for the 2027 Budget during its July 20, 2026, meeting. This guidance will be incorporated into the budget development process and formally adopted by the Board. REVIEWED BY: Josh D. Peters, County Administrator Date 7/10/2026 BUDGET WORKSHOP 2027 BUDGET July 13, 2026 AGENDA •Where are we now in the 2026 Budget? •Scenarios for General Fund (GF) Cash Projections •Mandatory / Discretionary Services Exercise •Important Dates for 2027 Budget, including “Budget Day” Where are we now in the 2026 Budget? •Biggest Challenge –Sales tax revenue is down significantly so far this year. •Cash flow is maintaining due to property tax collections. •General Fund Departments are holding steady with few appropriations. •Wildcards for 2027 Budget Will the levy pass? Will sales tax revenue resurge to meet budget? Collective Bargaining Agreements to expire end of 2026 GF Cash Projections General Assumptions General Assumptions: Property and sales tax revenues have been updated. Other revenues will be reviewed during the preliminary budget process by the Treasurer and Finance Director. Expenditures include salary step increases, but no assumptions related to future collective bargaining. Levy Lid Lift Passes 2026 2027 2028 2029 Revised Budget Projection Projection Projection Beginning Fund Balance 5,855,359 4,768,420 4,802,223 5,121,276 REVENUES 28,877,720 29,821,262 30,789,687 31,836,839 EXPENDITURES:29,964,659 29,787,459 30,470,634 31,167,053 Ending Fund Balance 4,768,420 4,802,223 5,121,276 5,791,062 Budget Surplus / (Deficit)(1,086,939)33,803 319,053 669,786 Recommended Reserve: 15% of Expenditures 4,494,699 4,468,119 4,570,595 4,675,058 Unreserved Fund Balance 273,721 334,104 550,681 1,116,004 General Fund Levy Lid Lift Doesn’t Pass Scenario #1: Transfers to Parks and WSU from the General Fund remaining static with 2026 No Pass Levy Lid Lift - Scenario #1 2026 2027 2028 2029 Revised Budget Projection Projection Projection Beginning Fund Balance 5,855,359 4,768,420 3,570,849 2,271,694 REVENUES 28,877,720 29,442,013 30,023,604 30,676,185 EXPENDITURES:29,964,659 30,639,584 31,322,759 32,019,178 Ending Fund Balance 4,768,420 3,570,849 2,271,694 928,701 Budget Surplus / (Deficit)(1,086,939)(1,197,571)(1,299,155)(1,342,993) Recommended Reserve: 15% of Expenditures 4,494,699 4,595,938 4,698,414 4,802,877 Unreserved Fund Balance 273,721 (1,025,089)(2,426,720)(3,874,176) General Fund Levy Lid Lift Doesn’t Pass Scenario #2: Reduce General Fund expenditures by $1 million No Pass Levy Lid Lift - Scenario #2 General Fund 2026 2027 2028 2029 Revised Budget Projection Projection Projection Beginning Fund Balance 5,855,359 4,768,420 3,570,849 2,271,694 REVENUES 28,877,720 29,442,013 30,023,604 30,676,185 EXPENDITURES:29,964,659 29,259,584 29,562,759 29,879,178 Ending Fund Balance 4,768,420 4,950,849 4,031,694 3,068,701 Budget Surplus / (Deficit)(1,086,939)182,429 460,845 797,007 Recommended Reserve: 15% of Expenditures 4,494,699 4,388,938 4,434,414 4,481,877 Unreserved Fund Balance 273,721 561,911 (402,720)(1,413,176) Mandated/Discretionary Services •County departments and offices surveyed re: services provided •County provides 334 mandated services 45% are either fully or partially funded by grants or other specific, dedicated funding •County chooses to provide 100 discretionary services 64% are either fully or partially funded by grants or other specific, dedicated funding Next steps Assign values to discretionary services to help inform budget expenditure decisions. BUDGET DAY! October 13, 2026 Important Dates 7/20/2026 Provisional Budget Message –Board Agenda Item 8/03/2026 Auditor’s Office Budget Call –by statute 8/10/2026 Final Budget Message -adopt goals & objectives 9/01/2026 Preliminary Budgets due to Auditor 9/30/2026 Preliminary Budgets available for review BUDGET DAY WITH COMMISSIONERS IN CHAMBERS 2027 BUDGET CONVERSATION COMMUNICATION COLLABORATION Who should attend? •Department Elected, Director, or Designee •Only one person from each department or fund will be permitted to attend. Can I attend only part of the day? •No. This meeting is strategically important for your department and provides a valuable opportunity to engage in critical discussions with the commissioners. How long will I have to speak to the Commissioners? •Each department will have ten minutes to speak to commissioners during the morning session and address questions located in YOUR TURN •Visual presentations will not be available. Why only ten minutes? •Every department is a valued part of the county organization. Limiting time ensures that each representative has an equal opportunity to participate and engage with the commissioners. Agenda 9am-12noon Your Turn 12noon-1pm Lunch Provided 1-4pm Budget Discussions, Questions, Problem Solving Questions? Judy Shepherd, Finance Director 360-385-9231 jfshepherd@co.jefferson.wa.us Answer These Questions Headliner question: What keeps you awake at night? Choose one or more questions below: What external factors most likely most impact your budget? Where did your department over- or underspend in 2025, or what over- or underspending do you anticipate in 2026? How does your department measure its effectiveness, and how is it performing against those measures?