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HomeMy WebLinkAbout065 13r ✓ STATE OF WASHINGTON County of Jefferson r. In the Matter of Updating the Working } Capital Reserve Recommendation for } RESOLUTION NO. 65 -13 Each County Fund } WHEREAS, it is critical to the adequate financial management of County Funds to clearly define the working capital reserves recommended for each County Fund at the end of each fiscal year; and WHEREAS, proper working capital reserves enhance the stability of County programs and services from one year to the next, and are also intended to accommodate temporary cash flow needs for uninterrupted operations during a budget year; and, WHEREAS, Resolution No. 63 -11 approved in 2011 stipulated the reserves for all County Funds, and, WHEREAS, the specific recommendations for the type and level of reserve for each County Fund have been reviewed and proposed by staff with appropriate revisions; and, WHEREAS, the County Administrator is supportive of these reserve recommendations; NOW, THEREFORE BE IT RESOLVED, that the Board of County Commissioners hereby repeals and replaces Resolution No. 63 -11 with this resolution, including the "List of Reserve Recommendations — All Funds," attached hereto and incorporated herein; and, BE IT FURTHER RESOLVED, that where both percentage and dollar reserve recommendations are listed for a Fund, the larger of the two shall be the recommended reserve; and, BE IT FURTHER RESOLVED, that the reserve for each Fund is intended to be measured at, and should be met at, the end of each fiscal year, allowing reserves to be used for temporary cash flow during the budget year; and, BE IT FURTHER RESOLVED, that the Board of Commissioners hereby directs the Department Heads and Elected officials to consider the reserve recommendations as they prepare their budgets during the annual budget preparation process and the preparation of supplemental budget requests; and, BE IT FURTHER RESOLVED, that the Board of Commissioners hereby directs the County Administrator to consider the working capital reserves when preparing a balanced budget proposal for the Board of Commissioners during the annual budget preparation process and the preparation of supplemental budget requests. APPROVED this day of December, 2013. JEFFERSON COUNTY BOARD OF COMMISSIONERS John us n, C 'r Phil Johr M b�� ATTEST: Carolyn Avery Deputy Clerk of the Board JEFFERSON COUNTY- List of Reserve Recommendations - AH Funds 191N9013 Fund % Minimum reserve Description 001 - GENERAL FUND 10% 110% of Total Spending 105 - AUDITOR'S O &M 10% X10% of Total Spending, euluding capital 106 - COURTHOUSE FACILITATOR NIA None Required 107 - BOATING SAFETY PROGRAM 10% 10,00010% of Total Spending,or$10, 000 whichever is larger, excluding capital 108 - COOPERATIVE EXT. PROGRAMS 10% 32, 000;10% of Total Spending, or$32,000, whichever is larger 113 -4 -H AFTER SCHOOL 10% 10, 00010% of Total Spending, or$10,000, whichever is larger 114 - ECONOMIC DEVELOPMENT NIA None Required 119 - JEFFCOM CAPITAL FUND (new 2011) 5% 5% of Debt SeNce Eyense 120 -CRIME VICTIMS SERVICES 10% 10% of Total Spending 122 -E -911 TELEPHONE (JEFFCOM) 10% 10% of Total Spending, excluding capital 123 -JEFF CO GRANT MANAGEMENT FUND I 10% 34,000 10% of Total Spending, or $34,000, whichever is larger 125 - HOTEL -MOTEL 25% 25% of Total Spending 126 -H8HS SITE ABATEMENT 1 N/A None Required 127 - PUBLIC HEALTH N/A 253,981 Minimum recommended reserve is 253,981 128 -WATER QUALITY 10% 171,000 10% of Total S pending, or $171,000, whichever is larger 129 - ANIMAL SERVICES N/A None Required 130 - MENTAL HEALTH N/A Pass Through Fund only 131 - CHEMICAL DEPEND /MENTAL HEALTH 10% 10%of Total Revenues 135 - JEFFERSON COUNTY DRUG FUND 10% 10 %of Total Spending 136 - SHERIFF DRUG INVESTIGATION 10% 10%of Total Spending 140 -LAW LIBRARY 10% 10% of Total Spending, Excluding Capital 141 -TRIAL COURT IMPROVEMENT 10% 10% of Total Spending 142 - PUBLIC DEFENSE FUNDING N /AI None Required 143 - COMMUNITY DEVELOPMENT 10 %� 153,000 10% of Total Spending, or$153,000, whichever is larger 147 - FEDERAL FOREST TITLE III N/A; None Required 148-JEFF CO AFFORDABLE HOUSING 10 %1 10% of Total Spending 150- TREASURER'S O &M NlAI None Required (RCW84.56020(08) 151 -REET TECHNOLOGY FUND NfAI None Required 155- VETERANS RELIEF 10 %1 10% of Total Spending 160 -WATER POLLUTION CNTRL LOAN FUND 10 %j 67,000 10 %of Total Spending, or$67,000, whichever is larger 174 -PARKS AND RECREATION 10 %1 64,000 10% of Total Spending, or$64,000,whicheveris larger 175 - COUNTY PARKS IMPROVEMENT FUND NIA Capital projects only, Fund requires no working capital 177-SPECIAL PROJECTS FUND 10% 25,000 10% of Total Spending, or $25,000, whichever is larger 178 -POST HARVEST TIMBER MGMT RESV NfA Special Projects only, Based on prefunding expenses 180 - COUNTY ROADS 25 %] 25% of Operating Expenses, excluding capital 181 - EMERGENCY ROAD RESERVE NIA Emergency Projects only, based on prefunding 183 - FACILITIES MANAGEMENT 10% 66,000 10% of Total Spending, or$66,000, whicheveris larger 185 - FLOOD /STORM WATER MANAGEMENT N/A Capital projects only, Fund requires no working capital 186 - BRINNON FLOOD CONTROL SUB -ZONE NIA Capital projects only, Fund requires no working capital 187 - QUILCENE FLOOD CONTROL SUB -ZON N/A Capital projects only; Fund requires no working capital 301 - CONSTRUCTI0N & RENOVATION N/A 10% of Total Spending, ecuding capital 302 - COUNTY CAPITAL IMPROVEMENT 50% 50% of Annual Debt Serice e)pense 304 -H.J. CARROLL PARK NIA Capital projects only, Fund requires no working capital 306 - PUBLIC INFRASTRUCTURE ries ! Unpaid portion of approved grants 308-CONSERVATION FUTURES TAX I 10% j10 %of Total Spending, excluding capital 401 - SOLIDWASTE 10% 10% of Total Spending 402 -SOLID WASTE POST CLOSURE N/ Based on prefunding post-closure expenses 403 -SOLID WASTE EQUIPMENT RESERVE i NIA Capital projects only Fund requires no working capital 404-YARD WASTE EDUCATION FUND N/A Prefunded expenses 405-TRI -AREA SEWER FUND i 10% 10% of Total Spending, excluding capital 501 - EQUIPMENT RENTAL &REVOLVING 25% 25% of 12/31 Accumulated Depreciation for Equipment 502 -RISK MANAGEMENT RESERVE N/A 216,000 10% of Total Spending, or$216,000, whichever is larger 503-JC UNEMPLOYMENT RESERVE N/A None Required 504-INDUSTRIAL INSURANCE RESERVE N/A None Required 505 - EMPLOYEE BENEFIT RESERVE N/A 125,000 10% of Total Spending, or$125,000, whicheveris larger 506 - INFORMATION SERVICES 25% 25% of 12131 Accumulated Depreciation for Equipment 4�¢goN eC11 9S � HiKo JEFFERSON COUNTY ADMINISTRATOR 1820 Jefferson Street • P.O. Box 1220 • Port Townsend, WA 98368 www. co. jefferson. wa. us TO: County Commissioners FROM: Philip Morley, County Administrat DATE: December 9, 2013 SUBJECT: Message for the Final 2014 Jefferson County Budget This memorandum summarizes highlights of the Final 2014 Jefferson County Budget. The memo follows the same format as recent years. The Board of County Commissioners received verbal and written public testimony on the Recommended 2014 Budget at a Public Hearing held on December 2, 2013. The Board of County Commissioners considered the public comments in their deliberations, and gave direction for preparing the Final 2014 Budget for adoption. OVERVIEW Staff, elected officials and department directors have worked together in preparing a budget for 2014. The total 2014 Jefferson County Budget is $51,764,159 for all funds combined: General Fund: $ 16,813,568 Other Funds: $ 34,950,591 All Funds: $ 51,764,159 Details of the Final 2014 Budget can be viewed and downloaded on -line at www.co.iefferson.wa.us. Table 1 below shows how the 2014 General Fund compares to 2013. TABLE 1: GENERAL FUND Beside the General Fund, the County has 54 other funds, ranging from the County Road Fund, to Public Health, to the Solid Waste Fund, to a Veterans' Relief Fund. Revenues and expenditures for the County's other 54 funds are aggregated and shown in Table 2. The 1 of 17 2013 Original Budget 2013 Projected Yearend 2014 Budget % Change From 2013 Projected General Fund Revenues $15,900,271 $16,989,137 $16,286,094 -4.1% General Fund Expenditures $16,464,866 $17,063,779 $16,813,568 1.5% Estimated Ending Fund Balance $2,184,836 $2,684,408 $2,409,137 - 10.3% Unencumbered Fund Balance $398,349 $538,030 $287,781 - 46.5% Beside the General Fund, the County has 54 other funds, ranging from the County Road Fund, to Public Health, to the Solid Waste Fund, to a Veterans' Relief Fund. Revenues and expenditures for the County's other 54 funds are aggregated and shown in Table 2. The 1 of 17 amount typically varies year -to -year depending on when large capital projects (such as road projects) happen to fall. TABLE 2 ALL OTHER FUNDS 2013 Budget 2014 Budget % Change Revenues $ 32,536,176 $ 30,135,547 -7.4% Expenditures $ 37,080,973 $ 34,950,591 -5.7% Revenue Trends: Improving, But Losing Ground To Inflation Jefferson County, like the citizens and local businesses we serve, has been affected by the recession. From years 2009 to 2012, the recession flattened or reduced many County revenues. In addition, the 1 % cap on property tax collections means that the buying power of the County's property tax revenue base has declined against cost inflation. We have shrunk our government and kept Jefferson County fiscally sound. We cut programs, and thankfully, were able to rescue some programs when citizens passed Proposition 1 in 2010 to save specific services and positions from being eliminated. 2013 has been the first year since 2006 that sales tax revenue has shown a substantial increase. Combined regular and special purpose sales tax is estimated for 2013 at $3,055,000, a 15% increase over 2012. Some larger capital projects this year generated one -time sales tax that accounts for part of this, but we also estimate there has been a 10% increase in our economy's on -going retail sales volume — a very welcome development for our community. Fewer large capital projects seem likely next year, but a modest economic recovery is hoped to continue, leading us to expect $3,001,000 in regular and special purpose sales tax in 2014, just slightly less than 2013. Still, when adjusted for inflation, the purchasing power of the County's real sales tax revenue is lower than it has ever been since before 1996. For the past six years, a sluggish real estate market created a shortfall in county revenue from Real Estate Excise Tax (REET) that historically paid the County's annual debt payments. During the recession the General Fund has had to make up the difference. Because of a modest recovery in real estate activity in 2012 and 2013, REET will likely cover all but about $50,000 of the County's $628,000 debt obligation in 2013, and is expected to perform about the same next year. Revenue from REET historically exceeded the County's debt obligations, and was the primary funding source for major repairs and capital maintenance of the County's buildings, facilities and parks. Since 2008, REET revenue has been unable to contribute a single dollar for capital repairs. The General Fund stepped in to contribute some limited funds for the most pressing capital repairs and maintenance, made possible by cuts to General Fund programs, as well as unexpected one -time revenues, such as a large federal Payment In Lieu of Taxes (PILT) that the County received in 2013. 2of17 Budget Strateav: A 5 -Year Plan to Constrain Expenditures The 2014 Budget continues the County's strategy — implemented in 2009 in the face of the Great Recession — to hold General Fund expenditures essentially flat, despite escalating costs for existing services. We continue to use a rolling five -year revenue and expenditure projection to inform budgetary strategies for current and future years. See TABLE 3 on the next page, which shows the General Fund from 2011 to present as well as projected General Fund budgets for 2014 -2018. In the six years since 2008, base budget expenditures in the General Fund (normal departmental expenditures excluding special one -time expenditures from unexpected revenue) have increased 6.6% total, an average of only 1.1 % per year. Due in part to the improved sales tax revenues and the stability of other general fund revenues, the 2014 General Fund Budget continues an 1.1% increase to the base budget expenditures as well as salary and benefit increases as determined by union contracts. The General Fund provides operating transfers to other funds such as Parks, Public Health, and Community Development. These transfers reflect a 2 — 5% increase after 5 years of having been flat or reduced. This modest increase still does not cover increases in costs due to inflation requiring continued service level reductions by each department. The General Fund's proposed expenditure of $16,813,568 in 2014 has $163,000 of one- time expenditures, including the remaining $13,500 for the new appraisal software in the Assessor's Office, $50,000 in one time expenditures distributed to various departments, $74,500 transfer to Water Quality Fund as they explore other more permanent funding sources, and $25,000 allocated for extraordinary trial costs in 2014. A total of 266.75 full time equivalent employees (FTEs) are proposed for 2014, compared to 269.42 FTEs budgeted in 2013, a net reduction of 2.7 FTEs. Not including JeffCom which is no longer a County Department, Jefferson County's 2014 Budget shows a reduction of 28.85 FTE's from Budgeted 2008, and is the lowest it has been since 2000. (See ATTACHMENT 3.) In 2014, the General Fund will draw down about half of its remaining unencumbered fund balance (funds in excess of its reserves). Through 2017, existing public services will continue to consume the unreserved fund balance to avoid deeper cuts. The unreserved fund balance will be virtually exhausted by 2017, before it starts rebuilding in 2018. 3of17 00 r 0 N Q N Z O_ U W O M w CL W Hp 'r^ V_/ Z LL LL J ui Z W 0 ►i N y :i m °vm r r At C �N rO N O 9 N OWi W W W O W O MWi Q M N r M Q N N Q T Q O a O. m N n W W cG H T C N O W W a M M N PS m o n o M ° Q M w o o cli v 0) N N A N O r N 0) O N M W Q n Q m N o o e W N T ^ 'm^ Y N N N O M O M m O n 0 r a M m 9 ma r m out m o m M Q r o LO N W° 'm (pN W m rM vo W o v W Nvmo rinno LO O d N N W Ir o r (O W N Q c N (y 0 m M N r N Q V N N N C Q co a N [O n 0 r 0 r N d B N W W W C N N M M O M N tD 0 0 tp ^ N N O o N 9 n° jai o m moo n r W a o W ^ m m O T rn o� N Q Nl A M e� N O Q O r r 0) v N Q m a N f0 f0 (O r N T r mQ o o.Q ao: oO"o'o o QNWO o � ,v E' d OM Iq OO %q 10 ut CL W N ,I � v p E •O Q N P1 O W Y) O -: W �a N M N W� O n ^ n N ..� Oct NE o m _m W elf T' N Q N O (p N M r o D o m rn o 0 o rn r W W o o � y do.- M m nirn o 0o o vi ui ai r 0 6 co 0o r ovi M a an o vi ago 0 C O OJ M �U O W r O M �O tp N W O Q W Q m O Q) O O m f0 M t0 n O � o a `M N W W O r m O O of f0 m th W O N N CON W moo Mo o-- v co emo M O O O O N N N m M t0 O O M Q N I Cl)... N m O m (p O O O fp M OI O O a o W r�o Qo Woo O W o�noo � a W N M N O N W O O O O W m O O m@ N O O N N N O N y N O N N O O W N O O N n c O Q y m V r O> m 1n f0 N o 06,6 O Q p� N N 0) N W N M m N W W tO O W W 0 E 5 tp N OI N T Q N N^ (O N N N T c a d d M C N o O U 42 '° o y 3' v m E n d° a a :o c c °. d ac o � J x W 0 m N y o c v y g W ' ° m o Er 0 o �d i .p 5 X C= 2 a r a c 0 o O v ¢ s ¢ aa y ao a mc � � `o LL d c m o d LL E y m Q t m o w c O n Q °' m a CL c y W£ O m W E U Lb a W a E d E m LUV O Z d q c m F d L o 01 H m d � K` c m d C d K ►i In 2010, the County established a revenue stabilization reserve for windfall sales tax and other one -time revenues received to be reserved for use in future down years when variable revenues (like DNR timber harvests and PILT) are down, or to help the County weather a new recession. Set asides to the revenue stabilization reserve are dictated by formal policy resolutions adopted by the Board of County Commissioners in past years. The revenue stabilization reserve is in addition to the 10% minimum reserve (approximately $1.7 million) the County maintains for cash flow and emergencies. At the end of 2013, the revenue stabilization reserve will be $440,000, using $330,000 of unanticipated sales tax and PILT received in 2013. Jefferson County employees have been instrumental in helping to stabilize the budget since the recession hit in 2008. Over these years many employees have had hour reductions, a freeze in step increases and /or no wage adjustments which has been a hardship they bore to help preserve public services. Some of our current labor agreements have very modest wage adjustments. The contributions our staff has made, as well as other permanent annual reductions that departments made to their budgets has helped the County to sustain our remaining services and reduce the size of future annual budget cuts. There is a parallel between the County's position in this economy and the position of County employees. As noted, the recession and a I% property tax limit have required the County to constrain budgeted expenditures while inflation continues to erode the budget we do have. Similarly, limited revenue has required the County to control labor costs by constraining general wage adjustments for many of our employees for the past several years, and we must continue to do so for several more. While this helps the budget and continues employment for as many of our valued County staff as possible, staff and their families are also impacted by inflation just as is the County. Tightly constrained general wage adjustments are necessary budget tools for the time being, but cannot be continued indefinitely. Additional Explanation of the 2014 Budget Table 4 shows major staffing changes in all funds for 2014. TABLE 4 Major Budget FTE Changes in 2014 Reductions FTE Description Change Juvenile Services - .40 Transferred .6 County FTE to contract employees. Add Clerk hire and increase one staff from 35 to 40 hours for Guardian Ad Litem program Sheriff - .71 Community Services Officer in corrections not funded in 2014 Public Health -1.85 Decrease in Administrative and Finance staff of 1.45, Reduction in PHN hours of .4 FTE Parks $ 1.00 Reduction in County Recreation programs -1.7 FTE, Add .7 FTE to Recreation parks and field maintenance 5of17 Reductions FTE Description Change Special Projects - .85 Temporary RCM Manager position ended Fund available funding Roads - .66 Reduce .25 FTE Dev. Review Coordinator hours, reduction in .62 Development FTE in Road Transportation division Tri -Area Sewer -1.16 Eliminate Waste Water Manager position Gains FTE Description Change General Fund - + .75 Filled an administrative position eliminated in 2009 due to lack of Auditor available funding Community +1.77 Increase to 40 hours per week in 2014. In 2013 Community Development Development staff worked 32 hour week January through June. Facilities +1.14 Added 1 FTE Facilities Maintenance position to perform deferred Management maintenance work, or do work performed by outside contractors. The cost of this position will be partially offset by a lowered amount of professional services. Grant - funded projects in 2014 in the Department of Community Development ending in 2015 mask the extent of staffing reductions. A detailed breakdown of staffing levels by department and fund 2003 - 2014 is attached to this memo as ATTACHMENT 3. Other significant changes in the 2014 budget as compared to Budget 2013 are summarized below. GENERAL FUND REVENUES: Sales Tax 300,000 1 Sales Tax for 2013 is budgeted at Z,oZO,ODD and Budget 2014 is 2,321,000. Special Purpose 60,000 Special purpose sales tax is estimated in 2014 at Sales Tax $680,000, up from the 2013 Budget of 620,000 GENERAL FUND EXPENDITURES: Prosecuting 93,217 Permanently Funded Deputy Prosecutor position Attorney funded in 2012 and with one -time funding. $5,300 of this is paid for from the Jefferson County Drug Fund. $6,500 for purchase of tablets for attorneys 6of17 .87 FTE Administrative Clerk funded, a portion of which was funded with savings from staffing County 9,000 One time funding of clerk hire hours for 2014 Administrator first 6 months of 2013, all employees were reduced to 32 District Court 6,875 Bring a clerk position back to full -time. Juvenile Services 15,600 Guardian Ad Litem (GAL) position increase from 35 to Parks Et (74,278) 40 hours, additional clerk hire hours for GAL program. Recreation 7,800 One time allocation for Proctor Home respite costs. Sheriff (45,000) Community Services position in corrections not funded in 2014. 16,679 One -time funding of a portion of Administrative Salary, also funded one -time in 2013. Superior Court 13,021 Increase Administrator hours from 32 to 40 in Superior Court, add one time allocation to expert witness budget Safety Et Security 5,800 Increase in General Fund contribution to Safety l3 Security for preventative maintenance of emergency management equipment (1,800 one time funded) Operating Transfers 23,200 Increase of transfers of 5,800 each to Community Dev, Public Health, Parks Et Recreation, Cooperative Extension (1,800 of is one -time funded) Non - Departmental 76,150 $25,000 for legal services for trial in 2014; $51,150 additional user fees for JeffCom in 2014 OTHER FUNDS REVENUES: Community 1 165,000 1 Projected increase in tee and permit revenue Parks Et (51,920) Decrease in fees due to reduction in recreation programs Recreation Solid Waste Fund 597,000 Increase in solid waste fees per ordinance, also slight increase projected in Solid Waste tonnage after remaining flat for last several years. OTHER FUNDS EXPENDITURES: Community 108,000 Increase all employees to 40 hours in 2014. During the Development first 6 months of 2013, all employees were reduced to 32 hours per week. 2014 budget eliminated Planning Clerk position budgeted and not filled in 2013. Parks Et (74,278) Decrease in expenditures from lower staffing for Recreation recreation programs and reduced programs. 7of17 F T,r'',t�„f, �6 �.... •-. 'are --. ar �is�xi �i; "s, a... o�.- n.,..�,w ,c.�,ti „R .tu5m" .o. d.♦ : -x-s .'.9`sa.' st mi pital purchase of new County VOIP Phone system Impacts of reduced support by General Fund on County Departments Community Development - Despite cutting its size in half in 2008 and 2009 and running lean since then, the Department of Community Development continues to be impacted by the larger market trends in the real estate and development economy. The amount of new construction continues to be lower than any year since 1989. Permit revenues for moderate home construction continue to be low, although there has been a slight uptick in commercial projects. Reduced staffing impacts permit review turnaround, and limits our capacity to address the community's long range planning needs. The scheduled end of several major grants that have added revenue will further challenge DCD after next year. Public Health - The Health Department has responded to the essentially flat General Fund transfers by reducing staff in 2014. Like the General Fund, they have been able to use unreserved fund balance to help them through the recent lean years. However, these reserves are dwindling and new revenues must be found to support programs or they will be faced with more severe cuts in future years. Water Quality - Temporary funding is sustaining water quality programs that are important for environmental and human health. Unless new funding is found, these programs cannot be sustained at present levels in future years. In 2014 we will be reviewing the per - parcel Clean Water District fee and its ability to cover the actual cost of water quality services. Parks & Recreation - Our County Parks system has been on life support since November of 2009, when the recession required the County to lay off Parks staff, close facilities and turn to the community to keep most of our parks running through a "temporary" Adopt -a -Park program that continues to the present day. The County sounded the alarm in 2009 that this important, but discretionary, community service was in danger, and in need of an adequate, dedicated and stable funding source. Memorial Field and the Recreation Center which serves over 300 children with free drop -in recreation, would be closed but for a four -year reprieve through an agreement with the City of Port Townsend to dedicate half of its Prop. 1 revenue to reopen those facilities. Prior to placing Prop. 1 Special Purpose Sales Tax on the 2010 fall ballot, the County and the City agreed if Prop. 1 passed to use City Prop. 1 revenue to fund the Rec Center and Memorial Field for up to four years, while the City and the County partnered to find a permanent solution to sustain both County and City parks and recreation. 8of17 In 2011, we jointly convened an Exploratory Regional Park and Recreation Committee ( ERPRC) of 18 community stakeholders and government officials to evaluate sustainable funding and delivery options. In June 2012, after exhaustive study, the ERPRC confirmed that existing Park and Recreation was "not sustainable," and recommended the City and County cooperate to develop a proposal for a combined Metropolitan Park District (MPD), to be placed on the ballot for citizens to vote on. Last year's County Budget Message sounded the alarm again, stating "Our County Parks and Recreation program is facing a crisis. That crisis is here and now." In early 2013, a citizen MPD Steering Committee that was jointly convened by the City and County began meeting regularly to define the boundaries, facilities and programs and property tax funding for a potential MPD to be placed on the ballot. Despite the Steering Committee's hours of dedicated work, open public meetings and a community open house in May, recreation and parks advocates and our community partners did not rally to support an MPD. Instead, significant community opposition and uncertainty developed. An August vote on a City library bond was rejected by city residents by a 60/40 margin, signaling growing voter skepticism of new tax measures. In September, citizens in Port Ludlow and Kala Point circulated separate petitions to create their own Park and Recreation Districts under the belief that it would somehow prevent any future larger MPD from including their area. Both petitions readily gathered sufficient signatures to be placed on the November ballot. MPD Steering Committee members heard persistent fear that the delivery of services would not be equitable, and a community might be forced to subsidize services to another, or that control of the MPD would be dominated by another community, and fear that the elected governing body for an MPD would be unaccountable to voters and would automatically raise property taxes to the maximum. Rather than rally to save parks and recreation, what little citizen activism there was focused instead on fighting it, or on diverting public attention to a County Charter campaign that was eventually rejected by 70% of voters countywide. In the face of all this, the MPD Steering Committee concluded in October 2013 that an MPD was not feasible at this time, and recommended that the City and County abandon the effort. The City Council and County Commissioners accepted their recommendation, and ended the MPD process. Meanwhile, inflation has continued to erode the buying power of flat funding for the County's Park and Recreation Division, so that projected revenues for 2014 are now $50,000 short of expenditures to sustain current programming and facilities. Worse yet, in mid 2015, the temporary City funding for the Rec Center and Memorial Field will end, and the County has no way to pick up the shortfall when that happens. As funding is reduced, County recreation staff will do its very best to continue to deliver quality programs within our available budget to benefit the community. While it is too early to say exactly which programs or facilities may need to be re- designed, eliminated, scaled back, or handed off to other organizations, possibilities include Summer Day Camps, Kid Fit, Junior Hoops Basketball, Adult Softball, Pick -up Soccer at Blue Heron, 9of17 Kinder Camp & Kinder Sports, etc. Because of the Prop. 1 funding dedicated by the City of Port Townsend through May of 2015, the Port Townsend Rec. Center and Memorial Field will continue operations during that period. The County will be actively seeking other organizations to take on recreation programming for the community that we may no longer have the financial wherewithal to provide. Compliance Opinion & Basis for Budget Preparation The 2014 Budget complies with all statutory and constitutional requirements, and substantially complies with adopted county ordinances and resolutions, including: • Resolution No. 36 -13, setting Objectives and Procedures for the 2014 County Budget; • Resolution No. 32 -10, directing that Proposition 1 funds be used to retain or provide certain listed programs and projects or similar programs and projects within available funding - see Attachment 4, titled "Special Purpose Sales Tax/Public Safety Sales Tax: 2011 and 2012;" and • Resolution No. 38 -10, setting how sales tax revenues shall be budgeted, and setting aside sales tax exceeding the budgeted amount for use for future revenue downturns, capital facilities projects, one -time operating costs and reduction of property taxes. • Each fund meets the minimum recommended reserve, established by a separate Resolution. Other Notes • The 2014 level of "diversion" of Road Fund property tax to the General Fund is $720,000, the same dollar figure as 2011, 2012 and 2013. It is equal to or less than the amount of money budgeted to be expended for traffic law enforcement by the Sheriff in 2014. • Revenue: This 2014 Budget includes: • the allowable 1% property tax revenue • the allowable 1% property tax revenue • the allowable 1% property tax revenue Fund increase for the Road Fund increase for the General Fund, increase for the Conservation Futures • the base sales tax of 1 % • the 0.1 % sales tax for Criminal Justice to the General Fund • the 0.3% special purpose sales tax to the General Fund approved by the voters in November, 2010 (Prop. 1) • the 0.1 % sales tax for Mental Health /Chemical Dependency • the 0.1% sales tax for JeffCom 911 Under the 2014 Budget, Law & Justice is 59% of all General Fund expenditures (excluding the Assessor's one -time software purchase and transfers to Capital) 10 of 17 Debt: At year end 2013, the County expects to have the following principal outstanding on the debt: General Obligation Bonds $6,635,000 Contractual Borrowing $3,544,452 Existing Debt: Principal Outstanding 12131/13 $10,079,242 The graph in Table 5 below shows the county's schedule of annual debt service payments (for principal plus interest) which will decline over time. The graph shows all county debt, and also highlights in green that portion currently anticipated to be funded by Real Estate Excise Tax and /or the General Fund. TABLE 5 $1.400,000 r $1200,000 Y I Jefferson County Annual Principal & Interest Due _... _rev 112cl1�_ _ — I — _ —_. —_ _. _ __ $1000,000 _ s $600.000 1 $400.000 } 777 $200.000 0,10 0.1'1 o.1'Y O�^a 0,,o- O,Yh 0,16 0,1'1 0.14 O,y9 O.`O O.y'1 Oryti Oti3 oyd O,yS O,yN O.1'� 0.10 pyA o�0 M11 -1,. —d Prmdpal&1n1 -1Cue — 19il —.11, 1.11 by County P.EFTJG en I F—d This graph also shows payments on County bonds issued for JeffCom while it was a County Department. An Interlocal Agreement between the County and all other public agency members of JeffCom now guarantees servicing of the JeffCom bonds will be shared by all JeffCom members. The County's JeffCom bond debt service is funded by JeffCom's E911 sales tax revenues. 11 of 17 CONCLUSION The 2014 Budget is a fiscally responsible budget. Still, significant challenges and opportunities lay ahead. Developing the 2014 Budget has been a cooperative process. The cooperation of our independently elected officials, appointed department directors County staff and their bargaining units has been central to our success so far, and remains a major strength in our ability to meet the challenges ahead. Each year, many individuals in every branch and department of our organization work hard to prepare the Budget. Particular recognition and my personal thanks go to Anne Sears, County Auditor Donna Eldridge, County Treasurer Judi Morris, Erin Lundgren, Rose Ann Carroll, Renee Talley, Frank Gifford, Leslie Locke, Julie Shannon, and Carolyn Avery. Special thanks are reserved for retiring County Assessor Jack Westerman III, who has served the County with distinction for 39 years, including annual contributions to the budget process by helping forecast revenues, and by practicing the arcane science of tracking banked capacity, calculating annual levy rates, and so much more, with consistent accuracy. A former distance runner, Jack has run a very long race at the County -- and he has run it exceedingly well. ATTACHMENTS: 1. 2014 General Fund Summary 2. 2014 Other Funds Summary 3. 2014 Departmental Staffing Schedule o 4. 2014 Special Purpose Sales Tax 12 of 17 ATTACHMENT 1 - page 1 JEFFERSON COUNTY GENERAL FUND - Final 2014 Budget December 9, 2013 Page 1 of 2 Percent change from previous year 7.1% -4.9% 2.4% 9.4% -4.1% 13 of 17 2011 2012 -2013 2073 GENERAL FUND Actual Actual Budget projected ARS i REVENUE TYPE Revenue Revenues Revenues Revenues 311 Property Tax 6,953,374 7,031,584 7,185,900 7,175.799 2,1300, 311 PropertyTax - levyshift from roads 219,550 0 311 Diverted Road Taxes 723,021 721,568 720,000 719,715 .y 7ti0tiD - 311 Sale of Tax Tile Property 820 0 0 312 Private Harvest Tax 294,865 283,594 230,000 317,269 312 Private Harvest Tax(div) 40,700 41,380 .25,500 32,000 313 Sales Tax 1,968,790 2,047,153 2,020,160 2,3511788,31 ". 313 Sales Tax -LOST 265,384 261,378 263,000 287,671 L, 313 Sales Tax - Special Purpose 381,309 621,440 620,300 .709,808 317 Leasehold Excise Tax 59,689 58,148 56,000 61,981 317 Treas Collection Fees 26,798 35,036 27,000 391,357 s 319 Interest& Penalties 371,250 1 364,593 :275 -,400 342,122 TOTAL TAXES 11,305,550 11,465,874 11,423,260 12;037510 332 Fed Entitlements -PILT 516,288 641,300 447,000 1283164 335 PLO Priv. Tax 16,788 31,380 40,300 32,775 336 Crim Just Hi Crime /DUI /Asst 324,314 332,264 333,540 359,67$;,',' 336 Liquor Excise Tax 39,237 31,873 40,170 : 0 �� t ff- 336 Liquor Profit 66,788 95,724 68,000 84,852 349 InterfundServ.- CostAlloc. 362,820 271,071 297,950 310,122„�,Sd`0' 361 Investment Income 106,558 41,863 210,000 381,391 ,, 341 Treasurer's Investment Fees (361,362) 4,736 4,323 25,400 3,551 360 Miscellaneous Revenue 38,574 74,722 45,500 44,747 r i ,r- 395 Timber Sales D.N.R. 555,213 222,727 263,160 104,566 395 Sale of Surplus Real Property 0 0 " 0 0', 390 Other Non- Revenues(extraordinary) 128,000 0 0 TOTAL OTHER TREAS. REVENUE 2,159,316 1,747,247 1,771,020 2,261,846 TOTAL TREASURER'S REVENUE 13,464,866 13,213,121 13,194,280'14,299,356 �4,P Dept #� 010 Assessor 1,787 3,347 267,458 249,057 020 Auditor 245,068 254,786 252,398 268764 021 Elections 171,886 81,748 130,340 120,793 x0001 050 Clerk 205,682 215,128 196,252 216,576 r 060 Commissioners 8,268 13,055 8,050 9,725 -. 067 Safety & Security 52,467 72,466 72,600 68,077 068 Community Services 6,125 1,091 6,400 4,437 Rdj 080 District Court 682,928 258,997 627,349 193,697 617,188 620,092 298312 110 Juvenile Services 150 Prosecuting Attorney 255,166 196,620 304,680 177,207 175,651 Y ; �. 151 Coroner 14,080 6,380 9,280 11,032 180 Sheriff 948,735 649,635 660,138 643265 , .. 240 Superior Court 6,439 3,000 4,000 4000 i 270 Non Departmental 2,892 0 0 TOTAL DEPARTMENTAL REVENUES 2,860,520 2,318,302 2,705,991 . 2,689;781 261 Transferm 0 iOLALLRE?1ENI5t 16,325,386 15,531,423 15,900,271 16,989137 4? Percent change from previous year 7.1% -4.9% 2.4% 9.4% -4.1% 13 of 17 ATTACHMENT 1 - page 2. reroem Unange RUrTI PIUMU5 yeal 4.Y7D G.O74 4.010 V.U70 -1.J io Beginning Cash and Investments 2,324,208 2,988,092 2,502,458 2,503,093 2,684,408 Revenues 16,325,386 15,531,423 15,900,271 16,989,137 16,286,094 Expenditures 15,661,502 16,018,432 16,464,866 17,063,779 16,813,568 Ending Cash & Investments 2,988,092 2,501,083 1,937,863 2,428,451 2,156,934 adjustments 2,010 carryover (est. at 1.5 %) 246,973 255,957 252,204 Adj. Ending Cash & Investments 2,988,092 2,503,093 2,184,836 2,684,408 2,409,137 Required 10% of E )p. to Reserves 1,566,150 1,601,843 1,646,487 1,706,378 1,681,357 Revenue stabilization reserve 100,000 100,000 140,000 440,000 440,000 Reserved for one time expenses 494,000 100,000 Unreserved Fund Balance 827,942 701,250 398,349 538,030 287,781 14 of 17 2011 2012 2013 2013 GENERAL FUND Actual Actual Budget Projected ' Dept EXPENDITURES Expenditure Expenditure Expenditure 6tpendrture ' 010 ASSESSOR 635,429 661,537 1,015,778 1,000000 n 020 AUDITOR 460,829 456,158 474,403 474,403 ` 021 ELECTIONS 258,010 242,031 243,333 :243,333 050 CLERK 369,046 364,710 386,975 386,975 ; 059 COUNTYADMINISTRATOR 298,673 297,020 307,048 315,921 060 COMMISSIONERS 389,560 392,941 409,703 409,703 ,x',429;359' 061 BOARD OF EQUALIZATION 4,125 4,645 7,360 - 7,360 062 CIVIL SERVICE COMMISSION 658 1,731 2.,057 ;2 057 063 PLANNING COMMISSION 23,755 23,268 33,824 33,824 3 067 SAFETY AND SECURITY 142,042 160,644 165,551 165,551 068 COMMUNITY SERVICES 146,350 146,350 146,350 146350,; 080 DISTRICTCOURT 627,234 663,954 703,917 703,917 110 JUVENILE SERVICES 844,451 877,339 895,809 895,809 150 PROSECUTING ATTORNEY 831,386 856,301 898,103 898,103 151 CORONER 32,409 31,017 32,850 32850 180 SHERIFF 5,065,449 5,143,052 5,325,851 5,475758 1 240 SUPERIORCOURT 294,461 299,569 269,608 ..31.0000,- 250 TREASURER 344,515 353,572 :361,078 361,078 "` ' SUBTOTAL DEPARTMENTS: 10,768,382 10,975,839 11,679,598 11,862,992,,. 270 NON - DEPARTMENTAL 2,676,566 2,772,629 12,929,814 3,010933 a 7!147 : 261 OPERATING TRANSFERS 0 0 0.Q" 261 Op Trans- 10- Substance Abuse 46,600 47,500 47,500 47,500 261 Op Trans- 50- Coop. Extension 171,900 171,900 171,900 171900`. 261 Op Trans -70- County Cap. Improve. 325,000 395,891 100,000 400,000 - 261 Op Trans- 99- Parks & Recreation 342,300 385,739 367,300 367,300 '. 261 Op Trans- 160 - Health 595,200 596,200 596,200 596,200 261 Op Trans - 163 - Animal Sew 108,000 108,000 0 0 261 Op Trans- 164-Water Qual.-Cons Dist 45,600 45,600 45,600 261 Op Trans- 165-Water Quality 81,200 51,200 24,200 24,200 261 Op Trans- 200-Community Develop. 411,400 411,400 411,400 411400? 261 Op Trans- 261 -Risk Management 0 35,000 35,000 261 OTHEROPERATINGTRANSFERS 89,354 56,534 56,354. 136,354 TCRTAL:'i.. - 15,661,502 16,018,432 16,464,866 17,063,779 ' reroem Unange RUrTI PIUMU5 yeal 4.Y7D G.O74 4.010 V.U70 -1.J io Beginning Cash and Investments 2,324,208 2,988,092 2,502,458 2,503,093 2,684,408 Revenues 16,325,386 15,531,423 15,900,271 16,989,137 16,286,094 Expenditures 15,661,502 16,018,432 16,464,866 17,063,779 16,813,568 Ending Cash & Investments 2,988,092 2,501,083 1,937,863 2,428,451 2,156,934 adjustments 2,010 carryover (est. at 1.5 %) 246,973 255,957 252,204 Adj. Ending Cash & Investments 2,988,092 2,503,093 2,184,836 2,684,408 2,409,137 Required 10% of E )p. to Reserves 1,566,150 1,601,843 1,646,487 1,706,378 1,681,357 Revenue stabilization reserve 100,000 100,000 140,000 440,000 440,000 Reserved for one time expenses 494,000 100,000 Unreserved Fund Balance 827,942 701,250 398,349 538,030 287,781 14 of 17 ATTACHMENT JEFFERSON COUNTY OTHER FUNDS - Final Budget 2014 December 9, 2013 15 of 17 2013 2013 2014 est 2014 2014 2014 est Revenue Expend Beg. BaL Revenue-- '.Expend End. Sal. OTHERFUNDS BUDGET BUDGET BUDGET BUDGET ,BUDGET BUDGET 105 - AUDITOR'S O &M 67,532 145,706 157,991 76,480 124,689 109,782 106 - COURTHOUSE FACILITATOR 7,200 10,190 12,466 4,200 10,514 6,152 107 - BOATING SAFETY PROGRAM 1 165,500 165,274 10,000 52,500 34,773 27,727 108 - COOPERATIVE EXT. PROGRAMS I 1 300,966 315,792 90,058 261,951 281,650 90,359 1134 -H AFTER SCHOOL 1 10,000 65,371 28,128 47,100 65,100 10,128 114 - ECONOMIC DEVELOPMENT 25,000 4,688 - 4,688 119 - JEFFCOM CAPITAL FUND (new2011) 350,000 350,000 13,741 385,000 385,000 13,741 120 -CRIME VICTIMS SERVICES J7I 75,969 72,530 64,014 72,864 74,615 62,263 123 -JEFF CO GRANT MANAGEMENT FUND i 150,000 150,000 64,898 150,000 150,000 64,898 125- HOTEL -MOTEL 282,000 282,400 453,306 291,500 296,213 448,593 126-H &HS SITE ABATEMENT 5,000 15,350 27,350 - 18,350 9,000 127 - PUBLIC HEALTH 3,641,840 3,939,406 814,180 3,741,323 3,959,982 595,521 128 -WATER QUALITY FUND 720,328 605,999 208,949 711,027 738,092 181,884 129 - ANIMAL SERVICES 5,500 22,789 18,000 - 14,849 3,151 130 - MENTAL HEALTH 46,450 44,250 7,563 47,650 44,250 10,963 131 - CHEMICAL DEPEND /MENTAL HEALTH 352,734 349,262 98,103 397,461 450,564 45,000 135-JEFFERSON COUNTY DRUG FUND 15,400 57,400 61,003 15,400 19,700 56,703 135- SHERIFF DRUG INVESTIGATION 3,000 15,203 3,000 12,203 140 -LAW LIBRARY 10,100 10,000 18,797 6,500 16,000 9,297 141 -TRIAL COURT IMPROVEMENT 25,000 24,218 60,354 25,000 19,410 65,944 142 - PUBLIC DEFENSE FUNDING 35,000 35,000 45,437 35,000 35,000 45,437 143-COMMUNITY DEVELOPMENT 1586,940 1,527,159 416,731 1,780,460 1,666726 532,465 147 - FEDERAL FOREST TITLE III 19,000 19,000 72,689 19,000 56,000 35,689 148-JEFF CO AFFORDABLE HOUSING 196,000 196,000 143,677 226,000 203,400 166,277 150 - TREASURER'S O &M 25,150 36,263 - 46,014 46,014 - 151 -REET TECHNOLOGY FUND 1 1 28,250 2,000 2,000 - 155- VETERANS RELIEF 56,800 59,950 25,360 58,000 59,950 23,410 160 -WATER POLLUTION CNTRL LOAN FUND 1 5,540 11,994 89,1781 5,540 11,995 82,723 174 -PARKS AND RECREATION 724,619 726,944 143,098 ! 674,368 691,862 125,604 175 -COUNTY PARKS IMPROVEMENT FUND 52,400 84,547 32789 46,000 47,790 30,999 177 - SPECIAL PROJECTS FUND 11,758 79,434 79,516 - - 79,516 178 -POST HARVEST TIMBER MG MT RESV - 3,939 9,763 - 3,962 5,801 180 -COUNTY ROADS 12,350,976 13,435,532 3,842,713 11,347,111 12,336,732 2,853,092 181- EMERGENCY ROAD RESERVE 100 - 77,385 150 - 77,535 183 - FACILITIES MANAGEMENT 1,009,392 1,078,564 298,606 1,007,204 1,102,907 202,703 185-FLOOD /STORM WATER MANAGEMENT 4,715 10,635 4,464 6,171 186 - BRINNON FLOOD CONTROL SUB -ZONE 3,714 10,458 3,464 6,994 187- QUILCENE FLOOD CONTROL SUB -ZONE 21,439 145,558 11,462 134,096 301- CONSTRUC71ON & RENOVATION 453,964 769,000 495,000 400,000 605,000 290,000 302 -COUNTY CAPITAL IMPROVEMENT 540,000 729,918 924,944 635,000 1,032,678 527,266 304 -H.J. CARROLL PARK 10,553 9,120 9,120 - 306- PUBLIC INFRASTRUCTURE 321,400 1,030,000 772,996 341,400 750,000 364,396 308 - CONSERVATION FUTURES TAX 223,420 54,403 689,863 228,400 901,763 16,500 401.SOUD WASTE 2,240,607 2,522,336 670,337 2,695,255 2,710,012 655,580 402-SOLID WASTE POST CLOSURE 100 6000 77,979 100 6,000 72,079 403-SOLID WASTE EQUIPMENT RESERVE 800 203,163 540,255 800 - 541,055 404 -YARD WASTE EDUCATION FUND 5,066 6,000 6,367 5,436 6,000 5,803 405 -TRI -AREA SEWER FUND 2,711,8001 3,023,119 896,2531 162,000 480,657 577,596 501 - EQUIPMENT RENTAL & REVOLVING j 1,740,000 2,431,452 3,072,201 1,744,000 2,777,826 2,038,375 502 -RISK MANAGEMENT RESERVE i 135,000 100,000 220,6861 150,000 150,000 220,688 503 -JC UNEMPLOYMENT RESERVE 1 124,000 213,000 420,000 500 420,500 - 504- INDUSTRIAL INSURANCE RESERVE - 28,000 15,000 - 15,000 - 505- EMPLOYEE BENEFIT RESERVE i 123,500 162,625 242,000 633,500 299,325 576,175 506 - INFORMATION SERVICES 1,611,125 1,585,023 963,284 1,588,353 1,796,231 755,406 TOTAL OTHER FUNDS BUDGETS 32,536 176 37,080,973 17,692,472 30,135,547 34,950,591 12,877,428 001 - GENERAL FUND 15,900,271 16464,866 2,684,408 16,286,094 16,813,568 2,156,934 TOTAL ALL FUNDS 48,436,447 53,545,839 20,376,680 46,421,641 51,764,159 15,034,362 15 of 17 gg9p :� IF R 8 P o m" 9ffi� s9s of e as 'ga 'da ,a .a va���� L.dd 'dr d' an'b,N^N>_ gYRffi6fd 'o �, q, ^v 6Rfd8S W, "r�8 ��ffi4 8 8.$ 'd Sd f3 n: S€rBSSS F1 g LF!'rS v`3 R' pRu rri uin No ry wrg� rie�0 d dM � � S+u d'ry o m c d a:wooc d ° aim uro a �p 2Y ^FSoFd'm�tl8 he$$£dM "BASR3 ��k, 8 mL° coo' .$.£'BO'0 d 8 0ffi00:��YG RQiiCNNNN6C NahONNYP000M r � �N 'BOO n000$NO00 6O o+Nmtl$g R��sBp S9�8h�8�SiYceBn 6 88 �,�3 0$ = =8 rS °d = $S = ^.qaffi �Rwan�Nmo8 NBq��N�lz0008 $ 88 �$8 oYo ffin bo °�odu °o °d oo flo'�o m��n�� mpgn °CS 6 6 1- O �' p N N'-n� °S'8 hry 8n $ffif CX �Ry S 8 8 $ N�N 88 N° O PP O O O p M p QQQ W^� °'e$�1y8, 8RgL� "wBR&ym0J 8R �S8 „%cm F�8 .5 ffi B C1 F4U5%i R oiron ro Nvica n ron � rrva ten,' addN � � ffi � �ry o' ° Nb.� � o� rob ° c d c m,; bh ffiC Ly °'8r$8$SS9 or: J {�,Qia ro ri ni riNd ry crNariawdddM ^ _ rN,ra rJ a o Inab IDbd a d o m -ro r:FF G R d Rrli�b8 d 'N4 a n 80.6 W N �4l4 $a..0 $ n$rr �ooa^ 2 V N N o o n 'atl M1 h oh^ n ° 000 IB d N b� r F1 'S,Mp taS R '8.8 LL y $�Qd 'N ro N'n do Ncwo 9,rvePd dN � r� ANN " Mro rc° " &nod °oo a�un n� 7 a pG O tl N h ei N O O N m tl tl N Y Y 0 Y N t2 $ m rJ 1n O n 0 0 tl 0 0 0 O O tl b h rp p ,�yy << NN Ip y I� p efp`� .p y y q IIlli� ym h �x g O n N m M Ill O O N N n O 0] N Y lv O O p N O M r7 M O O O P n 0 O O OO b �- m m F Qi VI VQQQQQQ ^�$`8 �'8 M1r`8 (u"IR 38BSI°7. �io8 RR� ffi 8g 1:9 $. ffi%, 81:8 ho.8896 #'$:. d.6rvnNVidd rvwci��N6' aoa o� �+Nry d Flo nod Nmddo cdd tl':nn$R W ffi LL 8 ° ^s$8 = "N 888 ^ol:,r3i., SF "a 8 n'Ri Ci88 `=6 S'G "i$F 'b E�= 88S8F LL W na.b Nwdd Nctl.- r�pHcan on -ry " kd nb " fwd d did ndwNnlp i IIpp II//�� pp ryry mp� �p M O d h R N N Y p v q R N Y, , FI p :2 O 6 m 8 O q ry �FFy N M IlNI!�� y� ° yN m �IppV rNpp O O uN� tmpp m ^ yd Y N ' d tOp CY ^� O �Nryry 0 O pm uO,� O N VI tq0 OO a s O O m m �1 ry0 O n P O Y N V R� Y O� ° � h A N C 0 N R IO Ir P $� 6} [BV � N N E W N N O b$� h !1 m n� NN• R�nn'o Nino° rvmm�nP -Y� "ode% " ado bonaod N o nb�rt nMB °P'ffi "n ate° amSmmrvlF r'n rvti, `a a'� Ig'8$, °Mn.ffia i$$.8 �i $ F F'sPp rP.onrin tiu+de �ncd� -ero a �, � �: ni of Rddnd.- r�uo6o r•i G d rd ro rF l� •I ^ f�°a 3S83n�F °88'8 `Jt l%ffi3p nN °S1 °8Ri °3�i� °8 �fJ85Wa S�r�, 8'& °'� 8. ° °R ::$wSi Z R flo}@ y LL Him, oil rl O CD I O N H W (7 D m } f Z 0 U Z 0 N w w LL LL w a F Z W x Q O N O N Q u� J N H w LL Q y U J (0 7 a N 0 CL IL IL J a w a N O N m 0 r O r a G O O O O (O O rll� w 7 O O W f� r o M M r (D O N N N NI 7 O N O 07 ( (O N M M C") M M O O m N {WD tWD W M N M 04 N a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o my o 000mm� o ou�oo 00 0 (n o o ao O •' M O N V r M fo m M c') O (O GD ut O O N (o m r6 c6 V m h? 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O m W O y 3 a a > > J O w •_w w Z N� E (ap E E E� C C y C 0 U ®. w m 0 X L 2> y N 22`2 O= 0 0 o U N N N O N D_w Un (7 W Un a- UODUU �: U 2 —L r O r JEFFERSON COUNTY BOARD OF COUNTYCOMMISSIONERS REGULAR AGENDA REQUEST TO: Board of Commiss' e FROM: Philip Morler�` DATE: December 9,20U'' RE: Deliberation and Potential Action on 2014 Jefferson County Budget STATEMENT OF ISSUE: Board of County Commissioners deliberation and approval is requested for the proposed Resolution adopting a Final 2014 Jefferson County Budget. On December 2, 2013, the Board held a Public Hearing and began deliberations on the 2014 Jefferson County Budget. A Final Budget includes minor technical corrections and is ready for final adoption. ANALYSIS: A Budget Message for the Final 2014 Jefferson County Budget is enclosed, and it will be posted with the Budget, after the 2014 Jefferson County Budget is adopted. Enclosed for Board action to implement the 2014 Jefferson County Budget are five resolutions: 1. A Resolution to adopt the 2014 Jefferson County Budget, including a Final 2014 General Fund Summary, Final 2014 Other Funds Summary and 2014 Staffing Schedule. These are included for final deliberation and action. Also included in this memo for the Board's information is a "Summary of Changes to November 20, 2013 Recommended Budget" which outlines minor changes contained in the Final Budget. 2. A Resolution to adopt 2014 salaries for certain Elected Officials. 3. A Resolution to adopt the 2014 salary for the elected Prosecuting Attorney 4. A Resolution to adopt a 2014 wage matrix for non -union employees; and A Resolution Updating the Working Capital Reserve Recommendations for Each County Fund. A memo describing the proposed updates to the recommended reserves is enclosed with the Resolution. FISCAL IMPACT: As proposed, the Final 2014 Budget is a balanced budget using 2014 revenues and fund balance. Wages and salary adjustments are consistent with adopted collective bargaining agreements and also with Resolution No. 36 -13 establishing objectives and procedures for the 2014 County Budget, including a 1.25% wage adjustment for 2014 for non -union and elected officials, equal to that of county employees in the adopted UFC W collective bargaining agreement. RECOMMENDATION: Approve the proposed Resolution adopting a final 2014 Jefferson County Budget. REV IEi3 FyD $Y_ ounty A i - --------- Date SUMMARY OF CHANGES TO 11 -20 -13 Recommended 2014 Budget 2014 Final Budget at a Glance: Recommended Budget Revision 2014 Final Budget - General Fund Other Funds Recommended Budget Revision 2014 Final Budget Changes by Fund: Fund 2014 I 2014 ve Renue Expendit 15, 858, 271 16, 429, 866 15,858,271 16,429,866 30,133,047 34,950,591 2,500 30,135,547 34,950,591 2014 I 2014 Revenue Expendit Increase Transfer In from Sheriff 2,500 Increase transfer from 7,500 to 10,000 TOTAL adjustment to Boating Fund 2,500 ** Also corrected beginning and ending balances in Boating Fund 177- Special Projects Fund ** Corrected beginning and ending balances in Special Projects Fund Philip Morley fferson Street TO: Board of County Commissioners FROM: Philip Morley, County Administrator, - DATE: December 9, 2013 SUBJECT: Resolution Updating the Working �ipltal Reserves The recommended working capital reserves have been reviewed during the 2014 budget process and the following changes from previous Resolution 63 -11 in the accompanying proposed Resolution: "Percent shown is percent of expenditures unless otherwise noted. Phone (360) 385 -9100 Fax (360) 385 -9382 pmorleyCq)�co.jefferson.wa.us Resolution 63 -11 New Resolution Percent* Minimum ercent^ Minimum Fund Reason for Change 107 - BOATING SAFETY FUND 10% 10% 10000 Received $20,000 of fund balance from fund 177. Of that, $10,000 is recommended minimum reserve 114 - ECONOMIC 10% N/A Fund wil l be closed out i n 2014, the economic DEVELOPMENT development costs for 2014 are included in the General Fund budget. 123 -GRANT MANAGEMENT 10% 73,000 10% - ..34,000 Expenditure of 38K due to prior year reimbursement FUND to Clallam County of grant funds. $34,000is sufficientfor cash flow. 127 - PUBLIC HEALTH 10% 253,981 N/A 253,981 Change recommended reserve to be minimum of 253,981, eliminating 10% (note: in addition to this minimum, Health also has a $90K emergency reserve.) 129 -ANI MAL SERVICES 10% 24,000 N /A <. - This fund will be discontinued and costs will be paid directly out of the General Fund beginning 2015. 147 - FEDERAL FOREST TITLE III 10% N/A This fund should not have amt nimum fund balance. These funds get tranferred to Title 111 programs in other funds. 177 - SPECIAL PROJECTS FUND 10% 45,000 10% 25,000 Reduce by $20,000 bringing minimum total to $25,000, which is sufficient for cash flow. 308- CONSERVATION FUTURES 10% 10% Clarifythatthis is 10 %of expendures, excluding ca pita 1. 502 -RISK MANAGEMENT N/A 150,000 N/A 216,000 Raise minimum to $21G,000 based on Risk Pool recommendation for current County insurance deductible amountof 25K 503 -JC UNEMPLOYMENT 10% This fund will be closed in 2014. All revenues and RESERVE (moving to fund 505) expenditures in this fund will now be in fund 505. 504 - INDUSTRIAL INSURANCE 10% > This fund will be closed in 2014. All revenues and RESERVE (moving to fund 505) expenditures in this fund will now be in fund 505. 505 - EMPLOYEE BENEFIT 10% N/A 125,000.. Define minimum reserve for this fund thatwill now RESERVE payfor employer paid benefits such as unemployment costs, post - retirement costs, L& l administration and other costs as determined by the BOCC. "Percent shown is percent of expenditures unless otherwise noted. Phone (360) 385 -9100 Fax (360) 385 -9382 pmorleyCq)�co.jefferson.wa.us FISCAL IMPACT: Increases minimum recommended reserves by $118,000 for all funds. This resolution also replaces the term "required reserve" from resolution 63 -11 to "recommended reserve" as to allow reserves to be used for cash flow during the budget year. These recommended reserve amounts are targeted amounts that each fund is recommended to maintain at fiscal year -end each year. Page 2 of 2