HomeMy WebLinkAbout072114_ca01JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of County Commissioners
FROM: Frank Gifford, Central Services Director
DATE: July 21, 2014
RE: Resolution Establishing Budget Objectives and Procedures for the 2015 County
Budget
STATEMENT OF ISSUE: The Board of County Commissioners adopts a resolution each year to
establish Budget Objectives and Procedures to guide work by the branches and departments of the County
to prepare a balanced Jefferson County Budget for the coming year. The enclosed resolution would
establish Budget Objectives and Procedures for the 2015 budget.
ANALYSIS: The proposed resolution provides guidelines for preparing the 2015 budget. It addresses
the County's current financial realities and as well as supporting a continued focus on long term financial
analysis as way of balancing the budget for current and future years.
Highlights of the objectives in the 2015 document:
• Unreserved General Fund balance — anticipates using none of the budgeted yearend 2014 GF fund
balance in 2015, but in the event of unforeseen circumstances, allows using up to half of the
estimated 12 -31 -14 unreserved fund balance to balance the General Fund budget.
• Extraordinary General Fund Revenues — continue to use certain General Fund revenues that can
sometimes exceed budgeted amounts for one -time costs such as Capital Improvement, Debt
Service, revenue stabilization fund and other one -time costs.
• Capital Facility needs — Allows transfers from the General Fund to the capital Improvement fund
as available and if needed to supplement REET Revenues.
• 2015 Base Budgets
• The Base budgets for 2015 will include all adopted collective bargaining agreement wage
adjustments and step increases. Where there is no ratified agreement, the budget will
reflect step increases only. Include a 1.25% general wage adjustment (sometimes
referred to as COLA) for non -union positions and step increases.
• General Fund Transfers to other funds and other general fund costs (not including salaries
and benefits, internal cost allocations and certain non - departmental costs) will be limited
to a 2% increase to the 2014 base budget.
Commissioners previously reviewed the proposed Resolution during their afternoon session on July 14.
The proposed Resolution was also reviewed and discussed at the July 16 meeting of the county's Budget
Committee.
FISCAL IMPACT: The Resolution supports adopting a balanced 2015 Jefferson County Budget.
RECOMMENDATION: Adopt the proposed Resolution establishing 2015 Budget Objectives and
Procedures.
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1 ip Morle} _ my Administrator Date
STATE OF WASHINGTON
County of Jefferson
In the Matter of Establishing }
Objectives and Procedures for the } RESOLUTION NO. _ -14
2015 County Budget }
WHEREAS, Jefferson County's growing population continues to put pressure on
the provision of public services and infrastructure; and
WHEREAS, critical county services such as public safety, public health, parks
and recreation, and capital infrastructure are foundations for a sustainable economy and
a healthy community; and
WHEREAS, legislation passed through initiative and by the State Legislature in
the past has reduced or eliminated county revenue sources previously relied upon to
maintain pace with cost inflation and to pay for services and infrastructure; and
WHEREAS, a major national economic recession has further limited county
revenues, while simultaneously increasing the demand for some county services; and
WHEREAS, reductions in certain revenues from the State and Federal
governments also adversely affect the delivery of county services; and
WHEREAS, inflation in the cost to maintain county services and infrastructure
continues; and
WHEREAS, adequate cash reserves need to be maintained for each operating
fund to provide for emergencies and for cash flow; and
WHEREAS, the Board of County Commissioners has adopted and periodically
updates a Jefferson County Strategic Plan as a blueprint for marshaling the county's
resources to meet challenges and enhance the quality of life of our citizens in the future;
and
WHEREAS, the annual budget process provides opportunities to focus resources
in support of the Strategic Plan and the issues facing Jefferson County; and
WHEREAS, in order to maximize the use of limited resources, programs and
services must be strategic, effective, creative, innovative and efficient in their delivery
while targeting community priorities; and
WHEREAS, it is recognized that the employees of Jefferson County possess
great skills, knowledge and dedication, which make them the county's most valuable
asset in providing services to the public; and
WHEREAS, it is recognized that citizens of Jefferson County expect both
accountability from their public servants and affordability from their government; and
WHEREAS, Jefferson County together with other local government agencies
recognize that collaborative efforts to provide services benefits all citizens of the county;
and
WHEREAS, to grow its economy the County needs to protect and capitalize on
its competitive advantages: our people, our environment, and our history; and
WHEREAS, on June 2, 2014 the Board of County Commissioners adopted
Resolution No 22 -14 establishing dates for the 2015 Budget;
NOW, THEREFORE BE /T RESOLVED, that the Board of Commissioners of
Jefferson County does hereby establish the following objectives and procedures to
guide the development and adoption of the 2015 Jefferson County Budget:
I. FISCAL BUDGET OBJECTIVES
1. Strategic Plan — Continue to follow the most recently adopted Jefferson County
Strategic Plan as a guide for developing the budget and work programs of the
County.
2. Balanced budget - The budget, when adopted, will be balanced within available
resources. In addition to annual fiscal objectives, there should also be a focus on
long -term financial analysis. The County will continue to use multi -year budget
forecasting for analyzing impacts the current budget will have on future revenues
and expenditures.
3. Use of unreserved Fund Balance - The County has used a strategy from years
2009 through 2014 of apportioning and drawing down the General Fund unreserved
fund balance. The current General Fund projections show the unreserved fund
balance remaining stable over the next three years. However, should use of
unreserved fund balance be needed, the 2015 budget shall utilize no more than one -
half of the 12/31/14 projected General Fund unreserved fund balance.
4. Property Taxes - Growth in property taxes for the General Fund, Road Fund and
Conservation Futures Fund shall not exceed the 1 % limit, plus taxes collected on
new construction.
5. Sales Taxes —The county shall budget and administer General Fund sales tax
revenues consistent with Jefferson County Resolution No. 38 -10 (Use of Excess
Sales Tax) and Resolution No. 32 -10 (Special Purpose Tax levy resolution).
6. Extraordinary General Fund Revenues — Some General Fund revenues vary
significantly year to year (e.g. private timber harvest, DNR Forest Board Trust
revenue, Federal Payment in Lieu of Taxes, etc.) or are non - recurring (e.g. state
extraordinary justice appropriation). If those revenues are received above the
adopted 2014 and 2015 budgets, the excess will be dedicated for the following
purposes: backfill for shortfalls in other GF revenues if any, debt service not covered
by Real Estate Excise Tax, the county Capital Improvement Program including the
Construction and Renovation Fund, other one -time costs, and a revenue
stabilization reserve to backfill future revenue shortfalls from volatility.
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7. Budget priorities — The County's priorities continue to be:
a. Support mandated services while balancing levels of service with other priority
services;
b. Support local law and justice programs, including evidence -based prevention,
intervention & recovery programs;
c. Address locally identified and defined local public health issues;
d. Protect and enhance natural resources;
e. Invest in community infrastructure that encourages economic opportunity;
f. Find means to support other critical services for a healthy community;
g. Use capital funds and other funds as necessary to meet the county's debt service
obligations;
h. Plan for long term capital facility needs and incorporate transfers from the
general fund to the capital improvement fund into the budget as available and as
needed to supplement REET.
i. Operate within a business plan based on fiscal sustainability, measured
performance, and the best customer service within our means;
j. Maintain a professional county workforce that can meet the service delivery
needs of the county, including training budgets for required training and for
departmental training plans to maintain a qualified workforce; and
k. Look for cost savings opportunities - Continue to evaluate and implement where
appropriate opportunities to:
i. Continue to seek opportunities to save costs of boards and
commissions, e.g. consolidating work programs and reducing the
frequency of meetings.
ii. Consolidate programs or services to gain efficiencies or improve
customer service, where appropriate.
iii. Seek additional funding sources to support services through
contract, grants, fees and other funding sources.
iv. Continue to partner with other local agencies to improve service
delivery and /or reduce costs.
v. Privatize and /or outsource services, programs, and functions where
appropriate.
8. Departmental Preparation of Preliminary Budgets - Departments should prepare
preliminary budgets with the following guidelines:
a. Prepare departmental preliminary budgets following steps listed in Section II.
Budget Preparation of this document.
b. For the Preliminary Budget, union staff personnel costs (salaries, wages, &
benefits) will be adjusted based on the rates of ratified labor agreements;
including annual step increases. Where there is no ratified union agreement, the
budget will reflect step increases only.
c. Non -union wages and salaries for 2015 shall include a 1.25% general wage
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adjustment and annual step increases pursuant to the step wage matrix.
d. Any FTE increase proposed above the FTEs included in the 2015 salary
schedules must be accompanied by corresponding new revenues and/or cost
reductions, or will require a substantial justification and a funding source within
the 2015 proposed budget. Departments should refer to Resolution 01 -14 which
documents the guidelines for budgeting for replacement positions and new
positions.
e. Target base budget numbers will be given to all General Fund departments for
the preliminary budget on August 4, 2014. The target number will be the 2015
Base Budget. The target number will be developed using:
2015 Salary schedules (overtime and clerk hire line items will be calculated
at the 2014 budget level)
Facility, Information Services and ER &R cost allocations for 2015
• Other costs will be limited to a 2% increase to the 2014 levels (except certain
externally -given costs in non - departmental).
• Transfers from the General Fund to other operating funds will be targeted at a
2% increase to the 2014 base budget level.
• One -time expenses allocated to departments in 2014 will not be included in
the 2015 base budget.
f. General Fund departments are encouraged to collaborate to achieve budget
targets.
g. Budgets for other funds shall be prepared as balanced budgets.
• All increases, including any wage and benefit increases, will be absorbed
within available resources or offsetting cost reductions within that fund.
• Transfers from the General Fund to other operating funds will have a 2%
increase to the 2014 base budget levels One -time transfers allocated in 2014
will not be included in the 2015 base budget.
h. Recommended reserves shall be maintained for each Fund as established by
resolution. Where fund reserves are below targets, departments shall submit a
plan and schedule to restore reserves as soon as practicable.
i. Fees - Set fees at levels that recapture the cost of the service being provided,
where possible.
II. BUDGET PREPARATION
1. Budget requests shall be prepared in a consistent, citizen friendly format that clearly
identifies the resources needed and the services to be provided by each program.
2. Departments shall prepare budgets following the standard format and schedule
provided to them in the `Call for Budgets' from the County Auditor.
3. Each department and each major division or program within each department shall
prepare a narrative, which shall include:
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a. The department's mission statement in a clear concise statement explaining the
purpose of the division or program.
b. The department's staffing requirements for the coming year clearly indicating
which staff positions, or portions thereof, are grant supported.
c. Departmental and program revenues and expenditure summaries and impacts
anticipated by increased or decreased funding.
4. Preliminary Budget process:
• Preliminary department budgets shall be transmitted to the County Auditor on or
before September 2, 2014. Once the preliminary department budgets are
transmitted by the Auditor to the County Administrator and Board of County
Commissioners, proposed revenues and expenditures for each Fund or
Department shall be reviewed for their impacts on the county's financial health
for the next five years.
• As necessary to balance the budget, the County Administrator will consult with
independent elected officials and department directors and shall establish
additional countywide budget targets and strategies as needed.
• The County Administrator will meet with each department to review departmental
budgets. As necessary, Departments will be asked to propose revisions to their
preliminary departmental budgets.
• The County Administrator shall prepare a Draft 2015 Budget for review, a public
hearing and action by the Board of County Commissioners.
APPROVED this day of July, 2014:
JEFFERSON COUNTY
SEAL: BOARD OF COMMISSIONERS
ATTEST: John Austin, Chairman
Phil Johnson, Member
Erin Lundgren David Sullivan, Member
Clerk of the Board
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