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STATE OF WASHINGTON
County of Jefferson
In the Matter of Establishing }
Objectives and Procedures for the } RESOLUTION NO. 32 -16
2017 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, 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 annual budget process provides opportunities to focus resources
in support of the priorities and 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 May 23, 2016 the Board of County Commissioners adopted
Resolution No 20-16 establishing dates for the 2017 Budget;
NOW, THEREFORE BE IT 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 2017 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 2016 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 two to three years. However, should use of unreserved
fund balance be needed, the 2017 budget shall utilize no more than one-half of the
12/31/16 projected General Fund unreserved fund balance.
4. Property Taxes -Growth in property taxes for the General Fund and Road Fund shall
not exceed the 1 % limit, plus taxes collected on new construction; and growth in the
property tax for the Conservation Futures Fund shall not exceed 1% plus the use of
available banked capacity, 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
2016 and 2017 budgets, the excess will be dedicated to backfill shortfalls in other GF
revenues first, and any remaining excess revenue will be dedicated for any of the
following purposes: the county Capital Improvement Program such as the
Construction and Renovation Fund, other one-time costs, and a revenue stabilization
reserve to backfill future revenue shortfalls from volatility.
7. Budget priorities — The County's priorities continue to include:
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;
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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 consistent 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 2017 shall include a 1.5% general wage
adjustment and annual step increases pursuant to the step wage matrix.
d. Any FTE increase proposed above the FTEs included in the 2017 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 2017
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 2, 2016. The target number will be the 2017
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Base Budget. The target number will be developed using:
• 2017 Salary schedules prepared by Auditor's office (clerk hire line items will
be calculated at the 2016 budget level, Sheriff's overtime budget will increase
at the rate of the wage adjustment included in ratified labor agreements)
• Facility, Information Services and ER&R cost allocations for 2017
• Other costs will be limited to a 3% increase to the 2016 levels (except certain
externally -given costs in non -departmental).
• Transfers from the General Fund to other operating funds will be targeted at a
3% increase to the 2016 base budget level.
• One-time expenses allocated to departments in 2016 will not be included in
the 2017 base budget.
f. 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 3%
increase to the 2016 base budget levels. One-time transfers allocated in 2016
will not be included in the 2017 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:
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.
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4. Preliminary Budget process:
• Preliminary department budgets shall be transmitted to the County Auditor on or
before September 6, 2016. 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 budget targets and strategies as needed.
• If reduction or enhancement targets are established for functional groups of
departments (i.e.: Law & Justice, Administrative Services, and Community
Services), the County Administrator may ask departments to meet with other
departments within their functional group to recommend how such cuts or adds
should be distributed to one or more departments in the group .
• 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 2017 Budget for review, a public
hearing and action by the Board of County Commissioners.
-Y�
APPROVED this'day of July, 2016:
SEAL:;=
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ATTEST
Carolyn very
Deputy Clerk of the Board
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
Kathleen Kler, Chair
�Xeused �b� ce-
PZiJohnon, Member
Davi Sul ivan, Member
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JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of County Commissioners
FROM: Phlip Morley, County Administrator- w
DATE: July 25, 2016
RE: Resolution Establishing Budget ectives and Procedures for the 2017 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 2017 budget.
ANALYSIS: The proposed resolution provides guidelines for preparing the 2017 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 2017 document:
0 Unreserved General Fund balance - anticipates using none of the projected year-end 2016 GF fund balance
in 2017, but in the event of unforeseen circumstances, allows using up to half of the estimated 12-31-16
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, revenue stabilization fund and
other one-time costs.
• Capital Facili • needs - Allows transfers from the General Fund to the Capital Improvement fund as
available.
• 2017 Base Budgets within the General Fund
o The Base budgets for departments and branches within the General Fund in 2017 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 1.50% general wage
adjustment (sometimes referred to as COLA) for non-union positions and step increases. Base
budgets will include cost allocations for IS, Fleet Services and Facilities, and a 3% increase in
non -labor costs
o 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 3%
increase to the 2016 base budget.
• Other Funds - budgets for other funds will include the 3% increase in transfers from the General Fund,
reflect adopted collective bargaining agreements, and shall be presented as balanced budgets.
The proposed Resolution was also discussed at the July 20 meeting of the county's Budget Committee.
FISCAL IMPACT: The Resolution supports adopting a balanced 2017 Jefferson County Budget.
RECOMMENDATION: Adopt the proposed Resolution establishing 2017 Budget Objectives and Procedures.
W B
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p Morle ty A ministrator Date