HomeMy WebLinkAbout072417_ca01JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of County Commissioners
FROM: Mark McCauley, Central Servi Director
DATE: July 24, 2017
RE: Resolution Establishing Budget Objectives 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 2018 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 2018 document:
• Unreserved General Fund balance — anticipates using a small amount of the projected year-end 2017 GF
fund balance in 2018, and in the event of unforeseen circumstances, allows using up to half of the estimated
12-31-17 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 Facility needs — Allows transfers from the General Fund to the Capital Improvement fund as
available.
• 2018 Base Budgets within the General Fund
o The Base budgets for departments and branches within the General Fund in 2018 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 1.5% general wage
adjustment (sometimes referred to as COLA) for non-union positions and step increases, which
may be adjusted based on the results of our collective bargaining negotiations. 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 2017 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 19 meeting of the county's Budget Committee.
FISCAL IMPACT: The Resolution supports adopting a balanced 2018 Jefferson County Budget.
RECOMMENDATION: Adopt the proposed Resolution establishing 2018 Budget Objectives and Procedures.
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WBY•orley, Co ty Administrator Date
STATE OF WASHINGTON
County of Jefferson
In the Matter of Establishing }
Objectives and Procedures for the } RESOLUTION NO. --17
2018 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 February 21, 2017 the Board of County Commissioners adopted Resolution
No 09-17 establishing dates for the 2018 Budget;
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NOW, THEREFORE BEITRESOLVED, that the Board of Commissioners of Jefferson County
does hereby establish the following objectives and procedures to guide the development and
adoption of the 2018 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 continues to use a strategy of apportioning
and gradually drawing down the General Fund's unreserved fund balance over the course of
its five-year budget projection, while simultaneously aligning future expenditures to match
future revenues. The current General Fund projection shows the unreserved fund balance
declining over the five-year projection period. In 2018 and in each of the additional four years
of the five-year budget projection, no more than one-half of the previous year's projected
ending General Fund unreserved fund balance should be budgeted for expenditure.
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, or as
otherwise approved by the eligible voters of Jefferson County as a ballot measure.
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 (PILT), etc. - or are non-recurring. If those revenues are received above the
adopted 2017 and 2018 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. Certain non-recurring revenues that are intended to pay for or
reimburse the County for services it provides (e.g. state extraordinary justice appropriation)
may also be retained in the General Fund for those purposes.
7. Road Fund — In the event Federal PILT the County receives exceeds the amount budgeted for
2018, as funding allows, the BoCC intends to transfer a portion of excess PILT to the Road
Fund to make up for as much as possible of any amount below $466,000 that Secure Rural
Schools or Federal Timber contribute to the Road Fund. In 2018, $720,000 of the Road Fund
levy will be diverted to the General Fund to be used only for road traffic safety enforcement
consistent with state law.
8. Budget priorities—The County's priorities continue to include:
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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.
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.
9. 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.
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c. Non-union wages and salaries for 2018 shall include annual step increases, and a
preliminary 1.5% general wage adjustment which will be modified as necessary by a
Resolution of the Board of County Commissioners to maintain an adjustment as close as
possible to the comparative mean over the collective bargaining period, and such
adjustment may be made retroactive.
d. Any FTE increase in a General Fund Department proposed above the FTEs included in the
2018 salary schedules must be budget neutral. FTE increases that are not budget neutral
will require substantial justification in order to be considered. Any FTE increase in other
Funds proposed above the FTEs included in the 2018 salary schedule must be supported
by a financial analysis showing that the FTE increase can be afforded in 2018, and if
ongoing, that it is sustainable within the Fund in future years. Departments should refer
to Resolution 01-14 which documents the guidelines for budgeting for replacement
positions and new positions.
e. Target base budget numbers and FTEs will be given to all General Fund departments for
the preliminary budget on or about August 2, 2017. The target number will be the 2018
Base Budget. The target number will be developed using:
• 2018 Salary schedules prepared by Auditor's office (clerk hire line items will be
calculated at the 2017 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 2018.
• Other costs will be limited to a 3% increase to the 2017 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 2017 base budget level.
• One-time expenses allocated to departments in 2017 will not be included in the 2018
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 2017 base budget levels. One-time transfers allocated in 2017 will not be included
in the 2018 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.
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II. BUDGET PREPARATION
1. Overview. 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. Format and Schedule. Departments shall prepare budgets following the standard format and
schedule provided to them in the 'Call for Budgets' from the County Auditor, including, when
applicable, Form A: General Fund Add Request (see # 4. below).
3. Budget Narratives. 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.
c. Departmental and program revenues and expenditure summaries and impacts
anticipated by increased or decreased funding.
4. Additions to General Fund Base Budgets. A new form will be used for the 2018 budget, titled
"Form A: General Fund Add Request." Departments in the General Fund requesting a one
time or ongoing increase to their base budget, and Departments requesting more than a 3%
increase to a General Fund transfer, will use Form A to request the increase.
5. Preliminary Budget process:
• Preliminary department budgets shall be transmitted to the County Auditor on or before
September 5, 2017. 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 the 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 may be asked to propose revisions to their
preliminary departmental budgets.
• The County Administrator shall prepare a Recommended 2018 Budget for review, a public
hearing, and action by the Board of County Commissioners.
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APPROVED this day of July, 2017:
JEFFERSON COUNTY
SEAL: BOARD OF COMMISSIONERS
ATTEST
Carolyn Avery
Deputy Clerk of the Board
Kathleen Kler, Chair
Kate Dean, Member
David Sullivan, Member
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