HomeMy WebLinkAbout120318_ra01 JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, County Administrator
Mark McCauley, Central Services Director
DATE: December 3, 2018
SUBJECT: Public Hearing on Recommended 2019 Jefferson County Budget
STATEMENT OF ISSUE:
The County Commissioners will hold a Public Hearing on the Recommended 2019 Jefferson County Budget
at 10:00 AM Monday, December 3, 2018 in the Commissioners Chambers. After receiving and considering
public testimony, the Commissioners may direct staff to prepare a Final 2019 Budget for potential adoption
on December 10, 2018 or a subsequent meeting.
ANALYSIS:
The Recommended 2019 Budget was transmitted to the County Commissioners on November 19. The
Recommended Budget can be viewed online at www.co.jefferson.wa.us.
The County Administrator's Budget Message on the Recommended Budget is attached to this Agenda
Request. The Budget Messages summarizes major elements of the budget, and provides residents and the
Commissioners information that may be useful for their review. In addition, at the public hearing, Central
Services Director Mark McCauley and I will give a Power Point presentation on the Recommended Budget
to further support the public as they prepare to provide testimony.
FISCAL IMPACT:
See attached Budget Message on the Recommended Budget.
RECOMMENDATION:
Hold a Public Hearing to take public testimony on the Recommended 2019 Jefferson County Budget,
deliberate on the record and provide direction to staff to prepare a Final 2019 Budget for potential adoption
on December 10, 2018 or a subsequent date.
REVIEW D BY:
, / /4 /
Philip Morley, runty Administrato . ate
JCA
EFFERSON OUNTY DMINISTRATOR
1820 Jefferson Street P.O. Box 1220 Port Townsend, WA 98368
www.co.jefferson.wa.us
TO: County Commissioners
FROM: Philip Morley, County Administrator
DATE: December 3, 2018
SUBJECT: Message for the Recommended 2019 Jefferson County Budget
I am pleased to transmit to the Board of County Commissioners a Recommended 2019 Jefferson
County Budget. At just over $56 Million across 51 separate funds, it is a balanced budget that
preserves the status quo of current programs and services, with a number of important strategic
enhancements described below. This memorandum offers highlights about the 2019 Jefferson
County Budget and, as we do with each budget, identifies a number of the County’s strategic
enhancements, budgetary opportunities and challenges in the years ahead.
Strategic Enhancements:
Leveraging technology: In 2019 the County is undertaking significant technology
investments to improve operating efficiency and delivery of service to the public. We will
begin migration to modern financial software systems, which will help in all County
departments, especially our Auditor and Treasurer Offices. We will replace an antiquated
phone system with a digital Voice Over Internet Protocol (VOIP) phone system, giving staff
enhanced communications abilities. And we will continue deploying electronic document
workflow software that will help the County in an effort to move away from so much
paper, allowing departments to share or route electronic documents instantaneously,
process documents in parallel, and eliminating time spent physically routing documents.
Regulatory reform & permit streamlining: We are also harnessing technology to improve
permitting in the Department of Community Development and the Environmental Health
Division, by implementing new permitting software to replace a legacy system from the
1990’s. The new system will trigger permit review workflow improvements, gain
efficiencies, increase timeline accountability, and improve the customer’s experience when
applying for land use, building, water, or septic permits. Importantly, in 2019 the County
will also begin work to streamline and simplify regulations in county code, starting with the
Critical Areas Ordinance. We must make our regulations more understandable and
efficient for citizens to comply with, and for County staff to administer. Reducing the time
and cost to apply for permits is an important foundation for supporting housing
affordability and fostering business and job growth throughout Jefferson County.
As we move into 2019, we are cautiously optimistic about the County’s direction. However, we are
increasingly aware of an impending recession, which is years overdue. A recession is sure to come –
the question is when, and how do we prepare for it.
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Overview
Staff, elected officials and department directors have worked together in preparing a Budget for
2019. Details of the 2019 Recommended Budget are on-line at www.co.jefferson.wa.us.
The total 2019 Recommended Jefferson County Budget is $56,112,340 for all funds combined:
General Fund: $ 20,377,815
50 Other Funds: $ 35,734,525
All Funds: $ 56,112,340
Although the recommended 2019 Budget is largely status quo, preparing the budget continues to
be challenging. Despite nine years of continued national economic growth and with Seattle’s
booming economy nearby, Washington State’s funding model for county government, especially
for rural counties like ours, remains broken. Jefferson County struggles to sustain recession levels
of service. This is true for counties across Washington State.
Jefferson County’s elected officials, department managers and staff earnestly strive to better serve
our residents but we have limited means to do so. We work together for a fair budget and
distribution of resources. Driven to serve our residents, we continue to collaborate, and we
continue to innovate.
TABLE 1 below shows how total General Fund revenues and expenditures for 2019 compare to
2018:
TABLE 1: GENERAL FUND
2018 Original 2018 2019 % Change
Budget Projected Year Recommended From 2018
end Budget Projected
General Fund Revenues $18,582,629 $20,626,130 $19,664,133 -4.7%
General Fund Expenditures $19,276,110 $20,087,238 $20,377,815 1.4%
Estimated Ending Fund Balance $ 4,038,960 $ 4,901,967 $ 4,544,896 -7.3%
Unencumbered Fund Balance $ 1,281,334 $ 1,610,046 $ 1,447,445 -10.0%
ATTACHMENT 1 to this memo summarizes Recommended 2019 General Fund revenues and
expenditures by department.
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Besides the General Fund, the County has 50 other funds, such as the County Road Fund, Public
Health, the Solid Waste Fund, and a Veterans’ Relief Fund. Total recommended budget revenues
and expenditures for these 50 funds are shown in TABLE 2. The amounts typically vary year-to-
year, depending on the size and schedule of large capital projects (such as road projects, facility
projects and vehicle, equipment and software acquisitions).
TABLE 2
50 OTHER FUNDS
2018 Budget 2019 Budget % Change
Revenues $ 31,112,985 $ 32,067,792 3.1%
Expenditures $ 37,581,833 $ 35,734,525 -4.9%
ATTACHMENT 2 to this memo summarizes total 2019 Recommended budgeted revenues and
expenditures for each of the 50 other funds, as well as their projected beginning and ending fund
balances.
5-Year Budget Strategy
Jefferson County uses a rolling five-year model of General Fund revenues and expenditures to
inform budgetary strategies for the coming year and beyond.
TABLE 3 on the next page shows the General Fund’s history from 2015 to present, and models the
projected General Fund revenues and status-quo expenditures for the next 5 years, 2019-2023.
Some 2018 revenues have out-performed our original budget for the current year, improving the
General Fund’s fund balance going into 2019.
Revenues projected for the future (excepting a new recession) have also improved. This includes
sales tax, as well as improved certainty in future distributions of federal Payment In Lieu of Taxes
(PILT).
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TABLE 3
November 19, 2019
20192020202120222023
20192020202120212021
GENERAL FUND 20152016201720182018projectedprojectedprojectedprojectedprojected
ProjProjProjProj
ActualActualActualBudget**projectedBudgetBudgetBudgetBudgetBudget
IncrIncrIncrIncrIncr
Beginning Fund Balance2,762,0063,593,4504,304,3904,395,1094,188,5484,901,9674,544,8964,085,5973,897,9703,657,860
Revenues17,298,96617,702,65418,283,88018,582,62919,330,40319,418,32419,981,45520,568,91021,165,40921,779,205
0.5%2.9%2.9%2.9%2.9%
Additional Sales Tax Projected
One time funds Received1,660,0001,574,362863,2721,295,727245,809
New Revenues
Other One time revenues19,037
TOTAL REVENUES18,958,96619,277,01619,166,18918,582,62920,626,13019,664,13319,981,45520,568,91021,165,40921,779,205
Expenditures Base Budget(16,954,773)(17,489,670)(18,293,903)(18,865,110)(19,176,238)(19,932,979)(20,471,169)(21,126,247)(21,786,787)(22,468,464)
3.9%2.7%3.2%3.2%3.2%
To Capital Improvement Fund(880,000)(300,000)
One time costs(297,461)(782,500)(1,169,330)(411,000)(411,000)
Other One time costs (500,000)(444,836)(333,670)
Additions to base budget(140,000)
Other additions to base
TOTAL EXPENDITURES:(18,132,234)(18,572,170)(19,463,233)(19,416,110)(20,087,238)(20,377,815)(20,804,839)(21,126,247)(21,786,787)(22,468,464)
Year-End Adjustments4,7126,094177,000(177,000)
Interfund Loan Reimb.
Estimated carryover at 1.75%339,782351,527356,612364,085369,709381,269393,198
Ending Fund Balance3,593,4504,304,3904,184,3463,901,4104,901,9674,544,8964,085,5973,897,9703,657,8603,361,800
Recomd. Reserves - 10% of Expend.1,813,2231,857,2171,946,3231,941,6112,008,7242,037,7822,080,4842,112,6252,178,6792,246,846
Revenue Stabilization Reserve440,000502,000726,000726,000726,000726,000726,000726,000726,000726,000
Reserved for one-time following year417,250607,000516,000104,000557,197333,670
Unreserved Fund Balance922,9771,338,173996,0231,129,7991,610,0461,447,4451,279,1131,059,345753,182388,954
Diff. in Rev and Expendi (no carryover):826,732704,846(297,044)(833,481)538,892(713,682)(823,384)(557,337)(621,378)(689,259)
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In developing the 2019 budget, the County listened to the input from elected officials and
department directors, as always. Much of this input centered around how the County budgets
annual PILT revenues.
Historically, the County has been very conservative in budgeting PILT revenues for on-going
expenses. Past uncertainty about Congressional funding for PILT caused Jefferson County to
include only about $512,210 (2014-2018 average) per year of PILT in our 5-year base budget
model, to avoid relying too heavily on revenue that might disappear. Once PILT revenues were
actually received, the County typically would apply the excess PILT to one-time funding needs.
For 2019 we have changed our approach.
Today there is greater certainty that federal law requires Congress to budget full funding for
PILT. Thus, we have built an additional $200,000 of PILT revenue into the base budget for 2019
and every year of our 5-year model. We estimate 2019 PILT revenues to be about $1.5 million.
If $512,210 plus $200,000 of PILT now gets included in the General Fund base budget for on-
going expenses, that leaves roughly half of the $1.5 Million in PILT to backfill shortfalls in Secure
Rural Schools funding for Roads, and to pay for one-time requests by departments, and to cover
the unexpected urgent needs which crop up in every year. For 2019, we have used $445,000 of
that portion of PILT to pay for one-time enhancements in the Recommended 2019 Budget. But
the tradeoff for allocating next year’s PILT revenues to fund one-time enhancements in the
County Budget to be adopted in December 2018 is that it reduces what remains to deal with
emergent needs mid-year in 2019. All County branches and departments will need to watch
their 2019 budgets very closely.
In spite of some revenues trending up, and including an additional $200,000 of PILT in the
General Fund base budget, we have seen other revenues underperform and trend down. An
example of this is a reduction in revenues from both District and Superior courts, where recent
case law imposes limits on what court fees can be charged and to whom.
Coupled with a structural gap in property tax revenues described below, the net effect is that
over the next 5 years, the County is projected to draw down approximately $1.2 Million (76%)
of its unreserved fund balance as shown above in TABLE 3. That is before another recession.
Base budget expenditures for 2019 include a 3% increase for non-personnel line items, annual
pay step increases for eligible employees as well as increased benefit costs. At this writing,
most union agreements for 2019 and beyond have been settled and have been incorporated
into the 2019 base budget. A number of smaller bargaining unit agreements are still being
negotiated and once settled, adjustments will need to be added to the 2019 Budget at that
time. The Recommended Budget includes a 1.75% general wage adjustment for non-union
staff. The Budget also includes a 3% increase in transfers from the General Fund to support
public services in other funds such as Parks, Public Health, and Community Development. These
modest increases are to the County General Fund’s base budget to sustain existing public
services, and are a partial offset to ground lost to inflation.
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Across all funds and departments, a total of 280.52 full time equivalent employees (FTEs) are
proposed for 2019, 6.91 FTEs more than 2018, spread across eight different departments.
Jefferson County will have 6.2% - 18.42 FTEs - fewer staff in 2019 than in 2008 - even
discounting JeffCom’s 2013 transformation into a separate entity. See a detailed Staffing
Schedule in ATTACHMENT 3 to this memo.
A Structural Funding Gap
Jefferson County has three funds directly supported by property tax: the General Fund, Road
Fund, and Conservation Futures Fund. About 46% of your General Fund comes from property
tax to support criminal justice and other public functions mandated by the state. 60% of the
Road Fund’s Operating Revenue comes from property tax, and is used to maintain and operate
400 miles of county roads plus non-motorized transportation corridors. 100% of the
Conservation Futures Fund is from property tax.
In 2007, the State Legislature reinstated Tim Eyman’s I-747, which had been ruled invalid by the
state Supreme Court. State law arbitrarily constrains revenue growth in property taxes to an
arbitrary 1 percent limit annually (excluding new construction) without a vote of the people.
The value of new construction is added to the tax base, which, for the last eight years in
Jefferson County has averaged 0.8% per year. So combined with the 1% state limit, our tax
base has grown about 1.8% in each of the past eight years.
1.8% per year simply does not keep pace with the real cost of inflation, which in Washington
State has averaged 3.0% over the same eight years. The County’s actual cost to maintain
existing levels of most county services grows about 3.2% per year, which means our property
tax loses 1.4% of its buying power per year at a time of historically low inflation. Over the past
eight years, that is a cumulative erosion of 11%. As inflation now notches up or when
construction slows during a recession, the 1.4% yearly erosion of the County’s property tax base
gets worse. For Roads, the situation is even more dire, as the Washington Department of
Transportation’s Construction Cost Index has gone up an average of 8% per year during the
most recent 5 years reported. The 6.2% gap between 1.8% increased revenues and 8%
increased construction cost is not sustainable. Lastly, increased service demands from
population growth over the last eight years further strains the County’s capacity.
To maintain essential county services to residents, the State Legislature must enact legislation
to provide local government the tools to fund government services for our residents.
On top of the structural challenges we already face in these “good” times, we must prepare for
sustaining public services in bad times, which appear to be increasingly likely. As part of our 5-
year General Fund budget strategy the County maintains a General Fund Revenue Stabilization
Reserve, currently at $726,000. The Revenue Stabilization Reserve is on top of the General
Fund’s regular 10% fund reserve (approximately $2.0 million) for normal cash flow and for
emergency expenditures. The Revenue Stabilization Reserve is intended to help during the next
economic recession, or in a year when large highly variable revenues (like DNR timber harvest
revenue) are down. Pursuant to County Resolution 38-10, 60% of actual sales tax revenues the
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County receives above the amount budgeted is added to the Revenue Stabilization Reserve.
Based on our latest sales tax projections for year-end 2018, we expect we will be able to add
around $85,000 to the Revenue Stabilization Reserve in 2019.
Highlights of Changes in General Fund
The 2019 General Fund includes a number of significant changes compared to the 2018 budget
projections, summarized, below.
GENERAL FUND: Revenues:
General Fund Budget Description
Change
Sales Tax $117,573 Combined increase anticipated in Regular, Local Option &
Special Purpose (Prop. 1) sales tax from the 2018 projected
(2019 budget is 2.4% over projected 2018 sales tax).
Property Tax $185,204 1% General Levy & increase from new construction
Department ($29,842) Decreases in various departments’ projected revenues,
Revenues combined.
As previously noted, the County has also changed its approach for accounting for PILT revenue,
adding $200,000 in PILT revenue to the on-going base budget in 2019 and beyond, and adding
$445,000 of one-time revenues from PILT in 2019 only.
GENERAL FUND: Expenditures:
This year, a variety of departments requested that a total of almost $441,000 of enhancements
be added to the General Fund’s existing $20.4 Million base expenditure budget – a potential
increase of 2.2 percent that, regardless of the merits of the requests, simply is not affordable
given the County’s structural funding problem and because of the coming recession. However,
a few priority increases (corresponding to the $200,000 of PILT revenue added to base
budgeted revenues) fit sustainably in our 5-year budget model are included in the
Recommended budget:
General Fund Budget Description
Change
Auditor $34,510 Accounting staff
Community $85,000 Code compliance officer (listed as ongoing,
Development however, continuation is contingent on available
funding)
Parks and Recreation $55,155 Help to maintain status quo Parks and Recreation
program
Sheriff $13,000 Civil Clerk Hire for the Courthouse
Treasurer $6,484 Increase staff hours
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In addition, the 2018 adopted budget for the Sheriff’s Office added a new patrol deputy in the
second half of 2018, with a base budget increase paying for ¼ FTE, and the other ¼ FTE paid for
by the Sheriff finding economies in the rest of his 2018 expenditures. In 2019 the County has
included another ¾ FTE of base budget funding to the Sheriff’s Office, now funding 100% of the
added deputy on an on-going basis.
This Recommended Budget also funds $70,200 in one-time enhancements for the Sheriff,
including a part time nurse in the jail and a software license and training for our Sheriff’s Civil
office in the Courthouse. This is part of a total of $444,836 in one-time enhancement
expenditures funded from the second half of the County’s projected PILT revenue for 2019.
These one-time expenditures are shown below:
2019 One-time Funding Allocations
Item Funding
Sheriff – Software license and one time training costs $ 13,000
Sheriff – Part time nurse for jail medical $ 57,200
Emergency Management – Travel, training, supplies $ 9,862
Prosecutor – Additional Civil Deputy Prosecutor $ 29,633
Assessor – Appraiser assistant for workload surge $ 59,427
Assessor – High resolution aerial photography $ 6,000
Treasurer - Clerk hire for office coverage $ 11,000
Treasurer – Replace check scanning computer $ 4,578
Non-Departmental – Public Records Position – 2 nd year funding $ 108,282
4H After School – For Brinnon/Quilcene program $ 9,532
Total: $ 444,836
Because County revenues have been constrained, wages for our valued Jefferson County
employees are also constrained. In 2017, there were growing questions of whether
compensation for some of our job classifications was particularly behind the compensation for
similar jobs in other jurisdictions. The County commissioned a study of the total compensation
for all Jefferson County’s job classifications, compared to those of seven comparable counties.
The purpose was to identify job classifications within our organization that are most below the
norm, so we might try to address them in a sustainable way within the County’s limited means.
In 2018 the County set aside $40,000 of sustainable base budget funding for use to tackle wage
adjustments for one or more of the greatest outlier positions. A draft of a total compensation
study has been completed. Once the study is finalized, we will negotiate any proposal to make
wage equity adjustments with our bargaining units. In the meantime, the $40,000 for equity
adjustments originally reserved in 2018 remains available for allocation in 2019 and beyond.
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Highlights of Changes in Other Funds
Significant changes in revenues and expenditures in the other County 50 funds are listed below.
OTHER FUNDS: Revenues
Other Funds Budget Description
Change
JC Affordable $44,119 Increase in recording fee revenue
Housing
Water Quality $203,235 Increase in State and Federal Funding
County Parks Imp. $85,125 Transfer in from the Capital Improvement Fund for
capital maintenance/improvement projects
County Roads $464,360 Increase in Federal and State Grant Funding for
construction projects
Parks & Recreation $55,155 Ongoing increase in general fund transfer
Community $85,000 Increase in general fund transfer for code compliance
Development officer
OTHER FUNDS: Expenditures
OTHER FUNDS Budget Description
Change
WSU Cooperative ($30,672) Reduction in personnel costs
Extension
Solid Waste ($430,153) Reduced professional services and fewer building
improvements
Water Quality $46,406, Increase in professional services, fiscal fee increase
County Parks $85,125 Four Parks capital projects
Improvement Fund
County Roads $370,000 Increase in construction projects
Fleet Services ($909,000) Fewer vehicle and equipment replacements
Construction and ($474,000) Fewer non-building projects
Renovation
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Future Opportunities and Challenges:
Leveraging technology - As described at the beginning of this memo, the County is
undertaking significant technology investments in 2019 to improve operating efficiency
and delivery of service to the public. We will begin migration to modern financial
software systems, which will help in all County departments, especially our Auditor and
Treasurer Offices. We will replace an antiquated phone system a digital Voice Over
Internet Protocol (VOIP) phone system, giving staff enhanced communications abilities.
And we will continue deploying electronic document workflow software that will help
the County in an effort to move away from so much paper, allowing departments to
share or route electronic documents instantaneously, process documents in parallel,
and eliminating time spent physically routing documents.
Regulatory reform & permit streamlining - We are also harnessing technology to
improve permitting in the Department of Community Development and the
Environmental Health Division, by implementing new permitting software to replace a
legacy system from the 1990’s. Our new EnerGov permitting system, when fully
implemented, will trigger permit review workflow improvements, gain efficiencies,
increase timeline accountability, and improve the customer’s experience when
applying for land use, building, water, or septic permits. Importantly, in 2019 the
County will also begin work to streamline and simplify regulations in county code,
starting with the Critical Areas Ordinance. We must make our regulations more
understandable and efficient for citizens to comply with, and for County staff to
administer. Reducing the time and cost to apply for permits is an important
foundation for supporting housing affordability and fostering business and job growth
throughout Jefferson County. Work begun in 2019 to streamline regulations and
permitting will continue in 2020.
Housing – A lack of affordable housing for residents and the local labor force is a
pressing community problem, especially for households that have low or very low
income. The regulatory reforms described above will help, but alone, are not enough. In
2017, the County presented to the citizens of Jefferson County the opportunity to help
finance building more affordable housing, by placing Proposition 1 on the ballot. The
measure did not pass, so a critical shortage of affordable housing remains to be solved,
and homelessness continues to be a humanitarian challenge for the entire county. On a
positive note, the state legislature made permanent and increased fees on recording
documents with the County Auditor, dedicated for programs for affordable housing and
homeless housing, and the County has entered into a new Interlocal Agreement with
the City of Port Townsend to use that modest new revenue. This presents some
promising opportunities to improve how the community approaches the affordable
housing and homelessness issues. Affordable housing and homeless housing remain
problems for the entire community to solve.
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Capital Facilities Planning – The County’s projected minimum capital needs from 2019
to 2023 are estimated at $3.5 Million, still leaving many aging facility capital
maintenance needs unmet, and not addressing any new facilities that may be needed to
support public services or to address seismic improvements for County buildings. Given
that the County retired some debt in 2018 and will retire more debt in 2022 the County
will have some future funding flexibility to address some of these long neglected needs.
Facility, property and capital planning will be a significant focus for the County’s Central
Services Director in 2019.
County Roads – The Road Fund continues to be impacted by the 1% Property Tax cap
that loses ground against 8% inflation for road construction. It is also impacted by flat
gas tax receipts, and by reductions in federal funding the Road Fund receives through
the Secure Rural Schools and Communities (SRS) Act. At the same time, the County
continues to use $720,000 per year from the Road Fund for traffic law enforcement by
the Sheriff’s Office in the General Fund, as authorized by state law. These trends have
left Public Works with inadequate funding for capital projects to improve roads and
other transportation facilities. Public Works copes with these funding shortages by
reducing roads maintenance and construction programs. They work tirelessly to
augment local funding by applying for state and federal matching funds, with
considerable success. Despite their best efforts, the Road Fund balance is projected to
dwindle alarmingly from approximately $4 Million in 2018, down to $1.3 Million by
2024, unless we further reduce maintenance and road improvements, or find new
revenues. The Road Fund trajectory is not sustainable. Jefferson County will need to
continue to explore options for sustainable and adequate funding for Roads.
Parks & Recreation –Since the Great Recession Parks and Recreation has been on a
shoestring budget, with funding inadequate to meeting community demands. The
County has been using one-time revenue sources to keep the parks program afloat. In
2018, the County provided $52,000 from one-time General Funds to cover Rec Center
facility costs. A one-year allocation of $28,000 in 2018 from the Hotel-Motel Fund for
staffing and maintenance at County campgrounds upon the retirement of a citizen
volunteer, also helped. In 2019 we are increasing the Parks base budget by $55,155.
The 2018 Hotel-Motel Fund allocation to Parks will increase to $42,874 in 2019. With
these increases, Parks and Recreation will have an unreserved fund balance of about
$55,201 at the end of 2019, a considerable improvement in their circumstances. Still,
Parks’ base budget is short by over $45,000 per year to maintain existing facilities and
recreation programming. In addition to the baseline budget increase cited above, we
are providing $85,125 in capital improvement funds for the Parks Improvement Fund to
fund four parks capital projects at Memorial Field, HJ Carroll Park and Upper Oak Bay
Park. Sustaining Parks funding remains an issue that will require continued attention.
A Future National Economic Recession – Although we are 9 years into an economic
recovery, we still have fewer employees than in 2008 and we have a larger population
to serve. And while 2018 revenues on balance are robust, we are beginning to see
warning signs that the economy may be slowing - such as stock market volatility/losses,
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rising interest rates, a cooling housing market and significant layoffs in the auto
industry. We already have the structural deficit problem where revenues grow more
slowly than expenses. Another deep recession, as happened in 2008, or even a modest
downturn would pose serious risks for public services. We have taken and will take
prudent fiscal measures to help blunt the impacts of any economic slowdown or
recession, but those measures simply provide short-term breathing room to allow us to
make whatever additional cost and service reductions that will be necessary to maintain
a balanced budget.
Until the State Legislature acts to give counties more tools for funding important county
services, Jefferson County will continue to explore whatever partial solutions we can
find.
Compliance Opinion & Basis for Budget Preparation
The 2019 Budget complies with all statutory and constitutional requirements, and substantially
complies with adopted County ordinances and resolutions, including:
Resolution No. 35-18, setting Objectives and Procedures for the 2019 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 2012 through 2018; 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
Revenue: This Recommended 2019 Budget includes:
the allowable 1% property tax revenue increase for the Road Fund
o
the allowable 1% property tax revenue increase for the General Fund,
o
the allowable 1% property tax revenue increase for the Conservation Futures Fund,
o
the base local sales tax of 1%
o
the 0.1% sales tax for Criminal Justice to the General Fund
o
the 0.3% special purpose sales tax to the General Fund approved by the voters in
o
November, 2010 (Prop. 1)
the 0.1% sales tax for Mental Health/Chemical Dependency
o
the 0.1% sales tax for JeffCom 911
o
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The 2019 level of “diversion” of Road Fund property tax to the General Fund is $720,000,
the same dollar figure as in years 2011 through 2018 and which is less than the amount of
money budgeted to be expended for traffic law enforcement by the Sheriff in 2019.
Debt: At year end 2018 as we enter into 2019, the County expects to have the following
principal outstanding on the debt:
General Obligation Bonds $ 3,923,761
Contractual Borrowing $ 2,367,388
Estimated Debt: Principal Outstanding 12/31/18 $ 6,291,150
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. (The County’s JeffCom bond debt service is funded by JeffCom’s E911
sales tax revenues.)
TABLE 5
Jefferson County
Annual Principal & Interest Due
$1,400,000
(rev -11/20/2018)
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
All County Bond Principal & Interest dueJeffCom only Paid by County REET/Gen'l Fund
As shown in the graph, in 2019, some of the County’s existing annual debt service will be
reduced, which would allow the County to bond for new capital improvements without going
above today’s debt service cost. In 2022, the County will gain additional capital bonding
capacity.
13 of 19
Conclusion
The 2019 Budget is a fiscally responsible budget. Still, significant uncertainties, challenges and
opportunities lay ahead.
Many other individuals in every branch and department of our organization work hard to
prepare the Budget. Particular recognition and my personal thanks go to Mark McCauley, Anne
Sears, Erin Lundgren, Rose Ann Carroll, Judy Shepherd, Jeff Chapman, Stacie Prada, Renee
Talley, Cathy Taylor, Veronica Shaw, Leslie Locke, Julie Shannon, and Carolyn Gallaway.
ATTACHMENTS:
1. 2019 General Fund Summary
2. 2019 Other Funds Summary
3. 2019 Departmental Staffing Schedule
4. 2019 Special Purpose Sales Tax
14 of 19
ATTACHMENT 1: 2019 General Fund Summary – page 1
November 19, 2018
Page 1 of 2
20162017201820182019
GENERAL FUND
ActualActualBudgetProjectedRecommend
BARS REVENUE TYPE
RevenuesRevenuesRevenuesRevenuesRevenues
311Property Tax7,514,257 7,643,8817,850,0277,836,1198,021,323
311Diverted Road Taxes720,000720,000720,000720,000720,000
317Timber Excise Tax247,872333,190300,000354,678300,000
317Timber Excise Tax (div)33,46344,63435,00039,59939,599
313Sales Tax2,738,2442,876,3393,040,0003,124,2093,204,826
313Sales Tax - Local Option Criminal Justice364,508375,219380,070403,538407,177
313Sales Tax - Special Purpose876,170903,099955,428983,6621,006,979
317Leasehold Excise Tax55,40769,80162,00067,68066,801
341Treas Collection Fees REET84,21390,72780,00087,36787,175
359Interest & Penalties329,631292,569346,497313,558305,954
TOTAL TAXES12,963,76513,349,45913,769,02213,930,41014,159,834
332Fed Entitlements-PILT (includes state) 1,476,638 1,458,645572,2201,850,0001,000,000
335PUD Priv. Tax318,107 314,418323,420393,491375,296
336Marijuana Tax36,920 21,297 24,72056,74851,017
336Crim Just Hi Crime/DUI/Asst477,057 435,778463,500425,837438,612
336Liquor Excise Tax41,772 44,174 41,53646,39347,321
336Liquor Profit84,749 84,441 90,20385,59888,873
362Interfund Serv.-Cost Alloc294,890 143,455328,526497,031329,632
361Investment Income682,667 373,560230,000465,725350,000
341Treasurer's Invest Fees & other fees20,365 33,805 16,29044,37835,830
360Miscellaneous Revenue17,179 9,6678,73516,33227,784
395Timber Sales D.N.R.336,350 207,899250,000250,000250,000
390Other Non-Revenues / Extraordinary 30,601
397Transfer in to Treas. from other funds48,341 40,322 3,00032,4118,000
TOTAL OTHER TREAS. REVENUE3,835,0353,198,0622,352,1504,163,9443,002,365
TOTAL TREASURER'S REVENUE16,798,80016,547,52116,121,17218,094,35417,162,199
Dept #
010Assessor8,761 10,970 8,7008,6908,300
020Auditor336,443 345,993331,371342,293342,217
021Elections160,151 136,242159,722123,327130,160
050Clerk192,402 179,130170,768174,686152,506
059County Administrator 3,7004,2604,2604,260
060Commissioners8,609 8,9238,0008,9498,000
067Emergency Management70,305 66,877 64,95959,91370,604
068Community Services8,269 4,6116,9004,0004,005
080District Court632,629 596,807603,032676,829636,823
110Juvenile Services260,358 290,984259,676263,192298,272
150Prosecuting Attorney124,918 151,404178,690130,576148,916
151Coroner8,340 24,610 25,34832,72325,348
180Sheriff626,703 723,587603,401613,772561,174
240Superior Court26,142 58,672 60,91255,76460,912
270Non Departmental24,483 49,196 50,44732,80250,437
TOTAL DEPARTMENTAL REVENUES2,488,5132,651,7062,536,1862,531,7762,501,934
TOTAL ALL REVENUES:19,287,31319,199,22718,657,35820,626,13019,664,133
Percent change from previous year11.0%-0.5%-2.4%7.4%-4.7%
15 of 19
ATTACHMENT 1: 2019 General Fund Summary – page 2
Page 2 of 2
20162017201820182019
GENERAL FUND
ActualActualBudgetProjectedRecommend
Dept.EXPENDITURES
ExpenditureExpenditureExpenditureExpenditureExpenditure
010ASSESSOR871,472 820,967882,122907,413988,367
020AUDITOR558,188 606,883636,876645,282688,338
021ELECTIONS305,083 243,955303,923309,573353,930
050CLERK386,609 418,377450,812464,561473,482
059COUNTY ADMINISTRATOR331,528 375,899409,559415,664421,044
060COMMISSIONERS430,581 506,416506,070506,070520,708
061BOARD OF EQUALIZATION30,890 33,556 24,71724,71725,116
062CIVIL SERVICE COMMISSION1,827 1,7832,3052,3052,374
063PLANNING COMMISSION35,308 44,925 52,60552,60548,757
067EMERGENCY MANAGEMENT193,310 199,918209,848209,848205,816
068COMMUNITY SERVICES185,945 179,265191,580191,580197,340
080DISTRICT COURT801,149 834,719895,076932,080938,624
110JUVENILE SERVICES936,200 965,1821,010,6121,037,7301,139,957
150PROSECUTING ATTORNEY914,053 970,1841,029,7561,074,6191,206,635
151CORONER45,865 60,331 59,12670,82640,300
180SHERIFF5,861,428 6,239,8076,116,8436,214,1756,405,596
240SUPERIOR COURT277,176 337,213331,542352,416341,012
250TREASURER443,116 475,846466,342477,806491,343
SUBTOTAL DEPARTMENTS:12,609,72813,315,22613,579,71413,889,27014,488,739
270NON-DEPARTMENTAL3,312,922 3,845,4593,718,6513,718,6513,825,484
one time expenses200,000
261OPERATING TRANSFERS
261Op Trans- 10- Substance Abuse50,200 51,720 53,28053,28054,900
261Op Trans- 50- Jeff County Extension186,250 253,840182,100186,600192,595
261Op Trans- 350- County Cap. Improve.300,000 -
261Op Trans- 99- Parks & Recreation443,150 481,350490,655501,557505,375
261Op Trans- 160-Health701,220 657,780672,830762,158693,020
261Op Trans- 165-Water Quality0 0000
261Op Trans- 200-Community Develop.572,000 451,140464,680593,707563,630
261Op Trans-180 Road Fund356,000 389,92159,815
261Op Trans- 261-Risk Management0 -000
261OTHER OPERATING TRANSFERS40,700 51,930 114,200122,20054,072
TOTAL: 18,572,170 19,498,366 19,276,110 20,087,238 20,377,815
Percent change from previous year2.8%5.0%-0.4%3.0%1.4%
Beginning Cash and Investments3,593,4504,314,6874,405,4064,188,5484,901,967
Revenues19,287,31319,199,22718,657,35820,626,13019,664,133
Expenditures18,572,17019,498,36619,276,11020,087,23820,377,815
Ending Cash & Investments4,308,5934,015,5483,786,6544,727,4404,188,285
adjustments6,094173,000(177,000)
carryover (est. at 1.75%)337,332351,527356,612
Adj. Ending Cash & Investments4,314,6874,188,5484,123,9864,901,9674,544,896
Required 10% of Exp. to Reserves1,857,2171,949,8371,927,6112,008,7242,037,782
Revenue stabilization reserve502,000726,000726,000726,000726,000
Reserved for one time expenses 607,000516,000104,015557,197333,670
Unreserved Fund Balance1,348,470996,7121,366,3601,610,0461,447,445
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ATTACHMENT 2: 2019 Other Funds Summary
November 18, 2018
201820182019 est201920192019 est.
RevenueExpendBeg. FundRevenueExpendEnd. Bal.
OTHER FUNDSBUDGETBUDGETBalanceBUDGETBUDGETBudget
105-AUDITOR'S O&M
75,337 106,283 22,000 80,480 84,813 17,667
106-COURTHOUSE FACILITATOR
5,100 5,163 11,543 4,100 5,259 10,384
107-BOATING SAFETY PROGRAM
48,740 48,740 30,904 48,500 48,500 30,904
108-COOPERATIVE EXT. PROGRAMS
586,294 561,610 45,352 557,432 530,938 71,846
113-4-H AFTER SCHOOL
45,250 45,250 13,497 47,600 53,233 7,864
119-JEFFCOM BOND FUND
204,000 207,517 29,600 204,000 207,163 26,437
120-CRIME VICTIMS SERVICES
110,757 105,138 86,664 140,813 132,549 94,928
123-JEFF CO GRANT MANAGEMENT FUND
150,000 150,000 34,657 150,000 150,000 34,657
125-HOTEL-MOTEL
500,500 505,603 611,742 500,500 505,603 606,639
126-H&HS SITE ABATEMENT
- 37,000 16,817 - 6,817 10,000
127-PUBLIC HEALTH
4,372,775 4,637,684 1,105,380 4,422,082 4,801,141 726,321
128-WATER QUALITY FUND
960,714 1,097,601 549,832 1,163,949 1,144,009 569,772
129-LAND ACQUISITIONS
234,448 234,448 -
130-MENTAL HEALTH
45,150 44,250 19,324 47,637 44,250 22,711
131-CHEMICAL DEPEND/MENTAL HEALTH
490,490 561,398 342,170 527,003 572,910 296,263
134-JC INMATE COMMISSARY
21,446 21,446 54,441 27,958 23,957 58,442
135-JEFFERSON COUNTY DRUG FUND
18,288 19,889 53,745 12,249 19,889 46,105
136-SHERIFF DRUG INVESTIGATION
- 6,666 - 6,666
140-LAW LIBRARY
10,150 10,609 14,464 10,927 10,927 14,464
141-TRIAL COURT IMPROVEMENT
25,000 42,000 17,050 23,000 23,000 17,050
143-COMMUNITY DEVELOPMENT
1,717,406 1,717,406 439,000 1,599,379 1,831,919 206,460
147-FEDERAL FOREST TITLE III
- 83,552 - - 83,552
148-JEFF CO AFFORDABLE HOUSING
318,881 288,643 358,137 363,000 288,643 432,494
150-TREASURER'S O&M
47,280 48,173 38,000 47,624 45,624 40,000
151-REET TECHNOLOGY FUND
14,420 14,000 29,450 15,690 14,000 31,140
155-VETERANS RELIEF
59,820 69,446 69,651 64,975 74,871 59,755
160-WATER POLLUTION CNTRL LOAN FUND
- 7,000 96,327 7,000 89,327
174-PARKS AND RECREATION
648,380 665,612 133,076 669,649 683,524 119,201
175-COUNTY PARKS IMPROVEMENT FUND
131,185 153,536 118,277 184,125 216,043 86,359
178-POST HARVEST TIMBER MGMT RESV
- 1,500 9,989 50 2,500 7,539
180-COUNTY ROADS
7,838,108 8,837,403 4,720,324 8,938,628 9,672,880 3,986,072
181-EMERGENCY ROAD RESERVE
- 2,492 - - 2,492
183-FACILITIES MANAGEMENT
1,074,934 1,150,372 575,808 1,065,393 1,175,762 465,439
185-FLOOD/STORM WATER MANAGEMENT
3,133 8,874 2,656 6,218
186-BRINNON FLOOD CONTROL SUB-ZONE
2,500 9,848 2,500 7,348
187-QUILCENE FLOOD CONTROL SUB-ZONE
60,879 26,993 18,356 8,637
199-JEFFERSON COUNTY FAIR
250,000 250,000 280,000 280,000 -
301-CONSTRUCTION & RENOVATION
1,272,450 1,428,251 877,376 518,500 1,114,577 281,299
302-COUNTY CAPITAL IMPROVEMENT
1,072,938 2,010,585 1,082,392 1,072,125 881,000 1,273,517
306-PUBLIC INFRASTRUCTURE
451,400 480,000 860,004 510,100 407,550 962,554
308-CONSERVATION FUTURES TAX
239,400 702,440 522,133 258,841 522,133 258,841
401-SOLID WASTE
3,357,942 3,763,705 1,504,952 3,336,196 3,333,552 1,507,596
402-SOLID WASTE POST CLOSURE
150 6,000 49,577 - 6,000 43,577
403-SOLID WASTE EQUIPMENT RESERVE
4,000 - 863,681 8,000 - 871,681
404-YARD WASTE EDUCATION FUND
5,800 5,000 9,228 6,800 7,500 8,528
405-TRI-AREA SEWER FUND
226,000 369,481 736,397 234,500 357,312 613,585
501-EQUIPMENT RENTAL & REVOLVING
2,451,202 4,286,858 1,655,557 2,366,684 3,241,139 781,102
502-RISK MANAGEMENT RESERVE
215,000 215,000 206,249 215,000 215,000 206,249
505-EMPLOYEE BENEFIT RESERVE
208,000 249,200 594,853 208,000 249,200 553,653
506-INFORMATION SERVICES
1,803,298 2,538,092 1,435,552 1,901,855 2,483,878 853,529
TOTAL OTHER FUNDS BUDGETS
31,112,985 37,581,833 20,183,597 32,067,792 35,734,525 16,516,864
001-GENERAL FUND
18,603,503 19,857,779 4,901,967 19,664,558 20,377,815 4,188,710
TOTAL ALL FUNDS
49,716,488 57,439,612 25,085,564 51,732,350 56,112,340 20,705,574
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ATTACHMENT 3: 2019 Departmental Staffing Schedule
11/19/2018
(Full Time Equivalents - FTE's)
Recmd.
2018
BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
to 2019
Department20092010201120122013201420152016201720182019
Change
Assessor10.639.639.529.379.379.379.659.659.509.5010.390.9
Auditor7.506.636.316.316.447.197.197.547.887.888.250.4
Elections2.192.102.102.072.072.072.102.102.122.122.620.5
Clerk7.006.526.325.825.825.825.826.106.106.046.040.0
County Administrator3.162.942.942.912.913.012.912.942.943.133.130.0
Commissioners5.235.195.195.155.155.155.155.085.084.874.870.0
Board of Equalization0.220.220.220.220.220.220.220.600.600.500.500.0
Veteran's Relief0.130.130.0
Safety & Security2.482.853.002.472.472.472.592.602.532.802.59-0.2
District Court9.258.618.398.898.899.029.119.158.968.968.960.0
Juvenile Services7.767.327.527.527.607.207.647.507.557.757.750.0
Prosecuting Attorney10.8511.7710.3210.6210.6210.6210.6010.4610.259.9510.800.9
Sheriff47.9749.5749.5149.0851.3150.6049.7450.8451.6850.7051.100.4
Superior Court2.222.032.032.012.012.212.272.252.252.252.250.0
Treasurer4.464.384.394.384.384.384.384.404.404.714.870.2
Total General Fund121.37119.76117.76116.82119.26119.33119.37121.21121.84121.29124.252.96
Auditor's O & M0.250.250.560.560.940.560.560.590.380.380.380.0
Courthouse Facilitator0.150.180.180.180.180.180.180.180.180.150.08-0.1
Boating Safety0.270.250.150.150.150.150.330.330.330.250.250.0
Cooperative Extension 2.653.062.632.923.243.094.745.575.304.254.350.1
4H After School 1.261.261.261.341.291.340.900.900.600.400.950.6
Crime Victims1.051.051.001.001.001.001.001.001.181.181.200.0
Public Health35.7535.2634.0933.0334.9333.0834.1234.1936.3133.5035.802.3
Water Quality6.755.795.245.485.766.087.148.269.098.948.55-0.4
Trial Court Improvement0.000.340.350.220.220.220.000.000.000.000.000.0
Community Development15.2011.3817.0514.8010.8512.6213.3813.9016.9816.4018.181.8
Treasurer's O & M0.290.290.290.290.290.290.290.290.290.290.290.0
Veteran's Relief0.130.130.0
Parks & Recreation7.925.285.277.937.746.745.595.395.596.015.95-0.1
County Parks Improvement0.750.250.240.070.070.120.130.140.180.180.180.0
County Roads51.9051.4749.9545.9748.9048.2445.8946.3645.4146.6346.840.2
Facilities Management7.467.426.766.756.707.847.977.967.877.717.680.0
Flood/Stormwater Mgmt.0.000.000.010.010.010.010.010.010.010.020.000.0
Brinnon Flood Control0.010.020.010.010.010.010.010.010.000.000.000.0
Quilcene Flood Control0.010.020.020.010.010.010.010.010.030.030.030.0
Construction & Renovation0.240.180.490.220.280.220.620.290.010.370.370.0
Solid Waste9.339.309.229.269.279.249.639.7511.2610.2110.00-0.2
Tri Area Sewer0.681.131.251.322.381.220.160.160.150.190.00-0.2
ER & R6.716.546.576.656.656.656.406.546.646.656.630.0
Information Services7.137.387.377.378.378.427.457.437.458.458.430.0
Total Other Funds175.9167.51170.48162.65150.10147.34146.52149.27155.24152.32156.273.95
Total All Funds297.27287.27288.24279.47269.36266.67265.89270.48277.08273.61280.526.91
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ATTACHMENT 4: 2019 Special Purpose Sales Tax
SPECIAL PURPOSE SALES TAX - 2011 - 2019
11-20-18
Actual Actual Actual Actual Actual Actual Actual Budget Budget
Department/OrganizationDescription201120122013201420152016201720182019
REVENUES:
1,006,979
Sales Tax RevenueSpecial Purpose Sales Tax Revenue381,308 621,440705,054 701,994 769,039 876,170 903,099955,428
General Fund supportProperty Taxes & Other Shared Revenue255,692 24,560 (24,560)
1,006,979
Total Revenue637,000 646,000680,494 701,994 769,039 876,170 903,099955,428
EXPENDITURES:
Sheriff1 deputy position, safety training, misc programs, 175,000 178,700178,700 180,668 184,281 188,888 194,555200,391 206,403
1 animal control officer
Prosecutor1/2 deputy prosecutor retained 37,500 38,300 38,300 38,722 39,496 40,484 41,698 42,949 44,238
Juvenile Services1 juvenile probation officer, support staff, diversion 75,000 76,600 76,600 77,443 78,991 80,966 83,395 85,897 88,474
Misc. Public Safetycosts in criminal justice departments 19,000 19,400 19,400 25,714 20,743 101,790 122,998166,688 183,133
Misc. Public Safetyone-time costs in criminal justice departments 34,444 27,000 24,912 33,995 55,530 30,900 31,827
Subtotal Public Safety:306,500 313,000347,444 349,547 348,424 446,123 498,176526,826 554,074
48.1%48.5%51.1%50.5%50.4%52.9%55.2%55.1%55.0%
% of TTL spent on Public Safety (must spend minimum of 33%):
Community Services: Tri-Area, Quilcene & Brinnon Community Centers 126,000 126,000126,000 127,300 129,900 133,148 137,150141,270 145,508
Olycap& Senior Services
Community ServicesPT Community Center 12,500 12,500 12,500 12,650 12,900 13,222 13,620 14,030 14,451
Community ServicesGardiner Community Center 2,800 2,800 2,850 2,900 2,950 3,024 3,120 3,220 3,317
Community ServicesCounty Fair 4,500 4,500 4,500 4,550 4,650 4,766 4,910 5,060 5,212
WSU Cooperative afterschool programs for youth and facility costs 20,000 20,000 20,000 20,200 20,640 21,156 21,840 22,495 23,170
Transfer to Public HealthMaternal Health Nurse 50,000 51,000 51,000 51,500 52,530 53,843 55,460 57,124 58,838
Transfer to Pub Health Programs including "Project Alert" that serves 46,600 47,500 47,500 48,000 48,960 50,200 51,706 53,280 54,878
for Substance Abuseyouth in PT, Chimacum and Quilcene
Jefferson County Programs in agriculture, water quaity, forestry, fish 45,600 45,600 45,600 46,100 47,100 47,100 48,520 49,975 51,474
Conservation District& wildlife habitat and eductation
Subtotal Community Services:308,000 309,900309,950 313,200 319,630 326,459 336,326346,454 356,848
Misc. Core ServicesStaffing and other costs in administrative depts. 22,500 23,100 23,100 29,456 23,821 61,458 61,458 71,848 85,447
Misc. Core ServicesOne-time costs in admin. & comm. serv. depts. 9,085 7,139 10,300 10,609
Subtotal core services: 22,500 23,100 23,100 29,456 23,821 70,543 68,597 82,148 96,056
1,006,979
TOTAL EXPENDITURES:637,000 646,000680,494 692,203 691,875 843,125 903,099955,428
To Revenue Reserve/capital/one-time (Res. 038-010) 9,791 77,164 33,045 -
19 of 19