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HomeMy WebLinkAbout032719 Budget Committee Minutes Page 1 of 3 Budget Committee Meeting Minutes JEFFERSON COUNTY BUDGET COMMITTEE MINUTES March 27, 2019 8:30 am First Floor Conference Room Members: Amanda Hamilton Janet Holbrook Lori Bailey Ruth Gordon Anne Sears Jeff Chapman Lysa Phillis Sophie Nordstrom Barbara Carr Joe Nole Mark McCauley Stacie Prada Brenda Huntingford Jodi Adams Matt Tyler Su Tipton Carol Palmer Judy Shepherd Mindy Walker Susan Parke Cathy Taylor Kate Dean Monte Reinders Tanda McMillin David Sullivan Keith Harper Patty Charnas Tracie Bick Erin Lundgren Lauralee Keisel Philip Hunsucker Veronica Shaw Greg Brotherton Leanne Dotson Philip Morley Vicki Kirkpatrick James Kennedy Renee Talley Rose Ann Carroll Willie Bence Also Present: Aleta Baker Order of Business Meeting called to order by Mark at 8:30 a.m. Request for additional agenda items/approve agenda (Mark) Mark added Supplements Budget Request, Total Compensation Study, Update on Economic Outlook Approval of the February 27, 2019 minutes (Mark) 1st Judy, 2nd Joe. Unanimously Approved Reports Expense Reports (Judy)  February 2019, General Fund Departments reported total expense of 18.38% compared to 17.69% in 2018 and 17.61 in 2017. Judy highlighted a few departments that exceeded the YTD percentage of 16.67%.  February 2019, Other funds reported total expense of 12.79% compared to 13.59% in 2018 and 13.51% in 2017. Judy highlighted a couple of departments that were over and provided explanation. Revenue Reports (Stacie)  General Fund at $2,310,622 – 11.8% of the 2019 budget which is typical for the beginning of the year. Property tax collection has ramped up and is on track. DNR Timber is up from this time last year.  Other Funds at $4,645,829 – 14.4% of the 2019 Budget which is typical for this time of year. Page 2 of 3 Budget Committee Meeting Minutes  General Fund Cash Balance - $4,464,746 at the end of February which includes the $2.9 million budgeted and required reserve. The reserve by resolution is 10% of General Fund Budgeted expenditures, and the revenue stabilization reserve is a formula that after year-end is calculated at $2,037,782. Reserve for one-time expenditures is deleted from the report since it is fluid and not established by resolution.  General Sales Tax Receipts - $409,218, which includes $94,690 for Special Purpose in February 2019. Sales tax is 9.96% over budget for 2019 YTD, and Special Purpose is 5.78% over. Cumulatively they’re 9% over budget for the year.  REET Receipts - $51,891 in February which is down 20% from this month last year and 17.7% over budget for the month. Sales from January were strong and the year to date amount is 30% over budget. We had one sale atone million in Brinnon and four sales between $500,000 and one million including three in Port Ludlow and one in Kala Point.  Hotel/Motel Lodging Tax - $41,186 is February which is 16.8% under budget for the month and less than the amount collected this month last year. Like REET receipts, Hotel/Motel was strong in January and bring the year to date revenue to 1.2% over budget. Excess Reserve Jeff asked if some of the excess reserve could be used to help with increased funding for the Total Compensation Study. Philip M responded that when we enter the biennial budget process we would look at whether there is money for additional increases. Legislation/State Budgets Jeff indicated that the House budget increases REET in increments based on value and use. All additional funding would go to the State. Assessors are expressing their concerns about the complexity of the budget proposal. Budget Supplementals (Mark) Mark did some analysis in relation to the Total Compensation Study and the desire for increases. Mark reviewed supplemental requests in past years and stated that there are multiple supplemental requests that occur every year asking for supplemental General Fund Appropriations beyond what is originally budgeted. Total requests have been higher than the historical past. Commissioner Sullivan said that Commissioners have to look at balancing increases against projecting the future and determining how much risk should be taken. Philip M. said that recently our supplementals have been higher than the 10 year average and he further indicated that we need to be very tight with supplementals. Washington Counties Risk Pool (Philip M.) Philip attended the WCRP Meeting where he was elected to the Executive Board. He provided budget committee members with updates from the meeting. Highlights include:  Forecasting: While things are good currently, a number of economic factors seem to be flattening.  Trends in non-farm jobs are going down  Unemployment rate is low, but underemployment is higher  Retail sales starting to flatten Page 3 of 3 Budget Committee Meeting Minutes  Industrial production is trending down  Housing starts are down and prices are starting to fall  3-month treasury notes are higher than longer term notes which, in the past, has been a predictor of recession within the next 20 months.  The Fed has indicated they will not raise interest rates for the balance of the year Liability Insurance  Reinsurers don’t like what they are seeing in Oregon, Washington and California o They now require the Risk Pool to cover the first $1 million rather than the $100,000 previously required. o The Risk Pool has $20 million in reserves to cover claims which, in the past, has been adequate, but it is definitely not adequate for covering the first $1 million o With reinsurance costs going up, the Risk Pool will probably need up to $40 million in reserves that member counties will have to come up with. They will be looking at our $25,000 deductible amount and it may need to be increased. o Public records claims are not covered so the member counties pay the full amount. o The increase is likely to be 10% - 15% on top of last year’s 20%. Total Compensation Study (Erin) Erin and Philip updated the Committee on the latest proposal to UFCW. The County is looking to adjust the exempt positions with the May paycheck. Biennial Budget (Mark) Mark stated that the BOCC approved the County’s move to a biennial budgeting process. Mark, Rose Ann, and Philip are putting the budget calendar and guidelines together. Motion to Adjourn (Mark) 1st Ruth, 2nd Mark, Unanimously Approved. The meeting adjourned at 9:45. Next Meetings are April 24, 2019 and May 29, 2019. Meetings are scheduled for the last Wednesday of each month except for the month of December.