HomeMy WebLinkAbout072219_ra04 JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley,County Administrato
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FROM: Mark McCauley,Central S_eprice§Director
DATE: July 22,2019
RE: Resolution Updating County Fund Working Capital Reserves
STATEMENT OF ISSUE:
There is a need to update the list of working capital reserve recommendations for county funds.
ANALYSIS:
Since the approval of Resolution 59-15 three county funds have been eliminated and two new
funds have been created. This and a desire to further improve the fiscal strength of the general
fund requires that the list of county fund working capital reserve recommendations be updated.
Fund 109 was created by moving the Noxious Weed program from Fund 108—WSU Extension.
Because Fund 108 has a 10%recommended reserve we are recommending Fund 109 also have a
10%reserve. Fund 149 was created by moving all homelessness funds out of Fund 148. Because
Fund 148 has a 10%recommended reserve we are recommending Fund 149 also have a 10%
reserve.
We are recommending the working capital reserve for the general fund be increased from 10%to
15%to improve the general fund's ability to weather the next recession. By separate action we
also recommended that the Revenue Stabilization Reserve be eliminated to be replaced by the
5% increase in the working capital reserve.
FISCAL IMPACT:
This request increases the recommended county working capital reserve by 50%. Other than that,
it has no fiscal impact.
RECOMMENDATION:
That the Board of County Commissioners approve this request and the attached proposed
resolution.
ArA"D
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clip ►,i e i, Count Admin ,trator Date
JEFFERSON COUNTY
STATE OF WASHINGTON
IN THE MATTER OF UPDATING THE WORKING }
CAPITAL RESERVE RECOMMENDATION } RESOLUTION NO.
FOR EACH COUNTY FUND }
WHEREAS, it is critical to the adequate financial management of county funds to clearly define the
working capital reserves recommended for each county fund at the end of each fiscal year; and
WHEREAS, proper working capital reserves enhance the stability of county programs and services
from one year to the next, and are also intended to accommodate temporary cash flow needs for all county
funds; and
WHEREAS, Resolution 59-15 approved in 2015 stipulated the reserves of all county funds; and
WHEREAS, three county funds have since been eliminated and two new funds have been established;
and
WHEREAS, as the current economic expansion is ten years old which is several years past when a
recession should have become due; and
WHEREAS, to weather the next recession, which is surely on the horizon, it is recommended that the
working capital reserve for the general fund be increased from 10%to 15%; and
NOW, THEREFORE, BE IT RESOLVED that the Jefferson County Board of Commissioners hereby
rescinds and replaces Resolution 59-15 with this resolution, including the "List of Reserve Recommendations
—All Funds," attached hereto and incorporated herein; and
BE IT FURTHER RESOLVED, that where both percentage and dollar reserve recommendations are
listed for a fund,the larger of the two shall be the recommended reserve; and
BE IT FURTHER RESOLVED,that the Board of Commissioners encourages Department Heads and
Elected officials to build additional reserves above the recommended level, when possible, especially when
economic forecasts indicate additional reserves might be necessary; and
BE IT FURTHER RESOLVED, that the reserve for each fund is intended to be measured at, and should
be met at,the end of the fiscal year, allowing reserves to be used for temporary cash flow during the budget
year; and
BE IT FURTHER RESOLVED,that the Board of Commissioners hereby directs the Department Heads
and Elected officials to consider the reserve recommendations as they prepare their budgets during the
biennial budget preparation process,the preparation of supplemental budget requests and the mid-biennium
review and modification; and
BE IT FURTHER RESOLVED, that the Board of Commissioners hereby directs the County
Administrator to consider the reserve recommendations in preparing a county budget, supplemental budget
requests and the mid-biennium review and modification.
APPROVED this day of , 2018.
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
SEAL:
Kate Dean, Chair
ATTEST:
David Sullivan, Member
Carolyn Gallaway,
Deputy Clerk of the Board Greg Brotherton, Member
JEFFERSON COUNTY-List of Reserve Recommendations-All Funds
revised 7-17-19
Fund % Minimum Description
reserve
001-GENERAL FUND 15% 15%of Total Spending-10%for routine short-term cyclical cash flow needs
and 5%for longer term revenue stabilization
105-AUDITOR'S O&M 10% 10%of Total Spending,excluding capital
106-COURTHOUSE FACILITATOR N/A None Required
107-BOATING SAFETY PROGRAM 10% 10,000 10%of Total Spending,or$10,000 whichever is larger,excluding capital
108-COOPERATIVE EXT.PROGRAMS 10% 32,000 10%of Total Spending,or$32,000,whichever is larger
109-NOXIOUS WEED CONTROL 10% 10%of total spending
113-4-H AFTER SCHOOL 10% 10,000 10%of Total Spending,or$10,000,whichever is larger
114-ECONOMIC DEVELOPMENT N/A None Required
119-JEFFCOM BOND FUND 5% 5%of Debt Service Expense
120-CRIME VICTIMS SERVICES 10% 10%of Total Spending
123-JEFF CO GRANT MANAGEMENT FUND 10% 34,000 10%of Total Spending,or$34,000,whichever is larger
125-HOTEL-MOTEL 25% 25%of Total Revenue
126-H&HS SITE ABATEMENT N/A None Required
127-PUBLIC HEALTH N/A 253,981 Minimum recommended reserve is 253,981
128-WATER QUALITY 10% 171,000 10%of Total Spending,or$171,000,whichever is larger
130-MENTAL HEALTH N/A Pass Through Fund only
131-CHEMICAL DEPEND/MENTAL HEALTH 10% 10%of Total Revenues
135-JEFFERSON COUNTY DRUG FUND 10% 10%of Total Spending
136-SHERIFF DRUG INVESTIGATION 10% 10%of Total Spending
140-LAW LIBRARY 10% 10%of Total Spending,Excluding Capital
141-TRIAL COURT IMPROVEMENT 10% 10%of Total Spending
143-COMMUNITY DEVELOPMENT 10% 153,000 10%of Total Spending,or$153,000,whichever is larger
147-FEDERAL FOREST TITLE III N/A None Required
148-JEFF CO AFFORDABLE HOUSING 10% 10%of Total Spending
149-HOMELESS HOUSING FUND 10% 10%of Total Spending
150-TREASURER'S O&M N/A None Required(RCW84.56020(08)
151-REET TECHNOLOGY FUND N/A None Required
155-VETERANS RELIEF 10% 10%of Total Spending
160-WATER POLLUTION CNTRL LOAN 10% 67,000 10%of Total Spending,or$67,000,whichever is larger
FUND
174-PARKS AND RECREATION 10% 64,000 10%of Total Spending,or$64,000,whichever is larger
175-COUNTY PARKS IMPROVEMENT N/A Capital projects only;Fund requires no working capital
FUND
178-POST HARVEST TIMBER MGMT RESV N/A Special Projects only,Based on prefunding expenses
180-COUNTY ROADS 25% 25%of Operating Expenses,excluding capital
181-EMERGENCY ROAD RESERVE N/A Emergency Projects only,based on prefunding
183-FACILITIES MANAGEMENT 10% 66,000 10%of Total Spending,or$66,000,whichever is larger
185-FLOOD/STORM WATER N/A Capital projects only;Fund requires no working capital
MANAGEMENT
186-BRINNON FLOOD CONTROL SUB- N/A Capital projects only;Fund requires no working capital
ZONE
187-QUILCENE FLOOD CONTROL SUB- N/A Capital projects only;Fund requires no working capital
ZONE
301-CONSTRUCTION&RENOVATION N/A 10%of Total Spending,excluding capital
302-COUNTY CAPITAL IMPROVEMENT 50% 50%of Annual Debt Service expense
306-PUBLIC INFRASTRUCTURE Varies Unpaid portion of approved grants
308-CONSERVATION FUTURES TAX 10% 10%of Total Spending,excluding capital
401-SOLID WASTE 10% 10%of Total Spending
402-SOLID WASTE POST CLOSURE N/A Based on prefunding post-closure expenses
403-SOLID WASTE EQUIPMENT RESERVE N/A Capital projects only;Fund requires no working capital
404-YARD WASTE EDUCATION FUND N/A Prefunded expenses
405-TRI-AREA SEWER FUND 10% 10%of Total Spending,excluding capital
501-EQUIPMENT RENTAL&REVOLVING 25% 25%of 12/31 Accumulated Depreciation for Equipment
502-RISK MANAGEMENT RESERVE N/A 216,000 10%of Total Spending,or$216,000,whichever is larger
503-JC UNEMPLOYMENT RESERVE N/A None Required
504-INDUSTRIAL INSURANCE RESERVE N/A None Required
505-EMPLOYEE BENEFIT RESERVE N/A 125,000 10%of Total Spending,or$125,000,whichever is larger
506-INFORMATION SERVICES 25% 25%of 12/31 Accumulated Depreciation for Equipment