HomeMy WebLinkAbout072219_ra05 JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley,County Administra oir
FROM: Mark McCauley,Central Servic-A Director
TI1}/4
DATE: July 22,2019
RE: Resolution Rescinding Resolution 38-10 which established a Revenue Stabilization
Reserve Using Excess Sales Tax Revenues
STATEMENT OF ISSUE:
In reaction to the great recession of 2008-2009 the county created a Revenue Stabilization
Reserve into which excess sales tax revenues were to be set aside to dampen the effects of future
economic downturns or recessions. Staff is recommending that this resolution be rescinded and
replaced by a simpler and more effective method of husbanding resources in anticipation of the
next economic downturn or recession.
ANALYSIS:
In the almost nine years since this resolution was approved the Revenue Stabilization Reserve
has grown to $868,000. When General Fund taxes and other Treasurer's revenues are at or above
budgeted amounts sixty percent of excess sales tax revenues is set aside in the Revenue
Stabilization Reserve. When the Revenue Stabilization Reserve grows to be more than 5%of
budgeted expenditures in one year, property taxes are to be reduced by an equal amount in the
subsequent year. The amount required to cross the 5%threshold increases every year as the
expenditure budget increases every year and thus far the 5%threshold has never been reached or
surpassed.
Since the goal of the Revenue Stabilization Reserve was ultimately to create a 5%to help the
general fund cope with an economic downturn or recession and there are simpler methods to
accomplish that task, staff recommends that the Board of Commissioners rescind Resolution 38-
10 and direct staff to develop a simpler alternative to bring to the Board.
FISCAL IMPACT:
This request has no fiscal impact.
RECOMMENDATION:
That the Board of County Commissioners approve this request and the attached proposed
resolution.
RE EDS'
77(,1
clip M n rle, , C.un e ' istrator Date
JEFFERSON COUNTY
STATE OF WASHINGTON
IN THE MATTER OF RESCINDING }
RESOLUTION 38-10 WHICH ESTABLISHED } RESOLUTION NO.
A REVENUE STABILIZATION RESERVE }
WHEREAS, Jefferson County on September 27, 2010, through Resolution 38-10, created a Revenue
Stabilization Reserve,the purpose of which was to add additional general fund reserves using excess sales tax
revenues to help cushion the impact of any future economic downturn and to give the county some time to
make appropriate financial decisions when that downturn comes; and
WHEREAS, while the Revenue Stabilization Reserve has grown over the years, it has not in the years
since its establishment hit the 5%threshold that would trigger the required property tax rebate; and
WHEREAS, implementing the Revenue Stabilization Reserve requires staff time to maintain detailed
spreadsheets, which work could easily be dispensed with; and
WHEREAS, other, more simple and effective methods are available to improve the county's ability to
weather the next financial downturn; and
NOW THEREFORE, BE IT RESOLVED that the Jefferson County Board of Commissioners hereby
rescinds Resolution 38-10 and directs staff to bring to this Board of County Commissioners a simpler
alternative to the rescinded Revenue Stabilization Reserve:
APPROVED this day of , 2019.
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
SEAL:
Kate Dean, Chair
ATTEST:
David Sullivan, Member
Carolyn Gallaway,
Deputy Clerk of the Board Greg Brotherton, Member