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Home My WebLink About041 19JEFFERSON COUNTY STATE OF WASHINGTON IN THE MATTER OF UPDATING THE WORKING} CAPITAL RESERVE RECOMMENDATION } RESOLUTION NO. 4 _ 1 q 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 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; 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 `• Ll j BOA&D OF COMMISSIONERS SEAL: ,. r a Kto ,Cha' ATTEST: ' D 1 an, Mem er, Clerk of the Board e Member r JEFFERSON COUNTY - List of Reserve Recommendations - All Funds revised 7-17-19 Fund % Minimum reserve Description 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 II I 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 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS CONSENT AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrato _ FROM: Mark McCauley, Central Seryiees�birector 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. VI D d17� ilip e , Count Admin trator Date