HomeMy WebLinkAbout050420_ra01 Regular Agenda
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, County Administrator
Mark McCauley, Central Services Director
DATE: May 4,2020
RE: Resolution Establishing A Budget Policy for 2020-2021 Supplemental Budget
Requests and For the Mid-Biennium Review and Modification.
STATEMENT OF ISSUE: The Board of County Commissioners (BoCC)will consider
adopting a Resolution establishing a budget policy for 2020-2021 supplemental budget requests
and for the mid-biennium review and modification. The proposed Resolution prohibit budget
expenditure enhancements, except enhancements accompanied by offsetting revenue,those
which are non-discretionary, or as otherwise approved by the Commissioners
ANALYSIS: State statute (RCW 36.40) mandates that the County have a balanced budget. The
COVID-19 pandemic has had an immediate and profound impact on the national, state, and local
economies, and it is anticipated that the County's revenues will therefore not meet existing
budgeted expenditures, not to mention the extraordinary demands and expenses to respond to and
recover from the pandemic. Moreover, the COVID-19 pandemic has placed extra demands on
County services to the public
In order to provide for the County's financial future,preserve services to the public through a
recession, minimize impacts on staff -- the County's most valuable asset-- and to make budget
adjustments necessary to deal with the revenue shortfalls, it is necessary to impose a freeze on
budget expenditure enhancements that are discretionary or that use fund balance rather than new
revenue, whether requested during a 2020-2021 quarterly budget cycle or during the mid-
biennium review and modification. Fund balance will be needed to sustain existing public
services and to retain staff, rather than to pay for new expenditure enhancements.
FISCAL IMPACT: In recent years quarterly supplemental budget expenditure requests and
new year budget enhancements have cost the General Fund an average of approximately $1.2
million per year. Before any supplementals or enhancements, the COVID-19 pandemic and
economic recession is projected to create approximately a$965,000 revenue shortfall in 2020,
and a$1,265,000 shortfall in 2021,just to sustain existing services and retain staff. Thus this
freeze on expenditure enhancements is necessary.
RECOMMENDATION: Adopt the proposed Resolution Establishing A Budget Policy for
2020-2021 Supplemental Budget Requests and For the Mid-Biennium Review and Modification.
nviniTE BY: .
Philip bor , County •• m . or Date
STATE OF WASHINGTON
County of Jefferson
In The Matter of Establishing a Budget Policy }
for 2020-2021 Supplemental Budget Requests } RESOLUTION NO.
and for the Mid-Biennium Review and Modification }
WHEREAS, RCW 36.40 mandates that the County have a balanced budget; and
WHEREAS, the COVID-19 pandemic has had an immediate and profound impact on the
national, state, and local economies, and it is anticipated that the County's revenues will therefore not
meet budgeted expenditures and extraordinary demands from the pandemic; and
WHEREAS, the County's response during the COVID-19 pandemic has placed extra demands
on County services to the public; and the recovery phase after the COVID-19 pandemic has slowed will
continue to place extra demands on County services, but revenues to fund all County services will
continue to be at reduced levels; and
WHEREAS,the County Commissioners and all Elected Officials and appointed Department
Heads of the Jefferson County government are working to provide for the County's financial future,
preserve services to the public, minimize impacts on staff as the County's most valuable asset, and to
make budget adjustments necessary to deal with the revenue shortfalls; and,
WHEREAS,the pandemic and resulting recession will substantially reduce revenues and
decrease or wholly limit the County's ability to fund discretionary expenditure enhancements; and,
WHEREAS, some budget capacity must be available to fund non-discretionary increases; and
WHEREAS, the Board of County Commissioners finds that it is in the best interest of the
County to immediately impose a freeze on budget expenditure enhancements that are discretionary or
that use fund balance rather than new revenue, whether requested during a 2020-2021 quarterly budget
cycle or during the mid-biennium review and modification;
NOW, THEREFORE,BE IT RESOLVED by the County Commissioners for Jefferson County
that no budget enhancement requests will be entertained except enhancements accompanied by
offsetting revenue, those which are non-discretionary, or as otherwise approved by the Commissioners.
This Resolution shall remain in effect through the balance of the 2020-2021 County Budget Biennium,
unless otherwise terminated or extended by separate Resolution of the Board of Commissioners.
APPROVED AND SIGNED this day of , 2020.
SEAL: JEFFERSON COUNTY
BOARD OF COMMISSIONERS
Greg Brotherton, Chair
ATTEST:
Kate Dean, Member
Carolyn Gallaway
Deputy Clerk of the Board David Sullivan, Member