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HomeMy WebLinkAbout07292020 Budget Committee Minutes Page 1 of 3 Budget Committee Meeting Minutes JEFFERSON COUNTY BUDGET COMMITTEE DRAFT MINUTES July 29, 2020 8:30 am Virtual GoTo Meeting Members: Aleta Baker Amanda Hamilton Andy Pernsteiner Anne Sears Barbara Carr Brenda Huntingford Brian Gleason Carol Palmer Cathy Taylor Cliff Moore David Sullivan Erin Lundgren Greg Brotherton James Kennedy Janet Holbrook Jeff Chapman Jodi Adams Joe Nole Judy Shepherd Kate Dean Keith Harper Lauralee Keisel Leanne Dotson Lori Bailey Lysa Phillis Mark McCauley Matt Tyler Mindy Walker Monte Reinders Noeme Riddle Patty Charnas Philip Hunsucker Philip Morley Renee Talley Rose Ann Carroll Ruth Gordon Sophie Nordstrom Stacie Prada Su Tipton Susan Parke Tanda McMillin Veronica Shaw Vicki Kirkpatrick Willie Bence Order of Business Meeting called to order by Mark at 8:30 a.m. Request for additional agenda items/approve agenda (Mark) Nothing added Call for approval of the February 26, 2020 Minutes (Mark) 1st Stacie, 2nd Joe, Unanimously Approved Reports Expense Reports (Rose Ann) • June 2020, General Fund Departments reported 48.46% (w/o Non-Dept.) compared to 47.71% in 2019 and 49.81 in 2018. Other funds are at 41.50% compared to 40.56% in 2019 and 38.97% in 2018. Judy highlighted Funds over YTD target of 50%. Revenue Reports (Stacie) • General Fund at $11,770,255 – 55.1% of the 2020 budget year-to-date, which is slightly less than last year. Property tax collections are on track. PILT came in above our budgeted amount, so we should adjust that along with other COVID revenue adjustments in future budget amendments. Private Harvest Tax is lower year to date than the last six years. Interest on delinquent taxes is up. This month we had $11,993 in rollback interest, which amounts to 1/3 of this month’s collections. Rollback interest is paid when a property is removed from the current use program, and it reflects back taxes and interest for 10 years based on current assessed value. Stacie added a new sheet showing general fund revenue charts showing 2015-2020 year-to-date detail and percentage of full year collections. 2020 shows as a percentage of our adopted budget. • Other Funds at $17,148,300– 47.5% of 2020 budget year-to-date. Notably, Parks & Rec was negative this month and reflects $870 in refunds for programs and facilities that could not be used due to the COVID stay at home order. • General Fund Cash Balance - $8,074,825 at the end of June, which includes the $3.392 million budgeted reserve. This is slightly less than the amount for this time last year. This reserve amount will adjust as we modify budgeted expenditures for the remainder of 2020. • General Sales Tax Receipts - $312,261, which includes $68,693 for Special Purpose in June Page 2 of 3 Budget Committee Meeting Minutes 2020. General & Optional Sales tax is down 7.4% from this month last year and 1.6% under this month’s budgeted amount. It is holding at 12% over budget for 2020 YTD due to a strong start for the year prior due to the pandemic and stay at home order. Special Purpose was down 11% from this time last year and 11.7% under this month’s budget. Cumulatively, they are 8.3% less than this month last year, 3.7% under budget for the month but 9.12% over for YTD. The updated charts show the revenue per month back to 2005, the split of the two types of sales tax with amounts year to date and full year. The full year amount reflects YTD Actuals plus budgeted amount for the rest of 2020. 2020 Budget has not been adjusted due to COVID-19 impacts. Due to the two-month timeframe for processing and distribution to counties, this month’s sales tax revenue reflects a full month of our county with the Stay Home, Stay Safe order. We saw the first impact with our revenues received in May. July might be similar and we can hope it goes up in August when we receive sales tax revenue from June. Thankfully, we had a very strong beginning for 2020. It helped Stacie to look at the dates of the proclamations to compare revenue and business activity. Heightened awareness occurred mid-March and most businesses shut down effective March 23. • REET Receipts - Fund 302 - $205,638 in June, which is almost twice as much as this month last year and 38% over budget for the month. Year-to-Date, REET Collections are almost 17% over budget and 20% over 2019 YTD. $49,800 of the local REET was from Pope and OPG sale where approximately 45,000 acres sold for $9.9 million. Two other sales were over $1 million, both single-family residences in Port Ludlow. There were 19 sales in unincorporated Jefferson County in May with selling prices between $500,000 and $1 million. Nationally there have been news articles about people considering moves out of urban cities to more rural areas, and that seems to hold true for Jefferson County right now. • Hotel/Motel Lodging Tax – Fund 125 - $742 in June and $208 of that was investment interest. This puts it 98% under budget for the month. Year-to-date it is 26.4% under budget and 32.8% Page 3 of 3 Budget Committee Meeting Minutes less than YTD in 2019. This is based on sales tax collected on sales two months prior. Stacie added charts like the one for Sales Tax to show the revenue YTD and Full Year. 2020 is comprised of YTD actuals plus the amount budgeted for the rest of the year. I anticipate Hotel/Motel to be near zero for at least another month. COVID Budget Cuts (Mark) Mark complimented the group, collectively reducing expenditures by over $200,000. Not all were ongoing cuts. Going forward, modifying the budget approved in 2019, it does not look like 2021 Budget will need to be reduced. However, this is subject to change. Patty informed members the current deadline for using CARES ACT Coronavirus Relief Funds (CRF) is October 31, 2020, but there is a possibility this date may be extended. BOCC issued budget guidance; hiring freeze and 2nd quarter budget supplemental requests. 2020 Budget Guidance – 50% needed to be ongoing and 50% one-time only. If you exceeded the target, you would get a credit in 2021. Mid-biennium review & modification (Mark) Munis Update (Mark) Financials we are about 80% complete with Phase 1. Will be loading Chart of Accounts and Vendors to Production for the remainder of July then process testing and adding in user role and workflow testing. End User training and final conversion will occur in November and December with “Go Live” in January. Phase 2 for Human Resources and Payroll just started, finishing the first round of consulting. Live date for Phase 2 moved to July 2021 due to COVID-19. Motion to Adjourn 9:25 a.m. (Mark) 1st Philip, 2nd Joe, Unanimously Approved Next meeting is August 26, 2020. Meetings are held the last Wednesday of each month except for the month of December.