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STATE OF WASHINGTON
County of Jefferson
In the Matter of a Declaration of a }
Financial Emergency in the Jefferson}
County General Fund }
RESOLUTION NO, 78-08
WHEREAS, the citizens of Jefferson County depend on County programs and services to
conduct their lives and their businesses; and
WHEREAS, the County confronts an unanticipated economic downturn that has
depressed the amounts garnered through sales tax, Real Estate Excise Tax, fees, grants and other
revenue streams to the County's General Fund; and
WHEREAS, the cost of providing County programs and services at existing levels
continue to rise at the approximate rate of inflation; and
WHEREAS, unencumbered excess fund balance in the General Fund is what has been
relied upon in the past few years to help carry the County through a lean economy; and
WHEREAS, unanticipated revenue shortfalls and County expenditures in 2008 are now
estimated to total more than $1 million, resulting in emergency appropriations drawn from the
General Fund, and depleting the amount of excess fund balance for 2009 and beyond; and
WHEREAS, notwithstanding prior efforts to economize by holding open vacant positions
and reducing other expenditures, depressed revenue has impacted the 2008 budget in some
County Departments to the point that an unanticipated reduction in force of six positions and a
reduction in hours for staff were implemented on November 17, 2008, effective December I,
2008; and
WHEREAS, in the past two months, national, state and local economic indicators have
continued to substantially worsen; as reflected by Congress passing and the President signing the
"Emergency Economic Stabilization Act of2008" on October 3, 2008; and
WHEREAS, locally, the worsening economy deepens the public's reliance on important
County government programs and services, while further jeopardizing future County revenues;
and
WHEREAS, the County now faces the economic necessity of examining further cutbacks
to vital public programs and services; and
WHEREAS, since 1999, Jefferson County has chosen not to levy the highest lawful levy
on property taxes, saving tax payers money during that time, and creating unlevied portions of
the maximum property tax levy (known as Banked Capacity) for future years; and
RESOLUTION NO. 78-08
Page: 2
WHEREAS, the County Assessor has determined the County and Current Expense Levy
(General Fund) Banked Capacity for 2009 taxes to be $473,171.68; and
WHEREAS, at the November 17,2008 regular meeting of the Board of County
Commissioners, the County Administrator presented a memo and budget analysis entitled
"Update on 2009 Budget Preparation" reflecting updated revenue and expenditure forecasts and
projecting that if the County does not use Banked Capacity, an additional $350,000 in program
and service cuts would be necessary in 2009, and that further cuts would be necessary in
subsequent years; and
WHEREAS, the Board of County Commissioners has the authority pursuant to state
statute and WAC 458-19-065 to levy any or all of the prior year's unlevied portions of the
maximum property tax levy (known as Banked Capacity) when setting the ad valorem property
tax levies; and
WHEREAS, Jefferson County Ordinance No. 18-1220-04 establishes criteria for
considering the use of Banked Capacity, including the provision that the Commissioners may by
simple majority vote to declare an emergency to exist by adopting a resolution at a regular public
meeting stating the specific nature of an emergency and the basis of determining the amount of
Banked Capacity that will be levied;
NOW, THEREFORE, BE IT RESOL VED, by the Board of Commissioners of Jefferson
County that as provided in Ordinance No. 18-1220-04 an economic emergency is hereby
declared to exist for the reasons previously stated in this Resolution, which requires the use of
$473,171.68 of the County and Current Expense Levy (General Fund) Banked Capacity based
upon the budget analysis described in this Resolution.
APPROVED AND ADOPTED this 24th day of November, 2008.
JEFFERSON COUNTY
BOARD OF \=OMMISSIONERS
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Phil John' ~, Chaiqn )
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Deputy Clerk ofthe Board
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO:
Board of Commissioners
Philip Morley, County Administrato~~-
Jack Westerman III, County Assessor v ~
FROM:
DATE:
November 24, 2008
RE:
Public Hearing on Setting 2009 Ad Valorem Tax Levies for Jefferson
County for Levy in 2008 and Collection in 2009
STATEMENT OF ISSUE:
A Public Hearing is scheduled at 10 AM on November 24 to take public comment on setting
property tax levies for Jefferson County in 2008 for Collection in 2009. This covers levies for
the general fund, roads, and conservation futures.
ANALYSIS:
On November 17, 2008, the Board of County Commissioners received a budget analysis in a
memo and briefing entitled "Update on 2009 Budget Preparation" reflecting updated revenue and
expenditure forecasts since the 2009 Preliminary Budget was originally presented on October 6.
The analysis, which focused on the General Fund, reflects unanticipated revenue shortfalls and
additional County expenditures in 2008, now estimated to total over $1 million, resulting in
emergency appropriations drawn from the General Fund, and depleting the amount of excess
fund balance available for 2009 and beyond. The County will use the excess fund balance to
help maintain existing programs and services for the next several years until the region's
economy recovers. The analysis presented on November 17 also reflects the worsening
national, state and local economies, as well as normal cost inflation for existing County programs
and services in 2009 - 2014. It concludes that significant program and service cuts will be
required each year starting in 2009 through 2013 to match expenditures to revenues and retain
healthy fund reserves in the General Fund. The analysis showed that if the County does not use
Banked Capacity in 2009, an additional $350,000 in program and service cuts would be
necessary in 2009, and that further cuts would be necessary in subsequent years.
Attached to this Agenda Request are recommended resolutions establishing ad valorem tax levies
for the 2009 County General Fund levy, the 2009 County Road levy, and the 2009 Conservation
Futures Tax levy.
The 2009 proposed Road levy amount and the proposed Conservation Futures Tax levy amount
both represent a one percent (1 %) increase from the levy amount in 2008.
The 2009 proposed General Fund levy amount includes the one percent increase, plus the use of
Banked Capacity of$473,171.68.
Jefferson County Ordinance No. 18-1220-04 establishes criteria for considering the use of
Banked Capacity, including the provision that the Commissioners may vote by simple majority
to declare an emergency by adopting a resolution at a regular public meeting stating the specific
nature of an emergency and the basis of determining the amount of Banked Capacity that will be
levied. A proposed resolution recognizing the County's current financial emergency is attached.
FISCAL IMPACT:
As proposed, the amounts that would be levied in 2009 are as follows:
Levv 2009 Amount
2009 County General Fund Levy:__________________.____._______$6,675,520.27
2009 County Road Levy:_________.__________.___.____.______.........$3,514,035.67
2009 County Conservation Futures Tax Levy:___________$ 193,577.83
Increase from 2008
$534,581.07
$ 34,792.43
$ 1,916.61
If the Board of County Commissioners reduces the proposed levy amounts, commensurate
program and service cuts would need to be made or additional depletion of fund balance made in
the 2009 budget.
RECOMMENDATION:
After hearing public testimony and upon deliberation, the Board of County Commissioners may
adopt 2009 levies as proposed, or may make amendments to any of the amounts prior to
adoption. Staff recommends adopting the 2009 levy amounts as proposed.
Staff does not recommend using Banked Capacity in 2009 for the County Road Levy or the
Conservation Futures Tax Levy.
Staff does recommend using Banked Capacity for the 2009 County General Fund. If the Board
of County Commissioners wishes to use Banked Capacity for the General Fund, it must first
adopt a resolution pursuant to Jefferson County Ordinance No. 18-1220-04, declaring an
emergency and the basis of determining the amount of Banked Capacity that will be levied. The
Board of County Commissioners may adopt the proposed emergency resolution as is, or with
amendments. If the Board determines it will not use Banked Capacity, it is not necessary to
adopt a resolution declaring an emergency.
Pursuant to state law, the Board of County Commissioners must take action to set the 2009 levy
amounts and notify the County Assessor no later than November 30, 2008.
REVIEWED BY:
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Date