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STATE OF WASHINGTON
County of Jefferson
In the Matter of an Increase }
in the Jefferson County General Fund}
Levy for 2009 Taxes }
RESOLUTION NO. 79-08
WHEREAS, the Board of County Commissioners have properly given notice of
the public hearings that were held the week of October 6, 2008 to consider the County's Budget
for the 2009 calendar year, and the public hearing held regarding setting ad valorem tax levies on
November 24,2008, pursuant to RCW 84.55.120; and
WHEREAS, the Board of County Commissioners, after hearing, and after duly
considering all relevant evidence and testimony presented, has determined that the County
General Fund requires an increase in property tax revenue from the previous year, in addition to
the increase resulting from the addition of new construction and improvements to property and
any increase in the value of state-assessed property, in order to discharge the expected expenses
and obligations ofthe County General Fund and in its best interest; and
NOW, THEREFORE, BE IT RESOL VED, by the Board of Commissioners of
Jefferson County that an increase in the regular property tax levy, in addition to any amount
resulting from the addition of new construction and improvements to property and any increase
in the value of state-assessed property, is hereby authorized for the 2009 County General Fund
levy in the amount of $6,675,520.27, which is a percentage increase of 8.7052 percent from the
prevIOus year.
APPROVEDANDADOPTEDthis 24thdayof November
,2008.
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JEFFERSON COUNTY
~ ~OMMISS[ONERS
Pill Jo"jra:;
Davi~~,' /ember
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ATTEST:; , ,
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Deputy Clerk ofthe Board
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JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO:
Board of Commissioners
Philip Morley, County Administrator ~~~.~----
Jack Westerman III, County Assess~~
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 ifthe 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:uu.___..uuuuuuuuuuu$6,675,520.27
2009 County Road Levy:.______....u______u___u___uuuuu.......$3,514,035 .67
2009 County Conservation Futures Tax Levy:___.......$ 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. Ifthe 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
Statement to be read a Jefferson County Board of County
Commissioners meeting November 24,2008
Subject; Banked Capacity for 2009 budget
I encourage the board to take banked capacity for the general fund
for 2009. My reasons are three fold;
1. Using banked capacity in lieu of substantially reducing excess
funds provides a larger investment amount in our portfolio;
garnering more interest revenue
2. Using banked capacity preserves the cash reserves which was a
major point in our recent Standard & Poor's upgrade from A to
AA-. That higher rating will yield lower interest rates on
upcoming debt (tri-area sewer)
3. The legislature made it clear that counties have to use the tools
already provided before we look to the state for additional
support. Banked capacity is one of those tools. Of the 27
counties responding to my question about holding banked
capacity, 22 have no banked capacity. The five counties that
are holding banked capacity range from $30,000 to $2,100,000
Respectfully submitted, Judi Morris, Treasurer