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HomeMy WebLinkAboutM101209 ~~ tO~ ~~~~, ~A'9 06;\ CS(/fJ ~ ~ \ =- ..... ....-<\ "'.a) \ \ " / \~ -!i':/ .~El (j'to/ ~"N~ District No, 1 Commissioner: Phil Johnson District No.2 Commissioner: David W. Sullivan District No.3 Commissioner: John Anstin County Administrator: Philip Morley Clerk of the Board: Lorna Delaney MINUTES Week of October 12, 2009 The meeting was called to order by Chairman David Sullivan at the appointed time in the presence of Commissioner Phil Johnson and Commissioner John Austin. PUBLIC COMMENT PERIOD: The following comments were made by citizens in attendance at the meeting: A citizen commented on the need for additional security at the Courthouse and the need for the County to adequately fund Safe Harbor Substance Abuse Counseling Center; a citizen feels there needs to be a wise community thought process established to bring the citizenry together to deal with the difficult issues facing the County without anger; another citizen commented that Jefferson County needs to do more to provide an open government especially since the Risk Pool no longer covers Public Records Act violations; a citizen suggested Jefferson County conduct water testing on the shorelines to determine if wildlife is a major contributor to fecal coliform in the Hood Canal and other places; a citizen commented on the Port Gamble Tribe's response to a man who was hunting legally on private property and stated that there is a problem with operational jurisdictions and authority; a citizen agrees there needs to be better communication to discuss issues openly and to prevent costly lawsuits; three citizens commented on the issues of open government and the need for accessibility; a citizen urged the Board to take a reasonable approach in dealing with the issue of Courthouse security. APPROVAL AND ADOPTION OF THE CONSENT A GENDA: Commissioner Johnson moved to approve the Consent Agenda as presented. Commissioner Austin seconded the motion which carried by a unanimous vote. 1. AGREEMENT No, GI000023 re: Olympic Oyster Project, Northwest Straits Project, Marine Resources Committee CZM310; Jefferson County WSU Extension; Port Townsend Marine Science Center 2. AGREEMENT re: Jeff Com Director Recruitment Services; Jefferson County Administrator; Prothman Company 3. Advisory Board Resignation; Jefferson County Tourism Coordinating Council (TCC) Port Hadlock/Tri ArealDiscovery Bay Representative; Crystal Hudson 4. Advisory Board Appointment; Jefferson County Tourism Coordinating Council (TCC), Port Hadlock/Tri ArealDiscovery Bay Representative; Chuck Russell 5. Payment of Jefferson County Vouchers/Warrants Dated October 7, 2009 Totaling $10,775.50 6. Payment of Jefferson County Payroll Warrants Dated October 5, 2009 Totaling $761,523.99 and A/P Warrants Done by Payroll Dated October 5, 2009 Totaling $572,552.43 Page 1 Commissioners Meeting Minutes: Week of October 12, 2009 iJ ~ COMMISSIONERS BRIEFING SESSION: The Commissioners and the County Administrator each reported as follows: Commissioner Austin: . Noted that the $5.00 State Parks donations were over 80% in Jefferson County Commissioner Sullivan: . He and a group of citizens from Jefferson County will be meeting with State Representative Lynn Kessler in Olympia on Tuesday to discuss funding support for the Tri Area Sewer System Project . Commented that a decision was rendered on the Public Records Act violation lawsuit filed by Joe D' Amico. The fine was set at $10.00 per day which is low and indicates that the Court did not see it as an egregious or willful decision of the County to withhold the information. He has always thought that this is about employee security and the affect on innocent citizens. Commissioner Johnson: . Commented on the County's Adopt-a-Park program and noted that volunteers have already taken over the management of East Beach Park and other volunteers are considering the management of North Beach Park and Memorial Field County Administrator Philip Morley: . Port Townsend Paper Corporation received a $2 million energy grant which leverages additional capital investment funding and helps to support our community . The economy of Jefferson County is doing better than most of our neighboring Counties. 2010 Budget Update and Planning to Implement I-I 033: County Administrator Philip Morley reported that on August 10, 2009 he updated the Board on the 2010 budget and provided a preliminary 5-year financial projection which showed a growing $1.9 Million annual gap in the General Fund between revenues and the cost to maintain current services. As of October, the amount of the gap is increased to $2.025 Million based on updated information and preliminary budget requests made by departments. The gap reflects the disparity between the State's current 1 % growth limit on revenues from property taxes, compared to 4% average inflation in the cost to provide existing services to a growing population. As a result our property tax loses 3% buying power per year. Making up the difference can only be done with new revenues or permanent program cuts. This is a structural funding problem for the County that was imposed by Initiative 747 and re-enacted by the State Legislature. In past years, extraordinary economic growth has masked this structural problem. This is no longer the case. Sales tax for 2010 is projected to be approximately 10% lower than in 2006 and inflation will worsen the problem. Low Real Estate Excise Tax (REET) revenue is impacting capital improvement projects and bond payments which are usually paid for by REET revenue are having to be partially paid from the General Fund. He reviewed charts showing the following: Revenues and Expenditures from 2004 and projecting through 2014; Property Taxes from 2002 to 2008; General Fund Basic Sales Tax; Real Estate Excise Tax from 2000 projected through 2010; and Costs for Mandated and Non-mandated Services compared to Revenues. Page 2 Commissioners Meeting Minutes: Week of October 12,2009 ~"'" iI":- .\. !;) Mandated services include Superior and District Courts, Juvenile Probation, Sheriff, Prosecutor, Public Defense, Assessor, Elections, Recording, Treasurer, Legislative and Executive functions, Planning, Zoning, Building Code, etc. Non-mandated services include youth services, W.S.U. Extension, Solid Waste Transfer/Disposal, Parks and Recreation and Animal Control. Due to the lack of revenue non-mandated services are being cut. Since his last update, Public Health has closed the Environmental Health office on Fridays and cut back Public Health Nurse support to many mothers of newborns and cut Family Planning clinics by one day per week. In addition, County Parks and Recreation announced in September plans to close 4 parks and cut maintenance to 6 parks in 2009 and 6 more parks in 2010. Ifvoters pass Initiative 1033 (1-1033) in November, the budget will be even further impacted as it limits growth in County and City revenues deposited into their current expense funds (General Fund). General Fund revenue growth is limited to the rate of inflation (Implicit Price Deflator - IPD) and population growth. 1-1033 creates a "Lower Property Tax Account" to which revenues above the limit would be deposited to lower the next year assessment. It does allow for new voter-approved revenues outside the limit, however, it does not allow citizens to preserve services by shifting services out of the General Fund with new dedicated revenues. Some County/City General Fund revenues would also be excluded such as grants, State shared taxes, contracted service charges and possibly interest earnings which has yet to be determined. An analysis of Statewide impacts show that 1-1033 would lower General Fund revenues by the year 2015 as follows: - $5.9 Billion for Washington State government - $694 Million for Washington Counties - $2.1 Billion for Washington Cities The impact ofI-1033 will not be initially apparent because it is projected that the economy will take several years to recover. Specifically for Jefferson County, it is projected that there would be a budget shortfall of $2.575 Million by 2014. An additional $458,000 in cuts would need to made in 2014 and additional expenditure reductions in the amount of $158,000 would need to be made each year after that or new revenues would need to be approved by voters. He reviewed a spreadsheet showing those projected calculations as well as various scenarios of budget cuts to truly show the additional impact ofthis initiative. Jefferson County's structural funding problem due to the 1 % limit on property tax revenues will be compounded by 1-1033 as it extends new limits to other General Fund revenues. 1-1033 would index County General Fund revenues to 2009 levels, a year when a historic economic recession has dramatically restricted revenues. Sales tax revenues are 10% lower than three years ago. 1-1033 will not allow the County to recover those revenues as the economy and sales taxes recover. Since 2008 the County has been drawing on reserve funding which was set aside during better economic times and is now being used to cover shortages during this economic downturn. 1-1033 undercuts Jefferson County's ability to rebuild reserves during "good" economic times and leaves no cushion for the next recession. The County's revenue base would repeatedly and permanently shrink during future recessions, because each recession sets a new smaller revenue base. Government costs typically rise faster than the US IPD. This is especially true of some programs like public safety and infrastructure. Government services are not driven strictly by inflation or population, but also other factors such as crime rates, pandemics, Page 3 Commissioners Meeting Minutes: Week of October 12,2009 ,1it\, ~~ "'If".;,'" natural disasters and environmental crises. I-10331irnits the County's ability to deal with those unanticipated costs. County Administrator Philip Morley will use the 1-1033 analysis to prepare a target for additional budget cuts that would be necessary ifI-I033 is approved and he will hold meetings with Department Heads and Elected Officials to review potential balancing strategies and continue a collaborative approach to meet budget reduction targets. In November he will submit a recommendation for a balanced budget. The Board will hold a hearing on the 2010 Budget on Monday, December 7,2009. Assessor Jack Westerman noted that if interest is included under this initiative then the financial impact will be even greater. Not included in the calculation presented today is the potential additional reduction in property tax revenue that can double the financial impact. It is not known which revenues will be affected so he has been unable to take a position on this initiative. It will however, have a significant financial impact on the County and while he commends the presentation given by Mr. Morley, the impact ofI-I033 may be dramatically understated. County Administrator Philip Morley agreed with the Assessor. Discussion ensued regarding projected revenues, budget cuts and the timeline for reducing property taxes. Ballots will be mailed on Wednesday and because there has been very little discussion of this initiative on a statewide basis, it is likely that voters will approve it. County Administrator Philip Morley feels obligated to inform the public of the potential impacts so that they can make an informed policy choice and he will make himself available to the news media for assistance with any coverage. Discussion of Possible Membership in the Evergreen Group and Natural Resources Issues: County Administrator Philip Morley introduced Robert Weidner with the Forest Counties of Washington State who explained that he was hired by Skagit County eight years ago to represent them on issues relating to Payment in Lieu of Taxes (PILT) funding. He also worked on flood control and salmon habitat restoration by coordinating agreements with State agencies. They were successful in working with the congressional delegation and other members throughout the country in getting PIL T funding increased and getting the first Secure Rural Schools (SRS) Authorization in 1999 that was extended for six years. In 2006 Skagit County representatives spoke to other counties in Washington State asking for their assistance in this effort. As a result, the Evergreen Forest County Group was established through which Mr. Weidner represents the member counties in Washington D.C. The Group was designed primarily to engage members of Congress and the administration outside of our region about the importance of the federal obligation to counties in the west. Mr. Weidner explained how the SRS funding was extended through 2011 and the PIL T funding was extended through 2012. The extension of this funding is even more beneficial to western counties during these tough economic times as it provides the only stable source of funding for the next couple of years. Senator Reed and the Washington Congressional Delegation worked hard to get the two programs combined legislatively by using the school component to get it passed in other regions of the country that do not directly benefit from these programs. As a result of combining the two programs the western states became Page 4 Commissioners Meeting Minutes: Week of October 12,2009 united. In the House of Representatives there are 125 representatives from the seventeen western states and only 34 representatives in the Senate. He has been lobbying in Washington D.C. for 27 years and sees that western delegations do not always agree so it is important to form coalitions with groups outside the west in order to get things done for the west. Because there are national forestlands in states located in the mid- west, northeast and the south that will also benefit from this program, the coalition was broadened beyond the west. The value of the Evergreen Group is having him coordinate with other groups and lobby for western county issues such as PILT and SRS funding. He represents counties in Utah, Nevada and Washington. The Evergreen Group is the branch in Washington state. Oregon and California also have similar groups. While he works closely with the Washington State Association of Counties (WSAC) on various issues, he does not believe the efforts of the two groups are duplicated because WSAC deals mostly with the State Legislature and the Evergreen Group works to help other delegates better understand the issues. The plan is to request a 10 year extension of the PILT and SRS funding on behalf of the counties which receive the funding. The Evergreen Group is asking for $7,500 from each county to participate in this effort which has already paid for itself many times over. His responsibility will be to keep the Board informed on his efforts and he will work on other issues as well. Discussion ensued regarding the potential affect 1-1033 may have on this funding and how lobbying for other issues would be handled. The Board will consider membership as they review the 2010 budget. APPROVAL OF MINUTES: Commissioner Austin moved to approve the minutes of September 8, 2009 as presented. Commissioner Johnson seconded the motion which carried by a unanimous vote. Commissioner Johnson moved to approve the minutes of September 14, 2009 as presented. Commissioner Austin seconded the motion which carried by a unanimous vote. COUNTY ADMINISTRA TOR'S BRIEFING SESSION: County Administrator Philip Morley reviewed the following with the Commissioners: . Discussion of Water Quality Grant Opportunities with Water Quality Program Manager Neil Harrington Schedule Coordination Budget Update Miscellaneous Topics Joint Growth Management Steering Committee Equestrian Events Center Status County's State Legislative Initiatives . . . Page 5 Commissioners Meeting Minutes: Week of October 12,2009 i~""'\ .~'"' "'";~l,\''' NOTICE OF ADJOURNMENT: Commissioner Johnson moved to adjourn the meeting at 3 :42 p.m. until the next regular Monday meeting at 9:00 a.m. or special meeting as properly noticed pursuant to RCW 42.30.080. Commissioner Austin seconded the motion which carried by a unanimous vote. .--- JEFFERSON COUNTY BOARD OF COMMISSIONERS MEETING ADJOURNED .:; \ I ;1\\ "..\11 SEAL: David *~ Page 6