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HomeMy WebLinkAboutM113009S ~1 co~ ~~~~ S1'4.~ 00.\ :ilf:; \ ~\ (..... ~ ~,><! \ I , \~ ~/ ~INct!3";/ District No.1 Commissioner: Phil Johnson District No.2 Commissioner: David W. Sullivan District No.3 Commissioner: John Austin County Administrator: Philip Morley Clerk of the Board: Lorna Delaney MINUTES Special Meeting Week of November 30, 2009 Chairman David Sullivan called the meeting to order at 11 :00 a.m. in the presence of Commissioner John Austin and Commissioner Phil Johnson. HEARING re: Setting the 2010 Ad Valorem Tax Levies for Jefferson County for Levy in 2009 and Collection in 2010: County Administrator Philip Morley thanked County Assessor Jack Westerman for being present to answer questions. He then opened a power point presentation and explained that this hearing is to take public testimony on the setting of levy amounts for collection in 2010 for the County Road Fund, General Fund and Conservation Futures levies and reviewed the following: County Road Levv: The Commissioners need to declare that a substantial need exists to allow the County to use the 1 % limit factor as provided by RCW in the Road Fund. Banked CaDacitv Road Fund: Since 1999 the County has not always assessed the full amount of property tax allowed which has saved roughly $6 million in the past 11 years for the Road Fund, General Fund and Conservation Futures Fund. State law allows the County to retain the ability to return to this legal limit in future years. Due to the recession the Commissioners voted to take banked capacity in the General Fund last year which was roughly $473,000. County Ordinance (No. 18-1220-04) requires that the Commissioners declare an emergency in order to use banked capacity for the Road Fund. Chairman Sullivan noted that these recommendations are not just coming from the County Administrator. These recommendations are coming forward as a budget package that is the result of a process of collaboration with all of the Elected Officials and Department Heads. Philip Morley continued by noting that even with the revenues being proposed today the County is looking at reductions in force and reductions in service levels to the public. The County does face a [mancial emergency. The national financial emergency that was declared a little over a year ago continues today and reduces revenues to County funds. He recommends that the County take $216, 000 in banked capacity in the Road Fund. Road Fund Diversion for Traffic Law Enforcement: County Administrator Morley stated that he also recommends that the past practice of diverting an amount from the Road Fund to the General Fund for traffic law enforcement costs in the Sheriffs office be continued in 2010. The proposed diversion amount is $720,000. Jack Westerman added that the County has used diversion and banked capacity in the past. Page 1 Commissioners Meeting Minutes: Week of November 30, 2009 I)"""'" :.; .......~ .. ..~...'" "'H,W"O Temoorarv Road Levv Shift: Financial projections have confirmed a funding gap between revenues and expenditures in the General Fund in the amount of$1.9 million by 2014. This gap needs to be closed with permanent program cuts and new revenues. This gap reflects the current economic recession, plus the structural funding disparity between the 1 % growth limit on property tax versus a 4% average inflation on the cost of providing services. A levy shift from the Road Fund to the General Fund is authorized by State law. He recommends that a levy shift in the amount of$216,000 be made in 2010. Temporarily shifting the gain from banked capacity leaves the Road Fund at its present size. Jack Westerman explained that the CPI for the past 5 years is 14.4% which is an average of2.8% per year. For 4 years the County took a 1 % levy amount in Roads. Over the past 5 years even with taking the banked capacity in Roads this year the total is 11.0564% compared to 14.4%. The County is still 3.33% behind CPI for those years. General Fund Limit Factor: Philip Morley continued by noting that the limiting factor also applies to the General Fund. With a 1 % increase in the property tax the 2010 budget would have the General Fund departments and transfers to other funds absorb over $1 million in cuts, so a substantial need exists in the General Fund for using the 1 % limit factor and that is what he recommends. The proposed 20 I 0 budget is an effort to be financially prudent and a number of actions have been taken including the development of a five year projection, reductions in the 2009 General Fund budget staffing levels and identification of additional reductions necessary in 2010 through 2014. He then reviewed the substantial cuts already made. In looking at next year, all departments that are funded or are receiving transfers from the General Fund, reduced their budgets by 4.7% ($575,000 savings) and then Elected Officials and Department Heads found cross departmental efficiencies and reductions which provided another $500,000 savings. The cuts have been painful and services to the public have been affected. There are 10 fewer employees in 2010 than originally budgeted in 2009 and compared to 2008 the County will have dropped 23 FTEs. The proposed staffing levels in 2010 are lower than any year since 2002. To summarize, the proposed General Fund levy amount is $6.9 million with reductions for Veterans Relief ($39,800), Mental Health ($39,300) and Developmental Disabilities ($39,300) and with the addition of $216,000 levy shift the Current Expense Fund is a little over $7 million. Conservation Futures Fund Limit Factor: The limiting factor will apply to this fund also, Philip Morley noted. Potential conservation projects continue to outstrip the available funding. The 1 % cap has not kept up with inflation in prior years and consequently the fund has lost buying power creating a substantial need in this fund for using the 1 % limit factor. Chairman Sullivan opened the public hearing. Joe D'Amico. Fort Discovery, stated that the Board has not done enough and should not do this. They talk about cutbacks on the employees which he doesn't like to see, but he has seen no action from this Board to bring new business into the County. Instead they are going to put this on the backs of property owners around the County that have been here for years. He loves the Discovery Bay area, but if there is money going toward trails and that kind of thing, he feels that can be put on hold. He feels we really need to focus Page 2 Commissioners Meeting Minutes: Week of November 30, 2009 i)'IJ"<", ',",' -,'-' ... _'to_',", s,,,,,,'I' on what can be done to drive business into Jefferson County to bring tax revenues up. Before this budget is passed he feels it's important for the Board members to determine ifthey have done enough to make changes in this County. Bill Miller, Port Townsend, thanked the Board for considering all these things and recognizing that we have to establish some priorities for our future and he really believes that the County should continue to support the Conservation Futures. He feels this is the best opportunity to take advantage of their availability. He recognizes that it is a struggle, however, we've all lived on the backs of people who have paid the taxes before us and we are going to pay the taxes for the people who come after us and that's what we're supposed to do to keep our County going. Tom Thiersch, Jefferson County, noted that several times during the County Administrator's presentation the term "substantial need" was used as if it were a legal phrase. He would like to hear the definition of substantial need. He feels the legal definition of this term needs to be made clear to the public. He recognizes that there may be a need to raise additional revenue. Last year he spoke about the need to utilize the banked capacity of the Road Fund, and the County chose not to do that and now the County is robbing the Road Fund to pay for the General Fund. Banked capacity is funding that the County will never get back. The problem is that by robbing the Road Fund the essential infrastructure of the County is being underfunded. This is not a good plan for the future. If the infrastructure is not supported, in the future it will be detrimental to the ability of the County to grow or even maintain current services. Yes these are desperate times for many people and more belt tightening is needed. He does not consider what Mr. Morley termed a modest decline of 10% per year in the Road Fund a modest decline. Depleting a fund balance by 10% per year is outrageous for a fund that has to be there for the people to get around. You have not done a good job of planning for the future and adopting this sort of short term thinking is continuing to fail to plan for the future. You can't count on the State you can only count on yourselves. You need to show more leadership in this area and figure out ways to make this happen. George Yount. Port Townsend, said that these are tough, difficult times and he congratulated the three Board members and staff for the amount of effort over the last year that people have witnessed trying to get a handle on the problems this year and moving forward. What is proposed here by Mr. Morley is an excellent solution. There are many people who wax on and on about issues that starve the beast. The problem is the beast is us because we are County government. We need to step forward and help our citizens. He urged the Board to adopt the levy recommendations. He applauded the work of all of the Elected Officials and staff in working together to help. That is a very unique experience and he is proud of the Board for their leadership in allowing that to happen. Hearing no further public comment for or against the ad valorem tax levies for collections in 2010, the Chair closed the public hearing. J ack Westerman explained that the statute provides no definition of "substantial need." If asked, the State Department of Revenue would tell you that it would be enough for a taxing district to say that the substantial need is to protect their future levy capacity because there is no definition ofthe term substantial need. In our resolutions you will find that some specific substantial need is articulated. Page 3 Commissioners Meeting Minutes: Week of November 30,2009 ~~"".o, ;; ,',. ~ 01",._"'''> "~:-~"~" Chairman Sullivan added that the County is taking from the road infrastructure to help fund the rest ofthe infrastructure. Jack Westerman explained that the initial recommendation regarding the use of the road funds came from the Public Works Director who knows the full ramifications of this action. Everyone recognizes that the level shift cannot be done in an on-going fashion. The discussion continued regarding the funding issues that face all County departments and the appreciation for the collaborative effort of all the Elected Officials and Department Heads in proposing a balanced 20 I 0 budget. Commissioner Johnson moved and Commissioner Austin seconded the motion to approve the following resolutions: RESOLUTION NO. 66-09; In the matter of a Declaration of a Financial Emergency in the Jefferson County Road Fund RESOLUTION NO. 68-09; In the Matter of Adopting the Limiting Factor for the Jefferson County Road Fund Property Tax Levy RESOLUTION NO. 70-09; In the Matter of Adopting an Increase in the Jefferson County General Fund Levy for 2010 Taxes RESOLUTION NO. 72-09: In the Matter of an Increase for the Jefferson County Conservation Futures Tax Levy for 2010 Taxes RESOLUTION NO. 74-09; In the Matter of Authorizing a Shift of$216,000 from the Road Fund Levy to the General Fund for the 2010 Budget Commissioner Austin moved and Commissioner Johnson seconded the motion to approve the following resolutions: RESOLUTION NO. 67-09; In the Matter of Adopting the Limiting Factor for the Jefferson County General Fund Property Tax Levy RESOLUTION NO. 69-09: In the Matter of Adopting the Limiting Factor for the Jefferson County Conservation Futures Fund Property Tax Levy RESOLUTION NO. 71-09; In the matter of an Increase for the Jefferson County Road Fund Levy for 2010 Taxes RESOLUTION NO. 73-09; In the Matter of Diversion of Road Levy for Traffic Law Enforcement for the 2010 Budget LETTER TO ASSESSOR re; 20 I 0 Real and Personal Property Levy Amount Page 4 Commissioners Meeting Minutes: Week of November 30,2009 i)''''''O :;:'......,::..,:.::.:<~ ","'::',.f' ~,~"~ NOTICE OF ADJOURNMENT: Commission Austin moved to adjourn at 12:06 p.m. until the next regular Monday meeting at 9:00 a.m. or special meeting as properly noticed pursuant to RCW 42.30.080. Commissioner Johnson seconded the motion which carried by a unanimous vote. JEFFERSON COUNTY BOARD OF COMMISSIONERS L.1 J 1 . 0 ~ 6hr~f L$_.- David W. Sullivan, Chair ..'" '- / . ATTEST: Jo son, Member ~~ ~~' + } " <- fA." ,,""- nn Lun grenV , . Deputy Clerk of the Board Page 5