HomeMy WebLinkAboutSpecial Committee of the Whole June 15 20101
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WHATCOM COUNTY COUNCIL
Special Committee Of The Whole
June 15, 2010
CALL TO ORDER
Council Chair Sam Crawford called the meeting to order at 9:02 a.m. in the
Courthouse Fifth Floor Conference Room, 311 Grand Avenue, Bellingham, Washington.
ROLL CALL
Present: Barbara Brenner, Sam Crawford, Kathy Kershner, Bill Knutzen, Ken
Mann, L. Ward Nelson and Carl Weimer
Absent: None
1. DISCUSSION WITH THE ADMINISTRATION REGARDING 2011 -2012 BUDGET
PREPARATION (AB2010 -244)
Crawford stated they would talk today about general policy guidelines between the
administration and Council. He read a business newsletter he received from a lumber
company in Southern California regarding the economic outlook. They need to assume that
there isn't a lot of good news for 2011 and 2012. It will be challenging to sustain County
services at current levels. They may need to talk about reductions in County services.
Dewey Desler, Deputy Administrator, stated they have been aware of the economic
circumstances and the nature of issues they're facing in the community. Virtually all funds
are under stress, including the road fund, jail fund, and other funds. They expect the most
from the general fund, but it is under a lot of stress. The community expects a lot from that
fund and those services, but there are revenue restrictions. There will be increasing
problems with the general fund, given how the Growth Management Act GMA forces growth,
and associated taxes, into the cities.
He submitted and read from a presentation (on file) regarding actual revenue and
expenditures from 2006 through 2009 and projected revenue and expenses for 2010
through 2012. The rainy day fund accumulated over the years has sustained them since
2007. As revenue flattens and expenses rise, they forecast problems beginning in 2010.
The majority of the expenses are from employee costs, including pension obligations. Major
cost drivers aren't necessarily from growing programs, but from how they have to pay for
wages. They have made efforts to slow this growth and stabilize the general fund. At the
beginning of the year, the government needs about 10 percent of its revenue. If they
continue the current trajectory, the fund balance in 2011 is anticipated at $6 million and in
2012 is anticipated at $500,000. As a result of potential sales tax changes as applied to
Canadian citizens, the budget impact will be about $500,000 per year for each of the two
budget years.
Through attrition, they've lost about 60 people in the last year and a half. Last May,
they felt they needed to save about $7 million by the end of 2010. It looks like they will hit
that target. He described the effect to the budget of continuing employee furloughs.
Special Committee of the Whole - Budget Guidelines, 6/15/2010, Page 1
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He asked the councilmembers to consider ideas that have been developed the past
few weeks. He submitted and read from the draft 2011 -2012 Budget Development
Guidelines (on file). By the end of 2012, the County will be debt free from market - driven
bonds. The County will need to borrow money in the future for capital expenditures. It
must have a fund balance for legitimate emergencies. When they come out of this
recession, they will need to save money for a future rainy day.
There was discussion on the historical number of employees in the County; a modest
increase in new construction and sales tax revenue; whether interest rates will rise;
retraining existing staff to fill vacant positions; prioritizing County services; the effects of
attrition on different departments; providing services online; evaluating mandated versus
non - mandated permitting; expanding job descriptions to allow for filling in for other
positions; implementing targeted reductions rather than across - the -board reductions;
establishing criteria for evaluating service levels; how they involve unions in setting service
levels, and; whether the Council or Executive will develop direction.
list.
Crawford read the first guideline regarding service levels.
Brenner stated adopt by reference the Pierce County service priority list or a similar
Crawford read the second guideline regarding staffing.
Brenner stated she is not comfortable with two items about eliminating vacant
positions and attrition.
Nelson moved to amend, 'Evaluate the elimination of Eliminate vacant positions
realized during the 2009 - 2010."
Brenner stated evaluate eliminating other, filled positions. Desler stated that
concept is embedded in the previous item.
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Knutzen moved to add an item, "Evaluate the efficiencies of contracting out
services to the private sector, when possible."
There was discussion of whether union contracts prohibit the County from
contracting services to the private sector.
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Kershner moved to amend, "Work with department heads to continue to create
savings and reduce staffing levels...."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Special Committee of the Whole - Budget Guidelines, 6/15/2010, Page 2
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Crawford read the third guideline regarding structure of functions and services. He
moved to amend, "Review on non - mandated services... justice operations. Additionally,
provide a written analysis of costs and benefits of the use of any County funds used to
contract with private nonprofit organizations."
Weimer offered a friendly amendment to remove "nonprofit."
Crawford did not accept the friendly amendment.
Nelson suggested a friendly amendment, "...Additionally, provide a written
analysis of costs and benefits for the use of any county funds used te EeRtFaet with
for non - mandated services."
Crawford accepted the friendly amendment and amended his motion,
"...Additionally, provide a written analysis of costs and benefits for the use of any county
funds for non - mandated services awarded on a
noncompetitive basis."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Knutzen moved to amend 'Reducing building space needs in all County government
operations, and sell surplus property as appropriate."
Kershner stated make sure they don't sell property they will need to have in the
future.
Brenner stated don't vacate property that can be used for stormwater retention.
Without due diligence and a vote from councilmembers, don't vacate properties that may be
useful, especially in the Lake Whatcom watershed.
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Nelson asked about how the administration will explain to the Council that a new
service must be offset with efficiencies elsewhere. He moved to amend, "...to improve
operational efficiency consistent with the cost offsets in paragraph one, provide more
effective public access...."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Crawford read the fourth guideline about revenue. He moved to amend, "Review
Whatcom County taxes, levies, and fees, and propose as appropriate revenue neutral
adjustments to fund high priority services."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Special Committee of the Whole - Budget Guidelines, 6/15/2010, Page 3
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Crawford moved to add an item, "When appropriate, use interest income from
dedicated fund sources to fund general fund balances."
There was discussion about the legality of the motion; applying that motion to voter -
approved funds, and; supplementing the administrative overhead costs of dedicated funds.
The motion carried by the following vote:
Ayes: Crawford, Kershner, Knutzen and Nelson (4)
Nays: Mann, Weimer and Brenner (3)
Crawford read the next guideline about efficiencies.
Brenner moved to add an item, "Evaluate consolidation of County departments."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Bill Elfo, County Sheriff, stated there is a lot they can do with technology to eliminate
redundancies and achieve efficiencies. They will need to spend money to do those things.
There was discussion about interoperability with other law enforcement agencies.
Kershner moved to add an item, "Information management."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Crawford read the next guideline regarding ending fund balance and reserves. He
moved to add an item, "Ending fund balance of 10 percent or more of general fund
expenditures."
There was discussion about an appropriate ending fund balance amount; establishing
the motion to the road and flood funds; the ability to not have to borrow money and to
meet emergencies, and; creating a reserve fund for wants and warrants.
Crawford withdrew his motion.
Weimer moved to amend, "Adequate fund balances to meet cash flow to fund
operations without borrowing."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Weimer moved to amend to add an item, "Strive to maintain a $5 million reserve in
the flood fund for emergencies."
John Hutchins, Public Works Department, explained how the County staff determined
a level of $5 million to keep in reserve for flood response.
Special Committee of the Whole - Budget Guidelines, 6/15/2010, Page 4
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Weimer amended his motion and moved to add an item, "Maintain an adequate
reserve in the flood fund to respond to emergencies."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Crawford read the last guideline on other cost savings.
Crawford moved to amend, "...recommend other cost - saving measures, including
across the board and /or targeted reductions...."
The motion carried by the following vote:
Ayes: Brenner, Crawford, Kershner, Knutzen, Mann, Nelson and Weimer (7)
Nays: None (0)
Knutzen stated he would like to request that they look at ways to contract services
to the private sector.
Crawford stated the Executive will propose the budget for the Council to approve.
It's great that the Council, Executive, and Deputy Administrator can meet early in the
budget process to collaborate, which the Charter doesn't require.
ADJOURN
The meeting adjourned at 11:28 a.m.
Please contact the Council Office to obtain an
official, signed copy:
360- 676 -6690 or council &o.w hatcom .wa.us
Dana Brown - Davis, Council Clerk
Sam Crawford, Council Chair
Special Committee of the Whole — Budget Guidelines, 6/15/2010, Page 5