HomeMy WebLinkAboutSpecial Committee of the Whole November 24 20091
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WHATCOM COUNTY COUNCIL
Special Committee Of The Whole Work Session
November 24, 2009
Council Chair Seth Fleetwood called the meeting to order at 2:05 p.m. in the Council
Chambers, 311 Grand Avenue, Bellingham, Washington.
Present: Barbara Brenner, Sam Crawford, Seth Fleetwood, Bob Kelly, L. Ward
Nelson, Laurie Caskey- Schreiber and Carl Weimer.
Absent: None.
OTHER BUSINESS
Discussion of 2010 Budget issues and concerns - Superior Court and District Court
Probation (AB2009 -366A)
Dewey Desler, Deputy Administrator, stated they've come up with a solution for
funding problems at District Court Probation, with no loss of staff. Those details will come
forward soon. They recommend a $400,000 reduction in the Planning and Development
Services Department for 2010, beyond what was budgeted. He submitted a handout (on
file). Superior Court is requesting $202,000. They are working with Superior Court to
reduce that number.
Discussion of 2010 Budget issues and concerns
Desler stated the ending fund balance in 2010 will be less than ten percent. Four
options were presented. He read those options. Funds are available in the equipment
revolve and rental (ER &R) fund and real estate excise tax (REET) II fund that can fill gaps
that may occur in the road fund. The Executive does not support the option of raising
revenue by raising taxes.
The following people answered questions:
• Marianne Caldwell, Administrative Services Department
• David Stalheim, Planning and Development Services Department
• Dan Gibson, Prosecutor's Office
Discussion included funding for the Conservation Program on Agricultural Lands
(CPAL) program; the Rural Arterial Program (RAP) funding penalty as a result of road funds
diverted to the general fund; the original proposal to use REET II funds for road projects
funded through the road fund; using road funds to pay for traffic deputies; whether vacant
positions are still included in the 2010 budget; how much more city residents would pay as
a result of a potential road levy shift to the general fund, and; lowering the conservation
futures fund and increasing the general fund in the amount of approximately $250,000 to
pay for the Lake Whatcom watershed reconveyance.
Special Committee of the Whole Work Session — Budget Issues, 11/24/2009, Page 1
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COMMITTEE DISCUSSION
1. RESPONSE TO COUNCIL INQUIRY REGARDING THE ADMINISTRATIVE
SERVICES FUND AND THE EQUIPMENT RENTAL AND REVOLVING FUND
(ER &R) (AB2009 -419A)
Dewey Desler, Deputy Administrator, stated that at the end of 2010, the
administrative services fund balance will be $5.4 million. He described the reserve
requirements for self- insurance of health, dental, unemployment compensation, and
workman's compensation. An alternative to self- insurance is entering into a large insurance
pool. Self- insurance reserve standards are from the Office of Financial Management (OFM).
Fleetwood asked if they've ever had to dip into the self- insurance reserves.
Brad Bennett, Administrative Services Department, described the self- insurance
program.
Desler stated part of the fund balance represents other funds, including the road
fund and flood fund. Certain employees are covered by those funds. This balance also
covers special districts.
Kelly asked how much they can take from the administrative reserves to contribute
to filling the budget gap. Desler stated they already plan to reduce that fund by about
$400,000.
Weimer asked why they need a reserve for Human Resources, Information
Technology, and Facilities. Bennett stated they will be at $637,000 at the end of 2010.
From that, they need cash flow of over $400,000, so about $100,000 would be available.
Brenner stated they don't need the press secretary position.
Crawford asked the administration to suggest further cuts to the budget.
Caskey- Schreiber asked if they could increase certain fees. Desler stated they try
not to lay people off and also not to reduce services. They will review fees to make sure
they match the cost of service. It's not an answer. Planning Department revenue continues
to fall.
Ideas for budget changes include:
• Add revenue of $153,000 from the one -tenth of one percent mental health
tax
• Subtract $400,000 from extra help and one -time expenses and two existing
positions in the Planning Department
• Shift $291,000 to pay for the reconveyance project by reducing the
conservation futures fund and increasing the general fund. That would
require a tax levy shift.
• Add $243,000 by using the veteran's affairs fund by adjusting millage rates.
They collect $250,000 per year, and spend less than half of that. The balance
is over $700,000. Suspend collection for a year and let the committee use
the fund balance to continue services. Reduce or eliminate the tax collection,
and funnel that tax amount back to general fund.
• Subtract $420,000 from a one percent cut to all departments of the
undedicated cash they receive, excluding bond payments and other things.
Special Committee of the Whole Work Session — Budget Issues, 11/24/2009, Page 2
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Caskey- Schreiber asked if they can respect the judicial branch of government and
not include them in the one percent cut to all departments. Desler stated one percent of
undedicated funds from Superior Court, Clerk, and District Court would be about $57,000.
Therefore:
• Change the total one percent cut to all departments to $363,000 instead of
$420,000.
Crawford stated they can say they'll lower department budgets by one percent, but
the Sheriff and Judges may not make those cuts. He asked how to get those departments
on board with the cuts. Desler stated that revenues have not materialized, but departments
think they can continue with planned expenditures or they miss revenue projections. They
can no longer deal with those missed revenue projections. So far, the Sheriff is respecting
the hiring freeze.
Caskey- Schreiber asked about freezing employee travel. Desler stated they are
doing that. Out -of -state travel is only allowed if there is an outside funding source. Also,
they need to maintain a $7 million cash balance.
Caskey- Schreiber stated try to shop for less expensive health insurance. Desler
stated the administration wants to address the tort budget internally and more in- depth.
Also:
• Add $52,000 from the conservation futures fund to pay for staff who work on
the purchase of development rights (PDR) program
Fleetwood asked how the Planning Department would reduce it's operations in the
amount of $400,000.
David Stalheim, Planning and Development Services Department Director, stated
they haven't decided that yet. They would make two or three cuts in the department. They
have extra help line items in some growth management professional services line they can
cut. They would also cut the rest from two or three other positions. They are down to
three enforcement positions from five right now. Now, they are down 15 positions from
where they were two years ago, which was 73.6 positions.
Desler stated that to do the above, adjust the conservation futures fund, general
fund, and the veteran's relief fund tonight.
Crawford stated they haven't talked about cuts to the Health Department and
Cooperative Extension. He asked if they are seeing any reduction in the road fund. Desler
stated they should first consider the items they've discussed today.
Fleetwood stated he would be in favor of adding $500,000 by increasing taxes by
two percent, one percent from annual property tax and one percent from banked capacity;
several hundred thousand from the administrative services fund from Finance, Facilities, or
the health insurance reserves; $153,000 for the mental health sales tax transfer; several
hundred thousand from the Planning Department; $291,000 from the conservation futures
fund to the general fund for the reconveyance, and; the veterans affairs fund in the amount
of $243,000. From all that, fund $285,000 to Superior Court and $153,000 to District
Court.
Special Committee of the Whole Work Session - Budget Issues, 11/24/2009, Page 3
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Fleetwood stated they would take a series of straw votes to give some direction to
the administration. He moved to approve a straw vote to increase general property tax
by two percent.
The motion failed by the following vote:
Ayes: Fleetwood (1)
Nays: Crawford, Kelly, Weimer, Caskey- Schreiber, and Brenner (5)
Absent: Nelson (1)
Fleetwood moved to approve a straw vote to add revenue of $153,000 from the
one -tenth of one percent mental health tax as discussed.
The motion carried by the following vote:
Ayes: Crawford, Kelly, Weimer, Caskey- Schreiber, and Fleetwood (5)
Nays: Brenner (1)
Absent: Nelson (1)
Crawford moved to approve a straw vote to move $291,000 from the
conservation futures fund to the general fund.
Caskey- Schreiber suggested a friendly amendment to increase that amount to
$300,000 for labor for the reconveyance.
Crawford accepted the friendly amendment.
The motion carried by the following vote:
Ayes: Crawford, Kelly, Weimer, Caskey- Schreiber, and Fleetwood (5)
Nays: None (0)
Absent: Nelson (1)
Abstain: Brenner (1)
Fleetwood moved to approve a straw vote to use the veterans affairs fund in the
amount of $243,000.
The motion carried by the following vote:
Ayes: Crawford, Weimer, Caskey- Schreiber, and Fleetwood (4)
Nays: Brenner and Kelly (2)
Absent: Nelson (1)
Fleetwood moved to approve a straw vote to cut $400,000 cut from the
Planning Department.
The motion carried by the following vote:
Ayes: Crawford, Weimer, Caskey- Schreiber, Fleetwood, Brenner and Kelly (6)
Nays: None (0)
Absent: Nelson (1)
Weimer moved to approve a straw vote to switch $52,000 from the conservation
futures fund to the general fund for agricultural land preservation efforts.
The motion carried by the following vote:
Ayes: Crawford, Weimer, Caskey- Schreiber, Fleetwood, Brenner and Kelly (6)
Nays: None (0)
Special Committee of the Whole Work Session - Budget Issues, 11/24/2009, Page 4
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Absent: Nelson (1)
Weimer moved to approve a straw vote to remove reserves in the amounts of
$500,000 from the administrative services fund, $300,000 from the administrative Finance,
Human Resources, and Information Technology account and $200,000 from Facilities, for a
total of $1 million.
The motion carried by the following vote:
Ayes: Crawford, Weimer, Caskey- Schreiber, Fleetwood and Kelly (5)
Nays: None (0)
Absent: Nelson (absent) and Brenner (out of the room) (2)
Fleetwood moved to approve a straw vote to approve a one - percent property
tax increase.
The motion failed by the following vote:
Ayes: Fleetwood (1)
Nays: Crawford, Weimer, Caskey- Schreiber, Brenner and Kelly (5)
Absent: Nelson (1)
There was discussion about Superior Court funding in the amount of $285,000.
Fleetwood moved to approve a straw vote to take from the administrative
services health insurance in the amount of $285,000. Bennett stated they can't, because of
junior taxing districts.
Desler stated that he instead suggests collecting $100,000, spread among all
departments equally. It would total one - quarter of one percent to all departments.
Brenner stated the Council is its own division of government. It is a small division,
and can't make cuts like the administration can.
Fleetwood withdrew his motion.
Caskey- Schreiber moved to approve a straw vote to cut the budget across
departments except Superior Court, District Court, and the County Council, in the amount of
one percent, for a total amount of $363,000.
Crawford moved to amend to not exempt the County Council.
Caskey- Schreiber accepted the motion as a friendly amendment.
The motion carried by the following vote:
Ayes: Crawford, Weimer, Caskey- Schreiber, Fleetwood and Kelly (5)
Nays: Nelson and Brenner (2)
Fleetwood moved to approve a straw vote to give the courts $250,000.
The motion carried by the following vote:
Ayes: Brenner, Weimer, Caskey- Schreiber, Fleetwood and Kelly (5)
Nays: Nelson and Crawford (2)
Special Committee of the Whole Work Session - Budget Issues, 11/24/2009, Page 5
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Caskey- Schreiber moved to approve a straw vote to provide the Council Office
$30,000 for legal defense of the urban growth areas (UGAs).
The motion carried by the following vote:
Ayes: Weimer, Caskey- Schreiber, Fleetwood and Kelly (4)
Nays: Brenner, Nelson and Crawford (3)
Desler stated the administration will respect the Council's decisions as they go
forward.
Weimer stated he would like the Council to vote on these decisions tonight. Since
they've been talking about it, they don't have to introduce the items. They can incorporate
them into the existing additional services request (ASR). Desler stated that's correct.
COMMITTEE DISCUSSION AND RECOMMENDATIONS TO COUNCIL
1. ORDINANCE AUTHORIZING A SHIFT OF $1,750,000 FROM THE ROAD LEVY
TO THE GENERAL FUND LEVY FOR 2010 PURSUANT TO RCW 84.52.043
(AB2009 -411)
See above.
2. ORDINANCE AMENDING THE 2010 WHATCOM COUNTY BUDGET, SECOND
REQUEST, IN THE AMOUNT OF $3,440,693 (AB2009 -419)
See above.
3. ORDINANCE LIMITING THE 2010 ROAD FUND PROPERTY TAX LEVY
(AB2009 -412)
See above.
4. ORDINANCE AUTHORIZING THE LEVY OF TAXES FOR COUNTY
CONSERVATION FUTURES PURPOSES FOR 2010 (AB2009 -413)
See above.
5. ORDINANCE LIMITING THE 2010 GENERAL FUND PROPERTY TAX LEVY
(AB2009 -414)
See above.
6. ORDINANCE AUTHORIZING THE LEVY OF TAXES FOR COUNTY AND STATE
PURPOSES IN WHATCOM COUNTY FOR THE YEAR 2010 (AB2009 -415)
See above.
7. ORDINANCE AUTHORIZING THE LEVY OF TAXES FOR COUNTY ROAD
PURPOSES FOR 2010 (AB2009 -416)
See above.
Special Committee of the Whole Work Session — Budget Issues, 11/24/2009, Page 6
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ADJOURN
The meeting adjourned at 5:10 p.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
Seth Fleetwood, Council Chair
Special Committee of the Whole Work Session - Budget Issues, 11/24/2009, Page 7