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HomeMy WebLinkAboutSpecial Committee of the Whole October 23 20081 WHATCOM COUNTY COUNCIL 2 Special Committee Of The Whole 3 4 October 23, 2008 5 6 Council Chair Carl Weimer called the meeting to order at 9:05 a.m. in the Council 7 Chambers, 311 Grand Avenue, Bellingham, Washington. 8 9 Present: Absent: 10 Barbara Brenner None 11 Bob Kelly 12 Sam Crawford 13 Seth Fleetwood 14 Laurie Caskey- Schreiber 15 L. Ward Nelson 16 17 1. ORDINANCE ADOPTING THE 2009/2010 WHATCOM COUNTY BUDGET 18 (AB2008 -227E) 19 20 (Clerk's Note: Councilmember Nelson assumed the duties of the Chair for the 21 meeting.) 22 23 Introduction 24 25 Dewey Desler, Deputy Administrator, stated he presents the. recommended budget 26 for 2009 and 2010. It will address service issues cost - effectively. It reflects Council 27 priorities, passed this June. Many employees contributed to creating this budget, which 28 maximizes government performance. The County has received an award for this budget 29 model for the past several years. 30 31 The budget totals $188 million, which is $5 million less than the 2008 budget. The 32 general fund should remain level over the course of the year. Ongoing expenditure budget 33 is just under $76 million each year for 2008 and 2009. Ongoing revenues in 2008 are about 34 $72.5 million and $73.5 million in 2009. 35 36 He submitted a handout (on file) on the general fund. The property tax remains 37 level. The increase in the property taxes in 2010 is only 40 percent of the increase that 38 occurs between 2008 and 2009. That partially occurs because of a slow -down in the value 39 of new construction. One reason for an increase in the property tax in the general fund 40 relates to the proposed increase to banked capacity and reduced, conservation futures fund. 41 He read from the handout. Many revenue reductions reflect a downturn in construction 42 activity in the community. The reduction occurs from a slow -down in sales activity and also 43 because property sales are going down in value as well. Probation fees aren't being paid 44 because many of those workers are unemployed, having been in the construction industry. 45 46 The administration proposes reductions in 2009 and 2010...: They've made 47 assumptions about the coming year. The property tax will remain stable, but without new 48 construction growth. The local economy will continue to slow, with impacts on building, 49 employment, foreclosures, bankruptcies, late payments, and sluggish sales tax growth. 50 Federal interest rates will continue to fall, creating negative impacts on interest income, the 51 County's third largest revenue source. The administration proposes general fund fee 52 increases, consistent with Council guidelines. 53 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 1 1 Normally, general fund revenues increase four to five percent per year. Now, they 2 project a growth rate of one percent increase in 2009 and a 2.8 percent increase in 2010. 3 Increases needed to cover rising costs of salaries and benefits, energy, and fuel exceed the 4 limited increase in revenue. Therefore, they need to reduce staffing and programs. He 5 read the general fund charts in the handout. 6 7 Caskey - Schreiber asked if they've budgeted enough or too much for the LEOFF I 8 employees. Desler stated they've made an appropriate analysis. They will have to revisit it 9 every two or three years to make sure it's still appropriate. Interest on the $3.5 million 10 goes back into that reserve. 11 12 Crawford stated they are not spending a lot of that $3.5 million right now. As those 13 employees age, the costs will rise. 14 15 Desler continued to read the general fund charts in the handout. They propose no 16 increase in the total ongoing general fund expenditure. There will be some one -time 17 expenses. They anticipate curtailing staff during 2009 and 2010. Overall, 36 positions will 18 be eliminated. Many of those positions are already vacant. The reductions include nine 19 positions in the law and justice departments, 2.5 positions in the Public Works Department, 20 six positions in the Administrative Services Department, and 18.5 positions in the remaining 21 departments. Most positions will be vacant due to attrition and transfers to other vacant, 22 but budgeted, positions. Almost all department budgets reflect reductions in non - personnel 23 accounts. 24 25 Caskey- Schreiber asked if they are projecting a fund balance that includes the $3.5 26 million. Desler stated that amount is an asset of the County. 27 28 Brad Bennett, Administrative Services Department, stated that $15.5 million is the 29 total fund balance. It does not include the LEOFF I transfer amount of $3.5 million. 30 31 Staff will be curtailed in 2009 and 2010. Thirty six positions will be eliminated. 32 Many of those positions are already vacant, so they shouldn't have any layoffs. The 33 reductions include 9 in law and justice, 2.5 in the Public Works Department, 6 in 34 Administrative Services, and 18.5 in the remaining departments. Many positions will be 35 vacant already at the start of the year because of transfer and attrition. Many budgets 36 include reductions in things such as extra help, overtime, equipment purchases, travel, and 37 many other things. 38 39 Brenner stated make sure they cut back on travel. 40 41 Desler stated the budget will reduce the fund balance to $8.2 million. 42 43 Crawford stated Council policy is to not allow the general fund balance to go below 44 ten percent of current expenditures. Desler stated that's correct. 45 46 They must time cash balances so they don't dip below a certain level as they wait for 47 revenues to come in. They must pay bills throughout the year. Notice the spread between 48 the highest cash balance peak and the lowest cash balance dip on page eight of the 49 handout. They must stay above $7.5 million at all times. If not, they must borrow from 50 other funds or a bank to make payroll and pay basic bills. When the County borrows money 51 for appropriate things for the future, the County must show bond rating companies that it 52 can pay the money back and is properly managing its money. That is a key reason to not 53 let the fund balance fall below $8 million with an $80 million budget. 54 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 2 1 Over the last few years, they have been paying down outstanding debt. They will be 2 done within two or three years. That will free up revenue in 2012 and 2013 to pay for other 3 key things. 4 5 The County should be proud of its financial health, in spite of local challenges and 6 the economic slowdown. They can overcome future challenges. 7 8 Caskey- Schreiber asked if the administration put out a call for voluntary reduction in 9 staff hours of service when considering reducing staff. Desler stated that is a new policy. It 10 has to be approved between the employee and department manager. A few employees 11 have taken advantage of that. 12 13 Caskey- Schreiber asked if they've looked at proposals for work needed to implement 14 the Lake Whatcom stormwater problems and considered bonding the flood fund or 15 stormwater fund. With low interest rates, this may be a good time. Desler stated it is not a 16 good time, given the credit market turmoil. Interest rates for bonds are high. There are no 17 takers in the bond market today. They considered bonds for certain projects. 18 19 They want to purchase a building in the civic center area to house the Public 20 Defender's Office, upgrade a building and move Public Works Department staff into one 21 building, and update the Treasurer and Assessor equipment. These are all million - dollar 22 loans. The County will borrow from itself, from a few funds with cash balances that are 23 steady and solid. Borrow from those funds and pay them back with interest. They can do 24 that for less money than lease payments and other mechanisms. 25 26 Fleetwood asked why they hope revenues will increase in 2010. Desler stated they 27 project a modest increase in sales tax. He could provide a breakdown of the information. 28 29 Bennett stated new construction and sales tax is projected to go up. Until now, the 30 sales tax has held up well. Part of that may be because Canadians are coming down to 31 shop in this area a little bit. They will see if it continues to hold up. Other sales tax 32 changes, which they haven't incorporated into the projection, may help. 33 34 Desler stated the State Department of Revenue will change how sales tax is 35 assigned, so the County may see increased revenues from sales taxes. However, they're 36 not sure about this new State program. It may show no real increases. They'll know better 37 in December when the program is formally analyzed. Even with sales tax sourcing, it may 38 balance against rough times in reduced sales tax from lower construction activity and big 39 ticket items not being purchased. The County is being conservative about revenue 40 estimates. 41 42 Brenner stated the Council decides on whether there is a property tax increase. She 43 won't support any tax increase. According to national economists, this area of the country, 44 which has been fairly recession - proof, is starting to see declines in home values and sales 45 tax revenues. Don't count on any revenue increase at all. 46 47 Weimer asked how many open positions the County has at this point. Eliminating 48 open positions is the least painful thing to do. He asked if that makes the most sense 49 strategically, just because a position happens to be open during a budget crisis. Desler 50 stated there are some business lines they don't think they can continue. They are making 51 prudent changes, including programs related to a teaching program at the Roeder Home. 52 The business activity is down, so they don't need as many positions as they may have had. 53 They instituted a hiring freeze that affected all the vacant positions, except Sheriff's 54 deputies and corrections officers. If there is a critical issue they have to address that Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 doesn't have any other solution, those positions were released. Now, more than 30 positions are vacant. They are trying to bring the fund balance up to $12 million by the end of this year. They are trying to ease into these changes over a longer period of time. They started to constrain expenses in July. At the end of this year, 30 of the 36 positions will be vacant. They will have bridge funding for the rest of the positions until they can make changes in the organization. They can place those people in other positions. The objective is to not go through formal layoffs. If they have to, they will do that as humanely as possible. They don't want to formally lay people off. Weimer asked how many open positions there are now. Desler stated he can provide that information. Caskey- Schreiber stated she would like to talk about the proposal to axe the conservation futures fund and increase the property tax, to call it a wash. She is not in favor of that plan. Look for options to consider. She asked if the Council will have to cut back that amount, to leave it as it is. Nelson stated they will have that discussion during the work session on November 4. Juvenile Court Dave Reynolds, Juvenile Court Administrator, stated his budget was reduced by $320,000. (Clerk's Note: End of tape one, side A.) Crawford asked if the administration asked every department to make cuts, which is why there are additional services requests (ASR's) for budget reductions. Desler stated that is correct. Reynolds described department successes and statistics, how the department absorbed budget reductions, and the responsibilities of the detention officers. The department can't afford any cuts in probation. He described probation statistics and responsibilities of probation officers. Probation, detention, and court service are mandated, so they could not cut those services. He proposes closing the community juvenile justice center and reallocating that staff into the department. They will salvage some programs and eliminate others. They will reduce staff by 3.5 full -time equivalent (FTE) positions. The cuts weren't easy to make. That's the only place to absorb $325,000 in cuts. He described the cuts to his department. Weimer asked if this department plans any layoffs. Reynolds stated they have 3.5 FTE positions that are currently vacant. They will be eliminated. Existing staff will be reallocated. Weimer asked how the statistics for the juvenile justice center compare to other counties. Reynolds stated they have looked at programs within the justice center. Many other counties look to Whatcom County's programs because its rates are very good. Brenner asked if they are spending a larger percentage of their budget to do this than other counties. It looks like Whatcom County is paying much more. She would like information on Skagit County. Something it doesn't make sense on how much they pay per bed. Reynolds stated they pay maintenance per square foot. Other counties don't pay that. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 4 1 Brenner stated the numbers aren't comparable. Reynolds stated his intent was to 2 show what other counties spend on their detention centers. 3 4 Brenner stated the numbers aren't the same because other counties spend money 5 from other funds. Reynolds stated disregard the monetary figures, and look at capacity for 6 detention. They don't spend a lot for detention in this county, compared to other 7 jurisdictions. They have a very small detention center for a county this size. They are 8 successfully addressing juvenile justice outside of detention. 9 10 Fleetwood asked why this department was asked to cut a higher percentage than 11 other departments. Reynolds stated he was given a flat number from Mr. Desler to which 12 he decreased his budget. 13 14 Desler stated these aren't easy times. Other counties are trying to make bigger cuts 15 than Whatcom County is. Regarding juvenile services, they looked at the low detention 16 population and the dropping juvenile crime rate. They considered reducing things that may 17 not have an adverse effect. 18 19 Brenner asked if they are cutting the department more because they have done a 20 good job. Desler stated the budget is the same from 2008 to 2009, but with increased 21 wages and benefits. 22 23 Reynolds stated the nine percent reduction figure comes from the original proposed 24 budget, with the County's contribution and the reduction. The $320,000 reduction equals 25 nine percent of the money from the general fund that contributes to the department's 26 budget. The department also receives grant funds. 27 28 Kelly asked if the department will have a chance to adjust the list of programs that 29 will be eliminated once the Council approves the budget. Reynolds stated there may be 30 some opportunity to do that. It depends on what will continue to generate revenue and 31 what is mandated. They can and will do some juggling. The grants are very prescriptive, 32 so there isn't a lot of flexibility with the grants. 33 34 Crawford stated some of the juvenile clients also deal with substance abuse and 35 mental health issues. The County just passed a tax to pay for those services. He asked if 36 the juvenile services department will get a benefit from that tax. Reynolds stated the 37 proposal is for a mental health professional for the detention center and someone to work 38 with youth in drug court with dual diagnosis issues. 39 40 Crawford asked if the department's FTE reduction of 3.5 will be reduced to 2.5 by 41 adding in that mental health professional for the detention center. Desler stated they may 42 use the new mental health tax for juvenile services. The administration recommends that 43 the primary focus of that tax be to reduce impacts to the criminal justice system. The law 44 has a condition that they not supplant existing funds for existing programs, unless a 45 program is funded with federal funds. To spend the money on existing programs, they 46 would literally have to stop the program, not fund it, and then restart it. He would have to 47 discuss that option with legal counsel. 48 49 Crawford asked if that new tax revenue is included in this budget. Desler stated it is 50 only to a small degree, for drug court case managers and to start a half -time position in the 51 Health Department. A committee has to consider and recommend expenditures from that 52 tax revenue. 53 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Crawford asked about the space on the fourth floor of the Civic Center Building and consolidating Public Works Department staff. Desler stated the space on the fourth floor will be vacant until they can decide how to use that space. The Public Works Department staff will move to the third floor. They may leave the space on the fourth floor available for other uses, such as a conflict counsel public defender office. Nelson asked about the reduction in the CJAA program. Reynolds stated they reallocated staff to perform those services. The revenue is applied to different areas. Existing staff will have to perform those functions. Caskey- Schreiber asked if the juvenile justice center includes the teen drug court. Reynolds stated it does not. Caskey- Schreiber asked if they can put staff into the teen drug court with the new mental health tax. Desler stated they will receive recommendations from a committee, which has not yet met. Public Works Frank Abart, Public Works Department Director, stated he initially targeted a fund balance of $5 million at end of 2009, but it will only be $4 million. At end of 2010, there will be a $9 million balance, but that may be high because they don't have the construction cost information. They plan to eliminate 2.5 FTE positions. Ten positions are open and frozen at this point. Those aren't part of the 36 positions being completely eliminated countywide. Brenner asked which positions will be eliminated. Abart stated a ferry manager and 1.5 FTE's from Natural Resources and Stormwater Divisions. Of the frozen positions, about half are in the Maintenance and Operations (M &O) Division. The rest are from the Engineering Division and a safety and training specialist. Brenner asked if he proposes any reduction in solid waste positions. Abart stated he does not. Regarding construction, bridge projects are federally funded, so those will continue forward depending on that federal funding. They received approval of a revised Yew Street project, and hope to move utilities in 2009 and construct in 2010. Lincoln Road, as revised, is still pending. There is a joint project with the City of Bellingham at West :I:Ilinois Street and Timson Road, depending on funds through the Council of Governments (COG). He hopes to keep maintenance at the same level. The chip seal program is reduced from 60- 70 miles per year to about 40 miles per year. The budget is the best possible, given the anticipated revenues. Minimal service levels will change, primarily with maintenance and some vegetation. He will watch revenues very closely. He will meet with department management teams to devise plans and evaluate core services if revenues drop significantly. He will have a plan. Crawford stated he is concerned about slowing work on chip sealing. The road fund isn't as affected by new construction taxes. He asked why they anticipate less chip sealing. The revenue streams that support that service don't change much. Abart stated he doesn't like the idea of reducing the service, but given all other expenses, it's an area they can cut. Vegetation management is another program to keep an eye on. - Other expenses have increased, such as personnel. There is also an increase in material and fuel costs. They often compare projections with actual expenditures and revenues. He's trying to create a conservative budget and leave his options open if revenues get better. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 6 1 2 Crawford stated that they're considering some major capital growth projects. He 3 hopes that the department considers keeping up with road maintenance as much as it can. 4 They have a very' good program now. Isolate other parts of the budget that are having 5 problems, and make road maintenance steadier. 6 7 Brenner stated road maintenance in Whatcom County is excellent. However, most 8 complaints are about chip sealing. She asked for information on any laws that require as 9 much chip sealing as there is now. Abart stated no law says they have to do chip sealing. 10 It's for preventative maintenance. 11 12 Nelson asked if they can reduce money on road maintenance until things turn 13 around, or if that would cause more costs. Abart stated he will put together information to 14 answer those questions. 15 16 Weimer stated the Council asked administration to bring forward a level of service 17 (LOS) for water programs in the range of four to five. That isn't in the budget. He asked 18 the LOS proposed in the budget. They have started the process of developing a stormwater 19 utility for revenue, which would begin in 2010. 20 21 Jon Hutchings, Public Works Department, stated the Council asked staff to consider 22 mechanisms for raising funds to support an independent revenue stream for stormwater. 23 The Council also asked to staff to look at levels of service. Staff approached the 2009 and 24 2010 budget based on revenues they know are available. Also, they continue to dip into the 25 flood fund balance to maintain LOS commensurate with the la'st two years. They have even 26 reduced that to be more efficient. It may be a negative LOS, per se. There are minimal 27 decreases in activities. The 1.5 FTE's eliminated were to support development of national 28 pollutant discharge elimination system (NPDES) phase two work. They have constructed 29 the budget so there is a separate fund for stormwater programs that is ready to accept new 30 revenues. 31 32 (Clerk's Note: End of tape one, side 8.) 33 34 Hutchings continued to state that in the meantime, the stormwater programs will 35 continue from an interfund transfer from the flood fund. Regarding the stormwater utility, 36 the work is ongoing, funded from the existing 2008 budget. 37 38 Crawford asked if the $1.2 million is funded from interfund transfers instead of a new 39 source of funding, and if the other sources of funding to get to LOS 4 or LOS 5 have not 40 been added into the budget. Hutchings stated that's correct. 41 42 Weimer asked for a list of things on the LOS service four or five that won't occur with 43 the proposed LOS. Hutchings stated the LOS in 2007 and 2008 is being carried through 44 2009 and 2010. No programs are going away or being added. Funding for U.S. Geologic 45 Survey (USGS) gauging on Bertrand Creek is partly going to be shared with the watershed 46 improvement district (WID), which came up with additional funding for their portion. Money 47 to the Nooksack Salmon Enhancement Association (NSEA) will go toward County priorities 48 rather than NSEA programs. 49 50 Weimer asked for a better breakdown of expenditures by department, such as the 51 supply line item that goes up significantly. Hutchings stated that item has to do with how 52 materials on the Deming levee raise that don't belong to the County are accounted for. He 53 will provide more information. 54 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Brenner asked for a specific breakdown on M &O costs, specifically how much time and money is spent on chip sealing. Kelly stated he would like to know how much chip sealing is done and how they justify that level. District Court and District Court Probation Bruce Van Glubt, District Court Administrator, submitted a handout of charts (on file). District Court Probation is very large, stable, and long -term. They serve an average of 3,500 daily offenders. Other local court related programs are smaller and serve fewer offenders. He explained the tasks and responsibilities of the probation officers and department. A steep increase in 2006 on chart one is because of the opening of the work center. He reduced his budget by 3.6 percent by leaving a probation officer position unfilled. He had to cut the budget by $250,000, or raise that much extra revenue, in addition to the 3.6 percent reduction. The monthly probation fee for new active clients is increased. The $100 fee is the maximum allowed by law. They will change the monthly fee for active probation cases. Probation officers are required to review payment history at every appointment, or they will be reviewed more often. They will continue to work with clients on reasonable payment plans. They may not be successful in raising revenue. If not, he may be back before the Council. Brenner asked if some cases really need to be filed for a hearing. She would be interested to know about any filings that can be reduced. She asked if they can charge other jurisdictions more money, since the offender may come from them. Dave Grant, District Court Judge, stated they respond to complaints from many other law enforcement departments in the county. They often don't go through the Prosecutor's Office. It is a filter that may be employed to address that concern. Mr. McEachran may like to exercise more control with filtering. That might be helpful. There are instances of police stopping someone, and turning it over to the Sheriff, and the cases go through County District Court rather than City Municipal Court. The Sheriff is concerned about that issue. The Sheriff's Office is in a better position than the court to filter those things. Brenner stated have a Sheriff's Office policy that those infractions belong in municipal court. Grant stated that may not be workable, given the mutual aid act. They have to rely on the Prosecutor and Sheriff to make sure that's not abused. He doesn't see much of that from the bench. Van Glubt stated they want traffic infractions filed through District Court, because they pay. He explained the process if someone doesn't pay an infraction. Brenner stated fees from a lot of those on probation are being increased, and many don't have jobs. Grant stated that is an issue. The only other source of income available is to raise probation fees to the statutory maximum. People will eventually pay, but it will happen slowly, over a number of years. Those folks who don't pay go to collections. Eventually they do pay. Brenner stated she is interested in the rate of return on payment versus how many more times they are in the system if they don't pay the fee. Van Glubt stated they may be Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 assessed $100 per month, but they are on a payment plan, and they don't go to collections as, long as they continue to pay on the payment plan. Crawford stated the word on the street is that those who get a traffic ticket for speeding can go and get it mitigated. Everyone who tried to get it mitigated got their ticket reduced, no matter the reason. There's something wrong with that. He understands there are extenuating circumstances, but say no to some of them. Revenues would go up, and they would reduce the court load. Grant stated 84 to 86 percent of the people who get a ticket just send in a check. Of that 16 percent, four or five go to contested hearings. Those mitigations actually take very little court time. Most of the cases are pretty generic. He issues reductions based on infraction and driving history, not mitigating circumstances. Caskey- Schreiber stated it is a step to get people to acknowledge their behavior. There is some validity in having people suffer the consequences of breaking the law. Brenner asked to see the cost to process cases. She asked how much time and money it takes out of the system on some of those items. Give people an opportunity to do community service rather than pay a fine. Grant stated community service is an option in lieu of court fines. Nelson asked if the additional FTE approved during the last budget has been filled. Van Glubt stated they filled it, but it is the position they had to cut during this proposed budget. Grant stated they lost one probation officer by attrition. Van Glubt stated they did fill the position, but now the position is vacant, since this summer. Nelson asked what they are using the $18,000 ASR for, and if it will decrease the workload. Van Glubt stated it will be used to continue training probation officers and perform analyses. Nelson asked if those are more important than a position at this time. Van Glubt stated they couldn't cut 3.6 percent of the budget without cutting a position. Grant stated they would have left a .5 FTE Probation position if they could have. Nelson asked if they can reduce caseloads. Grant stated they can do that from the bench. Van Glubt stated there is risk to doing that. It will reduce the amount of revenue they bring in from probation fees. They can't win either way. Grant stated it's inappropriate for the judicial officers to make decisions on the bench that are motivated by revenue generation. They can lessen the time a person will be on probation and require clients to complete probation requirements sooner. Nelson asked for more information on alternatives to probation. It may be a good use for the mental health tax. Grant stated there are fewer alternatives to probation, due to reduced funding at all levels. Caskey- Schreiber asked if the County can have a ticket waiver program like the City. Grant stated they can have a similar program, but the County process is less mechanical Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 than the City's process. A District Court judge looks at the particulars of a case, which are discretionary, and then decides on deferment. They've opted not to do a more mechanical process. It creates a little more work for District Court staff that municipal court staff doesn't have. It's a different philosophical perspective. Caskey- Schreiber stated the program has merit. It motivates people to drive really good for three years. Grant stated the maximum fee the County can charge is $150. Fleetwood asked about staff moralE workloads. Van Glubt stated they talked budget, due to the 3.6 percent budget cut. department was asked to cut more from clerical staff and three probation officers. The pressure is on staff to bring in money. along with everything else. in light of budget and staff cuts and increased to staff about losing unfilled positions from the No one was going to lose their jobs. When the the budget, they looked at cutting a couple of Caseloads would rise to an unmanageable level. Now, they are all required to monitor payments Grant stated the nature of the department is service -based and people- centered. When they talk about making cuts, they suffer personnel cuts. The morale issue will be the same in departments that are worker - heavy. Van Glubt described District Court programs. (Clerk's Note: End of tape two, side A.) Van Glubt continued to describe District Court programs and statistics, reading from the handout. The department doesn't have any programs or contracts that can be cancelled to accommodate budget cuts. Any cuts must be made from staff. Restore staff to the program to call clients who haven't paid before going to collection. The clients appreciate the service, it may bring in revenue, and avoid the expense of a collection agency. District Court was subject to a second staffing cut. Through that second budget reduction, District Court must cut a second staff position, for a total 9.5 FTE staff cut overall. That equals, over 4,100 hours of staff time, with tasks that must be reallocated to others. This is an unreasonable burden to the department. Twenty -two percent of those cuts from District Court and another 11 percent of the cuts are from District Court Probation. The District Court judges ask to restore funding to the second person cut. They are looking for new revenue. Grant stated take a look at probation contracts with small cities. That may be a way to help with the budget issues. The cities may or may not be paying quite enough. Fleetwood asked the number one type of traffic infraction. Grant stated it is speeding. Fleetwood asked the reason for more speeding. Van Glubt stated it may be due to more enforcement. Grant stated the State gets the most of the fine collected, not the County. Van Glubt stated 100 percent of probation fees go to the County. Crawford stated the administration proposes no cuts in the Sheriff's Office, but cuts in the courts. The County could reduce these caseloads by not doing as much enforcement out on the roads. He asked how they balance the system. He asked how they propose cuts Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 to this part of the system if they add capacity to the Sheriff's Office. Desler stated there is no good answer. The justice system costs rise much faster than revenue and all other operations. The Sheriff did not have to reduce his budget by $441,000, and the administration had to find those cuts from elsewhere. They have funded probation services with probation fees. Until 2007, the probation fees covered the cost. There was no net cost to the general fund. In 2007 and 2008, costs to the general fund rose. The cost to the general fund is up to $600,000 in 2010. Revenue stayed flat, and costs increased. The administration asked the department to go back to the level it worked at for decades. These things are consistent with Council policies on fees for services. Grant stated much of the inflation of costs are due to the increases to salaries and benefits. When the administration signs long -term labor contracts that increased costs, departments will have huge increased costs. Weimer asked which positions were cut. Van Glubt described the positions that will be cut. Brenner stated Sheriff's Office staffing is also about prevention, not just enforcement. She was told that the impact of the salary negotiations was minimal. That's all the information she got at the time. Superior Court N.F. Jackson, Superior Court Administrator /Clerk, stated his budget is as usual. They did their 3.6 percent cut. There are no substantial initiatives. They looked for efficiencies in technology to enhance public access to court records. Brenner asked if the Law and Justice Council is part of Superior Court. Jackson stated it is not. Nelson stated it goes through the Northwest Regional Council. Brenner stated she would like to know how much they spend per year on the Law and Justice Council. a yea r. Nelson asked about staffing. Jackson stated they are leaving one position vacant for Marianne Caldwell, Administrative Services Department, stated the position is gone. Desler stated there was a proposal from the court to reduce one position in 2009, due to a retirement vacancy by the end of 2008. They anticipated another retirement vacancy at the end of 2009, which would remain vacant for another year. The administration opted to eliminate one position for the entire two year period. Jackson stated he anticipates one retirement at the end of 2008 and another at the end of 2009. He offered up the option to leave one position vacant for six months in 2009, and the next position vacant for six months in 2010. The reduction is in the Clerk's budget, not the Superior Court's budget. They are seeing fewer conflict cases due to good work by the Public Defender's office. That budget had been at $500,000. Now it is less than $400,000 for 2008. The base budget is reduced. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 11 1 They also reduced pro tempore court commissioner costs. They negotiated a pay 2 reduction with those folks. They also offered to terminate one drug court case managers, 3 but the administration decided to transfer the entire drug court to the mental health tax 4 fund. There are other modest reductions. 5 6 Caskey- Schreiber asked about not using mental health tax fund dollars to support 7 existing programs. Desler stated they can use the funds to supplant federally- funded 8 programs. 9 10 Caskey- Schreiber stated the advisory committee should have decided how to use 11 those tax funds. 12 13 Fleetwood asked about conflict cases. Jackson stated those cases are reduced 14 because of Public Defender and closer scrutiny of what is really a conflict. For the first time 15 in his history, they are disposing of more felony cases per year than are filed. That is a 16 result of the fast track, border impact initiative. 17 18 Fleetwood asked if they've changed the definition of what is a conflict. Jackson 19 stated they have, to some extent. They have also refined the codes for professional 20 conduct. 21 22 Nelson asked about the backlog. Jackson stated it is incremental. They are working 23 on reducing the backlog. He explained the process for reducing that backlog. 24 25 (Clerk's Note: The Committee took a lunch break from 11:56 a.m. to 1:30 p.m. End 26 of tape two, side 8.) 27 28 Assessor 29 30 Keith Willnauer, Assessor, stated he is aware of the economic situation. Every 31 taxpayer is amplifying the significant value to their own cash flows. Therefore, the County 32 must focus on core values, priority services, and highest value return. He will bring 33 everything forward he can to answer the community's needs and demands. He will assist 34 the Executive and Council to address tough financial times. 35 36 The Assessor's Office has the same number of employees as it had in 1974. There 37 has been no change in FTE's in 12 years. During that time, the number of property 38 accounts increased by more than 43,000. The Assessor's Office hasn't had a supplemental 39 budget request in 16 years. In 16 years, the department generated more than $532 million 40 in property tax revenue to the County. 41 42 There is little discretionary budget surplus each year. They routinely spend 98 43 percent of their budget. The discretionary spending is 3.9 percent of the budget, which is 44 extremely low. All ASR's are for current service delivery maintenance. There is no 45 substitute for statutorily required services. When service providers present his office with a 46 cost increase, he has to absorb that increase in discretionary spending or bring the 47 additional cost forward as an ASR. 48 49 Four of his ten ASR's are due to predatory charging increases to the Assessor's Office 50 for interaction with other agencies, such as recording fees to the Auditor's Office. One 51 example is that he is required to record documents in the Auditor's office. Without budget 52 support now, and with little discretionary spending, he may approach the Council later with 53 a supplemental request. They are not service expansions, increases, or discretionary. 54 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 12 1 Brenner stated she would like to know the specific functions in each department that 2 are mandated by statute. That would help her decide what takes priority. Willnauer stated 3 statutory reference to functions is in the budget. 4 5 Nelson asked about the Department of Licensing increase. Willnauer stated there is 6 an arrangement to access their online web data to track mobile home titles and movements. 7 The Department of Licensing decided to charge a much higher fee to use that database. To 8 track this without the database, he would ask the Auditor's Office to research that 9 information. The Assessor's Office and Auditor's Office each have a different agreement 10 with the Department of Licensing for that database access. 11 12 Nelson asked if each department has to have a separate license. Willnauer stated 13 that's the way it is. He doesn't know if that's required. 14 15 Nelson asked about the Auditor's document recording fee. Willnauer stated the 16 Assessor is required to record certain documents. The Auditor charges the Assessor for 17 recording those documents. 18 19 Nelson asked what appraiser field tools are. Willnauer stated they are replacement 20 tools such as measuring tapes and cameras, which are getting more expensive. 21 22 Desler stated the budget for the Assessor's Office is over $2.5 million. The request 23 for $8,700 is an increase in certain accounts. There isn't enough money to do all the 24 increases that everyone wants. Mr. Willnauer is conservative, but there isn't money to 25 support his requests. There are no proposed reductions in staff. Other Assessor's Offices 26 around the state are all reducing their staffs. 27 28 Willnauer stated most counties are in worse fiscal condition than Whatcom County. 29 30 Nelson asked if he is able to find these costs within the budget. Willnauer stated he 31 will do his best to do what they can. These are already cuts into existing statutorily - 32 required functions. If he can absorb the cost, he will. If not, he will be back with a 33 supplemental budget request. 34 35 Brenner asked if other Assessors in the state have maintained the same staffing 36 levels since 1974. Willnauer stated they are similar. The plight of most counties is similar. 37 His situation is not as dire as others statewide. 38 39 Crawford stated the department budget is $2.5 million. Of that, over $350,000 goes 40 to supplies and other services and charges. He asked if technology has assisted in 41 efficiencies to keep staffing low. The Assessor and Treasurer are converting to a new 42 accounting system. That will allow the County to have a one -year assessment cycle. He 43 asked how that would affect staffing in the next two years. Willnauer stated it's an 44 enterprise project. Newer technologies with implementation of annual revaluations results 45 in reduced staffing. Transition incurs an additional cost. Annual revaluation is a higher 46 quality assessment system. There are expenses associated. In the long run, the County 47 will come out ahead. 48 49 Brenner asked about the amount listed under other services and charges. Bennett 50 stated those are expenditures that aren't otherwise explicitly identified. That account 51 structure is established in the budget, accounting, and reporting system (BARS). He will 52 provide more detail. 53 54 Brenner asked to see that breakdown for each department. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 13 1 2 Willnauer stated his budget is three categories, wages and salaries, administrative 3 cost allocations, and the rest is his discretionary spending. 4 5 Brenner stated she would like to see what the departments pay to the administration 6 for administrative things that are outside the departments' control, such as building fees. 7 8 Treasurer 9 10 Steve Oliver, Treasurer, stated the only approved ASR is to reduce 1 FTE. He 11 volunteered that reduction to help the County meet its budget goals. With the existing 12 workload, he's comfortable with reducing that position. With the efficiencies gained from 13 technology, the Treasurer's Office has gone from 21 FTE's to 15 FTE's. That's a substantial 14 gain that can be directly attributed to investment in good technology. He will work closely 15 with the Assessor and Executive's Office to acquire new technology in the next couple of 16 years that will hopefully afford more efficiencies in his operation. 17 18 The FTE reduction does limit his ability to take on new endeavors. There was 19 discussion about his office providing technical support for the onsite septic (OSS) low - 20 interest loan program. If that is a Council priority that moves forward, he is concerned 21 about whether he can absorb that into existing operations. 22 23 With the legislature in a long session next year, he expects to see a number of 24 proposals coming forward to provide relief to taxpayers, such as allowing monthly or 25 quarterly tax payments. Those options generate a lot of administrative costs for the 26 County. It would be additional work to collect the same amount of money. His office 27 supports not only the County, but another approximately 100 entities in the county. The 28 County bears the entire cost of the Treasurer's Office, even though the other districts and 29 State benefit from his office. 30 31 He agrees with Mr. Willnauer regarding the new system for the Assessor and 32 Treasurer. He appreciates the County Executive's support and Council's support for that 33 project. 34 35 The County must have a minimum general fund balance necessary to cover the 36 County's expenses from November to April, when the County receives property taxes. That 37 need is significant. It underpins many budget discussions and the timing of expenditures. 38 It is a very important issue to maintain the County's financial health. 39 40 Up to this point, the County's sales tax has been flat. That's okay right now. The 41 destination -based sales tax is new. He described how that process works. The County may 42 see improved revenues from the delivery of retailers. It may soften impacts from the 43 declining economy. 44 45 Investment markets have been very volatile this year. It's difficult to forecast 46 investment income for 2009 and 2010. A number of things may affect the County's 47 investment income next year, including the County's potentially dwindling fund balances. 48 They don't generate investment income from revenues. It is generated from fund balances, 49 which are significant to the County's financial health and credit rating. 50 51 He supports the Executive recommendation to provide lending capacity among 52 County funds. Those are appropriate to the extent that they have funds with excess 53 capacity. 54 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 14 1 Brenner stated the funding for the low- interest loan program for OSS was supposed 2 to be a cost of the Health Department. That money has to be borne by the Health 3 Department, or the administration needs to come up with another way, other than 4 siphoning it from the Treasurer's Office. If they have to, reduce a new OSS staff person 5 instead, to make sure they have a way for people to upgrade their systems. It's more 6 important to solve problems that exist, rather than going to look for new problems. Get 7 that program into the budget. Oliver stated other counties have loan programs, with 8 associated workloads and issues. It can require a significant level of work to get the funds 9 flowing for their intended purposes and also protect the County's interests. 10 11 Brenner stated two other counties that have this in place told her that it hasn't been 12 a drain and the State has provided funding. The County Health Department has had to pass 13 up State funding. Oliver stated he would lend his expertise where he can if it is a County 14 priority. Be aware that he's concerned about the potential resources necessary to fully 15 administer a program. 16 17 Crawford stated he hasn't heard any concerns about staffing levels at the counter. 18 He asked if the Treasurer's Office can provide the same level of service with one less staff 19 person. Oliver stated that during the last four or five years, they used to get lines out the 20 office of people who were paying property taxes. They don't get those lines like they used 21 to. There are other payment options available now. From time -to -time, transactions that 22 take time do come into the office. The position that will be cut is a clerical position primarily 23 responsible for customer service at the counter and on the phone. 24 25 Crawford asked if the County is obligated to provide passport services. Oliver stated 26 they are not obligated to provide that service. It has been a financially beneficial service. 27 Last year, they processed 3,000 applications. The County gets $25 each. It takes about 28 five minutes to process the application. It takes about 1.3 FTE to process all the 29 applications. 30 31 Brenner asked if they make more than the service costs. Oliver stated that at the 32 least, it is revenue neutral. It's probably been revenue positive for the County. 33 34 Weimer asked the FTE percentage the Treasurer's Office would need for the OSS 35 program. Oliver stated it's difficult to estimate. It probably has to be a .5 FTE, according to 36 what neighboring counties are doing. 37 38 Brenner stated they budgeted for three new fulltime positions in the Health 39 Department for OSS technical stuff, of which this is. She would rather an FTE work on OSS 40 than passports. Oliver stated that as funding goes forward to fund a possible loan program, 41 they will have the opportunity to discuss the administration of that program, and who would 42 be responsible for the different aspects of the program. 43 44 Nelson asked the amount of the general fund balance they need for wants and 45 warrants. Oliver stated $8 million is the bare minimum for the fund balance. 46 47 (Clerk's Note: End of tape three, side A.) 48 49 Nelson asked if all the wants and warrants come in at the same time. Oliver stated 50 payroll is the biggest County expense. They will take a closer look at the timing of when 51 things are paid organization -wide to smooth out the cash flow. As fund balances draw 52 down, it may impact their investment strategies. 53 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 15 1 Weimer asked about implementing the new Assessor - Treasurer system during this 2 budget cycle. Oliver stated the existing system now is completely unsupported. If there is 3 a failure or a significant legislative change, that type of event would be devastating. There 4 is not a more core function in the County than assessment and collection of taxes. Most 5 other counties have gone through two or three systems in the 26 years that Whatcom 6 County has had this system. 7 8 Planning and Development Services 9 10 David Stalheim, Planning and Development Services Director, stated the Planning 11 and Development Services Department was revenue neutral until 2005. Expenditures 12 began to increase and revenues decreased. The last few years, revenues have been flat. 13 However, revenues are beyond what was forecasted to come in. The proposed budget 14 reduces expenditures and increases revenues to close that gap. 15 16 One goal was to look at more fee - recovery goals. Traditionally, the Building Services 17 Division has realized 100 percent fee recovery. The other permitting functions, such as 18 current planning, zoning, subdivisions, and environmental permitting are not self - 19 supporting. They decided to consider permit fee recovery goals. The proposal was for the 20 Building Services Division to continue to realize 100 percent fee recovery, zoning 21 subdivisions would realize 75 percent fee recovery, and environmental permitting would 22 realize 75 percent fee recovery. The permitting division is getting close to 100 percent fee 23 recovery. They are meeting their goals. Therefore, one ASR is for fee increases to achieve 24 fee recovery. To continue to meet those targets, adopt a fee schedule with those fee 25 increases. If they don't support the fee increases, the department would need more general 26 fund support or would have to cut programs. 27 28 There are ten vacant positions in the department currently. An eleventh position, 29 which was authorized in last year's budget for a plans examiner, was never recruited or 30 filled. Budget reductions include seven fewer FTE's, including the eleventh position. A .5 31 FTE has been transferred to the Public Works Department. The reductions in the 32 department include 2.5 exempt and four permit center positions. A vacant position for 33 special projects will not be filled. A management position also would not be filled. Of the 34 vacant positions that would be filled, there are four positions that are a code enforcer, a 35 clerk, the information technology (IT) application specialist, and a natural resource 36 permitting position. He read his approved ASR's. He submitted quite a few ASR's that 37 weren't approved. 38 39 Crawford asked for information on the financial impacts to increasing fees in the 40 unified fee schedule, according to certain scenarios. He would like to compare the new fee 41 structure with the old fee structure. Stalheim stated he can provide that information. 42 43 Weimer stated fees are a disincentive to get people to do the things they want, such 44 as develop farm plans. He asked the fees in other jurisdictions. Stalheim stated he does 45 compare fees to those in other jurisdictions. There were a few fees they did not try to 46 recover because of goals, such as open space applications. The same would be true with 47 farm plans. 48 49 Brenner asked why there is a separate line item for travel, education, and training 50 and one line item for registration and tuition. She asked how they're different. Bennett 51 stated the travel item is travel just for education and training. There is also a registration 52 item. 53 Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Brenner asked why they aren't eliminating travel in this high -tech age. Other jurisdictions are eliminating travel. She would like to see what the County spends for travel overall, across all departments, each year. Stalheim stated the amount listed is how much they are reducing in those items from the overall budget. Brenner stated eliminate all travel for education. Stalheim stated travel, training, and education is critical to the success of his department. They only have about $150 per person for training. Fleetwood stated that sometimes, a person has to travel to training. Brenner stated there are usually alternatives. She asked how much is spent on travel. She would like that information for all departments. Desler stated he will provide that information. Brenner stated she would like that information for all departments. Desler stated he will do his best to provide that information. Crawford stated it seems the fee increase is about 30 percent. Stalheim stated some fees could increase 100 percent and other fees could increase two percent. Building fee increases are smaller than 30 percent. The percentage there would be much smaller. The more significant difference in the fee structure, which is by cost center, is increases for building services, planning, and environmental permitting. He described the adjustments. The information is on page 464 of the ASR binder. Weimer stated Council priorities have been cut. He asked if there are other plans for providing those priorities. Stalheim stated there are no other plans. The Public Works Department Stormwater Division will work on some of those priorities. He doesn't have any ability other than with existing staff to work on those things. He has three staff to work on watershed issues, and they will continue to work through the priorities with those staff. Brenner stated she would rather spend travel money on contracting the low- impact development ordinance. One of the authors of the State manual lives locally. Staff doesn't have to do these one -time things. They should be contracted out. Nelson asked if they have considered contracting services for things that aren't budgeted. Stalheim stated the ASR's not approved were for those contracted services. Crawford referenced ASR 151 and ASR 153. He asked what the Planning staff would do for those items that would be different from what the Public Works Department's Natural Resources staff would do. Stalheim stated they would tie the stormwater and low- impact development issues into the development codes. The Public Works staff approach it from the perspective of capital programs and retrofits. They are approaching it from the permitting function, which the Public Works staff don't do. Nelson asked if the administration is required by the Charter to bring forward code changes that the Council requests, such as code changes for clustering. Stalheim stated he doesn't know. The clustering changes went to the Planning Commission. The Planning Commission said it didn't agree with the Council, and asked to study it. The Council agreed to study it, using professional services. He was ready to do that in 2008, until budget issues came up. It was decided they would postpone professional services, and submit them as part of the 2009 and 2010 budget proposal. If it's not in the budget proposal, he would have to ask Council whether it wants to go forward with studying it or just get a Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 17 1 formal recommendation from the Planning Commission for Council. The previous direction 2 was to study options for clustering. 3 4 Weimer stated there is $300,000 to $500,000 budgeted for consultants, while they 5 plan to get rid of staff. He asked if it is better to hire the staff at a lesser cost. Stalheim 6 stated the staff positions are already vacant. These consultant costs are for one -time 7 expenses, not long -term expenses. Some of the work they plan to do is unique and best for 8 consultant services. 9 10 Weimer asked if all the positions they are losing are currently vacant. Stalheim 11 stated they are, except one position that would be laid off. 12 13 Crawford asked how these reductions would affect the user experience at his office. 14 Stalheim stated there is a challenge to provide services with fewer staff. Permits are down, 15 but that doesn't mean staff activity is down. People are still calling. The biggest impact is 16 the reduction of two FTE's in permit center. Some of the customer service at the front end 17 may be slower. Positions that will be filled may be able to help that activity. There will be 18 caution in refilling positions because of revenue issues. 19 20 Crawford asked if the status quo will be maintained from a user perspective if those 21 positions aren't filled today. Stalheim stated that is correct. The service level will remain 22 the same as it is right now. There will be no reductions to long -range planning. 23 24 Crawford asked about the application specialist position. Stalheim stated it is an IT 25 position they'd like to fill, but different from what it was before. 26 27 Crawford asked about citizen interaction and forms being available on the County 28 website. He asked if they plan any other enhancements. He prefers that more information 29 be put online, especially maps and aerial photos. There is a long -term benefit to that. 30 Stalheim stated a goal is to increase the department's web presence. They are getting 31 there. He agrees that there are benefits. The new Treasurer and Assessor system will allow 32 a more geographic based system. 33 34 Cooperative Extension 35 36 Craig MacConnell, Cooperative Extension, submitted a handout and read from the 37 highlighted sections (on fi /e). 38 39 (Clerk's Note: End of tape three, side 8.) 40 4.1 MacConnell continued to read the highlighted sections of the handout. 42 43 Brenner asked for a copy of the statistics that show the programs have proven 44 benefits. 45 46 MacConnell stated Washington State University (WSU) and Whatcom County have 47 been partners since 1916. WSU is grateful for that partnership. 48 49 Brenner asked why they haven't considered doing conservation program on 50 agricultural lands (CPAL) through Cooperative Extension. MacConnell stated they had a 51 successful volunteer program years ago for small forestland owners. It's possible to do that 52 with CPAL, if it doesn't look like regulation. It's possible to use the forest stewardship 53 model and develop that for small landowners. The small non - forestry landowners have 54 been traditionally resistant to do that kind of stuff. Forestry landowners are excited to do Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 18 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 those kinds of things that actively help them be better timber managers, which means more money in their pockets. They would need ideas on how to entice the farmers in. Weimer stated the Conservation District was doing it and has the system all set up. Nelson stated start working with the schools on the nutrition program. Get local produce into the schools. MacConnell stated they are managing the federal food sense program in the school districts. There are obstacles to getting local produce into the school lunch programs. Most require a $3 million liability insurance policy of the farmers for product liability. Most farmers can't afford that. Drew Betz, Cooperative Extension, stated they are working on community food assessment with the schools. There has been State legislation to encourage farm -to- school programs. They will describe opportunities and barriers. She would like to talk to the County Council's agricultural committee. They are working with Susan Sloan at the Health Department. Crawford asked about the 25 percent cut in services and charges. MacConnell stated the integrated pest management (IPM) program will be eliminated. It was initiated in 1995. It was first funded by the flood fee and then the general fund. It did research on successful ways to identify and manage pests by reducing pesticides to preserve water resources. He was given a one -time, two -year ASR four years ago, which was renewed two years ago. The administration decided not to renew it this year. He has mixed feelings about it. Times are tough. They have other grant funds that will continue the program for a year. Then it will go away. Crawford asked about a 17 percent cut for the strengthening families program. Betts stated they are on a two -year contract with the State Department of Health. That is renewable up to four times. The money comes from the federal government for prevention. She suspects they will get more funding in June. They get money from other grants. It's not a cheap program to fund. Because she doesn't have that money contracted yet, she couldn't put it into an ASR. She hopes to come back with a supplemental budget request mid -year. The money for that program is pass- through funds from the federal government. There is no County money involved. The budget shows all the money that Cooperative Extension was guaranteed from other agencies, which the County managed. Crawford stated the starling program is not being funded. MacConnell stated the starling program has been done by Agricultural Preservation Committee (APC). They are not going for starling funds this year because of the County's hard time. From his perspective as a scientist, the starling program is a feel -good program. It kills a few starlings. In the aggregate, it doesn't do hardly anything. Henry Bierlink doesn't agree with that perspective, because farmers like the traps in their fields. The starling population in this community is close to one million. They are highly fecund. The population absorbs those losses from the traps instantly. Crawford stated it's about the capacity of the environment to hold the population, not about how many they catch. Executive Dewey Desler, Deputy Administrator, stated the Executive's Office maintains the same level as the last two years. There is a modest reduction in staff. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Brenner asked the number of staff in the Executive's Office that are under other departments. Desler stated that information is on page 81 of volume II. Brenner asked how many staff have offices in the Executive's Office. Desler stated there are seven physically located in the Executive's Office. Crawford asked if the Executive is currently 101 percent of the Prosecutor's salary. Desler stated he believes so, but it will not be in the future. There was a change in the Prosecutor's salary on July 1. The Prosecutor indicated that unless and until there was action to modify the resolution, that existing resolution was in effect. Crawford stated there is a communication problem. The Council thought it approved a lower salary for the Executive. Not one councilmember realized the Executive's salary was kept at 101 percent. The County Council sets the Executive salary. The Council passed a resolution that said the Executive would remain at 101 percent for 2008. Desler stated the resolution on July 8 said the Executive salary would not remain at 101 percent. Brenner stated they are allowed by law to have the Executive's salary be seven times what the Council's salary is. They need to consider salaries in light of the budget. Revisit those resolutions. From now on, those resolutions need to come forward during or after the budget is approved. Do those resolutions under Other Items in the Finance Committee, not through the Consent Agenda. The Council can revisit those resolutions. Crawford stated this is about the July 8 resolution. The Council agreed the Executive would receive an percentage increase the same as the other elected officials. It's a matter of trust. He should have realized what the Council approved on July 8. The Executive received a 17 percent increase since 2007. Legally, the Council passed that increase, but it wasn't the Council's intent, which was clear. Brenner stated those kinds of discussions do not belong in executive session, according to an informal decision by the Assistant Attorney General. She is asking for a formal decision. Those discussions are supposed to be in public. It's about all kinds of employees who aren't part of a bargaining group. Crawford asked what the Council wants to do about it. Brenner moved to rescind the resolution the Council approved last Tuesday. Crawford stated they need clarity on which resolution is the issue. He asked what the Council would have to do to review the Executive's salary. Desler stated the Prosecutor should advise them on the proper method to do that. It involves the Charter and other laws. He suggests they have a discussion with the Prosecutor and Executive. Crawford stated he would like to have that discussion on Tuesday. Brenner stated the Charter is clear about how, the Executive's salary is based. A discussion with the Prosecutor would have to be in executive session. The Charter is clear that the Council salary is 15 percent of the Executive's salary. The Council has frozen its salary for a number of years. They are allowed to have the Executive's salary be seven times the Council's salary. Crawford stated the Charter says that the Council may be compensated no more than 15 percent of the Executive's salary. It does not say how much the Council will get paid. It just puts a cap on the amount the Council is paid. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Brenner stated turn - around is the same thing. The Council can cap the Executive's salary at seven times the Council's salary. Crawford stated they cannot do that. He is against the motion. They don't know which resolution should be rescinded. He's not convinced that the 2009 salary resolution is the one to rescind. The administration said it is willing to discuss this on Tuesday. The Council should be informed before taking action. Brenner stated the resolution passed last Tuesday hasn't taken effect and has no force of law. Get back to square one and revisit it. Fleetwood stated he wants to read the resolution and refresh his memory before rescinding it. Nelson stated he is in favor of the motion. They must have a clear understanding of what they voted for. Weimer stated he is against the motion. It is for 2009, so it makes no difference whether they rescind the resolution today or next week. He agrees that the Executive's salary is more than what the councilmembers thought. Rescinding the resolution doesn't provide any benefit at this point. Brenner stated rescinding the resolution makes a clear statement that this isn't what the Council intended. They can always re- approve it. They should start over. Kelly stated one issue is whether or not the discussions should take place in executive session. He asked if the discussion next Tuesday should take place in executive session. He was not aware there was a dispute in terms of how the language is interpreted. If this Council is in dispute with the Attorney General's office, he'd like to know about it. That legal staff is there to advise them from getting into these types of problems. They're part of the problem. Nelson stated they are talking about a generic position and a certain funding level. He doesn't know why it would have to be in executive session. Motion failed 2 -4 with Brenner and Nelson in favor and Caskey- Schreiber absent. Crawford stated have this discussion with the Executive next Tuesday. The Council concurred. Desler stated he has a memo from the Prosecuting Attorney about executive sessions. He will provide a copy of that memo. Crawford stated the meeting should focus on the issue of the Executive's salary. The executive session question is an over - arching, longer -term issue on which they need clarity. However, focus on the single issue of the Executive's salary. (Clerk's Note: End of tape four, side A.) Brenner stated she will write a resolution that goes beyond the Executive. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Administrative Services Dewey Desler, Deputy Administrator, stated staff in the department will be reduced from 81 to 75. This budget is reduced by five percent. He described the duties of the department. Much of the budget is divided into formulas that spread the cost out to departments, so they properly assign and collect costs from fees and grants. That is a common, accepted practice. Many IT functions, human resources functions, and space costs are charged to the departments. Crawford asked if there will be cuts in custodial services. Desler stated they will reduce costs in IT, including a roving scanner position. A vacant geographic information system (GIS) position won't be filled. An administrative assistant position in the Finance Division won't be filled. Two custodian positions will be reduced. They won't be cleaning as much. One person, the Communications Manager, is retiring and the position won't be filled. Crawford asked about large increases in the Facilities Management Division in 2006 and 2007. Desler stated they were one -time expenses. He will provide more information on what those expenses are. Crawford asked what is planned for courthouse security in the long -term. He asked if they will continue to support the kiosk. Desler stated security and the kiosk will continue. The courthouse deputy will also continue. Crawford asked if they have not had any substantive security issues, with one exception. He asked if they have considered cutting out the magnetic security equipment and increasing the deputy presence to be more reactive. Desler stated they can consider it. It is something that is in the proposed budget. Nelson asked which ASR's from the Administrative Services Department weren't approved. Desler stated the information and ideas developed by his managers aren't necessarily put forward into ASR's. They work with him to make reductions. Nelson stated those Administrative Services staff should have an opportunity to put forward ASR's to the Council. Desler stated people come to him every day asking for more. He has to balance everything. Brenner stated they are keeping top staff in the Administrative Services Department, and are cutting front line staff. Part of public health is maintaining clean facilities. She's concerned about cutting custodians. She would rather cut one management position.- The custodians have kept the problems with this building at bay. Desler stated there will be no changes in courthouse operations. They will go to vacuuming and emptying garbage cans three days per week in outlying buildings. All public areas and bathrooms will still be cleaned daily. They are also cutting a highly -paid managerial position in the Administrative Services Department. Council and Hearing Examiner Dana Brown - Davis, Clerk of the Council, stated she's reduced the budget by $36,000. The two biggest cuts are $14,000 from travel and $12,000 for videotaping Council meetings. One councilmember will still be able to go to Washington D.C. Everyone else will still have $500 left for travel. The travel fund used to be $1,500 until the 2007 -2008 Budget, when it increased to $2,500. Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Brenner stated she is opposed to cutting the videotape of the Council meetings. They must make sure people have access to seeing the Council meetings. Many people watch the meetings. It saves money because people don't have to travel to the Council meetings. It also keeps people from being even more disenfranchised. She will find the money for this service. The Council Office is more than a separate department. It is being treated like any other department. Most functions can't be cut because they are mandated. Weimer stated the cut was made because the office also had to meet it's 3.6 percent reduction that all the other departments have had to meet. Nelson asked if councilmember salaries are frozen. Brown -Davis stated she can look into that information. Nelson stated he would like to see the dollar amounts that they are cutting. If they've already made cuts to Council salaries, and they've reached the 3.6 percent reduction, there may be room to add other expenditures. Brown -Davis stated the dollar amount of Council salaries is listed for each year in the Council's salary resolution. The dollar amount is listed for each year, and the dollar amount cannot go over 15 percent of the Executive's salary. The councilmembers do get that raise every year. Crawford asked about the shoreline management program. Brown -Davis stated that reduction shown should be deleted. They should be able to codify the program this year. OTHER BUSINESS There was no other business. ADJOURN The meeting adjourned at 4:18 p.m. Q_ ]ill Nixon, Minutes Transcription `�o�vcl�4,pproved these minutes on November 12 , 2008. HAl'•:� WHATCOM COUNTY COUNCIL �+;' COVN CO' C WHATCOM COUNTY, WASHINGTON • Ty : Edna BYo • _ av1s, C(�A�ncil Clerk Ward Nelson, cting ommittee Chair Special Committee of the Whole - 2009/2010 Budget, 10/23/2008, Page 23