HomeMy WebLinkAboutSpecial Council November 4 2008 am1 WHATCOM COUNTY COUNCIL
2 Special County Council
3
4 November 4, 2008
5
6 Council Chair Carl Weimer called the meeting to order at 10:50 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
18 1. ORDINANCE ADOPTING THE 2009/2010 WHATCOM COUNTY BUDGET
19 (AB2008 -227E)
20
21 Nelson stated his instructions for this meeting. First, look at funding mechanisms
22 and funds. Then look through the programs in different departments. Discuss non -
23 departmental items last.
24
25 Kelly stated there should be a set budget process.
26
27 (Clerk's Note: The Council took a lunch break from 11 :00 to 12 :10 p.m.
28 Councilmember Nelson chaired the meeting.)
29
30 Nelson stated there is a proposed cut in the conservation futures fund and an
31 increase in property tax. However, nothing is in the budget at this time.
32
33 Dewey Desler, Deputy Administrator, stated the proposal is to reduce the
34 conservation futures fund in the year 2010 by $950,000. A second proposal is to increase
35 the banked capacity of the general fund by $700,000. The net decrease is $250,000.
36
37 Brenner stated it's still a property tax increase.
38
39 Caskey- Schreiber moved to remove the proposal to delete conservation futures
40 fund. Leave the fund as it is and as the voters approved it. Come up with an organized
41 plan to spend that money. She plans to use the funds for the purchase of development
42 rights (PDR) and transfer of development rights (TDR) program, in addition to some of the
43 Lake Whatcom reconveyance.
44
45 Brenner stated the proposal doesn't eliminate the conservation futures fund. The
46 voters approved some leeway for whatever the Council authorizes. The vote doesn't
47 preclude the Council from raising or lowering the conservation futures amount.
48
49 Weimer stated the Council can't raise anything by more than one percent.
50
51 Kelly stated he proposes acquisition of riparian corridors along salmon streams as
52 one alternative to consider, rather than trying to buy large tracts of lands. Include purchase
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, Page 1
of riparian buffers in the program. Possibly combine it with the Conservation Program on
Agricultural Lands (CPAL) program.
Nelson stated there was a strong emphasis on riparian purchases around Lake
Whatcom, but they didn't have much success. The City and County both made those target
areas. Budgeting the money doesn't mean that will happen.
Nelson asked the amount in the conservation futures fund. Desler stated there is
about $3.45 million. The fund balance has always been healthy.
Nelson stated he agrees that fund has always remained healthy. In an economic
downturn, they can use it to buy riparian or agricultural land. If they are going to develop
programs, make sure the public knows what the program is for in which they are collecting
taxes. He supports the administration's proposal.
Caskey- Schreiber stated the proposal is short- sighted. The agricultural industry is
the best example of a sustainable local industry. The farm gate value is over $300 million.
That number keeps increasing. The world is facing a food crisis. The solution is for each
community to maintain their farmland base. The PDR program is the only tool the County
has to give farmers a voluntary option to give up their development rights. The program is
very successful. The conservation futures fund has money, but they went a year without
staff for the PDR program. Now that they have staff for the program, they can increase
participation and use the fund to protect farmland.
Brenner stated that fund has always had plenty of money. While the economy is
bad, it doesn't hurt to cut back some on the fund.
Weimer stated he supports the motion to leave the levy rate as it is.
Fleetwood stated he supports a broad use for the fund. He supports the motion as
long as they don't limit the use of the fund.
Motion carried 4 -2 with Nelson and Brenner opposed and Crawford absent,
Nelson moved to remove the property tax increase from the 2010 budget.
Caskey- Schreiber stated there are other options. The road fund takes in about $21
million per year. If they cut that fund by the same amount, it is one -half percent. The road
fund can go after real estate excise tax (REET) 2 funds for projects. This won't significantly
impact any of the projects that are lined up to go.
Brenner stated don't raise any taxes at this point.
Crawford stated the motion is to decrease the property tax, line item 4311, by
$700,000 in 2010 for the road fund, as referenced on page 72 of volume 1. Replenish that
$700,000 with real estate excise tax (REET) 2 funds.
Frank Abart, Public Works Department Director, stated they are talking about a
$750,000 reduction henceforth. The ending fund balance, which he's cautioned them about
in the past, will be about $3.7 million at the end of 2009 and significantly less than that in
2010. That doesn't consider any disasters that may take place over the course of the next
couple of years. Reducing the road fund will be significant. They will have to consider
further reductions in things like vegetation management, chip sealing, and other programs.
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, Page 2
1 They may also have to reducing staffing and other road fund activities. They are already at
2 the point where they won't be doing any improvements unless they're completely paid for
3 by federal money.
4
5 (Clerk's Note: End of tape one, midpoint through side A. Begin tape two, side A.)
6
7 Brenner asked the amount of time and money spent on chip sealing. Abart stated
8 his staff sent that information to the Council. He explained the process and purpose of chip
9 sealing. They are already behind in chip sealing the roads.
10
11 Brenner stated former Councilmember Tom Brown, a career Department of
12 Transportation employee, believed that most chip sealing is a complete waste of money.
13 The place to use chip seal is on steep areas and sharp curves, for traction. Otherwise, it
14 makes negligible difference, according to Mr. Brown. Abart stated he respectfully disagrees
15 completely.
16
17 Crawford asked the impact of reducing the road fund "instead of the proposal.
18
19 Steve Oliver, Treasurer, stated the County road fund levy is assessed only against
20 unincorporated residents. The property tax is assessed to all residents. A provision in law
21 laws the County to divert road funds to the general fund for law enforcement purposes. He
22 is not sure if they are at their statutory maximum to do that.
23
24 Desler stated they have been diverting road funds to the Sheriff's Office for some
25 years to support traffic functions.
26
27 Brad Bennett, Administrative Services Department, stated the maximum allowed is
28 whatever the actual cost for the service is.
29
30 Caskey- Schreiber asked if those things affected in the Public Works Department
31 could be funded from the REET 2 fund. Abart stated he is concerned with the sustainability
32 of REET 2 given the economic conditions.
33
34 Caskey- Schreiber stated the estimates for REET 2 income is very conservative.
35 Economic Professor Hart Hodges believes that Whatcom County is holding its own. He
36 predicts a sales tax increase to be about one percent this year and one percent next year.
37 Home values have decreased less than anticipated. The real estate market has improved
38 from a year about by about five percent.
39
40 Abart stated he believed that his department and the Parks Department were
41 supposed to get some of the REET 2 money anyway, in a 60/40 split.
42
43 Nelson restated motion to remove the property tax increase in 2010.
44
45 Crawford stated he will support the motion as long as they find reductions. He
46 agrees this is not a good time to raise taxes. They have a large County government,
47 relative to the population.
48
49 Motion carried 6 -1 with Kelly opposed.
50
51 Weimer asked about interest income and in which funds they should go. Desler
52 stated the State Auditor doesn't see this as a compelling issue to address. The County's
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, Page 3
1 Treasurer, Finance Manager, and legal staff have looked into this and agree that this is
2 appropriate and legal.
3
4 Kelly asked how much interest the County generates in total. Desler stated the
5 interest amount is on page 33 of Volume 1. The estimate may actually be less, given recent
6 decisions by the Federal Reserve Board to reduce interest rates. They are carefully looking
7 at that.
8
9 Weimer stated switch the interest back to the flood fund, to the benefit of the flood
10 fund. Desler stated that amount may be about $100,000.
11
12 Oliver stated the County has about $105 million invested for the benefit of the
13 general fund, which isn't in the general fund itself. That generates about $3 million to $4
14 million annually in interest income.
15
16 Weimer stated deduct flood fund interest from the general fund and credit it to the
17 flood fund, in the amount of about $150,000.
18
19 Fleetwood stated include the Smart Trips program in the amount of $20,000 each
20 year for 2009 and 2010. Also include the Small Business Development Center in the
21 amount of $30,000 each year for 2009 and 2010, to be funded from the Economic
22 Development Investment (EDI) fund.
23
24 Kelly stated add staff for critical areas ordinance (CAO) enforcement to the general
25 fund, the CPAL program, and for enforcement of Drayton Harbor onsite septic systems
26 (OSS). He would need to know how many full -time equivalent (FTE) employees exist, to
27 know how many additional FTE's to propose.
28
29 Weimer stated he would like a description of the administrative cost allocation and to
30 know how the equipment rental and revolve (ER &R) fund works and certain discrepancies.
31 Ask each department to shave ten percent off of the ER &R interfund and ER &R fund.
32
33 Nelson stated the question is whether they can lengthen the replacement time
34 frames, so more money is available for the general fund. The problem is that there will be
35 increased maintenance costs.
36
37 Caskey- Schreiber stated have a policy to reduce County equipment purchases by
38 one -half of a percent.
39
40 Crawford stated add $7,000 to employee recognition and make it $10,000 total. Add
41 $65,000 to the Executive's contingency fund, for a total of $100,000 per year.
42
43 (Clerk's Note: End of tape two, side A.)
44
45 Brenner stated dd to the CPAL program in the amount of $110,000 per year for 2009
46 and 2010. Add $12,000 per year to videotape Council meetings. Add $12,000 per year for
47 the Sean Humphrey House. Add money to hire a County Council budget analyst. Trade an
48 FTE out of the Health Department and into the Treasurer's Office to set up and maintain the
49 OSS low- interest loan program. Add money for the friendly visitor program in the amount
50 of $15,000. Consider reinstating one more custodial position.
51
52 Nelson stated add $25,000 per year for the Whatcom Alliance for Healthcare Access
53 (WAHA).
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, Page 4
Caskey- Schreiber stated add $49,094 for animal control in 2009, unless the $12,000
fee increase is adopted by January 1, 220. Add $31,000 for animal control in 2010. Add
$886,000 for park improvements, funded just from REET II. Add deputy housing in Point
Roberts in an unspecified amount. Possibly add to the juvenile justice center in an
unspecified amount, approximately $320,000 per year.
Weimer stated add $50,000 per year for the food bank.
Nelson asked for a definition of the different levels of service options from the flood
fund.
Rebecca Craven, Council Policy Analyst, described what activities are included in
levels of service one, two, and three.
Weimer stated increase the flood fund levy by $.08 per $1,000 of assessed value,
which will generate about $1.6 million per year. Also, move toward creating a stormwater
district around Lake Whatcom, which should generate about $3 million, starting in 2010.
Caskey- Schreiber stated decrease dues for the Washington State Association of
Counties (WSAC) in the amount of $74,612. Decrease carpet replacement in the
courthouse, in the amount of $156,254 for 2009 and $46,038 for 2010. Eliminate health
promotion from the Human Resources Division in the amount of $10,000 each year. Reduce
the work week by one hour, for a savings of $500,000. Reduce by $30,000 the
implementation of the new Assessor system in 2010. Add $203,000 in revenue from sales
tax, which is a one percent increase from 2008, which Professor Hodges estimates as the
sales tax revenue.
Nelson stated remove $7,000 and $8,000 for the small potatoes gleaning project in
2009 and 2010. Remove $300,000 budgeted for the Lake Whatcom watershed land
acquisition /reconveyance.
Brenner stated cut three positions from the Finance Division to offset her proposal to
add a Council Budget Analyst. Cut the Executive's discretionary fund in the amount of
$35,000 per year. Cut one OSS staff person from the Health Department, so that position
can go to the Treasurer's Office for an OSS low- interest loan program. In the Public Works
Department, eliminate two Solid Waste Division staff positions. Eliminate the real estate
appraiser position. Eliminate 80 percent of all County travel and tuition, in the amount of
$400,000 per year for 2009 and 2010. Eliminate the press secretary position. She asked to
see the breakdown of fee increases in the Health Department and Probation. Eliminate two
more positions in the Parks Department.
Crawford stated eliminate two FTE deputies from the Sheriff's Office, preferably the
neighborhood deputies. Eliminate two FTE positions, probably front line staff, from the
Public Works Department. Eliminate two Health Department FTE positions, including the
septic inspector /design approval position and the prevention coordinator position. Only
eliminate those Health Department positions if it will benefit the general fund. Some of
those monies come from the State. Eliminate three FTE positions from the Planning
Department, preferably a long range planner, a current planner, and one building permit
staff. Eliminate courthouse security in the amount of $125,000. Eliminate Whatcom
Symphony funding. Eliminate Mt. Baker Theater funding in the amount of $5,000.
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, Page 5
Weimer stated do not fill four positions in the Public Works Department that are
currently vacant. Do not fill two positions in the Administrative Services Department that
are currently vacant. Cut the administrative service allocation by ten percent across the
board. Reduce the Executive's salary by $14,000 per year. Add the guardian ad litum
program back into the budget.
Brenner stated cut the chip seal program by 50 percent.
Nelson asked about the Health Department immunization program. He asked if the
Health Department plans to reduce clerical staff.
Regina Delahunt, Health Department, stated they will reduce one FTE in the clerical
area and one FTE position that is a public health nurse. It will result in a reduction in the
number of clinics that they hold. She described the program. The public health nurse FTE
to be cut is currently vacant.
(Clerk's Note: End of tape two, side 8.)
Weimer stated give this entire list to the administration, so they can present a
spreadsheet of information including a description of each item and budget impacts.
Fleetwood stated add the drug task force clerical support to the budget in the
amount of $55,300 in 2009 and $57,800 in 2010.
Weimer moved to delay any final consideration of the budget and all related
ordinances and resolutions to November 25.
Nelson stated they can continue this work session at the next Finance Committee.
He asked the administration to prepare materials ahead of time.
Motion carried unanimously.
Fleetwood asked about the Drug Task Force clerical support position.
Bill Elfo, Sheriff, described the position. There aren't any funds left in the drug fund
to fund this position. There are currently four vacant positions. One of those has been
offered. They need those positions to cover the basic 24/7 emergency response. If he has
to give up anything, he will give up the neighborhood deputies to support the basic
emergency response.
Caskey- Schreiber asked about the housing situation in Point Roberts for a deputy.
Elfo stated it doesn't make sense to pay rent or buy trailers that depreciate in value. With a
depressed real estate market, he suggests purchasing two houses on the open market, and
sell the existing property in Point Roberts. A number of homes are for sale in Point Roberts
now.
Brenner stated ask Point Roberts residents if anyone wants to offer a rental at a
reduced price so Point Roberts can keep its resident deputy. Someone will be interested in
doing that. They won't know if they don't ask.
Caskey- Schreiber asked if funding for jail medications can come out of the jail fund.
Elfo stated he believes that as long as the jail fund is at the 2006 level, it could. He would
need a legal opinion. They raised additional revenue in the jail fund by telling the public the
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, Page 6
County was going to construct a new jail. It wouldn't be completely honest. He hopes
there are other options. Also, they are going to use the salary from a deputy who is
currently deployed to Iraq to supplement some of the visiting nurses program.
Nelson stated reconsider and possibly revise the formulary before giving out more
money. Elfo stated they want to have a robust medication program to avoid an incident
similar to what happened in Skagit County, when someone is released from jail.
Weimer asked about cutting security in the courthouse. Elfo stated there are many
ways to defeat the screening. The one important security component in the courthouse is
the uniformed deputy that is assigned to the courthouse and responds to incidents.
Nelson asked about planned carpet replacement. Desler stated there is a carpet
replacement schedule.
Nelson asked about funding for the food bank.
Weimer stated the food bank requests support. The number of people showing up at
the food bank has grown astronomically. There may be legal issues with giving the food
bank money for food, but there are ways to do it legally.
Caskey- Schreiber asked about the cost for implementation of and training on the
Assessor's new computer system. Oliver stated that budget reflects soft costs of
implementation of the new system. Much of it is related to staff necessary to implement a
project like this. This is one of the most critical and complicated information technology
(IT) projects that the County has ever taken on. They've talked with other counties that
have gone through these projects. They assign key staff in the departments who will work
on the project nearly full time. They are also acquiring assistants from consultants to make
sure the product delivered is what the County contracted for. There is a number of
implementation costs. The project budget. is reasonable.
Nelson asked the impacts of reducing the employee work week by one hour per
week.
Karen Goens, Administrative Services Department, stated they could do it by mutual
agreement with the unions.
Weimer asked about the proposal to cut travel, training, and tuition. He asked if
some of the training is required. Desler stated some examples include training on certain IT
systems. People must be capable of performing those tasks, or else there will be failures.
The option of allowing employees to attend conferences and similar get - togethers has
ended. Most departments, as they built their 2009 -2010 budget, took reductions in those
categories.
Crawford stated Frank Abart and Jim Karcher recently traveled to Chelan to get
money for the Yew Street project from the Transportation Improvement Board (TIB), in the
amount of millions of dollars. It was a very narrow vote. It was their presentation to the
TIB that was the reason for the award. The Council should be cautious about cutting so
much of those funds. It's hard to know the impacts with an across the board cut.
Brenner stated staff can still come to the Council and request an additional services
request if something is that important.
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, 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
Wendy Jones, Sheriff's Office, asked if that item is 80 percent of the travel
associated training, and not just travel in general.
Brenner stated that is correct.
Elfo stated they use travel funds for extraditions, bringing prisoners back from out of
state, and for criminal investigations that go out of state.
(Clerk's Note: End of tape three, side A.)
ADJOURN
The meeting adjourned at 2:55 p.m.
Jill Nixon, Minutes Transcrilition
The Council approved these minutes on July 7 , 2009.
ATTE��t + + +►►►►i►►i��� °°
coy °-
�l N
T� •• '�.
s
Cana Brown �oSQ E n l Clerk
•• gSH11A •'
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
L. Ward Nelson, QAc&n4g'
Council Chair
Special Whatcom County Council - 2009/2010 Budget, 11/4/2008, Page 8