HomeMy WebLinkAboutSpecial Council May 15 20121
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WHATCOM COUNTY COUNCIL
Special County Council
May 15, 2012
CALL TO ORDER
Council Chair Kathy Kershner called the meeting to order at 1:00 p.m. in the Civic
Center Garden Room, 322 N. Commercial, Bellingham, Washington.
ROLL CALL
Present: Barbara Brenner, Ken Mann, Sam Crawford, Bill Knutzen, Kathy
Kershner, Carl Weimer and Pete Kremen.
Absent: None.
BUDGET PLANNING SESSION
The following people spoke and answered questions:
• Jack Louws, County Executive
• Dewey Desler, Administrative Services Department
• Brad Bennett, Administrative Services Department
• Perry Rice, Administrative Services Department
• Bill Elfo, Sheriff
Jack Louws, County Executive, gave introductory remarks about working
collaboratively and building a sustainable budget. He submitted, presented, and reviewed
the 2013 -2014 Budget Development Guidelines (on file). He described the current status of
the budget, including the beginning fund balance and projected ending fund balance of
$10,050,000. In the next three years, revenues will increase approximately one percent.
Salaries and health insurance will remain flat. No closure days have yet been negotiated.
There are obligations for step increases and law enforcement officers and fire fighters
(LEOFF) I costs, Medic One, and other miscellaneous expenses. If they continue the
present course with the same number of employees, they're overspending to the point that
they will only have $2.1 million in the reserve at the end of 2015. That's unacceptable.
They need an $8 million fund balance, or ten percent of expenses. His goal is to have a
minimum of $8 million at the end of 2015. They need a surplus of $2 million per year for
the next three years, through cutting expenses or maximizing revenue, to get to the goal.
There is not any more money.
Next year, one goal is to have six or more closure days. He prefers to have 12
closure days. A second goal is regarding the equipment rental and revolve (ER &R) fund,
which can save $200,000 to $400,000, depending upon the departments. The County has
395 vehicles. He described the exiting fleet and benefit of extending the life of the vehicles
and reducing the number of vehicles. The third goal is to transfer other dedicated funds
into the general fund.
Through these three goals, the County can make up the $2 million per year
internally. Departmentally, 2012 budget levels for labor and supplies must remain static.
Special Whatcom County Council, 2013 -2014 Budget, 5/15/2012, Page 1
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Brenner asked and there was discussion of dedicated funds that can be folded into
the general fund. She asked for a copy of each dedicated fund and it's budget code.
Mann asked and there was discussion of whether they can keep labor costs flat, or if
they don't know that yet. Louws stated any increase in labor costs yet to be negotiated will
have to come from department costs. Any labor increase will have to have a corresponding
cut elsewhere.
Brenner stated don't purchase any nonessential items the rest of this year unless it's
through the budget process.
Weimer asked and there was discussion of whether they anticipate needing any new
positions, such as a new Superior Court judge, that will require a decrease in other
positions.
Kremen asked and there was discussion of whether they've factored in reductions in
funding from the federal government and how healthcare costs can remain static for three
years.
Brenner stated and there was discussion of not having across - the -board cuts, if cuts
become necessary.
Kershner asked and there was discussion of consolidating services or facilities and
finding public partnerships that can do work the County is doing.
Crawford asked and there was discussion of state funding of the Women, Infant, and
Children (WIC) program.
Brenner stated also consider consolidating departments.
Louws referenced and read through the guidelines.
Crawford asked and there was discussion of whether the administration is asking the
Council to agree that the ending fund balance be $7 million through the next biennium.
Brenner stated and there was discussion of how the County must keep emergency
funds on hand in case of an emergency.
Crawford referenced and there was discussion of the general fund, flood fund, and
road fund.
Kremen asked and there was discussion of preserving the County's bond rating.
Louws described and there was discussion of using one -time funds for capital
improvements and repairs, making technology improvements, and identifying the financial
impact of building a new jail. Regarding revenue, continue to transfer other funds into the
general fund as they've done in the past, including 15 percent on the conservation futures
fund that has been transferred to the general fund since 2009.
Brenner stated any money used from other dedicated funds, must be used for
essential items, especially the real estate excise tax (REET) fund.
Special Whatcom County Council, 2013 -2014 Budget, 5/15/2012, Page 2
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Crawford asked and there was discussion of plans for transferring a percentage of
other funds into the general fund.
Brenner stated the conservation futures fund does not allow a percentage for
maintenance. They must not divert dedicated funds from purchases to maintenance.
Mann asked and there was discussion of levy shifts.
Kershner stated the budget should be built with any proposed levy shifts and also
without the levy shifts, depending on what the Council ends up adopting. Councilmembers
should provide as much information to the administration as possible, early in the process.
Kremen stated a significant impact to the final budget will be labor costs.
Brenner asked and there was discussion of using interest income.
Louws continued to present the guidelines regarding efficiencies.
Knutzen asked and there was discussion of how the departments find grant
opportunities.
Mann asked and there was discussion of keeping technology current and whether
software is viewed as a service model or capital improvement.
Perry Rice, Administrative Services Department, described plans for email and
software upgrades.
Louws continued the presentation on service levels.
Crawford stated and there was discussion of creating a list of services and programs
that are not mandated to evaluate whether they can continue and of creating a new boat
licensing and inspection program on Lake Whatcom.
Louws continued the presentation on staffing.
Brenner stated certain departments have much higher staffing needs than other
departments. Look at the departments individually. Don't require across - the -board cuts.
Knutzen stated consider privatizing certain services.
Kremen stated hiring delays have always been dealt with on a case -by -case basis,
depending on the situation.
Brenner asked and there was discussion of how to maximize health and welfare
expenditures and increasing employee copays.
Crawford moved that the Council support the Executive's 2013 -2014 budget
development guidelines as presented. He asked and there was discussion of how the
Sheriff's Office plans to meet the proposed budget.
The motion carried by the following vote:
Ayes: Kremen, Crawford, Brenner, Weimer, Knutzen, Mann and Kershner (7)
Nays: None (0)
Special Whatcom County Council, 2013 -2014 Budget, 5/15/2012, Page 3
Special Whatcom County Council, 2013 -2014 Budget, 5/15/2012, Page 4
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ADJOURN
The meeting adjourned at 2:41 p.m.
The Council approved these minutes on June 5, 2012.
ATTEST:
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Please contact the Council Office to obtain an
official, signed copy:
360- 676 -6690 or council &o.w hatcom .wa.us
Special Whatcom County Council, 2013 -2014 Budget, 5/15/2012, Page 5