HomeMy WebLinkAboutSpecial Council June 8 20041
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
WHATCOM COUNTY COUNCIL
Special County Council
June 8, 2004
Council Chair Dan McShane called the meeting to order at 9:12 a.m. in the
Courthouse Fifth Floor Conference Room 513, 311 Grand Avenue, Bellingham,
Washington.
Present:
Barbara Brenner
Laurie Caskey- Schreiber
Sam Crawford
Seth Fleetwood
Sharon Roy
Absent:
L. Ward Nelson
1. COUNCIL TO MEET WITH THE ADMINISTRATION TO DISCUSS
GUIDELINES FOR PREPARING FUTURE BUDGETS (2005 AND 2006).
DISCUSSION TOPICS TO INCLUDE: KEY ISSUES FOR THE FUTURE,
GENERAL REVENUE AND EXPENDITURE ASSUMPTIONS, ADDITIONAL
SERVICE REQUEST FORMAT, AND BUDGET DEVELOPMENT
GUIDELINES (AB2004 -027)
Key Issues Review
Dewey Desler, Deputy Administrator, stated key issues will face the County
in the next few years.
Master facilities plan implementation is one key issue. It's been many
decades since the County looked at its future. Over the last few years, the
administration has been looking forward 20 or more years as an organization and
making building investment decisions around that longer term plan. There are too
many problems from decisions that met short -term interest, but in the long- and
medium -term, were bad investment decisions. The Council said it wants to look at
detailed information about siting of a law and justice center before making a
decision on two key options. The administration is putting that information
together. In the meantime, the County is going to construct a minimum security
jail. If they can complete the master facilities plan before the next budget, it gives
administration a chance to propose the next key steps to implement the Council's
decisions.
McShane stated they are looking at a two year budget process. He asked
how big of a role they will play to make decisions on the real estate excise tax
(REET) or rural sales tax as part of the process for the master facilities plan or
interim jail. Desler stated the REET fund is available. The administration proposes
Special County Council - Budget Retreat, 6/8/2004, Page 1
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
to use REET for the Division Street property and also to support some of the other
buildings associated with the site at Division Street. There is $300,000 to $400,000
extra coming in per year above what they need for the courthouse payment. There
is $2.4 million in the fund now. The County has roughly $7 million in the rural sales
tax fund. This is for public facilities. There are differences of opinion on how that
fund should be used, but there is consensus that something like 40 percent of that
money would be used for County government facilities on high priority functions.
That fund goes out for 19 to 20 years and brings in about $2.1 million per year.
The County can bond itself against the value of that fund. The REET 2nd quarter
funds are limited to roads and parks. The general fund has a balance of $17 to $18
million, which is the healthiest it's ever been. Part of those funds could be used to
pay for capital facilities. One of the reasons to support that fund source and let
that balance rise is to pay for ongoing construction costs on buildings. They can
pay up front, bond, or rent buildings. When they bond or rent, the County pays on
an annual basis for that asset as opposed to making the full payment from the
general fund. The proposed increase to the sales tax can be used for construction
and operation of County facilities. The one -tenth of one percent increase passed in
1999 is for criminal justice purposes. It has gone into the general fund.
Fleetwood asked if everything related to the proposed minimum security jail,
and the big criminal justice facility, relies on passage of the one -tenth of one
percent sales tax increase. Desler stated the County could build a minimum
security jail. The key issue is how to pay for ongoing operations of the jail.
Somehow they will find a way to do that, but it may mean significant budget
reductions.
Caskey- Schreiber stated they could also approve a tax increase. Desler
stated the increased cost anticipated for the ongoing cost of the minimum security
facility is about $2 million. If the cities would use the facility based on projections,
that would provide revenue of $1.1 million. Another $100,000 of revenue would
come from miscellaneous revenue. That leaves $800,000 to $900,000 for the
County to pay. The County has to be prepared to pay more than that. They're not
entering into an arrangement like that with emergency medical services (EMS).
The County hasn't talked to the cities or other jurisdictions about cost - sharing. If
the cities don't come on board, the County still has to pay. They have done budget
projections that show they could probably operate a minimum security jail if the
sales tax increase passes, and can build another jail of up to 550 to 600 beds if
they meet certain targets for construction costs. There would be a $1 million
shortfall to pay for the permanent jail. The administration wants to avoid a
situation where other counties have built jails assuming the revenue would be
there, but it's not.
Caskey- Schreiber asked if money saved from closing the existing work
release facility would be a part of that $800,000 to $900,000. Desler stated that
facility cost is about $250,000 for the net cost of that activity. If closed, the
County would lose that capacity and pay it on the other end. The savings aren't
there. The decision is whether they want the additional capacity or not.
Special County Council - Budget Retreat, 6/8/2004, Page 2
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Caskey - Schreiber asked the point if they build an interim jail if they don't
want capacity. She asked if the end goal is to centralize services in that area.
Desler stated the administration's recommendation is to continue the work release
facility.
Crawford asked if they break out cost information for the jail and
incarceration, and the cost per year.
Wendy Jones, Chief of Corrections, stated the cost for jail operations is about
$7 million for everything.
Crawford asked if the new interim facility cost would be $2 million, for a total
of $9 million. Desler stated that is correct.
Crawford asked if the $1.1 million from the City is in addition from what the
City is paying today. Desler stated it is. In 2004, the cities are paying a much
reduced rate. Their use of the jail is dramatically reduced. Many jurisdictions
budget much more than what they pay or use. The small cities have said they will
find a way to pay for more capacity. He's heard from the Bellingham mayor
verbally, not in writing, that the City would only be able to support the additional
services in the jail if it got additional money to pay for EMS.
Crawford asked if there is potential funding for construction of a permanent
facility if the citizens pass the one -tenth of one percent sales tax increase. He
asked if that would fund construction only or also operation. Desler stated it would
fund construction.
Crawford stated that today the County is spending $7 million for jail services.
The interim facility adds 150 beds. With both facilities, the cost is about $9 million.
Brad Bennett, Finance Division Manager, stated the net cost for jail services
now is $4.4 million.
Crawford asked the total expense when the County goes to a 500- to 600 -
bed permanent facility. Desler stated the consultants recommended staffing go
from 63 full -time equivalent employees (FTE's) and add 23 more FTE's for the
minimum security facility, and also recommend 165 FTEs for a permanent facility.
Jones stated that staffing level depends on the design of the facility.
Desler stated the administration's calculation is based on a smaller number of
FTE's, about 130. Even after the County makes all the bond payments and
expenses, it's going to be about $1 million or more short.
Crawford asked how much that one -tenth of one percent sales tax increase
would bring in per year. Desler stated the increase would bring in $2.65 million,
increasing about five percent per year.
Special County Council - Budget Retreat, 6/8/2004, Page 3
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Crawford stated that if the County gets that sales tax increase passed, it
opens the door on a new interim jail and approaches the funding of that operation.
Desler stated that's correct.
McShane asked if all the money from the increased sales tax goes to the
County. Desler stated it does. The County is responsible for jail cost from all
municipalities for juvenile and felony offenses. The County also takes on all state
and county law enforcement misdemeanor charges. The cities are charged with
their own misdemeanant offenses. The legislature gave the County the taxing
authority to pay for those expenses. Not all other counties have instituted the sales
tax increase. Other counties don't give that revenue to cities to pay for their
misdemeanor charges. There was a request from the mayor of Bellingham to
receive a portion of that increase.
McShane stated he is concerned about the ability of the cities to contribute.
Caskey- Schreiber stated the sales tax campaign is going to be crucial to the
success of a long -term permanent facility. Contract out survey work to see if the
public will support the tax, and do a really well -run campaign. Put off the vote until
Spring if it takes that long to run a successful campaign.
McShane stated there might be legal issues with doing that.
Desler stated the Sheriff, Executive, and, he hoped, many other elected
officials have said they want to forge a campaign, done in a highly ethical manner.
There cannot be any perception of this County promoting or supporting the
campaign other than what is legally allowed. There is a desire to build a campaign
plan between now and the first part of September, then run a campaign in
September and October.
Brenner asked what happens if the increase doesn't pass. She's heard
numerous times from people that they won't support any more taxes. She's
concerned about getting the message out. She's not sure the public will agree.
Roy stated the government agency has restrictions on the roles it can play.
She assumed there will be some sort of citizens group that will promote the
increase.
Bill Elfo, Sheriff, stated citizens have expressed an interest in doing a political
campaign. They have also talked with a firm to put on an educational campaign.
There is room in the law to do that as long as it provides information on both sides
of the issue.
Roy stated she can see where Bellingham would have an argument for
receiving 50 percent of the taxes received. It would be a shame for Bellingham
voters to sabotage this because Bellingham doesn't receive some of the money.
Special County Council - Budget Retreat, 6/8/2004, Page 4
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Desler stated one method to support the other communities is if the County buys
the property and, with some source of support, builds the building and puts none of
the cost of that or any kind of depreciation into the per diem rates of the
jurisdictions. That is a $6 to $7 per day savings for the cities. If the County were
to lease the building, the additional cost to the County and the rate would be more.
Someone has to pay that cost. Capitalization of this, and not putting it into the per
diem rate, would be a benefit for anyone who uses it. The rationale for not giving
the money to local jurisdictions is there will be enough demand for jail services.
Any time the government subsidizes a popular service, more people will use it more
actively. They will just create competition for the main jail.
Roy asked if an approved sales tax increase will save local jurisdictions
money on jail costs. Desler stated it will. He anticipates a ten per cent reduction in
rates.
McShane stated there is room for negotiation about capital costs and how
they're passed on. They can make an argument that the sales tax and REET is paid
by everyone countywide, and therefore it can go to the capital costs or paying the
bond and not writing in a formula for the jail users. There is more flexibility in that.
His biggest concern is the cities' abilities to do this. He is concerned about
committing to building a facility assuming that the revenue will be there. He's
hearing the administration is not going to assume huge revenue streams until the
jail is built. The revenue may dry up down the road.
Elfo stated he does not intend to import prisoners into Whatcom County, but
if there were a crisis where cities can't pay for jail space, there's a huge market for
it.
Brenner stated whether or not the cities can pay, there are still people who
need to be in there. She asked if they would just turn them away. It will be
difficult to import criminals while turning away local criminals.
Desler stated many communities have approached major jail construction
with pre- designed and built agreements with their cities. The cities have committed
to pay for a certain capacity up front. The County is not doing that to other
jurisdictions.
Upgrading Information Services. Desler stated the County will gain greater
efficiencies with information services in all elements of government. It is one of the
most significant things they can do to improve efficiencies of government in
response to growth demands. The administration will be thoughtful and aggressive
about approaching information services decisions.
Roy stated she hopes that they're working on getting the law and justice
issues at the forefront and taken care of. During the presentation from the
Commission Against Domestic Violence, it was made clear that the Whatcom
County Sheriff's Office is behind the Bellingham Police Department in terms of
Special County Council - Budget Retreat, 6/8/2004, Page 5
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
accessing information. Deputies cannot use the remote reporting locations because
they couldn't access information. Elfo stated that problem has been solved. A
bigger data integration problem is being compatible with the City of Bellingham.
Roy stated it's a public safety problem that needs to be addressed. Desler
stated they can organize a presentation on the progress of that effort.
Voting reform mandates. Desler stated there have been a number of
meetings with advocacy groups who are concerned about the future of voting
systems. As the County makes decisions on its voting equipment, they will try to
build the space requirements around the systems that are chosen. The investment
in this matter will be something the County will live with for many years. They
expect to see a presentation from the Auditor about some of the options.
Fleetwood asked if an additional services request (ASR) is anticipated from
the County or from grants. Desler stated the County will receive $590,000 from
federal funds, which is the set up cost of the new system. If the County does
something more expensive, it will have to figure out how to pay for it. The decision
should come after active consultation with the Council.
(Clerk's Note: End of tape one, side A.)
Water Resources. Desler stated the County has worked actively over the last
few years, and is trying to finalize a watershed management plan. The
administration wants to hear how the Council prefers to pay for things like
stormwater, water resource inventory area (WRIA), flood management, and Lake
Whatcom protection.
Brenner stated the County never received adequate funding from the State
for WRIA. The County went way beyond what other counties have done. She is
not comfortable proceeding with the plan. They have created a huge bureaucracy
that is putting the County in a position of forcing people to do things that may or
may not be in their best interest. People don't have any idea of the far reaching
ramifications of the plan. She is not confident that the County has the money.
Don't pay for implementation from the general fund. Let the State pay for the
mandate. If the County did more than the State imagined, the State needs to let
the County know that.
McShane stated he tremendously encourages trying to integrate what they've
been doing with water resources and planning a little better than it has happened in
the past. That is difficult because of the two different departments. At whatever
level they decide on WRIA plan implementation, full implementation isn't going to
happen. Implementation will be piecemeal and opportunistic. There are things the
Council can do to plan around it. The Council works with planning issues all the
time, and is most familiar with that department. Implementing a lot of this has
been limited by the lack of staff at the County planning level. Water resources is
becoming more a part of planning. The Council has done significant projects in
Special County Council - Budget Retreat, 6/8/2004, Page 6
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Lake Whatcom. Water quality development standards is an example. There wasn't
a lot of support from the Water Resources Division on that. The Council could have
used that support. Regarding the River and Flood Division, he's not sure the
Council has been engaged in the direction the County is heading in terms of flood
projects. For instance, the County talked about establishing a meander zone along
the Nooksack river. It's a priority of the Flood Control Zone District Advisory
Committee. However, he just found out the County just let out a request for
qualifications (RFQ) for gravel removal in the river. That doesn't work with
establishing a meander zone. The Council may need to make that a priority.
Roy stated she wants to add Shoreline issues to that subject. Issues seem to
be chopped up into little pieces. The Water Resources Division should be involved
with planning, critical areas, and shoreline work that is happening this year.
Integration is really important.
McShane stated it's difficult to do. This is similar to the master facilities plan
process. They don't have a broad plan that the Council and the County as a whole
can understand. The administration needs to figure this out. The administration
has been working on it, and it hasn't been easy.
Jeff Monsen, Public Works Department, stated he, Mr. Hart, and others are
doing natural resource integration. It's not just simply about working together
more carefully, but redesigning the role of the County for natural resource
management. There will be a proposal that will come forward that will blur
departmental lines. Where they go in information systems is a much bigger driver
of their ability to integrate the policy and program issues. If they don't have free
flow access to information, there are many boundaries they run up against. The
WRIA project generated a lot of information. To use that information effectively, it
will take an investment in information systems.
McShane stated they will keep on and look forward to a better system in the
future. He's critical of the past. Natural resources and natural history are very
important to this community. Monsen stated a significant challenge for the future is
doing coordination. Everyone wants to implement a project, but not do
coordination, which is a significant financial element. They plan to look for grant
funds aggressively from the State and federal governments. If they don't
materialize, the requests won't go away.
Roy stated one objective today is to get a sense of how the Council feels.
Desler stated it is. There are two issues. One is things that people ask the County
to provide. Another issue is how the County focuses on these water resource issues
within the organization. They can add capacity or reprioritize the things it is doing
today. The administration needs the Council's assistance to do prioritization.
Roy stated she wants to support Councilmember McShane's comments.
Natural resources in this county have got to be a top priority. She welcomes the
opportunity to talk about re- prioritizing. She supports the concept Councilmember
Special County Council - Budget Retreat, 6/8/2004, Page 7
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
McShane talked about. She also understands Councilmember Brenner. She will
look critically at WRIA budget items. Look for other sources of funding. She'd like
to see more on- the - ground projects and less theory.
McShane stated he appreciates the Executive's and Mr. Desler's ability to
lobby. They should maybe think about having a lobby position to provide support
in that regard. There is the Washington State Association of Counties, but he's not
sure how effective the County has been working with them, mostly due to the lack
of effort from councilmembers because they're part time. Desler stated it's tough
to tell the public the County needs to have a lobbyist. However, the rules are that
the County representatives have to be there at the State when the changes are
being made. He's always advocated that the County grow its presence in Olympia
and Washington D.C. The County has been fairly assertive with those activities.
The County currently invests in the Council of Governments for representing the
County. If the County wants to really address an issue such as federal payment for
law enforcement or significant water resources issues, the County ought to develop
a plan of action, which would include a more aggressive approach to focus on
obtaining resources or law changes needed. The County has to be present to make
its case and sell its ideas.
Fleetwood stated investing in a lobbyist or grant writer will generally pay for
itself.
Brenner asked what the County's grant writer is doing. Desler stated the
County has a grants coordinator. There is a fund from which the County hires
people to contract with someone to prepare the grant. The County is moving into
housing, healthcare, law enforcement, and community service issues. The County
has received grants. Much of the government expenses now is funded with grants.
They have to continue being aggressive with that.
Wages and Benefits. Desler stated new retirement rates will have more of an
impact on the County. There are also extensive increases in health care and other
benefits. The County has a cap at ten percent, with the exception of Sheriff's guild.
He hopes the cost of health care doesn't exceed that cap, but it probably will.
There will be contract negotiations with almost all existing unions. A significant
issue is the way the State charges retirement benefits. When the markets are
strong and interest rates are high, the State will push down the rates that are
charged to employees and employers. There's a lag time for that. There will be a
fairly significant increase in rates starting July 1, 2005, then again in 2006 and
2007. Employer contribution rates will go from 1.5 percent to as much as six
percent. That differential is what the County has to pay for. It's roughly equivalent
to about two years of a wage increase. This year they have to account for the
increasing cost of benefits, retirement benefits, and the result of wage negotiations.
Brenner asked where they foresee the County getting the money for that.
Desler stated the options are using the fund balance, reducing other expenses, and
trying to grow revenue.
Special County Council - Budget Retreat, 6/8/2004, Page 8
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Brenner asked the dollar amount if the increase is up to six percent. Desler
stated it's millions.
Marianne Caldwell, Senior Budget Analyst, stated the County is now paying
$600,000. By 2009, the amount will be $2.4 million.
Drug Court. Desler stated that in 2005, the County will lose significant drug
court revenue. If the same level of support for drug court will continue, the County
will have to find resources. Funding is coming to the end because the money is
being moved to other national security functions.
Fleetwood asked if the federal grant was for implementation and was due to
sunset after a number of years.
Brenner stated a lot of money is being funneled to the war. She asked if
there will be more federal money available this year when the country gets out of
the war.
Crawford stated the upcoming change is just a handover of authority. The
presence of the United States in Iraq will remain just as strong.
McShane stated that if the money is not going to be available, they have to
decide what the County is going to do.
Caskey- Schreiber asked for information on drug court from a drug court
representative.
Crawford stated drug court saves lives, not money. He asked how funding it
would affect the budget over time.
Brenner stated drug court saves money in the long run. The recidivism rate
goes way down. About 80 percent of non -drug court offenders re- offend. Only 30
percent of drug court offenders re- offend.
Caskey- Schreiber stated they will have a real battle for dollars for mental
health patients. She would normally support drug court, but they have to consider
the biggest benefit for their dollars.
McShane stated there is a risk of re- offense by a mentally ill person. The
interim jail will have a triage center for the mentally ill. Consider the cost of a
program that will connect and track those people in the system.
Caskey- Schreiber stated that without any kind of case management,
mentally ill offenders will likely re- offend.
McShane stated this is a topic on which the Council needs more education.
Special County Council - Budget Retreat, 6/8/2004, Page 9
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DISCLAIMER: This document contains the Whatcom County Council or Committee
minutes, as approved. However, unless an attested signature page is attached, they
are not the final approved minutes.
Roy stated they will have to see the impact to all social services. The mental
health issue of reduced funding will mean that people won't be medicated. Look at
the entire social services scope.
McShane stated there are some staff in the Health Department working on
mental health issues. He asked how much money comes from the State for social
programs. Desler stated the County contributes a lot compared to other counties.
Millions have come to the County for social and health services. There are also
programs and activities supported in whole or in part by County funding.
Regina Delahunt, Health Department Director, stated the County provides
some local dollars. Other counties use no county dollars.
Brenner stated the mental health issue is a big issue for her. She's
concerned with the way the State and federal government are cutting funds. She
asked if drug court provides therapeutic activities for participants. Jones stated the
offenders are hooked up with case management that facilities treatment. The drug
court program encourages treatment and aftercare.
Brenner stated there is a big rift in Substance Abuse Advisory Board. It
doesn't want to connect with mental health advisory board. That stigma is
unfortunate. One doesn't have substance abuse issues without mental health
issues.
Desler stated these social services, law enforcement, keeping records are the
core County services. The County will continue to have a role in that. Things may
change with the planned triage program. Existing funding for substance abuse,
mental health, and the hospital would come together to provide funding for that
service. Agreements are building now to confirm that plan. Things could change
due to the quicksand situation in mental health.
McShane asked if money from the drug fund does or can go to drug court.
Desler stated it can. Of the $400,000 cost for the drug court, approximately
$25,000 comes from the drug fund. The drug fund has many hundreds of
thousands of dollars.
Brenner stated more should go from the drug fund to drug court. Elfo stated
some money from the drug fund pays for northwest task force on
methamphetamine.
Brenner stated she'd like to see a break down of the costs that the drug fund
covers. Bennett stated the drug court started this year with a $400,000 balance.
Revenues fluctuate.
Kathy Walker, Administrative Manager, stated there is a limitation on the use
of the drug fund dollars, depending on the source of the funds. Funds from the
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Justice Department and Treasury Department have limited uses. There are even
limitations to what they can give to the drug court.
(Clerk's Note: End of tape one, side 8.)
Desler stated he will provide additional information on the drug fund.
McShane stated the drug fund is not as transparent as other funds. It's
concerning.
Brenner asked to see a breakdown of how the drug funds are spent.
The Council concurred.
Biennial budgets. Desler stated they are going to prepare a two -year
budget. He anticipates an active review from the Council mid - biennium.
Caskey- Schreiber asked if the word is out to the public who request funds
each year. Desler stated the word will get out.
Roy stated one question to be answered is whether they want to support
small chambers of commerce, other than the Bell ingham /Whatcom Chamber of
Commerce.
Initiative 864. Desler stated this initiative will reduce funds to the County.
Caskey- Schreiber stated she heard Ron Sims say he will disband County
government if this happens, and turn everything over to the cities.
Crawford asked if there are enough signatures for this initiative. Desler
stated he didn't know. The deadline to gather the signatures is in July.
McShane stated they will need to revisit the budget if the initiative happens.
Initiative 892. Desler stated I -892 affects State revenue, but County
revenues from the State would also be affected.
General fund Balance Assumptions
Desler stated there will be significant revenue changes. They won't receive
any more payment from the City of Bellingham in the amount of $500,000 to pay
back for services. They are losing drug court revenue and revenue from Alcoa. He
estimates an even level of revenue with no increases. Sales tax may be lower or
have just a modest increase.
Brenner asked why the County is losing $500,000 from the City of
Bellingham and money from Alcoa. Desler stated there was an eight year payout
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from the City of Bellingham, and this is the last year. The Alcoa agreement was for
two years.
Caskey- Schreiber asked if property tax the Alcoa agreement was regarding
its property tax.
Pete Kremen, County Executive, stated the Alcoa agreement was regarding
the Bonneville Power Administration (BPA) settlement. The Alcoa property tax was
reduced by about 25 percent. The property was revalued at $88 million versus
$120 million.
Desler stated that with all the normal projections they make, they have to be
cautious, but it's not the end of the world.
Caskey- Schreiber asked about Medic One. Kremen stated there was a
meeting last week with the small cities. There was a meeting with fire chiefs. The
fire chiefs are not in unison to support the measure. Significant fire districts are
opposed to the concept, and have convinced some of the small city mayors to not
support the agreement. At this point, the small cities and some of the fire districts
don't support the County board arrangements. He will continue to meet with the
City of Bellingham, fire chiefs, and fire commissioners. They are still moving
forward. He still thinks the concept can work. He is not overly optimistic about
having an agreement for EMS. It's still doable, but not a given.
Roy asked about the objections. Kremen stated their objections are on a lot
of things. Different people are having problems with different things. One fire
district feels that the concept will prevent them from having its own EMS levy. The
small cities feel the City of Bellingham has too much clout. The City of Ferndale
stated it should have a specific member on the authority board. If it does, every
other city will want one. He will work with the City of Lynden and small cities to
see if he can get them to agree. Now, the City of Bellingham and Whatcom County
and a few of the fire districts are still working to salvage the concept.
Crawford stated they need to send a message in the budget statement.
Having a budget proposal that shows increases as usual is not where the Council is
at. An escalation of nearly $2 million per year hasn't been discussed. He asked to
get a proposal for slowly decreasing participation in Medic One for the next six
years.
McShane stated he is not uncomfortable with the annual increase. Kremen
stated the small city mayors also feel the 5.9 increase is too hefty.
Caskey- Schreiber asked how they would not have an increase with an
increasing population.
Crawford stated the plan was that the fire districts would do basic life support
(BLS) as opposed to the City responding to every call with advanced life support
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1 (ALS). One discussion was that the cost would go down because of that. Also,
2 they have $100,000 per year firefighters running this thing. They can't afford to
3 continue that. It's important for the County to take a position that the old way of
4 thinking has to change. In the end, everyone will benefit. The projected increases
5 send the message that the situation is acceptable as it is. Desler stated the
6 administration needs to explain the agreement, which is still being developed. It
7 would be useful to have comments from the Council. There is some debate on the
8 level of the increases. There is also debate on the cost of the support of a new
9 authority. The County owns assets that are being used by Medic One. The assets
10 and reserves are ongoing support that can help the County move into a different
11 arrangement for EMS. There is not a commitment to use only Bellingham Medic
12 One firefighters.
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14 Kremen stated the administration needs indication from the Council during
15 negotiations with the players. The Council needs to know what some of the other
16 stakeholders want. Some feel that the timeline for setting up the authority is over -
17 aggressive, which it is. The City of Bellingham wanted that timeline to meet its
18 needs. The County pointed that out to the City of Bellingham. The fire districts say
19 one thing, but when it comes to delivering ALS service, they decide they can't do
20 that. All districts initially believed that Bellingham ought to provide all the ALS.
21 Now that's not the case. Some districts are changing their positions. He maintains
22 that the private sector should be at least included in the technical advisory
23 committee. It has the potential for providing the service. The City of Bellingham
24 conceded on that point. There are a couple of influential fire chiefs who are being
25 very vocal to the small cities and other districts that isn't a good deal.
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27 Brenner stated they should move ahead with the ones who are on board and
28 leave the others out. Kremen stated that's the tact they're taking.
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30 McShane asked if the Council wants to increase, decrease, or hold the line on
31 EMS funding. He believes they should maintain the current level, without an
32 increase, for six years, and then the County will discontinue funding. The system
33 can't work any more the way it is. The level of service already has declined.
34 People voted against funding for EMS. He has an issue with equity of those city of
35 Bellingham residents who pay twice. Also, people will figure out a way to pay for
36 the services either through a levy or through a city fire district if they don't want to
37 see the service end.
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39 Brenner stated the levy amount asked for was too high, which may have
40 been why it didn't pass. She asked Councilmember Crawford about holding the
41 line.
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43 Roy stated she agrees with Councilmember McShane, only the term should
44 be shorter than six years. If Whatcom County is truly the only county in the state
45 that funds EMS from the general fund, they should make this deadline shorter than
46 six years.
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Caskey- Schreiber stated six years is what Bellingham wanted.
Roy stated they need to eventually get out of the Medic One business, and
the sooner the better.
Crawford stated he doesn't agree with Councilmember McShane's proposal
because it doesn't allow the system to wean itself away from the County. A crisis
will be produced in six years. This system will take and use every available dollar
until the very end, when there will be another community crisis. He proposes an
alternative concept to give Neil Clement a budget for an EMS director, let the City
pull out, and fund a full time staff person at the County to coordinate with the fire
districts. Take the $1.3 million to develop a state of the art rural ambulance
system. The private sector has a standing offer to provide ALS better and faster to
every corner of this county. The County can do this. Letting the City continue to
hamstring this system and the fire districts is not going to end. Decrease funding
at a minimum of $100,000 per year each year for the six years. They can continue
to have a workable system for the people of the county, with a decrease of County
funds. Someone's got to take a leadership role. The City wants out of the
agreement. Also, the City has staff who are working on this issue full time. The
County doesn't.
Caskey- Schreiber stated she doesn't agree with Councilmember Crawford.
They will go backwards in service levels. The City of Bellingham has shown itself to
be a successful leader. There's no way the County will get the same level and
expertise as the current paramedics. The private sector has newly educated
paramedics without the experience and knowledge, and are not paid well. She
doesn't know how the fire districts will pull it off. She asked why Kremen doesn't
agree with Crawford's vision.
Kremen stated it's not viable. The private sector provider had indicated it
doesn't want to do ALS until the past two or three months, when it now says it
wants to do ALS.
Crawford stated the position of the private provider is that it doesn't want to
sort of do ALS. Either have the system or not. They can't do it partway. The
County can work independent of the City to build a system. If the private provider
figures into it, that's fine. For less than $1.3 million, the private provider can build
a phenomenal ALS system. When he said he didn't want to do ALS, it was because
they talked about having ALS services only part time.
Desler stated they're still involved in negotiations with fire districts and the
City of Bellingham. That's not over yet. The results of that negotiation is still in
flux. The final decision hasn't been made.
Kremen stated he is still pursuing this new concept. If all else fails, the
County has an option to let a request for proposals (RFP) that the private sector
would be interested in. The service is not mandated and Whatcom County is the
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only county in the state that uses general fund money, but the County will be hard
pressed to tell the residents of this county that the County is not going to fund an
essential service. There are a lot of things the County does that aren't mandated.
(Clerk's Note: End of tape two, side A.)
Kremen continued to state he disagrees with using general fund money for
the service. A service as important as this can have reliable and steady funding,
but think twice about an automatic cutoff date for something this important.
Caskey- Schreiber stated Councilmember Crawford's proposal to fund a
private provider goes against his argument for reducing funds to the City of
Bellingham service. They can't undermine them by reducing their money and
service levels every year. She would rather go out for another levy option before
this timeframe is up. It might be approved. The campaign against this levy was
ridiculous. If citizens had really understood how small they would have to pay, the
levy would have passed. There was an organized campaign against it, but it's not
an indicator that a levy would fail again with a different amount.
ASR Form
Desler stated the Council and Executive wants to see basic fundamental
information about an additional services request. They crafted a streamlined
approach to get at fundamental questions from the Council. He asked if these are
the questions the Council wants answered when there is a request for additional
services.
McShane stated he approves of the streamlined approach, which still gets at
the fundamental questions. On past ASR's, they do look like they're awful to fill
out. At the same time, the effort that goes into filling them out completely is
appreciated and makes him think staff really does want what's being requested. A
complete ASR plays a role in how he evaluates the request.
Crawford stated there has been some confusion in the presentation of these
to Council. There are ASR's that the administration approves and ASR's the
administration doesn't approve. Present the two to Council separately.
McShane stated the Council concurs on the approval of the ASR
format.
Crawford stated that the ASR form should show how the request impacts the
number of FTE's.
Roy stated she would like to see if there is a net increase in FTE's. They're
interested in the additional FTE's, not a shift in work responsibilities.
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McShane stated another concern is with FTE supportive costs, such as finding
a place for the FTE to work.
Kremen stated there was no budget process like this prior to his
administration. That wasn't good government. It wasn't collaboration or in the
interest of the public. He has tried to work with the Council to have a better
understanding of where its interests and priorities are. Work collaboratively to
come up with a better product. They need to accomplish within reason where the
Council wants to go. He knows what it's like to be on a legislative body that is
handed a budget document without a lot of information. That's why he believes
this is helpful. They've come very far during his administration.
Brenner stated this is a much better way to do it. She appreciates being
involved from the beginning. She sees the councilmembers' opinions incorporated.
She doesn't like that the Council gets all the blame when people are upset with the
budget.
Budaet Development Guidelines
Desler stated that during the last two or three years, the administration has
shown the Council what it used the previous year for guidelines. The Council would
approve or edit those guidelines, which are used as a roadmap for building the next
year's budget.
Brenner stated the language in the budget guidelines is good.
Roy referenced number eight. Somehow reference interdepartmental
cooperation for efficiencies.
Crawford stated numbers four and six already do that.
McShane stated on number three, an idea not reflected that is important is to
make sure they're competitive with other governments and cities to attract good
quality employees. Articulate that in number three.
Brenner stated she hasn't noticed a lot of turnover. The County has a stable
workforce. What the County doesn't give in salaries it makes up for in benefits.
She asked if there is a lot of turnover. Desler stated there is eight to nine percent
turnover annually. The more vexing problem is recruitment. They have trouble
getting the talent and skill level needed to fill the requirements of a job.
Caskey- Schreiber stated she agreed with Councilmember McShane.
Retention will save on recruitment costs. Pay people what they're worth, and be
competitive with what other counties are offering. There was a salary comparison
with the Prosecutor's Office, and Whatcom County was consistently eight percent
behind other counties.
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McShane stated it should be included in the guideline.
Steve Oliver, Chief Deputy Treasurer, referenced the last sentence of number
one. He asked where they would provide that information in the budget process.
Desler stated that information was built into the ASR. When there is no additional
revenue, the administration will ask staff how they would do things differently.
McShane stated the Council needs to be willing and able to talk about
increasing revenue instead of decreasing services. The Council went for a long time
without a tax increase. Last year there was a tax shift, but overall taxes for the
community was less. Add to item one, "...offset by a reduction or elimination of
lower priority services or increase in revenue."
The Council concurred.
Oliver stated the reason he asked his question is because the budget
continues to tighten. It might be an important piece of funding information. If a
proposal doesn't have funding, but they still want to fund it, the other activity that
would be reduced may be a factor in deciding whether or not to approve the
funding and service change.
Crawford referenced number three, and stated they should delete the
existing sentence and replace it, "The Council will carefully analyze the social and
economic impacts in the elimination of positions previously supported by
discontinued grants and external funding. Should the negative impacts of the loss
of these positions be deemed too great, the Council will explore all funding options
to maintain existing services." He was thinking about drug court and mental health
services. They're not sure yet how that will work out.
The Council concurred.
Caskey- Schreiber stated develop an incentive toward incorporation of Birch
Bay. The 1,000 Friends organization had an example in another county that
retained a percentage of the rural sales tax in a fund each year for incorporation.
She asked if that is something the County can budget in. Desler stated it could be
sales or property tax, not rural sales tax. It could be a series of funds set aside for
that purpose. Counties have done this and believe it was worth it.
Caskey- Schreiber asked the administration to consider language and come to
the next Planning Committee meeting to discuss it.
McShane stated it's a budget planning issue. The Council hasn't reached a
decision yet on the Birch Bay plan, but councilmembers have a lot of concern about
this very large stand -alone urban growth area. There is the same concern with the
Kendall area. These very large urban areas that aren't cities will be a fiscal
problem for the County in the future. The residents of those areas are putting
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money into sales tax and REET. The County could put some of that money aside
for those areas to incorporate.
Roy stated it would make the goal of incorporation realistic.
McShane stated that has implications to the budget as a whole. Planning
staff is struggling with doing urban planning. It is a burden to that department.
Desler stated that if the Council wants to develop policies on incorporation, the
administration will help with that.
Caskey- Schreiber stated it would be healthier for everyone. Desler stated
setting aside an urban development fund sounds doable.
Caskey- Schreiber stated it should be in the 20 -year plan for Birch Bay.
ADJOURN
The meeting adjourned at 12:10 p.m.
Jill Nixon, Minutes Transcription
The Council approved these minutes on June 29 , 2004.
ATTEST:
Dana Brown - Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Dan McShane, Council Chair
Special County Council - Budget Retreat, 6/8/2004, Page 18