HomeMy WebLinkAboutFinance March 11 20031
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
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
Finance and Administrative Services Committee
March 11, 2003
The meeting was called to order at 12:00 p.m. by Committee Chair Sam
Crawford in the Council Chambers, 311 Grand Avenue, Bellingham, Washington.
Present: Absent:
L. Ward Nelson None
Sharon Roy
Also Present:
Dan McShane
Barbara Brenner
Laurie Caskey- Schreiber
SPECIAL PRESENTATION
1. PRESENTATION BY THE ADMINISTRATION ON WHATCOM COUNTY'S
2002 YEAR -END FINANCIAL REPORT (AB2003 -107)
Dewey Desler, Deputy Administrator, submitted the 2002 Fourth Quarter
Financial Report (on file). He stated this is a summary presentation. The Finance
Division prepared the financial report.
Revenues are close to what they budgeted in 2002. Certain revenue from
fines, recording fees, plan check fees, and building permits is up from the estimate.
Sales tax revenues came in stronger than they anticipated because of construction
activity and increased car sales. Payment in lieu of taxes (PILT) came in stronger
also.
The primary portion of miscellaneous revenue is interest income. The third
largest source of the County's income is interest income. It is much lower than
what they received in 2002. He expects that revenue source to flatten out in 2003.
All this information is in the financial report he distributed to the councilmembers.
He will summarize the detail today.
Roy asked if the Council would get the detailed information. Desler stated
the detail is in the quarterly financial report.
Tax revenue is going up from previous years. Tax revenue comes from the
property tax and sales tax. They are also seeing slight increases in real estate
excise tax (REET). Intergovernmental revenue, which are grants, is going down,
but so are the corresponding expenses.
Finance and Administrative Services Committee, 3/11/2003, Page 1
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
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.
Charges for services are increased a bit, primarily from increased fees in the
Planning and Health departments.
Brenner asked what miscellaneous revenue is. Desler stated interest income
is one miscellaneous item. There are 650 sources of miscellaneous income.
All departments came in at or below their budgeted figure. There is a total
lapse of 4.2 percent in 2002 overall, which totals approximately $3 million. There
are some continuing appropriations with contracts that are projected forward into
2003. The lapse in 2001 was 5.5 percent. The Executive asked the departments to
reduce their budgets by about two percent in 2002.
Of all expenditures, wages make up about 46.95 percent. Expenditures are
tending to rise over the past several years while revenues are falling. They
anticipate 2003 for the revenues and expenditures to remain equal.
The actual fund balance beginning in 2002 is over $14 million. During the
course of the year, total revenues received were over $55.3 million. They expect a
few more 2002 revenues to come in. Total expenditures were $55.8 million. The
actual fund balance for the end of 2002 will be approximately $13 million.
Crawford asked how continuing appropriations are budgeted. Bennett stated
continuing appropriations allow them to increase the following years budget to
reflect contract commitments made by the end of the previous year. It increases
the budget, but it also increases the expenditures. It is not booked as a liability
because the contractors have not performed the services.
Desler stated that in 1995, the general fund balance was $1.6 million. It
peaked in 2001 at nearly $15 million. They are at a point now where they are
using the rainy day reserves to sustain services at a consistent level. The general
fund balance is based on the balance at the beginning of the year.
Marianne Caldwell, Budget Analyst, stated it is more of a protected balance,
and they are projecting more revenue to come in.
Desler stated they continue to have an increasing population. Whatcom
County has the sixth fastest growth rate in the State of Washington. It is one of
the largest counties in the top ten for population growth rate.
Property tax dollars are collected on behalf of many districts and the State.
The County receives 11.54 percent of the property tax dollars collected. That
percentage is decreasing. The County is not increasing its taxes, but other
jurisdictions are. Those other jurisdictions are taking a larger share of the money
collected. The County general fund equals the total amount that all the fire
districts, Port of Bellingham, rural library district, and the other districts receive.
Finance and Administrative Services Committee, 3/11/2003, Page 2
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
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.
New construction valuation is when the County receives additional property
tax money. Over the last seven years, there has been a steady application of
actual new construction.
Caskey- Schreiber stated the County could increase the real estate excise tax
fund (BEET). She asked if Mr. Desler had prepared the numbers if the County
increased the REET to the maximum allowed. Desler stated he did last fall.
Brenner asked about the dip from 2001 to 2002. Bennett stated a large
jump in valuation in any year is usually due to a big project, such as a new school.
Desler stated the County receives sales tax revenue. In the unincorporated
area, the County gets 12 percent. The State of Washington takes 80 percent. The
public facilities district is a rebate of the State's portion of the sales tax, which is a
portion of that 80 percent. The State refunds one -third of one percent of the
State's portion of the sales tax.
Brenner asked the amount of sales tax generated by the County and the
cities. Desler stated the State takes about $155 million. The County takes roughly
$8 million.
Brenner asked the amount of sales tax generated in rural Whatcom County.
Desler stated he would find out. He only has the totals for the county and the
cities.
Brenner asked if they could assume that much more is generated in the cities
than in the county. Desler stated that they could.
The County collects one percentage point of the 8.2 percent sales tax
collected. If a buyer pays 8.2 pennies on every dollar, the County collects 15
percent of $.01 of the sales tax. The other 85 percent goes to the cities.
penny.
Crawford stated that in the unincorporated areas, the County gets the entire
Caskey- Schreiber asked if increased housing prices drives up property tax.
Crawford stated the property tax is collected as a specific dollar amount. The
way it is collected is spread out among the assessed value. Theoretically, the taxes
would go down.
Desler stated properties are reassessed every four years. Every four years,
property with higher valuation would pay a larger share of the property tax levy.
As another quarter of the properties are assessed the next year, their taxes go up
and the first quarter properties go down. That continues on a four year cycle.
Discussion regarding property tax versus assessed valuation.
Finance and Administrative Services Committee, 3/11/2003, 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
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 described the status of the special revenue funds, such as the road
fund, REET, and the election reserve fund.
Brenner asked if they are spending more out of the road fund than what they
bring into it each year. Desler stated the road fund has been stable.
Later on this spring, they will get into more details about where the County
stands financially.
Caskey- Schreiber stated it is a standard County practice to redirect to the
general fund the interest earned on the special funds. She asked if that is legal.
Desler stated the State Examiner's Office has reviewed and approved the
procedure.
Brenner asked why they have a huge road fund balance if they are spending
more than what they receive in revenues.
Nelson stated the road fund accumulated a huge pot of money in past years.
OTHER ITEMS
Nelson moved to change the start time of the Finance Committee meeting
to 11:00 a.m., so they can accommodate appointments and have a lunch break
around the noon hour, between committees.
Motion carried unanimously.
(Clerk's Note: Councilmember Nelson left the meeting.)
COUNCIL "CONSENT AGENDA" ITEM
1. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF FOUR REPLACEMENT Y2 TON PICKUP TRUCKS FROM
VENDOR BUD CLARY CHEVROLET USING THE WASHINGTON STATE
CONTRACT, FOR A TOTAL OF $79,123 (AB2003 -109)
Crawford asked for an overview of the first four items on the Consent
Agenda.
Mary Green, Equipment Rent and Revolve (ER &R) Manager, stated her cutoff
for ordering is March 31. She likes to make sure what the departments have down
for replacement is what they need. She's checked on what is available.
Finance and Administrative Services Committee, 3/11/2003, Page 4
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
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.
are.
Crawford asked if the expenses are in the 2003 budget. Green stated they
Roy moved to recommend approval of this item.
Brenner asked about mileage. Green stated they used to turn over vehicles
at a mileage between 80,000 and 100,000 miles. The Executive asked her to carry
that out to 100,000 to 120,000 miles. By the time they go out for bid and get the
new vehicle, it has 120,000 miles.
Brenner asked if they require more maintenance. Green stated they do on
some. The rate of return is typically less when they get that many miles on them.
Brenner asked if they are spending more because the turnover time is
lengthened. Green stated it is case -by -case. Overall, it is probably costing the
county a little bit more.
Motion carried 2 -0 with Nelson absent.
2. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF THREE REPLACEMENT SMALL PICKUP TRUCKS FROM
VENDOR SOUND FORD USING THE WASHINGTON STATE CONTRACT,
FOR A TOTAL OF $48,903.12 (AB2003 -110)
(Clerk's Note: See Consent Agenda item one for discussion of this item.)
Roy moved to recommend approval.
Motion carried 2 -0 with Nelson absent.
(Clerk's Note: End of tape one, side A.)
3. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF THREE REPLACEMENT LIGHT UTILITY VEHICLES FROM
VENDOR BUD CLARY CHEVROLET USING THE WASHINGTON STATE
CONTRACT, FOR A TOTAL OF $67,807.83 (AB2003 -111)
(Clerk's Note: See Consent Agenda item one for discussion of this item.)
Roy moved to recommend approval.
Motion carried 2 -0 with Nelson absent.
4. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO APPROVE THE
PURCHASE OF TWO REPLACEMENT FULL SIZE UTILITY VEHICLES
FROM VENDOR SOUND FORD USING THE WASHINGTON STATE
CONTRACT, FOR A TOTAL OF $53,722.72 (AB2003 -112)
Finance and Administrative Services Committee, 3/11/2003, 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
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.
(Clerk's Note: See Consent Agenda item one for discussion of this item.)
Roy moved to recommend approval.
Motion carried 2 -0 with Nelson absent.
Roy asked if the cost analysis of keeping the vehicles longer is something
they do as a matter of course. Green stated there is a computer program that runs
all the costs on each vehicle before it is replaced.
Brenner asked how long they would keep the vehicles longer before they
revisit the policy. Green stated the money they get out of auction is somewhat less
because of the higher mileage. However, it varies greatly on a case -by -case basis.
If a vehicle is heavily used, they can put it out for auction earlier.
S. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #03-
09 TO THE LOWEST RESPONSIVE BIDDER, MCASPHALT INDUSTRIES,
FOR THE ANNUAL SUPPLY AND DELIVERY OF ASPHALTIC
EMULSIONS /ROAD OIL IN THE AMOUNT OF $600,000 (AB2003 -113)
Roy moved to recommend approval of this item.
Motion carried 2 -0 with Nelson absent.
6. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO AWARD BID #03-
15 TO THE LOWEST RESPONSIVE BIDDER, COASTLINE TRACTOR, FOR
TWO REPLACEMENT TRACTOR MOWERS IN THE AMOUNT OF
$154,446.63 (AB2003 -114)
Mike Roberts, Assistant County Engineer, stated they currently have six
tractors. This request replaces two of the six. It is for mechanical vegetation
control, including shoulder mowing and long -arm mowing.
Brenner asked what they do when they have guardrails blocking the
shoulders. Roberts stated it depends. In a creek area, they will consult with the
biologist to make sure they handle the vegetation correctly. The machinery can
reach over the guardrail. Closer in to the guardrail, it becomes more problematic.
Roy moved to recommend approval of this item.
Motion carried 2 -0 with Nelson absent.
7. RESOLUTION TO SET A HEARING AND NOTICE OF HEARING ON SALE
OF COUNTY TAX TITLE PROPERTY BY NEGOTIATION, REQUEST NO.
01 -03 (AB2003 -115)
Finance and Administrative Services Committee, 3/11/2003, Page 6
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
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 stated the maps don't show the parcel very well. She asked how
large the parcel is.
Crawford stated the acreage is listed on the inventory sheet for the property.
It is .2 acres.
Brenner asked why they are doing Consent Agenda item eleven by
negotiation.
Dewey Desler, Deputy Administrator, stated Roland Middleton did an analysis
of Request number 01 -03 because the Property Management Committee, which
reviews the requests, asked Mr. Middleton to provide an analysis.
Brenner stated she would like to know the reason for the negotiation on
Consent Agenda item eleven.
Crawford stated it looks like this item was an easement. It is a strip of land
that is 30 feet wide and extends 600 hundred feet. It is a long strip for over two
acres. Whoever is responsible for paying taxes has allowed foreclosure for $27.04.
Roy moved to recommend approval of Consent Agenda items seven through
eleven.
Motion carried 2 -0 with Nelson absent.
8. RESOLUTION TO SET A HEARING AND NOTICE OF HEARING ON SALE
OF COUNTY TAX TITLE PROPERTY BY PUBLIC AUCTION, REQUEST
NO. 02 -03 (AB2003 -116)
See Consent Agenda item seven.
9. RESOLUTION TO SET A HEARING AND NOTICE OF HEARING ON SALE
OF COUNTY TAX TITLE PROPERTY BY PUBLIC AUCTION, REQUEST
NO. 03 -03 (AB2003 -117)
See Consent Agenda item seven.
10. RESOLUTION TO SET A HEARING AND NOTICE OF HEARING ON SALE
OF COUNTY TAX TITLE PROPERTY BY PUBLIC AUCTION, REQUEST
NO. 04 -03 (AB2003 -118)
See Consent Agenda item seven.
11. RESOLUTION TO SET A HEARING AND NOTICE OF HEARING ON SALE
OF COUNTY TAX TITLE PROPERTY BY NEGOTIATION, REQUEST NO.
05 -03 (AB2003 -119)
Finance and Administrative Services Committee, 3/11/2003, 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
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.
See Consent Agenda item seven.
12. REQUEST AUTHORIZATION FOR THE EXECUTIVE TO ENTER INTO AN
AMENDED CONTRACT AGREEMENT BETWEEN WHATCOM COUNTY
PUBLIC WORKS, WATER RESOURCES DIVISION AND RESOURCES FOR
CONTINUING ENVIRONMENTAL CAUCUS SUPPORT IN THE WRIA 1
WATERSHED MANAGEMENT PROJECT IN THE AMENDED AMOUNT OF
$19,500 (AB2003 -120)
Roy moved to recommend approval to the full Council, for the purpose of
discussion.
Roy stated a philosophical question is how many more times this will
happen.
Caskey- Schreiber asked for measurable deliverables that the caucuses would
achieve, so the Council knows when to say enough is enough.
Crawford stated his instinct is to continue this for this year. However, they
should review it for 2004.
Dr. Bruce Roll, Water Resources Division Manger, stated the 2003 budget
includes money for this item. These requests are coming forward on an as- needed
basis. The Council will see the delivery of the plan this year, probably at the end of
October. The Council will have the final round of approval for the water resource
inventory area (WRIA) plan after October. During budget time, evaluate what
services will be needed for 2004. Put implementation in mind instead of plan
development. They will have to resolve the role of the Planning Unit after plan
approval.
Roy asked how many of the caucuses have requested this funding. Roll
stated seven caucuses have requested the funding so far. Money is set aside to
help the private well owners, which have had difficulty getting good representation.
There are 18 caucuses total, including 12 water interest caucuses. There may be a
desire by other caucuses as the plans roll out in June. At that time, the caucuses
may feel they need to take more time and effort to get the plan out to their
constituencies. At this point, three or four caucuses that have not yet come
forward with requests may do so.
Brenner asked for a presentation on what they are doing to beef up the
private well owner caucus. Roll stated he would schedule that presentation.
Motion carried 2 -0 with Nelson absent.
OTHER ITEMS
Finance and Administrative Services Committee, 3/11/2003, 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
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.
1. APPOINTMENT OF JON OSTLUND (AS A MEMBER OF THE CRIMINAL
DEFENSE BAR) AND DONNA WELLS (AS A LOCAL SUBSTANCE ABUSE
TREATMENT PROVIDER) TO THE WHATCOM COUNTY CRIMINAL
JUSTICE TREATMENT ACCOUNT PANEL (AB2003 -127)
Andy Byrne, Human Services Manager, stated the State legislature discussed
the sentencing reform act. In 2002, the legislature passed a bill to provide funds
for more effective substance abuse treatment for offenders. The legislature
established the criminal justice treatment account for counties to apply the dollars
to offenders with addictions. To apply for the funds, each county must develop a
local panel with five specific members. The County Council must appoint the
criminal defense bar and criminal justice treatment account members.
Roy moved to recommend appointment to the full Council.
Roy asked about the overlap with drug court. Byrne stated this is for the
substance abuse treatment that people in drug court might need and other
offenders who are not in drug court. It will not supplant the drug court.
Motion carried 2 -0 with Nelson absent.
ADJOURN
The meeting adjourned at 1:17 p.m.
Jill Nixon, Minutes Transcription
ATTEST:
Dana Brown - Davis, Council Clerk
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Sam Crawford, Committee Chair
Finance and Administrative Services Committee, 3/11/2003, Page 9