HomeMy WebLinkAboutFinance November 1 1996WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
November 1, 1996
The meeting was called to order at 11:34 a.m. by Committee Chair Robert Imhof in the
Council Committee Room, 311 Grand Avenue.
Also Present:
Marlene Dawson
Tom Brown
Absent:
None
BUDGET REVIEW FOR THE PROPOSED 1997 BUDGET: AUDITOR;
TREASURER; AND EXECUTIVE (AB96 -367)
Staff Also Present:
Dave Wareing, Executive's Office
Brad Bennett, Administrative Services, Finance
Shirley Forslof, Auditor
Barbara Cory, Treasurer
Kathy Sutter, Council member
Keith Willnauer, Assessor
Pete Kremen, Executive
Auditor's Office. Dave Wareing, Executive's Office, gave a summary of this budget. He
stated a 0.5 full time employee (FTE) was requested by the Auditor to be added to the department
so that a current half -time employee could come on full time but not recommended by the
Administration. Some of the secretarial duties would include: assist in preparation of a voter's
pamphlet, customer service, and address verification. Only the additional allowance for
unemployment claims resulting from extra help was able to be funded. The Executive
recommended moving District Accounting to ADS Finance to streamline that process. This
would eliminate two positions from the Auditor's Office. One of the positions performs other
work in the office, and the Auditor would like that recommendation to be reviewed. Those FTEs
budgeted would be shifted to ADS Finance. According to the Auditor, there are actually 1.5
positions dedicated to District Accounting.
Shirley Forslof, Auditor, requested reinstatement of one of the FTEs that was
recommended to be cut. She noted that staff levels are at the break point. Services will have to
be cut if the reinstatement is not made, as this position currently performs payroll and accounts
payable responsibilities. Forslof stated that in 1996 one supervisor position was cut, reducing the
number of supervisors to one. Forslof would like the reinstated one FTE, Accountant I, to take
over some of the duties from the 1996 position that was cut, which would include the new
imaging system, Auditor's payroll, and other duties.
Finance Minutes, 11/1/96, Page 1
I There was discussion regarding the funding of the two positions and where they will be
2 absorbed. The Executive's Office will examine options and make further recommendations to the
3 committee.
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5 Dawson asked about the workload of the Internal Auditor. Forslof and Terry Hinz stated
6 that there will be a report coming from the Internal Auditor on what the Council's priorities are
7 for internal auditing.
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9 Another question from Dawson concerned the election reserve fund. Forslof replied that
10 the state only funds odd year elections if there are state - initiated elections. The County auditors
11 feel that even year elections are an unfunded mandate from the state and are lobbying for funding
12 every year.
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14 Brown asked about what cuts are taking place in the Auditor's Office. Wareing replied, as
15 well as Brad Bennett, Administrative Finance, who stated that $190,000 is a reduction from the
16 budgeted imaging system in 1996. That was a one -time outlay that the Auditor will not have in
17 1997.
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19 Brown also stated that a local voter's pamphlet is a much needed service in the area.
20 Forslof replied that the best way to do this is to add County information to the end of the state's
21 voter pamphlet. Forslof also stated that the Auditor is going to create an additional $190,000 in
22 revenue from an increase in license fees. Also, there will be an increase in recording fees, which
23 has not happened in several years. Wareing commented, stating his office thought the local
24 voter's pamphlet was a good idea. He, on behalf of his office, applauded the Auditor's Office for
25 being circumspect in its budget requests.
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27 (Clerk's Note: A five minute break taken.)
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29 Wareing gave background information on the recommended budget for the Treasurer's
30 Office for 1997. He applauded this office also for being circumspect in its budget requests. He
31 stated that the Treasurer requested the cashout of two retiring employees and a one -time funding
32 for a revenue deputy position on a trial basis. This will recover a substantial amount of revenue
33 for the County beyond the cost of the position. If this works out as planned, the Executive will
34 recommend next year permanent on -going funding.
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36 Imhof asked if there was an estimate of how much revenue the revenue deputy position
37 will generate. Barbara Cory, Treasurer, stated that the average revenue in other counties is
38 $100,000. This position will identify areas of concern with sales tax revenue collection problems,
39 one of which is auto licensing. The Auditor and her staff will work with the Treasurer on
40 correcting these licensing problems. This is a one year project and will take some time.to get the
41 person up to speed. There may only be about six months of the person being trained and out in
42 the field.
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Finance Minutes, 11/1/96, Page 2
I Cory also discussed having a database of all County business and registering them with the
2 County as a requirement. A small business license to recover costs of the database would be
3 helpful. This could be beneficial to the Sheriffs Office also for emergency services. The state
4 provides a list of the businesses in the County, but it is only a list of the main offices of certain
5 business, which may be out of the area and not practical information. Imhof asked what the
6 incentive would be for the businesses to register. Cory stated that the County does not have the
7 authority to require a business license; it would have to be voluntary. The goal is to make sure
8 that everyone is paying his fair share. The incentive is that it may lessen the tax burden of the
9 business. Brown stated that he is looking at businesses that may not be paying. For instance,
10 does Seattle City Light pay a sales tax for the electricity they sell? Cory stated that there is a
11 negotiated contract with them on paying taxes with the County. Imhof and Wareing stated that
12 they believe that Seattle City Light would be considered a utility tax and exempt from sales tax.
13 Bennett stated that the contract is in lieu of property tax.
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15 Imhof asked Cory to put together a brief cost summary of what the database for
16 businesses would entail so that the Council members may think about it for the future. Wareing
17 stated that it may be beneficial to have a business registration at no charge to recoup the sales tax
18 revenue that is inadvertently going out to the cities. It also may give information on the economic
19 state of the County.
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21 Dawson asked about an investment pool. Cory stated that Whatcom County participates
22 in the state investment pool as well as having its own investment pool, which relieves the County
23 of the expense of investing for all the districts. By doing this, the districts are required to pay
24 investment costs. Now Current Expense pays only 27% of the investment costs instead of 100 %.
25 Cory submitted a chart showing where the investments are made.
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27 Cory stated the Treasurer's Office is still not fully staffed because of the positions cut for
28 the 1996 positions. Its customers are not being fully serviced, and Council members may get
29 complaints regarding that.
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31 Sutter stated that the County is losing much revenue from the Open Space classification.
32 There are properties that are listed as open space that are not meeting the requirements for open
33 space. Cory stated that would be a question for the Assessor, Keith Willnauer. Willnauer stated
34 that he is aware of the concern. He stated he just recently completed an audit of the open space
35 farm and agricultural part of the exemption program. He was concerned about properties that fall
36 under the 20 -acre minimum, which tend to be the most subject to abuse. Those properties are
37 required to submit income documentation. There were over 200 voluntary removals from the
38 program. Legislation opened a new category called Farm Conservation Land, which allows
39 farmers who are no longer farming but have not yet developed their property to maintain it in this
40 category of open space. Parcels that are larger than 20 acres do not have an income requirement
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Finance Minutes, 11/1/96, Page 3
I but qualify if they are making a profit. Sutter stated that these are state requirements, and it may
2 be the County's option to further restrict the requirements. Brown asked specifically about golf
3 courses. Sutter asked to see the Assessor's information on the difference between the taxes that
4 would be paid if there was not an open space classification.
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6 The Executive. Wareing gave background on the Executive's budget. There are two
7 reclassifications in the Executive's office, a Senior Secretary to be reclassified to Range 11 and a
8 Clerk Receptionist to a Range 9. There is also an addition to the Executive car allowance, which
9 was less expensive than buying a car for the Executive. The increase to the Current Expense
10 portion of the Executive's budget is due to the reclassifications and the car allowance. Pete
11 Kremen, Executive, explained the reclassification process.
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13 Brown asked the Executive about the retirement fund, which had not been previously
14 budgeted for. The past Executive chose not to take a retirement from the County.
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16 Brown asked about the Conservation Futures Fund. Bennett stated that a small amount of
17 this fund is appropriated for expenditures, making available a small amount available to deal with
18 incidental costs that might arise. Any expenditures of this fund have been traditionally done
19 through supplemental budgets. Kremen discussed the proposed purchase of the portion of land
20 designated Lake Whatcom Trail. There was further discussion regarding the entire fund.
21 Kremen stated that the Lake Whatcom Trail may generate revenue the County did not expect.
22 Sutter stated that the portion of the property that is buildable and slated for sale may be
23 questioned by Lake Whatcom conservation groups. Imhof questioned the amount that is kept in
24 the fund, stating a cap is needed instead of increasing the amount in the fund.
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ADJOURN
The meeting was adjourned at 12:58 p.m.
Jill Nixon, Recording Secretary
ATTEST:
ME
Iim-Mos.,
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Finance Minutes, 11/1/96, Page 4