HomeMy WebLinkAboutFinance October 24 1996WHATCOM COUNTY COUNCIL
Finance and Administrative Services Committee
October 24, 1996
The meeting was called to order at 11:34 a.m. by Committee Chair Robert Imhof in the
Council Chambers, 311 Grand Avenue.
Also Present:
Marlene Dawson
Tom Brown
Staff Also Present:
Dave Wareing, Executive Office
Brad Bennett, Administrative Services, Finance
Barbara Brenner, Council member
Shirley Forslof, Auditor
COMMITTEE DISCUSSION
Absent:
None
1. GENERAL DISCUSSION REGARDING THE PROPOSED 1997 WHATCOM
COUNTY BUDGET (AB96 -367)
Imhof stated that by the end of this meeting, he wanted to have a rough schedule of which
departments will be heard on which days over the next two weeks. He thought one -half hour per
each department would be sufficient and requested Council members have their questions ready.
Three departments will be heard per day beginning at 11:30 a.m.
Bennett and Wareing discussed the budget summary section. The total revenues this year
are being projected at $40,924,000. Combined Treatment Services and Developmental
Disabilities were consolidated within Current Expense, which accounts for over $2 million of that
increase. The balance of the increase in revenues comes from property tax, which is due to new
construction, and a $750,000 reduction in sales tax revenues as a result of changes in the law.
The current costs from Bellingham added $900,000 to the revenue. A $500,000 principal
payment is due on the $4 million outstanding debt for the past criminal justice costs;
approximately $170,000 will be paid in interest. The County's interest revenues are being
positively impacted because of the current interest rates and the larger reserves. The state
changed the fee structure for motor vehicle licensing, which will allow the County to realize
approximately $189,000 in additional revenue.
The County's on -going expenditures are $40,644,00, which is up from $36,400,00 from
last year. The major significant change is with step increases in contract settlements. The net cost
of new positions to Current Expense is $197,000. Money has been set aside for a computer
Finance Minutes, 10/24/96, Page 1
I revolving fund to provide for computer replacement, as the system is aging. Brown asked if there
2 is some way to monitor the costs and effectiveness of the revolving fund in the future. Wareing
3 replied his office has examined the Equipment Rental & Revolving (ER&R) Fund, specifically
4 addressing cash and equity, to ensure meeting future needs in this area. Discussion followed on
5 the need for a fund to replace computer equipment as it deteriorates.
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7 Other expenditures that increased are in the juvenile area with the early intervention
8 programs.
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10 There was discussion regarding the conflict contract for Superior Court. Wareing noted
11 there is a possibility of doing this service in -house in the future to keep the costs down.
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13 Continuing with one -time expenditures, the biggest costs involve boosting the reserves in
14 Tort and Health Insurance/Workers Comp reserves. Levels have been reduced in the past, and
15 the budgeted amount is to bring it up to standard. These funds are drawing interest, which is
16 credited to Current Expense. In order to meet minimum software standards, $300,000 is
17 budgeted for computer replacements. A cooling tower on the public safety building needs
18 replacing, which amounts to $60,000. Computer replacement occurs on an as needed basis.
19 There was further discussion on the type of computer replacement and repairs that may be
20 necessary.
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22 Brown asked why the cost of the cooling tower was not taken out of the department's
23 building maintenance fund. Bennett stated that there is something new - -a reserve for
24 supplemental budgets - -and requested $100,000 to be appropriated that would be used at the
25 Executive's discretion in place of small supplemental budgets. The Executive would report to
26 Council to let it know what was done with the funds as they are withdrawn. Brenner and Brown
27 stated that they both have concerns about this proposed reserve fund.
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29 Bennett stated that there is $90,000 slated for Planning and Development Services to
30 develop a critical areas incentive program. Fifty thousand dollars is slated for a criminal justice
31 database. This system will provide the same information to all the necessary departments and
32 requires entering the information only once. This will integrate with the City of Bellingham and
33 eventually the small cities. Bennett noted $63,000 is budgeted for updating the permit plan
34 software in Planning and Development Services.
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36 There is $50,000 budgeted for a live scan fingerprint machine for the jail (SherilTs Office),
37 which allows for a much more efficient system.
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39 Wareing discussed the direction the County is taking by using imaging systems instead of
40 inputting large amounts of information. There is a pilot program that is going to be installed in
41 the Auditor's Office.
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I Bennett stated that $51,000 is budgeted for American Disabilities Act (ADA) retrofitting
2 of County facilities; $25,000 budgeted for graphical interface to the AS /400 system; and $18,500
3 budgeted to purchase an accounts receivable module for the finance system in the JD Edwards
4 System.
5
6 Brown brought up the problem of lack of networking between the Courthouse and the
7 Northwest Annex building. Wareing responded that one of the projects they are working on for
8 1997 is creating a Wide Area Network that incorporates all the County facilities.
9
10 Bennett further stated that $11,300 is budgeted for a computer storage system for plat
11 maps. Discussion took place regarding these maps in Planning and Engineering. Forslof stated
12 that the Auditor's Office is looking to printing maps from computer - generated programs.
13
14 Bennett noted that $23,700 is budgeted for performance evaluation software. This system
15 is legally defensible, will standardize the system throughout the County departments and be more
16 user friendly.
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18 According to Bennett, $75,000 is budgeted for retirement cash -outs. These are the ones
19 that the County knows about at this time. There is a provision for others that come up
20 throughout the year, which is $150,000.
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22 Other small items -- one -time expenditures -- amount to $10,000.
23
`,4 Bennett then focused on the projected items of the fund balance. The actual beginning
25 fund balance in Current Expense for 1996 was $2,107,000, with an operating deficit of $306,000
26 and one -time expenditures of $504,000. This year's increased revenue projection is $1,176,000,
27 which comes from property taxes; more state forest monies than anticipated; permit and plan
28 checks fees coming in above what was projected; and increased interest income, both for interest
29 on taxes and regular income. There was discussion regarding Planning and Development
30 Services' plan checking system and permitting fees. There was a decrease in retail sales tax
31 revenue. The amount the County will lose ($750,000) is actually less than thought, which was
32 approximately $1.2 million. The increase from the City of Bellingham settlement was $1,900,000.
33 An agreement was made with small towns for them to pay a proportion of the Health
34 Department's budget. The state has currently relieved the small towns of some of these costs.
35 The County is paying the small towns $125,000 to settle up for 1995 over payments. The state
36 reimbursed the County by a block on the motor vehicle excise tax in the same amount. The
37 budget lapse (the amount of money that departments were approved to spend and did not) was
38 approximately 2.5% or $923,665. The County intends to reserve $750,000 for a rainy day fund.
39
40 The County will start the new year with $4,421,259. This provides for consolidation of
41 Combined Treatment Services Fund and the Developmental Disabilities Fund into Current
42 Expense. It is proposed reserving an additional $1.2 million for cash flow reserve. The
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Finance Minutes, 10/24/96, Page 3
I contingency reserve is for supplemental budgets, which does not include the $100,000 the
2 Executive requested. The unreserved balance is $834,000. Unreserved funding is available for
3 additional programs the Council wishes to implement.
4
5 Wareing stated that this version of the budget is a prepublication one, which was
6 distributed today. ADS is still doing final proofing of the final document, which will be published
7 and distributed late today or tomorrow.
8
9 Dawson asked about interest earnings. Imhof replied there is a policy on how those funds
10 are invested. The Treasurer, Assessor, Auditor and the Council Chair decide how the funds are
11 invested. Cory stated that we are restricted by state law as to how these funds are invested. The
12 County cannot invest in the stock market. Typically, most of the investments are in treasuries and
13 securities. There is a copy of the investment policy in the Council Office library.
14
15 Wareing stated that Council needs to set the amount of money to be contributed to the
16 Nooksack Steering Committee, as well as the Lake Whatcom Water Management Plan. The
17 Executive Office will provide more information on service requests. The public defender is
18 concerned because the limits of ongoing expenditures and full time employees (FTE's) in the
19 County. The County was not able to fund additional positions in Auditor's Office and Public
20 Defender's Office. There are issues that are still open if the Council wishes to address them.
21 Imhof stated that the Council has asked the Executive to treat the crime problem of the past year
22 as a one -time cost. If this continues, Council will deal with it later.
23
14 Wareing also discussed parity with other counties for the Court Commissioners. Imhof
25 stated that there is a policy on the Commissioners' salaries versus the judges' salaries.
26
27 Wareing stated that there are some vehicles that have been removed from the departments
28 and, as the mileage has not justified having the car, these would better be put into a pool. Also,
29 four positions have been reduced in Public Works.
30
31 Imhof stated that Monday's meeting will be rescheduled to Wednesday, October 30, to
32 discuss the Council Office (12:30), Parks (12:00), and Assessor's Office (11:30) budgets.
33 Department heads will not need to give a presentation.
34
35 Thursday's meeting has been changed to Friday, November 1, from 11:30 a.m. to
36 1:00 p.m. (11:30 Auditor; 12:00 Treasurer; and 12:30 to be announced). The Thursday,
37 November 7, meeting has been moved to Wednesday, November 6.
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ADJOURN
The meeting was adjourned at 1 p.m.
Jill Nixon, Recording Secretary
ATTEST:
- wn- Davis, Counc
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
Robert Imhof, Counc' ember
Finance Minutes, 10/24/96, Page 5