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HomeMy WebLinkAboutFinance October 19 1993WHATCOM COUNTY COUNCIL FINANCE AND PERSONNEL COMMITTEE Budget Review Session October 19, 1993 The meeting was called to order at 11:00 a.m, in the Council Chambers, 1000 N. Forest St; Suite 203, by Committee Chair, Ken Henderson. Also Present: Absent: Robert Imhof None Dennis Vander Yacht Other Council Members present were Larry Harris, Marge Laidlaw and Barbara Brenner. Other County officials present were Shirley Van Zanten, County Executive; Tom Sutberry, Executive Office; and Barbara Cory, County Treasurer. Tom Sutberry talked about revenue sources in Current Expense. The major revenue source is property tax (see pg 38 in Revenue Detail in volume 1). The projection was $9.8 million for 1993. 1993 year to date means budget as of September. Original projected amount for 1993 of $9.8 million but will collect $10,086,000 in 1993. Part of that is because the total assessed valuation came in excess of what was projected in last year's budget. Projecting $11,276,795 for 1994 which is 99 percent of what is expected to be collected in the general levy allocation for the current expense fund. That includes $180,000 that used to be dedicated to the river improvement fund. General property tax levy continues to be the most productive source of growth in current expense. According to state law we get six percent on top of the existing year's collections plus all new construction. Levy rate should be the same as this year. Laidlaw asked if the $9.9 million less six percent which comes out to about $600,000, and the difference between the $10 million and the $11 million is 1.287; so what is the rest of the property tax attributable to besides the six percent? Laidlaw asked which new construction projects were included in this calculation. Sutberry projecting $1.62 per thousand general levy rate for next year. Sutberry also spoke about the next largest revenue source, sales tax. Originally anticipated $6.9 million for 1993 but now projection it will be $450,00 less. The cogeneration plant at BP was sold on the deferral program according to the Department of Revenue. The deferral is a new state law that allows them to pay sales tax on a delayed program that allows them to start paying three years after they complete their project, payments are spread out over five years. That represents $500,000 to a million dollars in revenue to Whatcom County this year. The Lynden annexation west of the Guide will cause a loss of about $250,000. The Peace Arch outlet may offset the Lynden annexation. A 3.125 percent inflation factor has been added. Estimated $6.6 million for sales taxes in 1994. Another major source is the gambling tax which was $500,000 in 1993 and should be about the same in 1994. Only growing revenue source is property tax. Property tax Finance and Personnel Committee Minutes, 10119193, Page 1 penalties and interest should be a little more than $750,000 in 1994. Building and structures, and licensing and permits from Building and Codes Division are expected to be $844,000 for 1994. Another revenue source is interest earnings, which was projected to be $1.9 million in 1993, but actually was down to about at $1.5 million for 1993, and same amount for 1994. Laidlaw asked why the big drop in fee for services (interfunds). He replied that it relates to the elimination of Public Works Administration Department. They were part of Current Expense budget before but will not be in 1994. Van Zanten cautioned Council to be careful about transferring Solid Waste funds into the general fund. There is now an interlocal agreement authorizing surcharge at the disposal facilities at the time of service. The money goes into the Solid Waste account, executive committee of the cities would have to be party to agreement to put as to where the money goes. Henderson asked about the interfund reimbursement by ER & R, Solid Waste, the road fund. He also asked about fines and forfeits -what the income amount is. Non - parking fines actuals have increased slightly over the previous year. Bob Woods explained the year -to -date and other column headings on page 38 which were causing some confusion. Laidlaw asked about the REET revenue from the sale of the BP refinery. Sutberry said he is not sure how the sale was structured so it hard to forecast. This is not included in the budget because it is not known what is involved in the sale. Henderson asked about the 1992 -1993 $1.1 million increase in total revenues and transfer in on page 39. From 1993 -94 there is about a 1.4 million increase. Sutberry responded that the numbers for 1993 are not accurate since the year is not over. That is about 3 1/2 to 4 percent increase each year. Laidlaw asked if there are any funds to be closed out entirely. He responded the following funds would be closed in 1993 and the money will go into the general fund: the Bond fund (about $100,000), Information Services ($380,000) and Nor -Bell ($100,000). Health will take less this year from the general fund because of cuts. Sutberry and Van Zanten reported that in 1995 Public Health will be under the direction of the County. Legislation was apparently passed last session which would put Public Health under the direction of the Counties. A portion of the cities' motor vehicle excise tax is supposed to go to the Counties to assist in the payment of it, so the County will be fully responsible for service and funding of it. This is to take place July 1995. Hopefully this will be moved to January 1, 1996. Henderson asked if the executive had no recommendations on new taxes. She replied that the Executive did not present new taxes last year and is not recommending any this year. Henderson replied that the system of fees for services seems like a system of hidden taxes. The Executive replied that certain specific services should be paid by the user. Bob Woods asked about fee revisions included in the budget. Sutberry responded that some new fees are in this budget. The Executive reported that Buildings and Code is not cutting staff because they are Finance and Personnel Committee Minutes, 10119193, Page 2 proposing fee increases. If fees are not approved, staff will have to be cut. Van Zanten discussed Buildings and Code fees and reported that the fees cover the entire cost of operation. Staff should not be cut there in order to repay the Current Expense Fund. In years past their revenues have exceeded their expenditures. Some years not. Laidlaw asked if Criminal Justice was built in assuming funding will continue from the state and city. The reply from the Executive was yes. Harris asked if the intergovernmental revenue figure was money that has already been awarded to the County. No future grants are built into the budget. Van Zanten said there are four areas where grant money is available: Solid Waste, Public Health, and two regarding water quality. Henderson asked if the Executive had considered further reductions in staff or budgets. She replied that on page 12 of the Budget Message which shows the beginning fund balance forward includes the $500,000 reserve. The Executive will only be sending forward supplemental budgets for those things required by law or that can be offset by revenues. Laidlaw stated that the budget shortfall is $800,000 not $3 million. The Executive replied that the budget she is presenting is a balanced budget. The budget represents $810,000 cuts over 10 departments, not across the board cuts. Woods stated that some additional payout will be necessary in January for 1993 salary accruals. Brenner asked how many positions will be cut. Van Zanten replied that 13.833 positions will be cut. These may be part -time positions too. Fractions may represent portions of the year rather than full time employees (FTEs). On the middle of page two is an overview of how the budget was built. Exhibit C on page xi of the Budget Message shows the departments that were asked to make cuts. Seven hour days to offset the shortfall were originally considered. Ultimately departments were asked to cut a fixed dollar amount. The percentage varied from department to department. The Executive is recommending two additional correction officers in the jail and in the Sheriffs office add an additional DARE officer ($30,000). Also proposed to add $88,000 to begin purchase of a voter management system. She cautioned that Current Expense is one part of the budget. There are other independent budgets that cannot be moved to Current Expense. Combined Treatment has been getting a grant from Current Expense, and the Executive has asked that the amount be cut by 10 percent. Other funds that do interact with Current Expense are the Health Department and the Parks Department. Current Expense contributes to the unfunded portion (not funded by grants). Both Health and Parks were asked to decrease their requests by 10 percent. The Executive said that there are a couple of places that show additional staff: corrections officers in the jail; contracted services becoming staff positions; temporary part time staff becoming part time staff; Administrative Services -Human Resources person to do data entry for payroll on JD Edwards system; Administrative Services -one person to work half time in the Executive office and one half time as phone relief switchboard person in the kiosk; a half time person funded by Transportation Services to review all job Finance and Personnel Committee Minutes, 10119193, Page 3 descriptions in Transportation Services to be fully paid for by road dollars. Also proposed one added staff person in Building Maintenance, as an Electronic Specialist. This is an independent fund so not directly funded by Current Expense. The department is partially funded by a per- square footage charge from each department. The Executive has also recommended Transportation Services add one engineer to specialize in the Pavement Management System and a half time clerical counter staff person. These positions would be paid from the road fund. The Flood Control Zone District is asking for an additional engineer and a clerical staff position - planning, mapping and funding sources to be worked on by the new staff. The position to be funded by Flood Control assessment. The Executive said that they will try to pick up people who are being laid off in some of the new clerical positions. Henderson asked about the new payroll position. Sutberry replied this is separate from payroll, it would be for Human Resource data base entry. Harris asked about the $3 million shortfall being explained sufficiently to the media and the public. Van Zanten explained that the process is an ongoing one. The first run of numbers for the projected cost of operation for 1994 and the projected revenues came up $3 million dollars. Because the union was approached the media was alerted. She explained it wasn't a real deficit. Vander Yacht stated that the budget shortfall has been a factor to the election campaign. The meeting was adjourned at 12:55 p.m. ATTEST: 1_ftt�� Marina McAllister, Assistant Clerk WHATCOM COUNTY COUNCIL WHATCOM COUN , WASHINGTON Ken Henderson, Committee Chair Finance and Personnel Committee Minutes, 10119193, Page 4