The URL can be used to link to this page

Home My WebLink About2026-09-22 Budget UpdateBudget Update September 22, 2026 2:04 p.m. Present: Commissioner Pollock, Commissioner Brummer, Commissioner Swope, County Manager Ryan Barrett, Becky Butler, Wes Anderson, Kendra Garison, Grace Jimenez, Kayla Bolster, Graham Gowing, Stacey Werner, Geoff Soderquist Guest(s): Usha Sahadeva-Brooks, Kim Buechel Recorder: Rieva Lester Public comment: None. Risk / Budget Director Becky Butler provided the preliminary budget for 2027 as required per RCW Becky said the budget call letter was sent to offices and departments on June 22 with an Aug. 17 submission deadline. She said the commissioners will hold budget-setting meetings in September, October and November, with the budget hearing scheduled for Dec. 7. Becky noted that the BOCC had set General Fund operations at a 0% increase over 2026. She said a handful of offices and departments requested budget increases. Those include: • District Court: $74,256 to unfreeze one full-time position. • Court Security: $8,103 to cover increased contract costs. • Sheriff: $427,334 to cover salaries / benefits of two deputy positions previously paid for through opioid settlement funds. • Jail: $171,724 for jail medical. • Coroner: $101,721 to hire one additional FTE or $50,793 to increase one half-time position to full time. • Coroner: $78,000 to cover increased autopsy and toxicology costs. • SWW Fair: $334,000 to cover professional services budget for entertainment. • Mental Health Court: $26,221 to change the Mental Health program to a dedicated Mental Health Court. • Facilities: $37,258 increase in Capital transfer for park maintenance. Becky provided the following overview: Overall 2027 budget totals • Projected revenue: Total revenue across all funds is estimated at $179,967,735. • Projected expenditures: Total expenditures across all funds are estimated at $185,524,198. • Budget deficit: The $5,556,463 gap is covered by beginning fund balances carried forward. • Fund balances used: Includes $3,683,317 from the General Fund and prior-period capital resources. General Fund • Total revenue: Projected at $49,364,943, a 1.1% increase over the 2026 revised budget. • Sales tax: Collections run approximately 9% ($496,288) higher year to date than 2025. • 2027 sales projection: Assumes a 10% increase over 2025 actuals, totaling roughly $12.1 million. • Taxable retail sales: Reached $230.6 million in unincorporated Lewis County in Q4 2025, up 19.1%. • Construction growth: Led industry gains, with building construction up 83.9% to $34.2 million in Q4 2025. • Investment interest: Held flat at $3,700,000 pending the completion of 2025 and 2026 reconciliations. • District court traffic fines: Reached 81% of the annual budget target through August. • Federal PILT funds: Fully funded at $622,915, adding unanticipated 2026 revenue for non- taxable federal lands. • County trust lands: DNR revenue is tracking at 97% of the annual estimate through August. • Property tax revenue: Tracking $300,000 below 2026 levels due to levy refunds added last year. • Property tax exclusions: Estimates omit a 1% levy increase, new construction, and banked capacity. • Levy limits: Capped at the lesser of 1% or inflation unless a “substantial need” resolution is passed. • Upcoming revenue adjustments: Assessor calculations for refunds and new construction are expected in early to mid-November. • Final revenue decisions: The BOCC will finalize 2027 General and Road Fund levies on December 7. General Fund expenditures and personnel costs • Total expenditures: Estimated at $53,048,260, up 1.6% over the 2026 revised budget. • Cost drivers: Driven by higher personnel costs, partially offset by reduced one-time expenditures. • Salaries: Increasing by 4.2% ($1,074,023) over the 2026 revised budget. • Benefits: Increasing by 3.5% ($310,807) over the 2026 revised budget. • Collective bargaining: Encompasses approved wage increases ranging from 2.7% to 10% across 14 agreements. Traffic-policing reimbursement adjustments • Traffic policing: General Fund includes a $1,193,831 Road Fund reimbursement at the 2026 level. • Road fund deficit: Omits this payment and must be increased by $1,193,831 before adoption if continued. • General fund reduction: Sheriff revenue must drop by $1,193,831 if the reimbursement is discontinued. • REET options: REET 1 or REET 2 can fund a Road TIP project to preserve Road levy cash. • Fund restrictions: Under HB 1791, REET cannot fund Sheriff operations or routine road maintenance. • Backfill adjustments: Staff recommend a one-time $1.2 million project substitution rather than ongoing operational funding. Recommended fund balance • Ending balance: General Fund balance is projected at $12.6 million after drawing down $3,683,317. • Best practice: Reserves should cover two to three months of operations, or roughly $8 million to $12 million. • Actual use: Drawdowns are typically lower due to staff vacancies and unspent appropriations. Other funds overview • Other funds: Project revenues of $130,602,792 and expenditures of $132,475,938. • Budget changes: Reflect capital project progress, TIP adjustments and the expiration of ARPA funding. • ARPA projects: All remaining American Rescue Plan Act projects wrap up at the end of 2026. • Roads TIP presentation: Detailed review planned for the Sept. 23 budget meeting. Transportation and state funding outlook • Road system: Washington’s 39 counties manage over 39,000 centerline miles of local roads. • County responsibility: Covers 60% of centerline miles and 45% of bridges but receives low gas tax shares. • Motor Vehicle Fuel Tax (MVFT) distributions: County gas tax revenues have been flat to down for a decade due to fuel efficiency. • Forecast reductions: The June 2026 state forecast cut county fuel tax distributions by $5.8 million. • Purchasing power: Outpaced by asphalt and labor costs due to the 1% property tax cap. • Tax base: Unincorporated road tax bases continue to shrink due to city annexations. Exclusions and pending adjustments • Contract attorneys: Requested a 10% rate increase for 2027 Superior Court contracts. • Cost analysis: Staff will present findings at the October 7 budget meeting with attorney representatives. • Labor contracts: Excludes adjustments for two open labor contracts currently under negotiation. • Insurance costs: Excludes final medical insurance rates and pending Washington Counties Risk Pool updates. • Indigent defense: Costs remain variable and driven entirely by mandatory case filings and caseloads. • Review timeline: The BOCC will evaluate requests exceeding the 0% cap from September to November. Preliminary 2027 budget outlook summary • Structural pressure: Persists in the General Fund despite multi-year expenditure reductions. • Service levels: Mandated cost spikes in public defense, jail medical and compensation require service tradeoffs. • State shortfall: Washington faces a multi-billion dollar Near General Fund-Outlook deficit for 2027–29. • Shared revenues: Narrowed state funding may pinch local pass-through allocations like public health. • Public defense shortfall: State funding adds only $106,728 against the county’s $2.6 million public defense spend. Public defense: Becky said public defense attorneys have requested a 10 percent increase for 2027. She noted that upcoming caseload limits will decrease the amount the attorneys can earn as it will decrease the number of cases they can accept. Geoff Soderquist and Wes Anderson said Public Works would like to have $6 million to $10 million in reserves to cover the county’s significant risks related to emergencies, especially considering the number of bridges the county is responsible for. Geoff noted that Lewis County has the third-largest number of bridges in the state. Meeting adjourned at 2:40 p.m.