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2017-11-20 Budget presentation1 Budget presentation November 20, 2017 5:30 p.m. Present: Commissioner Stamper, Commissioner Fund, Commissioner Jackson, Becky Butler, Steve Walton, Arny Davis, Tamara Hayes, Art Fuller Guests: Anthony Ahrens, Mitchel Townsend, Bill Marshall, Fred Wilson, Jan Marshall, Gail Ringsage, Coy Howland-Thompson, Jim Thompson, Steve George, William Pittman, Ron Averill, Justyna Tomtas, Jake Morgan, Clyde Gartner Recorder: Rieva Lester Becky Butler discussed three handouts Anthony Ahrens discussed high number of individuals the county employs. Mitch Townsend discussed the county’s fiscal responsibility. Bill Marshall discussed how well the county is doing vs. other counties in surrounding areas. Members of the audience introduced themselves. Becky Butler gave an overview of the budget, including timelines, challenges, fund types, revenues, expenditures, reserves and changes to the preliminary budget. Becky gave an overview of the timeline, including setting facility “rates.” She said offices and departments submit their preliminary requests in August. She discussed budget limitations and said final tax levy calculations are expected in November. She said the final budget will be adopted Dec. 4. Becky discussed budget challenges, such as indigent defense, inmate medical care, medical premiums, public disclosure, retirement costs, investment interest and revenue limitations. Commissioner Fund discussed the high cost of indigent defense and jail medical care. Commissioner Jackson discussed the work the county undertook to avoid the 68 percent insurance increase it was facing. Becky said the county is trying to bridge a $1.3 million gap for 2018. Mitch Townsend asked why the state insurance commission would have allowed such a huge jump. Commissioner Fund discussed the high costs associated with public disclosure requests. Becky said the state PERS retirement costs also aren’t controlled by the county. She said investment interest has slid. She also said the state doesn’t let the county control how it spends its revenue. Becky discussed the difference between the various funds: the general fund, special revenue, debt service, capital, enterprise funds and internal service funds. 2 Commissioner Stamper discussed the lack of timber tax funds, of which the county used to receive a considerable amount. Becky discussed the various types of revenue, including taxes, intergovernmental, services, miscellaneous, other sources, licenses/permits, fines/forfeiture, sale of fixed assets, interfund loans. Becky discussed levies and taxes. Becky said the county has been losing hundreds of thousands in fines annually because the courts have said someone who cannot afford the fines can’t be required to pay them. Becky discussed the county’s various expenditures and then gave an overview of the revenue in the general fund. Becky said the bond for the jail will be paid off in 2024. Becky said sales tax and property tax make up the bulk of the county’s revenues. Becky then discussed expenditures. She said salaries and benefits make up the bulk of the county’s expenditures. Steve Walton discussed the county’s three interest-arbitration groups. He said the result often favors the groups, not the county. Steve said 68 percent of the county’s budgets goes to salaries and benefits. Becky said that’s why reduction often lead to layoffs. An audience member asked how the county could increase revenues. Becky said sales tax increases may have to be considered. Mitch Townsend said economic development is the answer, not raising taxes. Bill Marshall discussed the need for infrastructure to pave the way for economic development. Commissioner Jackson discussed the Hirst decision. Becky discussed the 2018 preliminary transfers, including emergency management, social services, the fair, the law library, Community Development, the Chehalis River Basin District, Dispute Resolution, Public Health, Senior Services, the Packwood Airport, the South County Airport, debt funds and Solid Waste for future capital expenses. Commissioner Fund left at 6:42 p.m. Becky discussed the changes to the preliminary budget, including the approval of a position in the Assessor’s Office, fingerprint machines, etc. Commissioner Fund returned at 6:44 p.m. Becky said the county will use $1.3. She said use of reserves for all funds is $6 million. Becky discussed the use of reserves over the past several years. She said if costs continue to rise and revenues don’t, cuts may be necessary in the future. 3 Becky said the county has an 18 percent fund balance. Mitch Townsend asked why the county doesn’t loan out its money. Becky said the county is limited on what it can do with its reserves. Becky discussed the changes to the WSU budget, including removing $14,000 from the MOU, removing the travel funding, and moving to another location. Meeting adjourned at 6:56 p.m.