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2024-11-13 Powerpoint 2025 Prelim BudgetLEWIS COUNTY 2025 PRELIMINARY BUDGET REVIEW NOVEMBER 13, 2024 BOARD OF COUNTY COMMISSIONERS Scott J. Brummer, Chair Lindsey R. Pollock, DVM, Vice Chair Sean D. Swope, Commissioner Ryan Barrett, County Manager Becky Butler, Budget Administrator Rieva Lester, Clerk of the Board Statement of purpose of the Committee: Represent the best interests of the entire county while acting as a bridge for communication between the Commissioners and local residents and businesses. •Benefits of the Citizens Budget Committee: •Better communication with the citizens •Outside viewpoint •Citizens’ Priorities •Working with the Commissioners •Current Committee Members: Timothy Wood, Paul Crowner, Jerry Villarreal, Bill Serrahn and Usha Sahadeva-Brooks CITIZENS BUDGET COMMITTEE DISCUSSION POINTS County Data Overview Budget Outlook County Structure Dept./Offices Budget Timeline Fund Types Budget Allocation by County Function Revenue & Expenditures General Fund Expenditures By Function Summary of Preliminary Budget Changes to the Preliminary Budget Budget Reductions OpenGov THE BUDGET PURPOSE •A budget is a legal document that gives local government officials the authority to incur obligations and pay expenses. •It allocates resources among departments and offices and controls spending. •A budget can also be an evaluation tool, comparing commitments made in the previous year’s budget with actual accomplishments. The statutory deadlines for the county budget process conclude with a public hearing and budget adoption in October. However, RCW 36.40.071 allows counties to use an alternative budget adoption process culminating in December and allows counties to adjust the other budget deadlines as needed to meet the later deadline. Most counties use this alternative budget process. County Seat: Chehalis Year Organized: 1845 Total Square Miles: 2,402.8 Population OFM: 84,950 Estimated 2045 Population: 94,348 OFM Middle Projection – a projected increase of 14.65% from the 2020 Census COUNTY STRUCTURE Government Type: County Legislative Body: Board of Commissioners Size of Legislative Body: 3 15 Elected Officials Appointed County Manager LEWIS COUNTY, WA Lewis County is the 6th largest county in Washington by total area. The population figures shown below reflect the official April 1, 2024 total countywide (incorporated plus unincorporated) population estimates released by the Washington Office of Financial Management (OFM). The 2025 population estimates will be released around June 30, 2025. To see recent population trends or a county's unincorporated population, refer to our Tax and Population Data topic page. County Population (2024) King County 2,378,100 Pierce County 952,600 Snohomish County 867,100 Spokane County 559,400 Clark County 536,300 Thurston County 307,000 Kitsap County 286,100 Yakima County 263,200 Whatcom County 238,000 Benton County 217,850 Skagit County 133,300 Cowlitz County 113,900 Grant County 105,300 Franklin County 102,300 Island County 88,650 Lewis County 84,950 Chelan County 82,300 Clallam County 78,550 Grays Harbor County 77,400 Mason County 67,475 Walla Walla County 63,375 Whitman County 48,750 Kittitas County 48,600 Stevens County 47,650 Douglas County 45,150 Okanogan County 43,200 Jefferson County 33,700 Pacific County 23,950 Klickitat County 23,450 Asotin County 22,725 Adams County 21,475 San Juan County 18,475 Pend Oreille County 13,850 Skamania County 12,075 Lincoln County 11,300 Ferry County 7,350 Wahkiakum County 4,550 Columbia County 3,975 Garfield County 2,325 Total Population 8,035,700 https://mrsc.org/research-tools/washington- county-profiles LEWIS COUNTY BUDGET OUTLOOK Property tax increase limited to one percent growth plus new construction and any increases in state assessed utilities The Assessor estimates new construction for Road and General County this year at $430,004, down from $512,004 in 2023 for 2024 taxes. Lewis County’s Median home price in Q2 2024 was $411,600 compared to $396,800 in Q2 2023. The median home price in Washington during Q2 2024 was $695,100 - 6.1% higher than the same time in 2023 – Washington Center for Real Estate Research (WCRER) After a steady increase in Sales and Use Tax from 2019 through 2022, Sales tax revenue has leveled off. Collections through August in 2024 are only 1% higher than 2023. The Lewis County unemployment rate is 4.7% compared to a WA state rate of 4.8% COUNTY DEPARTMENTS AND OFFICES ELECTED OFFICES DEPARTMENTS (General Fund) DEPARTMENTS (Non-General Fund) •Board of County Commissioners •Auditor / Elections •Assessor •Treasurer •Clerk •Superior Court •District Court •Prosecuting Attorney •Sheriff •Coroner •County Administration •Human Resources •Risk Management •Budget •WSU Extension •Southwest WA Fair •Parks & Recreation •Facilities •Capital Planning •IT Services •Public Works •Community Development •E911 Communications •Emergency Management •Public Health & Social Services •Weed Control Services May – budget outlook, analysis and projections June – set budget limitation, internal service rates July – call letter and budget worksheets distributed September – offices and departments submit preliminary requests October – present preliminary budget to BOCC October – meet with offices and departments November – final review of changes November – final tax levy calculations December – adopt final Budget and set Tax Levies BUDGET TIMELINE FUND TYPES •Non-restricted revenue, such as property tax and sales tax •Includes: Administrative Departments (HR, Risk, Budget and County Administration) •Elected Offices (BOCC, Treasurer, Assessor, Coroner, Auditor, Prosecutor, Courts, Clerk, Sheriff) GENERAL FUND (Current Expense) •Hold restricted revenue that is dedicated to a specific use and usually cannot be used for operations in General Fund •Emergency Management, Veterans Relief, Social Services, Community Development, Roads, Health, Southwest Washington Fair and Weed Control SPECIAL REVENUE •Funds are transferred from other funds depending on the type of debtDEBT SERVICE •Used to track capital projects such as buildings (real estate excise tax [REET] revenue is mainly dedicated to capital improvements)CAPITAL •Supported by fees from a business-type activity that cannot be used for any other activity - Solid Waste, Airports and Vader WaterENTERPRISE •Charges to other departments / offices for a service provided internally •IT, Fleet, Risk/Insurance and FacilitiesINTERNAL SERVICE REVENUE SOURCES ALL FUNDS Total Preliminary Revenue Budget for All Funds is $179.6 million EXPENDITURE (USES) ALL FUNDS Total Preliminary Expenditures Budget for All Funds is $196.5 million COUNTY BUDGET BY FUNCTION (EXP.) COUNTY BUDGET BY FUNCTION (EXP.) ELECTED OFFICES DEPARTMENTS •Board of County Commissioners •Auditor / Elections •Assessor •Treasurer •Clerk •Superior Court •District Court •Prosecuting Attorney •Sheriff •Coroner •Human Resources •County Administration •Central Services Admin. •Weed Control Services •Animal Shelter •WSU Extension •Jail (Sheriff oversight) •Juvenile (Superior Court oversight) •Self-Insurance •Court Security •Blake Decision •Board of Equalization •Public Defense / Trial Court Improvement •Civil Service •Disability Board •State Examiner •WACO & WSAC •Boundary Review Board •Senior Facilities •Transfers •Air Pollution •Indirect CAP -NEW GENERAL FUND OFFICES AND DEPARTMENTS GENERAL FUND REVENUE SOURCES Total Preliminary General Fund Budget for Revenue is $46.6 million GENERAL FUND REVENUE HISTORY The 2024 revised budget is increased to show the transfer from ARPA for Lost Revenue GENERAL & OPTIONAL SALES TAX RECEIPTS Includes 3.5% allocated to capital projects GENERAL FUND EXPENDITURES Total Preliminary General Fund Budget for Expenditures is $49.9 million EXPENDITURES BY FUNCTION Public Safety Sheriff Jail Juvenile Coroner Civil Service Law & Justice Prosecuting Attorney District Court Courts: Designated Accounts Superior Court Clerk General Government Assessor Auditor Commissioners Treasurer Animal Shelter Elections Human Resources County Admin. Self-Insurance WSU Extension Senior Services State Examiner WACO & WSAC Air Pollution Control Central Services Board of Equalization Boundary Review Board Disability Board Blake Court Security GENERAL FUND EXPENDITURES BY FUNCTION The chart above does not include operating transfers out of $1.7 Million REVENUE Fund Category 2024 Revised Rev. Budget 2025 Preliminary Rev. Budget General Fund 54,803,325 46,644,012 Special Revenue 1 69,376,457 78,213,932 Debt Service 2,332,286 2,063,553 Capital 2 29,569,041 15,711,755 Enterprise 19,936,483 18,928,526 Internal Service 18,055,459 18,135,402 Total All Funds 194,073,051 179,697,180 EXPENDITURES Fund Category 2024 Revised Exp. Budget 2025 Preliminary Exp. Budget General Fund 51,718,726 49,954,216 Special Revenue 97,509,675 90,034,935 Debt Service 2,329,794 2,063,553 Capital 32,218,628 16,688,188 Enterprise 19,202,301 18,725,964 Internal Service 20,213,414 19,105,308 Total All Funds 223,192,538 196,573,164 SUMMARY OF PRELIMINARY BUDGET 1- Special Revenue includes federal stimulus funds from ARPA and LATCF 2- Capital Funds include Broadband Expansion in Winlock funded by a WSBO Grant PROPERTY TAXES General Assessed Value New Construction value not included •2025 $16,794,783,019 •2024 $16,079,842,020 New Construction Est. •2025 $220,422 •2024 $264,615 Increase in State-Assessed Utilities •2025 $TBD Roads Assessed Value New Construction value not included •2024 $11,485,093,109 •2025 $11,172,765,106 New Construction Est. •2025 $209,582 •2024 $247,389 Increase in State-Assessed Utilities •2025 $TBD BUDGET REDUCTIONS Year -end 2023 the county used fund balance of approximately $1.5 million. For 2024, the BOCC authorized the use of $1.5 million of one-time revenue to reduce the projected budget deficit, and the County Manager eliminated positions under the BOCC to offset the impact. Using one-time revenue is not a long-term solution to a structural budget deficit, so it is necessary to make further adjustments to maintain cash flow to pay expenditures. General Fund offices and departments were asked to prepare budgets within the expenditure limitation provided which was comprised of a 0% increase in wages (absorbing wage increases) and operations plus the 2025 interfund allocations. Expenditures that did not fall within this amount were discussed during September, October, and November meetings. Funds receiving an operating transfer from the General Fund were asked to review reductions with the County Manager. Budget increase requests without new revenue were not considered. Reductions were submitted in the preliminary budget proposing to freeze approximately 15 positions in the General Fund in addition to already reduced positions in 2023 and 2024. Reductions as proposed will impact services to the public in all offices and departments The BOCC made final decisions on 2024 Budget Requests on Monday, November 12th. •Implementation of the Cost Allocation Plan $2.3 Million reduction to General Fund Expenditures. •Added back: •HR - .50 FTE •Corrections - 3 FTE •Juvenile- 1 FTE •Animal Shelter Maintenance - $45k offset with revenue transfer •District Court FTE – Contingent on use of Opioid Settlement Funds for probation services •Interfund Rate Adjustments - $183,365 •User fee reduction for the Sheriff’s Office 911 rate - $687,055 •Sheriff FTE – TBD Monday, November 18th •Jail Medical – TBD Monday, November 18th CHANGES TO THE PRELIMINARY BUDGET BUDGET TO ACTUALS COMPARISON 2019 -2023 ACTUALS 2025 PRELIMINARY BUDGET 2019 Actuals 2020 Actuals 2021 Actual 2022 Budget 2022 Actual 2023 Budget 2023 Actual 2024 Budget 2024 Actual 2024 Estimated Year End 2025 Prelim Budget 9-30- 2024 Revenues 40,344,809 40,764,741 43,790,213 43,253,361 44,419,877 45,136,437 46,339,063 54,803,325 40,508,141 48,646,452 46,644,062 Expenses 39,511,317 38,228,971 43,416,788 47,562,435 44,373,277 50,162,554 47,839,629 51,718,726 40,390,258 50,954,483 49,954,216 Revenues Less Expenses 833,492 2,535,771 373,425 -4,309,074 46,600 -5,026,117 -1,500,566 3,084,599 117,884 -2,308,031 -3,310,154 OPENGOV FINANCIAL TRANSPARENCY PORTAL https://lewiscountywa.opengov.com/ Explore the County Budget using the OpenGov interactive transparency portal. NEXT STEPS Incorporate Final Changes: •Property Tax budget decisions for new construction, state- assessed utilities, banked capacity and 0%-1% increase. •Update the Final Budget for BOCC-approved department and office budget adjustments, revenue projections and grant funds. Final Budget Hearings 12/2/2024: •Setting property tax levies for both the General and Roads •Adopting the Final 2025 Budget and Capital Plan THANK YOU For questions please contact: County Manager Ryan Barrett at 360-740-2697 Budget Administrator Becky Butler at 360-740-1198