SAN JUAN COUNTY BUDGET
|
|
||
|
SAN JUAN COUNTY BUDGET |
|
BUDGET ADOPTION SCHEDULEPresentation of the Land Bank Budget Public Hearing and Comment on the County Budget Final Budget Adoption
Related storiesLETTER TO THE EDITOR -- about 2002 County Budget San Juan County Tax rates by taxing district 1999-2001 Chart of San Juan County's current expense (general) fund's cash balance | |
County could face $400K cuts in 2003 budgetposted 07/02/02
As a result of passage of Initiative 747 the county will be limited to a 1 percent property tax increase next year. "Last year we took every available dollar,"said Commissioner John Evans. "There is nothing left. There ain't nothing there. " Stephens noted a bright side to the budget. "The expenditure side is very positive," he said. "Spending is up only 2.4 percent. If that were to hold, we would have a higher reserve." The county could end the year with a $2 million reserve he said. Commissioner Rhea Miller noted the reserve could save some county jobs. County Commissioner Darcie Nielsen mentioned a different approach to budgeting which she learned about at a recent conference. "You basically set price of government. This is the amount we are going to spend and work back from there. It is a performance based approach," she said. "I'm not sure we would be ready to get there in the first year." The budget process starts with the budget call by July 12, 2002. Stephens is preparing a 15-20 page public budget document which will be available mid-September. The final budget is adopted in early December after a series of public hearings. BOCC approves 2002 budgetBy Sharon Kivisto posted 12/04/01
The total budget is up 3 percent over last year. According to Stephens the levy rate for 2002 will be $.94 per thousand dollars of assessed value. That compares with $.89 in 2001. Commissioner Darcie Nielsen and Commissioner Rhea Miller voted to collect the maximum property tax rate for county current. "It is not easy to do this," said Nielsen. "But we do need to maintain a level of service. This is the best and most prudent decision." Commissioner John Evans voted against the increased levy and against the county conservation futures levy. He had suggested during the budget process that the county not collect the county conservation futures levy during the budget crisis. "This should not be construed to mean I do not support the Land Bank and setting aside conservation lands," he said. The county collected $209,666 in this fund in 2001. The majority of the Land Bank's budget comes from the real estate excise tax. Stephens told the commissioners the futures fund will not be increasing as rapidly as it has in the past. The state Department of Revenue has decided the fund is subject to the restrictions imposed by Initiative 747. In the past the fund did not have a limit on annual increases. It was a certain percentage of assessed value. County budget approvedposted 11/28/01
Commissioner John Evans and Commissioner Darcie Nielsen had been in favor of closing the Courthouse for six days as a way of saving money. During the budget hearing Nov. 27, Evans said the idea was off the table. "The response universally was it was not a good idea," he said. Commissioner Darcie Nielsen agreed it was off the table. "We don't have the management capability to do that at this time, " she said. The BOCC resumed the continued public hearing on the budget at 9 a.m. Tuesday, Nov. 27. Commissioner Rhea Miller, noting the compromises the board had made in crafting the budget, moved to approve the budget as presented. Nielsen wanted more cuts. At her suggestion $25,000 was subtracted from the county prosecutor's office for work related to the Growth Management Act. Prosecutor Randy Gaylord said the reduction will allow for only five months of GMA-related work in 2002. Nielsen increased the amount taken away from professional services for the Planning Dept.'s GMA work. Evans asked Planner Laura Arnold how she would handle the reduction. "We'll race like hell to get a (professional services) contract to finish up the Lopez Village plan," she said. Asked about the rest of the pending GMA work she replied the money is not there to do it. In other cuts, the commissioners reduced their travel budgets to $1,300 each. Evans suggested similar cuts be made in other county departments. Out-of-county travel had been cut $7,500 in previous budget discussions. Another $5,990 in travel was cut Nov. 27. Because other departments would not be requiring a reduction in hours, she said the BOCC should take back the $7,000 reduction in BOCC staff time previously agreed to. With all the changes the budget ended up in the black by $191,289 if spending was held to 97 percent of the agreed upon budget. All three commissioners noted the difficult time they had working on the 2002 budget. Evans reiterated his fundamental opposition to taking the maximum amount of property taxes. "If state law said we could take 8, 10 or 12 percent we'd be having the same arguments," he said. "If you look out in the future we need to do something dramatically different." He was disappointed his fellow commissioners wouldn't agree to offset the tax increase by not collecting the $200,000 in conservation futures for one year. "I find it remarkable we're funding the Land Bank without a blip or thought to the $200,000." Nielsen believed the voters had expressed their overwhelming approval of the Land Bank. "Quite frankly, I'm disappointed with the lack of desire to do anything differently," she said. "I'll be pushing again for a county administrator." She reiterated her desire to combine the planning department and the permit center. Miller noted the drop in tax rates in the last 27 years. "We have a long history of keeping tax rates down,"she said. "In 1974 the tax rate was $17.45, in 1979 it was $12.91. In 2001 it is $9.21. The county has only 9 percent of the property tax bill. And we're raising it the price of a pizza. " All three commissioners worried about the long-term financial outlook. Evans suggested after the first of the year, the BOCC begins exploring other ways of providing county services. Miller and Nielsen voted to approve the budget. Evans voted nay. County Auditor Si Stephens will prepare the budget for the final adoption slated for Dec. 3. BOCC weighs pay cut vs tax increaseposted 11/14/01
During most of the budget discussion Tuesday, Nov. 13 the commissioners were operating under the assumption taking the maximum property tax -- an additional $500,000 per year -- would require an increase in the rate from 77 cents per $1,000 of assessed value to 91 cents. That would have been $35 on a $250,000 home. Towards the end of the discussion, county Assessor Paul Dossett informed the BOCC the increase would be seven cents per $1,000 of assessed value -- for a rate of 84 cents per thousand. That would be an increase of $17.50 a year on a $250,000 home. The different figures are a result of the new totals for the assessed property values in the county. The assessed value went up $305,847,269 or a 9.1 percent increase over 2000. The increase is due to the revaluation of Lopez, Shaw, south San Juan, Blakely, Decatur and small islands in the area as well as $67 million in new construction valuation. The total assessed value is $3,660,507,715. In other words $3.6 billion. Under those figures, if the BOCC increased the property tax to the maximum allowed an owner of a million dollar home would pay an additional $70 a year in property tax. Rather than raise the taxes, Evans and Nielsen suggested having county employees take six days of unpaid leave. Nielsen suggested three of those days could be the week of Thanksgiving. Evans suggested the other three days could be taken at the Christmas holiday. Jan Vogee of the Permit Department suggested the holiday season might not be the best time to give employees unpaid leave. An employee who is paid $30,000 a year would lose $692 per year in pay. At $50,000 a year an employee would lose $1,153. Contracts with managers would have to be renegotiated in order to put the plan in effect. Under state law elected officials wages cannot be reduced while they are in office. They would be asked to voluntarily give back six days of pay. No decision was made. Personnel Manager Jamie Marsden and Administrative Services Director Dave Zeretske were asked to research the days off proposal. The meeting will resume at 9 a.m. on Nov. 27 in the county Courthouse. | |
County budget hearings todayposted 11/13/01
The budget must have two votes in order to pass. One of the major stumbling blocks is the amount of a property tax increase. At the Oct. 31 meeting, there was confusion among the board over what is meant by "banked" taxes. Deputy Prosecuting Attorney Karen Vedder said the term refers to tax capability not actual dollars. She explained the legislature created the "banked" concept in 1980. Property taxes were limited to a maximum increase of six percent annually. Taxing districts which chose not to take increases could find themselves hurt in the future. By allowing taxing districts to "bank" the ability to tax at a higher rate, the legislators made sure decisions made by elected officials in the past would not limit options in the future. The "banked" amount is not back taxes, no actual money is banked. What is "banked" is the ability to tax at the higher rate. If a taxing district decides to use its banked amount, the tax rate is increased. This does not affect taxes paid in the past. The county could collect an additional $500,000 in 2002 by utilizing the tax capacity. There is disagreement among the commissioners over increasing property tax. Commissioner Rhea Miller thinks the county should increase the property taxes to the maximum allowed -- another 14 cents per thousand dollars of assessed value. This would add $35 per year to the tax bill for a $250,000 home. Commissioner John Evans is adamantly opposed to the idea. "Who it would hurt most is working families. Another $35 to $120 affects them a lot," he said. "I'm not a big fan of taking the banked amount," said Commissioner Darcie Nielsen. Miller said, "It is a bit of a myth, how it would effect taxpayers." She said she had spoken to her opponent from the last commissioner race and he said he didn't have a problem with a tax increase. The commissioners discussed requiring county employees to take six unpaid days per year in 2002. Auditor Si Stephens estimated it would save the county $159,000 if the sheriff's office staff was included. Whether this would mean shutting down the county offices or having individual departments stagger the days off was part of the discussion. District Court Administrator Marion Melville said the needs of citizens to obtain emergency court orders should be a consideration. More discussion of the idea is planned. Nielsen wants to take additional cuts out of individual county departments. The board has already cut $407,600 by reducing staff by approximately two positions in administration, two positions in the Permit Center and one and one half positions in Health and Community Services and by reducing travel and other administrative costs. On Oct. 31, Nielsen had a list of another $35,000 in cuts. One of her proposals is to eliminate passport processing. County Clerk Mary Jean Cahail has said the passport program produces revenue for the county. Miller wants to talk to the department heads and find out what effect additional cuts would have on the individual departments before making agreeing to more cuts. "We have cut services in key areas. I don't want to take the approach of a thousand cuts and everybody bleeds. Some budgets are already cut substantially," she said. The public will have its chance to comment beginning at 1:30 p.m. Tuesday, Nov. 13 in the commissioners' hearing room in the county Courthouse. The BOCC is scheduled to adopt a budget for 2002 on Dec. 3, 2001. |
Summary by county Auditor Si Stephensposted 11/01/01
The Board reduced preliminary expenditures by $407,600, including reducing staff by approximately 2 positions in administration, two positions in the Permit Center and one and one half positions in Health and Community Services. The Board reduced travel and other administrative costs on a department by department basis to reach the total of $407,600. The Preliminary budget projects an ending reserve balance of $304,000. The Board, by policy, would like to keep a reserve balance of $1.2 million. Although the Board moved unanimously to present this preliminary budget to the public for comment, all three board members expressed dissatisfaction with one or more elements of the plan. Copies of the preliminary budget are on file in the Auditors office 360.378.3356. |
Budget sent on to public hearingBy Sharon Kivisto | |
|
posted 10/31/01 updated 11/01/01
The BOCC is trying to fix more than a million dollar shortfall with a combination of increased revenue and decreased expenditures. There is disagreement in both areas. Commissioner Rhea Miller favors increasing the property tax for county current to its maximum allowable rate which would be $.91 per thousand. That is an increase of $.14 per thousand (an additional $35 per year for a $250,000 home). Commissioner John Evans does not want to take the "banked" amount. Banked is the term used to refer to tax capacity which is not used by taxing districts. It does not refer to any actual money set aside for use. A "banked" amount is just a number which a taxing district could collect if it chose to. The county could collect an additional $500,000 to $650,000 in 2002 if they utilized the "banked" amount. If they do not utilize the additional tax capacity, that $500,000 to $650,000 is not carried over. The capacity to increase is carried over. Commissioner Darcie Nielsen favored utilizing $200,000 of the banked amount. If Initiative 747 passed she would consider increasing that amount an additional $150,000 to cover the resulting reduction in taxes. Evans and Nielsen agreed to cut $150,000 from the county Permit Center and the Planning Department. They thought another $50,000 could be saved if some changes took place. Evans suggested the board pledge to work on reorganization in the next three to five months. "It's not a matter of rearranging people but of finding different ways of doing things." |
San Juan County has lowest property tax rates in the stateSan Juan county taxpayers pay an average of $8.35 per thousand of assessed value in property tax in 2002. That rate is the lowest of any county in the state. Island County is the second lowest with $10.24 per thousand. The average state-wide is $12.96 per thousand. Statistics for all 39 counties in Washington are posted in a chart on the Dept. of Rev. Web site. In 2000 San Juan County's property tax rate was $8.29, Island County's rate was $10.10 and the state average was $13.39. (An earlier version of this story used the 2000 rates.) The $8.35 is an average because rates for San Juan County residents vary according to which taxing district their property is in -- school, port, hospital, fire, library, etc. Chart of tax rates by island |
|
Nielsen said, "I'm totally ready." She was a county planner before becoming commissioner and has advocated merging the Planning department and Permit Center for years. Tuesday she also expressed interest in merging some of the Environmental Health permit work into a combined planning/permit department. Miller opposed the amount of the cuts to planning and permits. She agreed to lower the amount of reserve she wanted from $600,000 to $400,000. Other cuts were considered. Nielsen suggested cuts in parks, the fair and recreations programs saying user fees could cover the decrease. She also said the county could save $6,300 by eliminating the passport processing service. County Clerk Mary Jean Cahail told Nielsen the $15 charge for the service produces revenue for the county. The commissioners did not agree on the budget and will pick up where they left off at 9 a.m. Wednesday, Oct. 31. As they left it the 2002 had a $340,000 reserve if the following was done:
Tax increases and job cuts consideredBy Sharon Kivisto posted 10/24/01
The 2001 property tax for the county current fund is $.77 per thousand. That could be increased to $.91 per thousand ( an 18 percent increase) if the county decided to take the maximum allowable levy. A homeowner with a $250,000 house would pay an additional $35 in property tax in 2002. The property tax for county current is only part of a San Juan County resident's tax bill. In 2001 San Juan County taxpayers paid $27,959,669 in property taxes. $11,282,712 of that went to the state. Of the remainder $2,800,968 went to San Juan Island School District. The county collected $2,608,080 for the county current fund and $1,870,241 for the county road fund. Check the chart of taxes collected by taxing district for the complete breakdown. Tax increases are limited to 6 percent annually. If Initiative 747 passes the increase would be limited to 1 percent. There is an exception to the 6-percent limit. Under state law the taxing districts can decide to increase to the maximum allowable limit even if it exceeds the 6 percent restriction. The tax rate for county current is not presently being collected at the maximum rate. According to county Assessor Paul Dossett in 2002 -- assuming I-747 passes -- the county could collect an additional $495,000 over the 2001 taxes by taking the maximum tax rate. If I-747 does not pass and the county takes a 6 percent tax increase in addition to bumping up the rate to the maximum an additional $650,000 over taxes collected in 2001 could be collected. After reviewing the revenue sources, the commissioners turned their attention to the expenditure side of the budget. A suggestion to cut the $10,000 spent for the Marine Resource Committee, the $7,000 spent on the Bottomfish Recovery Program and the $40,000 spent on recreational programs for youth was rejected. Miller noted the money for those programs is leveraged and generates hundreds of thousands of dollars more for the programs. "The $40,000 is not something that has COLA (cost of living) or step increases attached," she said. "These programs are not building a bow wave around them. Lopez's recreation program is barely hanging on by their fingernails." The commissioners after noting the difficulty of the task took turns listing potential cuts. No final decisions were made. Among the possible cuts which are listed in no particular order are:
The only reduction involving the sheriff's office was Miller's suggestion of a reduction in the work crew program. Auditor Si Stephens believes the program pays its own way for one of the two work crew supervisors but not for both. Commissioner John Evans and Nielsen want to look at the figures again. No decisions were made. The commissioners will continue to study the numbers and will meet again on Oct. 29 to discuss the budget. |
|
|
|
|
