San Juan County's current expense (general) fund's cash


STORIES ABOUT SAN JUAN COUNTY CASH RESERVE

Auditor: county could be borrowing by end of March

posted 03/07/02
WIth a dwindling cash balance, San Juan County may have to borrow to cover current expenses this month San Juan County Auditor told the BOCC March 5, 2002. The last time the county borrowed to cover expenses was in 1983.

The county's cash balance at the end of Feb. 2002 was $571,268 - 53 percent lower than Feb. 2001. The county will receive an infusion of cash at the end of April when the first half of property tax bills are due. Approximately 12 percent of the $29 million paid in property taxes by county residents goes towards county current, 5 percent goes to the county road fund. Forty percent of the local property tax payments goes to the state. School districts on Lopez, Orcas and San Juan Islands collectively account for 19 percent of the total. The remaining 24 percent is divided among other junior taxing districts.

CHART OF COUNTY CURRENT FUND's CASH

County ends 2001 with $.75 million in reserve

posted 03/06/02
San Juan County ended 2001 with $760,000 in reserves. County Auditor Si Stephens told the BOCC, the county spent 93.9 percent of its budget last year. "Congratulations to all the departments," he said. "Clearly everyone did their part in trying to hold down expenditures."

In 2000, the ending balance was $1,666,389. In August of 2001, Stephens warned the commissioners the ending balance could dip as low as $260,000 due in part to declining sales tax revenue. The commissioners told department heads to cut non-essential travel and overtime. Any hiring required reauthorization of the position by the BOCC.

BOCC to review revenue sources

By Sharon Kivisto

posted 10/17/01
Before making decisions on cuts in programs and/or staff, San Juan County Commissioners will discuss revenue sources including the T-word -- taxes. "People have the right to ask us if we've exhausted revenue sources," said Commissioner Rhea Miller.

The county relies on sales tax revenue for 25 percent of its budget. The downturn in the economy has resulted in less revenue. Commissioners need to cut $1.2 million from next year's budget.

At the BOCC's Oct. 16 meeting, County Personnel Manager Jamie Marsden said, "Unless the board takes a look at what is truly available, employees feel the budget is being balanced on the backs of the employees."

She spelled out the limitations the BOCC faces when considering cuts in personnel. There are three groups of county employees.

ELECTED OFFICIALS salaries and wages are set by ordinance and their wages cannot be changed while they are in office. A COLA (cost of living adjustment) of 3 percent a year is up for review in 2002.

UNREPRESENTED EMPLOYEES include managers whose wages and COLA are spelled out in their contracts. The contracts would need to be renegotiated to change them. Other unrepresented employees' COLA is set annually by the BOCC.

REPRESENTED EMPLOYEES include the Sheriff's Guild which signed a three-year contract two months ago. They will receive a 4 percent increase this year -- a 1 percent market adjustment and a 3 percent COLA. Bargaining for the Public Works and Courthouse employees begins Nov. 1. Their wages, hours and working conditions are part of the negotiations.

Marsden recommended the commissioners approach cuts by looking at reductions in programs. If they just cut hours and not programs, they would be reducing hours of work without reducing the amount of work to be done.

Commissioner John Evans said the commissioners need to take a look at how much revenue is available and make decisions regarding taxes and fees. "That provides us with a number," he said. "I suggest we project out two years. I see bigger problems in 2003. I don't expect things to get a whole lot better soon."

BOCC authorizes additional hiring

posted 10/08/01
In a split vote last week (Oct. 2, 2001) San Juan County Commissioners approved hiring of a second project manager for the Public Works department. Commissioner Rhea Miller wanted to wait but was outvoted by her fellow commissioners. "I certainly couldn't justify it at this point," she said.

Budget concerns have county workers facing possible layoffs. Last month the BOCC considered a hiring freeze. In lieu of a freeze they decided to require reauthorization of positions before they are filled.

Commissioners Darcie Nielsen and John Evans did not want to delay. The position had been authorized earlier in the year as a replacement for a civil engineer II position that has gone unfilled. Nielsen noted the importance of the public outreach about public works projects that a project manager provides.

County cutbacks considered

posted 09/26/01
County department heads found out during yesterday's (Sept. 25) worksession just how serious San Juan County Commissioners are about cutting a million dollars from next year's budget. County Assessor Paul Dossett requested an additional half-time position for his department next year. Instead the BOCC instructed him to come back with figures showing potential staff reductions if property was reassessed every four years rather than every three.

"We need to find other ways of doing things," said County Commissioner John Evans. "We need to keep the wheels on the wagon."

Dossett expressed concerns about inequities if the assessment cycle is lengthened. "It would further subdivide the islands," he said. "We want to be as close to 100 percent of market value as possible." He felt the number of complaints the Board of Equalization (BOE) deals with would likely increase. Currently the BOE handles 150 per year.

Evans asked Chief Deputy Auditor Charlotte Dye if there was any legal statute preventing the Auditor's office from being closed one day per week. Dye suggested if hours were to be cut back, a better approach might be to rotate work days for the staff rather than closing the office. She told the board the auditor's staff is cross-trained to work the front counter.

Commissioner Darcie Nielsen said, "I believe it is time to for the three offices -- auditor, assessor and treasurer -- to combine into one front counter." She instructed those departments to put together such a proposal and bring it back to the board.

Dossett suggested the commissioners consider easing the county government's dependence on sales tax revenue by increasing property taxes. "We need to look for a more stable financial situation," he said.

Cuts needed in county programs

posted 09/13/01
The county's general fund cash balance dropped to $807,040 in August after 13 straight months of decline. County commissioners responded to Auditor Si Stephens' report on the "disastrous trend" by telling employees to cut non-essential travel and overtime. The BOCC is prepared to reduce county programs for next year. "We need to take whatever steps we can today to slow or at least not exacerbate the situation," said County Commissioner John Evans yesterday (Sept. 12).

Instead of imposing a hiring freeze, the commissioners will require reauthorization of positions before new employees are hired.

"It's easy to see how we got here," said Stephens. "Revenue fell and we were scheduled to eat into reserves." The 2001 budget anticipated a 6 percent increase in revenue. Actual revenue is down 6 percent creating a 12 percent gap.

The 2002 budget will need to be 8 to 15 percent below the 2001 budget. "We need to figure out how not to spend a million dollars," said Evans.

The commissioners agreed to take a programmatic approach to cuts rather than an across the board reduction. "The board will look at programs and make the tough decisions," said Commissioner Rhea Miller.

TABLE SHOWING ENDING BALANCE.

Hiring freeze may be in county's future

posted 08/23/01
San Juan County's current expense (general) fund's cash balance as of July 2001 is 42 percent lower than July 2000. The county has had twelve consecutive months of spending exceeding revenue according to county Auditor Si Stephens. If the trend continues and the county spends 95 percent of its budget, the reserve would drop to $257,977 by year's end. The reserve at the end of 2000 was $1,666,389.

Instead of increasing 6 percent as assumed in the 2001 budget, revenue in 2001 dropped 6 percent when compared to 2000. The 2001 budget included spending $785,000 of the county's reserve.

Stephens suggested a hiring freeze and a $1.2 million cut in the 2002 budget may become necessary.

"It's 'come to Jesus' time," said County Commissioner John Evans during the BOCC's Aug. 21 meeting. "Every month we wait creates a multiplier. I strongly suggest we hold a workshop and figure out what we can do now."

Commissioner Rhea Miller noted a budget cut of $1.2 million equals 24 FTEs (full time equivalent employees).

Figures for August will be out in two weeks. Stephens suggested the BOCC wait until those figures are out and analyzed before taking any action.

Commissioner Darcie Nielsen asked about the health of the county's capital fund and the road fund. Stephens reported the capital fund has a healthy reserve of $300,000. The road funds are doing very well he said. A levy shift from the road fund to the general fund is a possibility.

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