Auditor cautions County Council on deficit spending
San Juan County Auditor Milene Henley spent more than an hour Tuesday, Feb. 16 updating the council on the county's financial condition. "One of the concerns I have, we are making choices to spend money we don't have. Planned deficit spending, the courthouse remodel to move the prosecutor's office," she said. " In an already negative fund, we are choosing to make it more negative.
"And the CAO study, which is anticipated, although we are hoping for some grant funding, could make a signicant hit, Henley said. The council voted later in the meeting to hire two scientists to review material citizens submit to ultimately come up with local science to be used for the Critical Areas Ordinance. The experts will be paid to analyze whatever is sent in by the public.
Starting the year with too little cash," was one of the financial issues facing the county in 2010, Henley said. She projects current expense will be on interest-bearing warrants by September, the road fund by March. The April property tax revenue will bring the road fund out of borrowing but it will likely be back into it by fall.
There are unfunded needs - unemployment and retirement costs, paid time off, general equipment - which were not included in the 2010 budget in order to make it balance.
County 2010 budget book online
posted 10/17/2009
PRESS RELEASE: The preliminary San Juan County 2010 budgets are now available in detail for download from the County Web site. The budget book includes two preliminary budgets – one based on existing revenue, the second includes estimated revenue from the proposed levy increase voters will consider in the November 3, 2010 election.
In his budget message to the County Council, Administrator Pete Rose described the next year as "perilous" with or without the levy increase – which is targeted primarily for specific programs including parks, Senior Services, and youth and volunteer programs now offered through the WSU Extension office. Rose noted, "The majority of departments will receive no benefit from the lid lift."
Even if it passes, he said, "Nothing comes back to its 2008 spending level."
"The main effort in the proposed budget has been to try to hold as much of the organization together as is reasonably possible. In doing so, all margin for error is gone, and the 2010 budget year will be perilous," Rose writes.
"There is no money to overcome the normal situations that crop up during a budget year. There is no flex in the general fund personnel funding to adapt to difficulty. There is no extra reserve for short revenue projections. There is no fund to tap to recover from the next leaking pipe in the basement. Necessary capital progress will be made by borrowing. The impact of anything unanticipated will be magnified. We are not prepared for the foreseeable, such as unemployment costs, leave payoffs or printing [the County] code."
The proposed levy increase would enable the County to maintain some of its most popular programs including Senior Services – scaled back from 2008 service level, but it would still maintain its transportation program and have service coordinators at Senior Centers on San Juan, Orcas and Lopez Islands.
County Parks are also in serious jeopardy without additional revenue – facing the prospect of shuttering Shaw and Village Green Parks and still having to deal with a sizable budget deficit.
Administrator Rose has recommended the merger of the Parks Department with the County Fair to reduce costs and take advantage of the individual departments’ strengths. Among the advantages of the merger he cites:
- Strengthen the planning process;
- Improve event planning, promotion and management;
- Enhance the grounds upkeep;
- Develop the proposed fairgrounds camping and promote group camping that can use both parks and fair facilities;
- Create a broader footprint of staff and budget that is larger, more efficient and more flexible than the two current smaller departments.
The Budget report shows that with or without the levy increase, the number of full-time equivalent (FTE) jobs in the county workforce will be smaller lower than it was in 2007, 2008 or at the beginning of 2009. The "no-lift" budget anticipates that the County will have to shut down for a number of regular business days to save personnel and operating expenses.
Over all, both budget contingencies anticipate that the County will have less revenue and provide fewer services than it did in 2008.
The County Council has discussed the 2010 budget over the past two months and, at its October 7th meeting, moved to have public hearings and deliberations on the budget option that is operative after the results of the November 3rd election are known. That hearing is set for November 10.
Council deliberates on 2010 budget Wednesday
San Juan County Council will hold a sepcial meeting from 8:30 to 11:30 a.m. Wednesday, Oct. 7 to deliberate on the recommendations from Auditor Milene Henley and Administrator Pete Rose on the 2010 county current budget. This is a preliminary budget, a public hearing on the final budget will be held in late November or early December.
The council at this time is looking at two versions of the budget - one if the levy lift passes, one if it doesn't.
Law and Justice takes up the biggest chunk of the general fund budget - 45 percent if the levy doesn't pass and 42 percent if it does. The financial departments take up 12 percent vs 11 percent. Administration (council, clerk, administrator) takes up 11 or 10 percent depending on the outcome of the election. Parks, Fair and the Department of Emergency Management would change from less than a ½ percent to 2.4 percent if voters approve of the tax increase. The county agent (Master Gardeners and 4-H are included here) goes from less than ½ percent to 1.5 percent Health and Community Services' percentage of the budget increases from 7 to 8 percent. Community Development and Planning Department's percentage changes from 9 to 8.
| 2010 Budget |
Preliminary Budget
without levy |
Preliminary Budget
with levy |
| |
Expenditure |
Revenue |
Expenditure |
Revenue |
County Current
General |
0 |
4,881,770 |
0 |
5,841,770 |
| County Admin. |
572,918 |
2,000 |
572,918 |
2,000 |
| Assessor |
611,923 |
7,000 |
611,923 |
7,000 |
| Auditor |
683,523 |
216,000 |
683,523 |
216,000 |
| Board of Equalization |
15,261 |
0 |
15,261 |
0 |
| Facilities |
521,019 |
9,500 |
539,019 |
9,500 |
| Civil Service |
15,033 |
0 |
15,033 |
0 |
| Clerk |
318,292 |
109,769 |
318,292 |
109,769 |
| County Council |
446,158 |
0 |
446,158 |
0 |
Communi-
cations
(Dispatch) |
699,334 |
358,129 |
699,334 |
358,129 |
Community Development
& Planning |
1,117,286 |
969,700 |
1,117,286 |
969,700 |
| County Agent |
68,161 |
6,450 |
198,066 |
10,821 |
District Court
Probation |
659,648 |
340,776 |
659,648 |
340,776 |
| Election Reserve |
198,078 |
56,200 |
198,078 |
56,200 |
| General Admin |
1,228,372 |
20,552 |
1,387,008 |
20,552 |
Health &
Community Services |
818,908 |
570,321 |
818,908 |
570,321 |
| Jail |
365,834 |
10,000 |
422,984 |
15,000 |
| Juvenile Court |
367,966 |
500 |
367,966 |
500 |
| Law Library |
23,460 |
0 |
23,460 |
0 |
Fair, Parks,
Emergency Management |
70,000 |
23,000 |
325,000 |
23,000 |
Prosecuting Attorney
Coroner |
838,653 |
147,976 |
890,357 |
147,976 |
| Sheriff |
2,2448,159 |
388,482 |
2,2448,159 |
412,116 |
| Superior Court |
184,901 |
30,740 |
184,901 |
30,740 |
| Treasurer |
305,328 |
4,429,350 |
305,328 |
4,429,350 |
| TOTAL |
12,578,215 |
12,578,215 |
13,571,220 |
13,571,220 |
County, union reach agreement on voluntary furloughs
posted 09/03/2009
The San Juan County employees' union has agreed to up to five-day voluntary unpaid furloughs to help reduce the county payroll this year. Applications must be turned in by Sept. 27 and must be approved by department heads.
The county administration and Local 1849 of the American Federation of State, County and Municipal Employees (AFSCME) negotiated the policy after 23 positions were cut from the workforce and 27 other positions had their hours reduced.
Some unrepresented (management) employees have already taken uncompensated days off to help reduce the county's revenue shortfall.
Despite the cuts, Auditor Milene Henley is projecting a shortfall of $750,000 in the 2010 budget. The county Council voted to place a property tax increase on the general election ballot.
Council approves property tax increase ballot measure
posted 08/11/2009
San Juan County Council voted unanimously to place a levy lift on the November ballot. Voters will decide whether or not to increase the county current fund tax 12˘ per thousand dollars of assessed value. The increase amounts to $54 a year for a $450,000 house.
If approved the levy increase would be in effect for six years. Councilmember Bob Myhr advocated strongly for the levy lift to be permanent since the problem is a permanent one. Without the increase, the county will have cut funding for senior services, 4-H, county parks. Councilmember Richard Fralick believed a six-year measure, which Councilmember Howie Rosenfeld had referred to at a prior meeting as "fiscally irresponsible", was a way for voters to vote again on the measure. They could use a renewal vote in six years as a "report card."
10 cent tax increase, permanent or temporary?
Council to decide Aug. 11
posted 07/30/2009
The county Council appears to be leaning toward asking voters to approve a 10-cent increase per $1,000 of assessed value. They will decide on August 11 whether to ask for a permanent increase or for a six year temporary increase.
Councilmember Bob Myhr and Rosenfeld preferred a permanent increase since it addresses a permanent problem. Councilmember Howie Rosenfeld said he felt it would be fiscally irresponsible to ask for a temporary increase, but if that is what it takes to pass it, he would go along with the majority.
Councilmember Richard Fralick believed voters distrust government and therefore the county should ask for a temporary increase. In six years the councilmembers in office then would go to voters to request a levy lift to replace the 2009 one - which they would do if they believed the council had been "trustworthy" in the previous six years.
Councilmember Lovel Pratt said the county should go ahead with a request for a temporary increase and immediately start the campaign for the permanent increase.
Council likely to ask voters
to approve levy increase
Public comment time set aside at council workshop Monday afternoon
posted 07/23/2009
Facing another $721,000 in cuts for the 2010 budget after slashing an additional million dollars mid-year from the 2009 budget, San Juan County Council appears ready to place a levy lift on the November ballot. The tax increase measure would most likely spell out what programs the new revenue would restore.
Auditor Milene Henley told the council a 10 cent increase would mean an additional $45 in property tax for an owner of a $450,000 property. A 15 cent increase would raise $1.2 million in revenue for county services. She noted San Juan County property tax rates are the lowest in the state. Property tax values are among the highest.
In order to make the deadline for placing items on the ballot, the council must make their decision by August 11, 2009. A workshop will be held at 1 p.m. Monday, July 27 in the council legislative hearing room at 55 Second Street. The public is invited to attend and time will be set aside for public comment.
County Council will discuss
asking voters for levy lid lift
posted 07/21/2009
San Juan County Council will meet from 9 a.m. to 11:45 a.m. Wednesday, July 22 to discuss whether to ask voters to approve a levy lid lift in November. Voter approval is needed in order for the total revenue from existing property tax to increase more than 1 percent.
Revenue can increase when new construction is added to the tax rolls. In a good year that may be $40,000. Tax rates change as each island is assessed on a rotating basis. The levy lid proposal is dealing with the overall amount of tax revenue collected - not rates.
Auditor Milene Henley has said the county's revenue projection will be about $1 million under the original 2009 budget projections.
The council has taken action to reduce the county operating budget by 15 percent for the second half of the year and eliminated the position of the director of Community Development and Planning Dept. Another round of cuts is being considered for September including into some popular programs unless more revenue is found.
Wednesday's meeting includes a preview of the 2010 budget with and without a levy lid increase. The council will decide whether to set a public hearing which is required if they choose to place the matter on the Novemeber ballot.
County restructures CD&P Dept.
posted 07/08/2009
The position of Director of Community Development and Planning Department (CD&P) has been cut and the duties have been split between the county administrator and the Health and Community Services director.
County Administrator Pete Rose said long-range planning will move into the County Administration office, over which he presides; and inspection, permitting and other functions of the department will merge with Health and Community Services.
The Health Department currently reviews plans, issues permits and performs inspections on water and septic systems in parallel with the CDPD's building plan review and permitting. "I believe those functions will fit together well," Rose said.
Departing CDPD Director Henrickson came to the department in December 2005 with more than 20 years experience as a planner and county administrator, including four years as Administrator and Director of Community Development for Mason County, Washington. Under his leadership the department's long-range planning function was re-established and several major projects, including plans for the Rosario Resort, the Deer Harbor Hamlet and Orcas Village, which had languished for years, were revived and completed.
"Ron was an experienced planner and was often able to offer me insights into the big picture on many issues in county administration," said Rose.
Rose said that re-aligning and streamlining the County government's structure - which now includes 19 departments and offices on three islands - is a must, given the current economic situation and projected revenue shortfalls.
"We are under a mandate from the County Council to responsibly balance the 2010 budget while costs are going up and revenues are, at best, flat." Last week the Council adopted a budget amendment cutting more than $900,000 from the $14 million 2009 current expense budget, but revenue projections indicate that another $500,000 to $600,000 will be needed to balance to the 2010 budget.
County council keeps deputy position cuts almost $900K from budget
posted 07/02/2009
San Juan County Council decided not to eliminate a sheriff's deputy position and delayed cutting a $21,313 cut to the Assessor's department before voting unanimously to adopt an amendment yesterday cutting almost $900,000 from the current budget.
The county Administrator and Auditor Milene Henley had proposed cuts totaling $933,121 spread across the County’s 19 departments. A second round of budget cuts are expected in September.
The council's cuts to their own department were discussed. Councilmember Bob Myhr wanted the council to delay any cuts until a decision is made on replacing the council clerk. The position was advertised more than five weeks ago and final interviews took place last month. Myhr and Councilmember Rosenfeld spoke about the need for three employees in the council office.
Councilmember Lovel Pratt said the council needs to lead by example and share the pain with the rest of the county departments. Knapp, Peterson and Fralick agreed the council staff should be reduced to two.
Funding Orcas Rec, budgeting for influenza clinic for a H1N1 flu pandemic (instead of special funding later) were discussed but not acted on.
Salary Commission: No COLA raise for most elected officials
posted 05/08/2009
PRESS RELEASE: With the County's revenue dropping and contract negotiations still underway with its employees' union, the Citizens Salary Commission voted unanimously Thursday, May 7, 2009 to not authorize cost of living adjustments (COLA) for 10 of the County's 14 elected officials for the second half of 2009.
Before making its decision, the Commission was briefed on the County's 1st quarter financial results by County Administrator Pete Rose. He told them it appears there will be serious cuts in the County's budget for the last half of the year.
The sheriff received a 4 percent COLA increase in January, under a provision that ties his compensation to increases in pay to members of the Sheriff's Guild. Superior Court Judge, District Court Judge and Prosecutor all received COLA increases during the 2008/2009 state fiscal year. The state pays more than half of those salaries.
Under the San Juan County Charter, unless there is a specific exception, the salary commission is authorized to set the salaries of county elected officials.
County eliminates a senior planner and a permit coordinator position
Due to a continued downturn in new construction activity San Juan County’s Community Development and Planning Department (CD&P) will be reducing two additional staff positions. The employees affected are a Senior Planner and a Department Assistant. The positions were held by Shannon Fitzgerald and Maureen McNally.
Previous staff positions eliminated included a Building Inspector and two Permit Coordinators. April revenues for the department were down 32 percent from March and little improvement is expected in the coming months.
Because of the reduced volume of construction and permitting, CD&P Director Henrickson does not expect permit review and processing times to increase. "Adjusting to a changing economy is difficult for both the private and public sectors," Henrickson said, "We are making every effort to maintain our present level of service."
Henrickson noted that approximately 76% of the CD&P budget is funded by fee revenue and as that revenue declines corresponding staff reductions have to follow.
Building permit revenue in April down 32 percent compared to April 2008
posted 05/06/2009
San Juan County Community Development and Planning Department took in 32 percent less revenue from permits - $81,808 to $130,022 - in April compared to April of 2008. Staffing on the permit side of the department is funded by the revenue and not by the county current (general) fund.
2009 Permit Activity
through April 30 |
| month |
2008 |
2009 |
| Jan. |
$90,172 |
$59,560 |
| Feb. |
$79,805 |
$55,963 |
| March |
$163,920 |
$101,099 |
| April |
$130,022 |
$81,808 |
County Dept. Heads asked to prepare 8 and 15 percent budget cuts
posted 05/06/2009
In order to meet San Juan County Auditor's recommendation to cut the 2009 county current budget by $1 million, departments have been directed to prepare cuts of 8 percent and 15 percent. Departments which do not depend on revenue from the current fund are exempt from the request.
Reductions of 8 percent would equal $1 million. County Administrator Pete Rose pointed out to the county Councilmembers since it will take the rest of May to put together the information and the month of June to finalize and enact the changes, the $1 million will have to be made up in six months of the year.
Rose said one of the "The guiding principles - what we do in 2009 helps to balance 2010.
The auditor is projecting 2010 revenue is the same as 2009...We are probably going to have to look at not doing entire things and reducing service levels."
The council will have to look at the core mandated services versus services which are popular but not mandated, he said.
1st quarter building permit revenue 35% lower than last year
NOTE: the March figure was changed since the story was originally posted due to updated information.
posted 04/14/2009
Revenue from building permits at the Community Development and Planning Department is down 35 percent compared to the first quarter last year. Two employees were laid off last month due to the declining revenue. The trend has been the same for the first three months of the year according to CDP Director Ron Henrickson.
The percentages listed in the right hand column are calculated by averaging revenue from 2006, 2007 and 2008. The department makes the majority of its revenue in the months of March-October.
| Permit Activity |
| month |
2008 |
2009 |
percentage of
yearly total |
| Jan. |
$90,172 |
$59,560 |
6.5 |
| Feb. |
$79,805 |
$55,963 |
6.0 |
| March |
$163,920 |
$101,099 |
10.9 |
| TOTAL |
$333,897 |
$216,562 |
|
|
