PORT ANGELES — Clallam County’s top executive has recommended a $36.1 million budget for 2016 that would spend $2.7 million in general fund reserves and keep a sales tax holiday.
County Administrator Jim Jones recommended that commissioners continue the 0.2 percent sales tax holiday for goods purchased in unincorporated areas, initially approved in April.
Jones on Monday presented the 2016 budget, which projects $33.4 million in revenue and $36.1 million in expenses.
A $2.7 million draw on reserves would leave a “still very healthy” $9.5 million ending fund balance in the general fund for day-to-day operations, Jones told commissioners in a board work session.
“No surprises,” Commissioner Bill Peach told Jones. “Good job.”
The recommended budget is one of several steps in a charter-required county budget process.
The three commissioners will meet with elected and non-elected department heads in the coming weeks to review some
$6 million in departmental budget requests.
First-round talks
Jones and Budget Director Debi Cook met with those same officials in a first round of budget talks last month.
Public hearings will be held on a final draft budget Dec. 1. The final county budget will be adopted by Dec. 8.
Jones also recommended commissioners leave in place a 40-hour employee workweek.
Along with the tax holiday, commissioners in April reinstituted the 40-hour workweek for county employees who were on a 37.5-hour schedule, authorized a $99,000 budget emergency to support the Feiro Marine Life Center and Olympic Peninsula Visitor Bureau, and approved $1.3 million in Opportunity Fund grants to the Port of Port Angeles and city of Port Angeles for infrastructure projects.
“Economic indicators for much of the Olympic Peninsula remain pretty optimistic,” Jones said while reading an executive summary of his recommended budget.
“We are expecting only a small decrease in sales taxes, from the record amount collected in 2015, as the two-tenths [of 1 percent] reduction in the unincorporated portions of the county plays out, expecting that the increase in economic activity will largely offset the reduced collections and hoping that, by the end of the year, we might just be collecting more than ever.”
Commissioners have said they will not support the allowed 1 percent property tax increase in 2016.
Beyond that, McEntire said he was curious to know whether the county could separate personal property from real property and reduce or eliminate the personal property tax levy.
“If it is legally possible, I’m going to recommend that we dig into that some and see if we can do something for businesses,” said McEntire, who is running against Mark Ozias in the Nov. 3 election.
Personal property taxes
“Personal property taxes fall most heavily on businesses, I think, just based on some conversations I’ve had with some business folks in the county. And so it would be good to see if we could try to target some tax relief to businesses,” he said.
Since Commissioner Mike Chapman was absent Monday, McEntire said he would ask his colleagues to support a request for Prosecuting Attorney Mark Nichols to weigh in on the personal property tax reduction next week.
“We need to focus on jobs, as I’ve been saying for a long, long time,” McEntire added.
Jones said he is also working with Port Angeles and Sequim city officials on a proposal to consolidate misdemeanor criminal justice administration.
The move would increase the county’s expenses and revenue nearly equally and save both cities considerable expense, Jones said.
“There will be changes in all of our budgets if that agreement can be finalized before we make our budgets final,” Jones said.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rollikainen@peninsuladailynews.com.
