PORT ANGELES — Two of the Clallam County commissioners approved tonight (Tuesday) a $38.96 million budget that uses a projected $2.29 million in general fund reserves.
Such a draw on the rainy day fund will leave $8.31 million in year-end reserves, which is $363,796 more than the minimum balance required by policy.
Commissioners held a pair of public hearings on the draft 2017 budget Tuesday.
The vote was taken Tuesday night with Commissioners Bill Peach and Mark Ozias voting. Peach was absent from the morning hearing. Chapman was absent from the evening vote.
County policy requires a $7.95 million minimum reserve balance to pay for emergencies and other specific purposes such as making payroll without borrowing money.
County Administrator Jim Jones said the board was “very concerned” that the projected year-end reserve would not be sufficient to weather another recession or provide a cushion for potential cuts from the state Legislature as it grapples with a court mandate to fully fund basic education.
To soften the blow, commissioners and other county leaders will endeavor to reduce the projected draw on reserves by $1.5 million, officials said.
The board will work with elected officials and department heads to identify potential restructuring of staffing levels through attrition and to look for new revenue to maintain or improve countywide services, Jones said.
“I’d like to let you know that your commissioners are concerned about the state of the budget, or at least this commissioner is,” Ozias said during the first hearing.
“I am committed, and I believe that all of the commissioners are committed, to working very closely with the leadership team next year to move us in a more positive direction.”
The proposed budget includes a 0.953 percent inflationary property tax increase as allowed by law.
Chapman and Ozias voted in favor of the general purpose and road fund property tax levy increase Nov. 22.
Peach voted against the tax increase.
The proposed budget includes the “great majority” of spending proposals from various departments, Jones said.
“We made an intentional decision this year to do as little picking and choosing as we can, because all of the needs that were presented by every department are really important,” Ozias told the audience, which included several county leaders.
“We are anxious to engage the leadership team in helping us improve our financial situation next year.
“We expect to engage all of you early in the year in a strategic planning and prioritization and goal-setting process,” he added.
The general fund for day-to-day operations is projected to have $36.67 million in revenue with increases in sales tax collections and harvests on state Department of Natural Resources-managed forests.
The total county budget — the sum of 89 separate budgets in 20 departments — shows $95.22 million in expenditures and $76.55 million in revenues.
Jones said it is “very common” to have large imbalances between revenues and expenditures in other funds because of construction schedules and the fact that money in other funds does not transfer.
The other funds portion of the budget anticipates spending for more projects than will likely come to fruition next year, he said.
Three of the six speakers who testified at the first public hearing urged the board to take steps to address climate change.
Ed Chadd of Port Angeles, who coordinates the county’s Streamkeepers water quality monitoring program, offered a summary copy of an Olympic Climate Action group adaptation needs report.
He read into the record a resolution that the commissioners signed in April to establish a work plan for adapting to the potential impacts of climate change.
“I recognize that it’s not the kind of thing that you can just snap your fingers and do something about,” Chadd said.
“It’s going to take time to dig into it, to really absorb the various expected impacts and the adaptation needs that we’re going have, and then to prioritize things and to think about sequencing and budgeting.”
The resolution directs four county departments to consider projected climate change impacts and adaptation strategies and “strongly urges” the Department of Community Development and the Emergency Management Division of the sheriff’s office to incorporate those adaptation strategies into their respective budgets and planning documents.
Since taking office in January, Ozias said he has tried to “restart the conversation” about climate change.
“I think that we have made some progress this year, and I’m looking forward to providing some additional information about what we have done here at the county and what our departments are planning to do,” Ozias said.
“I hear loud and clear, and I agree with all of you who are so rightly concerned about the severity of this subject and of our potential future if we don’t act.”
Ozias closed the first public hearing by thanking the officials who helped build the 2017 budget.
“I’m anxious to enlist your expertise and your help moving forward so that we don’t end the year where we are projecting to end the year at this point,” Ozias said.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 56450, or at rollikainen@peninsuladailynews.com.
