PORT ANGELES — Clallam County is projected to have a $3.15 million budget deficit in 2010, according to preliminary projections based on current levels of service.
If that holds true, which it likely won’t, the county’s rainy day reserve fund will shrink from $11.5 million to $8.35 million next year.
County Administrator Jim Jones and budget director Kay Stevens will meet with the heads of county departments over the next few weeks to find ways to reduce the projected deficit.
“I am looking and planning on figuring out a way to get that down to somewhere around $2 million,” Jones said, after presenting the preliminary budget in Tuesday’s Board of Clallam County commissioners’ meeting.
Jones said he would not recommend a $3.15 million deficit to commissioners Mike Doherty, Steve Tharinger and Mike Chapman.
Clallam County charter requires a preliminary budget presentation on the second Tuesday of September.
The county’s projected $11.5 million reserve fund was built up during the building boom from 2003 to 2008.
That rainy day fund grew from $4.7 million to $13.1 million between 2003 and 2008 when sales tax and other revenue was high. Jones attributed that growth reserves to controlling cost.
Clallam County is one of two in the state that has not had to lay employees off, the other being Benton County.
Coming off a tough economic year in 2009, expenditures in the county’s general fund are projected to outweigh revenues $33,174,875 to $30,026,357 next year.
The general fund is the operating fund of a government like Clallam County.
In addition to looking for new sources of revenue, Jones will spend the next two months looking for ways to cut expenses.
Possible cuts
Two possibilities include reducing non-mandated core services and operating hours, possibly going to a four-day work week. Payroll costs make up 76 percent of the expenses in the general fund.
A final budget hearing is scheduled for Dec. 1.
Later in the commissioners’ meeting, the board approved notice of supplemental appropriations that will be adopted on Sept. 29.
The appropriations are grants and other additional revenues. They include $44,350 to the noxious weed fund, $48,067 to the County Auditor, $40,040 to environmental health, $162,500 to environmental quality, $48,686 to Sheriff’s operations, $53,622 to juvenile services, and $40,757 to emergency management.
Budget reductions — $440,000 from environmental quality, $221,355 from the Olympic Peninsula Safety Communications Alliance Network operations and $14,438 from Sheriff’s projects — will also be adopted by resolution on Sept. 29.
Public hearing
A public hearing will be held on Sept. 29 on debatable emergencies to change the budget. The two largest debatable emergencies include $500,000 in increased insurance premiums and claims setteld and $203,000 in property purchased by the Department of Community Development’s environmental quality division.
Land agreement
In other action, the board approved a $6,572 land purchase agreement with Tim and Penny Thompson for .07 acres for the Priest Road reconstruction project near Sequim.
Karen Flores was honored in a presentation early in the meeting — which included a work session and two public hearings — for her 24 years of service to Clallam County.
A former clerk of the board, Flores has spent the last 10 years working in human resources. She plans to spend time with her grandchildren in retirement.
“She’s one of those people that was always available to go to ask the history of something, how it happened, what the background was, all of that,” said Marjorie Upham, human resources director.
“You’re going to be greatly missed.”
The commissioners presented Flores with a limited-edition etching of the old courthouse that long-time employees traditionally receive.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
