PORT TOWNSEND — Jefferson County commissioners on Monday approved a 2012 budget that reflects a continuing decrease in revenue and subsequent belt-tightening.
County Administrator Philip Morley said that the 2012 budget represented the fourth consecutive year of reducing the size and public services of Jefferson County government.
Morley said that the approval of Proposition 1 that brought $646,000 of new revenue along with about $550,000 of unexpected revenue from logging sources eliminated the need to cut an additional $900,000 from the 2012 budget.
While all cuts for the coming year are complete, work will continue during the next budget cycle to cut an estimated $850,000 in permanent cuts over the next three years, Morley said.
“This is a permanent situation,” Morley said.
“The funds aren’t coming back.”
The new budget projects $28,696,005 of revenues against $33,103,020 in expenditures, compared with 2011 figures: $32,752,993 of revenues and $37,075,020 in expenditures.
The difference between the two figures comes from other funds and revenue that is collected from previous years.
Morley said the budget situation could have been much worse if the county had not saved money into the reserve fund during better economic times.
Reserves, which are required to represent 10 percent of total expenditures, have always been present at those levels and have allowed the county to maintain an excellent bond rating, Morley said.
In 2009, the county held $863,000 in reserves above the required amount, which is projected to dwindle down to $3,796 by 2014.
Morley said the budget continues to respond to two realities, a prolonged economic downturn which has reduced revenues and an ongoing structural funding gap that doesn’t keep up with inflation.
One decrease in county resources comes from the decrease in sales tax revenue, which added up to $269,149 in 2011 and is projected at $263,000 in 2012.
One budget cut was the withdrawal of support for the Jefferson County Animal Shelter which was taken over by the Humane Society and saved the county around $100,000.
Morley said the county will be looking for similar opportunities to off-load county services to private enterprise and volunteers.
Additionally, $2 billion in state government budget cuts have yet to be implemented to be followed by significant federal deficit reductions imposed by the federal government that will have impact on the county, Morley said.
“This will all affect contracts, grants and transfers from state and federal agencies to Jefferson County government,” Morley said.
“The county will watch carefully and adapt.”
The resolution approved by the commissioners and prepared by Morley lists several specific issues that will need to be addressed.
They include continuing funding for capital needs, a weak real estate-developer market, a need to support parks and recreation, response to federal budget cuts, need to support county roads, a decline in revenue from solid waste disposal and the development of the Port Hadlock Wastewater Project.
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or charlie.bermant@peninsuladailynews.com.
