A sense of satisfaction was nowhere in sight.
But the San Juan County Council banded together last week and put a half-hearted stamp of approval on a $51.5 million revenue and spending plan for the year ahead.
Councilman Rich Peterson, San Juan North, summed up apprehensions many on the council may have about the budget by noting apologies are “almost needed” to the auditor, administrator and various department heads for the mixed-bag of cuts and spending increases the council ultimately agreed upon. The council added back into the budget about $600,000 more in general-fund spending than the preliminary budget, penned by the administrator and the auditor, provided for.
“I have some strong misgivings about what we’ve done,” Peterson said.
Nevertheless, the council voted without dissent Dec. 9 in adopting the hotly-debated 2009 budget, which calls for spending cuts, though slight in most cases, in a majority of county departments, funds and accounts, and modest gains for those earmarked for more. Councilman Gene Knapp, Orcas East, however, abstained from voting after pitching an additional $25,000 for the assessor’s office, which presumably would prevent the loss of an appraiser, which failed to gain enough support.
The loss of an appraiser, according to Assessor Charles Zalmenak, could jeopardize the department’s ability to evaluate the volume of “new construction” it has in the past. This year, Zalmenak said, such appraisals generated a collective $300,000 in revenue shared by coffers of the county and the other junior taxing districts.
The ‘09 budget totals $51.5 million. But that amount includes roughly $7.3 million in so-called inter-departmental transfers and a end-of-the-year forecast of $1.27 million in “cash on hand”. In reality, the amount of revenue raised and money spent, as outlined in the next year’s financial blueprint, equals just over $42 million.
Councilman Alan Lichter, Orcas West, whose council term ends in January, noted the pain of budget cuts had not been “shared equally” by all departments. Still, he struck a philosophical tone about the ‘09 budget overall.
“I think this is the best all of us working together can do,” he said.
The financial health of county government, according to councilman Bob Myhr, Lopez/Shaw, should top the council’s list of priorities beginning next year. He acknowledged the budget may require adjustments in the coming months.
The Road Fund will weigh in at $11.9 million at the start of the year, a $640,000 decrease over last year’s mark. The Land Bank expects to wield just over $5 million in the coming year, roughly $5 million short of last year. However, Land Bank Director Lincoln Bormann cautions that the amount of revenue generated by land conservation’s primary source of funding, a 1 percent tax on local real estate trails, is in a steady free-fall.
Bolstered by $2.2 million in outside grants, an ‘09 general fund of $16.2 million will cover the majority of day-to-day department expenses, with the Land Bank and Public Works being notable exceptions. Take away grants, of which there will be $720,000 less of in the ahead, and the ‘09 general fund totals $13.9 million, or about $220,000 less than the current year.
Though the budget includes a drop in general funding spending, Administrator Peter Rose and Auditor Milene Henley had previously recommended an even sharp slice. A $1.27 million cushion of “end of the year cash”, which effectively acts as a month-to-month savings account and buffer against emergency expenditures, is $300,000 less than the minimum amount the two had recommended.
In echoing earlier statements, Peterson said the best hope of keeping current service levels in tact, given the constraints on generating new revenue, may rest with the voters. Property tax levies that fund local government, like the Road levy and Current Expense levy (general fund), can increase by only 1 percent a year unless voters determine otherwise.
“This wasn’t easy and I don’t think a whole lot of us enjoyed it,” he said. “But I think there’s more of this coming.”
