Council adopts "Phase I" of budget cuts

(updated with corrections July 2)

By Stan Matthews
County Communications Program Manager

After much discussion in its special session today[July1], the San Juan County Council unanimously adopted – with two amendments – the first phase of what promises to be a series of cuts to the remainder of the 2009 County operating budget.

The County Administrator and Auditor had proposed cuts totaling $933,121 spread across the County’s 19 departments. Today the council voted to retain more than $28,000 in the Sheriff’s department budget to avoid having to lay off a currently serving deputy when another deputy – who has been on a leave for military service in Iraq – returns in September. And, after an emotional appeal from County Assessor Charles Zalmanek, the Council voted to postpone action on a proposed $21,313 cut to the Assessor’s budget until a committee consisting of the Assessor, a representative of the Washington Department of Revenue and a Council Member agree on a minimum level of staffing required to perform the Assessor’s duties under state laws and regulations.

“We’re a sinking ship at this time.” Assessor Zalmanek told the Council during its public hearing. “Every year I’m required to certify the rolls. I have to make a statement that says that every property in San Juan County is appraised at its market value.”

He said that budget cuts and staff reductions, combined with an unusually heavy load of appeals to the Board of Equalization and the loss of productivity for several weeks during the deployment of new appraisal software has left his office with too little time and too few resources to assess new construction in the County this year.

“I am not willing to perjure myself,” he said, “And knowing that the value of new construction has not been appraised, I can’t make the statement saying that all of the properties in San Juan County are appraised at their market value.”

“I am having to consider things I never imagined I would have to consider, he said.”

The Council asked if the staffing and pay scale issues couldn’t be dealt with by its budget subcommittee, but Zalmanek told the Council that once he filed his request with the department of revenue – which he did yesterday – state law requires the Council to work with the three party committee to agree upon an adequate number of appraisers to have on staff.

Among the other items raised, but set aside during the Council’s budget discussions:

• The wisdom of cutting the $10,000 subsidy for Orcas Island Recreation’s management position.
• Whether to budget money for dealing with the potential Swine Flu outbreak next, instead of waiting to make an emergency appropriation if the outbreak occurs.
• Whether to delay a decision on reducing the size of the Council’s own staff from three to two, before the currently vacant County Clerk’s position is filled. Council Member Bob Myhr moved to put the cutback on hold, but Council Members Lovel Pratt, Rich Peterson, and Richard Fralick disagreed. “I think that it’s important that we show that we’re going to share the pain,” Fralick said.

The County’s staff and the Council’s budget committee are already working on the next phase of the budget cuts to bring the total reductions for the second half of the budget into balance with a projected revenue shortfall of between $1.2 and $1.5. Because the reductions come so late in the year they amount to the equivalent of about 15 percent of the money remaining in the year’s budget.

With personnel costs accounting for more than 70% of the County’s operating budget, the County is now negotiating how to deal with the potential impacts of the cutbacks with its labor unions, proposing to reduce the hours that some services are offered, and studying ways of reorganizing the structure of the County government to reduce costs and increase efficiency.

The Council has indicated that it expects to adopt the next round of budget cuts in September.

Additional information about the specifics of the first round of budget cuts is available on the County website at  https://sanjuanco.com/budget2009/BudgetReductionInfo.aspx

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