LANE COUNTY
BUDGET COMMITTEE
April 22, 2004
5:15 p.m.
Commissioners' Conference Room
APPROVED 4/14/04
Chair David Crowell presided with Scott Bartlett, Bill Dwyer, Bobby
Green, Sr., Don Hampton,
Mary Ann Holser, Francisca Johnson, Kathy Keable, Anna Morrison and
Peter Sorenson present.
County Administrator Bill Van Vactor and Recording Secretary Melissa
Zimmer were also Present.
I. CALL TO ORDER
Chair David Crowell called the meeting to order.
II. COMMITTEE BUSINESS
Approval of Lane County Budget Committee minutes
May 6, 2003, 5:15 p.m.
May 8, 2003, 5:15 p.m.
May 13, 2003, 5:15 p.m.
May 15, 2003, 5:15 p.m.
May 20, 2003, 5:15 p.m.
MOTION: to approve the minutes of the Lane County
Budget Committee.
Green MOVED, Johnson SECONDED.
VOTE: 8-0
(Sorenson and Bartlett out of room).
III. COUNTY OVERVIEW
Review Charter and Statutes
Teresa Wilson, County Counsel, passed out copies of the Home Rule
Chapter (copy in file). She explained
the County Charter is the County Constitution.
She said the County adopts ordinances that are County laws and they are
codified in the Lane Code. She noted
the Board of County Commissioners have both legislative and administrative
authority and it is the Board of Commissioners that adopt the administrative
rules that apply to the County by board order, codified in the Lane
Manual. She added that Lane County had
given the County Administrator authority to adopt administrative procedures.
She said that applies internally to the operation of County government, but it
doesn’t affect the relationship the County has with its citizens.
Wilson recalled that Oregon became a state in 1859 and the Oregon
Constitution was amended in 1906 to permit cities to adopt home rule
charters. She said it wasn’t until 1958
that there was a similar constitutional amendment to permit counties to have
Home Rule Charters. She noted that
constitution provision is Article 6, Section 10 of the Oregon
Constitution. She said the constitution
goes on to prohibit the County charter from affecting judges, justices of the
peace or district attorneys. She said
it further preserves the initiative and referendum power of the voters of a
county. She noted that only nine of the
36 counties in Oregon have home rule charters.
She indicated that Lane County was the first in 1962.
Wilson explained in a general law county, a 3-person group governs. She
said they could either have a county judge and two county commissioners or
three county commissioners. She said
they also have elected officials in the sheriff, clerk, treasurer, assessor and
the surveyor. She said for a home rule
county, it is up to the voters. She
added the voters decide but under the constitution, the charter has to prescribe
where all of the functions and duties that statutory counties have are going to
happen. She said the reason Lane County
wanted a home rule charter was that it was perceived as a way to not have to
get state legislative approval for any statutory change that was needed in
order to effect county operations. She
said the power could be centralized with the Board of County Commissioners so
that all the county departments were administered and governed by the Board or
a manager form of government. She said
in Lane County, the authority is vested in the Board of Commissioners for most
things except there is still an elected sheriff and assessor. She indicated that after 1973, general law
counties gained the same powers as home ruled counties. She said there was a state statute that was
adopted that presides within the governing body over matters of county concern
to the fullest extent allowed by the Constitution as fully as if each
particular power was listed.
Wilson explained that County Home Rule authority is broad. She said Chapter 2, Section 5, states the
County shall have authority over matters of county concern to the full extent
granted and allowed by the laws of the United States or the same as
Oregon. She added in 1978 the Supreme
Court rendered a decision that greatly restricts this broad view of home rule
powers. She said the County charter
authority is pre-empted in favor of state law with respect to matters of
substantive social, economic or regulatory objectives of the state. She noted the state legislature controls a
lot of substantive areas for both general law and home ruled counties.
Wilson noted authorities had been delegated to a variety of county
departments and the commissioners were given authority to change the
organization with the exception of the sheriff and the county assessor. She said the charter makes it clear that a
function performed by the sheriff or that an elected official cannot remove the
assessor without either a vote of the people or agreement.
Wilson recalled that Ballot Measure 30 amended Article 11 of the Oregon
Constitution and that provision requires the state to pay local governments for
cost of the newly mandated state programs or increased levels of service but
there are exceptions. She noted
whenever a new law is approved by three-fifths of each house, the new law is
exempt from this requirement. She added
that any new or changed crimes or criminal sentences are exempt and new
programs pursuant to federal actions are exempt.
Van Vactor explained that a general-purpose government is one operating
at the level closest to the citizens compared to state or federal
government. He said it means that
county governments are problem solvers.
He noted in 1962 Lane County consisted of nine departments and now has
14. He said the cities envision county
government to have a broad range of responsibilities and take on multiple
tasks. He said as a provider of
services at the first level, county government has to solve problems. He noted the legislature keeps adding
functions. He stated for the past two
or three AOC conferences, AOC had been wrestling with what the mission of
County government is. He said AOC’s
vision has been providing that county governments are the convenor to solve
problems, but they are not the problem solvers. He commented that according to citizens, government spending
should be controlled and they have enacted restraints on the growth of the
finances of Oregon government. He added
there has been no elimination of any of the responsibilities of functions that
governments are expected to perform.
Wilson explained that Washington County (as part of its strategic
plan,) has indicated that they cannot, because of financial constraints, be all
things to all people. She said they
have set up a structure for evaluating what services it will and will not
provide.
Dwyer commented in order for Lane County to change its purpose, they
would have to change the charter and it would be the people who would have to
determine what structure they want. He
said they would be continuing a general-purpose government. He added as they face budget problems, they
are less of a general-purpose government.
Dwyer said they provide service to the residents of Lane County who
live within the incorporated areas of the county that are charted by the state
to provide services for where they are not reimbursed by the taxing
authority. He said Lane County was
doing the best they could to balance the budget, but what makes it difficult is
finding the money.
IV. MAJOR COST DRIVERS
Greta Utecht, Human Resources Director, gave a presentation on
salaries. (Copy in file).
Karen Artiaco, Risk and Benefits Manager, gave a presentation on
benefits. (Copy in file).
Frank Forbes, Labor Employee Relations Manager, gave a presentation on
employee groups. (Copy in file).
Dave Garnick, Senior Management Analyst, gave a report on FTE
comparison. (Copy in file).
V. FINANCIAL FORECAST
Garnick reported on the five-year general fund. He said they spend close to what the
resources are. With regard to general
fund resources, he said that taxes and assessments are almost 28per cent of the
budget with fees and charges only 5.5 per cent. He noted that federal revenue is a quarter of the budget and
grants and permits are nine percent. He
added that state revenue is 14 per cent with the internal administrative
charges being almost 10 per cent and the fund balance being 8.5 per cent.
With regard to Assessment and Taxation, Garnick said the revenue will
be about $25.6 million for next year, including current and prior year
taxes. He noted that 76 per cent of the
car rental tax goes to the Parks Department.
He noted it was up six percent from the current year. He added that fees are going down. He explained they moved Information Services
Department into their own fund and they took $7 million in fees with them. He said federal revenue is starting to drop
off. He said out of $14.5 million (or
61 per cent of federal dollars of the O & C money) another $5 million comes
from the Title 2 and Title 3. He noted
the federal safety net program makes up about 80 per cent of the federal
money. He added this is the money that
is at risk if Congress doesn’t renew the act.
Garnick indicated that state revenue is 14 per cent of the general fund
or $13.5 million for next year, with 70 per cent coming from grants. He noted the largest share comes from
community corrections to pay for the SB 1145 for offenders.
Dwyer noted that statewide they are talking an $8 million hit as Ways
and Means cut the appropriation to $17.5 million to make them whole. He said Lane County hasn’t decided whether
they would opt out of SB 1145.
With regard to administrative charges that are charged to all
departments and funds for support services, he said the Sheriff’s Office
started charging an administrative overhead through all of their functions for
two years and that skewed their budget.
He said they charge indirect to Title 2 and Title 3 programs and other
federal contracts. He said it is $9.2
million for this year.
Garnick explained that in 1998 and 1999 the two levies were rolled into
the general fund and it showed they had extra cash that they wouldn’t have
had. He said they need to have cash
reserves of 10 per cent.
Sorenson asked what from the general fund would be retained and not
spent. He asked how much Lane County
should save for Moody’s to approve Lane County’s bond rating.
Garnick responded it is five percent of discretionary money, and 3.5
per cent of the total general fund. He
added they assumed in the financial forecast that they would only spend about
98 per cent of the budget so there is an additional two percent for the
lapse. He noted if they make a larger
cut in the budget, it would add another $2.5 million to the reserves and it
would improve their bottom line. He
added as a result of the departments not filling some of their positions, they
wouldn’t be accruing more lapse than they normally would and they would have a
larger balance carried forward. He indicated unless they have a written policy,
that Moody’s wouldn’t really believe that Lane County is committed to getting
the reserves up to 10 per cent or 12 per cent.
He noted what Moody’s wanted was two months of operating revenue. That would be 17 per cent for Lane County.
With regard to expenses, Garnick noted the model reflects a two percent
annual COLA. He included a 20 per cent
health insurance increase for 04/05 and 15 per cent thereafter. He said that PERS is flat for the next year
but for 05/06 they think it will go up again because they hadn’t factored in
the 2001-2002 losses that occurred. He
added the model assumes that they will allow for inflationary growth that has
been averaging 1.9 per cent and the future years it is predicted to go to 2.8
per cent. He said until they change the
policy, they would have to continue to budget for the five percent prudent
person reserve. He said the model still
assumes the passage of the Secure Rural Schools Act. He added if that doesn’t happen that things would change
significantly.
Garnick noted that personal services is about 60 per cent of the total
budget; materials and services is about 26 per cent, with reserves 7.2 per cent
(including the money they have been setting aside and spending for the
extension services).
Sorenson asked how general fund money is received as a result from the
federal forest legislation.
Garnick responded it is about $14.5 million for next year and it goes
up $40,000 to $50,000 for the year after.
He said because the money is discretionary, it is spread across all the
different departments. He said Public Safety
is proposed to receive about 65 per cent of the discretionary money for next
year.
Garnick reported that overall the budget has grown about six per cent a
year. He said because revenues are
growing slower than the expenses, in the future they would be seeing
reductions. He said the current
forecast is that at a minimum they would have to do a $1.8 million reduction
next year and in 05/06, they would have to reduce it by $4.5 million. He said the direction from the Leadership
Team is to do a larger reduction for 04/05 of $4.1 million so they could have
some stability for the following year.
VI. STRATEGIC PLAN
Tanya Heaton, Sr. Management Analyst, reported on the update on the
Strategic Plan implementation progress. (Copy in file).
VII. PUBLIC COMMENT
Diane Misar,
Blue Mountain School Road, Cottage Grove, said she came to talk to the Board
because she didn’t think they received her letter that 15 people wrote from the
Cottage Grove social services community.
She said she had been volunteering for 15 years to make youth a priority
for Cottage Grove for the last 16 years with Parent Partnership. She noted the County had been their mentor
in teen health and education services for all of those years. She discovered that Cottage Grove had not
been invited into the transition of service and budget planning on health
services and that is why they wrote the letter on April 5. She asked the Board to keep a real presence
in the community. She said the health
center is being closed and they didn’t know why. She said no one had responded to their letter. She asked the Board to keep their office
open at their current number of hours.
Glen Brigham,
South Eugene, said he was an employee of Youth Services. He supported Pathways. He believed it is important to keep Pathways
as part of the care that teenage boys receive.
He stated it was a necessary service to reduce juvenile crime. He said they keep the statistics on recidivism
and they are getting their money’s worth because it reduces crime. He added it follows the best practices model
as it involves families. He indicated
they have a year long after care. He
stated it was a valuable program.
Ann Marie Builderbach, 1188 Olive, was in support of Pathways. She believed in keeping Pathways open for a
continuum of care. She said if Pathways closes, it would have the only
residential facility in Lane County for boys.
She was concerned this program wouldn’t be able to function if it got
weaker. She said if this is lost that
Lane County would have lost a very valuable resource. She asked the Board to continue to support Pathways.
Rob Cook,
382 Naismith, stated he is the probation officer assigned to the
Florence/Mapleton area. He indicated
within the past year, the drug treatment available in Florence had
disappeared. He supported
Pathways. He said miracles happen at
Pathways. He had students who had gone
through Pathways and then had gone back to school when they hadn’t been in
school for years. He encouraged the
Board to keep Pathways open. He asked
what they would do if they don’t have residential treatment for the kids in the
County.
Sonya Wooley,
1193 Arcadia, stated she is a parent of a child that went through the Pathways
program. She said they were able to
save her son. She said it provided her
son with many goals. She said he is now
going to school to get his forestry degree.
She stressed how important this program was. She noted the expense is there but when you look at the expense
of not having the program and what will happen with crime, it is
tremendous. She said Pathways is a
vital program and urged the Board to keep it open.
James Martin,
277 Sunny View, supported Pathways. He
stated he was a past client of Pathways and has remained sober for two
years. He said it was one of the most
important thing he had done in his life.
He asked what would happen if Pathways is gone. He said it is important to the people in the
community and to parents of kids who have drug and alcohol addictions. He said it is about giving people their
lives back. He added that the youth
today is the future of tomorrow.
Harry Brady,
commented that petty crimes are unacceptable.
He said that human life should be the highest priority. He didn’t want any future cuts for public
safety. He said they have to do
something besides letting criminals go free.
VIII.ADJOURN
Chair Crowell adjourned the meeting at 9:00 p.m.
Melissa Zimmer
Recording Secretary