With the expectation to utilize $707,528 of reserves to balance the General Fund’s estimated $33.2 million in expenditures and $32.5 million in revenues.

Clallam County commissioners passed the resolution for the county’s 2015 budget Tuesday, Dec. 2 in a two to one vote.

Including both the general fund and other funds, the upcoming budget equates to a projected $80.2 million in revenues and $90.5 million in expenditures.

Fourth quarter budget emergency

The county received an unanticipated $500,000 payment from the Washington state Legislature to help it recover from the $1.1 million criminal justice costs in 2012 and 2013, primarily due to the “extraordinary costs” for the Darold Stenson double-murder trial, according to the draft budget message prepared by county administrator Jim Jones.

During this time, in order to avoid layoffs, some county employees experienced reductions in benefits and compensation.

Using the unforeseen reimbursement from the state, Doherty and McEntire approved a $482,559 budget emergency for a medical benefit premium refund to impacted employees.

Although eligible, Chapman, McEntire and Jones have decided not to accept their refund.

Because of the decision to use the state’s payment to reimburse employees, Chapman made it known he would not support budget emergencies into the new year nor the 2015 budget.

“Because of the vote on this issue I will be voting against the budget and I would like to put on the record for next year we should have no budget emergencies,” Chapman said. “I’ve been talking to a number of people, including representatives of the state, and it is really not the state’s intention that this is how the money be used.”

“One last thing – this will certainly make for fewer funds going forward in Clallam County which is also a really sad thing,” Chapman said.

Though Doherty noted there is another side to the issue and “the workforce was led to believe” if some concessions were made, then the board would help backfill those concessions if possible.

County employees impacted by the past concessions can expect an average $1,500 medical benefit refund today, Wednesday, Dec. 10. Any deferred money, such as McEntire’s, Chapman’s and Jones’ portion of the reimbursement will remain in the General Fund.

County budget overview

Despite the lack of support from Chapman, the 2015 $33.2 million General Fund budget passed while ending the year with a “very healthy General Fund Reserve of at least $12 million,” according to the draft budget message. Although most of the reserve funds are restricted, there are $4.5 million available to pay for unexpected expenses, one-time capital replacement projects and overall future cushioning.

Looking ahead, Jones notes that state grants, reimbursements and sales taxes are projected to be reduced, and unlike the sales tax boost in 2014 from the two U.S. Highway 101 construction projects between Sequim and Port Angeles, the 2015 sales tax is likely to decrease by $250,000.

The county’s Road Department also estimates about a $1.1 million decline in revenues because of lower state and federal project reimbursements and little to no increase in gas taxes.

With the “latest information from the DNR projects” indicating a slowing trend of public timber sales, Jones hopes private timber sales will “maintain their high levels for at least one more year.”

With some flat and/or declining revenue sources, county officials still “maintain good control of their spending,” Jones said, but the majority of employees will stay at the 37.5 hour work week and do not get any COLA (cost-of-living adjustment) increases during 2015.

Automatic tax increases

The county commissioners did not vote for the automatic 1 percent property tax levy so Jones expects revenues from property taxes to stay flat at $10.2 million. Including property taxes, taxes equate to about 48 percent of revenues for the General Fund.

Although the property tax won’t automatically increase, with some hesitation from McEntire, the 1 percent road fund levy will increase by $68,191 which contributes about $7 million.

“I am thinking of not voting for the road tax,” McEntire said. “$68,000 doesn’t buy an awful lot, it doesn’t provide a lot of help, but at least it’s something that offsets in small way the impact to household budgets with the pretty substantial school district levies.”

Despite McEntire’s comments, Doherty maintained his position to vote for the levy in part to keep the road fund reserves healthy enough to stay competitive for local matches and bring in outside money, which he said is a “sizable gain” for the county, and having the ability to do so has “helped the taxpayers more than the relatively small amount of the levy.”

After some discussion and given Chapman’s outspoken opposition to all budget decisions following the approval of the $482,559 budget emergency, McEntire acknowledged reaching “an impasse,” on the levy and thus decided to withdraw his previous motion and move the road fund levy as written in order to gain a second.