BOARD OF MASON COUNTY COMMISSIONERS' PROCEEDINGS 411 North 5th Street, Shelton, WA

December S, 2016 Special Meeting Minutes 9:00 a.m.

1. Call to Order - The Chairperson called the special meeting to order at 9:00 a.m.

2. Pledge of Allegiance - Chair Jeffreys led the flag salute.

3. Roll Call - Present: Commissioner District 1 - Randy Neatherlin; Commissioner District 2 - Tim Sheldon; Commissioner District 3 - Terri Jeffreys.

4. 2017 Budget Hearing - Presenter: Frank Pinter, Budget Manager: Mr. Pinter presented the proposed changes to the 2017 budget. There was a discussion of using additional mental health tax to reimburse jail inmate nursing related to mental health issues. After discussing with Public Health and others, it has been determined that is an unsustainable funding source. $1 OOK from the Mental Health Fund will be transferred in for jail inmate nursing. This public hearing is required pre RCW and copies of the 2017 Preliminary Budget were made available on November 21 . The recommendation is to adopt the 2017 budget in the total amount of $102,109,705. The Current Expense is $38,545,163 and the total other funds is $63,564,542

Compared to 2016 adopted budget, the revenues are reduced by $1.5M revenue and expenditures are reduced $1.3M, excluding ending fund balance. There are no additional employees in the 2017 budget.

Questions: Chief Ehrich asked what was reduced in the jail budget. Mr. Pinter answered the additional request for jail nursing was reduced. The budget allocation for jail nursing was increased $50K above the 2016 budget.

There are no shellfish harvesting revenues budgeted; no timber revenues from county logging but DNR revenues are budgeted at $500K.

Judge Sheldon referenced the preliminary budget posted on-line and questioned the revenues for Superior Court, Office of Public Defense and Murder Budget revenue and expenditures. Frank answered that the Superior Court revenue is budgeted at $56,200, Public Defense's total budget exceeds the anticipated revenue from OPD and the Murder Budget has been adjusted. Cmmr. Jeffreys stated we should be using the spreadsheet provided at today's hearing.

Cmmr. Sheldon confirmed that the indigent defense budget assumes it will be an in-house function. In 2016, he asked how much was added to the budget using the supplemental process. Mr. Pinter answered $963,000 was added; pending is $462K for a December 13 budget hearing. There is $16,000 ending cash balance projected this year after considering 131

h month expenditures and allowing for a 9% reserve ($3,180,531).

Testimony: Judge Sheldon has great concern for lack of funding for public defense. She stated this impacts the administration of justice. There is a constitutional right to have indigent defense and she does not believe it is appropriately funded . Judge Sheldon provided history on the indigent defense department as Superior Court managed this function for many years. The OPD revenue has to be appropriately accounted for. Judge Sheldon provided details on which budget lines she believes are underfunded . Judge Sheldon then referred to the Murder Budget which is budgeted at $50,000 and she believes that is not sufficient. There are two murder trials and one attempted murder trial scheduled to start in 2017. Dependency cases are underfunded and the BECCA grant revenue is overstated. The BECCA revenue is divided between those offices that have a role in the process.

Sheriff Salisbury stated the Sheriff's budget is cut. Inmate outsourcing has been reduced and that equates to about 23 people that won't be going to jail. He believes that holding people accountable has

BOARD OF MASON COUNTY COMMISSIONERS' PROCEEDINGS December S, 2016 {Special Meeting) - PAGE 2

reduced the crime rates. He will have to place a cap on the jail population and reduce marine patrol. Their new vehicle request has also been cut. Often times, their office is called upon to provide court security and his office may not be able to provide that coverage.

The Sheriff's proposed 2017 budget is $320,000 more than the 2016 adopted budget.

Cmmr. Jeffreys clarified there were no staffing cuts in the Sheriff's office and she questioned why court security would not be provided. The inmate outsourcing budget was not reduced, the budget amount requested was $300K and that was retained.

Cmmr. Sheldon noted the courthouse security budget was reduced.

There are 54 commissioned officers including command staff. The overtime request for patrol is $350K; jail overtime request is $200K.

Chief Ehrich stated they submitted a $14.9M 2017 budget request that did not include all CBA increases that amount to $700,000 and they had to cut $1 .2M in operating to meet the CBA obl igations. $13.8M is the 2017 proposed budget.

Public testimony was closed .

Cmmr. Jeffreys asked about Judge Sheldon's comments. Mr. Pinter responded the 2017 Public Defense budget is basically the same as 2016 and some of the budget lines may need to be adjusted.

The budget includes a 2.88% salary increase for non-represented employees.

Cmmr. Jeffreys stated the original budget requests were $7.9M more than revenues; although budget instructions stated no new staff, many submitted requests for additional staff.

Cmmr. Sheldon stated his budget proposal was to decide how much revenue there would be to allocate, then ask departments to prepare their budgets accordingly and prioritize the needs. Criminal justice is the priority. The MUNIS budget notes were not transmitted to the Commissioners and he stated the other two Commissioners micromanaged the budget.

Cmmr. Neatherlin stated they asked for Cmmr. Sheldon's input when the 2017 budget guidelines were written .

Cmmr. Neatherlin/Cmmr. Jeffreys moved and seconded to adopt the 2017 budget in the total amount of $102,109,705. The Current Expense is $38,545,163 and the total other funds is $63,564,542. Motion carried. N-aye; S-nay; J-aye. Resolution No. 91-16 (Exhibit A)

Cmmr. Sheldon believes the budget has not had adequate public review and there is the option to consider the budget tomorrow.

Cmmr. Neatherlin stated a lot of hours have been invested in the budget process at public budget briefings and there was a lot of work done by all the departments.

Cmmr. Jeffreys stated there is an increase in the traffic diversion to the Sheriff's office and that increases criminal justice and public safety. She appreciates the creative thinking from the jail chief and the prosecutor's willingness to delay the hiring of a position in his office. Some costs have increases such as retirement and labor and industry. Despite that, there were $1.4M in operating cuts. It has always been the jobs of elected officials and department heads to manage within their budgets and she pointed out there is not a healthy ending fund balance to consider for supplemental requests next year.

BOARD OF MASON COUNTY COMMISSIONERS' PROCEEDINGS December S, 2016 (Special Meeting) - PAGE 3

Cmmr. Neatherlin noted the Current Expense ending cash balance is $3,196,819 and 9% is budgeted for reserves.

Cmmr. Sheldon pointed out that people are the biggest expense; the County continues to upgrade technology and we have to maintain a lower labor force. He stated the County has to take advantage of technology and become more efficient.

Cmmr. Neatherlin stated part of the increase in staff was to address State Auditor findings, indigent defense case load limits, increase to improve customer service upstairs in Building 1, added code enforcement and increased the number of deputies. He believes these were absolute needs and/or requirements.

5. Adjournment - The meeting adjourned at 10:32 a.m.

ATIEST:

BOARD OF COUNTY COMMISSIONERS MASON COUNTY, WASHINGTON

rbeys,JH Tim Sheldon, Commissioner

Exhibit A

RESOLUTION NO. g I-'it? ADOPTION OF 2017 BUDGET

WHEREAS, the Board of Mason County Commissioners did meet in special session in the Commission Chambers on the first Monday in December 2017 at the hour of 9:00 AM, pursuant to public notice and as required by law for the purpose of adopting the budget for the year 2017; and

WHEREAS, said budget was compiled on 2016 property valuation as assessed by the Mason County Assessor; and

WHEREAS; the Road Fund Budget was prepared as required by RCW 36.82.160 and the County Road Administration Board;

NOW THEREFORE BE IT RESOLVED THAT 2017 budgetary salary and benefit expenditure line items shall not be utilized to meet obligations authorized by other portions of the budget; and salary and benefit expenditure line items shall not be increased by other portions of the budget; and no additions of staff ( either part or full time) or changes in salary and/or classification are permitted without approval of the Board of Commissioners.

BE IT FURTHER RESOLVED THAT that the Mason County Budget for 2017 is hereby adopted according to RCW 36.40.080 at the department level with two separate totals for salary/benefits expenditures and operating expenditures in the Current Expense Fund and at the fund level for all other funds (Attachment A which is hereby incorporated as part of this resolution).

Copies of the 2017 Budget will be available by January 31, 2017.

h~ Adopted this ~=1~--- day of December 2016.

ATTEST:

APPROVED AS TO FORM:

C _;7 ~ ~ Tim Whiiehe°ad, ChiefDPA

BOARD OF COUNTY COMMISSIONERS MASON COUNTY, WASHINGTON

Ten-i Jeffreys: ~

hlC\ Tim Sheldon, 4 mmissioner

C:\Users\DLZ-1.MAS\AppData\Local\Temp\XPgrpwise\Budget Adoption Resolution.doc

Adopted 2017 Mason County Special Fund Budget

Salaries & # Special Funds Revenue Benefits Operating Total

103 Rural Co Sales & Use Tax(.09) 1,130,000 1,130,000 1,130,000

104 Auditor's O & M 170,365 71 ,040 99,325 170,365

105 Roads 23,423,488 5,335,269 18,088,219 23,423,488

106 Paths & Trails Reserve 227,810 227,810 227,810

109 Election Equipment Holding 287,607 287,607 287,607

110 Co Share-20% RCW 7 .68.035 200,000 89 ,791 110,209 200,000

114 Victim Witness Activities 91,635 89,791 1,844 91,635

116 Historical Preservation 51,500 51,500 51,500

117 Community Support Services 762,200 69,905 692,295 762,200

118 Abatement/Repair/Demolition 266,000 266,000 266,000

119 Reserve for Technology 240,950 240,950 240,950

120 REET Electronic Technology 67,730 1,230 66,500 67,730

134 National Forest Safety 83,564 83,564 83,564

135 Trial Court Improvement 92,541 92,541 92,541

138 Family Law Facilitator 15,500 15,500 15,500

140 Sheriff Special Fund 257,000 65,440 191,560 257,000

150 Public Health 2,244,870 1,666,218 578,652 2,244,870

160 Law Library 100,091 100,091 100,091

163 Lodging Tax (Hotel/Motel) 525,300 525,300 525 ,300

164 Mental Health 2,264,734 2,264,734 2,264 ,734

180 Treasurer's M&O 214,774 82,324 132,450 214,774

190 Veteran's Assistance 94,640 94,640 94,640

192 Skokomish Flood Zone 586,655 586,655 586,655 194 Mason Lake Mngmt Dist #2 107,000 107,000 107,000 199 Island Lake Mngmt Dist #1 11,880 11,880 11,880 205 Public Works Facility Bond '07 914,000 914,000 914,000

210 M Co Rural Devel L TGO Bd '02 298,472 298,472 298,472

215 Mason County L TGO 2013 Bond 289,937 289,937 289,937

250 Mason County L TGO 2008 Bond 280,512 280,512 280,512

350 REET 1 1,681,645 1,681,645 1,681 ,645 351 REET 2 5,949 ,820 5,949,820 5,949,820

402 Landfill 4,322,319 610,661 3,711,658 4,322,319 403 NBCI Sewer Utility 2,162,075 332,977 1,829,098 2,162,075 406 Combines Utilites 66,351 66,351 66,351 411 Rustlewood 837,679 157,796 679,883 837,679 412 Beards Cove Water 705,331 105,883 599,448 705,331 413 Belfair WW/Water Rec Bond 2,365,413 259,937 2,105,476 2,365,413 428 CUM Reserve Landfill 511,144 511 ,144 511,144 429 CUM Reserve Beards Cove 351,647 351,647 351,647 480 Storm Drainage System Devel 71,026 6,374 64,652 71,026 500 Information Technology (IT) 1,071,887 460,923 610,964 1,071,887 501 Equipment Rental & Revolving 7,951,000 782,408 6,960,553 7,951,000 502 Unemployment 216,450 216,450 216,450

Grand Total 63,564,542 10,404,417 52,952,086 63,564,542

Adopted 2017 Mason County Current Expense Budget

Salaries & Dept/ Program Department Revenue Benefits Operating Total 000 Beginning Fund Balance 7,309,944 010 wsu 37,300 160,990 126,203 287,193 020 Assessor 1,157,673 151,601 1,309,274 030 Auditor 660,674 1,075,335 274,317 1,349,652 050 DEM 156,307 211,539 162,807 374,346 055 Facilities 434,048 735,896 1,169,944 057 H/R & Risk 1,000 418,968 151 ,935 570,903 070 Clerk 300,908 788,791 81,296 870,087 080 Commissioners 338,983 13,140 352,123 090 Central Svcs 5,421 565 ,878 51 ,058 616,936 100 District Court 1,018,493 935 ,363 91,796 1,027,159 125 DCD 1,585,450 1,580,575 232,765 1,813,340 146 Parks & Trails 267,450 467,215 135,530 602,745 170 Juvenile Probation 131,018 726,792 21,436 748,228 171 Juvenile Svcs 181,269 104,359 76,910 181,269 172 Juvenile Care & Custody 593,317 870,433 47,473 917,906 180 Prosecutor 188,300 1,413,380 157,791 1,571,171 185 Child Support Enforcement 262,431 234,732 27,699 262,431 190 Coroner 39,000 186,912 124,164 311,076 205.265 Sheriff Admin 550,600 1,288,044 128,220 1,416,264 205.267 Sheriff Patrol 10,000 4,821,153 971,184 5,792,337 205.269 Sheriff A/C 78,375 13,614 91 ,989 205.270 Care & Custody 466,012 3,531,229 1,243,424 4,792,611 205.271 LEOFF 65,000 1,000 66,000 205.274 SOR 101,054 108,748 5,000 113,748 205.275 Alternative Sentencing 30,000 99,561 32,145 113,706 205.280 Traffic Policing 1,424,286 75,714 1,500,000 208 CHS 167,140 167,140 240 Indigent Defense 157,493 585,118 274,712 859,830 250 Superior Court 316,861 906,043 320,567 1,226,610 260 Treasurer 22,074,371 643,050 171,435 814,485 300 Non Dept'I 1,983,490 384,650 1,371 ,608 1,756,258 300.312 Non Dept/Risk Management 117,000 950,000 950,000 310 Xfer Out 1,351,541 1,351,541 320 Ending Fund Balance 3,196819 3,196,819

Grand Total 3815451163 2516071223 12,937,940 3815451163