SKAGIT COUNTY

WASHINGTON

2003 ANNUAL BUDGET

Adopted December 17, 2002

SKAGIT COUNTY GOVERNMENT MISSION

SKAGIT COUNTY is a very special place to live, with beautiful and diverse communities and extraordinary natural resources. Skagit County Government proudly serves the people, businesses, communities and organizations in this special place, guided by these principles:

* We will partner with our customers, based on mutual respect and trust, to protect and plan for the health, safety and welfare of current as well as future citizens.

* We will assist our customers, based on fairness and justice, to understand and comply with the intent of Federal and State regulations as well as our own.

* We will support and honor our employees in their efforts to be progressive and innovative in improving the efficiency and quality of services to our customers.

OUR MISSION is to be recognized as a premier county in Washington State for providing professional leadership, operational excellence, timely assistance, and maximum efficiency in service delivery to our customers.

Table of Contents

Commissioners Letter 1 – 2

Resolution No R20020443, Establishing Goals and Objectives for the 2003 Budget 3 – 4

Introduction:

Organizational Chart for Skagit County 5

Financial Summaries and Comparisons 6 – 11

Position Summary 12

Elected Officials 13

Department Heads/Non-Elected Officials 14

Budget Process 15 – 16

Current Expense Fund Budget 17

Budget for All Funds 18

Current Expense Fund Resources 19 – 23

Current Expense Fund Disbursements 24 – 25

Resources of Other Funds 26 – 31

Current Expense Fund – 2003 Budget Detail:

Assessor 32 – 34

Auditor 35 – 36

Board of Equalization 37

Boundary Review Board 38

Civil Service Commission 39

Clerk of the Courts 40 – 41

Commissioners 42 – 43

Cooperative Extension 44 – 45

Coroner 46 – 47

Administrative Services 48 – 51

District Court 52 – 53

Historical Society 54 – 55

Public Defender 53 – 57

General Maintenance 58

Public Safety Building Maintenance 59

Hearing Examiner 60

Planning and Permit Center 61 – 63

Youth and Family Services 64 – 67

Prosecuting Attorney 68 – 69

Sheriff 70 – 71

Superior Courts 72

Treasurer 73 – 75

Noxious Weed Control 76

Non-Departmental 77

Contributions to Active Funds 78

Records Management 79

Water Quality Programs 80

Assigned Counsel 81

Pest Control 82

Mediation Services 83

Other Funds – 2003 Budget Detail:

Public Health 84 - 85

Special Paths 86 - 87

Emergency Management 88 - 90

County Fair 91

Veteran’s Relief 92

Law Library 93 - 94

River Improvement 95

Centennial Document Preservation 96 - 97

Elections Services 98 - 99

Parks and Administration 100 - 103

Substance Abuse Treatment 104 - 105

Human Services 106 - 107

County Roads 108 - 111

Senior Services 112 - 116

Convention Center 117

Salmon Recovery 118

Conservation Futures 119

Medic 1 Services 120

Crime Victim Services 121

Emergency Communication 122

Best P.L.A.C.E. 123 - 125

Sub Flood Control Zones 126

Lake Management Districts 127

Edison Clean Water Sub-Area 128

Drug Enforcement Cumulative Reserve 129

Boating Safety 130

Low Income Housing 131

Title III Funding 132

Interlocal Investigation Cumulative Reserve 133

Debt Service 134

Land Acquisition 135 - 136

Capital Improvements 137

Distressed Public Facilities 138

Park Acquisition 139

Solid Waste 140 - 142

Drainage Utility 143

Equipment Rental and Replacement 144

Insurance Services 145

Budget 2003

December 30, 2002

Re: 2003 Adopted Budget

We are pleased to present the citizens of our county with the 2003 Annual Budget for Skagit County. Our 2003 budget, spread over forty-eight different funds, is representative of our best efforts to keep pace with the ever increasing need for services in a wide array of government processes, functions and programs, while being ever watchful of fiscally responsible budgeting. Our 2003 budget plan is conservative, yet takes into consideration the changing financial climate we must function in.

The preliminary 2003 budget was presented to the public and was discussed at the public hearing on December 9, 2002. We formally adopted the final budget after considering public input on December 17, 2002. Our formal document will be available to the public the week of December 30, 2002 in the Commissioners office or online at our website www.skagitcounty.net

This year brings many challenges to governments across the state. The state legislature will be deliberating over the state budget this year, and with over a two billion dollar deficit, we will not know what the impact to Skagit County will be until later this year. The economy is certain to impact our resources in areas such as sales taxes and earnings on our invested resources. This coupled with loss of revenue sources such as the motor vehicle excise tax revenue caused by Initiative 695, and voter approved Initiative 747 which limits our ability to increase property tax; we have adopted a very conservative budget which reflects growth within the means of the county. We recognize that many Washington State residents are concerned about property taxes and want to see government using its taxing authority more frugally. The Board of County Commissioners is acutely sensitive to this concern. While this budget does not reflect a reduction of services that many of our county residents come to expect, it is our intent to closely monitor programs throughout the county to ensure that the most critical services are maintained.

Even as tax revenues are squeezed, we continue to face rising health insurance premiums that are escalating far beyond the rate of inflation. In 2003, we have renegotiated our health insurance coverage with a new carrier and implemented a program for which the county has a little more control. This may not eliminate double digit increases in the future, but perhaps we can temper those increases better than in the past.

Employees are Skagit County government’s most valuable assets, and it is only with their dedication and commitment that the county can provide the highest level of service to our citizens and customers. The 2003 annual budget includes a 2.5% cost of living adjustment (COLA) for non-union personnel. In 2002, the increase was held at 1%, which does not sustain county wages with the cost of inflation. We chose to raise this for 2003 in order to maintain a wage base which would continue to attract highly qualified employees however we will review the efficiencies of operations in order to determine staffing levels and COLAs in future years. Reclassifications of employees are usually considered at budget time. Due to the pending classification study, all reclassifications will be deferred and evaluated through that process.

In total, the 2003 Skagit County budget includes operating revenues of $106,431,307 and operating expenditures of $113,471,086. While it would appear that in total this budget appears to be in a deficit position, many agencies are planning on using reserve balances to provide services for the 2003 Fiscal Year. The Capital Project Funds, which provides long-term infrastructure funding, plans on using over $4.7 million in reserves towards projects.

The Current Expense Fund budget, the county’s largest operating fund, includes operating revenues of $38,294,711 and operating expenditures of $38,702,174. This represents an increase in revenues of $893,454; 2.4% higher than the 2002 adopted budget, and an increase of $1,306,893 in expenditures; 10% higher than the 2002 adopted budget. Our operational budgeted expenses balance with revenues for 2003, however we find that we need to utilize $407,463 in reserves toward updating critical technology issues that we must address and toward Growth Management Act issues required, yet unfunded by the state.

Property Taxes and Other Revenues

Citizens of our county continue to let us know that they want continued services, sometimes more and improved services, while keeping taxes to a minimum and in some cases lowering taxes. This is a daunting challenge for many counties. Due to the requirements of Initiative 747, the Board of County Commissioners have chosen to budget for a 101% percent increase in property taxes for both the General Levy and the Road Levy, representing an additional increase of $137,763 and $87,726 respectively in property tax revenue. We will capture new construction for both levies in 2003 generating $441,830 in the General Levy and $346,015 for the Road Fund.

Sales tax revenue estimates for 2003 are $5,400,000. This is an aggressive estimate compared to the 2002 projection of $4,900,000 however trends indicate that the 2002 projection was a little conservative. It is our intention to monitor this throughout the year. Sales tax and property tax revenues account for 50.8% of total current expense fund revenues.

We continue to aggressively pursue the securing of other government funds, namely the state and federal governments.

We are pleased and proud to be of service to the citizens of Skagit County, and welcome your review of our adopted budget.

Sincerely,

BOARD OF COUNTY COMMISSIONERS

SKAGIT COUNTY, WASHINGTON

RESOLUTION NO. R20020443

ESTABLISHING GOALS AND OBJECTIVES FOR THE 2003 FISCAL YEAR BUDGET

WHEREAS, pursuant to Chapter 36.40 R.C.W., relating to county budget laws, the 2003 Budget Call was issued and the County Auditor received detailed estimates of revenues and expenditures from county offices and departments; and

WHEREAS, upon receipt of said estimates, the budget was compiled and submitted to the Board of County Commissioners on September 9, 2002; and

WHEREAS, the Board conducted a public hearing on the budget pursuant to R.C.W. 36.40.071 on December 9, 2002, after notice of said hearing was published on November 28th and December 5th, 2002 in the Skagit Valley Herald, and at said hearing all interested taxpayers appeared and were heard; and

WHEREAS, it is the intent of the Board of County Commissioners to articulate policy relative to monitoring, maintenance accounting and implementation of the county budget as required by law; and

WHEREAS, the 2003 Budget has been apportioned to the various county departments in the categories of salaries and wages, personnel benefits, supplies, other services and charges, intergovernmental services and taxes, capital outlays, debt service, and interfund payments for services; and

WHEREAS, the following Goals and Objectives shall apply to the management of these categories:

Fiscal Budget Objectives

1.  The budget shall be balanced within available resources. In addition to annual fiscal objectives, efforts need to be made to consider future long-term service needs.

2.  Growth in General Fund property taxes have been established at 101% plus taxes collected on new construction.

3.  Growth in Road Fund property taxes have been established at 101% plus taxes collected on new construction.

4.  “Banked capacity” of $816,039 for the General fund and $846,150 for the Road Fund shall be preserved for emergency situations (i.e. flood or earthquake relief), and shall not be directed toward county operations for fiscal year 2003.

5.  Departments shall administer their budgets in a fashion that will yield the best results for the revenue available.

6.  Where programs are dependent upon the continued availability of grant support, departments need to ensure the sustainability of the grant source and the implications of grant funds being reduced or eliminated.

7.  A minimum reserve balance of 10% shall be maintained for all operating funds.

8.  Revenues collected in excess of the minimum reserve shall be held for one-time, special purpose needs that fulfill strategic objectives of the county.

9.  Departments with programs that are primarily funded with permit and service fees shall analyze these fees during the course of the year to ensure that all costs are being captured within the fee structures established and shall recommend adjustments as appropriate.

10.  Departments shall identify those program costs that are directly resulting from a mandate from any state law or agency rule that does not provide full funding for the costs incurred. It is the intent of the county to pursue reimbursement for these costs.

NOW, THEREFORE, BE IT RESOLVED AND IT IS HEREBY ORDERED, that the amounts listed in the attached documents are hereby adopted as the budgets and authorized positions for said offices and departments for the year 2003. Further, every county official and department head shall be limited in the making of expenditures or the incurring of liabilities to the amounts within the fund/department totals as set forth in the attached documents, and by this reference incorporated herein as though fully set forth.

WITNESS OUR HANDS AND THE OFFICIAL SEAL OF OUR OFFICE, this 30th day of December 2002

TOTAL BUDGET

Revenue Analysis

TOTAL BUDGET

Expenditure Analysis

Elected Officials
Effective January 2003

ASSESSOR Mark Leander

AUDITOR Norma Hickock-Brummett

CLERK Nancy Scott

COMMISSIONERS

District #1 Don Munks

District #2 Ken Dahlstedt

District #3 Ted W. Anderson

CORONER Bruce Bacon

DISTRICT COURT

Court #1 Hon. David Svaren

Court #2 Hon. Steve Skelton

PROSECUTING ATTORNEY Tom Seguine

SHERIFF Rick Grimstead

SUPERIOR COURT

Department #1 Hon. John Meyer

Department #2 Hon. Michael Rickert

Department #3 Hon. Susan Cook

TREASURER Katie Jungquist

Dept. Heads/Non-Elected Officials

ADMINISTRATIVE SERVICES Gary Rowe

COOPERATIVE EXTENSION Mike Hackett

DISTRICT COURT ADMINISTRATOR Pam Springer

EMERGENCY MANAGEMENT Tom Sheahan

FACILITIES MAINTENANCE Roger Howard

FINANCIAL SERVICES Bradley Whaley

HEARING EXAMINER Wick Dufford

HISTORICAL MUSEUM Karen Marshall

HUMAN RESOURCES Roy Atwood

HUMAN SERVICES Maile Acoba

PARKS/RECREATION AND FAIR Bob Vaux

PLANNING AND PERMIT CENTER Gary Christianson (interim)

PUBLIC DEFENDER Gary Gaer

PUBLIC HEALTH Peter Browning

PUBLIC WORKS Chal Martin

SENIOR SERVICES Tim Holloran

SUPERIOR COURT Hon. Dave Needy

YOUTH AND FAMILY SERVICES Nancy Brown

Skagit County
Budget Process

Skagit County must follow appropriate procedures during budget preparation, consideration, review, and final adoption of the budget. These procedures are set forth in the state Statutes in the Revised Code of Washington (RCW 36.40) and in the Washington State Office of State Auditor's Budgeting, Accounting Reporting System (BARS) manual. The budget process at Skagit County is divided into four stages:

Budget Preparation