thurston county · about thurston county thurston county, washington, is located at the southern...

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Contact Us: Thurston County Courthouse 2000 Lakeridge Drive Southwest Olympia, WA 98502 Phone: (360)754-3800 Website: www.thurstoncountywa.gov Thurston County Quick Facts Population...............................276,900 Land Area in Square Miles........721.96 Median Income........................$66,993 Median Age..................................39.83 Unemployment Rate......................4.6% Public School Enrollment...........42,073 Table of Contents 2017 Board of Commissioners Letter from Commissioners Top Accomplishments Strategies Budget Overview Expenditures Revenues Workforce Budget Challenges Budget Highlights About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and the rugged Cascade Mountains are nearby to the east, while the Pacific Coast is just an hour’s drive to the west. The I-5 corridor runs through the middle of Thurston County, providing quick access to Seattle, Washington 60 miles north, and Portland, Oregon 100 miles south. Its northern border connects Thurston County with the state’s largest military base, Joint Base Lewis McChord. Thurston County’s 10 cities and towns are home to more than 277,000 residents. The county seat and largest city is Olympia, the state capital. This makes Thurston County a hub for the economy and politics in Washington State. Thurston County cultures range from rural farming communities in the south, to military families and dense populations in the north, to the unique culture of downtown Olympia. There is something for everyone in this beauful community! 2 4 3 2 Thurston County 2017 Citizen Budget Book 9 8 6 5 10 11

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Page 1: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

Contact Us:Thurston County Courthouse2000 Lakeridge Drive SouthwestOlympia, WA 98502Phone: (360)754-3800Website: www.thurstoncountywa.gov

Thurston County Quick FactsPopulation...............................276,900Land Area in Square Miles........721.96Median Income........................$66,993Median Age..................................39.83Unemployment Rate......................4.6%Public School Enrollment...........42,073

Table of Contents2017 Board of CommissionersLetter from CommissionersTop AccomplishmentsStrategiesBudget OverviewExpendituresRevenuesWorkforceBudget ChallengesBudget Highlights

About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and the rugged Cascade Mountains are nearby to the east, while the Pacific Coast is just an hour’s drive to the west. The I-5 corridor runs through the middle of Thurston County, providing quick access to Seattle, Washington 60 miles north, and Portland, Oregon 100 miles south. Its northern border connects Thurston County with the state’s largest military base, Joint Base Lewis McChord. Thurston County’s 10 cities and towns are home to more than 277,000 residents. The county seat and largest city is Olympia, the state capital. This makes Thurston County a hub for the economy and politics in Washington State. Thurston County cultures range from rural farming communities in the south, to military families and dense populations in the north, to the unique culture of downtown Olympia. There is something foreveryone in this beautiful community!

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Thurston County2017 Citizen Budget Book

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Page 2: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.co.thurston.wa.us

2016 Thurston Board of

County Commissioners

Commissioner John Hutchings, Co-ChairDistrict #1

Current Term, 2016-2020

Commissioner Gary EdwardsDistrict #2

Current Term, 2016-2020

Commissioner Bud Blake, ChairDistrict #3

Current Term, 2014-2018

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Letter from the CommissionersOne of the most difficult jobs we do as Commissioners is to develop and implement a budget that serves the citizens, funds our constitutionally mandated programs, and ensures we maintain a sustainable and responsible balance in the general fund.

Our challenging task of balancing the budget is made more difficult through revenue restrictions, mandated expenditures, and reductions made by the State Legislature. We contend with multiple issues that affect the budget and our decision making process. The two main sources of revenue for the general fund, sales and property taxes, are growing however, reductions made by the State Legislature and unexpected reductions in grant revenue, result in a virtually flat revenue.

It is also our responsibility to fund mandatory expenses like indigent defense and address overcrowding of the jail. These are two mandatory components that are currently not fully funded.

After considering the minimum necessary to maintain funding current services at current levels, we were left with a general fund shortfall. County offices and departments had a close review of their budgets and we were able to mitigate the shortfall for the 2018 budget. While the gap for this budget year was addressed, it doesn’t solve the long-term budget issues.

As we begin planning the 2019-2020 biennial budget, we will work with all of our departments and offices to address the imbalance between revenue and expenditures.

We maintain our committment to transparency and accountability in our decision making, budget development, and policy decisions. The goal in all our decisions is to keep Thurston County a healthy, safe, and vibrant community for future generations by promoting health, commerce, and environmental protection.

Page 3: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.thurstoncountywa.gov 3

Top Accomplishments Strategic PlanningThe Commissioners have invested in working with a consultant to update the County strategic plan for 2019-2023. The strategic plan will create a roadmap for the county and outline strategic goals and objectives. Work has already begun with County leadership. As part of the information gathering process, citizens will see a citizen survey in early December 2017 asking for feedback on where they see the County going and what County leadership should focus on during the next four years. More to come!

Law Enforcement Assisted Diversion (LEAD)Key law and justice agencies throughout Thurston County have implemented a pilot project for LEAD with Thurston County Sheriff’s Office and the Lacey Police Department. LEAD is a diversion tool for law enforcement to use for low level drug offenses and low level offenses caused by mental health issues. Participants in LEAD receive valuable resources and case management instead of going into

the jail system. This approach has been implemented in counties and cities nationwide and has a proven track record. This not only helps our citizens, it also reduces the stress of overpopulation on our local jails. For more information, visit the national LEAD site at: https://www.leadbureau.org/

Interim Gopher Review Process UpdateThe Commissioners implemented key changes to the 2017 gopher review season resulting in staff completing a record number of reviews during the review season of June 1 through October 31. The key changes included reducing the maximum number of site visits from three to two, requesting USFWS supply additional field biologists, and having more County staff conduct in-office pre-screenings of permit applications. Staff completed approximately 300 reviews, completing not only all new applications received prior to the cutoff date, but also clearing the backlog from the previous season. For more information about the gopher review process, visit: http://www.co.thurston.wa.us/permitting/gopher-reviews/

Fish Passage Culvert Replacement ProgramIn 2017 the County Commissioners took a proactive approach to address failing culverts restricting the movement and spawning of native fish, primarily salmon. The Commissioners set aside a total of $4 million from the REET2 fund to pay for the design and replacement of ten culverts by 2018. The Commissioners see this as an investment in our infrastructure, environment, and future. For information about the program, visit: www.co.thurston.wa.us/publicworks/projects At Beaver Creek after

culvert replacement

Update on New/Remodeled Courthouse* A project manager worked closely with

internal stakeholders to determine space and function requirements

* The County and City of Olympia began discussions on site criteria and partnerships for a location

* A financial workgroup has brought options forward for consideration by the Commissioners

* HB1344 passed during the 2017 legislative session extending the levy lid lift payout from nine to 25 years

* More focused discussions are scheduled for 2018

Page 4: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.thurstoncountywa.gov 4

Strategies

External Goals Internal GoalsEnvironment and Sustainable Resources- Preserve and enhance our physical environment and natural resources

Financial Stewardship and Planning- Use sound financial management and build long-term financial strength

Economic Vitality and Opportunity- Promote and advance sustainable economic vitality and opportunity for all our citizens

Quality Workforce- Attract, hire, develop, and retain an effective, diverse, professional, dedicated, and responsive team of employees

Health and Human Services- Promote conditions in the community that support the health and well-being of individuals and families

Building and Equipment Management- Provide an affordable quality work environment using the best available technology for the job

Public Safety and Judicial Services- Help keep people safe in their homes and communities

Communication- Assure that the public is informed and engaged with the development and execution of county policies, programs, and services

Vision: Thurston County is a vibrant community ensuring the health, safety, and wellbeing of generations to live, work, and play. Mission: To create a community that promotes health, commerce, and environmental protection with transparency and accountability.

Along with the County’s Strategic Plan, Thurston County is active and works toward action strategies of

a community action team called Thurston Thrives! Thurston Thrives is made up of community leaders from business, education, local government, neighborhoods, local charities, and social and medical care groups. The members comprise of a Coordinating Council and eight different action teams all working together to better the health, economy, education, and community within Thurston County. The Thurston Thrives Coordinating Council and Action Teams are engaging leaders to move forward an action agenda that improves the health for all Thurston County residents. More information at www.thurstonthrives.org.

Climate and Clean Energy: address climate change and promote clean energy within Thurston County

Clinical Care: develop a strategy and recommendations for how our community can improve the health care and health outcomes for residents

Community Design: develop a strategy and recommendations on how best to create or re-design community environments so that they make healthy choices easier

Economy: address the direct nexus between economic vibrancy and community health

Education and Resilience: develop a strategy and recommendations to increase high school completion and the attainment of post-secondary credentials in our community

Environment: Develop strategies to ensure that the environment of our community contributes to the health of all residents

Housing: develop a strategy and recommendations to ensure housing adequacy and quality for our community

Public Safety and Justice: develop strategies and recommendations to contribute to an overall vision for the community where people are safe where they live, work and play; people are held accountable for criminal conduct; and legal rights and due process for all people are respected and honored

Thurston Thrives Action Teams

Page 5: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.thurstoncountywa.gov 5

Budget Overview

“As has been the case for some time, Washington’s economy is continuing to outperform the nation.” - The Washingotn State Ecomonic and Revenue Forecast Council, U.S. and Washingotn State Economic Outlook Presentation, September 14, 2017

The County budget is complex. Managed for 19 offices and departments, the budget contains 82 funds and thousands of line items. The funds support the full range of County services. Several important best practices were adopted in the 2017–2018 budget development process, including:

* Shifting from annual to two-year or biennial budgets,

* Separating the operating and capital budgets, and

* Implementing priority based budgeting.

During 2017, a midterm adjustment to the biennial budget was developed. The scope of the adjustment is very limited and does not include new policy requests. Examples of adjustments include updating revenues and grants, and adjusting rates for internal services.

“In 2017, Forbes Magazine ranked the Olympia-Tumwater MSA (Thurston County) #32 for the best places in the nation for business and careers. The ranking acknowledges the county’s favorable performance in the areas of cost of living, job growth, recreational and cultural opportunities, and educational attainment.” - Jim Vleming, regional labor economist, Employment Security Department (https://www.forbes.com/places/wa/olympia/)

Thurston County’s economy is doing well. Growth is moderate, the construction industry is strong, and unemployment is low.Two good economic indicators are sales tax receipts by industry and jobs in the County. Sales tax is cyclical, following the economy. Two industries that are doing well are retail trade and construction, which have both been growing steadily since 2013. Employment is currently strong with more than 95% of the labor force are receiving paychecks. Another positive, the labor force has grown in each of the past three years. Government is the largest employer, representing 27% of the jobs in the County. The next largest employers are health care and retail, both at 11%. The unemployment rate in 2017 has been steadily falling to a low of 4.5% in October. In 2016, total payroll in all industries in the county exceeded $5.2 billion.Does the good economic news mean county coffers are full? No, some revenue sources go up and down with the economy, but they aren’t the largest revenue sources. It is important to continue to be careful and conservative to ensure fiscal sustainability for the future.

How can I get involved? Thurston County has 28 boards, commissions, councils, committees, and alliances that support the work of the county. Commissioners are looking for volunteers to fill the positions on these valuable support entities. If you are interested in becoming a board member, please visit: http://www.co.thurston.wa.us/bocc/boards.htm

Members of the Historic Commission giving information to the

public about Thurston County

Page 6: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.thurstoncountywa.gov 6

Type of Fund 2016 2017 2018

General Fund $94,790,144 $102,491,583 $103,514,176

Special Revenue Funds $147,288,822 $108,459,155 $99,201,075

Debt and Bond Funds $8,954,005 $9,260,955 $7,162,700

Capital Funds $10,870,201 $16,522,697 $30,656,912

Enterprise Funds $47,604,673 $54,152,385 $50,845,413

Internal Service Funds $32,580,728 $38,446,951 $35,043,689

Combined Expenditures $342,088,573 $329,333,726 $326,423,965

Combined Revenues $277,155,045 $316,375,044 $286,133,685

Summary of Expenditures by Fund Type

Expenditures

The proposed expenditures for the operationg and capital budgets for both 2017 and 2018 exceed $300,000,000

The General Fund makes up 32% of the total expenditures and is the one all-purpose fund that can be used for any county purpose. Other funds have dedicated or restricted purposes. Special Revenue funds comprise 31% of the total. These funds are used to account for and report on the proceeds of revenue sources that are restricted or committed.

Examples include:

* Roads fund which receives property tax and fuel taxes that are dedicated to roads maintenance and improvements.

* Detention Facility Sales Tax is funded by 1/10th of one percent sales tax as approved by voters in 1995. The funds are used exclusively for construction, maintenance, and operation of the juvenile detention and adult corrections facilities.

Debt funds are used to repay the principal and interest of General Obligation Bonds. These funds total 3% of expenditures. Capital funds make up 10% of the overall expenditures and are used for capital outlays, namely constructing or purchasing capital assets.

Enterprise funds account for business type services through user charges. These funds account for 16% of total expenditures. An example of an enterprise fund is Solid Waste which charges user fees at the Waste and Recovery Center.

Internal Service funds, which are 11% of the total expenditures, provide services to other offices or departments on a cost-reimbursement basis, including information technology and building maintenance.

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www.thurstoncountywa.gov 7

Expenditures

The General Fund provides a wide variety of traditional county functions. The majority of expenditures, 75%, are for law and justice purposes. These critical services include law enforcement, the courts, prosecution, public defense, law enforcement, corrections, and death investigations. In addition to law and justice, the General Fund supports other important services, including:* Conducting elections* Recording property

transactions* Managing investments

and cash* Assessing and

collecting property taxes

* Paying general obligation bonds

* Managing financial records

* Long-range planning

The budget is spent on a wide variety of purposes such as conducting elections, maintaining roads, operating courts, providing public defense, conducting restaurant inspections, and providing maternal and child health services. The overall purpose is to improve the quality of life in Thurston County.

Page 8: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.thurstoncountywa.gov

Revenues

Nearly half of the county’s general fund revenue comes from property taxes. Maintaining services supported by the general fund is a significant challenge because property taxes, are limited to increasing 1% a year and that does not keep up with rising costs and population.

The economy in Thurston County has been growing moderately since the recession. Unemployment is low and construction remains strong.

County operations are funded by taxes, licenses and permits, revenues from other governments (including grants), charges for good and services, fines and penalties, other financing sources (including transfers from other funds) and miscellaneous.

Property taxes are the single largest source of revenue, both for the General Fund and the county overall. Although the county sends out the bill for property taxes and receives the payment, only nineteen cents of every dollar is retained by the county. Ten cents goes to the General Fund and the other nine cents go to fund specific activities. Maintaining services with property taxes is a significant challenge because they are limited to increasing 1% per year and that does not keep up with rising costs and population.

The other main source of tax revenue is sales tax. The county receives a portion of the sales taxes paid. This tax is affected by the economy and consumer confidence. It grows in good times and falls during recession.

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Page 9: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.thurstoncountywa.gov

Workforce

Thurston County employs 1,099 Full Time Equivalents (FTEs) in a wide range of occupations, from nurses, planners, law enforcement, cashiers, to engineers. Just over half of the FTE’s, 57% work in positions funded by the General Fund. The above chart shows the county workforce compared to population over time. There was a high point of 1,252 when the Great Recession began in 2008 and then the workforce dropped to a low of 1024 in 2011 and 2012. Modest increases have occurred in the following years. However, population is outpacing the total Thurston County workforce.

Staffing in the General Fund has more closely tracked population. There is a significant drop during the Great Recession, but beginning in 2010, the trend in workforce is similar to population.

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Page 10: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

www.thurstoncountywa.gov

2017-2018 Budget ChallengesFiscal Sustainability: Commissioners are committed to adopting budgets that grow and maintain fiscally responsible fund balances. All county funds are expected to have positive fund balances in the 2017-2018 budget. The long-term outlook for the county budget is one of increasing demand for services matched to capped revenue growth. Based on current conditions, for projected revenue to cover costs without significant reductions to services, offices and departments must continue careful spending habits and seek opportunities for savings. The fund balance in every county fund must meet cash flow and maintain a reserve for unanticipated emergencies. To do that, the County must either have increased revenue, or decrease the current level of services and not address the added service demands of a growing population.

Law and Justice: The cost of criminal and civil justice, including the courts, prosecution and defense, policing, and the jail is 75% of the general fund and is constantly increasing. Despite the drop in crime the jail population is increasing, in particular, the population with special needs. The need to contain costs is driving the need for changes in law and justice practices.

Environmental Stewardship: Limited staff and financial resources have made keeping up with federal and state environmental regulations, including the Federal Clean Water Act, State Growth Management Act, Shoreline Master Program, State Environmental Policy Act, and the Federal Clean Air Act difficult. The laws and regulations in place are difficult to fully enforce due to lack of enforcement capacity and compliance resources.

Health Care: Rising costs and continuing changes in state and federal policies make it difficult to plan for public health in Thurston County. Limited information is available on what these changes will mean for services the county provides. Although the Behavioral Health Organization has been established in cooperation with Mason County, future state laws regarding mental health and chemical dependency treatment are unclear. The County experienced an increase in the demand for behavioral health services while the community capacity for treatment and associated services is limited. Rising costs of employee health care is a major driver in the increasing operating budget of the county.

County Facilities: The County owns facilities that range in age from a few years old to many years old. The courthouse complex, built in 1978, is nearing the end of its useful life. Other county owned buildings need to be repaired or remodeled to make the best possible use of the space. Even the newer buildings require maintenance and replacement of building infrastructure. The County continues to house staff and equipment in expensive rental space. The County is working on long-term plans for making the most of county-owned space, including the sale of unused buildings and planning for the possible replacement of the courthouse. Finding adequate funds for these projects will be the key to success.

Connecting With GovernmentThurston Community Media (TCM) is a local non-profit corporation that provides public access channels to the residents of Thurston County. Thurston County government works with TCM to film and broadcast weekly Board of County Commissioners meetings, Board of Health meetings, the monthly County Commissioner television show “Thurston County Connection”, and special projects. Channels 3, 22, 26, 77, or OnDemand at https://tcmedia.org.

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* Keeping pace with construction activity by increasing staffing for processing building permits, conducing inspections, and assessing property values

* Expanding transparency by livestreaming Commission public meetings

* Adding an employee to improve training, outreach, and guidance to community providers for developmental disabilities

* Providing the foundation for a three-county Nurse Family Partnership Program

* Expanding promotion (support) for economic development and tourism

* Funding increases for corrections health services and contract housing providers

* Ensuring adequate defense for indigent residents by paying a higher rate for contracted attorneys

* Improving stability of the Public Defense budget by bringing some contract services in-house

* Increasing funding for testing to replace vacant positions in the Sheriff’s Office faster

* Adding Hepatitis C testing to the Syringe Exchange program

* Enhancing emergency preparedness for south county

* Improving financial stewardship by adding a grants manager

* Reducing delays for families and first responders by increasing Coroner’s Office staffing

* Proving a cost of living increase to employees in 2017 and 2018

* Adding a project manager to begin addressing large information technology system needs

* Expanding bed capacity of the jail by constructing an additional housing unit

* Improving fish passage by establishing a culvert program

* Protecting water quality by increasing groundwater monitoring at the Waste and Recovery Center

* Improving staff and visitor safety with building security systems (projects)

* Preserving and maintaining county buildings with repairs and improvements

* Planning for future service delivery and space needs by adding a project manager for a new courthouse, purchasing a County-occupied building, and selling buildings no longer needed

Operating Budget~ Maintains critical services, invests in expanded

capacity, and maintains adequate reserves

Capital Budget~Provides funding for roads, stormwater

infrastructure and county facilities

2017-2018 Budget Highlights

Did You Know? In 2016:* Crews resurfaced 67 miles of road* The WARC managed more than 183,000 tons of solid

waste and 27,000 tons of food and yard waste* The Auditor counted 314,059 ballots* Medic One/Paramedics responded to 9,610 calls* Issued 2,139 permits, including 345 for new dwellings* SWAT team actived for eight missions* Thurston County had a 77.66% voter turnout for the

General Election* 130 million gallons of sewer water was treated

Page 12: Thurston County · About Thurston County Thurston County, Washington, is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and

Stay Connected Facebook: https://www.facebook.com/thurstonco/

Twitter: @ThurstonCounty

Instagram: https://www.instagram.com/thurston_county/

YouTube: https://www.youtube.com/channel/UCuANWax0cRG6l05UWvYkZ5g

John Hutchings, Co-ChairCommissioner District #1

Commissioner Assistant: Kelli KennedyPhone: (360) 357-2470

Email: [email protected]

Gary EdwardsCommissioner District #2

Commissioner Assistant: Vickie LarkinPhone: (360) 786-5474

Email: [email protected]

Bud Blake, ChairCommissioner District #3

Commissioner Assistant: Erin BirklidPhone: (360) 786-5414

Email: [email protected]

Thurston County Courthouse2000 Lakeridge Drive Southwest

Olympia, WA 98502Phone: (360)754-3800

Website: www.thurstoncountywa.gov