PORT TOWNSEND — Jefferson County commissioners and staff will meet this morning to discuss budgeting solutions for an anticipated sales tax shortfall of about $297,000 after county Administrator Philip Morley recommended a one-year pay freeze for commissioners and other elected and appointed non-union county employees.
Morley told commissioners about the expected shortfall in sales tax and other declining county revenues Monday.
Today’s special meeting is set for 8 a.m. in the commissioners chambers on the ground floor of the Jefferson County Courthouse, 1820 Jefferson St., Port Townsend.
The three commissioners plan to discuss with county officials and representatives of other governments to come up with solutions, such as more intergovernmental cooperation.
County commissioners and other elected department heads voluntarily took a 6.25 percent pay cut last year.
Of the county’s $53.3 million 2010 budget, salaries amount to $8.6 million, or about 54.8 percent of the general fund.
“I just don’t think we can offer, at this time, pay increases,” Morley said Monday, urging the county commissioners and administrators to “lead by being the first step forward.”
Morley said he would also work with union representatives “to determine how we can control our labor costs.”
Bleak picture
The county administrator in effect opened up the county budget season with his comments, saying in general expenditures are continuing to outstrip revenues at the courthouse.
That was just a part of Morley’s bleak budget picture, which he has routinely delivered and updated since shortly after he was hired in late 2008.
Morley called for no new hiring without revenue to support it — which amounted to a hiring freeze — other than a new Watershed Stewardship Resource Hub with two employees that the county commissioners approved Monday, funded primarily with a $533,761 Environment Protection Agency grant and $266,885 in previously earmarked county money available as a match.
The new watershed resource hub will assist the county Department of Community Development’s front office, with staff to help inform homeowners, builders and developers how best to deal with environmental effects and county policies involving building on shorelines, stormwater and critical areas.
The hub will allow those in Community Development who issue permits to do so, Morley said.
The county administrator warned that the county would conservatively watch its dollars and cents.
“We’re not assuming that the economy is going to boom back,” Morley told the commissioners, “as not to put the county at risk.
“No matter what we do, with the economy there’s always a risk.”
At the pace it’s going, Morley said the county’s cash balance is $2.2 million and will fall to $1.5 million next year, to $266,000 in 2012 to a deficit of $1 million in 2013 and $2.4 million in the red by 2014.
Transit measure
At today’s special meeting, commissioners are also expected to address a proposed Jefferson Transit Authority Board election initiative that would ask voters in November to raise the sales tax for bus system operations to 0.3 of a percent, or 3 cents on every $10 spent.
The Transit board tabled action on the matter a week ago to allow discussion of other options. Port Townsend City Council member Catharine Robinson was the only member of the board who voted to put the measure on the ballot.
The Transit Board has until Aug. 10 to put it on the Nov. 2 ballot.
Strategic plan
Morley’s budget update came after the county commissioners last week approved a strategic plan, largely focusing on improving the flagging county economy.
The plan sets six priorities for 2010 and 2011:
• During the recession, maintain key public services within county means.
• Strengthen the efficiency and quality of county services.
• Put county government on a sustainable financial footing.
• Strengthen Jefferson County’s economy.
• Support its unique communities.
For the 2010 budget, the commissioners late last year cut 10 staff positions, reduced services and closed parks to narrow a $1.9 million funding gap over the next four years.
Volunteers later came forward to keep most of the county’s parks open.
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Port Townsend-Jefferson County-Sequim Editor Jeff Chew can be reached at 360-681-2391 or at jeff.chew@peninsuladailynews.com.