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HomeMy WebLinkAboutPublic Works Presentation 1 10/22/2026 General Fund Update General Fund Paper Deficit $3.OMM 25/26Adopted vs 2027 Preliminary Budget Hiring Freeze /Vacancy $1 .7 MM (Additional 5%) Restricted Balance (1/1Ot" CJ) $90 K $ 60 MM Structural Deficit $1 .2 MM Top General Fund Changes Since Preliminary Budget: $ 50 M M 2027 2025 2027 - Frozen Positions Removed from 2027 Budget 2026 -$2751< Risk Pool Renewal Adjustment (Included) 2026 2025 -$7001< Benefits Adjustment (Included) - 400K CDS/Public Health Subsidies $40 MM -100K UDC Debt service - Enterprise Technology Additions $ 30 MM I 1 Vacancy Savings: Savings from the time a position remains unfilled EXPENSE REVENUE during normal turnover. Paper Deficit 2026 Adopted Budget 2027 Preliminary Hiring Freeze: Extends vacancy periods, increasing and sustaining Expense 47,578,196 50,158,617 savings by delaying the refill of positions. Revenue (44,739,193) (47,588,702) Transfer In _ _ Remaining Transfers: Transfer Out 451,282 441,000 $200K — Springwood Grand Total 3,290,285 3,010,915 $100K -Admissions Tax / Public Health * $90K- Restricted Balance (1/10t" CJ) Projects Reminder Requests (Some Project/Personnel) not $51 K-Trial Courts Matching Funds included 2 10/22/2026 JL20.27 Strategic Priorities Net Zero Budget: Structural Deficit Correction Adopt a net-zero structural deficit budget for General Fund. External funds are subject to customized directives. Capital Infrastructure: Capital Facilities Working Group Leverage the working group to identify feasible, suitable, actionable solutions for critical infrastructure needs and align resourcing budgets with this initiative. Drive Operational Efficiency: Maximize Technology Enhance efficiency through technology and resource consolidation to maximize the return on personnel investments. Maximize Dedicated Reserves: Address Current Pressures, Share Burden Strategic use of reserves gives us flexibility to respond to immediate challenges while spreading the financial impact. Targeted deployment helps maintain stability and supports key transitions without overburdening annual budgets. 3 10/22/2026 ProfessionaL Service - Breakdown Professional Services is the County's second-largest recurring expense category after Personnel, encompassing contracted services and professional fees that support County DISTRIBUTION OF PROFESSIONAL SERVICES BY operations and public service delivery. SUB CATEGORY TOTAL: $38 MM Pass-through expenses are another significant component, representing funds distributed Medical to outside agencies. For example, KITTCOM accounts for approximately 14% of the overall Internal 3% expense profile. This category also includes Internal Service Charges, which represent costs 10% allocated between County funds to support shared services and operations. Transport Misc DISTRIBUTION OF PROFESSIONAL SERVICES BY FUND 13% Services TOTAL: $38 MM 45% GENERAL FUND CDS 20% 3% COUNTY ROAD 4% Pass Through FLOOD CONTROL 28% 5% Type Amount PUBLIC FACILITIES SOLID WASTE Misc. Services $ 17.0 MM 8% 17% Pass Through $ 10.5 MM Transport $4.9 MM LODGING TAX Internal $ 3.7 MM 8% KITTCOM Medical $ 1.0 MM HUMAN SERVICES 9% 14% Court/legal Services $ 0.6 MM Fees/Assessments $ 0.1 MM 4 10/22/2026 TraveL & Training - Breakdown Travel &Training - 2027 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 1. L L . ■ ■ ■ ■ ■ . ����QO QQ,`���Q�,. �Q<�iZ.G�`��JO �y��� GO y kJ���O Q�,�ti.PoP�Q-`5��p��O��`1• J� ��O 911<1 0+ 501 OQ +11 � A,, 1�Q` �� OQ OJG O � JQ "` � G GG 5 J t�5 Q0 4 QO � ` , ,`O G 5� 2 � G QJ AK O ��O pip pJ0 110 XN 51` ��G Q1P ■Total Budget/FTE Travel and Training generally go hand-in-hand. The dark blue shows the total combined travel and training preliminary budgets totaling more than $5,000. The grey bars show average travel &training per FTE by dividing by the number of approved positions in the 2027 preliminary budget (does not include frozen positions). Some expenses are reimbursable and require additional analysis to determine if savings exist through reduction. In total these expenses comprise in total $518,240 and $344,478 in the General Fund. 5 10/22/2026 PUBLIC WORKS FAMILY REVIEW Part of the Broader Public Family - Public Works Family provides a consolidated view of the County's core county road and infrastructure construction and maintenance. This allows the Board to: • Evaluate this grouping both in the context of the Public Services but also in isolation due to its size. • Due to its project driven nature evaluation in isolation provides a consistency to analysis. • Consider resource shifts based on service priorities, community needs, and future planning. • Evaluate staffing, service levels, and capacity across the Public Worl<s system as a whole. AIRPORT COUNTY ROAD FLOOD CONTROL PUBLIC FACILITIES SPRINGWOOD PARKS COUNTY BROADBAND WATER MITIGATION EQUIPMENT RENTAL & REVOLVING 6 10/22/2026 2027 Expense Budget: $ 146 . 9 MM Public Works Family: $49.3MM *Interfund Transfers are intentionally omitted from County Wide Expense views Public Works Family Expense $49.3 MM CENTRAL Distributed by Type 13% INSURANCE PUBLIC SUPPLIES 1% WORKS 8% 33% CJ PS 13% PERSONNEL 16% CAPITAL 17% SHERIFF PUBLIC HEALTH 16% 6% PUBLIC 19% SERVICES kfAMILYG28% • • i CENTRAL $38.5 MM $ 19.4 MM • TYPE 2026 : CJPS $ 16.4MM $ 19.2MM SHERIFF $22.0 MM $23.3 MM :P ERSONNEL $7.1 MM $7.9 MM PUBLIC $25.8 MM $27.4 MM ..LILESA $4.7 aML , PUBLIC HEALTH $ 10.6 MM $8.3 MM INSURANCE $0.5 MM $0.7 MM PUBLIC WORKS $50.5 MM $49.3 MM CAPITAL $24.5 MM $23.0 MM TOTAL $163.9 MM $146.9 M M 7 10/22/2026 2027 PUBLIC WORKS Family Revenue : $44. 2 MM Revenue Trends REVENUE 23-25 Actual/26 Budget/27 Prelim $30 MM The Public Works Family has a diverse revenue portfolio, led by intergovernmental revenues, $24.9 MM primarily grants. Variability in this category reflects $25 MM grant funding tied to capital projects, including a significant increase associated with the Rural $20MM Broadband Project. $15 MM $ 12.6 MM Taxes are another major revenue source, with the Road Fund partially supported by a propertytax $10 M M levy. $5MM 4.8 MM Goods and Services revenue primarily consists of $1.2 MM Equipment Rental and Revolving Fund $0.4 MM L$0.31MM $0.1 MM assessments and County Road and Water $OMM .-I - Mitigation cost recoveries. INTERGOV TAXES GOODS& MISC/ PERMITS TRANSFER SURPLUS SERVICE INTEREST IN Investment interest in most Public Works funds ■2023 02024 02025 ■2026 02027 continues to be allocated directly to those funds, consistent with the prior decision to retain interest earnings in funds with budgeted FTEs. 8 10/22/2026 2027 Public Works Family Expense Budget: $49. 3 MM Internal Transfers Out: $119 K Total: $49.4 MM AIRPORT PUBLIC FACILITIES 3% 7% WORKSPUBLIC AR ROAD $ 16.4 MM $ 18.5 MM FLOOD 7% ROAD BROADBAND $ 18.1 MM $ 15.5 MM 37% ERR $ 3.7 MM $ 4.0 MM FLOOD $ 3.6 MM $ 3.6 MM ERR PUBLIC FACILITIES $ 5.1 MM $ 3.4 MM 8% WATER MITIGATION $ 0.9 MM $ 1.5 MM AIRPORT $ 1.9 MM $ 1.4 MM PARKS $ 0.7 MM $ 0.9 MM SPRINGWOOD $ 0.2 MM $ 0.6 MM Grand Total $ 50.7 MM $ 49.3 MM BROADBAND 32% 9 10/22/2026 2027 Public Works Family Expense Budget: $49. 3 MM Internal Transfers Out: $119 K Total: $49.4 MM PUBLIC WORKS FAMILY SILOS- GROWTH 2026:$50.5 MM/2027$49.3 MM Expense Trends $24.5 MM $23.0 MM $19.0 MM $18.4MM Public Works Family expenses are projected to decrease from $50.5MM in 2026 to $49.4MM in 2027, driven primarily by reductions in capital $7.1 MM $7.9 MM and operating expenditures, partially offset by immd L increased personnel costs. CAPITAL OPERATING PERSONNEL This is the second year the Broadband Fund ■ 2026 BUDGET o 2027 PRELIMINARY has been included directly in the Public Works portfolio, with its capital project activity SELECT PUBLIC WORKS FAMILY FUNDS - GROWTH contributing to the elevated capital 2026:$48.8 MM/2027$46.4 MM expenditures in 2026 and subsequently 2027. $18.5MM $18.1MM $15.5 MM The decrease in Broadband reflects the completion of two broadband projects. The $5.1MM third broadband project, BEAD, is anticipated $3.7MM $4.OMM $3.6MM $3.6MM $3.5 $1.9 M M $1.3 M M MM to commence in 2027, with heavier 6. F—T--A NM= "itt, F------ construction anticipated in 2028. Public Facilities reflects budgeting to a more COUNTY ROAD COUNTY ERR FLOOD PUBLIC AIRPORT restrictive value aligned with planned work. BROADBAND CONTROL FACILITIES 10 10/22/2026 2027 PUBLIC WORKS Family Personnel Expense Budget: $7 . 9 MM 2026 Budget: $7. 1 MM ❑2026 BUDGET [m 2627 PRELIMINARY COUNTY ROAD $ 6.1 MM Parent Fund Distribution $ 5.6 MM Tota156 FTE 46 EQUIPMENT RENTAL & $ 0.8 MM REVOLVING $ 0.8 MM FLOOD CONTROL $ 0.3 MM $ 0.3 MM 5 1 1 1.75 1.25 - PUBLIC FACILITIES $0.3 MM Economic Airport Water Flood ER&R Road $ 0.0 MM Dev Mitigation AIRPORT $ 0.2 MM Public Works allocates personnel costs across funds and functions based on $ 0.2 MM time distribution, allowing staff to support changing operational needs while aligning expenses with the work performed. The comparison to the left illustrates the anticipated shift in personnel cost distribution between 2026 and 2027, while WATER MITIGATION $ 0.1 MM the blue graphic above shows the primary allocation of FTEs across funds. The $ 0.1 MM County Road Fund supports the largest share of this flexible workforce. 11 10/22/2026 FUNDS PUBLIC WORKS / DEPARTMENTS SILOED RELATIVE GROWTH COMPARISON Public Works administers nine funds on behalf of the Board of County DEPARTMENT/OFFICE EXPENSE COMPARISON Commissioners, including: Airport, Flood Control, Public Facilities, Parks, Water Mitigation, Equipment Rental and Revolving, County Roads, Springwood and County Broadband. The Kittitas County Department of Public Works consists of AIRPORT a diverse staff of engineers, surveyors, construction specialists, equipment ROAD operators, road maintenance crews, mechanics and professional support staff FLOOD operating across 2,200 square miles of Central Washington. The Public Works PUBLIC FACILITIES Department is responsible for the planning, engineering, design, construction, SPRINGWOOD operation and maintenance of approximately 500 miles of county roadways, 260 PARK bridges, flood control and water mitigation. Department staff also coordinates WATER MITIGATION new development transportation infrastructure design and construction. EQUIPMENT RENTAL & REVOLVING 12 10/22/2026 AIRPORT Program Description: Public Works administers Fund 101 (Bowers Field Airport) on behalf of the Board of County Commissioners. Bowers Field (ELN) is a General Aviation (GA) airport and airport operations are overseen by the Federal Aviation Administration (FAA). Bowers Field has one active runway(11/29) which is 4,300 feet in length. There is also one closed runway due to poor surface condition. Eighty acres of airport property has been zoned for an industrial park/commercial development. Agricultural grazing leases are also used on the airport property. Revenue Sources: Transfers from the General Fund; Land, Agriculture and Building Leases; Hangar leases; Tie-downs rentals; Grants from both the FAA and Washington State Department of Transportation (WSDOT)Aviation Division. Staff Summary: The Public Works Director serves as Airport Manager. A full-time maintenance technician is assigned to the airport and airport operations are supported by Public Works. Functions: Maintenance and Operations: Administrative: • Snow plowing 0 Prepare and administer department budget including capital • Grounds mowing improvements • Grounds maintenance 0 Liaison with Federal and State agencies to implement projects • Runway clearing 0 Manage new and renewing leases • Runway maintenance 0 Prepares applications for grants for State and Federal funding • Grant Management • Manage consultant and contractor contracts for capital improvements Notes for 2027: A property transfer is expected to be complete in 2026, resulting in building ownership by the County. This building will be available to lease and revenue generated will be directed to the Airport Fund. An FAA Grant is anticipated for design of the parallel taxiway, construction is anticipated in a future year. A revision to the binding site plan will allow for additional hangar lots to be available for lease. 13 10/22/2026 EXPENSE AIRPORT: $ 1 , 351 , 909 2025 Actual: $562,565 / 2026 Budget: $1 ,869,239 $ 1.5MM Personnel 163,378 221,492 197,218 Salaries 113,484 152,254 131,779 Benefits 49,894 69,238 65,439 Supplies 17,218 22,750 32,675 944,687 $ 1.0 MM Operating Supplies 11,139 13,750 19,525 Fuel 6,079 7,500 8,750 Minor Equipment - 1,500 4,400 Services 238,619 515,234 944,687 $ 0.5 MM Professional Service 130,614 353,836 738,139 Communications 902 750 730 197,218 Intergov 16,416 18,000 18,073 1 5,000 Leases 62,787 65,268 38,360 i-fl 32,675 42,329 Utilities 16,776 19,380 30,250 $ 0.0 MM �� Repairs 8,995 55,650 80,150 Personnel Supplies Services Insurance Capital Miscellaneous 2,129 2,350 3,600 Insurance 24,070 30,653 42,329 ■ 2025 ACTUAL ❑ 2026 BUDGET El2027 PRELIMINARY Prop/Liab Insurance 24,070 30,653 42,329 Capital 119,280 1,079,110 135,000 Capital Construction 119,280 1,079,110 135,000 AIRPORT OPERATOR/MECHANIC 1.00 Grand Total 562,565 1,869,239 1,351,909 Total 1.00 REQUEST: 0 Subsidy$393K Funding Capital And Operational Costs 14 10/22/2026 REVENUE AIRPORT: $958, 684 Budgeted 2026: $1 ,556,522 Airport revenues are primarily generated through grants tied to REVENUE 23-25 Actual/26 Budget/27 Prelim capital improvement projects and lease revenue, which is reported $ 1.4 MM in the Miscellaneous category. $ 1.2 MM 23-25 Actual/26 Budget 127 Prelim $1.0 MM $2.5 MM Current Balance $0.8 MM $2.0MM $1.5 MM $0.6 MM $1.5 MM $0.6 MM $1.0 MM $0.4 MM $0.3 MM $0.5 MM LM $0.0 MM $0.2 MM 2023 2024 2025 2026 _. $OK $OK Expense Revenue Balance $0.0 MM INTERGOV/ MISC/ SURPLUS/ TRANSFER GRANTS FED& INTEREST AND OTHER *2023-2025 Transfers in totaling $1 .9 MM — No subsidy in 2026 / ST LEASE Requested in 2027 ($393) 02023 ■2024 02025 02026 02027 15 10/22/2026 COUNTY ROAD Program Description: Public Works administers Fund 106 (County Road) on behalf of the Board of County Commissioners. The County Road division of the Public Works Department provides for the planning, engineering and construction of improvements to the County Road network. This includes the maintenance of over 500 miles of roadway and associated right-of-way, 112 federally inventoried bridges and 148 short-span or other structures. In addition to maintenance the County Road division seeks grant funding and develops capital improvement projects. The County Roads division is also responsible for administration, accounting and right-of-way management to support these primary activities. Revenue Sources: Road levy; Motor Vehicle Fuel Tax; Permit Fees; Grant Opportunities. Staff Summary: Public Works employ over fifty specialists to accomplish the needed maintenance and capital improvements including: Engineers, technicians, surveyors, heavy equipment operators, flaggers, mechanics, floodplain experts, traffic technicians, managers, accountants, planners and office assistants. Notes for 2027:Focus has been placed on maintenance of existing infrastructure. The capital improvement plan identifies anticipated grant funding to support bridge and road reconstruction. In addition to capital projects, regular maintenance of bridges and roads are accounted for in the budget including chip seal program. (Continued next page) 16 10/22/2026 COUNTY ROAD Functions: Maintenance and Operations: Administrative: • Snow plowing 0 Prepare and administer department budget including capital improvements • Repair damaged roadways 0 Liaison with Federal and State agencies to implement projects • Flood damage response 0 Identify grant funding sources • Clear drainage pipes 0 Prepare and submit grant applications for State and Federal funding • Emergency response 0 Administration of State and Federal grants Road Preservation: • Liaison with utility companies for private utility construction in Right-of-way • Crack sealing and patching Engineering: • Chip sealing program 0 Transportation Planning • Pavement work 0 Develop Capital Improvement Plan Traffic Services: • Manage construction contracting • Manage sign inventory Bridges: • Striping program Manage bridge inventory • Regular inspections Development: • Repair • Review engineering and survey requirements for land development • Ensure compliance with local regulations • Field inspection and approval for public and private improvements within the County Right-of-way • Permit issuance 17 10/22/2026 ROAD : $ 18,462, 933 2025 Actual: $16,297,313 / 2026 Budget: $16,417,456 2025 ACTUAL 2026 BUDGET 2027 PRELIMINARY Personnel 5,183,227 5,582,909 6,068,372 $ g MM Salaries 3,630,962 3,938,097 4,115,647 Benefits 1,552,265 1,644,812 1,952,725 Supplies 2,051,936 3,664,461 3,068,018 6,068,372 Operating Supplies 2,019,504 3,610,159 2,990,968 $ 6 MM Fuel 666 676 900 2,898 Minor Equipment 31,766 53,626 76,150 Services 5,092,210 5,685,649 5,382,898 Professional Service 1,689,997 2,122,403 1,653,900 $4 MM 3,680,694 Communications 12,788 15,779 13,850 3,068,01 I ntergov 489 1,030 780 Leases/ Rent 3,333,805 3,418,371 3,594,661 $ 2 MM Utilities 7,118 9,516 10,569 Repairs 3,547 17,764 9,615 Miscellaneous 43,183 99,786 97,823 262,951 Capital Lease 1,283 1,000 1,700 $ 0 MM r Insurance 201,556 204,363 262,951 Personnel Supplies Services Insurance Capital Prop/Liab Insurance 201,556 204,363 262,951 Capital 3,768,384 1,280,074 3,680,694 ■ 2025 ACTUAL ❑ 2026 BUDGET ❑ 2027 PRELIMINARY Capital Improvements 3,768,384 1,280,074 3,680,694 Grand Total 16,297,313 16,417,456 18,462,933 18 10/22/2026 REVENUE ROAD : $ 17Y2451796 Budgeted 2026: $16,039,389 Road Fund revenues are primarily driven by two categories: REVENUE 23-25 Actual/26 Budget/27 Prelim intergovernmental revenue - largely grant funding tied to capital $12 MM projects, and taxes, predominantly property taxes. Grant revenues fluctuate with project activity, as associated revenues generally correspond to capital expenditures. The modest projected decline $10 MM 9.5 MM in tax revenue reflects the reinstatement of the road diversion and improved visibility and estimation of leasehold excise and timber excise taxes. 23-25 Actual/26 Budget/27 Prelim $8 MM $26 MM 6.1 MM $6MM $22 MM Current Balance $18 MM $11.2 MM $4MM $14MM $10MM . $2MM $6MM 1.0 MM 2023 2024 2025 2026 2027 $0.4 M M $0.2 M 0.0 MM $OMM EEW==W..' a Expense Revenue Balance TAXES/ INTERGOV/ GOODS/ MISC/INTEREST PERMITS/ TRANSFER IN PROPERTY/ GRANTS FED&ST SERVICE LICENSE *2023-2025 Transfers in totaling $4 MM — REET II Transfers EXCISE /ENTITLEMENTS no longer budgeted for in 2026 or 2027 02023 02024 02025 02026 02027 19 10/22/2026 FLOOD Program Description: Public Works administers Fund 107 (Flood Control) on behalf of the Board of County Commissioners. The Flood Control fund provides the financial resources needed to target flood damage reduction through flood warning and emergency response, floodplain management, property acquisition, basin-wide flood planning, and the identification, engineering and construction of capital projects to address flooding issues throughout the Flood Control Zone District. Revenue Sources: Property Tax; State Grants; Permit Fees Staff Summary: The district is staffed by Public Works employees. Currently, the Flood Control Zone District Administrator is the Public Works Director. The Water Resource Manager handles day-to-day operations and capital program management. The Water Resources Specialist provides landowner technical assistance and handles floodplain permitting and the Hydrology and Hydraulics Engineer in Training provides technical support and manages the stream gauging program. Functions: Maintenance and Operations: Floodplain Management: • Public outreach and education 0 National Flood Insurance Program • Inspection and maintenance of flood control structures 0 Community Rating System • Flood damage inspections 0 Permit issuance • Maintain stream gaging infrastructure Flood Control Zone District: • Increased authority to fight flooding that occurs outside the right-of-way • 6-Year Capital Improvement Plan Implementation Notes for 2027:Capital expense anticipated for construction of the Whiskey Creek Siphon; design and permitting for the Lower Kittitas Reach Floodplain Connection Project (grant funded); and design, and permitting of the Whiskey Creek reroute project to support flood control and fish passage improvements. Fund reserve will be needed for critical facility compliance efforts currently expected to be constructed after 2027. 20 10/22/2026 EXPENSE FLOOD : $39643, 155 2025 Actual: $2,306,342 / 2026 Budget: $3,551 ,302 PRELIMINARYTYPE 2025 ACTUAL 2026 BUDGET 2027 Personnel 276,630 313,054 313,323 $ 3 MM Salaries 203,338 233,711 227,725 Benefits 73,292 79,343 85,598 Supplies 1,874 6,924 7,173 1,986,330 Operating Supplies 1,846 3,064 3,263 $ 2 MM Fuel 28 200 250 Minor Equipment - 3,660 3,660 1,311,500 Services 1,956,184 825,313 1,986,330 Professional Service 1,892,056 787,290 1,915,299 $ 1 MM Communications 4,104 3,018 3,975 I ntergov 689 4,450 800 313,323 Leases 57,840 20,105 56,506 Utilities - 1,200 1,200 $ OMM 7,173 24,829 Repairs 268 3,400 3,400 Personnel Supplies Services Insurance Capital Miscellaneous 1,227 5,850 5,150 Insurance 6,168 19,120 24,829 ■ 2025ACTUAL ■ 2026 BUDGET ❑ 2027 PRELIMINARY Prop/Liab Insurance 6,168 19,120 24,829 Capital 65,486 2,386,891 1,311,500 Land Purchase - 400,391 50,000 POSITION Capital Improvements 65,486 1,986,500 1,261,500 WATER RESOURCE MANAGER 1.00 Grand Total 2,306,342 3,551,302 3,643,155 HYDROLOGY/HYDRAULICS EIT .25 Total 1.25 21 10/22/2026 REVENUE FLOOD : $217879805 Budgeted 2026: $2,062,861 Flood Control revenues are primarily supported by a REVENUE 23-25 Actual/26 Budget/27 Prelim property tax levy and supplemented by intergovernmental $ 1.8 MM revenues consisting largely of capital grants. The 2026 and $1.5 MM 2027 budgets reflect a planned drawdown of accumulated balances to support project expenditures, consistent with $ 1.4 MM the fund's project-driven nature. $1.0 MM 23-25 Actual/26 Budget/27 Prelim $ 1.1 MM $5.0 MM Current Balance � $4.3 MM $4.0MM $0.7MM $3.0 MM $2.0 MM $0.4 MM $0.2 MM $1.OMM $16K $ 11K $0.0 MM d�_WLP $0.0 MM INTERGOV/ TAXES MISC/ PERMITS/ GOODS/ 2023 2024 2025 2026 2027 GRANTS FED& INTEREST LICENSE SERVICE Expense Revenue Balance ST/ ENTITLEMENTS 0 2023 0 2024 0 2025 0 2026 0 2027 22 10/22/2026 PUBLIC FACILITIES Program Description: Public Works administers Fund 108 (Public Facilities) on behalf of the Board of County Commissioners. Kittitas County qualifies as a distressed county under Section 5 of RCW 82.14.370. Qualification as a distressed county allows the County to receive monies from the State Department of Revenue as a percentage of all taxable sales in Kittitas County until December 31, 2054. The Public Facilities Fund was established in April 1998. In accordance with RCW 82.14.370, monies received must be used for the purpose of financing public facilities that facilitate serving economic development purposes in rural counties and finance personnel in economic development offices. Various agencies throughout Kittitas County are invited each year to submit public facility projects for consideration for funding through the Public Facilities Fund. The Conference of Governments (COG) is responsible for reviewing, rating and prioritizing the projects. The list of projects that COG recommends funding is then presented to the Kittitas County Board of County Commissioners for any modifications and final approval. Funding is allocated in the budget year to approve projects submitted. This process will continue for an annual basis until the state funding ends in 2032 as described in Ordinance No. 2020-005. Revenue Sources: Kittitas County receives 0.09 percent of the state's share of Kittitas Counties' sales and use tax that provides revenue to the Fund. Staff Summary: Public Works provides staff to administer Fund 108, includes Finance and Administrative staff. Functions: Administrative: • Prepare and administer budget including capital projects • Liaison with local agencies to implement projects • Staff liaison for Conference of Governments • Provides technical support Notes for 2027: Funding is budgeted to support utility infrastructure and economic development projects funded through the allocated sales and use tax. To support continued investment of economic development in Kittitas County and respective municipalities an Executive Director position was established in 2026. The 2027 budget includes financial resources to support economic development. This includes budgeted funds for the Executive Director position with the Kittitas County Economic Development Partnership as well as the funding to the Kittitas County Chamber of Commerce for support of their annual work program with economic development. 23 10/22/2026 EXPENSE PUBLIC FACILITIES: $3,472, 080 2025 Actual: $1 ,188,827 / 2026 Budget: $5,133,910 $ 6MM PRELIMINARY.[jg' mok-- 2025 ACTUAL 2026 Personnel 17,933 . 20,296 252,003 $ 4 MM ,0 2,918 Salaries 13,201 15,000 185,733 Benefits 4,732 5,296 66,270 $ 2 MM Supplies - 150 1,150 252,003 Operating Supplies - 150 1,150 $ 0MM 1,150 6,898 119,111 ^ Services 1,038,692 4,989,862 3,092,918 Personnel Supplies Services Insurance Transfers Professional Service 1,038,515 4,989,762 3,069,913 Communications 1 100 725 ■ 2025 ACTUAL ❑ 2026 BUDGET ❑ 2027 PRELIMINARY Travel - - 5,180 Leases - - 12,000 ECONOMIC DEVELOPMENT BUDGET Miscellaneous 176 - 5,100 jr,� PRELIMINARY Insurance 14,052 5,306 6,898 Personnel 222,426 Prop/Liab Insurance 14,052 5,306 6,898 Salaries 164,800 Transfers 118,150 118,296 119,111 Benefits 57,626 Transfer 118,150 118,296 119,111 Supplies 1,000 Grand Total 1,188,827 5,133,910 3,472,080 Operating Supplies 1,000 Services 76,574 Professional Service 53,949 POSITION Communications 625 ECONOMIC DEVELOPMENT DIRECTOR 1.00 Travel 5,000 Leases 12,000 Total 1.00 Miscellaneous 5,000 Grand Total 300,000 *Included in total budget left 24 10/22/2026 REVENUE PUBLIC FACILITIES: $2, 031 , 588 Adopted 2026: $1 ,841 ,442 The Public Facilities Fund is primarily supported by the 0.09% Rural REVENUE 23-25 Actual/26 Budget/27 Prelim Counties Distressed Sales Tax, supports eligible public facilities and economic development purposes, including infrastructure, workforce $2.5 MM housing facilities, and economic development personnel. The projected deficits in 2026, and to a lesser extent in 2027, reflect a $2.0 MM planned drawdown of accumulated reserves. Budgeting conventions are $2.0 MM also shifting toward more conservative estimates in alignment with Conference of Governments expected work plan. $1.5 MM 23-25 Actual/26 Budget/27 Prelim $8 MM Current Balance $1.0 MM $6.2 MM $6MM $4MM $0.5MM $2MM $OK J $0.0 MM$0 MMIM L TAXES MISC/INTEREST 2023 2024 2025 2026 2027 ■2023 0 2024 0 2025 0 2026 0 2027 Expense Revenue —Balance 25 10/22/2026 SPRINGWOOD Program Description: Public Works administers Fund 111 (Springwood) on behalf of the Board of County Commissioners. The Trust for Public Land, a non-profit organization, acquired Springwood Ranch. In 2023, the Washington State Legislature appropriated funds in the 2023-2025 Budget Proviso for the acquisition of Springwood Ranch for public purposes pursuant to Section 3073 of Engrossed Substitute Senate Bill 5200. The State Legislature provided funding for this property in exchange for conveying the property to Kittitas County, the Department of Fish and Wildlife, the Yakima Nation, and the Kittitas Reclamation District for public benefit purposes. The legislation stipulated that the portion of Springwood Ranch transferred to the County for its ownership and management will provide benefits associated with maintaining existing agricultural uses or future uses allowed under current zoning or that provide a public use or benefit. Revenue Sources: Land lease; Transfers from the General Fund; Grants from the State of Washington. Staff Summary: Public Works provides staff to administer Fund 111. This includes monitoring the land lease, working with adjacent property owners, coordinating grant efforts with the State. Functions: Administration: Maintenance and Operations: • Financial management and administration Coordination with adjacent property owners • Asset management • Lease agreement management Notes for 2027: Current tenant lease will expire in Quarter 1, anticipating entering into new long term lease. 26 10/22/2026 SPRI NGWOOD : $586, 969 2025 Actual: $292,756 / 2026 Budget: $200,000 2025 ACTUAL 2026 BUDGET ' 2027 PRELIMINARY; $ 750 K Personnel 10,565 - 36,771 Salaries 7,016 - 26,365 Benefits 3,549 - 10,406 540,198 Supplies 2,637 - 10,000 Operating Supplies 2,637 - 10,000 $ 500 K Services 279,554 200,000 540,198 Professional Service 211,261 200,000 459,678 Intergov 56,517 - 60,220 Leases 8,379 - 15,000 $ 250 K Utilities 3,397 - 5,300 Grand Total 292,756 200,000 586,969 36,771 10,000 REVENUE 25 Actual/26 Budget/27 Prelim $ 0 K n ^ lk- $400 K $380 K Personnel Supplies Services $300 K ❑ 2025 ACTUAL ■ 2026 BUDGET ❑ 2027 PRELIMINARY $200 K $200 K $100 KI a Springwood is a relatively new fund/project, and while $7K the County evaluates its long-term direction, it requires $o K approximately $200,000 in annual General Fund support. INTERGOV TRANSFER MISC LEASE Additional revenue consists of minimal lease income 02025 02026 02027 and a Department of Ecology Stewardship Grant in 2027. 27 10/22/2026 PARKS Program Description: Public Works administers Fund 113 (Park and Recreation/Tourism) on behalf of the Board of County Commissioners. The annual capital plan and six-year capital facility plan are considered for projects supporting Parks. Public Works also provides maintenance of the Vantage Boat Launch restrooms along with management activities for Gladmar and Ryan Thompson Parks. General Fund provides the necessary maintenance funding from Fund 113. Real Estate Excise Tax II has been a source of funding for Parks, with the emphasis for this funding the implementation of Capital projects. Revenue Sources: Transfers from General Fund; Real Estate Excise Tax II (REET II) Staff Summary: Public Works provides staff to administer Fund 113. This includes implementation of identified projects. Functions: Maintenance and Operations: Administrative: • Vantage Boat Launch restrooms Provide administrative support • Gladmar Park • Ryan Thompson Park Notes for 2027: The proposed budget accounts for maintenance activities of existing facilities as well as Capital improvements. Funding of the projects and maintenance is anticipated through existing fund balance. Capital is focused on improving access to existing property as well as amenities such as bathroom facilities. 28 10/22/2026 PARKS: $870, 281 EXPENSE2025 Actual: $17,002 / 2026 Budget: $724,554 $ 900 K 833,534 Personnel 4,416 31,855 23,967 Salaries 3,122 23,000 17,102 Benefits 1,294 8,855 6,865 $ 600 K Supplies 770 2,136 4,200 Operating Supplies 770 2,136 4,200 Services 11,139 681,913 833,534 Professional Service 904 634,965 779,109 Intergov 77 100 100 $ 300 K Leases 2,246 18,488 19,525 Utilities 6,330 3,060 9,600 Repairs 1,582 25,000 25,000 Miscellaneous - 300 200 23,967 4,200 280 8,300 Insurance 677 397 280 $ 0 K --F--h T Prop/Liab Insurance 677 397 280 Capital - 8,253 8,300 Personnel Supplies Services Insurance Capital Capital Improvements - 8,253 8,300 2025 ACTUAL ❑ 2026 BUDGET ❑ 2027 PRELIMINARY Grand Total 17,002 724,554 870,281 29 10/22/2026 REVENUE PARKS $ 1 , 102 Budgeted 2026: $1 ,750,414 The Recreation Fund currently lacks a dependable, dedicated revenue source REVENUE 23-25 Actual/26 Budget/27 Prelim and relies primarily on transfers to support its activities. In both 2025 and 2026, REET II funds were transferred to support the fund; the 2026 allocation $2.0 MM was subsequently reduced by$1 MM following budget adoption and the redeployment of funds. The 2027 expenditure budget reflects a planned $1.8 MM drawdown of accumulated fund balance to support the existing project portfolio. Historically, expenditures have remained relatively low, consistent with the fund's limited recurring revenue sources. $1.5 MM $1.3 MM Boxed area reflects a 23-25 Actual/26 Budget/27 Prelim reduced transfer from $2.5 MM Current Balance $1.0 MM adopted budget $1.4 M M $2.0MM $0.8 MM $ 1.5 MM $ 1.0 M M $0.5 MM $0.5 MM $0.3 MM $0.0 M M $OK $1 K 2023 2024 2025 2026 2027 $0.0 M M TRANSFERS MISC/INTEREST Expense Revenue Balance *Boxed area reflects a reduced transfer from adopted budget 02023 02024 02025 02026 02027 30 10/22/2026 WATER MITIGATION Program Description: Public Works administers Fund 403 (Water Mitigation) on behalf of the Board of County Commissioners. Two programs are included: water mitigation and water metering. These two programs protect Kittitas County's water supply, safeguarding groundwater users and ensuring an adequate water supply for future needs. Revenue Sources: Water Mitigation Fees; Water Metering Fees; Grant Sources. Staff Summary: The Water Resource Manager develops water supply and banking policies and programs and manages water right acquisitions. The Water Resources Specialist reviews and issues mitigation certificates, manages applications to Ecology for water use changes, and oversees the metering program. Functions: Water Mitigation: Water Metering: • Administer water right portfolio through 0 Monitor groundwater use to ensure water bank compliance acquisitions and allocations 0 Water meter asset management • Water Budget Neutral Determinations and 0 Education and outreach development review • Drought response • Participation in the Yakima Basin Integrated Water Resource Plan • Education and outreach Notes for 2027: Programming for purchase of supported water right acquisition to support drought response. Manage permit applications to the Washington State Department of Ecology to support continuation of the "over-the-counter" (OTC) mitigation certificate program. Engagement through Yakima Basin Integrated Water Resource Plan to support domestic and municipal water uses. 31 10/22/2026 EXPENSE WATER MITIGATION : $ 1 , 522, 209 2025 Actual: $267,448 / 2026 Budget: $944,966 $ 1.5 M M 2025 ACTUAL 2026 BUDGET 2027 PRELIMINARY Personnel 131,683 136,417 148,643 1,093,670 Salaries 104,141 110,290 116,294 Benefits 27,542 26,127 32,349 $ 1.0 MM Supplies 51,399 113,500 94,686 Operating Supplies 1,971 1,850 1,800 Fuel 1,043 1,322 1,000 Minor Equipment 48,385 110,328 91,886 $ 0.5 M M Services 82,617 193,240 182,858 Professional Service 52,301 145,248 135,749 182,858 Communications 1,132 1,550 1,700 148,643 94,68E Intergov - 100 100 1&] � I 2,352 Leases 67 500 515 $ 0.0 M M I Repairs 7,924 14,206 15,244 Personnel Supplies Services Insurance Capital Miscellaneous 21,193 31,636 29,550 Insurance 1,749 1,809 2,352 ■ 2025 ACTUAL ■ 2026 BUDGET ❑ 2027 PRELIMINARY Prop/Liab Insurance 1,749 1,809 2,352 POSITION ORM Capital - 500,000 - Water Right - 500,000 1,093,670 WATER RESOURCES SPECIALIST 1.00 Grand Total 267,448 944,966 1,522,209 HYDROLOGY/HYDRAULICS EIT .75 Total 1.75 32 10/22/2026 REVENUE WATER MITIGATION : $ 1 , 764, 046 Budget 2026: $609,693 REVENUE 23-25 Actual/26 Budget/27 Prelim The Water Mitigation Fund operates as a water bank, generating revenue $1 MM primarily through mitigation fees and the allocation of water rights for eligible groundwater uses. Revenue fluctuates with water-right transactions and $1.2 MM demand for mitigation services. The significant increase in 2025 is associated 7 KA RA with a water-right transaction associated with a Department of Ecology purchase. $1MM 23-25 Actual/26 Budget/27 Prelim $2.0 MM Current Balance $1 MM $1.5 MM $ 1.5 MM � $0 MM $ 1.0MM , 0.2MM $0.3MM $0 MM $0.5MM - $0.1 MM $OMM � � $0.0 MM GOODS/ PERMITS/ MISC/ INTERGOV/ST 2023 2024 2025 2026 2027 SERVICE LICENSE INTEREST GRANTS � Expense Revenue Balance 0 2023 0 2024 0 2025 0 2026 0 2027 33 10/22/2026 EQUIPMENT RENTAL & REVOLVING Program Description: Public Works administers Fund 501 (Equipment Rental and Revolving) in compliance with RCW 36.33A.030. The Equipment Rental and Revolving Fund is to manage the purchase, maintenance, and repair of equipment and inventory used in fulfilling the objectives of the Public Works Department. Established and adopted rental rates are applied to equipment used. Revenue Sources: Rental rates for equipment used; Sale of county owned material to the County Road Fund. Staff Summary: The County Engineer, with assistance from the Fleet Manager and Public Works Director manage the fund. Fleet is maintained by four mechanics and the fleet manager. Functions: Administration: Mechanic Shop: • Financial management and administration 0 Maintain the fleet of vehicles • Asset management 0 Maintain the County mechanical shop facilities • Develop rental rates • Inventory management Pits and Quarries: Central Stores: Manage the pits and stockpiles owned by Kittitas County Roads • Maintain supply of pipe and guardrail used on County roads • Maintain inventory for fleet maintenance and repairs Notes for 2027: Equipment purchases are proposed to allow for replacement of existing equipment. 34 10/22/2026 EXPENSE EQUIPMENT RENTAL & REVOLVING ( ERR) : $3, 992,458 2025 Actual: $3,441 ,235 / 2026 Budget: $3,737,052 2025 ACTUAL 2026 BUDGET 2027 A. Personnel 630,526 775,674 828,673 1.5 MM Salaries 447,700 559,238 573,878 1,252,500 Benefits 182,826 216,436 254,795 Supplies 610,130 872,676 848,449 Operating Supplies 288,223 412,018 397,050 1.0 MM 848,449 Fuel 302,649 426,557 427,576 828,673 Inventory 9,055 4,736.00 4,050 686,619 Minor Equipment 10,203 29,365 19,773 Services 534,969 651,580 686,619 0.5 Mi 371,76 Professional Service 112,225 133,170 127,452 Communications 2,192 2,584 2,549 I ntergov 6,978 5,130 7,269 4,454 Leases 98,892 149,242 126,349 0.0 MM Utilities 82,576 80,280 88,562 g g �, c, Repairs 209,182 253,898 304,320 0��� Q.`Z J`G a�L Miscellaneous 22,924 27,276 30,118 Insurance 145,413 290,122 371,763 Prop/Liab Insurance 145,413 290,122 371,763 ■ 2025 ACTUAL ■ 2026 BUDGET ❑ 2027 PRELIMINARY Capital 1,283,984 1,147,000 1,252,500 Capital Equipment 1,283,984 1,147,000 1,252.500 Transfers 236,213 4,454 4,454 Transfer 236,213 4,454 4,454 Grand Total 3,441,235 3,741,506 3,992,458 FLEET MANAGER 1.00 MECHANIC 4.00 • Capital outlay is presented on a cash basis, reflecting expenditures in the year Total 5.00 incurred rather than amortized over the asset's useful life 35 10/22/2026 REVENUE ERR: $3, 753, 1 19 Adopted 2026: $3,604,080 / / The Equipment Rental and Revolving Fund operates as an internal service fund, REVENUE 23-25 Actual 26 Budget 27 Prelim recovering costs through rental rates for equipment use and charges for $5 MM supplies consumed by participating funds (Primarily Road). This approach pools resources, distributes costs to the funds benefiting from them, and $4 MM supports the eventual replacement of equipment. The analysis below reflects $3.5 MM full cash outlays rather than depreciation, providing a clearer view of actual $4 MM expenditures and the fund's operating and replacement-funding demands. $3MM $3MM 23-25 Actual/26 Budget/27 Prelim $8 MM $2MM Current Balance $6MM $5.9MM $2MM $4MM $1MM ' $2MM $1MM $0.1 M M $0.2 M M d d L $OMM F—Ia — ' $0 MM GOODS/SERVICES/ SURPLUS MISC/INTEREST 2023 2024 2025 2026 2027 RENTAL RATES � Expense Revenue —Balance 0 2023 0 2024 ■2025 ■2026 0 2027 PUBLIC WORKS CAPITAL PROJECTS 37 10/22/2026 COUNTY BROADBAND Program Description: Public Works administers Fund 305 (County Broadband) on behalf of the Board of County Commissioners. Broadband development utilizes grant funding and County funds to expand the availability of broadband (high-speed internet) service to residents within the County. Two grant awards have previously been awarded and received with construction underway. Additional funding is anticipated through the BEAD program. Project funding to expand broadband service in the County is available through the Public Works Board (PWB) and Washington State Broadband Office (WSBO). Construction, maintenance, and broadband service are through private providers. Revenue Sources: Grants from the State Public Works Board, Washington State Broadband Office 2027 Work Plan Revenue Local Match Expense and Federal sources; General fund transfers. Staff Summary: Project 1 (PWB) $835 K $96 K $961 K Public Works provides staff to administer Fund 305. Project 2 (WSBO) $3.78 MM $290 K $4.11 MM Functions: Administrative: Project 3 (BEAD) $10.45 MM $10.45 MM • Prepare and administer department budget including capital improvements Consultant* • Liaison with Federal and State agencies to implement projects $66 K • Manage contracts and grant management Total • Manage consultant and contractor contracts for capital improvements $15.07 M M $452 K $15.52 M M *Consultant costs covered under BEAD reimbursable - $180 K Notes for 2027:Construction activities for the first two awarded project areas are anticipated to be complete in 2027. The County has been awarded funds for development of broadband services through the Broadband Equity, Access, and Deployment (BEAD) program. BEAD includes seven project areas and will consist of a combination of wireless and fiber technology. Design and permitting are anticipated in 2027. 38 10/22/2026 COUNTYROAD Total Match Local ANNUAL CONSTRUCTION PROGRAM Remaining Design Construction Grant Dollars) Funding Source CAPITAL IMPROVEMENT PROJECT NAME 2026 Program Match Hungry Junction Road Widening /Faust Rd $3,835,789 $100,000 $550,000 Rural Arterial Program 1 $585000 $65 Culvert Replacement , ,000 10% State Funding TOTAL: $650,000 Corridor Improvements Countywide $1,228,286 $229,286 $999,000 Highway Safety Improvement 2 $1,228,286 $0 0% State Funding TOTAL: $1,228,286 2027 Local Roads Program (Proposed) $750,000 $50,000 $700,000 Local Road Program 3 $750,000 $0 0/ State Funding TOTAL: $750,000 4 1-90 Widening (STEER 1-90) State project $1,586,541 $793,271 $634,617 $158,654 Department of Transportation 20% Local Dollars TOTAL: $793,271 5 Reecer Creek Rd over Towne Ditch (Bridge $5,410,450 $331,856 $298,670 $33,186 Rural Arterial Program #88273) 10% Local Dollars TOTAL: $331,856 6 Umptanum Rd Reconstruction $1,850,000 $240,000 $0 $240,000 Local Funding 100% Local Dollars TOTAL: $240,000 7 Teanaway Rd and Musser Creek $2,500,000 $50,000 $0 $50,000 Fed Lands Access Program Improvements (Proposed) 13.5% Federal funding TOTAL: $500,000 $17,161,066 Total Spent $3,496,573 $546,840 39 10/22/2026 403 Water Right Purchases 2027 101 Airport Projects 2027 2027 Water Right Acquisition $1.1 MM Parallel Taxiway - Design $650 K Total $1.1 MM Hanger Taxi lane Complex- Construction $60 K PUBLIC Fuel Farm $30 K Wildlife Hazard Mitigation $7 5K WORKS Other $29 K 501 ERR&R Capital Purchases 2027 Total $0.84 MM PROJECTS & Equipment Pneumatic Roller - Used $165 K 107 Flood Control Projects 2027 PURCHASES Dump Truck (x2) $682 K Repetitive Loss $100 K (Excluding County Road Other $93 K Pickups (x4) $330 K Lower Kittitas Floodp lain Reconnection $405 K Previous Slide) Flood Studie:Whiskey Mercer $23 K Total $1.27 MM Whiskey Creek at EWC Siphon $1.3 MM Whiskey Reroute for Flood Control and Fish Passage $1.3 MM Flow Conveyance Restoration -Whiskey Creek $115 K 108 Public Facilities Award Remaining Flow Conveyance Restoration - Naneum Creek $65 K Total $3.30 MM Central Washington University-CEDS Yakima/ Economic Development District $9 1< City of Kittitas South Industrial Area Lift Station Pre Design $982 K Vantage Wastewater Treatment Facility $15 K City of Cle Elum - First Street and Oakes Avenue Resurfacing Project $101 K 113 Parks and Rec Projects 2027 City of Cle Elum - Railroad Street Rehabilitation and Truck Route Project $99 K Thompson Park Restroom $70 K Fire and EMS Standard of Cover Assessment and Analysis Project $135 K Manastash Trailhead Parking $120 K Economic Development Director Kittitas County $281 K Stone Road Property Access $510 K City of Roslyn Clear Wells Repair and Replacement $1.5 MM KC Dept of Public Works Kittitas County Traffic Model $150 K Yakima River Access $75 K Shady Brook RV Park $829 K Other $31 K Total $4.10 MM Total $806 K 40 10/22/2026 Closing Summary / Takeaways What does this mean for the Board? • Public Works funds consists of a combination of restricted revenue funds, and funds utilizing General Fund for ongoing operations. • Restricted revenue funds establish a fund balance to absorb expenses greater than revenue. This is to be expected for capital expenditures. • Capital projects have the largest impact on any individual fund. Projects are dependent on grant revenues for design and construction. In the event a grant is not received, the project is not advanced. • Deferred maintenance has a long-term cost on overall infrastructure. • Personnel levels remain consistent. Increase attributed to wage rate and benefit increases. The key challenge is maintaining appropriate levels of service through maintenance and operations of capital assets which rely on grant funding for large capital outlay. Next Steps: • November 4 at 10:00 AM: Review a consolidated, high-level budget overview and key decision items remaining. • Direction & Follow-Up: Identify any additional budget adjustments (reductions or increases) or requests for information to be prepared for that meeting. • Closing Discussion: Final thoughts, feedback, and outstanding questions.