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Home My WebLink About2023-11-13-minutes-2024-budget-meeting-Created on 11/9/2023 2:12:29 PM KITTITAS COUNTY COMMISSIONERS 2024 Budget Meeting Special Meeting Monday November 13, 2023 - 10:00 AM Commissioners' Auditorium 205 West 5th Room 109 - Ellensburg 1. Call to Order 2. Citizen Comments (1 min. time limit) 3. 2024 COLA for Exempt Staff 4. 2024 Personnel Request - Treasurer's Office 5. 2024 Preliminary Budget Update 6. Other Business - No Action to be taken 7. Concluded 2023-11-13 MINUTES 1 KITTITAS COUNTY BUDGET MEETING MINUTES BOCC AUDITORIUM ROOM, 205 WEST 5TH ROOM 215 - ELLENSBURG Monday 10:00AM November 13, 2023 Board members present: Cory Wright, Brett Wachsmith, Laura Osiadacz Staff: Brian Carlson, Bryan Elliot, Zack DeHaven, Reid Burbank, Andrew Yoder, Sarah Keith, Todd Davis, Amy Cziske, Lisa Murray, Barb Demory, Patti Stacy, Elishia Harvill, Greg Zempel Upper County Senior Center: Lori Nevin, Patty Nelson, Dorothy Wagsholm 1. Call to order: 10:01 AM 2. Citizen Comments (1 min. time limit): None 3. 2024 Preliminary Budget Update Mr. Carlson updated the board on the current status of the General Fund deficit. Current General Fund deficit projection is $5.9 MM with 60% of the “Bake Sale” complete. Chairman Wright asked if the current projected General Fund deficit included a non bargained COLA percentage and if so at what percent. The percentage reflected in the update was confirmed to be 3%. 4. 2024 COLA for Exempt Staff Mr. Carlson presented a methodology for standardizing the Exempt COLA not only for the 2024 budget but also for future budgets. A multi-year averaging of percentage change of both the Western States CPI and County’s selected revenue profile. The exercise is focused on generating an equitable, sustainable, and easily repeatable process for standardizing COLA considerations. Auditor Elliot took a moment to recognize staff for the quality of analysis and highlighted that this methodology was aimed at solving this issue not just for 2024 but beyond. Prosecutor Zempel stressed the lack of steps for exempt employees and how this causes their compensation to fall behind bargained positions. Chairman Wright reminded the room that steps for Exempt staff are also 2023-11-13 MINUTES 2 currently under review and should be treated as a separate topic deserving of its own analysis. The Board announced unanimous support for a 3% COLA for the 2024 budget and would like to see an update to the analysis at the January Finance study session. 5. 2024 Personnel Request – Treasurer’s Office Removed from meeting agenda minutes prior. 6. 2024 Preliminary Budget Update (Stand Alone Topics) An addition to the “Stand Alone Topics” discussion is the Ellensburg Sleep Center. This center would address the growing concern surrounding the rise in unhoused population. Discussion was had about potential partnerships and funding sources, but the inclusion of the topic was primarily to initiate the discussion rather than start identifying solutions. Chairman Wright expressed a desire to see a complete analysis of the County’s Homelessness fund. 7. Other Business – Upper County Senior Center Ms. Nevin presented the changes that the senior center has recently undergone in staffing, programming, and evaluation. The County has contributed $19,900 annually to the Upper County Senior Center without an increase since 2009. Ms. Nevin after detailing the Center’s expenses and revenues asked that the county raise its 2024 contribution level to $40 K. The Board unanimously approved the request. 8. Concluded: 11:12 AM KITTITAS COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Brian Carlson Cory Wright, Chairman 2023-11-13 MINUTES 3 Staff Report by: Brian Carlson Budget and Finance Director Topic: COLA Modeling for Exempt and Non-Union Staff Meeting BOCC Special Meeting 2024 Budget November 13th, 2023 Summary: • This report began as an analysis for the “exempt employee advocacy” group. It provides an analysis of COLA modeling using “West” CPI averages, and comparing it to select revenues for consideration in the 2024 budget, and eventual policy for this and other employee groups. • The analysis provides a possible basis for consolidation and uniformity of countywide (i.e. all employee groups, unions, etc.) application of COLA, so as to simplify or even eliminate negotiations by establishing a formula. • On the basis of this analysis, group will request either a 4% or 5.2% COLA. Draft budget reflects 3%, equal to county’s other union contracts as established by formula. Cost for exempt proposal is between $660K and $825K, including benefits. Draft budget cost is $500K, therefore increased cost $160K to $325K, including benefits. Background: • Working group has requested an analysis based on a rolling-average of County’s regional “inflation” data (Western States CPI), and a comparison with County’s revenues to ensure sustainability. • Group asked three basic questions: o What would be the 2024 COLA if we targeted a rolling average of CPI? 5.3% if 3-year average; 4% if 5-year average o How has revenue growth compared with CPI growth? Revenues have grown at a higher rate, though 2023 will likely be less than CPI. See “analysis”, below o Does over-budget revenue from previous “good” years offset COLA requests during “bad” revenue years? Short answer: yes, both for the exempt-group and countywide Analysis: • see page 2 for background data • Budgeted Director attempted to answer the questions as posed by group. Analysis is somewhat speculative, but reflects a best effort to quantify the relevant considerations without advocating. Conclusion / Next Steps: • BOCC provide consensus direction to budget staff regarding exempt-staff COLAs in the 2024 Budget. Staff Report by: Brian Carlson Budget and Finance Director Topic: COLA Modeling for Exempt and Non-Union Staff Meeting BOCC Special Meeting 2024 Budget November 13th, 2023 Analysis: • Data below reflect 2017-2024 timeline and three-year averages. This departs somewhat from working- group’s requests, but it facilitates and improves analysis without materially changing the results. • A “zero-growth” revenue forecast from 2024 through 2026 yields the graph to the right • The COLA cost figures reflect countywide application, rather than just exempt and non- represented employees. • COLA costs assume 4% annual CPI • COLA figures are further adjusted to reflect tenure, step-costs, associated retirement benefits costs, and exclusion of elected officials • With increased revenues, County can “afford it” in the short term. But if COLAs continue while revenues don’t grow, COLAs eventually consume all of the “excess” revenue from earlier years. 0% 5% 10% 15% 2020 2021 2022 2023 EST Rates of Growth: Three-Year Rolling Average Select Revenues Western CPI -$5 $0 $5 $10 $15 2020 2021 2022 2023 EST Mi l l i o n s Revenue History ANNUAL AVERAGE (3-YR) Revenues have grown faster than CPI Revenue sample is 75% of total revenues, and includes: • Taxes • Licenses and Permits • Charges for Services • Annual revenue change is volatile, including $4MM negative change in 2023 • Three-year average is less volatile, but still reflects a downward trend $0 $2 $4 $6 $8 2020 2021 2022 2023 EST 2024 BUD 2025 2026 Mi l l i o n s Revenue Average vs. COLA Cost AVERAGE (3-YR)COLA COST 0% 5% 10% 15% 20% 25% 30% 2020 2021 2022 2023 EST 2024 BUD 2025 2026 Aggregate COLA vs Revenue Agenda – November 13th Budget Meeting •COLA •Treasurer •2024 Budget Update •“Stand-alone” Topics •Next Steps 2.4%2.8% 4.6%5.4% 0.1%0.0% -5% 0% 5% 10% 15% 2020 2021 2022 2023 2024 2025 Three-year Averages and Future Assumptions cpi avg rev avg COLA Sample COLA scenario •3-year average rates of growth of CPI and general revenues •Assumes 0% revenue growth 2024 and 2025 •Assumes 4% CPI Policy Example •“lesser of” = COLA for next budget year •Unless negative, then COLA = 0% Suggested next steps •COLA equal to other EEs for now, 3% •Continue to work the topic toward countywide policy ahead of union contract renewal in late 2024 Treasurer Personnel Request •Seeking budget approval for 2024 •Union and HR approvals and formalities pending •Reclass •Four positions changed to “accountant”; $52K increase •One position eliminated; $85K savings •Net savings $33K •Administrative Supervisor at top of scale •2024 Budget assumes 3% COLA •Seeking additional pay raise, e.g. 5% •Cost is $870/yr per additional 1%, i.e. $1,740 additional cost if 5% total raise General Fund “Bake Sale” $ 2.9 MM Reviewed/Approved 59.44% Under Review/Discussion 40.56% General Fund Status Original Deficit 7,700,257 Projects (All in)477,000 Bake Sale (2,899,220) COLA (150,000) Health Benefits (390,000) Airport Subsidy 545,000 CDS Subsidy 705,000 Current Deficit 5,988,037 DEPARTMENT Proposed Reduction 0025 FACILITIES MAINTENANCE 1,206,750 0030 SHERIFF 1,168,638 0031 TREASURER 117,750 0109 EVENT CENTER 115,000 JAIL 113,250 0026 NON-DEPARTMENTAL 105,000 0011 AUDITOR 50,000 0029 PROSECUTOR 24,650 0016 COMMISSIONERS 7,183 0017 INFORMATION TECHNOLOGY 3,000 0027 CORONER - 0036 LIBRARY ADVISORY BOARD (12,000) Grand Total 2,899,220 “Stand-Alone” Topics – to be continued •Transfer Station •New Courthouse •Upper County EOC •Fire Station 73 •Ellensburg Fieldhouse •$4MM over four years in CIP per Public Works Director •To be revised to $3MM over four years •City Manager email November 9 •NEW – Ellensburg Sleep Center •Draft feasibility report Nov, 2023 •Court rulings re camping in public •$1MM initial estimate for site prep and construction •$400K annual operating Next Steps: •November 21 BOCC Meeting: •Public Hearing requests (3) •Update of draft 2024 Budget •Update of 2023 YE Estimates and Budget Amendment •December 4 – Adopt 2024 Budget •December 5 – Tax Levy and 2023 Budget Amendment •Continuation of “Stand Alone” Topics •Continuation of Fund Balances, Related Policies, Targets, Trends 2023 Report to Community Upper Kittitas County Senior Center November 2023 1. Year in review 2. Challenges and accomplishments 3. Goals and outcomes 4. What we need to achieve our goals 5. Financial summary Agenda MISSION: Our reason for being The mission of the UKCSC is to enhance the physical, emotional and economic well-being of seniors’ lives providing recreational, cultural, educational, fitness and fellowship activities. Nutrition, social and health services will also be provided. These activities and services will encourage seniors’ participation in all aspects of community life. “Serving seniors and community” Since August 1991 1. Year in review Mar 2023 Volunteer Executive Director sudden resignation Mar 2023 Board of Director meetings resumed with an interim Board to continue daily operations Aug 2023 Paid Executive Director and Chef hired, Chef retired Aug 2023 Partners and allies identified, introductions started Sep 2023 Member and Board surveys Sep 2023 Executive and Board retreat and workshop Sep 2023 Budget 2023 drafted Oct 2023 Strategy drafted Nov 2023 Strategic Plan 2023-2024 adopted Nov 2023 Budget 2023 adopted, Budget 2024 drafted Dec 2023 Budget 2024 to be adopted Veteran’s Breakfast Given that UKCSC has not had a strategic plan or budget in recent years, we have been aggressive to compensate for the lack of capturing historical data, and progress and growth that is relative to the growth in the community. In addition, the 2024 Strategic Plan requires documentation and structure brought to aspects of the organization where it is lacking. This will lead to future sustainability. 1. Year in review VISION: Our aspiration Our vision is to create a sustainable, welcoming space where mature adults come to spend their time in fellowship, supporting others, and where they can utilize their creativity and strengths by participating in diverse activities and events. CORE VALUES: Our ideals that guide us Kindness: Foster a sense of friendliness and caring Connection: Foster a sense of team and community Contribution: Foster a sense of participation and fulfillment Preservation: Foster a sense of stability, sustainability and endurance Upper Kittitas County Senior Center, a non-profit corporation is on grounds leased from the City of Cle Elum in the Centennial Center building 2. Challenges and accomplishments a.Provision of a meeting space for AARP, County meetings and other public meetings which affect senior citizens. *SHIBA (Statewide Health Insurance Benefits Advisors), *Kittitas Co. Health Network, *Kittitas County, *City of Cle Elum, *Candidate Forum, *American Red Cross Blood Drive, *Life Support First Responders Training, *Search & Rescue Training, *HAM Radio Emergency Communications Weekly Station Checkup, CPR & First Aid Training 232 blood donors provided 212 units of blood 100 attended the candidate forum 84 attended the HAM Radio Comms group YTD 102 attended trainings b.Serving as an Upper Kittitas County Emergency Shelter (as designated by Kittitas County Board of Commissioners -Resolution 2007-01). *American Red Cross Shelter, *American Red Cross Supply and Trailer Storage, *Cle Elum motel fire displaced guests and residents, *I-90 prolonged closures, *warming/cooling shelter, *generator and showers for extended power outages 10 served YTD * Designates FREE and no charge Areas of service to be provided by the Center, but not limited to… Weekly BP Checks Emergency Shelter Election Polling 2. Challenges and accomplishments c.Provision of personal enrichment, fellowship and other activities for seniors; and f.Provision of drop-in activities for seniors; and k.Provision of exercise classes, arts and craft classes, personal enrichment classes, lectures, health care services and other activities. BINGO, Congregate meals –Breakfast and Lunch M-F, *free coffee, *Bridge, *Game Day, *Community Talks, *Craft Club, *Lending Library (large print, movies, puzzles, games), *Thanksgiving Community Luncheon, *Veteran's Appreciation Breakfast, *Walk & Talk (walking group), *Writer’s Workshop, Healthy Smiles Oral Care, *Computer Lab, *Gentle Chair Yoga and Balance 5762 served 4130 low cost, nutritious meals served 445 participated in free fitness programs 229 used the free library 958 came for other activities 50 volunteers serving 2700 volunteer hours and only 2 paid staff made this happen A monthly newsletter with this information is mailed to over 315 members 20 individuals 8 allied organizations * Designates FREE and no charge Areas of service to be provided by the Center, but not limited to… Craft Club 2. Challenges and accomplishments d.Provision of a meeting place for senior networking lunches for social service agents working with seniors in Upper Kittitas County. *BP Checks by Medic 1 at congregate lunches, *Kittitas County Candidate Forum, *Kiwanis Lunch Meeting, *Vaccine Clinics 223 served e.Provision of a work space for social service agencies serving seniors when such agencies operate in Upper Kittitas County *HopeSource, *Consumer Direct Care Network, *Kittitas County Connector, *COAL Center Clothing, *Hearts & Hands of Kittitas County, *Aging and Disability Resource Center, *Aging and Long Term Care of Southwest Washington 52 served g.Provisions for informational brochures, flyers and pamphlets about services to be made available in the Center's magazine rack and on its bulletin board operate in Upper Kittitas County; and i.Provision of an informational network for seniors to help access services to meet their needs. *Bulletin boards are always changing to stay current. * Designates FREE and no charge Areas of service to be provided by the Center, but not limited to… 2. Challenges and accomplishments h.Provisions for a weekly newspaper article and monthly calendar of events to be published to keep seniors informed of scheduled events. *Monthly newsletter, *Weekly press releases to NKC Tribune, *Online calendar of events: NKC Tribune, Kittitas County Chamber of Commerce, Ellensburg Daily Record, Facebook Page, Facebook Groups of Upper Kittitas County, and KXLE Public Service Announcements Reaching thousands of potential patrons including 315 Members, 394 Facebook followers, and with an average monthly reach of 7,500 through Facebook j.Provision of call-in referral services to direct callers to the appropriate agency to address the nature of their call. 30 served both call in and walk in* l.Provision of adequate space for Kittitas County to provide services as needed to Upper Kittitas County residents. The Kittitas County Maintenance Shops, Storage, & Parking, in inventory for Kittitas County Capital lmprovement Program, 2022-2027, dated Dec 2021 lists 30 shared spaces. There are 52, which includs 6 ADA compliant spaces. The Plan lists improved off-sheet parking next to the bldg., 719 E. Third St., Cle Elum. Building space and parking are provided for Upper County Public Health services. Please include UKCSC management when the improvement is planned. * Designates FREE and no charge Areas of service to be provided by the Center, but not limited to… 3. Goals and outcomes 1.GOAL: Outreach. Increase public awareness of the center. OUTCOME: Increase overall utilization by 20%. HOW: Increasing partnerships, build relationships with allied organizations, and increase visibility in the community. 2.GOAL: Increase revenues of programs, activities and operations, to reach a balanced budget equal to the capability and capacity of this corporation. OUTCOME: Increase revenue by 60%. HOW: Aggressively pursue grants, donors, and other funding opportunities. 3.GOAL: Onboarding. Improve engagement of volunteers to diversify and maintain the excellent level of service that our patrons rave about. OUTCOME: Complete 50% of the 15 onboarding actions in the Strategic Plan (policies/procedures, job descriptions, training). HOW: Reach newly recruited volunteers and get them ready to replace our aging and overburdened team. Our volunteer team is an absolute necessity to supplement the paid staff of two. 4.GOAL: Diversity, equity and inclusion. Increase diversity of the Board of Directors. OUTCOME: Replace three retiring board members with knowledgeable and connected community members to govern towards a sustainable future. HOW: Reach out and invite community members with legal, financial and operational expertise and differing demographics. 4. What we need to achieve our goals Our ask: Increase Kittitas County funding under the next agreement to $40,000 for 2024, and plan for annual increases tied to the Federal COLA index, the change in Commissioner District 2 tax revenues, or change in population of Commissioner District 2. 1.The agreement and annual funding of $19,900 has been the same since at least 2009. 2.Utilities and overhead costs have increased just since 2019 by 26%. 3.The community has experienced growth that will to continue with planned developments including Mountain Vision 2030. 4.Cost of inspections and maintenance of 21 systems, some of which were deferred for 8 years. Fire Department, HVAC, plumbing, walk-ins, and other mechanical system findings have been costly to correct and maintain. Given our designation as a disaster relief shelter for the county, this work could not wait. We are in the process of catching up. To do this, we are dipping into our operating reserves and planning to maintain the systems going forward. 5.Gen X will be joining the community of seniors beginning 2025. We need to provide new services (for example: online access to schedules, forms, and volunteer opportunities). Our answer: Reduce risks. 1.Upgrade technology and equipment that has, or is becoming obsolete, move data to the cloud (grant for cloud storage approved). 2.Complete deferred maintenance and have all systems on a regular periodic inspection and maintenance schedule (in progress). 3.Upgrade to high speed internet to allow for greater facility use and virtual participation in activities and events ($205 monthly). 4.Support for the Board of Directors in a review of the corporation’s governance and the revised Washington Non-profit Corporation Act Chapter 24.03A RCW. 5.Gain access to update the website or create a new website to improve outreach, ease of use and donor engagement. 6.Continue to engage with allied organizations and partners, and seek collaboration to leverage resources. 5. Financial Summary YEAR INCOME EXPENSE NET PAYROLL UTILITIES MAINT.NOTES 2019 172,987 151,122 21,865 60,319 15,058 15,557 No maintenance of operating systems occurred. 2020 122,683 109,651 13,032 45,168 13,665 10,534 PPP funding. Decreased utilization due to COVID. 2021 116,611 111,476 5,135 40,060 14,969 12,215 PPP funding. Decreased utilization due to COVID. 2022 129,313 121,903 7,410 48,384 16,012 9,482 Executive off site. 2023 (Est.)156,592 175,508 -18,916 77,684 19,092 25,428 Hired a paid Executive Director (5 months). 2024 (Est.)246,300 246,300 0 142,034 22,100 26,000 PSE rebate on solar installation due to expire. * Capital expenditures are not included in 2024 budget as of yet. Current reserves will be utilized to replace failed roof ($100,000) and HVAC unit ($7,000). Q & A Please contact us to provide any additional information that may be helpful. Lori Nevin, Executive Director Patty Nelson, Board President Dorothy Wagsholm, Bookkeeper Office: 509-674-7530