Clallam County officials anticipate spending $36.8 million in 2016 — nearly an 11 percent ($3.6 million) increase from expenditures projected in 2015.

To cover the estimated costs while still maintaining a balanced budget, county Administrator Jim Jones expects to use about $3 million from the county’s General Fund reserves given a forecasted $33.8 million in revenues.

Drawing from the reserves leaves a balance of $9.2 million, but Jones is confident that’s enough to end the fiscal year with.

“The projecting ending fund balance of $9,208,553 is still very healthy and is $869,083 more than the minimum amount our policies call for,” he said.

After 28 publicly noticed meetings, including three public hearings, county commissioners unanimously adopted the 2016 budget on Dec. 8. The final and approved budget is reflective of the community input gathered at the 2016 budget public hearings on Dec. 1.

“This year, for the first time in the 10 budgets I have presented, the BOCC (Board of County Commissioners) agreed to make significant changes in selected General Fund revenues and in reduced spending in REET (real estate excise tax),” Jones noted in his executive summary of the adopted 2016 budget.

A reduction of $400,000 in selected General Fund revenues was one of the “significant” changes from Jones’ recommended budget. Under the change, the original estimated revenue from both Investment Interest and Sales Tax were each reduced by $200,000. Additionally, the commissioners opted to not spend $250,000 from the real estate excise tax fund previously earmarked to further pursue a controversial shooting range at Sadie Creek west of Joyce.

The changes to the adopted budget within its last week of review illustrate “that no matter how late in the (budget) process, the public can have an impact by their participation,” Jones said.

The adopted budget accounts for the new and ongoing expenses in the General Fund associated with a change first implemented in May that bumped employee workweeks up from 37.5-hours to 40. The budget also includes the salary and benefit expense of $1.1 million for new staff in the Assessor, Treasurer, Permit Center, IT, Prosecutor, Facilities and Washington State University Extension departments.

Despite an increase in ongoing expenditures, Jones planned the budget without reliance on the automatic 1 percent increase in property tax allowed by law.

Although all three county commissioners, including Mike Chapman, Jim McEntire and Bill Peach, agreed on an annual budget balanced by $3 million in reserves, Chapman expressed his concerns with the allotted spending.

“Obviously, we have to have a budget, but I don’t indend to live under this budget, I don’t intend to spend this much of the reserves,” he said. “I think this my message to Bill and Commissioner-elect (Mark) Ozias is that I think in January, we need to roll up our sleeves and make some changes so we don’t use all $3 million of reserves.”

One change or strategy Chapman suggested he and his colleagues revisit come 2016 is the possibility of reinstating a 8.4 percent sales tax rate. A result of the county commissioners’ multi-prong approach to stimulate the local economy, the sales tax in unincorporated Clallam County has remained at a reduced rate of 8.2 percent since July.

Other funds

Beyond the General Fund and among the county’s other funds, Jones estimates $62.4 million in expenditures and $49.5 million in revenues. Based on the forecasted revenues and beginning balance of about $40 million, Jones expects an ending balance of $25 million.

Making it one of the more costly departments, the Road Department alone accounts for more than $20 million of the total 2016 budget. However, Jones said, the Road Department is “always” the largest of the county’s Special Revenue Funds and thus the associated expenditures are far from alarming.

In his executive summary, Jones also notes the upcoming spending of $10.4 million in 2016 for the Carlsborg sewer project.

“We expect to start construction as early in the spring as possible and hope to be finished by the end of the year, starting operation in 2017,” Jones said.

Stepping back from the budget and looking at its impact, Jones reported within the coming new year county officials anticipate taking about $30.7 million out of the economy via taxes, fines and fees, but project putting $82.5 million into the economy via payroll, supplies, capital projects and contracting services.

The 2016 adopted Clallam County budget can be viewed online at clallam.net/bocc/Budget2016.html.

Reach Alana Linderoth at alinderoth@sequimgazette.com.