2017 Budget Presentation September 20, 2016 Mr. Chairman and members of the County Council, I m pleased to present to you the 2017 Pierce County Budget my last as County Executive. It provides resources for essential, customerfocused government services that County staff deliver day in and day out with innovation and passion. The vision of Pierce County's Executive Branch is "A livable Pierce County where people choose to live, work, and play. Our continued focus on this vision is reflected in the 2017 budget that enables the County to provide priority services while also being fiscally sustainable. I am pleased to report that our economy has continued to grow, providing Pierce County with expanding employment opportunities and lower unemployment rates. We have consistently emphasized the importance of sound financial management practices and responsive public services. County employees have stepped up to these challenges through our Balanced Scorecard initiative and our Lean practices. I will go into further detail in a moment but I am gratified our economic growth and our continued focus on delivering cost-effective services will provide the County with additional resources next year. The 2017 budget allocates approximately 80 percent of the General Fund to our highest priorities - public health & safety, and legal & judicial services. It also provides a path to address the mental health and homeless issues prevalent in the County. 1
To be specific, there are increases to fund: 5 Sheriff Deputies for greater law enforcement coverage; 1 Community Engagement Coordinator and contracts for 7 Behavioral Health Co-Responders to work directly with Sheriff Deputies; 1 additional Guardian Ad Litem for the Superior Court; 1 attorney and 1 legal assistant in the Prosecuting Attorney s Office for pro-active property crime cases; 1 attorney in the Office of Assigned Counsel to meet caseload standards and increased felony workload; Electronic monitoring services for the pre-trial program administered by the Clerk; Electronic legal resources provided by the Law Library; Corrections Bureau overtime needed to cover vacant positions; and E-911 and South Sound dispatch call services. While our County has seen marked improvements in our economy and service delivery, we are still confronting growing challenges with mental health and homelessness. During 2016 the County worked to provide avenues out of homelessness and we have partnered with others on the coordination of behavioral health services. However, communities across the County have called out and asked that we do more. In response, the 2017 budget assumes revenue from the implementation of the 1/10th of 1% sales tax as authorized by state law. Many other counties around the state have chosen to collect the mental health sales tax. With this new revenue these counties have been able to expand behavioral health services. Given the needs that we see within our County, the 2017 budget proposes that the County Council approve the mental health sales tax and the use of associated state grants to support the community 2
engagement coordinator and co-responders in the Sheriff s Department, and behavioral health community treatment and residential services provided through contracts coordinated by the Community Connections Department. The 2017 budget also maximizes maintenance by increasing resources to support the successful property clean-up program of our Planning and Land Services and Public Works Departments. The 2017 budget reflects an increase in funding for cleanup actions for properties with improperly stored or illegally dumped waste and a community cleanup program serving the central, urban unincorporated areas of the County. Funding for these two programs is $539,860 and includes one additional Code Enforcement Officer. And, to enhance property management and construction projects, the 2017 budget provides an additional position in the Facilities Management Department to support the Public Works and Parks and Recreation Departments. An increase is also made to the budget of the Parks and Recreation Department for staff hours so that further coverage can be provided at park facilities. Further investments are made in technology solutions to increase customer satisfaction and improve service delivery. Funding is allocated in 2017 for the completion of the on-line building and sewer permit computer program, a new elections tabulation system, the implementation of the County s new electronic records system, the replatform of the Legal Information Network Exchange (LINX), and replacement of the animal licensing system. In addition, the funding provided in the 2016 budget for training on the County s new technology systems is continued in 2017. The General Fund budget for 2017 totals $298.7 million. This is $9 million higher, or 3.1% above the 2016 level. The total County budget 3
for 2016 is $907.1 million, which is $34.6 million lower than 2016, primarily because of declining expenditures for the multi-year expansion of the sewer treatment plant. You will see the Budget Highlights section in each department budget provides a more detailed explanation of the significant changes included in the 2017 budget. However, several key factors led to the 2017 General Fund budget: The primary considerations for this include: An overall increase in General Fund revenues; Limited growth in property tax revenue; An increase in total sales tax revenue, primarily because of increases in retail and construction related collections; A moderate increase in revenue expected from the direct purchase of services provided by the County, primarily jail services for local governments and contracted deputies; Limited changes in interest revenue because of continued low investment rates; and Intergovernmental revenue will be flat in 2017 compared to 2016. Grants total $20.6 million. The 2017 budget balances our expenditures and revenues while still maintaining a 15% unassigned General Fund reserve to provide stability and sustainability of operations as prescribed by the County Council and financial advisors. Over the last few years we have been able to achieve a reserve level that covers our cash flow needs and sets aside resources to respond to changes in our economic condition without needing to disrupt the critical services that the public expects us to provide. Turning to staffing, after several years of reductions, the 2017 budget targets some additional staff positions to meet growing service 4
demands. Between 2007 and 2017, staffing reductions in the General Fund now total 303 (14.5%). Overall the County has seen a reduction of 359 (10.6%) full time equivalent (FTE) staff during this time period. In acknowledgement of the ongoing commitment of our employees to provide the highest level of public service, and in line with the growth in our tax collections, the 2017 budget provides for a modest 1.5% salary increase for County employees in January and a second 1.25% increase in June for a net annual increase of 2.125%. The budget also includes resources to cover rising health care and pension costs for County employees. I d like to close by sharing some of the many accomplishments achieved by my more than 3,000 County colleagues this year that benefit our residents and our communities. Our Planning and Land Service Department is on track to process 3,325 residential building permits in 2016 and has completed the update to our Comprehensive Plan. In 2016, PALS continued to improve the permit process through the use of online services, allowing customers access to all the services offered by the Department from their home or office. In addition, the Department s website has been updated to provide an intuitive Forms and Handouts page, providing information on how to permit everything from a residential garage to a residential subdivision, a commercial tenant improvement to an industrial factory, and all the permits in between. If customers are having difficulty navigating the website or understanding a form or regulation a Live Chat service provides instantaneous assistance. The popularity of this service has been steadily increasing since its inception in 2014. This service is now used by over 300 customers each 5
month. Skype inspections also started in 2014, enabling staff to conduct inspections without ever leaving the office. These inspections are quick and convenient and save staff and travel time. More than twenty Skype inspections are now completed each month. All of these initiatives have contributed to the Planning and Land Services Department achieving the goal of being the Best Permitting Agency in the State. The expansion of the sewer treatment plant will be completed at the end of 2016, enabling the County to fulfill our environmental stewardship responsibilities while supporting economic growth. Pierce County continues to be a location where businesses want to expand or relocate. In 2016, TORAY Composites (America) Inc. completed a 6th expansion to their state-of-the-art composites manufacturing facility. Oldcastle APG broke ground on a new concrete paver manufacturing facility. Mitsui-Soko (U.S.A) Inc. began site work on a new cold storage facility to provide customized and comprehensive logistics services to the aerospace industry. And, a longtime valued company in Pierce County, Commencement Bay Corrugated, will soon begin site work this fall on an addition to their box manufacturing plant. All of these investments will add good paying manufacturing jobs to the County. Our Business Retention and Expansion (BRE) program has reached out to our business community to provide support and training on topics such as exporting, access to capital, and cyber-security. In addition, we are preparing a tourism strategic plan that is based upon feedback we have received from 2,000 survey respondents. Groundbreaking for the extension of the Foothills Trail from South Prairie to Buckley was held in 2016 and is scheduled to be completed in the spring of 2017. 6
We continued our commitment to farms and farmers in 2016. This year a series of farm workshops were held covering topics such as farm-totable marketing, irrigation, and drainage. And, we achieved an exciting milestone this year when we completed the first transfer of development rights, resulting in the preservation of prime Pierce County farmland through an increase in apartment units in Tacoma. The new property crimes unit of the Sheriff s Department is continuing to enhance public safety throughout the County. And, the Mental Health Court has enabled offenders to receive treatment so that they do not again cycle through the criminal justice system. The new pre-trial program is fostering fair and equitable justice while also reducing jail costs. And, building upon the successful U.S. Open, the United States Golf Association has announced that its newest championship the U.S. Amateur Four-Ball will be held at Chambers Bay in 2019. The 2017 budget that I bring to you today supports the continued delivery of essential, customer-focused services so that Pierce County is where people choose to live, work, and play. While it will up to the next County Executive to manage and administer this budget, I hope and trust that I will have given them a sustainable, responsible and thoughtful roadmap. Thank you. ### 7