2015-16 County Budget

For Immediate Release: Thursday, May 21, 2015

County Budget Shows Initial Steps Toward Reinvestment

Washington County's proposed $939.6 million all-funds budget was approved today by the county's Budget Committee, comprised of both appointed residents and elected members of the Board of Commissioners. The approved all-funds budget, which will be the subject of a public hearing on June 23, represents a 15 percent increase over last year's all-funds budget while expenditures anticipated from the county's general fund would be $236 million, a 3 percent increase over last year.

The Budget Committee's action comes as economic recovery slowly continues, retirement costs are anticipated to increase and additional expenditures using Gain Share funds are anticipated to address seismic retro-fitting and deferred maintenance and repair of buildings, technology and other systems.

Revenues supporting county operations grew modestly over the last year, according to the budget document. Property and other taxes increased by 6 percent compared with 2014-15. This single revenue category supports roughly two-thirds of the county's general fund, the main portion of the budget over which the Board of County Commissioners has discretionary authority.

Regarding other funds in the county budget, revenue related to development and construction activity has continued to improve over prior years, including an expected 7 percent increase in funds from building permits, for example. Increased state and federal funding for mental health services, largely resulting from implementation of the federal Affordable Care Act, is also contributing to revenue improvements. These dedicated revenue sources support special funds in the budget and can only be used for specific purposes.

"This level of growth provides for a fairly status quo general fund budget and service levels," County Administrator Robert Davis wrote in the opening pages of the proposed budget document. "Select general fund investments are recommended throughout the organization based on workload, strategic priorities and the ongoing requirement to address emerging facilities and technology issues."

Highlights of the budget approved by the committee include:

• Maintaining general fund reserves above a minimum threshold of 20 percent of general fund revenues;
• Continuing property tax abatement through Strategic Investment Program (SIP) agreements with companies such as Intel and Genentech, negotiated with the City of Hillsboro, to encourage economic development that benefits the statewide economy;
• Use of Gain Share funds, created by a portion of state income tax dollars resulting from SIP-related investment, to address earthquake retrofitting of county facilities, building maintenance and repair and upgrading technology systems;
• Supporting an increase of 25 staff positions, largely in the public safety and justice area through special funds derived from state revenue;
• Preparing for the planning and development of new urban areas anticipated for upwards of 15,000 new residential housing units and as many as 40,000 people in the years to come;
• Addressing the need for affordable housing through anticipated use of the county's tax exempt bonding authority to double annual production of affordable housing units in a single year;
• Continuing the general fund commitment to the Major Streets Transportation and Improvement Program (MSTIP) and Washington County Cooperative Library Services (WCCLS);and
• Supporting strategic planning efforts to effectively invest growing resources available to the county's mental health program as a result of federal health care reform and state funds;
• Continuing a transition away from directly providing clinic services for family planning, immunizations and sexually transmitted disease prevention and instead, investing $500,000 per year to expand access--through federally qualified nonprofit clinics--to comprehensive primary health care and preventative screenings for uninsured low-income residents;
• Preparing for anticipated rate increases in 2017 from the Public Employees Retirement System (PERS) related to a recent Oregon Supreme Court decision over-turning earlier legislative reforms.

The next step for the budget process involves consideration of the approved budget after a public hearing before the County Board of Commissioners at 6:30 p.m. on June 23 in the Auditorium of the Charles D. Cameron Public Services Building, 155 North First Avenue, Hillsboro.

The Washington County government organization has a mission of providing excellent and cost-effective services that support healthy, peaceful, safe and sustainable communities; and encouraging meaningful participation in community activities and County governance. The organization is comprised of 1,840 full-time equivalent employees.

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