County Commisioners Edna Fund (left) and Gary Stamper discuss the county budget on Oct. 6.
Commissioners were briefed Tuesday on the county’s preliminary 2021 budget, which showed less ominous shortfalls than some anticipated. Budget Manager Becky Butler stressed that the budget is fluid, and will likely change throughout the year, especially in the era of COVID-19.
Although Butler said revenue sources are unpredictable, she’s optimistic about projections for 2021.
“This year it looks like we’ll get more than what we budged, next year based on our current projections, it’s estimated to be a good year,” Butler said. “But then again, we talked about the timber revenue, which will be dropping off, (that) will impact the general fund and the transportation budget.”
According to a memo to county commissioners from County Manager Erik Martin, the preliminary budget assumes a 6 percent decrease in sales and use tax from 2019.
“This is a conservative assumption as sales and use tax received through July of this year is trending in a positive direction,” Martin wrote. “As economic conditions continue to be evaluated and as stimulus funds are negotiated, the projections will be updated when new information is received.
In addition to sales tax bouncing back, Butler also told commissioners that revenue from tourism has evened out since taking a hit at the onset of the pandemic. Tourism revenue as of the end of September roughly matched what it was in 2019. However, revenue from fuel taxes has decreased as much as 12 percent.
“Some really severe months. Even this last month it was down quite a bit,” Butler said.
All funds, including the general and special funds, are anticipated to see a revenue of $113,734,617, and expenditures of $119,968,227. This represents a 5.8 percent decrease in expenditures from the 2020 adopted budget.
The preliminary general fund is set at about $41,769,027, with revenues projected at $38.2 million and expenditures at $41.7 million. This may need to be balanced by $3.5 million of previously received revenue, although Butler said unexpected revenue will likely make up for the imbalance.
The general fund’s projected expenditures represent a 1.5 percent increase over the 2020 adopted budget. Its projected revenue represents less than a 1 percent decrease compared to the 2020 adopted budget.
Meanwhile, major economic development in Winlock, including plans to bring in a Lowe’s Hardware warehouse, could mean a big increase in sales tax, Butler said Tuesday, although the timeline for that project isn’t definite.
The county expects to use significantly less money from funds outside the general fund — a decrease in 9.3 percent — largely due to fewer anticipated construction and capital projects. These funds are also expected to see a 7.2 percent decrease in revenue.
Some county departments and elected officials have also submitted requests for budget increases, which have totaled about $1 million for the 2021 preliminary budget. Most notably, Lewis County Seniors is requesting a $100,000 increase, and the coroner’s office is requesting approximately $375,000 for 2021 to elevate some casual help employees to full-time status. Emergency Services is also requesting an increase, and there is a request to fund district and superior court contracts for indigent defense.
Those requests will be presented and discussed at budget meetings scheduled for Oct. 8, 14, and 22. According to Butler, decisions on those requests are generally made by mid-November.
A full preliminary budget will be posted online by the county in the coming weeks.
