|
Boa 94 PARC 60
<br />$209,822 is $14,638 (7.47%) above the FY 89/90 budget. During this time frame
<br />the county allocation to the Humane Society increased from $70,412 to $127,000
<br />or 80.37%. Income from other sources has not increased at the same rate or in
<br />some instances decreased. As a result, the Humane Society advises that revenue
<br />is not sufficient to offset the operating expense levels and at the same time set
<br />aside funds in amounts projected as necessary for future facility expansion. As
<br />of September 30, 1994, the Plant Fund was $150,929 and the Quasi -Endowment
<br />Fund was $258,268 ( Exhibit 11) .
<br />Based on these factors, staff concurs that an increase allocation is
<br />justified. However, as will be elaborated on further, considering the county's
<br />revenue uncertainty and very preliminary FY 95/96 expense projections, staff
<br />does not recommend the $40 unit price for FY 95/96 and as such, the initial base
<br />for subsequent allocations. Staff recommends a FY 95/96 increase of $55,073.
<br />That amount would equate to offsetting the audited deficit for the fiscal year
<br />ending September 30, 1994 ( Exhibit 111) . The corresponding per animal unit
<br />price would be an increase from $21.03 to $30.15. Staff is of the opinion that
<br />this unit price with an escalator, such as consumer price index (CPI), is
<br />equitable considering the economic climate and county fiscal constraints.
<br />Additionally, if the number of animals increases, the county allocation would also
<br />automatically increase.
<br />In arriving at the recommendation, staff had also developed and considered
<br />a phased or three year contractual agreement approach ( Exhibit IV) similar to
<br />that proposed by the Humane Society in their February 28, 1995 letter. The
<br />differential between the two being the per animal cost in each of the next three
<br />fiscal years culminating in $40 per animal and the Humane Society proposal to
<br />initiate $30 per animal for the balance of this fiscal year which is an additional
<br />$45,000 above the $127,000 budgeted and the potential $14,300 from license fees.
<br />In the final analysis, staff believes if viewed solely as an individual expense
<br />such an approach may be reasonable, particularly in better economic times.
<br />However, in the context of the overall county tax budgets, considering the
<br />revenue uncertainty, other priority expenses, and the difficulty in committing
<br />automatic expense increases of this magnitude to others, staff could not
<br />recommend this approach. During the last several years there has been very
<br />little tax budget revenue growth. In fact, for the current fiscal year, the
<br />MSTU and Emergency Services District tax bases actually decreased. As a
<br />result, in this economic climate, long range programs have had to be adjusted
<br />and/or deferred and expenses, including positions, cut. Next fiscal year,
<br />assuming the economy continues to improve, optimistically some revenue growth
<br />is anticipated, but not dramatic. However, as reported to the Board at the
<br />February 14 preliminary budget meeting, even at this early date a minimum of an
<br />additional $1.3 million is required to meet present obligations such as courthouse
<br />security and a northwest emergency services station, regardless of any other
<br />increases that may be submitted for consideration with the total budget.
<br />In view of the preceding, staff believes we must continue to be fiscally
<br />cautious at this time and as such finds it difficult to recommend significant fixed
<br />multi-year program expense increase commitments whether it be the Humane
<br />Society, BCC department, or another non-profit organization. Nevertheless,
<br />staff does recognize the financial dilemma of the Humane Society and the service
<br />provided for the County. It is on that basis staff is recommending the projected
<br />$55,073 increase for next fiscal year, prior to receipt of and consideration of
<br />any other budget requests. If the economy were to continue to improve and
<br />correspondingly the ability to realistically project revenue growth, a more long
<br />term commitment to fixed increases at the rates requested may be reasonable.
<br />M
<br />March 14, 1995
<br />
|