Department of Administrative Services

Kitsap County
614 Division Street, MS-7, Port Orchard, Washington 98366-4676
Phone (360) 337-7150 • Fax (360) 337-7052

Shawn A. Gabriel, Director

MEMORANDUM

To: Kitsap County Board of Commissioners

Kitsap County Elected Officials and Department Directors
County Employees
Kitsap County Citizens
Members of the Press

From: Shawn A. Gabriel, Director

Date: November 19, 2008

Subject: 2009 Kitsap County Preliminary Budget

Introduction:

We are pleased to present Kitsap County’s 2009 preliminary budget for the year ending
December 31, 2009. The preliminary budget represents a collaborative effort by the
Board of County Commissioners, Elected Officials, and all County Staff, to produce a
responsible plan that balances our priorities with the resources available.

We approach 2009 with caution as the nation’s economic downturn continues to impact
our local economy and major revenue streams. Over the past year, we have witnessed
an unanticipated depth of decline in sales tax revenue, new construction and consumer
confidence which have dramatically changed our fiscal landscape. To manage this
unprecedented downturn, cost-saving measures were implemented to keep our
expenditures in line with end of year revenue projections. More specifically, we
instituted spending and hiring freezes, limitations on travel and training, and reductions
in spending authority. Much of the revenue decline we face in 2009 is attributed to the
extraordinary financial situation. Some of the expenditure reductions identified are one-
time only savings to help us weather this downturn.

As a result, the Board of County Commissioners has authorized the use of reserves in
the amount of $1,172,537 as an anti-recessionary measure to balance the general fund
budget shortfall and supplement the Department of Community Development’s shortfall
in building permit revenue. The General Fund’s estimated fund balance remains above
the reserve policy of 7.5% of revenue.
The commitment to “live within our means” and to become more efficient, effective and
innovative could never be more apparent than now. To this end, with direction from the
Board of County Commissioners, we have encouraged all Departments and Elected
Offices to support the transition to a more defined program budget that measures the
performance of all County operations and the multitude of services we provide to the
community. A majority of Departments and Elected Offices have already identified
divisions and/or segments of their operation as “programs” with associated revenues,
expenses, staffing levels and performance measures categorized by “effectiveness”,
“efficiency” and “workload” indicators. The performance budget will enable us to
continuously improve services, strengthen our accountability, communicate results and
provide constructive information for effective decision making.

Although the 2009 budget year may present some challenges, it is important that we
continue to show due diligence as we operate under tight fiscal constraints. County staff
should be commended for their hard work, dedication and fortitude in continuing to offer
the quality services that County residents want and deserve.

Overview of the 2009 Preliminary Budget:

In accordance with nationally recognized rules of governmental accounting and

budgeting, the County is financially organized into separate fiscal and accounting
entities known as funds. All of these funds fall into one of six categories of funds as
follows:

1) General Fund –finances the ordinary operations of the county not specifically
provided for in any other fund.
2) Special Revenue Funds –Used to account for specific revenue sources that are
legally restricted to expenditures for specific purposes.
3) Debt Service Funds – Accounts for the accumulation of resources for and the
payment of general long-term debt.
4) Capital Project Funds –Acquisition or construction of major capital facilities.
5) Enterprise Funds –Operations that are financed and operated in a manner
similar to private businesses.
6) Internal Service Funds –Finances goods or services provided by a department
to other departments or agencies within the county.

All of the funds in the 2009 Preliminary have been balanced. Attachment (1)
summarizes the 2009 Preliminary budget by fund (expenditures only). In the General
Fund we funded all positions at 97% of their full pay expecting that there will be a
certain amount of vacant positions because of resignations and the time it takes to
recruit new employees. The 2009 Preliminary Budget includes 93 funds broken down
as follows:

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 # of Proposed
Funds Type of Fund Expenditures
1 General Fund $ 88,463,220
56 Special Revenue Funds 131,672,082
10 Debt Service Funds 11,008,187
6 Capital Project Funds 7,932,620
17 Enterprise Funds 67,066,760
3 Internal Service Funds 21,286,011
Totals 93 $ 327,428,880

We will begin our discussion with the county’s largest fund, the General Fund, and then
follow on with discussions of other major funds.

General Fund:

2008 has proven to be one of the most challenging budget years that we have ever
faced. We are projecting a $2.8 million shortfall in sales tax revenues and an additional
$1.8 million deficit in permit fees. The total impact to our general fund will be $3.3
million less in revenues than we budgeted. To keep our expenses in line with the
lowered revenues, we instituted various measures throughout the course of the year.
In August 2008, Resolution 160-2008 was adopted to implement a hiring freeze and
establish procedures and guidelines for requesting exceptions to the hiring freeze. In
September 2008, Resolution 175-2008 was adopted to institute a spending freeze on
specific expenditure accounts. During this same time period, we identified efficiency
measures that supported our efforts to reduce expenses. We adopted an Anti-Idling
and Fuel Conservation Policy (Resolution 172-2008) and County Vehicle Take Home
Policy (Resolution 173-2008). Limitations on travel and training were also instituted and
a plan was developed by the Citizens Energy Conservation Advisory Committee to
increase energy use efficiencies and reduce consumption of energy services.

We expect to begin 2009 with the same financial challenges due to the global financial
chaos, decline in consumer spending and rising costs to conduct operations and
provide services to the community. The initial budget call letter had called for a
reduction of 2.2% to each county department and elected office for a total reduction of
$1.8 million in general fund spending for 2009. That figure was based upon sales tax
and other revenue predictions made in June of this year. New estimates, updated to
reflect lagging licensing and recording fees as well as the drop in interest earnings,
obligates the general fund to absorb further cuts of $4.1 million, for a total of $5.9
million. Due to the drastic change in the projected shortfall, the Board of County
Commissioners held a budget briefing in October 2008 with Elected Officials and
Department Heads to entertain suggestions to address the shortfall.

In early November, we generated a list of potential reduction initiatives to balance the

projected 2009 budget shortfall of $5.9 million. As a result, the Board of County
Commissioners authorized several cost reduction measures, some of which result in

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one-time cost savings while others are deemed as anti-recessionary measures. More
specifically:

• Delay in technology initiatives

• Delay in the software replacement
• Reduction in overtime and extra help
• Reduction in travel, per diem, and training
• Reduction in outside agency funding
• Reduction in rates or transfers from internal service fund reserves to the General
Fund
• Use of reserves (limited to an amount whereby the fund balance remains in
compliance with reserve policy of 7.5% of revenue)

Shown below is a table that shows the General Fund program percentages for 2008:

LAW AND JUSTICE $ 63,328,689 71.6%

ADMIN & GENERAL GOVERNMENT 17,134,438 19.4%
COMMUNITY SERVICES 6,147,048 6.9%
HEALTH & HUMAN SERVICES 1,853,045 2.1%

Total General Fund Program Budget $ 88,463,220 100.0%

Estimating Revenues:

Taxes are the General Fund’s primary source of revenue and represent about 67% of
all revenues. The largest single tax is property tax. Forecasting property tax revenue is
relatively simple because it is limited to one percent growth plus an amount for new
construction added to the tax assessment roles. Total property taxes are estimated at
$28 million which includes new construction.

Our second largest revenue, sales tax, was estimated using trends based on ten years
of data. We expect sales taxes to decrease by $2.8 million (12.2%) over current
revenue expectations in 2008. Total sales taxes (including the 0.1% criminal justice
sales tax) will be about $20.2 million.

Most other revenues are those submitted by the responsible department and elected
office as they are the subject matter experts for their respective areas.

The Road Fund traditionally provides $1.4 million in “diverted road taxes” to fund traffic
enforcement functions within the General Fund. Although it costs more for traffic
enforcement than $1.4 million we felt that we could not increase this revenue.

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Expenditure Estimates:

Throughout the funds, we have estimated expenditures based on programs those

expenses support. Where personnel costs are involved, we are very meticulous with
our projections. All personnel costs are estimated using personnel currently filling the
position or, in the case of a vacancy, we use the grade and step that the hiring
department expects to use when hiring a new employee to fill that position.

The Board of County Commissioners imposed the following decision criteria to

constructively address proposed operating budget reductions:

Operating Budget

1. Preference for Public Health and Safety

2. Direct services prioritized over administrative functions (unless necessary to
assure adequate oversight and control/audit compliance)
3. Mandatory services prioritized over discretionary services
4. Regional services prioritized over local services
5. Unincorporated local services prioritized over in-city services
6. Raising fees prioritized over cutting services
7. Service delivery efficiencies prioritized over service level reductions (where
achievable without additional up front investment—for investment-dependent
ideas, see Criteria 16 below).
8. Full cost recovery for contracts and internal charges
9. Set rural service levels differently than urban service levels (for local services)
10. No new programs unless mandated, completely self-supporting, generate net
revenue or equivalent offsetting cuts are made.
11. Recognition of partnerships established with the County
12. Challenge mandates through legislative actions
13. “Public Good” vs. “Private Good”

Capital Budgets
15. Re-prioritize or eliminate discretionary projects that generate increased O&M
costs

Investment Proposals
16. Ideas that will, with expenditure of one-time money, return demonstrable savings
within 1-3 years

The Department of Community Development:

The Department of Community Development was moved to a Special Revenue fund for
the 2008 budget year. Fee increases were authorized ranging 10 to 33 percent. Full
fee increases were not approved until more definitive data could be collected during this
transition year. The economic downturn has had a major impact on the Department.
Due to revenue shortfalls, a reduction of 14 full time equivalent positions was conducted

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in September 2008. Additionally, 4 more positions were frozen, adding to the 3
positions frozen the previous year. In 2009, the Department will make further reductions
in staffing levels due to projected revenue shortfalls. To meet General Fund reduction
requirements, the Department has frozen 2.3 positions as well as reduced funding to
outside professional services normally contracted for comprehensive planning functions.
Additionally, the Department has taken significant reductions in operational expenses to
offset increased costs related to interfund charges. While the Department faces a 28-
30% reduction in staff, permit/land use application workload has only reduced by 18%.
Naturally, levels of service in select areas have been reduced. Plan review times have
increased for single family residence by five days, and inspections scheduling has
increased from 24 hours to 48/72 hours depending on availability of inspectors.

The Road and Road Construction Funds:

The Public Works Road Division is responsible for building, operating and maintaining
Kitsap County’s transportation infrastructure. Functions include:

• Road Construction
o Engineering and surveying
o Right of way acquisition
o Construction management
• Road Maintenance
• Traffic Operations
• Transportation Planning

Property tax is the Road Fund’s primary source of revenue. Forecasting property tax
revenue is relatively simple because it is limited to one percent growth plus an amount
for new construction added to the tax assessment roles. Property taxes in the Road
Fund will be approximately $23.0 million. We believe that the Road Fund will be
challenged in the future to meet the needs of Kitsap County because it has limited
revenues and the costs of personnel and construction material (especially petroleum
based products like asphalt) are increasing so rapidly. Total 2009 revenues in the Road
Fund are estimated to be $24.2 million.

The Road Construction Fund includes the 38 road projects listed in our approved
Transportation Improvement Plan (TIP). The largest of these projects is the Waaga Way
Extension ($3.1 million for 2009) and Lake Flora Road ($3.1 million) followed by the
Chico Way Bridge ($2.0 million) and Bucklin Hill Road at Tracyton Boulevard
Intersection ($1.4 million) Total road construction projects add up to $16.3 million. The
Road Construction fund receives its revenues from the State’s Motor Vehicle Fuel Tax,
Road Impact Fee Funds, and Federal and State grants.

The Real Estate Excise Tax Fund:

We use the Real Estate Excise Tax (REET) Fund to leverage funding for most of our
projects outside of the Road Fund. The revenue source for the fund is the real estate

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excise tax. This is a 1.78% tax on transfers and sales of property. Kitsap County
receives 0.50% or less than one third of this tax. There have been many real estate
sales over the past few years but recent months have seen a dramatic drop in activity
so we are cautious about projections for this fund.

We expect to receive about $4.5 million in real estate excise tax in 2009, down from a
high of $7.0 million in 2006 and $5.6 million in 2007.

Expenditures in the REET Fund are primarily for debt service on bonds issued to
support our capital facilities plan. Debt service transfers in 2009 will be $11 million. We
will also transfer $800,000 to the Coroner Construction Fund.

Central Communications (CENCOM):

CENCOM is the single consolidated Public Safety Answering Point (PSAP) providing
911-call answering and public safety dispatch countywide. Following are the main
services provided:

• Answer all incoming 911 emergency telephone calls countywide.

• Provide public safety dispatch for all law enforcement, fire service and
emergency medical response.
• Maintain the countywide Enhanced 911 telephone system for wire line and
wireless 911 calls.
• Maintain the countywide emergency services radio network.
• Coordinate standard dispatch policy and procedures for 13 separate public safety
jurisdictions.

Central Communications receives a 0.1% sales tax estimated to be $3.54 million for
2009. It also receives about $1.34 million from cities and fire/EMS districts for
dispatching. CENCOM will receive $703,571 from the County General Fund for the
county’s share of emergency dispatches.

Enterprise Funds (Waste Water, Solid Waste, and Surface and Stormwater
Management Programs):

Solid Waste:
The Solid Waste Division of Public Works is responsible for developing and
implementing the County’s Comprehensive Solid Waste Management Plan in
compliance with RCW Chapter 70.95.020 and Chapter 70.015.007. The following are
the main services provided:
• Oversee and administer the solid waste disposal system including the operation
of the Olympic View Transfer Station (OVTS)
• Provide rural solid waste and recycling services at the drop box facilities located
throughout Kitsap County
• Establish and monitor the service level for curbside recycling programs in
unincorporated Kitsap County

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 • Provide household hazardous waste collection and the Small Quantity Generator
(SQG) Collection Program at the Moderate Risk Waste (MRW) Collection Facility
• Monitor County-owned closed landfills
• Provide programs about waste reduction, recycling, composting, litter, and
pollution prevention to public and private school students and Kitsap County
businesses and residents through school/adult/community education programs
• Coordinate litter and illegal dumping cleanup and prevention efforts through the
Clean Kitsap Program

The preliminary budget for Solid Waste operations is $5.56 million with the bulk of
revenues coming from user fees. The Solid Waste Division also operates or contracts
for the operations of various transfer stations throughout Kitsap County. The budget for
these operations is $12.04 million with the revenues coming from fees for these
services.

Wastewater (Sewer) Operations:

The Wastewater Division of the Public Works Department provides sanitary sewer
service for various unincorporated areas of Kitsap County. The following are the main
services provided:
• Secondary treatment of domestic and commercial sewage to insure that the
resulting discharge into Puget Sound meets all current State and Federal water
quality requirements.
• Operation, maintenance, and inspection of wastewater collection and
transmission facilities.
• Design review and inspection of developer financed sanitary sewer extensions.
• Manage a capital facilities program to provide necessary repair, replacement and
upgrades to the County’s sewer infrastructure.

The Wastewater operations budget for 2009 is $13.2 million and revenues come
primarily from user charges for these services. Revenues for Sewer Construction come
primarily from the Sewer Improvement and Sewer Repair and Replacement funds. The
Sewer Construction budget for 2009 is $15.46 million.

Surface and Stormwater Management Program:

The Surface and Stormwater Management Program (SSWM) is responsible for
implementing the County’s flood reduction and non-point pollution control program.
The following are the main services provided:
• Inspection, operation and maintenance of stormwater control facilities.
• Planning, design and construction of projects that:
o Reduce flooding
o Reduce non-point pollution
o Improve fish passage
• Pollutant source identification and control
• Surface Water resource related public outreach, involvement and education.

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The operations budget for the Surface and Stormwater Management Program is $6.02
million with most of its revenue coming from user fees for services. The budget for the
SSWM Construction program is $0.83 million.

Kitsap County Economy:

Washington State Labor and Industries’ employment report for third quarter of
2008 reported that the state unemployment rate is 5.8%; up 1% from the third
quarter 2007 unemployment rate of 4.8%. Kitsap County’s unemployment rate, in
the same report, is lower at 5.5%; a significant increase from the 4.3% reported in
the third quarter of 2007. To date, Kitsap County property values have decreased
9.4% since the third quarter 2007. Impacts of the nation-wide real estate financial
markets have had an effect on our local regional market, causing revenue
forecasts to be guarded.

Cost Drivers:

The County has limited or no control over the increased cost of providing services.
Some of the current cost drivers are health insurance rates, retirement benefits, and the
rising cost of utility services, postage and construction material.

Personnel costs (salaries and benefits) account for 67% of the expenditures in the
General Fund. Unlike “one-time” costs such as construction costs, personnel costs are
“continuing” costs so their relative importance in projecting expenses is very high. As
stated before, the cost of health care is soaring. The County and most of the unions
representing County employees have worked collaboratively through the collective
bargaining process to limit the County’s exposure to the increasing cost of health care.
We have been able to negotiate a 5.4% increase for next year.

The cost of providing retirement benefits has steadily increased as well. The
Washington Pension Rate Setting Council has increased employer contributions to the
PERS I, 2, & 3 retirement plans. We are also experiencing cost increases in other
retirement plans, such as the Law Enforcement Officers and Firefighters (LOEFF) plans
1 and 2. Other benefit related categories, such as workers compensation and dental
insurance, are increasing at a similar rate. Unfortunately, the cost of maintaining current
benefits is rising faster than any revenue source. The County will not be able to absorb
these increases indefinitely.

The Budget Process:

The basic budget process used for 2009 involved: (1) reviewing all current or “base”
budgets for adequacy and removing “one-time” non-recurring expenditures; (2)
analyzing requested increases to the base budget; and (3) verifying compliance with the
2.2% requested reduction in expenses from all Departments and Elected Offices.

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Each department was directed to submit their budget proposals by the close of business
on August 8, 2008. These documents were then compiled into notebooks and
summarized for the Board of County Commissioners for review in publicly held
meetings during the months of September, October and November. All Elected Officials
and Department Heads were given the opportunity to discuss their budgets during this
time. A public hearing is scheduled for December 1, 2008 on the preliminary budget.
The final budget will be presented for consideration and adoption by the Board of
County Commissioners at their regularly scheduled meeting on December 22, 2008.

Attachments:

(1) All Funds Balance Report

(2) General Fund Revenues by Department
(3) General Fund Expenses by Department
(4) General Fund Revenues by Account
(5) General Fund Expenditures by Account

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 Revenue by Department
2007 2008 2008 2009
Department Actual Budget Six Month Prelim

01 County Commissioners $ 95,990 $ 80,000 $ 38,716 $ 75,035

05 Superior Courts $ 97,597 $ 117,298 $ 58,540 $ 129,535
06 District Courts $ 3,327,889 $ 3,466,807 $ 1,825,069 $ 3,780,650
08 Prosecutor $ 2,794,655 $ 3,139,120 $ 1,085,735 $ 3,457,320
09 Clerk $ 2,058,737 $ 1,601,087 $ 907,431 $ 1,768,632
15 Assessor $ 1,071 $ 1,200 $ 265 $ -
16 Auditor $ 4,043,395 $ 4,568,166 $ 1,662,388 $ 4,253,453
17 Coroner $ 61,365 $ 84,000 $ 33,598 $ 84,250
18 Treasurer $ 5,656,868 $ 5,073,300 $ 2,725,123 $ 4,304,500
21 Community Development $ 6,542,830 $ - $ - $ -
23 Administrative Services $ 10,410 $ 182,516 $ 1,816 $ 173,056
25 General Admin. & Operations $ 55,442,714 $ 58,681,216 $ 27,984,115 $ 57,327,207
27 Facilities Maintenance $ 45,344 $ 164,809 $ 18,077 $ 276,433
40 Sheriff $ 1,681,600 $ 2,525,568 $ 997,449 $ 2,553,141
41 Jail $ 3,895,347 $ 3,559,575 $ 1,372,663 $ 4,097,846
42 Juvenile $ 2,800,388 $ 3,337,657 $ 1,285,836 $ 3,375,665
50 Parks $ 1,447,267 $ 1,776,725 $ 503,092 $ 1,617,510
55 Cooperative Extension $ 10,000 $ - $ - $ -
60 Personnel & Human Resources $ 157,290 $ 127,500 $ 39,693 $ 15,000

Attachment (2)
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 Expenses by Department
2007 2008 2008 2009
Department Actual Budget Six Month Prelim

01 County Commissioners $ 1,367,236 $ 1,245,359 $ 618,580 $ 1,337,255

05 Superior Courts $ 2,832,070 $ 2,935,886 $ 1,421,491 $ 2,944,301
06 District Courts $ 2,714,991 $ 3,011,808 $ 1,339,036 $ 3,019,128
08 Prosecutor $ 7,972,874 $ 8,261,949 $ 3,913,417 $ 8,551,634
09 Clerk $ 6,165,577 $ 6,162,131 $ 2,855,209 $ 6,769,932
15 Assessor $ 2,330,914 $ 2,410,190 $ 1,100,259 $ 2,473,779
16 Auditor $ 3,554,657 $ 3,626,407 $ 1,570,365 $ 3,716,512
17 Coroner $ 918,531 $ 901,170 $ 461,504 $ 926,671
18 Treasurer $ 898,044 $ 919,082 $ 420,493 $ 932,789
21 Community Development $ 7,880,971 $ - $ 240 $ -
23 Administrative Services $ 918,516 $ 1,104,605 $ 479,876 $ 1,098,918
25 General Admin. & Operations $ 7,318,774 $ 9,992,053 $ 3,513,233 $ 8,773,865
27 Facilities Maintenance $ 854,931 $ 2,251,683 $ 971,324 $ 2,211,538
40 Sheriff $ 18,430,042 $ 19,474,372 $ 8,857,196 $ 18,872,258
41 Jail $ 10,912,117 $ 11,787,112 $ 5,476,954 $ 12,741,121
42 Juvenile $ 7,582,698 $ 8,088,139 $ 3,693,676 $ 8,376,722
50 Parks $ 5,149,327 $ 4,056,345 $ 1,586,075 $ 3,926,556
55 Cooperative Extension $ 310,405 $ 263,230 $ 68,051 $ 262,064
60 Personnel & Human Resources $ 1,644,415 $ 1,575,156 $ 664,533 $ 1,528,177
TOTAL EXPENSES $ 89,757,090 $ 88,066,677 $ 39,011,512 $ 88,463,220

Attachment (3)
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 KITSAP COUNTY GENERAL FUND REVENUES BY ACCOUNT
2007 2008 2008 2009
Account Actual Budget Six Month Prelim

00001 General Fund

3110 GENERAL PROPERTY TAX $ 26,964,263 $ 27,662,407 $ 14,647,543 $ 28,689,530

3130 RETAIL SALES AND USE TAX $ 24,471,113 $ 25,850,000 $ 11,083,936 $ 22,815,004
3160 BUSINESS TAXES $ 1,531,633 $ 1,516,846 $ 797,801 $ 1,615,892
3170 EXCISE TAXES $ 792,668 $ 844,214 $ 326,785 $ 639,858
3190 PENALTIES & INTEREST ON TAXES $ 1,875,387 $ 2,325,000 $ 1,149,682 $ 2,025,000
3210 BUSINESS LICENSES AND PERMITS $ 3,424 $ 4,420 $ 1,905 $ 4,475
3220 NON-BUSINESS LICENSE & PERMITS $ 203,989 $ 249,125 $ 99,749 $ 239,000
3310 DIRECT FEDERAL GRANTS $ 328,431 $ 616,050 $ 12,270 $ 453,282
3330 INDIRECT FEDERAL GRANTS $ 2,040,574 $ 2,551,268 $ 693,829 $ 2,016,455
3340 STATE GRANTS $ 1,824,209 $ 1,969,127 $ 967,417 $ 2,701,300
3350 STATE SHARED REVENUES $ 93,999 $ 88,032 $ 62,588 $ 94,850
3360 STATE ENTITLEMENTS $ 2,059,850 $ 1,864,178 $ 912,749 $ 2,013,278
3380 INTERGOVERNMENTAL SERVICE $ 3,044,393 $ 2,770,679 $ 1,100,263 $ 3,575,927
3410 GENERAL GOVERNMENT $ 4,502,590 $ 3,933,669 $ 2,130,616 $ 4,265,592
3420 TRANSFER OFFENDER FEE $ 1,223,838 $ 1,302,033 $ 586,565 $ 1,182,390
3460 MENTAL & PHYSICAL HEALTH $ 54,531 $ 58,000 $ 23,714 $ 52,000
3470 CULTURE AND RECREATION $ 669,249 $ 821,100 $ 115,245 $ 827,100
3490 OTHER INTERFUND/DEPT CHARGES $ 2,256,011 $ 3,511,112 $ 929,626 $ 3,784,924
3510 SUPERIOR COURT-FELONY $ 158,466 $ 141,174 $ 76,482 $ 148,358
3520 CIVIL PENALTIES $ 35,390 $ 25,400 $ 20,578 $ 35,000
3530 NON-PARKING INFRACTION PENALTY $ 1,638,673 $ 1,844,000 $ 793,817 $ 1,725,500
3540 PARKING INFRACTION PENALTIES $ 7,690 $ 7,500 $ 5,389 $ 9,000
3550 CRIMINAL TRAFFIC MIS. PENALTY $ 149,666 $ 150,000 $ 70,518 $ 138,000
3560 CRIMINAL NON-TRAFFIC PENALTIES $ 18,137 $ 15,000 $ 7,139 $ 8,400
3570 CRIMINAL COSTS $ 572,699 $ 587,778 $ 317,606 $ 623,279
3590 MISC FINES AND PENALTIES $ 95,567 $ 135,324 $ 46,438 $ 93,327
3610 INTEREST EARNINGS $ 3,551,366 $ 2,557,000 $ 1,512,498 $ 2,218,000
3620 RENTS, LEASES & CONCESSIONS $ 542,246 $ 786,450 $ 270,682 $ 934,753
3660 TRUST & OTHER I/F MISC REV $ 59,348 $ 136,809 $ 3,880 $ 194,080
3670 CONT AND DONATIONS-PRIVATE $ 22,525 $ 17,000 $ 8,727 $ -
3690 OTHER MISC REVENUE $ 180,958 $ 917,852 $ 229,526 $ 689,923
3860 AGENCY DEPOSITS $ 168,323 $ 31,600 $ 221,040 $ 395,000
4970 OPERATING TRANSFERS IN $ 2,486,723 $ 3,196,397 $ 1,313,001 $ 3,080,756
TOTAL REVENUES $ 83,627,929 $ 88,486,544 $ 40,539,604 $ 87,289,233

Attachment (4)
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 KITSAP COUNTY GENERAL FUND EXPENSES BY ACCOUNT
2007 2008 2008 2009
Expenditure Account Actual Budget Six Month Prelim

00001 General Fund

SALARIES
5101 REGULAR SALARIES $ 38,175,802 $ 39,582,383 $ 18,653,199 $ 41,116,467
5102 OVERTIME PAY $ 1,246,137 $ 957,543 $ 666,732 $ 897,269
5103 LONGEVITY PAY $ 472,494 $ 488,981 $ 246,867 $ 529,694
5104 SICK LEAVE PAYOUT $ 55,197 $ 69,096 $ 706 $ -
5106 ANNUAL LEAVE PAYOUT $ 217,595 $ 97,961 $ 103,354 $ -
5108 SHIFT DIFFERENTIAL PAY $ 22,776 $ 24,997 $ 11,374 $ 22,262
5109 EXTRA HELP $ 676,268 $ 425,016 $ 214,638 $ 347,235
5110 OUT OF CLASS PAY $ 51,686 $ 40,000 $ 23,487 $ 40,000
5112 BAILIFF $ 49,895 $ 47,296 $ 18,296 $ 53,027
5113 BALLOT PROCESSORS $ 67,346 $ 95,662 $ 24,359 $ 64,170
5121 INTERN PAY $ 6,952 $ 5,749 $ - $ 9,476
5190 MISCELLANEOUS PAY $ 101,668 $ 361,886 $ 50,569 $ 506,224
5197 PREMIUM-RECRUITMT/RETENTION $ 6,204 $ - $ 3,055 $ 6,659
5198 SALARY REIMBURSABLE $ - $ - $ - $ 62,559
TOTAL SALARIES $ 41,150,020 $ 42,196,570 $ 20,016,636 $ 43,655,042

BENEFITS
5201 INDUSTRIAL INSURANCE $ 848,521 $ 868,198 $ 427,317 $ 911,762
5202 SOCIAL SECURITY $ 3,028,877 $ 3,107,550 $ 1,486,335 $ 3,218,739
5203 PERS RETIREMENT $ 1,843,734 $ 2,292,815 $ 971,940 $ 2,919,107
5205 CLOTHING ALLOWANCE $ 158,354 $ 226,156 $ 120,136 $ 225,315
5206 LEOFF RETIREMENT $ 444,505 $ 443,869 $ 220,167 $ 450,267
5207 MEDICAL COSTS $ 88,517 $ 203,962 $ 70,092 $ 214,160
5208 LEOFF MEDICAL INSURANCE $ 334,273 $ 413,437 $ 197,370 $ 434,109
5210 MEDICAL INSURANCE $ 6,405,906 $ 6,505,058 $ 3,073,548 $ 7,055,478
5211 DENTAL INSURANCE $ 450,464 $ 613,149 $ 226,298 $ 635,755
5213 LIFE INSURANCE $ 25,141 $ 32,441 $ 11,902 $ 33,101
5214 VISION INSURANCE $ 438 $ 139 $ 1,286 $ 2,547
5215 DISABILITY INSURANCE $ 37,575 $ 39,027 $ 17,991 $ 36,782
5216 DEPENDENT BENEFITS $ 138,694 $ 125,863 $ 64,502 $ 132,023
5217 AUTOMOBILE ALLOWANCE $ 17,249 $ 18,000 $ 9,000 $ 18,000
5220 UNEMPLOYMENT COMPENSATION $ 74,365 $ 250,000 $ 57,479 $ 145,000
5222 TIME LOSS/DEPARTMENT $ - $ - $ - $ (762,736)
5225 WAIVE MEDICAL BENEFITS $ 2,875 $ - $ 15,750 $ 29,973
5228 LEOFF REIMBURSEMENT $ 43,533 $ - $ 27,503 $ 60,000
TOTAL BENEFITS $ 13,943,021 $ 15,139,664 $ 6,998,616 $ 15,759,382

SUPPLIES
5311 OFFICE/OPERATING SUPPLIES $ 1,519,260 $ 1,594,285 $ 621,126 $ 1,510,767
5312 KITCHEN SUPPLIES $ 697,854 $ 706,705 $ 303,791 $ 866,105
5313 FIRST AID & MED. SUPPLIES $ 204 $ 2,461 $ 691 $ 1,738
5314 PRISONER PRESCRIPTIONS $ 122,362 $ 136,078 $ 42,105 $ 156,078
5315 OPERATING SUPPLIES $ - $ 900 $ - $ 900
5321 FUEL CONSUMED $ 30,017 $ 31,315 $ 17,239 $ 23,515
5351 SMALL TOOLS & EQUIPMENT $ 260,345 $ 219,620 $ 77,947 $ 201,424
5352 COMPUTER SOFTWARE $ 72,841 $ 133,425 $ 78,967 $ 166,034
5353 SMALL COMPUTER EQUIPMENT $ 165,765 $ 251,241 $ 119,168 $ 294,376
5354 TELEPHONE EQUIPMENT $ 20,538 $ 31,638 $ 7,941 $ 24,976
TOTAL SUPPLIES $ 2,889,186 $ 3,107,668 $ 1,268,975 $ 3,245,913

SERVICES
5411 ACCOUNTING & AUDITING $ 140,812 $ 140,000 $ 44,945 $ 125,000
5413 MEDICAL, DENTAL & HOSPITAL $ 301,298 $ 338,298 $ 138,530 $ 282,198
5414 COMPUTER PROGRAMMING SERVICES $ 2,432 $ 2,889 $ - $ 2,889
5415 MANAGEMENT CONSULTING $ 413,655 $ 419,127 $ 145,284 $ 410,894
5416 SPECIAL LEGAL SERVICES $ 3,599,414 $ 3,670,612 $ 1,638,759 $ 3,753,995
5417 INDIGENT BURIALS $ 3,000 $ 2,500 $ (817) $ 2,500
5418 PRISONER MEDICAL $ 1,051,973 $ 1,422,492 $ 463,328 $ 1,396,452
5419 OTHER PROFESSIONAL SERVICES $ 2,617,996 $ 2,356,925 $ 889,262 $ 2,116,398
5421 TELEPHONE $ 12,628 $ 10,621 $ 4,862 $ 9,621
5422 CELLULAR TELEPHONES $ 103,135 $ 106,208 $ 45,633 $ 98,904
5425 POSTAGE $ 383,242 $ 490,567 $ 217,869 $ 461,194
5431 MILEAGE $ 102,220 $ 100,924 $ 39,939 $ 98,274
5432 TRAVEL $ 179,683 $ 203,155 $ 81,192 $ 103,004

Attachment (5)
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 2007 2008 2008 2009
Expenditure Account Actual Budget Six Month Prelim

00001 General Fund

5433 PER DIEM $ 35,458 $ 38,868 $ 19,761 $ 20,016
5435 VEHICLE ALLOWANCE $ 2,312 $ 2,889 $ 1,224 $ 2,889
5438 NON-EMPLOYEE MILEAGE $ 190,127 $ 185,246 $ 79,855 $ 185,196
5439 NON-EMPLOYEE TRAVEL $ 22,128 $ 28,402 $ 16,960 $ 30,202
5441 ADVERTISING $ 124,766 $ 102,972 $ 24,513 $ 96,019
5451 OPERATING RENTAL/LEASES $ 612,323 $ 673,567 $ 259,089 $ 690,903
5462 PROPERTY/BOILER/MACHINERY $ 2,580 $ 2,600 $ - $ 2,600
5471 GAS $ 371,776 $ 344,976 $ 160,612 $ 396,976
5472 WATER $ 141,144 $ 113,271 $ 31,537 $ 109,671
5473 SEWER $ 85,921 $ 102,686 $ 29,988 $ 90,436
5474 ELECTRICITY $ 749,570 $ 747,300 $ 339,868 $ 632,600
5475 WASTE DISPOSAL $ 146,890 $ 121,193 $ 61,085 $ 113,339
5477 HAZARDOUS WASTE DISPOSAL $ 5,872 $ 10,866 $ 2,929 $ 10,900
5478 SURFACE WATER MANAGEMENT $ 23,697 $ 25,000 $ 25,772 $ 26,000
5481 REPAIRS & MAINT-BUILDINGS $ 112,254 $ 215,701 $ 47,358 $ 211,341
5482 REPAIRS & MAINT-IMPROVEMENTS $ 7,359 $ 8,376 $ 2,473 $ 18,376
5483 REPAIRS & MAINT-EQUIPMENT $ 138,371 $ 170,619 $ 56,524 $ 171,563
5484 REPAIRS & MAINT-COMPUTER EQUIP $ 124,430 $ 25,590 $ 17,728 $ 29,590
5491 COURT COSTS & INVESTIGATIONS $ 110,750 $ 88,811 $ 43,270 $ 118,802
5492 DUES/SUBSCRIPTIONS/MEMBERSHIPS $ 286,251 $ 299,154 $ 204,332 $ 285,267
5493 BANK & CREDIT CARD SERV FEEERV $ 3,962 $ 2,505 $ 1,893 $ 2,505
5494 FILING & RECORDING $ 592 $ 292 $ 108 $ 292
5495 WITNESS FEES $ 1,293 $ 5,215 $ 620 $ 5,215
5496 PRINTING & BINDING $ 169,261 $ 195,752 $ 73,217 $ 194,598
5497 REGISTRATION & TUITION $ 106,913 $ 142,088 $ 58,806 $ 153,692
5499 OTHER $ 173,841 $ 190,023 $ 64,623 $ 173,767
TOTAL SERVICES $ 12,661,329 $ 13,108,280 $ 5,332,931 $ 12,634,078

INTERGOVERNMENTAL
5512 PUBLIC HEALTH SERVICES $ 1,629,356 $ 1,750,043 $ 832,023 $ 1,746,013
5513 COOPERATIVE EXTENSION SERVICES $ 137,127 $ 124,622 $ - $ 122,429
5519 MISC INTERGOVERNMENTAL SERVICE $ 4,000 $ 176,500 $ 2,500 $ 23,575
5530 EXT TAXES & OPER ASSESSMENTS $ 1,173 $ - $ - $ -
5540 I/G TAXES & OPER ASSESSMENTS $ 3,323 $ 3,300 $ 341 $ 2,100
TOTAL INTERGOVENMENTAL $ 1,774,979 $ 2,054,465 $ 834,864 $ 1,894,117

CAPITAL OUTLAY
5630 OTHER IMPROVEMENTS $ 21,910 $ - $ 34,079 $ -
5641 COMPUTER EQUIPMENT $ 122,452 $ 30,000 $ 7,270 $ 165,000
5642 OTHER MACHINERY & EQUIPMENT $ 434,580 $ 1,484,903 $ 114,883 $ 1,210,602
TOTAL CAPITAL OUTLAY $ 578,942 $ 1,514,903 $ 156,232 $ 1,375,602

DEBT SERVICE
5860 OTHER DEBT SERVICE COSTS $ 838 $ 25,000 $ - $ 25,000
TOTAL DEBT SERVICE $ 838 $ 25,000 $ - $ 25,000

INTERFUND
5912 I/F I.S. SERVICE CHARGES $ 1,666,472 $ 1,600,381 $ 800,190 $ 2,037,026
5913 I/F I.S. PROG MAINT & DEV CHGS $ 943,873 $ 964,360 $ 255,761 $ 894,696
5914 I/F IS COMPUTER MAINTENANCE $ 20,588 $ 20,604 $ 10,295 $ 29,219
5917 I/F GIS SERVICE CHARGES $ 47,192 $ 49,919 $ 24,960 $ 104,159
5918 I/F GIS MAPPING SVS. $ 65,736 $ 81,173 $ 34,589 $ 81,805
5921 I/F COMMUNICATION $ 397,673 $ 398,665 $ 170,427 $ 372,810
5931 I/F SUPPLIES $ 31,237 $ 18,000 $ 11,306 $ -
5932 I/F SUPPLIES ROAD MATERIALS $ - $ 4,000 $ - $ -
5933 I/F SUPPLIES FUEL $ - $ - $ - $ 566,640
5951 I/F OPER RENTAL & LEASES $ 2,488,540 $ 2,586,480 $ 1,203,880 $ 944,274
5961 I/F INSURANCE SERVICES $ 1,392,354 $ 1,452,176 $ 726,124 $ 1,357,563
5981 I/F REPAIRS & MAINTENANCE $ 35,102 $ 17,000 $ 10,739 $ 17,000
5993 I/F TRAINING $ 17,630 $ 25,000 $ 90 $ -
5996 INDIRECT COST ALLOCATIONS $ 206,769 $ 206,769 $ 103,385 $ 266,752
5999 OTHER I/F SERVICES & CHARGES $ 239,331 $ 1,017,319 $ 12,840 $ 514,660
TOTAL INTERFUND $ 7,552,497 $ 8,441,846 $ 3,364,586 $ 7,186,604

TRANSFERS
6971 OPERATING TRANSFERS OUT $ 1,325,305 $ 2,478,281 $ 1,038,427 $ 2,687,482
TOTAL TRANSFERS $ 1,325,305 $ 2,478,281 $ 1,038,427 $ 2,687,482

GENERAL FUND EXPENSE TOTALS $ 81,876,117 $ 88,066,677 $ 39,011,267 $ 88,463,220

Attachment (5)
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