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2025-13-Minutes for Meeting December 02,2024 Recorded 1/10/2025'�v'TES COG�� BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 1:00 PM Recorded in Deschutes County OJ2025-13 Steve Dennison, County Clerk Commissioners' Journal 01 /10/2025 1:48:39 PM .,,,,r-. 11®1 I �f II I®1111 1111 I� I I 1 1111 I,I 11 II I1111111 II II I I 11111 2025-13 BOCC MEETING MINUTES MONDAY December 2, 2024 Allen Room Live Streamed Video Present were Commissioners Patti Adair, Anthony DeBone and Phil Chang. Also present were Deputy County Administrator Whitney Hale; Deputy County Administrator Erik Kropp; Senior Assistant Legal Counsel Kim Riley; and BOCC Executive Assistant Brenda Fritsvold. This meeting was audio and video recorded and can be accessed at the Deschutes County Meeting Portal webpage www.deschutes.org/meetings. CALL TO ORDER: Chair Adair called the meeting to order at 1:01 pm. CITIZEN INPUT: None AGENDA ITEMS: 1. Oregon State Fire Marshal Community Wildfire Risk Reduction Grant Kevin Moriarty, County Forester, sought authorization to accept grant funds for the removal of ladder fuels and small trees on approximately 50 acres located in the Juniper Ridge area on property owned by the City of Bend. The purpose of this work is to establish a 3.5 mile, 200-foot-wide shaded fuel break to help protect against wildfires. Moriarty said although the Oregon State Fire Marshal (OSFM) rejected the original application for this work, it allowed the County to submit a revised application which was subsequently approved, with $75,000 being awarded. BOCC MEETING DECEMBER 2, 2024 PAGE 1 OF 5 In response to Commissioner Chang, Moriarty said the original proposal was not accepted because it risked displacing homeless encampments. Moriarty added that the project is intended to reduce the risk of fires for encampments and surrounding residential areas such asJD Estates. Commissioner Adair asked if the project will preserve bitterbrush, which is a food source for mule deer. Moriarty said the work will aim to reduce all vegetation in the defined fuel break area, but the bitterbrush will not be completely eradicated. He presumed this area contains sufficient bitterbrush for wildlife. Responding to Commissioner Chang, Moriarty said the grant does not allow removing any tree over eight inches in diameter, but larger junipers which remain will be limbed to reduce available fire fuels. DEBONE: Move approval to accept $75,000 in grant funding from the Oregon Department of the State Fire Marshal for Community Wildfire Risk Reduction efforts, and authorize the County Administrator to sign Document No. 2024-902 accepting the grant CHANG: Second VOTE: CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried Commissioner Adair stated her interest in learning more about the eight -inch rule. Commissioner Chang knew of no prohibition on removing the larger junipers in this area, although it appears that cannot be done with these grant funds. 2. FY 2026 Preliminary General Fund Budget Discussion Cam Sparks, Budget & Financial Planning Manager, said because the General Fund is structurally imbalanced with the result that a budget deficit is anticipated by 2027, Finance and Admin have proposed limiting departmental expenditure growth to 3.3% in Fiscal Year (FY) 2026 in addition to other strategies for focused savings in the interest of assuring sustainability. Sparks sought direction from the Board on six specific proposals which together would generate approximately $967,000 in annual savings, as follows: BOCC MEETING DECEMBER 2, 2024 PAGE 2 OF 5 Shift two Behavioral Health positions from the General Fund to Behavioral Health's budget and use this department's reserve if needed to cover costs (approximately $334,000 annually). Commissioner Chang expressed concern that these two positions provide crisis level services, saying the County must demonstrate a commitment to allocate General Fund revenues to such services, especially when seeking funding from the State or other sources for the Stabilization Center. Noting that Behavioral Health has a large reserve, Commissioner Adair said if it is possible to fund these positions with Behavioral Health dollars, that should be done. Commissioner DeBone supported this proposal at this time. 2. Remove the $100,000 General Fund transfer to the Community Development Department for Hearings Officer services, with CDD absorbing this cost and incorporating it into existing fees. A majority of the Commissioners supported this proposal. 3. As was done in 2024, again utilize some Video Lottery funds in support of core County services. Specifically, pay $480,000 of debt service for a) the jail expansion project ($260,000/year) and b) the Jamison Property ($220,000/year) from video lottery funds. Commissioner Chang said while this proposal makes sense, the County may receive other requests for Video Lottery Funds, including from Environmental Health. Commissioner DeBone wanted to defend video lottery funds for economic development. In response to Commissioner DeBone, Deputy County Administrator Whitney Hale said the Jamison property will be paid off in 2028. A majority of the Commissioners supported this proposal. 4. Move the $12,500/year Eastern Oregon County (EOCA) membership to the BOCC budget. A majority of the Commissioners supported this proposal. BOCC MEETING DECEMBER 2, 2024 PAGE 3 OF 5 Commissioner Chang stated his preference to not continue this membership. 5. Reduce or eliminate the annual $120,000 transfer from the General Fund to the Assessor/Clerk/Tax Reserve Fund, the purpose of which is to save funds for the eventual replacement of the County's assessment and taxation software. The reserve fund has a current balance of $2 million. In response to questions, Chief Financial Officer Robert Tintle said a new software system could cost between $5 million and $10 million. A majority of the Commissioners supported transferring $60,000 annually from the General Fund to this reserve fund. Commissioner Adair noted that the County is earning interest on the $2 million in the reserve fund. 6. No external commitments of General Fund. CHANG: VOTE OTHER ITEMS: Move approval to accept the proposed changes to achieve savings in the General Fund for FY 2026 as presented and continue the annual transfer from the General Fund to the Assessor/Clerk/Tax Reserve Fund at the reduced amount of $60,000/year Second CHANG: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried • Commissioner DeBone reported that COIC received a presentation from the Citizen's Assembly regarding the project undertaken on youth homelessness. He sought input in deciding an action item for Deschutes County. The Commissioners accepted Deputy County Administrator Erik Kropp's offer to coordinate with the Citizen's Assembly to bring this matter before the Board. Commissioner Chang said he will not be able to attend the Board's meeting this Wednesday as he will be at an all -day meeting of the Oregon Transportation Commission. He expressed disappointment regarding several important things on the Board's meeting agenda which he will miss and spoke to three in particular: 1. He stated his support for offering curbside recycling as a subscription service for rural residents; 2. He supported adding a wastewater specialist to keep up with inspections and protect groundwater quality; and 3. With regard to the Rural Housing Profile, he referred to a number of things he wanted to see included in this, BOCC MEETING DECEMBER 2, 2024 PAGE 4 OF 5 said the growth of housing in Deschutes County is projected to be small, and said it is not necessary to leave lands open for possible new destination resorts. EXECUTIVE SESSION: At 1:52 pm, the Board entered executive session under ORS 192.660 (2) (e) Real Property Negotiations. At 2:42 pm, the executive session concluded and the public was invited to return to the room. The Board then directed staff to proceed as discussed during the executive session. ADJOURN: Being no further items to come before the Board, the meeting was adjourned at 2:43 pm. Alk— 20?,6` DATED this _ day of 2D24"for the Deschutes County Board of Commissioners. PATTI ADAIR, CHAIR ATTEST: �� ' 4vw RECORDING SECRETARY ANTHONY DEBONE, VICE CHAIR PHIL CHANG, CAAMISSIONER BOCC MEETING DECEMBER 2, 2024 PAGE 5 OF 5 EScCBOARD OF pG COMMISSIONERS BOARD OF COUNTY COMMISSIONERS MEETING 1:00 PM, MONDAY, DECEMBER 2, 2024 Allen Room - Deschutes Services Building - 1300 NW Wall Street - Bend (541) 388-6570 1 www.deschutes.or� MEETING FORMAT: In accordance with Oregon state law, this meeting is open to the public and can be accessed and attended in person or remotely, with the exception of any executive session. Members of the public may view the meeting in real time via YouTube using this link: http://bit.11y/3mminzy. To attend the meeting virtually via Zoom, see below. Citizen Input: The public may comment on any topic that is not on the current agenda. Alternatively, comments may be submitted on any topic at any time by emailing citizeninput@deschutes.org or leaving a voice message at 541-385-1734. When in -person comment from the public is allowed at the meeting, public comment will also be allowed via computer, phone or other virtual means. Zoom Meeting Information: This meeting may be accessed via Zoom using a phone or computer. • To join the meeting via Zoom from a computer, use this link: http://bit.ly/3h3oadD. • To join by phone, call 253-215-8782 and enter webinar ID # 899 4635 9970 followed by the passcode 013510. • If joining by a browser, use the raise hand icon to indicate you would like to provide public comment, if and when allowed. If using a phone, press *9 to indicate you would like to speak and *6 to unmute yourself when you are called on. • When it is your turn to provide testimony, you will be promoted from an attendee to a panelist. You may experience a brief pause as your meeting status changes. Once you have joined as a panelist, you will be able to turn on your camera, if you would like to. Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. • J If you need accommodations to make participation possible, call (541) 388-6572 or WAO email brenda.fritsvold@deschutes.org. Time estimates: The times listed on agenda items are estimates only. Generally, items will be heard in sequential order and items, including public hearings, may be heard before or after their listed times. CALL TO ORDER CITIZEN INPUT: Citizen Input may be provided as comment on any topic that is not on the agenda. Note: In addition to the option of providing in -person comments at the meeting, citizen input comments may be emailed to citizeninput@deschutes.org or you may leave a brief voicemail at 541.385.1734.. AGENDA ITEMS Oregon State Fire Marshal Community Wildfire Risk Reduction Grant 2. FY 2026 Preliminary General Fund Budget Discussion OTHER ITEMS These can be any items not included on the agenda that the Commissioners wish to discuss as part of the meeting, pursuant to ORS 192.640. EXECUTIVE SESSION At any time during the meeting, an executive session could be called to address issues relating to ORS 192.660(2)(e), real property negotiations, ORS 192.660(2)(h), litigation; ORS 192.660(2)(d), labor negotiations, ORS 192.660(2)(b), personnel issues, or other executive session categories. Executive sessions are closed to the public, however, with few exceptions and under specific guidelines, are open to the media. 3. Executive Session under ORS 192.660 (2) (e) Real Property Negotiations ADJOURN December 2, 2024 BOARD OF COUNTY COMMISSIONERS MEETING Page 2 of 2 MEETING DATE: BOARD OF COMMISSIONERS December 2, 2024 SUBJECT: FY 2026 Preliminary General Fund Budget Discussion RECOMMENDED MOTION: Direct staff to prepare the County's FY 2026 budget with items 1-6 as presented, or with modifications, to contribute to the future financial sustainability in the General Fund. BACKGROUND AND POLICY IMPLICATIONS: The General Fund is facing a structural imbalance, and long-term projections indicate a potential budget shortfall as early as Fiscal Year 2027, unless corrective action is taken. In response, Finance and Administration are implementing a series of strategies for the County's FY 2026 budget aimed at achieving long-term sustainability through targeted savings and controlled growth within the General Fund. Finance staff have developed modeling scenarios that incorporate a 3.3% growth in General Fund departmental expenditures in FY 2026 (4.0% in FY27 and 5.0% thereafter), along with several strategic modifications and realignments identified to benefit the General Fund. These measures, outlined below, will generate approximately $967,000 in annual savings. Together, these two strategies will help achieve structural balance and financial sustainability within the General Fund for the next nine years. Staff seeks Board direction on the following proposed adjustments for recurring expenditures in the County's General Fund. The Board's direction on these items will help staff to prepare the FY 2026 budget. If the proposed adjustments are not approved as presented, staff will need to adjust the target growth rate for departmental expenditures or identify other savings in order to ensure financial sustainability. 1. Shift two Behavioral Health positions from the General Fund to Behavioral Health's budget and use BH reserve if needed to cover costs, which are approximately $334,000 annually. 2. Remove CDD Transfer for Hearings Officer - $100,000 per year. This cost will be absorbed and incorporated into existing fees. CDD staff will provide fee modeling to quantify the impact of this change. 3. In 2024, the Board allocated $500,000 of Video Lottery funds in support of core County services. Staff proposes that this year, the Board maintain a similar allocation of funds to support core county services. This would be achieved by moving $480,000 of debt service from the General Fund to Video Lottery. • Jail Expansion Debt Service of $260,000 per year (Matures in 2038) and Jamison Property (P&P) of $220,000 per year (Matures in 2028). 4. Move $12,500/year Eastern Oregon County Membership to BOCC budget. 5. Reduce transfer to Assessor/Clerk/Tax Reserve Fund. This reserve fund is designated for the eventual replacement of the County's Assessment and Taxation software. Currently, the fund has a balance of $2 million, and while a portion of the replacement will need to be debt -financed, this strategy will free up these funds in the short term for General Fund operations. o Option 1: Reduce from $120,000 to $80,000 in FY26; $40,000 in FY 27 and eliminate the transfer in FY28 and beyond. o Option 2: Eliminate $120,000 transfer beginning in FY26, which could partially offset another item. 6. No external commitments of General Fund. Alternatively, Transient Room Tax (TRT) funds could be used for items 2 and 3 if proposed approach wasn't approved; however, this would reduce the amount the TRT fund could contribute to the Capital Reserve Fund. Additionally, approval for other strategic reallocations related to the TRT fund will be forthcoming at a later date. BUDGET IMPACTS: Approval of these proposed adjustments will generate $967,000 in annual savings and help the County achieve structural balance and long-term financial sustainability within the General Fund. ATTENDANCE: Robert Tintle, Chief Financial Officer Cam Sparks, Budget & Financial Planning Manager Whitney Hale, Deputy County Administrator