The 2009-2010 budget is a reflection of Baker County's conservative approach to spending while continuing to provide the essential services which the citizens of the County need and expect to receive. Our revenues have grown slowly over time and we have been creative in consolidating expenses and continue to innovate to keep costs under control. This budget is essentially a maintenance budget. It continues our core functions of public safety, public health services, transportation and general government. We expect to keep services to our citizens at current rates and will continue to focus on customer service.

REVIEW OF 2008-09

TRANSPORTATION

The federal government passed a four year extension of the Secure Rural Schools Funding. This has been extremely important to our Road Department. This has allowed us to maintain our current personnel and keep the Road Department viable. With the influx of money from SB 994 ($517,000) it has allowed us to plan for more preservation projects in the County. In addition, the County will receive $480,000 in federal stimulus money to be put towards road projects. We look forward to a busy summer at the Road Department and many projects being completed. The State legislature has been working on a Transportation Enhancement Bill that may have a positive effect on road funding in our county and Representative Cliff Bentz has been instrumental in making sure that Baker County's interests are effectively represented.

PUBLIC SAFETY

Sheriff Southwick has done a great job in keeping the Sheriff's office, County Jail and Parole & Probation (P&P) staffed and functioning effectively. The State has cut funding for Community Corrections which affects the Jail and P&P. He has worked on the caseloads and has come up with plans to more efficiently deliver services with less funding.

HEALTH DEPARTMENT

The Health Department continues to be a model for the State. They completed their State audit and the State gave them a very clean review. They have been training extensively for pandemic events and when the Swine Flu issues arose, they were on top of the situation and were extremely informed and professional. Fortunately we believe that the outbreak will have little effect on our citizens but we are prepared for what may come our way. Congratulations to Becky Sanders and all the crew for their hard work.

PARKS

We have completed the Comfort Station at Holcomb Park and are applying for grants to begin work on the new campsites for the Park. We look forward to completing the next phase of the project next year.

FAIRGROUNDS

The Fair Board has been extremely active in pursuing funding to complete the Events Center. They are just completing the public meeting rooms at this time and will begin work on the office space for OSU Extension and the Fair Board. The Fair Board should be commended on all of their hard work associated with the renovation of the old Armory.

FACILITIES

We have a new crew in Facilities and they are aggressively addressing maintenance and up-keep of the County facilities. Stop in and check out the men's restroom! Tours can be booked through my office. The historic Tower Clock is due back in Baker City at the end of this month and the crew is busy cleaning and working on the clock tower. We recently sanded and painted the dials of the clock and sandblasted the glass. You will also notice new louvers in the clock tower. We plan on having a 100 year birthday party here at the County when the clock is reassembled.

1. MISC.

The County has reactivated the Natural Resource Advisory Committee and they are working on a Baker County Natural Resource Plan. This committee will be involved with all natural resource issues which include the Wallowa-Whitman Forest Plan, the Wallowa-Whitman Travel Management Plan, the Snow Basin Vegetative Plan, BLM Resource Management Plan, and wolf issues. We are staffing this committee in our planning department and we expect that this group will provide much needed information and communication with the Board of Commissioners.

REVENUE OVERVIEW

Property Taxes are estimated to be up approximately 3%

1. Justice Court revenues are declining
2. PILT funding is now funded at 100% by the federal government. It is projected to nearly double from last year.

State funding is projected lower

1. Community Corrections
2. 911 Funds Oregon
3. Commission on Children and Families
4. Fee based income is projected steady to a bit lower

EXPENSES OVERVIEW

1. The bulk of the County Expenditures are in personnel.
2. SEIU, non-represented employees and elected officials receive a 2% wage increase. They pay 5% of their health premium.
3. Law Enforcement unit receive a 4% by contract pay increase. They pay nothing for health insurance.
4. Health insurance costs are projected at a 12% increase.
5. PERS rates are down 15% from last year.
6. No new major programs are funded in the budget.
7. Department budgets are flat.

2009-10 BUDGET SUMMARY

The budget before you today is a maintenance budget. The Commissioners' objective has always been to live within our means and provide essential services to our citizens. Today and tomorrow we look forward to direction and insight from the budget board.The general fund budget is projected at $8,914,685, down about $23,000 from last year. Our projected ending fund balance is $1,269,693, up nearly $37,000. These are in line with our goal of keeping at least $1.2 million in the budget to carry us until tax time.I believe that this budget reflects the current needs of the citizens of Baker County. It includes a $125,000 transfer from the general fund to the Road Department which begins to reflect the ratcheting down of Secure Schools payments. It takes care of our dedicated employees who have consistently delivered exceptional service and are truly servants of the people. Service and commitment to the citizens of Baker County is our goal and I want to thank all employees for a job well done. I look forward to your thoughts on the proposed budget.

Thank you,

Fred Warner Jr.