Deschutes County is still trying to unwind some budgeting moves made in the wake of the last recession.

Commissioners met Monday in an early-stage discussion of next year’s budget, and the assumptions used to predict the county’s revenues and expenses.

The county must have its 2017-18 budget in place by July 1.

Commissioner Tammy Baney said the 2008-09 recession hit the county hard, resulting in the layoffs of around 50 county employees.

Departments that are largely self-funding through fees and other means shrank sharply, and in some cases, the property tax-supported general fund was used to subsidize struggling county departments.

Baney said not all of those reallocations of funds have been changed back to reflect improved economic conditions. For instance, she said the Deschutes County Fair & Expo Center had its most profitable year ever in 2016 but still received approximately $250,000 from the county’s general fund, money that might be better spent on higher priorities.

Finance director Wayne Lowry said activity at the Deschutes County Clerk’s Office points to continued strength in the real estate and development sectors expanding the county’s tax base. In December, the clerk’s office brought in $147,000 in filing and recording fees, Lowry said, the highest figure for any December since 2007.

Lowry said the county is assuming a 4.5 percent increase in the assessed value of all taxable property in the county, a figure that includes increasing value of existing property and newly built or improved properties.

Lowry said the county plans to assume a 2 percent cost of living increase for employees across all departments, reflecting existing contract obligations and contracts that are still being negotiated with bargaining units including the Sheriff’s Office and the 911 district.

Expenses related to the Public Employees Retirement System are an ongoing concern for the county’s finances. Fulfilling the county’s PERS obligations for non-law enforcement employees is projected to cost around 24 percent of the payroll for those same employees — for every $100,000 spent on employee compensation, another $24,000 must go in to the retirement system. County estimates suggest obligation could rise to 32 percent by the 2021-22 budget year.

Baney said the PERS obligations are unsustainable and could force the county to eventually look in to replacing some of its employees with contract workers who would not be eligible for PERS.

One bright spot for the county is in the cost of providing health insurance for employees, which is expected to increase by 2.5 percent next year. Baney said the projected increase is impressively small, given the much larger expected price increases for most health insurance policies.

Phil Henderson, elected to the commission for the first time during fall, said he continues to have concerns about how the county’s budget increases every year and requested a future discussion to help distinguish between “real needs” and “desired needs.” Baney and Commission Chairman Tony DeBone said they were open to such a discussion as the budget process moves ahead.

— Reporter: 541-383-0387, 
shammers@bendbulletin.com