Recently, you may have read in the newspaper that the county is taking steps to tighten belts to secure our financial viability. Based on financial projections, if we continue to maintain our current level of operations, our financial reserves may approach zero near the end of 2008. In short, we cannot sustain current operations without reducing expenses, generating more revenue … or both.

While revenue collected from property taxes on existing homes can only increase 1 percent each year, cost of living increases and inflation are rising at 3 to 4 percent each year. Which means, if we continue at the same level of operations, we will continue to dip into our reserves to pay our bills. Sooner, rather than later, our reserves will run dry.

It is essential that we slow down this process to give ourselves time to seek out near-term and long-term solutions to the challenges we face. Steps we are currently taking include implementing an immediate hiring chill, eliminating all non-essential spending and seeking new sources of revenue. We are not considering any near-term layoffs or salary freezes. Kitsap County values our employees, and we want to ensure these same employees can continue to provide you with the high-quality services you deserve.

Based on the 2006 Kitsap County Customer Satisfaction Survey, most of you are satisfied with the overall level and quality of the services you receive from the county. However, our challenge is how to sustain those services when costs are increasing at a faster rate than the revenues that support them.

This situation is not unique to Kitsap County. Other counties and cities throughout Washington state face the same challenge since voter approval of I-747. At a recent Washington State Association of Counties meeting in Spokane, we heard similar stories from many other counties in Washington. This is why it is so crucial that we find new ways to keep up with the cost of living and growth.

We are asking all of our employees to adopt a spirit of efficiency in their daily work, and have asked for their understanding that we must take action now to ensure the future viability of the county. Long-term, we may also seek your help to ensure we can continue to provide you with the programs and services you depend upon.

I urge you to review your tax statement online to learn more about where your taxes go. To review your statement, go to the Kitsap County Web site at www.kitsapgov.com, click on “Treasurer” under “Departments/Offices,” and then click on “Property Taxes” and “Tax Statement Online.” Your tax statement provides a breakdown of your taxes, as well as a two-year history. It is important we all realize that assessed values have increased substantially in recent years; however, the tax rate the county receives per $1,000 of accessed value actually decreases every year.