Receive the 2023-24 Midyear Budget Monitor report, adopt a budget resolution amending 2023-24 revenues and appropriations, and approve changes to the 2023-24 Authorized Equipment List. (General fund impact: $99,775) (4/5 vote required) (Haynes/Liddicoet) (Est. Time: 15 min.)

This report provides the Board of Supervisors with a midyear update on the 2023-24 budget.  As part of the budget monitoring process, year-end revenue and expenditure projections were developed by each department and reviewed by the Department of Financial Services.  Overall, most departments are projected to end the year in balance.  The sections below provide additional information on departments and program areas that are projecting significant variances or that require close monitoring.  A detailed summary of the midyear projections for each department is provided in Attachment A. For those budget units where staff recommends a budget adjustment, it is noted in the narrative and included in the budget resolution provided in Attachment B.

In alignment with direction from the Board, requested position additions, deletions, conversions and reallocations have been included in departmental narratives.  Unless otherwise directed by the BOS, an HR Comprehensive Item, containing the referenced HR items will be included for approval on the March 12, 2024 BOS agenda.

Agriculture: Agriculture is projecting to end the fiscal year with a positive net variance of approximately $361,68 primarily due to vacancy savings.

Agriculture’s main operating fund is projecting a surplus of $412,490 in Salaries and Benefits due to ongoing vacancies, as well as a decrease in extra help due to growers not requesting as much fieldwalking as prior years. There is also a surplus of $72,246 in Services and Supplies due to decreased charges for the Call Center Agreement with the State. These surpluses are offset by a $121,947 decrease in revenues. This is due mostly to a decrease in reimbursable expenses for the Call Center Agreement as well as the Dog Team Agreement. The County has been unable to obtain dogs to perform services but has received approval to begin bringing this service in-house for future years. There is also a decline in fines of about $10,000 due to increased outreach performed by staff, limiting the number of fines and penalties levied.

The department is requesting to appropriate $816,000 from available fund balance in their Building Replacement Fund to begin their anticipated move to Main Street.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust Agriculture's budget as described above.

Assessor/Clerk-Recorder/Elections: The Assessor/Clerk-Recorder/Elections department is projecting a positive variance of $1.2 million, with savings anticipated in each of the department’s divisions.

The Assessor’s office is projecting a positive variance of $448,000, which is primarily due to ongoing vacancies in the unit. Savings also exist in Services and Supplies due to lower expenses for GIS projects and a budgeting error related to the Megabyte system that resulted in savings of approximately $144,000.  Additionally, the department has decided to move away from the State Supplementation for County Assessor’s Program (SCAAP) Tyler Technologies project and instead implement Just Appraised, a significantly cheaper solution.  These expenditure savings are partially offset by a decrease in State Revenues of $82,000 due to no longer seeking reimbursement for costs related to the Tyler Technologies project.  These year-end estimates also include a newly implemented incentive of $10,000 for external new hires in the classification of Deputy Assessor hired between the dates of Feb 5,2024 and June 30, 2024.

The Elections division is also projecting a positive net variance of $134,000.  This is attributed to $200,000 in unanticipated revenues from the Knights Landing Community Services district election as well as local city and school district elections that were added to the March 2024 ballot.  Additionally, the Elections division was awarded three grants totaling $176,500 that are to be used for the division’s security upgrade construction project.  Offsetting the increase in revenues are additional capital costs ($178,600) related to the construction project as well as an increase in Salaries and Benefits costs due to position conversions throughout the year ($48,177). 

The Clerk Recorder’s office is projecting a positive variance of $603,000.  The office is projecting salary savings of approximately $97,000 due to vacancies in the division.  Additionally, a surplus in Services and Supplies is projected due to delays with the US Imaging project.  This project was budgeted to be completed in the current fiscal year; however, the department now anticipates it will be completed in FY2024-25.  Adding to the surplus is an estimated $218,000 in additional recording fee revenues that were originally expected to be much lower as an economic recession was expected at the time of budget planning.

Board of Supervisors: The Board of Supervisors in projecting a $24,000 net negative variance.  This variance is related to carryforward from the Community Benefit Fund in FY 23-24 that was omitted from the Adopted Budget. This variance was identified in the weeks following the Adopted Budget process, and the use of General Fund contingency is recommended to balance the unit.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust Board of Supervisors budget as described above.

Capital Improvement Projects: The Capital Improvement Program is projecting a positive net variance of $9.4 million due to anticipated savings in the Knights Landing Levee and Walnut Park Library projects.

The Knights Landing Levee project is projecting a net positive year-end variance of $131,000. While the project is projecting expenditure savings of approximately $2.1 million, it is also anticipating lower than budgeted revenues, as the Department of Community Services is working with FEMA on reimbursements.  The department has requested a grant extension for this project, extending the completion date to April of 2026.  Delays were experienced due to the 2023 winter storm season.

The Walnut Park Library fund is projecting a year end positive variance of $9.3 million, as transfers of identified and approved funding sources are scheduled to occur this year.  These excess revenues will fall to fund balance at the end of the fiscal year and will be available for appropriation in future fiscal years.

The Yolo Library Replacement project has requested a budget adjustment to reflect transfer of $40,000 in previously approved ARPA funding.  This transfer is necessary to balance the entirety of the project.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust Capital Improvement Projects budget as described above.

Colusa-Sutter-Yolo Regional Child Support Agency:  The Colusa-Sutter-Yolo Regional Child Support Agency (RCSA) is projecting a positive net variance of $250,000 due primarily to additional State and Federal Funding and vacancy savings. The department has requested and expects to receive an additional $175,000 from State and Federal sources despite decreased Salary and Benefit costs of about $150,000 available for reimbursement. The department requests to transfer approximately $75,000 of Salary and Benefit savings to Service and Supplies to pay for increased building maintenance, travel and training expenses, and IT Services. The final net variance of $250,000 is related to Federal Performance Incentive Funds the department will be able to reserve for future projects.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust Child Support Services’ budget as described above.

Community Services: The Community Services department is projecting a positive net variance of $1.6 million, primarily due to various vacancy savings in Roads and Integrated Waste Management.

The IWM Main Operations fund is projecting a positive net variance of approximately $300,000. This is primarily due to a significant salary savings of $715,000 due to vacancies in the Landfill Operations Manager, Recycling Supervisor, Recycling Specialist, and Scale house Supervisors (2). This is partially offset by an expected decrease in revenues of $588,000 in charges for services, however staff has been limited and a backlog of entries have not been booked. An updated estimate will be provided at 3^rd Quarter Monitor. . Additional savings are seen in Capital Assets where some projects are progressing more slowly than budgeted. The department is currently expecting to spend all Service and Supply appropriations as several unknown contracts have developed, requiring midyear adjustments already approved by the Board.

The Roads fund is projecting a positive net variance of approximately $800,000 due to several factors. The division is projecting $275,000 in vacancy savings due to various vacancies throughout the year. Additionally, Services and Supplies is projecting a savings of about $200,000 due to some projects not moving forward as expected. There is a large positive variance of $6.7 million in Capital Assets due to road projects being budgeted that take multiple years to complete. The majority of that variance is offset by decreased State and Federal revenues ($6.5 million) which fund the projects. Incomplete projects will be re-budgeted in future fiscal years until completion. Additionally, there is a $75,000 negative variance in Licenses and Permits as road privileges and permits are trending lower this year than prior years.

Planning is projecting a positive net variance of $100,000 but is projecting significantly lower revenue and expenditures than budgeted. This is due to lower Cannabis Use Permit Applications. The deadline was extended to December 2023, but fewer applications were received than expected. This decreases both revenue received in licenses and permits as well as expenditures in Services and Supplies by $400,000. Additionally, there are savings of about $70,000 in Salary and Benefits due to a vacant Senior Planner position and $35,000 in additional revenue related to staff billings.

The department is requesting to transfer about $70,000 from Salaries and Benefits to Services and Supplies in the Climate Sustainability unit to correct a budgeting error  in how members of the CivicSpark Fellowship program are compensated. Additionally, the department is requesting to add a Limited Term Accounting Technician to meet the additional fiscal requirements placed on the department with recent organizational changes, such as incorporation of the Animal Services unit. The cost for this is approximately $30,000 this fiscal year and $105,000 for a full fiscal year. The current fiscal year will be covered with operational savings available in the unit.

The Animal Services division is in the process of being transitioned from the Sheriff’s Office to the Department of Community Services.  Information regarding the financial results of the first half of the fiscal year are provided in the Sheriff’s portion of this narrative.  DCS is now responsible for the division and has requested budget adjustments. Specifically, the Animal Services unit also would like to renovate and furnish a portion of the vacant modular building adjacent to the Juvenile Detention Facility. These renovations will allow adequate space to create a surgical center for veterinary services. The total cost is expected to be approximately $650,000. Staff recommends the use of $500,000 in available fund balance in addition to $150,000 of Accumulated Capital Outlay (ACO) funds for this project.

Additionally, Animal Services requested a new modular building for the program at a cost of $1,165,000. Discussion of this request will be included within a separate Animal Services item on the 2/27/24 agenda.  

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Community Services’ budget as described above.

County Administrator’s Office: The County Administrator’s Office (CAO) is projecting net positive variance of $39,000 due to an anticipated eight month long vacancy in the Diversity, Equity and Inclusion program manager position The full amount of this projected savings ($55,000) is not being realized due to a projected deficit ($16,000) in the Office of Emergency Services (OES).

The projected $16,000 net negative variance in OES is related to implementation of the Genesay Evacuation System, which is recommended by the Fire Safety Counsel after analysis of gaps in the County’s evacuation preparedness system.  The total annual system cost is $22,000 per year; however, each of the six partner agencies have agreed to each contribute $1,000 towards the annual cost. Staff recommend use of General Fund contingency in the amount of $16,000 for the Office of Emergency Services to implement the Genesay Evacuation system.  The ongoing annual expense will be included in the 2024-25 fiscal year budget.

The remainder of programs overseen by the CAO are anticipated to end the year within budgeted amounts.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Administrator Office’s budget as described above.

Countywide: Countywide is projecting a year end net negative variance of $289,000 due to higher than anticipated expenditures ($449,000) in the Public Safety MOE. General Services work orders for both the District Attorney and Sheriff are anticipated to exceed budgeted amounts by $288,000. Staff in the Department of Financial Services will be reviewing the MOE regularly and will provide an updated projection at Third Quarter.

Staff recommend an $18,310 adjustment to the Development Impact Fees budget to provide appropriation for the required DIF study to be completed by Willdan. This increase will be funded by available fund balance.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Countywide budget as described above.

County Counsel: County Counsel (CCL) is projecting to end the fiscal year with a positive net variance of $171,428 primarily due to vacancy savings. CCL is projecting $197,479 in savings in Salary and Benefits due to a Deputy County Counsel position being vacated for 4 months and several staff changes that resulted in lower overall expenses. This also reduces reimbursement from legal services billing, offsetting some of the savings. Additional savings are in Indigent Defense as Services and Supplies are expected to be expended $52,025 under budget due to lower than expected costs for the conflict panel.

County Service Areas: The County Service Areas are projecting to end the fiscal year with a positive net variance of $59,031.

North Davis Meadows Sewer division is projecting a surplus of approximately $38,380 due to increased investment allocation but will not spend approximately $6.25 million on construction for the water project as it is currently going out for bids and will likely be delayed until next year. The project utilizes state and federal reimbursement.

Wild Wings Golf Course is projecting a $62,352 deficit, mostly related to the cessation of a management agreement to run the golf course. County staff will temporarily manage the course, resulting in unexpected salary expenditures for temporary staffing sourced from available operating funds within the unit. Staff recommend use of $59,688 in General Fund Contingency to correct an A/P billing error that was found this fiscal year, resulting in additional unforeseen expenditures.

Wild Wings Water and Sewer are currently undergoing a Prop 218 process which may have a significant impact on rates. If the proposition passes, revenues will be significantly reduced.

El Macero Water is projecting a net negative variance of about $134,000 due to receiving less revenue than expected from water billings. Any overages will be funded through use of fund balance.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Service Area’s budget as described above.

District Attorney: The District Attorney’s Office is projecting an overall positive net variance of approximately $6.2 million. A significant portion of this variance, $5.8 million, is due to unanticipated revenue in the Consumer Fraud/Environmental Protection Fund. Two unanticipated settlements were received in the first half of the current fiscal year, exceeding budgeted penalties revenue by $4.6 million.  The fund also received unanticipated state revenue ($300,000) to offset growing costs for document storage. Any surplus in this fund will fall to fund balance to be reappropriated in future fiscal years.

Within the Public Safety fund, the department is projecting a $116,000 net positive variance.   The Criminal Prosecution division, while also projecting small shortfalls in revenue due to lower than anticipated Recording fees in the Real Estate Fraud unit and seeing lower than anticipated expenses for grant reimbursement revenue, is projecting a $500,000 positive variance in Salaries and Benefits. The department has experienced difficulties in filling vacant positions, largely due to the length of time the background screening process can take. A small savings in Services and Supplies is also anticipated. Both of these savings are offsetting projected revenue losses, leaving the division with a $334,393 positive variance.

The Restorative Justice Partnership is projecting a negative net variance of $49,000 due to delays in implementation of a new Prop 47 grant held by the Health and Human Services Agency.   The grant, which funds a Paralegal in the DA’s office, was originally intended to provide reimbursement for costs beginning on July 1, 2023.  However, reimbursement only became available beginning January 1, 2024.  The department is attempting to mitigate the amount of the variance and expects to have more information during the Third Quarter monitoring process.

Special Investigations is also projecting a year-end deficit of approximately $144,000.  The majority of this negative variance ($113,000) is related to lower than anticipated revenues in both the Works Compensation and Auto Fraud grants.  The department is also expecting Salaries and Benefits to exceed budget by $20,000 due to a bargained increase in incentives for DA Investigators. This increase was not anticipated.  The department plans to absorb both the Special Investigation and Restorative Justice Partnership negative variances with anticipated savings in Criminal Prosecution.

Net positive variances exist in the majority of other DA special revenue funds. Any surplus available at year-end will fall to fund balance.  The Asset Forfeiture fund is projecting a year-end deficit of $72,000 due to timing issues related to reimbursement from the Federal government.  While the department is waiting on several forfeitures, the time of those receipts is not known.  The fund has available fund balance to cover the variance.

The District Attorney is requesting, with support from Human Resources and CAO, the addition of two provisions related to benefits and compensation for the unrepresented law enforcement positions of Chief District Attorney Investigator and Assistant Chief District Attorney Investigator.  The first is to authorize an increase in education and POST incentive pays for these positions, effective July 2, 2023, in the amounts of: Seven and one half percent (7.5%) for possession of Bachelor of Arts degree or POST Advanced Certificate, Five percent (5.0%) for possession of POST Supervisory Certificate, and Five percent (5.0%) for possession of POST Management.  The second request is to authorize prior sworn safety experience with a law enforcement agency to be credited towards years of County service solely for the purpose of calculating longevity, effective August 13, 2023. The addition of these provisions will ensure consistency and parity between these unrepresented classes and their subordinate class of District Attorney Lieutenant.  This consistency supports internal advancement and succession planning of employees in this job series.  Two incumbents are impacted by these recommendations.

Financial Services: The Department of Financial Services is projecting to end the fiscal year with a positive variance of approximately $270,000, primarily due to vacancy savings of $584,040. There are several vacancies throughout the department currently, including an Accountant III (3), an Accountant II, an Audit Manager, and an Administrative Services Analyst. Additionally, the Chief Financial Officer and Deputy Chief Financial Officer positions were vacated for portions of the fiscal year. A decrease in expenses transferred to other departments offsets this increase by about $203,000 as well as some contractual increases and additional mailing costs related to the West Sacramento property tax correction. Staff recommends transferring vacancy savings to cover these increased costs. Additionally, DFS requests to convert a limited term Accountant II to permanent, and reallocate a vacant Auditor II position to Auditor III.  The limited term Accountant II is currently budgeted for, so converting the position to permanent will not result in a fiscal impact in 2023-24. The reallocation of the Auditor II to Auditor III is needed to increase the productivity and effectiveness of the Internal Audit function and reduce reliance on contract audit firms.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust Finance’s budget as described above.

General Services: The General Services department is projecting to end the fiscal year with an overall positive net variance of $398,000.  The positive variance can be attributed to two divisions, Facilities ($263,000) and Parks ($124,000). The Facilities variance is tied to a series of short-term vacancies throughout the fiscal year, such as Project Division Manager and Fiscal Administrative Officer, resulting in projected savings of approximately $46,000.  Additional savings of $306,000 exist in Services and Supplies due to funds that are set aside for emergency repairs and also because a department billing methodology related to building maintenance and improvements that allows the department flexibility with departmental billings.  The entirety of this surplus is not being realized due to anticipated reductions ($75,000) in revenue, due to the vacancy of the Projects Division Manager and the department no longer able to oversee some IT platforms as they originally anticipated.  The department is requesting appropriations for the already approved ACO funds of $149,203 for the Monroe Shower Pans Project that will be completed this fiscal year.  Funding for this project was included in the ACO budget.

The Parks positive variance of $124,000 can be attributed to salary savings ($97,000) due to the vacant Projects Division Manager, underfilling positions in the unit, as well as the Supervising Parks and Facilities Worker not being filled until mid-February.  Though additional vacancies exist, General Services has made a reasonable assumption that these positions will be filled by March 2024.

The department is requesting to recognize revenues and expenses in the Parks Division related to the Yolo Basin Foundation in the amount of $33,430 due to budgeting error.  A minor adjustment is recommended in the Procurement division, shifting anticipated Salary and Benefit savings to fund increased auditing expenses.

The Airport is anticipating additional Federal funding related to the Airport Run-Up Apron project ($159,002) and has requested that revenue and additional project expenses be added to the Airport budget.

General Services has also requested a series of adjustments to their authorized positions that will allow for more responsive services and provide additional administrative oversight. These changes include the following:
 

While the requested actions do have a net General Fund impact of $28,000, the department plans to underfill three other positions within the department in order to offset the cost of the requested actions.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the General Services budget as described above.                                        
            
Health and Human Services Agency: The Health and Human Services Agency (HHSA) has developed an updated accounting structure since the adoption of the FY23-24 budget. The department is currently integrating the adopted budget into the new structure, and this monitoring report includes information in the new structure. As the process is fully completed, further updates will be provided. 

HHSA is projecting a positive net variance of $1.6 million for the end of the fiscal year, primarily due to vacancy savings throughout their branches. The majority of these positions are funded by intergovernmental revenues, which explains the decrease of about $7.5 million in revenues across their operating funds. Additionally, the Crisis Now project implementation has been delayed and accounts for much of the decrease in revenue as well, though it will be used in future years.

Adult & Aging is projecting a $330,000 negative variance due to significant increases in core mental health and substance use disorder contracts. In total, the contracts account for about a $2 million increase. However, HHSA is planning on increasing the use of realignment funding to cover the majority of this increase. Additionally, CalAIM is expected to be implemented mid-year and will have a major impact on reimbursement revenues. The department recommends holding until Quarter Three monitoring to determine CalAIM impacts before additional appropriations are needed.

The Public Health branch is projecting a $63,075 negative variance due mainly to a decrease in federal revenues. The department is requesting to shift $63,075 of unused General Fund in the Child, Youth, and Family branch to the Public Health branch to offset. Additionally, the jail medical contract has been moved to this branch and final fiscal impacts are still being determined. As new information is available, there may be an additional fiscal impact at 3Q monitoring.

The Client Aid branch is projecting a $1,903,530 positive variance due to an increase in the use of realignment funding to fund current programs. Currently, the department is assisting a surplus of clients that are not eligible for federal funding. Due to this, an overall decrease of about $1.7 million in intergovernmental revenues is projected. However, there is more funding available in realignment than originally anticipated, which offsets this decrease and decreases the need from County General Fund. Specifically, Adoptions is experiencing more need than expected, trending $1 million over budget.

The Child, Youth, & Family branch is requesting the conversion of a limited-term HHSA Program Coordinator position to permanent. This position coordinates the Family First Prevention Services Act program. If the position is not extended, there will be issues with non-compliance with specific state and federal guidelines. The position will be funded in full with state and federal revenues. Additionally, HHSA Administration is requesting to convert an Administrative Services Analyst to Accountant II. The position has become vacant and needs to be converted to align the position with unit need in financial management. Costs will be transferred to other units and have minimal general fund impacts.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the HHSA’s budget as described above

Human Resources (HR): Human Resources is currently projecting a positive net variance of $263,000.  The majority of this variance resides in Risk Management ($211,000); however, the main HR operating budget is also projecting a surplus of $48,000. 

Risk Management is projecting a surplus primarily due to the Risk Manager position being vacant for the majority of the fiscal year ($124,500) and due to revenues and expenses that were under budgeted. Offsetting these savings is an increase to the division's Services and Supplies budget.  The division has added the cost of psychiatric evaluations ($10,000 each) for outgoing law enforcement retirees to their budget.  Currently, six of these evaluations are necessary with the Sheriff and Human Resources department’s splitting the cost.  Additionally, an increase in revenue and expenses are needed in the unit to recognize the increased costs of general liability and workers' compensation premiums in both revenues and expenses. 

The main HR operating budget is projecting a surplus of approximately $48,000.  These savings are primarily due to a Senior Personnel Analyst position that is expected to be vacant for four months and the cost for internal investigations trending lower than anticipated.  Though a surplus is projected, the estimates assume only two potential internal investigations. A refined projection is anticipated at Third Quarter.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Human Resources Budget as described above.

Innovation and Technology Services: The ITS department is projecting a positive net variance of approximately $805,000.  Within the Innovation Technology Services unit, a surplus of $759,000 is expected, consisting largely of anticipated savings in Salaries and Benefits ($585,000) due to the underfilling of positions and vacancies throughout the year.  Additionally, savings of $345,000 are anticipated in Services and Supplies as many planned expenses have come in under budget. The entirety of these savings is not being realized due to lower than anticipated revenues ($168,000), due to inability to bill for vacant positions. It’s important to note that the department will be completing a true up to adjust the differences in budgeted versus actual costs at the end of the fiscal year.

The Telecom division is projecting a surplus of approximately $20,000.  This is due to unanticipated interest earning ($37,000) and higher than anticipated depreciation costs ($17,000).  The remainder of the variance is in the PC Replacement fund, where higher than budgeted interest earnings ($26,000) are anticipated.

The reclassification of one Supervising Technology Support Specialist to IT Manager will be included on the March 12, 2024 HR Comprehensive item.  This action is the result of a reclassification study completed by HR.  The annual impact of this reclassification is $26,062.

Library: The Library is projected to end the fiscal year with a positive net variance of $336,000. This can be attributed to higher than budgeted revenue ($295,000) in the primary Library fund. Additionally, Salaries and Benefits costs in the unit are projected to result in $200,000 in savings due to numerous vacancies in the unit throughout the fiscal year.  Also, the Library is projecting a need to increase its Services and Supplies appropriations due to the approval of ARP funding for the purchase of minor equipment and for the increased costs for construction and furnishings for the Davis Library Makerspace project ($95,372).

The department is requesting two budget adjustments.  The first is to increase Other Financing Sources and Services and Supplies by $95,372 for the ARP funds that were awarded to the Library.  Secondly, an additional $200,000 increase to Services and Supplies from Salaries and Benefits to offset the cost of the Davis Makerspace Project is being requested.

The mid-year comprehensive HR item will also include the addition of a Library Assistant.  This position was erroneously deleted during the Adopted budget process but was included in the FY 2023-24 budget for Library. This HR action is corrective and carries no fiscal impact.

Staff recommends approving the budget adjustments as reflected in Attachment B to amend the Library budget. 

Probation: Probation is projecting a positive variance of approximately $831,000 by the end of the year.  However, of this variance, $237,000 is related to savings in Probation specific funds such as the Youthful Offender Block Grant (YOBG), Juvenile Justice Crime Prevention Act (JJCPA), and SB678.  These savings will fall to departmental fund balance for use in future fiscal years.  The remainder of the savings, approximately $428,000 is in the Public Safety fund.  Savings in all funds are largely related to ongoing vacancies as the department continues to take a conservative approach to hiring.

The Adult Probation Services division is projecting a surplus of approximately $20,000.  These savings can be attributed to $483,000 in Salary and Benefit savings due to three vacant Deputy Probation Officer in the unit.  Offsetting these savings are reductions in the department’s Post Release Community Services (PRCS) allocation in addition to reduced state revenues as the department was unable to spend down funds related to the Court Funded Pre-Trial expansion program.   

The Juvenile Probation Unit is projecting a positive year-end variance of $74,761.  This positive variance can be attributed to salary and benefit savings of $101,000 due to a vacancy in the unit for half of the year.  Offsetting these savings is a reduction to Federal Cal Works revenues due to lower-than-average caseloads within the unit.

The Probation Court Ward Unit is projecting a surplus of $330,000.  As in previous years, the savings in the unit are due to low populations in foster care, resulting in savings of $276,000 and $73,000 in salary and benefit savings due to a Deputy Probation Officer vacancy in the unit.

The department has requested budget adjustments to reflect one-time Court Funded Pre-Trial funds for purchase of a new vehicle in addition to nine portable radios. Similarly, Probation received a Homeland Security grant for $13,760 for the purchase two additional portable radios.  These additional revenue and expenses have been recognized under the Adult Probation Services unit on Attachment B.

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Probation Budget as described above.

Public Defender: The Public Defender is projecting to end the fiscal year with a negative net variance of approximately $26,000 due to the Public Defense Pilot Program being omitted from the Governor’s FY 2024-25 California State budget. This program, originally enacted in the State Budget Act of 2021, provide funds that must be utilized by indigent defense providers that provide indigent defense in criminal matters. Because the grant spans two fiscal years, a portion of 2024-25 revenue would be received in the current year.  Public Defense advocates are actively working to ensure restoration of this funding in the state budget. Staff anticipate being able to provide additional information regarding the status of this grant, and thus, the projected deficit, with the Third Quarter monitor.

The majority of this deficit ($287,000) is being offset by anticipated savings in Salary and Benefits ($156,000) due to delays in filling vacant positions, incidental savings in Services and Supplies ($20,000), and additional interest earnings in both the Public Defender’s primary division and Community Corrections Partnership unit ($85,000).

Sheriff: The Sheriff’s Office is projecting to end the fiscal year with an overall surplus of approximately $5.5 million.  Of the total surplus, $1.2 million is in the Sheriff’s special revenue funds and the remaining $4.3 million has a positive impact to the general fund.

The Public Administrator is projecting a surplus of $62,000 due to savings in Salaries and Benefits, due to lower than anticipated use of overtime and standby during the first half of the year. Similarly, the Civil division is also anticipating a year-end positive variance of $112,000, due to a vacant legal secretary position and incidental savings in Services and Supplies.  Similarly, the Management division is projecting a $354,000 surplus due to ongoing vacancies. The division is also projecting a small savings in Services and Supplies.

The Patrol division is projecting a $540,000 surplus.   Of the total surplus, $921,000 is due to a series of vacant positions and $155,000 in service and supplies savings.  Services and Supplies are under budget due to various minor equipment that has not been purchased and unspent appropriations related to vacant position costs such clothing are also contributing to the surplus.   The entirety of this projected savings is not being realized due to anticipated reductions in revenue, the largest of which is related to Charges for Services in the Cannabis Patrol program. Staff recommend an adjustment to the Capay Valley Patrol budget for the purposes of purchasing an additional Patrol vehicle.  This vehicle will be paid for by Yocha Dehe.

The department requested reappropriation of existing savings in both the Management and Patrol divisions for the purposes of replacing a detective vehicle and installing two EV charging stations. Staff do not recommend approval of these requests at this time but have asked the department to include these requests as part of their fiscal 2024-25 budget so they can be evaluated alongside all Countywide budgetary requests.

The Coroner’s division is currently projecting a positive year-end variance of $138,000.  The majority of that savings is in Salaries and Benefits and is the result of lower than anticipated extra help and overtime costs, as the demand for pathology services was lower than anticipated in the first six months of the fiscal year. The department anticipates being able to project a more accurate year-end variance during the Third Quarter monitoring process.

The Detention division is projecting a $3.4 million surplus largely attributed to approximately 20 vacant Correctional Officer positions and a reduction of Services and Supplies due to a lower detention population.  There are also incidental savings in Services and Supplies throughout the program. Detention is also expecting additional unbudgeted revenue, related to housing expenses for the JBCT population. This grant from the Department of State Hospitals, is overseen by the Health and Human Services Agency. With Detention expenditure surplus, the Sheriff is requesting to replace a 2008 Inmate Transportation bus, which no longer meets California emission standards.  The total cost of this replacement bus is $360,000.

Court Security is projecting a sizable net negative variance of $811,000 due to higher than anticipated use of overtime, unbudgeted Extra Help expenses ($32,000) and an unbudgeted leave payout ($16,500). This unit does receive general fund support, and staff recommend utilizing anticipated savings in other general fund units to balance this unit at year end. The department will be monitoring this projected negative variance closely; however, should it remain at the end of the year, the department anticipates utilizing savings from either Detention or Patrol to balance.

Sheriff’s Community Corrections Partnership division is projecting a $541,000 surplus due largely to multiple vacant Correctional Officer.  While some of the vacancy savings are offset by an increase in overtime expense, a surplus is still anticipated.   Mandated minimum staffing levels have required vacancies to be filled with overtime.  

The Small and Rural special revenue fund is projecting a surplus of $432,000 due to lower than anticipated staff time being allocated to this unit. The department is currently implementing their body worn camera system utilizing Small and Rural funds.

Net negative variances in both Civil Process Vehicles and Inmate Welfare will be offset by smaller than budgeted contributions to fund balance, or use of available fund balance.

The Animal Services fund is projecting a surplus of $338,000.  In October, four positions were added to Animal Services (Veterinarian and three Registered Veterinary Technicians) without additional funding being provided. As such, the program has a projected Salary and Benefit deficit of $86,000.  The full cost of these additional positions is being offset by delays in hiring, along with other vacancies throughout the program.  Further, fees collected for spay and neuter services are lower than anticipated due to the continued stoppage of surgeries and other non-emergency medical procedures, leading to lower than anticipated revenues.  The remainder of the net negative variance is being offset by anticipated reductions in Service and Supply expenditures, specifically, the UC Davis veterinary services contract, which is no longer needed with an in-house veterinarian on staff. 

Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Sheriff’s budget as described above.

Public Safety Sales Tax and Realignment Revenue: Major Countywide revenue sources came in both slightly above and below budget in the first six months of the 2022-23 fiscal year due to slowing of the economy and concerns of a recession.  

The County policy on Fund Balance and Reserves identifies appropriation for contingencies as the first line of defense against uncertainty and are budgeted in specific funds to cover minor unanticipated needs of a non-recurring nature or for small increases in service delivery costs that are not anticipated during budget development.  Any contingency balances that remain unspent at year end will carry forward to be appropriated as part of the 2024-25 Adopted Budget.

Year-end revenue and expenditure projections were developed by each county department and reviewed by the Department of Financial Services. County Counsel reviewed the budget resolution as to form.