I. 2018-19 3rd Quarter Budget Monitoring
Year-end projects have been development by each department based on actual revenue and expenditure data through March 31. Overall, most departments are projecting to end the year with budget, or with a surplus. The sections below highlight areas where significant variances from budgeted amounts are projected, or where budget adjustments or other actions are recommended. A detailed summary of the 3rd Quarter projections for each department is provided as 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.
Countywide Revenues: General purpose revenues are projected to end the fiscal year about $868,000 over budget largely due to the sales tax receipts trending higher than budget. Public Safety Proposition 172 sales tax is trending approximately $768,000 above budget due to higher statewide revenues and increase in the Yolo County allocation factor. Additionally, Realignment revenues are trending $4 million over budget, particularly in the 1991 Realignment Social Services subaccount. This is due to the In-Home Supportive Services (IHSS) cost shift from the State which is being offset by increased IHSS costs. Additionally, Child Poverty & Family Support Supplemental (CPFSS) subaccount is also trending significantly higher than budget; however, this funding can only be utilized for CalWORKS payments and the unspent funds will be retrieved back by the State.
Assessor/Clerk-Recorder/Elections: Assessor/Clerk-Recorder/Elections is projecting to end the year with a surplus of $321,000, which is primarily due to staffing vacancies in the Assessor division. Although, the department is projecting to end the year in balance, the Clerk-Recorder division is projecting a year-end deficit of approximately $12,000 primarily due to lower than anticipated recording fee revenues. A budget adjustment is not being recommended at this time; staff will continue to monitor this area, and if needed a budget adjustment will be requested once final year-end amounts are known.
Child Support Services: Child Support Services is projecting to end the fiscal year with a positive net variance of $37,000. The department has $355,000 in vacancy savings and intends to forgo another $25,000 that was earmarked for a vehicle purchase. These savings will be partially re-purposed for funding one-time moving costs, building improvements, and other real estate expenditures associated with the 100 W Court Street building lease renewal.
Community Services: The Community Services department is projecting to end the fiscal year with a surplus of $10.0 million. Road Fund Construction and Maintenance is projecting a $6.3 million budget surplus. This is due to a delay in the 2019 SB1 Pavement Preservation Project and lower than anticipated construction bids for other projects. Salary savings from vacant positions and delays in equipment purchases are also contributing to the variance.
Integrated Waste Management (IWM) is projecting a $4.7 million budget surplus, primarily due to a delay in capital projects and equipment purchases. Any surplus remaining at year-end will offset the budgeted use of fund balance. The IWM Post Closure fund is projecting a deficit of $1.0 million which is primarily due to a budgeted transfer in from the IWM operating fund that is no longer necessary as there are sufficient funds for closure.
Building and Planning is projecting to have a slight deficit at year-end due to deficits in Planning and Code Enforcement. Code Enforcement is projecting a deficit of $11,000 due to the addition of a second Code Enforcement Officer position. This position was originally budgeted as a Building Inspector (under the Building division). There will likely be a General Fund impact as a result of this change as the department can’t use dedicated Building revenue to fund code enforcement activities. Additionally, Planning is projecting a deficit of $91,000 due to lower than budgeted zoning permit revenue. Budget adjustments for these items are not being recommended at this time; staff will continue to closely monitor these areas and if needed a budget adjustment will be requested once final year-end amounts are known.
County Service Areas: All County Service Areas (CSAs) and Assessment Districts are projected to end the year within budgeted amounts. However, the year-end projection for North Davis Meadows (NDM) reflects both revenues and expenditures being significantly below budget due to postponement of the water consolidation project. While no budget adjustments are needed at this time, the NDM water fund currently has a negative fund balance. On May 21 the Board approved a second internal loan of $275,000 in order to pay for water, landscaping, street lighting and stormwater services through July 9, 2019.
Countywide: While most budget units with the Countywide department are projected to end the year within budget amounts, the Grand Jury is projected to exceed budget allotments by approximately $20,000 due to an unbudgeted IT charge and a high level of cost reimbursement claims and mileage charges. A budget adjustment is needed to ensure that cost reimbursement claims can continue to be paid.
Staff recommends adopting the budget resolution in Attachment B to increase the Grand Jury budget with the use of General Fund contingency.
District Attorney: District Attorney is projected to end the year with a positive net variance of $1.1 million. The Criminal Prosecution, Neighborhood Court, and Consumer Fraud and Environmental Protection units reflect a projected surplus of $1.2 million primarily due to higher settlement and interest revenue receipts, vacancy savings, lower contract spend for lab testing and ESCARS grant related services and supplies. This surplus is partially offset by a projected deficit of $116,000 in the Special Investigations and Victim Assistance budget units due to lower State grants awards, Welfare Fraud revenues, and High Tech program revenues from the partnering cities.
Additionally, the Vehicle Theft Program has a projected deficit of $41,000 due to lower VLF fees. Yolo County’s current Vehicle License Fees (VLF) are insufficient to sustain the operating costs of the program. This program has been operating in a deficit for the last two years. The DA’s office intends to take an item to the Board on June 25, 2019 to increase the Yolo County VLF fees. This fee increase will allow the program revenues to be in-sync with the program expenditures going forward.
General Services: The Facilities division of General Services is projecting to end the year with a deficit of $89,000. Of this deficit, $55,500 is due to a variety of unbudgeted maintenance projects including, tree removal at the Gibson House, fixing a sinkhole at 600 A St parking lot, updated signage at the 600 A St. building, and taxes related to the purchase of the Probation modular. Even though Facilities is projecting a deficit, staff continues to become more efficient with internal processes and feels they may be able to absorb the unbudgeted costs with existing appropriations. No budget adjustment is needed at this time.
Health and Human Services Agency: The Health & Human Services Agency (HHSA) is projecting to end the year within budgeted amounts in most units. One exception is in Public Guardian, which is projected to end the year with a negative net variance of approximately $121,000 due to higher legal service charges by County Counsel and lower service charges. No budget adjustment is recommended at this time, as a portion of this deficit will be offset by an associated surplus in County Counsel’s Office. Staff will continue to monitor this budget, and if necessary bring a recommendation for a budget adjustment once final amounts are known at year-end.
Public Assistance is also projected to end the year with a net negative variance of approximately $519,000. While expenditures are projected to remain within budgeted amounts, state revenues are anticipated to be significantly lower than budgeted amounts due adoption and foster care costs that should have been funded by realignment instead of state claims. To offset this decline, a budget adjustment is being requested to transfer additional realignment revenues into this unit.
In addition, HHSA is requesting an amendment to the 2018-19 Authorized Equipment list to purchase a new wheelchair accessible van, which will be used to transport and stabilize placement for wheelchair bound youth. Currently, HHSA has been renting a wheelchair accessible van on a monthly basis to serve this need. This vehicle purchase would be funded by WRAP funds.
Staff recommends adopting the budget resolution presented in Attachment B to shift 1991 and 2011 realignment funds to offset revenue shortfalls in Public Assistance. Staff further recommends approving an amendment to the 2018-19 Authorized Equipment List presented in Attachment C to add a new wheelchair accessible van.
Library
The Library is projecting to end the year with a budget surplus of $849,000. This surplus is primarily due to savings from vacant positions and a delay in the replacement of public use computers at the Davis Library.
Probation: Probation is projecting to end the year with a positive net variance of $2.8 million, which is primarily attributable to vacancy savings and lower levels of program expenditures. The department is projecting significant reductions in the Yolo youth population, group home placements, and Federal Office of Refugee Resettlement (ORR) grant related expense reimbursements from other County departments.
Public Defender: Public Defender is projecting to end the year with a positive variance of $136,000, primarily due to $100,000 of unspent Immigration assistance money approved by the Board of Supervisors September 18, 2018. The Public Defender is working with the Board of Supervisors and CBO’s to evaluate options and strategies for the money.
Sheriff: The Sheriff’s Office is projecting a net overall surplus of $386,000, which is due primarily to the Sheriff’s special revenue funds. Public Safety Fund units, which are heavily supported by the General Fund, are projected to end the year with a $394,000 deficit.
Patrol is projecting a $416,000 deficit due primarily to overtime costs that are exceeding budgeted amounts. Approximately $45,000 in overtime will be offset by reimbursement for mutual aid help for the Northern California fires and additional reimbursement for overtime work at the Yolo County Fair. Detention is projecting a $112,000 deficit due primarily to overtime, increased food costs and public liability and workers comp charges that exceeded budget estimates. Salary savings were used to balance the FY18-19 Detention budget so the benefit of salary savings from the current vacant positions is not able to offset the overtime.
The Sheriff’s office has been implementing strategies to reduce projected deficits since midyear. Recruiting challenges to filling vacant correctional officer positions has improved the vacancies in Detention, and reducing overtime over the last few pay periods. Overtime and other areas of concern, such as food costs, continue to be monitored.
In addition, the Detention RAN Board is projecting a deficit of $116,000 due to the purchase of more Livescan equipment than originally budgeted. The RAN Board has approved those purchases and a budget adjustment is being requested to use RAN Board fund balance to offset the deficit.
Staff recommends adopting the budget resolution presented in Attachment B to appropriate additional Prop. 172 revenues to balance the projected deficit in the Sheriff’s Public Safety Fund units, and to appropriate additional RAN Board fund balance to fund the additional purchase of Livescan equipment.
Contingency Appropriations: The table below reflects the balance of all contingency appropriations as of May 31, 2019.
| Contingency Designation |
Original Allocation |
Amount Remaining as of 5/31/19 |
| General Fund |
$ 2,500,000 |
$ 1,944,989 |
| Health & Human Services |
$ 1,500,000 |
$ 1,500,000 |
| Public Safety |
$ 500,000 |
$ 500,000 |
| IT Innovation |
$ 500,000 |
$ 449,214 |
| Safety & Security |
$ 100,000 |
$ 51,204 |
| County Service Areas |
$ 100,000 |
$ 100,000 |
| Roads/Planning |
$ 350,000 |
$ 50,000 |
| Homeless |
$ 200,000 |
$ 0 |
| Equity Adjustments |
$ 250,000 |
$ 250,000 |
| Staffing Needs |
$ 85,000 |
$ 85,000 |
| Total |
$ 6,085,000 |
$ 4,930,407 |
It is recommended that all contingency balances remain unallocated at this time to provide a safeguard against unanticipated events that may occur throughout the remainder of the fiscal year, or until specific needs are identified. Any amounts that remain unspent at year end will carry forward to be appropriated as part of the 2019-20 Adopted Budget.
II. 2019-20 Recommended Budget
The County Administrator’s 2019-20 Recommended Budget provides information to assist the Board of Supervisors in deliberating on the budget. The Recommended Budget (Attachment D) includes a department-by-department review of anticipated revenue and expenditures, as well as information regarding the programs that are funded and the measures by which departments will gauge their progress and performance. The purpose of the June 11 Budget Hearing is for the County Administrator to present an overview of the Recommended Budget, and for the Board to make any adjustments deemed appropriate before approving it as the initial spending plan for the 2019-20 fiscal year.
State law requires the Board of Supervisors adopt a resolution setting the County’s budget each year, and prescribes the format required for such action. The 2019-20 Recommended Budget resolution (Attachment E) adopts and implements the initial budget for the upcoming fiscal year, as considered and amended by the Board of Supervisors during the budget hearings. This budget will provide appropriation authority until the 2019-20 Adopted Budget is approved in September. The Board may modify this budget at any time between now and the Adopted Budget hearing by a 3/5 vote. Following approval of the Adopted Budget, a 4/5 vote is required for most budget modifications.
Before approving the 2019-20 Recommended Budget, the Board may make revisions to the recommended appropriations, revenues and staffing allocations. Exhibit 1 to the Budget Resolution summarizes appropriations and revenues by fund and budget unit at the account group level. Within Exhibit 1 the 2019-20 Capital Improvement Program budget is summarized separately from the operating budget. Interfund transfers are subtracted from the total consolidated County budget to eliminate double-counting.
Approval of the Recommended Budget allows the County to begin the fiscal year with a balanced financial plan in place. As discussed further below, there are a number of items that are not included in the Recommended Budget, which staff recommends be considered at the Adopted Budget in September. For the Board’s consideration, the sections below highlight the changes, challenges and risks presented in the 2019-20 Recommended Budget.
Budget Overview
The 2019-20 Recommended Budget is balanced, meets State appropriation requirements and aligns with the Board of Supervisors’ adopted financial policies. The County’s total operating budget for 2019-20 is $496.6 million, with a capital improvement budget of $58.1 million. The budget is comprised of multiple departments that are funded by numerous funds, including the General Fund, Public Safety Fund, enterprise funds, and other special revenue funds. The table below provides a summary of the 2019-20 Recommended Budget.
| |
2017-18
Actual |
2018-19
Adopted |
2019-20 Recommended |
| Net Operating Budget |
$357,124,503 |
$431,630,379 |
$496,595,715 |
| Capital Improvement Budget |
$7,682,201 |
$67,623,472 |
$58,108,288 |
| Total County Budget |
$364,806,704 |
$499,253,851 |
$554,704,003 |
| |
| Fund Highlights |
| General Fund Departments |
$48,475,512 |
$66,626,674 |
$70,797,438 |
| Behavioral Health Services |
$30,892,679 |
$46,893,707 |
$49,825,284 |
| Road/Transportation Fund |
$14,201,764 |
$29,595,042 |
$21,614,660 |
| Public Safety Departments |
$87,515,726 |
$101,342,638 |
$108,363,215 |
| Public Health Services |
$15,769,802 |
$20,284,366 |
$17,690,025 |
| Employment & Social Services |
$94,337,197 |
$102,685,748 |
$108,213,509 |
General purpose revenues are projected to increase approximately 2.3% over current year-end estimates, due primarily to an estimated 4.5% increase in property tax revenues. Modest growth is projected in other major countywide revenues, including Proposition 172 sales tax and realignment funds. The Recommended Budget assumes a carryforward General Fund unassigned fund balance of approximately $8.3 million, which is substantially higher than the amounts assumed in the 2018-19 Recommended Budget. This carryforward balance is primarily used to fund one-time appropriations such as contingencies, contributions to reserves, and capital asset purchases, but is also used to fund certain operational expenses such as new positions to support the Monroe Jail expansion. Abnormally high vacancy rates in the current fiscal year have provided the flexibility to assume higher fund balances for 2019-20; however, should the economy begin to turn down the vacancy rate will shrink rapidly and this level of carryforward fund balance will not be available.
The Recommended Budget includes a total of 42.5 new full-time equivalent (FTE) positions, including 13 new General Fund positions. Of the General Fund positions, 12 positions are required to honor the County’s commitments of accepting the AB900 funding for the Monroe Jail expansion to adequately staff the facility upon opening. However, 5 General Fund positions are also recommended for elimination, resulting in a net increase of 8 General Fund positions. While needs exist across the County, investment in program growth is primarily limited to areas where alternate funding sources are available, such as in state and federally funded programs. This trend is likely to continue for the foreseeable future.
The table below reflects the new positions that are recommended for funding in the 2019-20 Recommended Budget, as well as positions that are recommended for elimination.
| Department |
Position |
FTE |
Funding Source |
| Recommended New Positions |
| AG |
Admin Clerk |
1.0 |
Department revenue |
| AG |
Ag & Standards Inspector |
1.0 |
Department revenue |
| DA |
Deputy District Attorney IV |
1.0 |
Consumer Fraud |
| DCS |
Senior Solid Waste Attendant |
0.5 |
Landfill |
| DFS |
Accounting Technician |
1.0 |
Treasury Pool |
| GSD |
Systems Software Specialist II |
1.0 |
HHSA reimbursement |
| GSD |
Facility Project Coordinator |
1.0 |
HHSA reimbursement |
| HHSA |
HHSA Program Coordinator |
1.0 |
Fed/Realignment |
| HHSA |
Admin Services Analyst-Program |
1.0 |
Fed/Realignment |
| HHSA |
Public Health Nurse |
1.0 |
State/Realignment |
| HHSA |
Public Assistance Specialist III-IEVS |
1.0 |
Federal |
| HHSA |
Social Services Assistant |
1.0 |
Fed/State |
| HHSA |
Public Assistance Spec. II |
6.0 |
State |
| HHSA |
Child Welfare Worker II |
6.0 |
Fed/Realignment |
| HHSA |
Social Worker Supervisor II |
1.0 |
Fed/Realignment |
| HHSA |
Behavioral Health Case Manager II |
1.0 |
CCP |
| PROB |
Deputy Probation Officer II |
1.0 |
CCP |
| PROB |
Youth Construction Crew Assistant |
0.5 |
Department revenue |
| PROB |
Youth Construction Crew Assistant |
0.5 |
Department revenue |
| Sheriff |
Patrol Deputies |
2.0 |
Tribal Funds |
| Sheriff |
Detention - Correctional Officers |
10.0 |
General Fund |
| Sheriff |
Detention - Facility Cooks |
2.0 |
General Fund |
| Sheriff |
Deputy Coroner |
1.0 |
General Fund |
| |
Total New Positions |
42.5 |
|
| Positions Recommended for Elimination |
| CAO |
Airport Operations Manager |
0.5 |
Airport |
| CAO |
Capital Project Manager |
1.0 |
General Fund |
| DA |
Deputy District Attorney IV |
2.0 |
General Fund |
| DA |
Fiscal Administrative Officer |
1.0 |
General Fund |
| DCS |
Senior Planner |
1.0 |
General Fund |
| |
Total Eliminated Positions |
5.5 |
|
| |
Net New Positions (Total) |
37.0 |
|
| |
Net New Positions (General Fund) |
8.0 |
|
The table below reflects new position requests that are not recommended at this time.
| Department |
Position |
FTE |
Funding Source |
| Requested Positions Not Recommended |
| ACE |
Elections Technician |
1.0 |
General Fund |
| AG |
Deputy Ag. Commissioner |
1.0 |
General Fund |
| DFS |
Office Support Specialist |
1.0 |
General Fund |
| DFS |
Supv. Accounting Technician |
1.0 |
General Fund |
| GSD |
Programmer Analyst III |
2.0 |
HHSA Reimbursement |
| GSD |
Sheriff IT Coordinator |
1.0 |
General Fund |
| PROB |
Office Support Specialist |
1.0 |
Dept/General Fund |
| Sheriff |
Patrol Deputies |
4.0 |
General Fund |
| Sheriff |
Deputy Recruit Trainees |
2.0 |
General Fund |
| |
Total New Positions |
14.0 |
|
The 2019-20 Recommended Budget also includes funding for a number of non-personnel expenditures including vehicle purchases, software and equipment. These items are summarized in the 2019-20 Authorized Equipment List presented in Attachment G. All vehicle replacements are recommended by the Fleet Manager.
Strategic Plan
In November 2015, the Board approved the 2016-2019 Strategic Plan and Priority Focus Areas. The Strategic Plan included four primary goals, Thriving Residents, Safe Communities, Sustainable Environment, and Flourishing Agriculture, which are supported by principles of Operational Excellence. Within each broad Strategic Plan Goal, a number of Priority Focus Areas were identified. In this final year of the plan, the 2019-20 Recommended Budget includes resources designed to further the action items necessary to progress the Priority Focus Area objectives. The following table highlights a few of these funded initiatives.
Strategic Plan Initiatives Funded in 2019-20 Recommended Budget
| Strategic Plan Goal |
Priority Focus Area |
Initiative |
| Thriving Residents |
Develop and implement strategies to reduce homelessness.
Expend best practices in programs benefitting children. |
- Increase self-sufficiency of individuals experiencing homelessness in Yolo County
- Increase timely linkage of children to the appropriate level of mental health care
|
| Safe Communities |
Develop coordinated continuum of care ranging from prevention through intensive services.
Ensure robust emergency management program. |
- Expand specialty court and diversion opportunities for clients, to include Mental Health Court and Addiction Intervention Court
- Apply for accreditation of our Operations and Emergency Services
- Improve HHSA’s preparedness to respond to emergencies that require the provision of mass care, public health and/or medical services
|
| Sustainable Environment |
Update and implement Climate Action Plan.
Identify countywide waste reduction strategies
|
- Determine feasibility of updating the Climate Action Plan versus creating a companion plan with more actionable items.
- Implement organics food waste program at all County owned facilities required to comply with AB1826. Implementation shall include modification of janitorial contract, delivery of starter kits, education and outreach through intranet and staff meetings, and monitoring.
|
| Flourishing Agriculture |
Develop strategies, including a concierge approach, to nurture new ag/agtech business.
Facilitate connections between growers and buyers. |
- Continue the development of a fully funded land use planning program to ensure comments are made on projects impacting agriculture.
- Develop online tools for residents and farmers. Promote the use of the online complaint form. Finalize credit card payment options.
|
Health and Human Services
The 2019-20 Recommended Budget for the Health and Human Services Agency (HHSA) reflects an overall expenditure increase of $6 million over the 2018-19 Adopted Budget, not including internal transfers. In total, the Recommended Budget includes 19 new positions for HHSA, most of which are fully funded by state and federal revenues. The table below provides a summary of the new positions included in the 2019-20 Recommended Budget for HHSA.
HHSA New Positions Funded in 2019-20 Recommended Budget
| Program |
Position |
FTE |
Funding Source |
| Drug Medi-Cal |
HHSA Program Coordinator |
1.0 |
Fed/Realignment |
| Public Health |
Admin. Services Analyst |
1.0 |
Fed/Realignment |
| Communicable Disease |
Public Health Nurse |
1.0 |
State/Realignment |
| Service Centers |
Public Assistance Specialist III-IEVS |
1.0 |
Federal |
| IHSS |
Social Services Assistant |
1.0 |
Fed/State |
| CalFresh Eligibility |
Public Assistance Specialist II |
6.0 |
State |
| Child Welfare Services |
Child Welfare Worker II |
6.0 |
Fed/Realignment |
| Child Welfare Services |
Social Worker Supervisor II |
1.0 |
Fed/Realignment |
| Specialty Court |
Behavioral Health Case Manager II |
1.0 |
Realignment (CCP) |
| |
Total New Positions |
19.0 |
|
In addition to the positions listed above, the Recommended Budget includes funding to fully support two new General Services positions that will be dedicated to HHSA: a Facilities Project Coordinator to coordinate and manage space planning, and a Systems Software Specialist II to support the CWSCares software system and provide backup support for the AVATAR software system. The Agency also requested funding to support two Programmer Analyst III positions in General Services, but that request is not recommended at this time, and will be considered as part of the Adopted Budget in September. In addition, a request for $17,000 for document scanning in Public Guardian was deferred to the Adopted Budget.
The 2019-20 Recommended Budget for HHSA also includes $3.4 million in Intergovernmental Transfer (IGT) funding for a variety of one-time equipment, software and infrastructure purchases, including 36 vehicle purchases (12 new and 24 replacement), business intelligence and contract management systems, and various facility improvements including build out of a new employment center in the Gonzales building. An additional $2.5 million in IGT funds is included for emerging needs, in accordance with the new IGT funding policy. Attachment H provides a summary of the IGT funding plan for 2019-20.
Another significant element of the 2019-20 budget for HHSA is the use of $5.1 million in MHSA fund balances as part of a five-year plan to spend down categorical funding in order to avoid funding reversion to the State. Notably, $1 million is being transferred from Community Services & Support (CSS) to Capital Facilities and Technical needs to fund the purchase of an adult residential treatment facility, while an additional $1 million is being transferred to Workforce Education and Technology to fund various expenditures including professional development contracts.
Other notable features of the 2019-20 Recommended Budget for HHSA include the following:
- Funding for IHSS reflects a 5% increase in the County’s MOE in accordance with the Governor’s proposed restructuring of the IHSS cost shift;
- The budget for jail medical services declined by $330,000 due to a portion of the contract cost being allocated to Probation and funded by federal ORR revenues. This budget item may need to be revisited in the Adopted Budget depending on the outcome of the proposal to repurpose the Juvenile Detention Facility as discussed at the June 4 Board meeting;
- The budget continues to include funding for former Pomona fund contracts, including Crisis Nursery ($100k), YCCA VITA Program ($85k) and Yolo Food Bank ($85k). These contracts are general fund obligations, as other state and federal funding sources have been deemed ineligible for these purposes.
On April 23, 2019 HHSA presented to the Board of Supervisors a set of proposed funding requests for 2019-20 under the General Assistance (GA) program. GA is required by the Welfare and Institutions Code, Sections 17000 to 17030.1, to provide relief and support to indigent adults who are determined needy, but who are not supported by their own means, other public funds, or assistance programs. The program is funded entirely by the County through the General Fund. During the April presentation, the Board requested additional information prior to making a decision for two of HHSA’s GA requests for County General Fund assistance. These requests consisted of $75,000 to re-establish Supplemental Security Income (SSI) Advocacy services as well as $100,000 to increase the number of available shelter beds in Yolo County. The report in Attachment I provides a description of those two requests, including the background, potential benefit, county approaches, and any alternative funding sources. Staff recommends, due to the ongoing General Fund commitment, that these items be considered in the Adopted Budget in September.
Finally, the 2019-20 Recommended Budget for HHSA reflects the consolidation of all homeless-related costs into a new Homeless Services program (formerly CSBG), including staff costs that were previously budgeted in other areas. This consolidation was done to bring transparency to the program and the total cost of providing these services. As a result of staffing cost increases and the expiration of grant funds, the Homeless Services program reflected an initial funding gap of approximately $785,000. For 2019-20, this gap is largely funded by the use of $523,000 in Social Services fund balance. While the department is continually looking for grant funding opportunities, if other funding sources are not identified these costs may become a General Fund obligation in future years or the program may need to be downsized. This issue will be revisited in the Adopted Budget in September.
Community Services
Planning and Building: The 2019-20 Recommended Budget for the Planning & Building division includes an increase of $141,000 in services and supplies primarily due to an increase in CEQA/EIR consultant contracts; these contract services are reimbursed by zoning permit fees. The budget also includes an increase in General Fund support for the County matching portion of the Electrify Yolo Project grant for electric vehicle charging stations ($82,000) and a second Code Enforcement Officer position that was added in FY 2018-19. This position was previously a fee-funded Building Inspector position that was underfilled and moved to Code Enforcement, resulting in an additional net county cost. Other significant items include funding for the replacement and annual license of the permitting and inspection software used by the Building division (previously Trak-It) and additional funding for IT charges to support the integration of the new software. These items are fully funded with Building permit revenue. To reduce the division’s net county cost, a vacant Senior Planner position was unfunded.
Environmental Health (EH): The 2019-20 Recommended Budget for Environmental Health includes $230,000 for the purchase of a replacement Hazmat Truck and a replacement SUV. Both of these items will be funded with CUPA fund balance. Additionally, the budget includes an increase of $139,000 in fee revenue as a result of the fee increases approved by the Board in December 2018, in addition to future fee increases that the division plans to take to the Board in late 2019. Despite these increases, a number of fees continue to be less than full cost recovery requiring the division to supplement revenues with $50,000 in unrestricted fund balance and $195,000 in General Fund support.
Integrated Waste Management (IWM): The 2019-20 Recommended Budget for IWM includes $18.2 million for landfill capital projects and $916,000 for various capital equipment purchases. The budget for capital projects includes funding for the closure of waste management units 4 and 5 ($5.4 million) and the construction of a new waste management unit ($6 million) at the landfill. Funding for these projects is planned to be provided by the Closure/Post Closure Fund and bond proceeds. A full list of the proposed IWM Capital Projects is included as Attachment J.
Other significant changes include a $2.3 million increase in Professional Services due primarily to a $1 million for agriculture and wildlife mitigation, and $1.3 million in contracts for landfill operations and maintenance.
Roads: The Recommended Budget for Roads includes a decrease of $8.3 million in capital projects due primarily to the completion of road and bridge improvement projects, including the 2018 Pavement Preservation Project and the Highway Safety Improvement Program (HSIP) Striping Project. The budget also includes $600,000 for equipment purchases which include the purchase of a replacement loader and SUV, and a new ditch cleaner; these items are HUTA funded. The table below reflects the Roads fund projects that will be in the construction phase in FY 2019-20:
| Project |
2019-20 Budget |
| 2019 SB1 Pavement Preservation Project |
$3,074,000 |
| Bridget Replacement - County Road 95 over Dry Slough |
$2,651,000 |
| Highway Safety Improvement Program (HSIP) Guardrail Project |
$1,037,000 |
| Madison Flood Mitigation |
$300,000 |
| Knights Landing Traffic Calming |
$45,000 |
Cannabis: The 2019-20 Recommended Budget for the Cannabis regulatory program is $2.8 million, a decrease of $1.1 million from FY 2018-19. This decrease reflects a reduction in expenses related to program start-up and other one-time costs and aligns the budget with the on-going costs of administering the program. The budget also includes a decrease of $1.1 million in Cannabis program revenues, reflecting the changes from the new fee structure that was approved by the Board in December 2018. Additionally, the 2019-20 Recommended Budget includes $70,500 in continued General Fund support for the enforcement of illegal (non-licensed) cannabis cultivation, which reflects 15% of the cost of two Deputy Sheriff positions and supplies.
General Government
Agriculture: The 2019-20 Recommended Budget includes a new Ag and Standards Inspector position and a new Administrative Clerk position, which are funded by increased department revenues including CDFA cooperative agreements, unclaimed gas tax and cost recovery fees. The Recommended Budget also includes increased funding for seasonal extra help, four promotions, contract help for the Dog Team call center, and funding for a Statewide Timekeeping program.
Other notable requests include $287,000 for installation of a modular building on existing premises to accommodate additional staff and seasonal workers, one new pick-up truck, and the Bait Manufacturing facility closure costs, which are all funded by the Building Replacement, Ag-Bait Cleanup, and Equipment Replacement fund balances. Additionally, the department is requesting $25,000 for a replacement pick-up truck which is recommended for replacement by the Fleet Manager and is funded by the Equipment Replacement Fund.
The requested budget included $172,000 for a new Deputy Agriculture Commissioner position and position related vehicle and minor equipment, which is not recommended to be funded at this time.
Assessor/Clerk-Recorder/Elections (ACE): The Recommended Budget includes a $200,000 contingency for expanded Elections printing and mailing services. Although the department originally requested $395,000 for these services, a contingency is being recommended while the department continues to work with the vendor to finalize the scope of work and costs associated with these services. The department also requested $75,000 in additional extra help funding for Elections but it is not being recommended at this time as the department will likely realize a savings in staffing costs related to the expanded contract services. The budget also includes an increase of $186,000 in departmental IT charges for the annual cost of the dedicated ACE IT positions that were added in FY 2018-19 and a reduction of $89,000 in recording fee revenues as a result of decreased document volume.
The Recommended Budget was balanced by deferring requests for a new Elections Technician position and new workstations for three Elections staff to the Adopted Budget. The department also requested $50,000 for the continuation of the Assessor scanning project but it has since been determined that there are sufficient funds in FY 2018-19 to complete the project.
Department of Financial Services (DFS): The 2019-20 Recommended Budget for Financial Services includes a new limited term Accounting Technician for the Treasury which is funded by the Treasury Pool reimbursement revenues. The Recommended budget also includes an increase in services and supplies primarily due to the addition of contracts for independent audit services ($110,000) and SB90 claims ($15,000) which were previously budgeted in Countywide and additional one-time funding for consulting services and software related to the cost allocation plan ($13,000).
The department also requested a new Supervising Accounting Technician and an Office Support Specialist. However, these items are not recommended at this time and will be considered as part of the Adopted Budget in September. Additionally, the department will delay hiring the Chief Budget Official and Audit Manager positions for three months to generate vacancy savings and reduce the department’s net county cost.
County Administrator’s Office: The 2019-20 Recommended Budget for the County Administrator’s Office includes $1.4 million in funding for water resource projects, including $450,000 for the Small Communities Flood Risk Reduction Program, $200,000 for the Westside tributaries flow monitoring project, $200,000 for restoration of the Cache Creek former gravel mine site, $196,500 for the Yolo Bypass drainage and water infrastructure improvement study, and $125,000 for the Corridor Management Framework. These projects are primarily funded by grant funds.
The 2019-20 Recommended Budget also includes a $950,000 increase in Airport capital projects, primarily due to construction of drainage basin improvements. Other notable budget adjustments include replacement of 28 laptop computers for the Office of Emergency Services, funding for design of Huff’s Corner levee improvements and elimination of 1.5 vacant positions, including a full-time Capital Projects Manager and a half-time Airport Operations Manager.
The 2019-20 Recommended Budget for County Service Areas (CSA) reflects a $2.5 million decrease, primarily due to a reduction in the amount budgeted for the North Davis Meadows water connection project as a result of lower cost estimates and substantial completion of design work. Other significant adjustments include a $306,000 increase in the Snowball CSA budget related to rehabilitation of the levee patrol road, and a $158,000 increase in Esparto Park Improvement for ongoing maintenance and operations of Tuli Mem Park.
Board of Supervisors: The 2019-20 Recommended Budget for the Board of Supervisors reflects a total expenditure increase of approximately $123,000, due primarily to regular salary and benefit increases. A Board Member has requested that the Board consider extra help funding for paid internships. The requested amount is $10,000; providing an extra help budget for all members would increase the Board of Supervisor’s extra help budget by $50,000. The Budget Ad-Hoc Subcommittee recommended a policy be in place for an intern program that utilizes best practices in the training and coaching of interns. Staff recommends working with HR to develop an intern policy and procedure for consideration prior to the Adopted Budget, and reconsider the extra help budget at that time.
County Counsel: The 2019-20 Recommended Budget for County Counsel reflects a total expenditure increase of approximately $128,000 due primarily to increases in salary and benefit costs. The budget also includes an increase of $20,000 in Indigent Defense related to a compensation increase for the conflict panel attorneys. These increases are partially offset by a $62,000 reduction in one-time contractual funding for outside counsel and experts that was included in the 2018-19 budget.
Library: The 2019-20 Recommended Budget includes an increase of $240,000 in salary and benefit costs for additional Extra Help funding and general salary and benefit increases. This increase is partially offset by a decrease of $169,000 in services and supplies due primarily to reductions in contracts for one-time projects related to website development and e-commerce and a decrease in minor equipment purchases. The Requested Budget also includes a decrease of $56,000 in Building Improvements related to the Esparto Branch HVAC replacement which is scheduled to be completed before the end of 2018-19.
The net county cost for the Library is $330,000, which includes $143,000 for the costs associated with the Gibson House. This includes funding for the Museum Curator position and services and supplies, including installation, preservation, and exhibit costs, for the Gibson House Museum.
General Services: The 2019-20 Recommended Budget includes $3.2M in general fund, a decrease of $619,000 from FY2018-19. The Recommended budget includes $115,000 in one-time Parks and Facilities capital asset purchases, including a John Deere loader, riding lawnmower, water tank, pump, photovoltaic inverter for the campground solar array and replacement windows for the 600 A St. building. The Recommended Budget also includes the continuation of the security guard services ($138,000) for county owned locations within the city of Woodland,
In order to reduce General Service’s net county cost, $370,000 in one-time purchases have been deferred to the Adopted Budget, including three vehicle purchases, Parks replacement picnic tables and a new wood chipper, an upgraded key card system for the Administration building and HVAC replacements for the Davis Library, Sheriff Cameron facility and the Agriculture building. In addition, a Parks Supervisor position will be held vacant for six months to generate $52,000 in vacancy savings. General Services had also requested funding for the most critical roof replacements at the Sheriff Morgue and Sheriff Administration building. Staff recommends that the $110,000 cost for these improvements be funded with the ACO fund.
Additionally, the Recommended Budget includes funding for the new countywide telecommunications system. On May 21, 2019, the Board approved the purchase and installation of a new phone system with Maverick Networks, Inc. for $1,295,572. The majority of the cost will be funded through debt financing ($700,000) and the remaining portion will be funded with Telecom ISF fund balance. The Parks division has included $1.9M in project work for the Knights Landing Boat Launch Grant and $237,000 for the Grasslands Trail Grant. The Grasslands Trail project will be completed during the 2019-20 fiscal year and the Knights Landing boat launch will be completed by June 2021 per grant requirements.
Law and Justice
Child Support Services: The Child Support Services 2019-20 Recommended Budget remains unchanged from the 2018-19 Adopted Budget. The significant budget adjustments, other than general salary and benefit cost increases, include $18,000 for extra help. A total of $245,000 in general salary and benefits increases and extra help are being absorbed through various reductions in services and supplies, such as, building maintenance, leasing, IT charges, indirect costs, office supplies, and postage. Additionally, $124,000 in expense reimbursements from Health and Human Services Agency (HHSA) are no longer in the budget as the HHSA call center is being relocated to another facility.
Over the last three years, Child Support Services has streamlined its operations significantly and cut costs by way of automation and downsizing without impacting service delivery. The agency is currently working with Sutter and Colusa Counties to regionalize its operations. Regionalization will allow Yolo County Child Support Services to leverage its efficiencies and offset its operational costs by cost sharing with other partnering Counties.
District Attorney: The District Attorney’s 2019-20 Recommended Budget includes a new limited-term Deputy District Attorney (DDA) position funded by Consumer Fraud & Environmental Protection (CFEP) revenues. The budget also includes funding for various staff promotions, increases in extra help, and LawSuite System related increases in IT costs. Additionally, the budget includes funding for the purchase of a new vehicle and two replacement hybrid vehicles which are 100% funded by Child Abduction, Auto Fraud, and CFEP revenues. Finally, two limited-term DDA positions are being converted to regular (full-time), while $300,000 in salary transfers to the Cannabis Taskforce has been eliminated as the DA’s Office is no longer working on the regulatory program.
As part of the budget balancing solutions, it is recommended that approximately $729,000 in available CALMMET, COPS, and DA Revocation fund balances be drawn down to fund expenditure increases in the Criminal Prosecution Unit. In addition, four replacement vehicles are being deferred to the Adopted Budget, while three existing positions are being eliminated.
Finally, the 2019-20 Recommended Budget includes a total budget of $339,000 for the Neighborhood Court (NHC) program, which includes three positions and miscellaneous services and supplies. This program has largely been funded by the Justice Assistance Grant (JAG) grant in the past. While the department has submitted an application for this competitive grant for 2019-20, the status of funding award will not be known until later in the fiscal year. As a result, General Fund support of $246,000 is included in the 2019-20 Recommended Budget. Funding for the NHC will need to be reevaluated at the Adopted Budget or once the funding status of the JAG grant is known.
Probation: The 2019-20 Recommended Budget includes two new half-time Youth Construction Crew Assistant positions, two replacement hybrid sedans, increases in extra help, janitorial costs, and LawSuite System related programming costs. In addition, the budget includes a new Deputy Probation Officer to support expansion of specialty courts as approved by the Community Corrections Partnership at the May 13th meeting. Other significant budget adjustments include a reduction in Work Program revenues due to availability of the electronic monitoring program alternative, and an anticipated decline in fee revenues due to availability of fee waivers.
As part of the budget balancing solutions, one vacant Probation Division Manager position in Juvenile Hall has been unfunded. Additionally, the Recommended Budget includes a $250,000 reduction in professional services, support and care of persons, and miscellaneous services and supplies in order to align the budget with actual spending trends. Finally, the budget includes a $783,000 drawdown in available fund balances from the Community Corrections Performance Incentive, AB109 Planning, and YOBG funds to bridge funding gaps and cover one-time costs, such as vehicle procurement and system development costs.
Public Defender: The 2019-20 Recommended Budget for the Public Defender includes the reclassification of a Legal Secretary to a Supervising Secretary to the Department Head. The Recommended budget also includes minor increases in services and supplies ($36,000) and standard promotions and salary and benefit increases. Grant revenue decreased $45,000 due to the reduction of a one-time grant used to help offset the cost of an Immigration Attorney.
Sheriff: The 2019-20 Recommended Budget for the Sheriff includes a total of 15 new positions, 13 of which are funded by the General Fund. The new General Fund positions include 12 positions to staff the Monroe Jail expansion and 1 limited term Deputy Coroner. The remaining two positions are for 2 Deputy Officers for the casino expansion, funded by the Yocha Dehe Wintun Nation.
The new positions needed for the Monroe jail expansion are the initial needs based upon the facility use this fiscal year. At build out, more positions will be requested by the Sheriff. In total 10 additional positions will be requested adding to the 12 mentioned above for a total request of 22 positions. A summary of the needs and timing is listed below. The replacement of Leinberger will not result in an increase in staffing.
| New Housing Unit (32 beds) |
4 FTE Correctional Officers* |
November 1, 2019 |
| New Health/Mental Health Unit |
4 FTE Correctional Officers* |
August 1, 2020 |
| New In-person visitation |
4 FTE Correctional Officers* |
November 1, 2019 |
| New Kitchen |
2 FTE Correctional Officers
2 FTE Cooks |
November 1, 2019 |
| Additional Control Room Support (due to enhanced electronic security and expanded facility) |
2 FTE Correctional Officers** |
August 1, 2020 |
| Relief for additional staff |
5 FTE Correctional Officers |
Phase in |
*1 Officer per shift
**1 Officer per day shift
The Recommended Budget also includes various increases to align budget with historical trends and new requests. Overtime has been increased to reflect the cost for maintaining minimum staffing levels and Detention food costs have risen while historical budgets have stayed level. The Recommended Budget also includes increases for extra help for background investigations on all potential new hires, funding for the replacement of aging minor equipment and law enforcement supplies, new interviewer equipment, and the county’s portion of a replacement animal services truck and the reclassification of a vacant Sheriff’s Records Clerk IV to a Supervising Animal Services Officer. Other items included in the Sheriff’s budget but funded by sources other than the general fund include one new vehicle and two replacement vehicles funded by the Yocha Dehe tribe, four other replacement vehicles funded by Sheriff special revenue funds and RAN funded mobile ID devices.
As part of the budget balancing solutions, numerous items and positions were deferred to the Adopted Budget. Two Resident Deputies and two Homeless Outreach Deputies have been deferred to the Adopted Budget to provide an opportunity to research other funding sources. Also deferred to the Adopted Budget are the two Deputy Recruit Trainees, a Sheriff’s IT Coordinator, server replacement and 6 general fund Patrol and Detention replacement vehicles. Additionally, the 12 new jail expansion positions will be held vacant for 3 months while associated supplies and training have been deferred to the Adopted Budget. Due to the timing of the Monroe jail expansion completion, holding the positions vacant for 3 months should not have a negative effect on appropriate staffing levels. The Recommended Budget also includes $300,000 in vacancy savings in the Detention division, equivalent to approximately 2 FTE. Historical trends show an average vacancy rate of 4 FTE in Detention.
Finally, there is an ongoing structural deficit in Court Security as staffing requirements have outpaced current funding levels. In recent years, fund balance was used to bridge the funding gap; however, the fund balance has been largely depleted and is no longer an available option for 2019-20. The Sheriff’s Office is continuing to have discussions with the Courts in an attempt to find a solution to the funding imbalance. This issue will likely need to be revisited in the Adopted Budget.
Community Corrections Partnership (CCP): The 2019-20 CCP budget was approved by the CCP Executive Committee on February 11, 2019. On May 13, 2019, the budget was revised to expand specialty court diversion programs, such as the Mental Health Court (MHC) and the Addiction Intervention Court (AIC), including the addition of two new positions, a Behavioral Health Case Manager and a Deputy Probation Officer . This expansion supports the CCP strategic plan initiatives, allows for collaboration, and expands the program capacity from 25 to 55 clients between the MHC & AIC programs. This program expansion is funded in part by reducing the CCP funding allocations to the Sheriff and District Attorney.
2019-20 Community Corrections Partnership Budget
| Category |
2018-19 Adopted |
2019-20 Recommended |
Change |
| Beginning Fund Balance* |
$629,083 |
$500,207 |
($128,876) |
| |
|
|
|
| Base Allocation |
$8,004,397 |
$8,537,054
|
$532,657 |
| Growth Allocation |
$683,488 |
$507,598 |
($175,890) |
| Innovation Fund |
($68,349) |
($50,760) |
$17,589 |
| Total Revenues |
$8,619,536 |
$8,993,892 |
$374,356 |
| |
|
|
|
| Total Resources |
$9,248,619 |
$9,494,099 |
$245,480 |
| |
|
|
|
| District Attorney |
$496,466 |
$468,325 |
($28,141) |
| Library |
$13,460 |
$13,998 |
$538 |
| Probation** |
$4,855,163 |
$5,247,013 |
$391,850 |
| Public Defender |
$149,934 |
$155,931 |
$5,997 |
| Sheriff |
$3,180,469 |
$3,217,687 |
$37,218 |
| Countywide |
$52,921 |
$55,038 |
$2,117 |
| Total Funding Allocation |
$8,748,412 |
$9,157,993 |
$409,581 |
| |
|
|
|
| Ending Fund Balance |
$500,207 |
$336,106 |
($164,101) |
* The fund balance amounts are estimates at a point in time.
**Probation’s allocation includes pass-through funding for Treatment, Day Reporting Center, IGT House, Court Portal & the Court Diversion Programs.
Capital Improvement Program
The 2019-20 Recommended Budget includes a Capital Improvement Program (CIP) budget of $58.1 million. This budget includes funding for five projects, four of which are being partially financed from the CIP bond issued in July 2017. The table below provides a summary of the 2019-20 CIP budget.
2019-20 Capital Improvement Budget
| Project |
2019-20 Recommended Budget |
| Courthouse Re-occupancy |
$2,690,583 |
| Library Archives Remodel |
$324,614 |
| Monroe Jail Expansion |
$21,623,000 |
| Leinberger Expansion |
$33,300,000 |
| Jail Shower Flooring |
$170,091 |
| Total |
$58,108,288 |
In addition to the projects reflected above, preliminary work continues on a number of other projects, including the Yolo Library, Gonzales building acquisition, Energy Audit, new Animal Shelter and Adult Day Health Center facility. As these projects are more fully developed, and as funding sources are identified, staff will return to the Board for project budget approvals and incorporate them into the County’s CIP budget.
Other Budget Assumptions and Issues
Immigration Defense
In September 2018 the Yolo County Board of Supervisors approved $100,000 in FY2018-2019 to assist immigrants in Yolo County. Through a collaborative research process involving two Board Supervisors, community-based organizations, and the Public Defender’s office a proposal for these funds as well as an additional funding request of $50,000 was presented to the Board on April 23, 2019. The proposal recommends using the funding, plus an additional $50,000, for a one-year contract with an outside immigration attorney or a one-year limited term attorney position in the Public Defender’s Office to conduct immigration removal defense. In order to provide additional context to the request prior to a Board decision, staff was tasked with exploring the extent of need in Yolo County for immigration removal defense, the services currently being provided by other counties, the potential benefits and challenges of the proposal, and the existence of alternative funding resources to sustain the attorney in Yolo County following the first year. The details of this review are provided in Attachment L.
Overall, despite limited available data, the review identified a need for representation in federal immigration court for undocumented individuals in California and more specifically for those residing in Yolo County. It is anticipated that with representation undocumented individuals would have improved outcomes. Several California counties have sought to assist individuals in their region facing immigration deportation through funding County positions, contracting out, or providing funds to non-profit organizations. While some non-profits exist to assist with removal representation, there are few in Yolo County, and their capacity to expand with additional funds would have to be explored further. If the proposal is approved by the Board, the main effect anticipated for other County departments would be a potential increase in post-conviction motions for the District Attorney’s Office. Additionally, to sustain the position, Public Defender staff would need to seek grant funding, likely from private foundations, as there currently appeared to be a lack of funding resources from the state or federal government on this issue.
Health & Human Services Emerging Needs Contingency
In 2002, Yolo County participated in the Pooled Tobacco Securitization Program, which resulted in creation of the Ceres endowment fund that is held by a trustee as collateral for the outstanding tobacco bonds. Under investment strategies approved by the Board in 2002 and 2013, funds are deallocated annually from the Ceres endowment fund and made available for appropriation in the Pomona fund.
In July 2018 the Board approved a new policy for the use of these Pomona fund dollars. Under this policy, funding made available for appropriation in the Pomona fund shall be used to create a Health & Human Services Emerging Needs contingency that may be allocated by the Board throughout the fiscal year to programs and organizations that support emerging health and human services needs. In accordance with the revised investment strategy approved by the Board in November 2018, the 2019-20 Recommended Budget includes $225,000 for the Pomona Health and Human Services Contingency. The policies and procedures governing the use of these funds are provided in Attachment M.
Adult Day Health Center: In May 2016 the Board approved an amendment to the contract with Dignity Health to continue their operation of the Yolo County Adult Day Health Center (ADHC) for an additional year ending June 30, 2017, with the option to extend for one additional year. The amended contract also provided that the County would share in the cost of operating losses for the ADHC up to a maximum of $150,000 per year. In June 2018 the Board approved a second amendment to the contract extending operations of the ADHC through June 30, 2019, and to equally share documented program losses up to an amount payable by the County not to exceed $75,000. It is anticipated that program losses for the 2018-19 fiscal year will require the County to make the full payment as required by the contract. As such, the 2019-20 Recommended Budget includes $75,000 to satisfy this obligation.
Rural Community Investments: The Rural Community Investments program (formerly known as Rural Initiatives) was formed in 2015 and serves to enhance economic development as well as health and safety for rural communities by addressing critical infrastructure needs in accordance with the strategic plan Safe Communities goal. As part of the County’s ongoing efforts to leverage and maximize discretionary revenues by matching or drawing down other potential revenues, the County and the Yocha Dehe Wintun Nation have met to discuss potential collaborative projects which would benefit the rural areas of the County and braid Rural Community Investment funding with Yocha Dehe’s Doyuti T'uhkama (State Tribal Compact credits) program. The proposed 2019-20 Rural Communities Investment Program allocations will be provided at the September budget hearing.
System Enhancements
The 2019-20 Recommended Budget includes funding for a variety of Countywide System enhancements. Notable enhancements include $103,000 for a Strategic Sourcing module, which will improve processing of purchase requisitions and increase efficiency through vendor self-registration; $450,000 for a contracts module, which will manage contract development processes that are currently done outside the system; and a $85,000 for a Training/Performance Management system that will manage and track employee learning and development. In addition, the budget includes $400,000 for ongoing improvement and post go-live support for existing finance, procurement and HR systems.
Pension Funding: The 2019-20 Recommended Budget includes $40.3 million in employer pension contributions, an increase of $8.2 million from the 2018-19 Adopted Budget. Employer contributions for 2019-20 were determined in the CalPERS Annual Valuation Report as of June 30, 2017. As discussed with the Board on several occasions, employer contribution rates have increased significantly over the past several years, and are projected to continue increasing for the foreseeable future. These increases are driven primarily by changes in CalPERS’ demographic and investment assumptions, particularly related to assumed mortality rates and a lower targeted rate of investment return. The table below shows the projected pension rates over the next five years.
Employer Pension Contribution Rates
| Fiscal Year |
Miscellaneous |
Safety |
| 2019-20 |
28.4% |
40.1% |
| 2020-21 |
30.6% |
43.5% |
| 2021-22 |
32.3% |
45.5% |
| 2022-23 |
33.6% |
47.2% |
| 2023-24 |
34.1% |
47.9% |
In addition, a decision by the PERS Board of Administration to reduce the amortization period from 30 to 20 years for unfunded liabilities will likely push employer contribution rates higher than what is currently projected.
In May 2018 the Board approved a Pension Funding policy to establish best practices and guide the County’s effort to stabilize pension funding and address the unfunded pension liability. This action was a continuation of the effort to stabilize pension funding, following several prior actions including establishment of a pension accounting reserve, evaluation of discretionary contributions, and prepaying annual contributions. Notably, the Pension Funding policy established a Section 115 Trust to accumulate assets for pension obligations, and provides for a supplemental charge on payroll expenditures for building the Trust balance to a minimum target level. The 2019-20 Recommended Budget includes a 1.25% payroll charge, or approximately $1.6 million, for purposes of funding the Pension Trust.
Other Post-Employment Benefits (OPEB): The 2019-20 Recommended Budget includes $10.9 million in OPEB charges to departments, an increase of $272,000 from the 2018-19 Adopted Budget. The OPEB rate has increased from 8.0% of payroll in the 2018-19 Adopted Budget to 8.5% in the 2019-20 Recommended Budget. In May 2011, the Board approved the creation of an irrevocable trust to accumulate assets for the purpose of reducing the OPEB liability. In December 2014, the Board approved an OPEB pre-funding plan to phase in full funding of the OPEB liability over 15 years. The 2019-20 Recommended Budget reflects the fifth year of this pre-funding plan. It is estimated that the OPEB trust will have a balance of approximately $16.4 million at the end of 2018-19, and increase to $21.9 million based on estimated contributions in 2019-20.
In addition to funding the OPEB trust, significant progress has been made in lowering the overall OPEB liability through the implementation of benefit caps for most employee units. As a result of these efforts, the overall OPEB liability declined by $6.6 million in the June 30, 2018 valuation. The table below shows the OPEB unfunded liability in each of the last three valuation reports.
OPEB Unfunded Liability
| Valuation Report |
Unfunded Liability |
| June 30, 2014 |
$153,091,000 |
| June 30, 2016 |
$82,126,000 |
| June 30, 2018 |
$68,662,000 |
As a result of the significant reduction in the unfunded liability, the current OPEB rate of 8.5% achieves the full Actuarially Determined Contribution (ADC), well in advance of the 15 years originally contemplated in the pre-funding plan.
Special Fund Balances: As part of the 2019-20 budget process, the Board Chair and Vice Chair have expressed interest in taking a closer look at a number of the County’s special funds, including enterprise funds. While the General Fund is certainly of upmost importance in budget discussions due to the limited nature of funding, it accounts for just 20 percent of the County’s entire budget. There are numerous other funds that have been established for a variety of purposes that are also under the Board’s control. In March, the Chair and Vice Chair reviewed a listing of the County’s funds, and identified several funds to review more closely as a first step, including the purpose of the fund, current balances, any restrictions on the use of funds, and the planned use of current balances. Staff is currently working to compile information on these funds, which will continue to be reviewed over the summer and will be presented as part of the Adopted Budget in September.
Contingency and Reserves: In accordance with the Board Policy on Fund Balances and Reserves, the 2019-20 Recommended Budget includes the following reserve balances:
| General Reserve |
$ 13,159,424 |
| Liability Reserve |
$ 600,000 |
| CIP Reserve |
$ 4,073,655 |
| Road Maintenance Reserve |
$ 300,000 |
| Audit Disallowance Reserve |
$ 2,000,000 |
| OPEB Trust* |
$ 21,939,649 |
| Pension Trust* |
$ 4,250,708 |
* Includes the estimated contributions for 2019-20.
The Board Policy on Fund Balance and Reserves establishes a General Reserve target of 10% of average General Fund expenditures. The General Reserve balance reflected above includes an additional 2019-20 contribution of $622,435, which is needed to maintain the current 6% reserve level due to increasing General Fund and Public Safety fund expenditures. Should funding be available, additional contributions may be recommended in the Adopted Budget to increase the General Reserve percentage. A summary of reserve contributions and balances is provided as Attachment N.
The 2019-20 Recommended Budget also provides appropriations for the following contingencies:
General Fund Contingency....................................... $2,500,000
Public Safety Contingency………………………...........$500,000
Energy Audit Contingency........................................... $300,000
Health & Human Services Emerging Needs
Contingency......................................................... $225,000
The General Fund Contingency represents 2.8% of general purpose revenue allocations, and is crucial in safeguarding against known risks and uncertainties that are identified for the 2019-20 Recommended Budget, including:
- Continued Pension Cost Escalation
- Homelessness Initiatives
- Flood Protection Planning and Construction
- County Service Area infrastructure
The Public Safety contingency of $500,000 represents 0.6% of Public Safety Fund operating fund expenditures. This contingency may need to be increased in the Adopted Budget to meet the 1% minimum level identified in the Board policy on fund balance and reserves.
Should funding be available, the Adopted Budget will include funding for additional contingencies, such as Health & Human Services, Safety and Security, and IT Innovation.
Items for Consideration in Adopted Budget
The Recommended Budget does not allocate funds to several areas which will need to be considered and potentially addressed with the Adopted Budget in September. It should be noted that due to the higher carryforward fund balance assumption included in the Recommended Budget, it is likely that total funding requests for the Adopted Budget will exceed available resources. The table below provides a summary of the items to be considered in the Adopted Budget:
| Increase General Reserve to 6.5% |
$1,096,619 |
| Increase CIP Reserve |
$500,000 |
| HHSA Contingency |
$1,500,000 |
| IT Innovation Contingency |
$500,000 |
| Safety & Security Contingency |
$100,000 |
| Road Planning Contingency |
$300,000 |
| Knights Landing Levee Repair FSRP Grant Match |
$1,755,000 |
| ACE Services & Supplies |
$11,500 |
| ACE Staffing |
$76,100 |
| District Attorney Vehicles |
$140,000 |
| District Attorney Staffing (NHC) |
$189,760 |
| Community Services Staffing |
$24,561 |
| Financial Services Staffing |
$195,585 |
| General Services Assets – Parks |
$138,000 |
| General Services Vehicles – Facilities |
$60,000 |
| General Services Key Card System Project |
$60,000 |
| HHSA Extra Help – Public Guardian |
$17,000 |
| HHSA General Assistance Funding |
TBD |
| Probation – Repurposing of Juvenile Detention Facility |
TBD |
| Public Defender Immigration Defense |
TBD |
| Sheriff Equipment & Supplies |
$470,617 |
| Sheriff Vehicles |
$397,000 |
| Sheriff Staffing |
$1,170,741 |
| Total |
$8,702,483 |
|