This report provides the Board of Supervisors with a midyear update on the 2020-21 budget. As part of the 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.
Agriculture: Overall Agriculture is projecting to end the fiscal year with a positive net variance of approximately $16,000 primarily due to savings in services and supplies. Additionally, the department is requesting to purchase one replacement truck for $47,000 which is primarily used for trapping purposes. The current vehicle has been having mechanical issues and the department is unsure if it will make it through the summer. This replacement request was approved by the Fleet supervisor and the funding source for this vehicle purchase will be use of fund balance from the Equipment Replacement fund.
The department’s IT Equipment Replacement fund is projecting service and supply expenditures to be $7,000 higher than budgeted based on the division replacing four additional computers that are not included in the PC Replacement program. The department is requesting to increase appropriations for services and supplies using fund balance to cover this expense.
The Equipment Replacement fund is projecting a negative budget variance of $30,000 due to a delayed vehicle purchase. The vehicle was budgeted in 2019-20, however, the request to carryforward the purchase was not submitted which is causing a deficit in 2020-21. The department is requesting a budget adjustment to correct this timing difference
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 approximately $284,000 largely related to higher than estimated revenues in the Clerk-Recorder Division.
Clerk Recorder is projecting higher than anticipated Recording Fees, ($341,000), however, this surplus is partially offset by increases in expenditures in Services and Supplies ($42,000) and Salaries and Benefits ($48,000). The increased Service and Supply expenses are due to increased postage expenses, for document requests by homebound members of the public during the COVID-19 pandemic. The deficit in Salaries and Benefits is due to use of unbudgeted overtime and extra help, along with an unanticipated payout due to an employee separation.
The Assessor’s division is projecting a minor positive variance primarily related to salary savings due to a vacancy in the division ($62,000) and a small savings in Services and Supplies ($22,000) due to delays in project implementation. These savings are being offset by anticipated revenue reductions in Supplemental Roll fees ($79,000).
Though the Elections Division is also projecting a positive variance for year-end, the department experienced higher than anticipated Extra Help and Overtime fees ($113,000) related to the 2020 Presidential Election. These increased salary and benefit expenditures are being offset by a reduction in service and supply expenses also related to the election ($119,000).
Capital Improvement Projects:
Knights Landing Flood Risk Reduction Project: Appropriations are being requested for the first installment of the Board approved three-year contract for the Knights Landing Flood Risk Reduction Project in the amount of $3,863,299. The project funding has been secured through grants and various funds from the County and was supported by the Board at the January 26, 2021 Board meeting.
Yolo Library Replacement Project: The Project is projected to end the fiscal year in line with the budget. However, a budget adjustment is being requested to move $750,000 of appropriations from Services & Supplies to Capital Assets.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Capital Improvement Projects’ budget as described above.
Child Support Services: Although Child Support Services (CSS) is projecting a positive net variance of approximately $41,000, CSS will likely not stay within Yolo’s State allocation if more staff transition from Sutter County and Colusa County to become Yolo employees by the end of 2020-21. The department is working with the State to reallocate unused funds from Sutter and Colusa and is confident that it will stay within total budgets of the larger regional allocation amounts. As of January 2021, three Sutter employees transitioned to Yolo.
Community Services: The Community Services department is projecting a positive net budget variance of $9 million, primarily due to delayed completion of capital projects and purchase of equipment in the Roads and Integrated Waste Management (IWM) divisions.
The Roads fund is projecting a positive net variance of approximately $2.3 million primarily related to delays in various projects including the County Road 29 bridge over Dry Slough project which is partially offset by the reduced Intergovernmental revenue.
Integrated Waste Management (IWM) is projecting a positive net variance of $4.6 million, primarily due to a significant reduction in Services & Supplies related to delays in capital projects and equipment purchases ($4.8 million). The surplus in Services & Supplies is partially offset by an increase in Other Charges, specifically non-cash depreciation ($658,000). The division is also not planning to purchase a hybrid truck ($45,000) and instead will wait to purchase a fully eclectic truck in 2021-22. A budget adjustment is being requested to decrease appropriations for this delayed purchase.
The IWM Landfill Post-Closure fund is projecting a positive net variance of approximately $1.2 million primarily due to delays in capital projects.
The Planning and Building Division is projecting a positive net variance of $218,000 primarily due to a reduction in the CalRecycle grant. The division is requesting to re-appropriate Board Approved allocation of $50,000 at the Adopted Budget Hearing from Services and Supplies to Salaries and Benefits to fund an extra-help Sustainability Coordinator position to further extend the County’s commitment towards environmental sustainability. The department is working with Human Resources on the position specification to be used and expects to provide more information on the staffing needs when the Sustainability Plan is presented to the board later in the spring.
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 negative variance of $82,000. Services and supplies budget was reduced by $75,000 in an anticipation of savings in the fiscal year 20-21. Major budgeted services are Sustainability Plan Implementation, Knights Landing park design (Non-Capital expense), Community Link for Census outreach and 2-1-1 helpline, and Legislative Consulting Services. The projected savings in these services are significantly lower than expected ($10,000) and due to increase need in the Community from COVID-19, 2-1-1 staff cost has been increased and there is additional cost ($22,000) to the County for the Service. The department is requesting to restore the services budget to cover the increased the 2-1-1 cost and to cover the existing services and supplies commitments. The total requested increase is $82,000.
Yolo Electric is requesting to increase appropriations to align current year trend of electrical usage amongst County facilities. The increase in the expenditures will be recovered by internal charges to departments.
The County Administrator’s Office is requesting appropriation of $110,000 from General Fund Contingency to fund expenses related to Homeless encampments clean up ($50,000). The remaining $60,000 is requested to be appropriated to fund the development of the Online Strategic Plan dashboard. The interactive dashboard is to track Strategic Plan progress, increase transparency, and public awareness. The dashboard is envisioned to display the Strategic plan goals, track outcomes progress using the established metrics, and detail specific strategies.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Administrator Office’s budget as described above.
County Counsel: County Counsel is projecting to end the fiscal year with a positive net variance of approximately $64,000 primarily due to a reduction in legal services charges. Staff will continue to closely monitor this area. Indigent Defense is projecting to end the fiscal year with a balanced budget as most expenditures associated with this program are fixed by contract.
County Service Areas: Most County Service Areas (CSAs) and Assessment Districts are projected to end the year close to the budgeted amount.
North Davis Meadows Sewer is projecting a negative net variance of $98,000 due to paying half of the outstanding loan, which was not budgeted. This unit is requesting a budget adjustment to use Fund Balance to appropriate this payment. North Davis Meadows Lighting is projecting a positive net variance of $27,000 due to lower than anticipated utility charges.
Wild Wings Golf Course revenues have been much higher than anticipated due to COVID-19. This unit is requesting to use those savings to increase appropriations $100,000 to purchase a used rough mower and a used fairway mower in fiscal year 2020-21. Wild Wings Sewer is projecting a negative net variance due to an outstanding loan payment which was not included in the 2020-21 Adopted Budget. This unit is requesting a budget adjustment to $90,000 of Fund Balance to appropriate for this loan.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Service Area’s budget as described above.
Debt Service: Debt Service is projecting to end the fiscal year with a budget deficit of approximately $2.85 million. The deficit is due to a timing issue on the purchase of the 100 W. Court Street buildings ($3.1 million) which was expected to occur in fiscal year 2019-20 however closed in August, 2020. Financial Services is requesting use of $3.1 million in additional available fund balance (due to the delayed purchase) in the 2020 Revenue Lease Bond unit of the Debt Service Fund.
This deficit is being partially offset by anticipated savings in the Trane Energy Project ($276,000) Debt Service Fund due to certain improvements in the original project scope being determined not to be needed at this time.
Staff recommends approving the budget adjustment as reflected in Attachment B to adjust the Debt Service’s budget, specifically for the 2020 Revenue Lease Bond, as described above.
District Attorney: The District Attorney is projecting to end the fiscal year with a positive net variance of approximately $654,000. The positive variance can be attributed to the Criminal Prosecution division due to vacancy savings from five unfilled Attorney positions and one Investigator. There are additional savings from canceled trainings, court closures, reduction in expert witness and transcription expenses due to COVID. All other District Attorney divisions are projecting either minor positive variances or balanced. Staff will continue to monitor expenditures and revenues closely.
Financial Services: The Department of Financial Services is projecting to end the year with a positive variance of approximately $29,000, primarily due to salary savings generated by unexpected vacancies throughout the department ($135,000). This savings is being offset by anticipated reductions in revenues ($106,000) related to early implementation of AB1869, which eliminated a series of Criminal Justice fees, and decreased revenue from the Treasury pool as a result of a vacant position.
General Services: The General Services department is projecting to end the fiscal year with an overall positive net variance of $1,116,000. The positive variance can be attributed to two divisions, Facilities $725,000 and Parks $384,000. The Facilities variance is attributed to salary surplus due to a number of staff working in the COVID Response Operation Center and a vacant Office Support Specialist position. Service and supplies has a significant savings of $488,000 due to COVID, telecommuting savings and a reduction in work order expenses.
The Parks positive variance of $384,000 is due mostly to salary savings from a vacant position and a reduction in salary expense from administrative staff. There is also additional savings in extra help and overtime due to the closure of parks and campgrounds from COVID and the LNU Lightning fires. These closures only had a slight impact on revenue since Park revenues are only a minor contributor to the department.
Health and Human Services Agency: The Health & Human Services Agency is projecting to end the year with a positive net variance of $9,100,032.
The Public Health division is projecting a net positive variance of $1,008,654. A significant portion of this variance is due to $724,893 from three Epidemiology and Laboratory Capacity (ELC) Enhancing Detection grants from the California Department of Public Health, which were appropriated by the Board at the January 12, 2021 meeting. Another major driver behind the positive variance is due to catch-up in revenue from old Wellness Recovery Action Plan (WRAP) transfers from prior years that were completed in the current year.
As part of the CARES expenditure plan close-out strategies, presented to the Board on November 17, 2020, CARES Act funds were used to reimburse approximately $2.5 million in eligible Jail-Medical expenses. The resulting general fund savings was then proposed to be re-directed to support public assistance cost increases resulting from COVID-19. As reflected in the December 15,2020 CARES update to the Board, HHSA has indicated that the COVID-19 pandemic has resulted in significant caseload growth primarily in four programs: Foster Care, CalFresh, Adult Protective Services, and In-Home Supportive Services.
| Program |
%Increase |
| Foster Care |
37% |
| CalFresh |
19% |
| Adult Protective Services |
17% |
| IHSS |
4% |
Separately, on December 15, 2020 the Board approved a revised agreement with California Forensic Medical Group (CFMG), which was projected to result in cost savings of approximately $955,000 in 2020-21. In total, general fund savings resulting from the CARES Act reimbursement and renegotiation of the CFMG contract are expected to be approximately $3.5 million. It is recommended that these general fund savings be shifted to Social Services public assistance in order to address increased costs resulting from COVID-19 and to mitigate a fund balance deficit from 2019-20.
Behavioral Health is projecting a net positive variance of $7,531,419. A major driver behind the large saving is Mental Health Services Act (MHSA) 3 years’ plan being new and the execution of the new programs and contracts is starting slower than expected. The variance is expected to recede smaller as the plan matures in the next few months and the contracts are executed. An area that is being watched is that the Substance Use Disorder program is in the midst of an audit finding appeal over $200K. The County may need to pay back the funds, should the appeal be denied however a budget adjustment is awaiting the results of the appeal.
Social Services is projecting a net positive variance of $559,959. The major driver behind the positive variance is better than expected realignment revenues. Foster care expenditures are coming in higher than budgeted due to increased caseload and shift in placements from individual placements to group homes. Group home placements are significantly more expensive. Expenses drive revenues in Foster Care and Adoption Services, hence additional expenses are expected to be covered by additional state revenues. Public Aid Assistance is projecting a deficit of $290K due to the funding gap caused by the wage increase for In Home Supportive Service (IHSS) workers. Staff is monitoring the fiscal situation closely and will update the Board if an action is required at 3rd quarter budget monitoring.
Homeless Services is requesting to appropriate $1.49 million in two grants that were previously received but not yet budgeted. $837,100 of the total $1.49 million for Emergency Solutions Grant (ESG)-COVID and $662,033 is from the California Department of Social Services for Project Room Key & Rehousing Strategy, the funding will be used for Direct to Client homeless services.
The General Services Department has initiated a physical relocation of the Veteran's Services Office from its current location at 120 W. Main Street in Woodland to the Health and Human Services Agency Bauer building located at 137 N. Cottonwood Street in Woodland. This move is a part of a larger shuffle of County departments including Information Technology Services and Agriculture, and the move of the Veteran's Services Office was not included in the fiscal year 2020-21 budget. The General Services Department and Health and Human Services Agency worked together to design a space that is safe and supportive for our Veteran clients who struggle with PTSD and Military Sexual Trauma. The estimate for the cost of the move is $63,652 and the Veteran's Services Office budget is being adjusted accordingly with the project being funded by County General Fund Contingency funds.
Human Resources: Human Resources is requesting $22,000 from General Fund contingency to hire one full-time extra help employee through the end of the fiscal year. This position will take over part of the COVID-19 workload in order to timely respond to cases in the workplace and meet all compliance requirements such as CalOSHA reporting.
Staff recommends approving the budget adjustment as reflected in Attachment B to adjust the Human Resource’s budget as described above.
Innovation & Technology Services: The ITS department is projecting a negative net variance by $82,000 due to the PC Replacement fund. Various departments have requested reimbursement from the PC replacement fund for a total amount of $147,000. Since the reimbursements are from the departments’ own contributions, a budget adjustment to use fund balance will resolve the deficit.
The ITS and Telecom divisions are projecting small positive variances. In the ITS division, any reduction of expense or vacancy savings will result in an offsetting reduction of revenue. These adjustments will be made at the end of the fiscal year during the annual year-end true-up calculation.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Innovation & Technology Services budget as described above.
Library: Library is projecting to end the fiscal year with a positive net variance of approximately $506,000, primarily due to savings from vacant positions at the Mary L. Stephens Davis Library and a significant reduction in Extra Help due to COVID-19. The department is requesting to use savings to appropriate funding to purchase and install fencing off the patio of the AFT West Sacramento Library ($30,000), and update the budget to reflect purchasing hotspots for distance learning families funded by the CARES Act ($35,280) and increase Services & Supplies for the library collection funded by residual funding from the successor agencies. ($100,000).
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Library’s budget as described above.
Probation: Probation is projecting to end the year with a positive variance of approximately $854,000. This surplus is largely the result of unanticipated vacant positions throughout the department and the continued placement of multiple Probation staff at the CROC ($890,000). Additional savings is being garnered from reductions in Services and Supplies/Other Charges expenses, due to reduced caseloads and services provided as the COVID-19 pandemic continues ($255,000).
Though the department is projecting a surplus, the Alternative Sentencing Program which provides landscaping services to various County departments and partners, has largely been unable to function in light of COVID and is projecting lower than budgeted revenues as a result. Additionally, one unit, CCP Planning, is projecting a deficit due to higher than anticipated staffing costs. The department will be monitoring that unit and, if necessary, will request the use of available fund balance during the Third Quarter monitoring process.
The department was also able to absorb an equity adjustment from the Probation Association MOU within existing appropriations. The department-wide impact of this adjustment was approximately $277,000.
Public Defender: The Public Defender is projecting to end the fiscal year with a net positive variance of approximately $78,000, due mostly to vacancy savings from a retirement.
Sheriff: The Sheriff’s Office is projecting to end the fiscal year with an overall surplus of approximately $2.4 million. Of the total surplus, approximately $1.0 million is in the Sheriff’s special revenue funds another $1.0 million is a combination of Patrol and Detention.
The positive variance from the Sheriff’s special revenue funds, $1.0 million, is a contribution from many of the funds. Small & Rural $318,000 is due to the Jail Management/Records Management project behind schedule due to COVID-19. The delays will roll the project in to the FY21-22 fiscal year. A combined surplus of $175,000 in COPS Detention and COPS Patrol is due to service and supply savings. These savings will be rolled into fund balance for several large projects in future fiscal years. Court Security is projecting a year-end positive variance of $150,000 due to vacant positions.
Animal services is projecting a $223,000 net positive variance. Salary and benefits and service and supplies have projected savings due to vacancies, a reduction of medical supplies and a reduction in intake reducing the need for supplies. The savings are partially offset by a reduction in revenue of $60,000 due to the effects of COVID-19 and fees collected for spay and neuter services, surgeries, and other non-emergency medical procedures. Any surplus in Animal Services will go back to the Animal Services fund balance for use in future capital purchases.
Detention is projecting a year-end net positive variance of approximately $551,000 due to vacancy savings and a decrease in service and supply purchases. Detention has had a number of vacant positions, in addition to the positions held vacant at the Adopted Budget. The vacancy savings have been able to offset wage increases due to the Correctional Officers Association MOU approved 4/22/20. The impact to Detention is approximately $493,000. In addition, due to Correctional Officer minimum staffing requirements and COVID-related absences, the Sheriff’s Office is projecting to exceed their overtime budget. Some of the salary expenses will be offset by an increase in State Prison reimbursement for the State inmates being housed in the county jail.
Service and supply purchases are projected to be below budget by approximately $225,000. Detention is requesting to utilize a portion of their expense savings to purchase a replacement Detention transport van and replacement batteries for jail doors. The cost of the van, including minor equipment, is $61,000. The current transport van has over 100,000 miles and is used to transport inmates to Kern County. The current jail door batteries have not been replaced for over 10 years. The replacement batteries are necessary and will cost $18,000.
The Patrol division is projecting a year-end net positive variance of $560,000 primarily related to a number of vacant Deputy positions. Patrol was required to hold 3 Deputy positions vacant from the Adopted Budget, but due to the extensive hiring process, approximately 8 positions have been vacant during the fiscal year. The salary surplus of $696,000 has been partially offset by a reduction in revenue due to COVID. Revenue from the County Fair and the Almond Festival, $131,000, will not be realized due to the cancellation of the events.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Sheriff’s budget as described above.
Supplemental Retirement and OPEB Rates: In response to the COVID-19 induced recession, 2020-21 fiscal year budget-balancing strategies included lowering supplemental retirement charges to 1% and lowering the Other Post-Employment Benefits contribution rate to 7.8%. However, due to an error, the actual rate charged to the departments was not updated in the payroll system and inadvertently left unchanged (Supplemental Pension at 1.25% and OPEB at 8%).
Better than expected economic recovery and revenues to the County, and the majority of the departments projecting expenditure under budget, the staff recommends to approve maintaining current active charge rates through the current year rather than rebate amounts back to the departments. This would reduce the level of increase needed in the 2021-22 budget to achieve desired funding levels.
Public Safety Sales Tax and Realignment Revenue: All major Countywide revenue sources came in above budget in the first six months of the 2020-21 fiscal year due to a stronger than expected economic recovery after the initial shutdown back in March 2020. In January some signs of deterioration in the US Labor market were seen in the form of a significant increase in the number of people first time filing for unemployment insurance, and an unchanged unemployment rate first time since April 2020.
- 1991 Realignment Health and Human Services: The revenues are projected to end the year 6% ($1.8 million) above budget
- 2011 Realignment Health and Human Services: The revenues are projected to end the year 4% ($545K) above budget.
- 2011 Realignment Public Safety: The revenues are projected to end the year 5% ($819K) above budget
- Public Safety Sales Tax (Proposition 172): The revenues are projected to end the year 4% ($851K) above budget
General Purpose Revenue
General Purpose Revenue is projecting to end the fiscal year with a net positive variance of $972,000. The majority of the variance is attributed to a projected increase in Sales Tax revenues of $234,000 and unbudgeted revenue of $750,000 from Successor Agency Residual Distributions due to a Court decision required to be implemented by the Auditor-Controller (part of Chief Financial Officer responsibilities) in the distribution of residuals. This increase offsets lower than budgeted projections of hotel transient occupancy tax and any court-related revenues. Staff will continue to closely monitor general purpose revenues throughout the year.
Contingency Appropriations: The table below reflects the balance of all contingency appropriations:
| Contingency Designation |
Original Allocation |
Amount Remaining as of 12/31/2020 |
| General* |
$ 2,500,000 |
$ 2,390,000 |
| Health and Human Services |
$ 500,000 |
$ 500,000 |
| IT Innovation |
$ 150,000 |
$ 150,000 |
| Public Safety |
$ 1,300,000 |
$ 1,300,000 |
| Safety and Security |
$ 100,000 |
$ 100,000 |
| COVID** |
$ 857,683 |
$ 857,683 |
| Total |
$ 5,407,683 |
$ 5,288,483 |
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 2021-22 Adopted Budget.
*Mid-year monitor includes a total of $195,652 appropriation from General Fund Contingency not reflected here.
** A portion of the COVID Contingency in the amount of $200,000 was appropriated in January for a Restaurant Fee Waiver Program. |