Year-end projections have been developed by each department based on actual revenue and expenditure data through March 31. Overall, most departments are projecting to end the year within budget. The sections below highlight areas where significant variances from budget 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.
General purpose revenues are projected to end the fiscal year approximately $237,000 over budgeted amounts, due primarily to one-time proceeds from the sale of fixed assets, the diversion of Bauer building rent from Facilities to countywide revenues, and the timely payment of city development fees. The increases are offset by a decrease in redevelopment pass thru and justice collections. Public Safety Proposition 172 sales tax is trending approximately $340,000 above budget due to higher statewide revenues. Additionally, Realignment revenues are trending over budget in most accounts, particularly in 1991 Social Services as a result of additional revenues related to the In-Home Supportive Services (IHSS) cost shift enacted by the state in 2017. However, as discussed further below, these additional Social Services Realignment revenues are largely offset by increased IHSS costs.
Assessor/Clerk-Recorder/Elections is projecting to end the year with a surplus of $608,000, which is primarily due to increased revenue and staffing vacancies in the Assessor and Clerk-Recorder divisions. The Elections division is projecting a year-end deficit of approximately $41,000 due to an estimated increase in expenses for the June 2018 election, including an increase in ballot printing costs. No budget adjustment is 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.
Through May 2018, Cannabis program expenditures and encumbrances are approximately $2 million. Expenditures for the remainder of the year are projected to be approximately $1.8 million, which includes $780,000 in staffing costs from various County departments that have not yet been billed, and $1 million in other expenses, including consultant costs, vehicle purchases and other supplies and equipment. The year-to-date program revenues total $3.7 million, of which $3.3 million is due to annual certification fees. Additional revenues of approximately $250,000 are projected for the remainder of the year. The table below provides a fiscal summary of the Cannabis program for 2017-18.
Costs related to enforcement of non-licensed cultivation, which are currently funded by the General Fund, are anticipated to be lower than budgeted amounts. It was originally anticipated that 80% of two new Deputy Sheriff's time would be spent on non-licensed enforcement. However, actual time tracking throughout the year has indicated that a much smaller percentage of time has been spend on enforcement activities for non-licensed cultivators. The Sheriff's Office is still working to determine exact costs related to non-licensed enforcement, and more information will be provided once actual amounts are known at year-end.
The Community Services department is projecting to end the fiscal year with a surplus of $5.9 million. Integrated Waste Management is projecting a $5.1 million budget surplus, primarily due to capital projects and equipment purchases that are being pushed to 2018-19. Any surplus remaining at year-end will offset the budgeted use of fund balance. The Post Closure fund is projecting a $109,000 deficit which is attributable to a market value adjustment of the investment holdings. The Treasury is evaluating the long term investment performance against the investment expectation. No budget adjustment is 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.
Road Fund Construction and Maintenance is projecting a surplus of $723,000 at year-end. This is due to the construction phase of the pavement preservation project not starting until the next fiscal year, lower than anticipated bids for the County Road 99W Bridge, and the delay of capital projects due to staff vacancies.
Planning and Building is projecting to end the year with a $226,000 surplus, which is primarily attributable to salary savings from vacant positions.
The County Administrator’s Office is projecting a surplus of $477,000 in Tribal Mitigation as a result of the final payment of the $1.5 million one-time contribution under the 2017 Intergovernmental Agreement with the Yocha Dehe Wintun Nation. All other budget units are projected to end the year in balance.
Financial Services is projecting to end the year with a budget surplus of $67,000 due to salary savings from vacant positions. Although the department overall is not projecting a deficit, budget adjustments are needed for a number of the Debt Service funds. First, a deficit of $250,000 is projected in CIP Debt Service due to the cost of bond issuance which was not included in the Adopted Budget. This cost will be funded by bond proceeds. Additionally, a deficit of $2,100 is projected in DA Building Debt Service due to arbitrage compliance and continuing disclosure services, which were not included in the Adopted Budget. These costs will be funded by an additional transfer from the ACO fund. Finally, a budget adjustment is also needed to transfer excess parcel tax revenue from the Davis Library CFD Debt Service fund to the Davis Library Measure A fund for use in operations instead of utilizing fund balance. This adjustment will be funded by increased parcel tax revenue.
General Services is projecting to end the year with a $540,000 surplus. The Facilities division was able to reduce its projected deficit at midyear due to improved billing practices and more billable/collectible labor charges. Parks has increased its surplus due to slower than anticipated construction on the Knights Landing Boat Ramp and Grasslands Park projects.
A year-end deficit is projected in core Mental Health due primarily to lower Medi-Cal billing. The 2017-18 Adopted Budget assumed increases in Medi-Cal revenues as a result of billing improvements; however, these assumptions have proven to be overly optimistic. This shortfall will be partially offset by salary savings from vacant positions. In addition, Agency staff have conducted a thorough review of prior year activity, and have determined that both 1991 and 2011 Realignment funds were previously allocated for Substance Use Disorder and Mental Health Services Act (MHSA) expenditures that could have been funded by other sources. As a result, staff is proposing to redirect these prior year Realignment revenues to core Mental Health to mitigate the balance of the deficit. The Department of Financial Services is working with HHSA to develop a separate budget resolution that will be brought to the Board at a later date.
Social Services is projecting a deficit of $1.2 million in the Public Assistance Administration unit due to the new In-Home Supportive Services (IHSS) Maintenance of Effort (MOE) resulting from the cost shift enacted by the State in 2017. When the 2017-18 Adopted Budget was approved, the County’s IHSS obligation under the cost shift was not yet known. This increased cost will be balanced by additional 1991 Social Services Realignment as provided under the current agreement, including accelerated caseload growth and redirected growth from Health, Mental Health and CMSP subaccounts. It should be noted that the redirection of realignment growth will reduce funding that would otherwise be available to address needs within these areas. In addition, assistance payments projected to exceed budget amounts by approximately $1.5 million due to increases in foster care caseload and placement costs. This increase will be funded by increases in state and federal revenues.
Public Health is projecting a surplus of approximately $7.6 million, primarily related to Intergovernmental Transfer (IGT) plan expenditures that are lower than anticipated. The Department has received notice that previously authorized federal Emergency Preparedness grant funds are now being allowed to carry over from the prior year, which will result in unanticipated revenue and expenditures in the current fiscal year.
The Library is projecting to end the year with a budget surplus of $228,000 due primarily to increased property tax revenues. However, due to higher than anticipated construction costs related to the installation of the automatic book sorter for the Davis Branch, a budget adjustment is needed to increase appropriations for Capital Assets, which will be funded by a reduction in the budget for salary & benefits.
Child Support Services is projecting to end the year with a positive net variance of $417,358 primarily due to vacancy savings and various reductions in service and supplies.
The District Attorney’s Office is projecting to end the year with a positive net variance of $2.9 million largely due to an increase in Consumer Fraud and Environmental Protection settlement revenues, vacancy savings, and a decrease in the utilization of outside laboratories for product testing. These savings are partially offset by a reduction in cost allocation to the Cannabis fund. Other significant variances include a $290,000 reduction in Justice Assistance Grant (JAG) revenues in the Neighborhood Court program due to pending grant renewal, which is offset by elimination of cost reimbursements to HHSA for a Social Worker Practitioner and vacancy savings ($473,725). Finally, the year-end projections reflect lower expenditures and revenues related to the ESCARS grant, as the ESCARS software development has been postponed to 2018-19.
Probation is projecting to end the year with a positive net variance of $1.8 million, which is largely attributable to significant vacancy savings ($1.8 million) and savings in the Northern California Construction Training (NCCT) program, youth placement, and mental health contracts due to reduction in the population of out of custody youth. These savings are partially offset by an increase in Law Suite Case Management System development costs ($76,500), reductions in Federal ORR grant reimbursements due to lower salary and benefits expenditures ($270,000), and reductions in YOBG realignment revenues ($291,000) due to lower felony dispositions in Yolo County and decline in youth population between the ages of 10 and 17.
Additionally, Probation’s new cost allocation methodology previously discussed in the mid-year staff report will not be implemented until FY 2018-19. As part of their 3rd quarter submission, various budget adjustments are requested to reallocate appropriation between budget units in order to maintain a balanced budget. The significant adjustments include increase in Law Suite Case Management System development costs ($76,500) and various increases in ORR program related clothing, food, communication, and transportation costs ($84,692), which are funded savings in other areas.
The department is projecting a surplus of $30,200 due to salary and benefit savings and a small reduction in service and supplies. The department is requesting to use this surplus to replace an aged, high mileage vehicle. The replacement vehicle is being requested with the 2018-19 Adopted Budget and if purchased in FY17-18, the 2018-19 request will be rescinded.
The department is projecting a surplus of $383,000. Vacancy savings continues to offset increases in overtime, food expense and general liability and worker’s compensation insurance costs. Food expense for the detention center continues to escalate due to the increase in food prices and the cost of meeting nutritional requirements.
The table below reflects the balance of 2017-18 contingency funds as of June 5, 2018. Any amounts that are unspent at year-end will be carried forward and allocated as part of the 2018-19 Adopted Budget.
The County Administrator’s 2018-19 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.
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 2018-19 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 2018-19 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 2018-19 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 2018-19 Capital Improvement Program budget is summarized separately from the operating budget. Exhibit 1A reflects the budgeted transfers among various funds and budget units, which are presented separately to eliminate double-counting that would occur if included in Exhibit 1.
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 2018-19 Recommended Budget.
Budget Overview
The 2018-19 Recommended Budget is balanced, meets State appropriation requirements and aligns with the Board of Supervisors’ adopted financial policies. General purpose revenues are projected to increase approximately 3.7% over current year-end estimates, due primarily to an estimated 4.75% 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 $4.8 million, which estimates the ending fund balance at June 30, 2018. This estimated fund balance is used to fund one-time appropriations such as contingencies and contributions to reserves.
The Recommended Budget includes a total of 41 new positions, partially offset by the elimination of 17 existing positions for a net increase of 24 positions. In addition, the majority of the new positions (38.2) are funded by sources other than the General Fund. While the Recommended Budget does include a few (2.8) new General Fund positions, these increases are offset by reallocations and reductions of vacant positions, resulting in an overall net reduction of 4.7 General Fund positions.
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. The 2018-19 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 the notable funded initiatives.
Strategic Plan Initiatives Funded in 2018-19 Recommended Budget
| Strategic Plan Goal |
Priority Focus Area |
Initiative |
| Thriving Residents |
Develop and implement strategies to reduce homelessness. |
- Collaborate with at least two local jurisdictions to implement policies to improve community health and wellness for residents
- Improve long-term financial self-sufficiency outcomes for General Assistance clients by strengthening care coordination between public assistance, housing, employment and health care services
- Ensure timely access to assessment and services for children in Child Welfare Services
|
| Safe Communities |
Identify and address service delivery and critical infrastructure needs in unincorporated communities |
- Improve re-entry coordination for individuals with behavioral health conditions leaving custody settings
- Apply for accreditation of our Operations and Emergency Services
- Develop comprehensive policy regarding maintenance of rural infrastructure for the County
- 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. |
- Conduct an inventory and update of the Climate Action plan and integrate it with the hazard mitigation plan
- Investigate feasibility of a parks district
- Continue staffing support for the Valley Clean Energy, Community Choice Energy Program
|
| Flourishing Agriculture |
Facilitate connections between growers and buyers. |
- Develop a land use ordinance for cannabis
- Promote access to healthy, locally grown food; assure proper marketing and standards of fresh produce
- Develop online tools for residents and farmers
|
It is anticipated that additional Strategic Plan funding may be recommended in the Adopted Budget in September as further budgetary needs are identified.
Health and Human Services
The 2018-19 Recommended Budget for the Health and Human Services Agency reflects an overall expenditure increase of $10.2 million over 2017-18 Adopted, primarily driven by increases in salary & benefit costs and provider services related to the Drug Medi-Cal Organized Delivery System. In total, the Recommended Budget includes 26 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 2018-19 Recommended Budget for HHSA.
HHSA New Positions Funded in 2018-19 Recommended Budget
| Program |
Position |
FTE |
Funding Source |
| Medi-Cal & CalWORKS Administration |
Public Assistance Specialist III |
6 |
State/Federal |
| Medi-Cal & CalWORKS Administration |
Employment & Social Services Program Supervisor |
2 |
State/Federal |
| Medi-Cal & CalWORKS Administration |
Employment Services Spec. III |
2 |
State/Federal |
| Medi-Cal & CalWORKS Administration |
Administrative Services Analyst |
1 |
State/Federal |
| Medi-Cal & CalWORKS Administration |
Office Support Specialist |
2 |
State/Federal |
| Medi-Cal & CalWORKS Administration |
Administrative Hearings Officer |
1 |
State/Federal |
| Adult Protective Services |
Social Worker Practitioner |
1 |
Federal/Realignment |
| Drug Medi-Cal |
Clinician II |
1 |
State/Fed/Local |
| Drug Medi-Cal |
Behavioral Health Case Mgr. II |
2 |
State/Fed/Local |
| Prevention & Early Intervention |
Clinician II |
1 |
MHSA/Federal |
| Community Services & Support |
Behavioral Health Case Mgr. II |
3 |
MHSA/Federal |
| Crisis Intervention |
Clinician II |
4 |
SB82 Grant |
| |
Total New Positions |
26 |
|
In addition to the positions listed above, the Recommended Budget includes funding for two new Public Guardian positions that were approved on April 24, 2018 in support of the Corrective Action Plan.
A significant change to HHSA’s budget in 2018-19 is the enhancement of alcohol and drug treatment services under the Drug Medi-Cal Organized Delivery System (DMC-ODS). The DMC-ODS is a voluntary pilot program approved by the federal government in 2015 that provides counties the opportunity to expand substance use services that may be billed to Medi-Cal. Such expanded services include residential treatment, withdrawal management, case management and recovery services. In addition to three new full-time positions to support this program, the 2018-19 Recommended Budget includes an increase of $4.6 million to expand provider services to Medi-Cal enrollees in the County. These expanded services are funded with federal Medi-Cal dollars and increased state funding.
The 2018-19 Recommended Budget also incorporates additional funding to meet the County’s new In-Home Supportive Services (IHSS) Maintenance of Effort requirements. As part of the IHSS cost shift enacted by the State in 2017, counties are responsible for a new IHSS Maintenance of Effort (MOE) requirement that represents a significant cost increase over the prior MOE. In 2017-18, the County’s IHSS MOE was determined to be approximately $8.1 million, compared to an MOE of just $4.8 million in 2016-17, prior to the IHSS cost shift. For 2018-19, the MOE is subject to a 5% inflator, for a total of $8.5 million.
To assist counties in absorbing the additional costs, the State has agreed to provide $1.1 billion in General Fund assistance over four years to partially offset county cost obligations. In 2017-18 this assistance totaled $400 million statewide, which will decline to $330 million in 2018-19 and to $200 million in 2019-20. As a result, the County’s net IHSS obligation will increase due both to the annual MOE inflator and to the phase-out of State General Fund support. Once the State General Fund support is factored in, the County’s net IHSS obligation for 2018-19 is estimated to be $6.9 million.
Other significant adjustments in the 2018-19 Recommended Budget for HHSA include a $2.1 million increase in foster care assistance payments due to increasing caseloads, and a $545,000 increase in overtime primarily reflecting current trends in Child Welfare Services (CWS). These cost increases are partially offset by a $1.2 million reduction in direct to client services and an $855,000 reduction in CalWORKS assistance payments. The Agency also requested five additional CWS positions that are not recommended at this time due to the historically high level of vacancies in the CWS program. Staff will continue to evaluate these requests for the Adopted Budget in September.
Community Services
Planning and Building: The 2018-19 Recommended Budget for the Planning & Building division includes a $368,000 reduction in cost allocation to the cannabis fund and an increase of $112,000 in services and supplies. The increase in services and supplies is due to the addition of a contract for cannabis related CEQA compliance services which is partially offset by a reduction in other contracts, including the contract for a fee study which has been completed. The budget also includes an increase of approximately $334,000 in revenue as a result of the department’s comprehensive fee study, as well as an increase in application fees for cannabis development agreements.
Environmental Health (EH): The 2018-19 Recommended Budget for Environmental Health includes an $180,000 decrease in the costs related to the Hazmat Vehicle Storage. Although the project was scheduled to be completed in FY 2017-18, it has been delayed until FY 2018-19. In addition, the scope of the project has changed, resulting in a reduction of the total project cost from $380,000 to $200,000. Other significant changes include an increase of $119,000 in allocated costs (A-87 charges, IT Connectivity, Public Liability Insurance) and the budgeted replacement of fifteen computers and tablets. Additionally, the division is replacing two vehicles, which are being funded with CUPA funds and fee revenue.
Integrated Waste Management (IWM): The 2018-19 Recommended Budget for IWM includes a new limited term Junior Engineer, additional extra help funding, and a $2.3 million increase in services and supplies due primarily to increases in architectural and other professional services contracts. Other significant changes include a $1.1 million increase in capital improvement projects including the reconstruction of the leachate pond and liquid digester construction and testing, and $1.2 million for various capital asset equipment purchases.
The budget reflects a $2.0 million increase in revenue due to increased volume from commercial landfill business and power sale to SMUD. Additionally, IWM is using $1.5 million in additional fund balance to finance capital expenditures in FY 2018-19.
Roads: The Recommended Budget for Roads includes a decrease of $1.5 million in capital projects due primarily to the completion of road and bridge improvement projects, including the bridge replacement project on CR 99W. The budget also includes the addition of a new Administrative Services Analyst and a new Office Support Specialist. Additionally, the Roads fund budget includes $830,000 for equipment purchases which include the purchase of seven vehicles and a replacement motor grader; these items are HUTA funded. The table below reflects the Roads fund projects that will be in the construction phase in FY 2018-19:
2018-19 Road Projects in Construction
| Project |
2018-19 Budget |
| Highway Safety Improvement Program Striping Project |
$850,000 |
| El Macero Fiberized Microsurfacing Project |
$1,089,000 |
| CR27 Rehabilitation from CR94-95 and CR97-98 |
$1,983,000 |
| 2018 Pavement Preservation Project |
$8,270,000 |
The Road division’s requested budget was balanced by deferring the purchase of new gates for the Public Works yard to the Adopted Budget ($50,000). The replacement of these gates cannot be funded with HUTA funds, so other funding options are being evaluated.
General Government
Agriculture: Agriculture’s FY 2018-19 Recommended Budget reflects a $99,000 net expenditure increase, which is primarily attributable to general salary and benefit costs. Additionally, the budget includes $73,000 for the purchase of three vehicles that are recommended for replacement by the Fleet Manager, to be funded by the Ag Equipment Replacement Fund.
Cannabis: The 2018-19 Recommended Budget for the cannabis program is $3.9 million, and includes seven full-time dedicated positions, including one new Office Support Specialist to coordinate activities and provide support for the Cannabis Taskforce. Other notable expenditures include $1.2 million in cost allocations from staff time in other departments and $1.3 million in contracts related to development of the comprehensive land use ordinance, laboratory testing, track and trace services, canopy measurement, and software for management of licensing and code enforcement activities. The Cannabis program revenues have increased by $114,059 from FY 2017-18 Adopted Budget due to higher canopy fee estimates. The canopy fee calculation for FY 2018-19 is based on more realistic estimates, which includes 33.8 acres of cultivation and is comprised of 70 growers and three nurseries.
The FY 2018-19 Recommended Budget also includes $70,500 for enforcement of illegal (non-licensed) cannabis cultivation, which reflects 15% of the cost of two Deputy Sheriff positions added in 2017-18 and minor supplies. This is in contrast to the FY 2017-18 Adopted Budget, which included 80% cost of two Deputy Sheriff positions and miscellaneous supplies. Time-tracking by the Deputies throughout fiscal year 2017-18 has indicated that a much smaller amount of time is spent on enforcement of non-licensed cultivation than originally anticipated.
Costs related to enforcement of non-licensed cultivators cannot be funded by regulatory cannabis fees. While it was originally anticipated that enforcement fees and administrative penalties would offset the cost of non-licensed enforcement, in most cases these fees and penalties cannot be levied due to the nature of the criminal enforcement process. While the General Fund is currently funding these activities in the FY 2018-19 Recommended Budget, this issue will be re-evaluated in the Adopted Budget in light of the passage of of Measure K. Attachment J outlines the recommended process, as reviewed by the Chair and Vice Chair, for implementation of an expenditure framework and spending plan for revenues from Measure K.
Assessor/Clerk-Recorder/Elections (ACE): The 2018-19 Recommended Budget includes a new Outreach Specialist position, which was reallocated from a previously unfunded Administrative Services Analyst position, and an increase in services and supplies to support the elections outreach program. Additionally, the budget includes an increase in salary and benefit costs as a result of position reallocations completed in FY 2017-18 as part of the department’s restructuring plan.
The Recommended Budget was balanced by eliminating three vacant positions, reducing the requested increase in overtime for the Assessor division, and modestly decreasing the Elections budget to align with historical spending trends. Additionally, the department will delay hiring a Clerk-Recorder-Assessor Program Manager position for six months to generate vacancy savings.
Department of Financial Services (DFS): The Recommended Budget for the department includes an increase of $319,000 in salaries and benefits due to merit and pension cost increases, and the department being fully staffed and not projecting any related vacancy savings. The budget also includes an increase in A-87 recoverable costs for accounting services, offsetting a portion of the expenditure increase. The department also requested a new Auditor II position, an extra help Office Support Specialist, and funding for new software purchases. However, these items are not recommended at this time and will be considered as part of the Adopted Budget in September.
County Administrator’s Office: The 2018-19 Recommended Budget includes a new Senior Management Analyst position to primarily update and coordinate the County website. Half of this position is funded by department IT charges, reflecting the countywide benefit of website improvements. In addition, the budget includes a $1.2 million increase in water resources grants, primarily related to the Small Communities Flood Risk Reduction (SCFRP) program. Grant-funded projects included in the Recommended Budget include $980,000 for SCFRP, $200,000 Westside Tributaries for flow monitoring of stream tributaries that feed into the Yolo Bypass, $200,000 River Parkways for improvements at Capay Open Space Park, $196,500 from State Water Contractors for updating the 2014 Yolo Bypass Drainage and Infrastructure Improvements study, and $125,000 from Sacramento Area Flood Control Agency (SAFCA) for impact analysis of state and federal projects in the Yolo Bypass and Delta.
Other significant adjustments in the CAO’s budget include a $5.8 million reduction in Housing & Community Development due to two active housing grants that ended in 2017-18. New grant amounts for 2018-19 will be known in September and included in the 2018-19 Adopted Budget.
The 2018-19 Recommended Budget for County Service Areas reflects an $8 million increase, of which $7.5 million is due to the North Davis Meadows Water System Consolidation Project. This project will connect North Davis Meadows to the City of Davis water system in order to comply with California drinking water standards and ensure the health and safety of the residents of North Davis Meadows. The project will be funded by a water rate increase that was approved by the Board pursuant to a Proposition 218 process on March 20, 2018.
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 leverage Rural Community Investment funding with Yocha Dehe’s Doyuti T'uhkama (State Tribal Compact credits) program. Additional details will be provided at the September budget hearing.
County Counsel: The 2018-19 Recommended Budget for County Counsel reflects a total expenditure increase of approximately $167,000, due primarily to increases in salary and benefit costs. The budget includes a new Deputy County Counsel III position for juvenile dependency to support Child Welfare Services, which will be fully funded by the Health & Human Services Agency. In addition, funding for contracts with outside counsel and experts increased by $60,000. This one-time increase is related to the need for outside counsel assistance with the California WaterFix litigation, a breach of contract lawsuit that is anticipated to go to trial in July, and the cannabis “early” development agreement process.
The Recommended Budget for County Counsel also includes a $209,000 increase in revenue from legal service charges due to an increase in the department’s hourly billing rate from $144 to $190. The previous hourly rate was based on costs from 2012-13, and is no longer fully recovering the cost of providing legal services.
Library: The 2018-19 Recommended Budget includes an increase in salary and benefit costs due to a new museum curator position that is being funded as part of the Gibson House operational plan ($100,000), and increased extra help for additional branch hours, literacy programs, and Library Archives projects ($120,000). Other significant expenditure changes include a $100,000 increase in building maintenance costs, including an HVAC replacement for the Esparto Branch, and $25,000 in funding for a new Library website. Additionally, the Library purchased an automatic book sorter in FY 2017-18 rather than lease the item over a 5-year period, resulting in a significant savings in capital lease payments in FY 2018-19.
General Services: The General Service Recommended Budget includes $772,890 of deferred maintenance projects for the replacement of HVAC controls at various county locations, a Muffin Monster for the Justice Campus and three replacement roof projects. A muffin monster is a grinder to shred material from the jail plumbing system to prevent clogging and is a requirement by the City of Woodland. The technology in the current HVAC controls is no longer supported and proactive replacement will prevent uninterrupted service at the various building locations. The roof replacements for FY18-19 are 120 W. Main St., the Agricultural shop and the Community Services garage, which have been identified as the most critical. Staff recommends that these deferred maintenance projects be funded with ACO funding.
The Recommended Budget also includes two new positions, a Network Systems Specialist and an Administrative Services Analyst. The Network Systems Specialist will provide support for security policies and the implementation of the new countywide phone system, telecom billing and countywide implementation of Office 365. The cost of this position has been included in the FY18-19 IT connectivity charges to county departments and fully cost recovered for IT. The Administrative Services Analyst will assist with the countywide telecommunications upgrade, drafting of policies and procedures, maintaining the Yolo County Park’s website, reconciliation of work orders and fees, and assist in the implementation of the Parks Marketing Strategy. This position will be funded 50% by Telecom and the remaining 50% by Parks and IT.
Additionally, the Recommended Budget includes replacement connectivity equipment. Countywide connectivity equipment is replaced on a rotating schedule. In FY18-19, replacement switches, uninterrupted power supply (UPS), blade replacements, and wireless access points are scheduled to be replaced. The cost of the equipment, $85,800, has been included in the FY18-19 IT charges. Not included in the Recommended Budget was $109,200 for connectivity equipment specific for the Sheriff campus, which staff is recommending be deferred to the Adopted Budget.
In addition, department requests for a Facilities vehicle, various asset purchases in the Parks division, and an Administrative Clerk position have been deferred to the Adopted Budget in order to balance the Recommended Budget for General Services.
Accumulated Capital Outlay (ACO) Fund – The 2018-19 Recommended Budget for the ACO fund is $3.5 million, including $973,000 for a number of significant maintenance projects as reflected in the table below.
| ACO 2018-19 Maintenance Projects |
| HVAC Control Replacements |
$320,754 |
| 120 W. Main St Roof |
$264,000 |
| Community Services Garage Roof |
$110,000 |
| Ag Dept Shop Roof |
$60,500 |
| Muffin Monster – Justice Campus |
$7,636 |
| Gibson House Remodel |
$200,000 |
| Total 2018-19 ACO Capital Projects |
$972,890 |
As discussed in the section above, these projects (excluding the Gibson House remodel) are included in the General Services budget, but will be funded by a transfer from the ACO fund. In addition, the ACO budget includes $1.3 million for debt service payments, including $1.2 million for the CIP bond and $95,000 for the DA building.
Other significant expenditures in the ACO fund include $372,000 for the HHSA West Sacramento lease payment, and $295,000 for Yolo Emergency Communications Agency (YECA) capital contributions. The contribution to YECA in FY18-19, increased by $151,000 in preparation for a radio and microwave overhaul project scheduled for 2026. The overhaul will replace radio and microwave equipment at eight radio sites, located throughout Yolo County, for public safety communications between law enforcement, fire and medical.
Law and Justice
Child Support Services: The Child Support Services FY 2018-19 Recommended Budget remain unchanged from the FY 2017-18 Adopted Budget. Significant expenditure adjustments include an increase of $153,000 in the general salary and benefit costs and $80,000 in A-87 charges, accounting charges, and miscellaneous office expenses. Additionally, the department is requesting $25,000 for a replacement vehicle, which is recommended for replacement by the Fleet Manager. These cost increases are being absorbed by elimination of four vacant positions, including a Supervising Child Support Officer, a Senior Child Support Officer, and two Child Support Officers. The vacancy eliminations will not negatively impact service levels, as the department is able to work with fewer resources and still manage the caseload efficiently without sacrificing service delivery by leveraging the current systems and processes in place, such as the Legal Paperless Solution (LPS) system and shared services contracts with other counties.
District Attorney (DA): The 2018-19 Recommended Budget for DA includes $323,343 for three new positions, including an Administrative Services Analyst, an Accountant, and a Paralegal funded by program revenues. In addition, the budget includes a new Legal Secretary position that is funded by salary savings from reallocating a DA Enforcement Officer to a lower-level position and a minor reduction in leave buyout. Additionally, the budget includes $111,000 for purchase of one new vehicle and two replacement vehicle requests funded by program revenues. The replacement vehicles have high mileage and are recommended for replacement by the Fleet Manager. Significant revenue adjustments include addition of the State Auto Fraud, Worker’s Compensation, Office of Emergency Services KE, and Alcohol and Beverage Control grants, as well as increases in the 2011 realignment revenues ($802,156).
The District Attorney’s 2018-19 Requested Budget had an initial budget gap of $1.6 million partially due to department not budgeting $657,455 in Federal Justice Assistance Grant (JAG) revenues, which is a primary funding source for the Neighborhood Court program. The solicitation for this grant application has not yet been made available for 2018-19, which has raised concern that this funding may be discontinued, possibly as a result of litigation between the State of California and the federal government. The Recommended Budget was balanced in part by adding back in the JAG funding until further information is known about the grant availability. If the JAG funding does not materialize, other balancing options will need to be identified at Adopted Budget, including potential reductions to the Neighborhood Court program.
The other balancing options include deferring three new General Fund position requests to Adopted budget ($261,827), deferring a request to convert four limited-term positions to regular ($270,093), prorating merit increases ($140,476), unfunding an Assistant Chief Investigator position for six months ($102,702), unfunding a vacant Legal Secretary position ($78,575), filling a Deputy District Attorney III position at a lower step ($21,339), and deferring two general fund vehicle replacements ($66,000) to the Adopted Budget.
Probation: The 2018-19 requested budget for Probation reflected a deficit of $760,922. The Recommended Budget was balanced partially by unfunding a portion of Supervising Probation Officer position and holding two Deputy Probation Officer and one Senior Deputy Probation Officer positions vacant for 3-4 months in the CCP program ($168,359). Other adjustments to balance the budget include removing a duplicate system enhancement project cost ($145,562) that was already included in the IT system charges, and utilizing $410,340 in extra Youthful Offender Block Grant (YOBG) and SB678 fund balances. The total fund balance budgeted for YOBG, SB678, and Juvenile Justice in Probation equates to $642,090.
The significant changes for Probation by program area are as follows:
Administration: Probation’s budget includes a new methodology whereby all department-wide administrative costs have been consolidated into the Administration budget unit, and then allocated back out to individual programs. Significant adjustments include costs related to the Law Suite Case Management System enhancement project ($282,903).
Adult: Significant expenditure adjustments include general salary & benefits cost increases as well as cost allocations from the administrative unit ($545,859). These expenditure increases are partially offset by reductions in IT charges ($172,034) as IT charges are included in the cost allocations from administration. Significant revenue adjustments include a decrease in SB678 performance based funding ($182,925) due to an increase in Yolo County adult revocations, increases in the Community Corrections Partnership (CCP) realignment revenues ($142,108) and adult probation fees ($140,000).
Youth Programs and Juvenile Detention: The significant expenditures adjustments include $181,175 in extra help due to change in staffing ratios for the Juvenile Detention Facility from 1:8 to 1:4 for the ORR population and 1:6 for the county population. The Federal ORR program remains status quo in the Recommended Budget. Any changes in the ORR program that result from ongoing discussions with the Federal Government will be reflected in the Adopted Budget. Other notable adjustments include a $455,420 reduction in revenue due to expiration of the Mentally Ill Offender Crime Reduction (MIOCR) grant. However, $161,000 in MIOCR program costs are budgeted to continue the program through September 2018, including 25% of a Deputy Probation Officer and mental health services for the four youths currently in the program. In addition, the budget includes a $254,716 reduction in Youthful Offender Block Grant (YOBG) realignment revenues, as the number of youth between the ages of 10 and 17 as well as felony dispositions in Yolo County have declined.
Public Defender: The Public Defender’s Requested Budget had a deficit of $273,582. The Recommended budget does not include any new positions but it does include funding for an Assistant Chief Deputy Public Defender that was added in March 2018. Significant expenditure increases are primarily due to personnel costs including rising pension costs and merit increases. The cost of expert witnesses and the increasing cost of internal technology also contributed to the department’s initial deficit.
The 2018-19 Recommended Budget was partially balanced by a number of actions. The Public Defender had requested a replacement vehicle that has been deferred to the Adopted Budget. Retirement buyout and excess fleet expenses have been eliminated, and the use of revocation fund balance will partially fund the salary of an attorney.
In April, the Public Defender was awarded a $45,000 UC Presidential Post-Bar Public Service Fellowship. This Fellowship will fund a Law Clerk for a few months and then the remaining portion of the fellowship will help offset some of the cost of a Deputy Public Defender I. The position will focus primarily on immigration cases.
A large expenditure for the Public Defender is discovery costs. In FY2016-17, expenditures were over $97,000. For FY2017-18, yearend projections are exceeding $103,000. In a joint effort with the District Attorney, discussions have begun in FY2017-18 regarding more efficient and cost reducing efforts of electronic discovery. During FY2018-19, research will continue on the feasibility of eDiscovery between the two departments. For the FY2019-20 budget, the Public Defender is hoping to reduce this cost.
As requested by the Board, staff will complete a more comprehensive analysis of Public Defender staffing levels for the Adopted Budget hearings in September.
Sheriff: The 2018-19 Requested Budget from the Sheriff’s Office reflected a deficit of approximately $1.5 million. No new positions were requested; however, increasing OPEB and retirement costs ($823,000 increase over the prior year) and worker’s compensation and general liability insurances ($351,000) continue to impact the department’s budget. The requested budget included $1.3 million in capital assets, including 16 replacement vehicles.
The 2018-19 Recommended Budget for the Sheriff’s Office was balanced through a variety of measures, including deferral of nine vehicle replacements and various supplies and equipment, such as cameras, radios and other law enforcement supplies, to the Adopted Budget. In addition, due to the historical trend of vacancies in the Detention division, $300,000 in assumed vacancy savings was utilized to help balance the budget.
In 2016-17 the State amended the funding formula for Supplemental Trial Court Security, revising the State’s contribution to just $100,000 per position. In the prior year, fund balance was used to fund two Deputy Sheriffs but Court Security is unable to continue to fund the two deputies. To reduce the deficit in the Court Security division, two vacant positions will be unfunded and two other positions will transfer into the Patrol division.
The Small and Rural fund continues to build a sizeable fund balance, estimated to end FY2017-18 at $1.4 million. Based on discussions with the Sheriff’s office, it is expected that this special fund will be used to fund the replacement of the Tiburon case management system. Current estimates for the first phase of software replacement is expected to cost approximately $650,000.
In the Adopted Budget, the Sheriff’s office will be requesting two new positions, a Deputy Coroner and a Correctional Officer Sergeant. The Deputy Coroner is needed to handle the increase in deaths, as a result of increased population. It will also provide an additional position to spread the on call hours, reduce overtime and reduce the work load for vacation, sick leave and training absences. The Correctional Officer Sergeant will provide additional supervision over the compliance of policies and procedures, general orders and Title 15. They would also oversee training, classifications, search team, scheduling and provide coverage for the booking sergeant. Additional duties would include administration of the phone system and archival and retention of jail video and logs.
Community Corrections Partnership (CCP): The 2018-19 CCP budget was approved by the CCP Executive Committee on February 26, 2018. In February 2017, the Department of Financial Services presented a 5-year financial projection to the CCP which reflected a structural deficit, with the potential for negative fund balances beginning in fiscal year 2017-18. In response, the CCP approved a 2017-18 budget that implemented funding reductions for all County CCP departments, and eliminated funding for local police departments. The approved 2018-19 CCP budget maintains these prior reductions, with only minor increases for salary & benefit growth. The table below reflects the approved CCP budget for 2018-19.
2018-19 Community Corrections Partnership Budget
| Category |
2017-18 Adopted |
2018-19 Recommended |
Change |
| Beginning Fund Balance* |
$1,081,865 |
$629,083 |
|
| |
|
|
|
| Base Allocation |
$7,372,736 |
$8,004,397 |
$631,660 |
| Growth Allocation |
$241,833 |
$683,488 |
$441,655 |
| Innovation Fund |
($24,183) |
($68,349) |
($44,166) |
| Total Revenues |
$7,590,386 |
$8,619,536 |
$1,029,150 |
| |
|
|
|
| Total Resources |
$8,672,250 |
$9,248,619 |
|
| |
|
|
|
| District Attorney |
$477,371 |
$496,466 |
$19,095 |
| Library |
$12,942 |
$13,460 |
$518 |
| Probation |
$4,713,055 |
$4,890,713 |
$177,658 |
| Public Defender |
$144,167 |
$149,934 |
$5,767 |
| Sheriff |
$3,058,143 |
$3,180,469 |
$122,326 |
| Countywide |
$0 |
$149,830 |
$149,830 |
| Total Funding Allocation |
$8,405,678 |
$8,880,871 |
$475,193 |
| |
|
|
|
| Ending Fund Balance |
$461,449 |
$367,749 |
|
* The estimated 2018-19 beginning fund balance is higher than the 2017-18
ending fund balance due to receipt of higher growth payments in 2017-18.
The 2018-19 CCP budget also includes funding for a new Public Safety Analyst position that was added in 2017-18 to review the CCP’s organizational priorities, evaluate evidence-based practices, and assist in development of the next five-year CCP strategic plan. In addition, the 2018-19 CCP budget includes funding for development of a court data portal and operation & maintenance costs related to the transitional housing funded with Intergovernmental Transfer (IGT) funds.
Capital Improvement Program
The 2018-19 Recommended Budget includes a Capital Improvement Program (CIP) budget of $67.2 million. This budget includes funding for six major projects, four of which are being partially financed from the CIP bond issued in July 2017. The table below provides a summary of the 2018-19 CIP budget.
2018-19 Recommended CIP Budget
| Project |
Total Project Cost |
Estimated Expenditures as of 6/30/18 |
2018-19 Recommended Budget |
Future Years |
| Courthouse Re-occupancy |
$5,000,000* |
$800,000 |
$4,200,000 |
$TBD |
| Library Archives Remodel |
$1,999,125 |
$387,960 |
$1,611,165 |
$0 |
| Monroe Jail Expansion |
$43,981,907** |
$4,721,324 |
$20,989,675 |
$16,870,908 |
| Leinberger Expansion |
$36,000,000 |
$1,863,608 |
$34,136,392 |
$0 |
| 600 A Davis Remodel |
$1,327,750 |
$952,750 |
$375,000 |
$0 |
| Esparto Park & Pool |
$7,414,505 |
$1,507,905 |
$5,906,600 |
$0 |
| Total |
$95,723,287 |
$10,233,547 |
$67,218,832 |
$16,870,908 |
* Reflects original anticipated cost as included in the CIP bond issuance.
** Includes $1.4 million in in-kind costs.
While it was initially anticipated that the cost of the Historic Courthouse Re-occupancy project would be around $5 million, revised estimates based on condition assessments performed by architect Lionakis place the cost considerably higher. Staff is continuing to refine the estimates, and will return to the Board at a later time for formal project approval, including identification of additional funding sources if needed.
In addition to the projects reflected above, preliminary work continues on a number of other projects, including the Yolo Library, 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
External Funding Requests
Funding requests from external community-based organizations total $401,064 for 2018-19. A summary of the funding requests, as well as data on the allocations that have been approved in prior years, is provided as Attachment G, while copies of the individual funding requests are included as Attachment H. As previously discussed with the Board, de-allocations from the Ceres Endowment Fund have been lower than expected over the past few years, which has resulted in reduced funding available to the Pomona fund.
At the April 10 Board Governance session, a new approach to funding external organizations was discussed that involved establishing an annual Health & Human Services contingency for allocation by the Board throughout the year. Staff is working to develop policies and procedures for this new approach, with the aim of implementing it in 2019-20.
A key element of this new approach is making a shift to fund those organizations that currently receive ongoing support, and that are consistent with County values and priorities, through a department or countywide operating budget. To accomplish this, staff recommends shifting these ongoing requests to department budgets and where that shift causes a funding gap, using available Pomona funds to augment department 2018-19 Recommended Budgets as follows:
2018-19 External Fund Support
| Organization |
Funding
Request |
Recommended Allocation |
Department |
| Ongoing Funding Support |
| Crisis Nursery |
$100,000 |
$100,000 |
Health & Human Services |
| Food Bank |
$85,000 |
$85,000 |
Health & Human Services |
| YoloArts |
$50,000 |
$50,000 |
Countywide |
| YCCA |
$141,064 |
$100,000 |
Health & Human Services |
| One-Time Funding Support |
| Suicide Prevention |
$25,000 |
$25,000 |
Pomona |
| Total |
$401,064 |
$360,000 |
|
Going forward, organizations receiving this ongoing support would contract with departments directly and be incorporated as part of the departments’ annual budget request.
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. County staff continues to work with Dignity to secure an expanded facility that would allow sufficient participation for the ADHC to maintain a balanced budget. However, since that effort is still underway, a second amendment to the contract was approved at the June 5 Board meeting in order to extend operations of the ADHC for an additional year, and to equally share documented program losses up to an amount payable by the County not to exceed $75,000. Additional funding for this purpose will be addressed in the Adopted Budget.
Infor Project: The 2018-19 Recommended Budget includes approximately $767,000 for continued implementation of the Infor System. Of this amount, $267,000 is funded by existing loan proceeds from the project financing, primarily related to the Workforce Management and Budget modules. The remaining amount is budgeted to support ongoing and additional project work, including continued improvement of the Finance/Procurement and HR modules, and implementation of the Talent Management and Contracts Management modules. To-date, project costs have totaled approximately $5.5 million, as compared to GFOA's original project cost estimate of $8 million.
Infor Project Cost Summary
| Vendor |
Total Contract
To 6/6/18 |
Total Paid
To 6/6/18 |
Original GFOA Estimate |
| Infor |
5,228,606 |
5,025,314 |
|
| Kinsey |
1,273,780 |
480,357 |
|
| Total |
6,502,386 |
5,505,671 |
8,000,000 |
Pension Funding: The 2018-19 Recommended Budget includes $31.6 million in employer pension contributions, an increase of $3.7 million from the 2017-18 Adopted Budget. Employer contributions for 2018-19 were determined in the CalPERS Annual Valuation Report as of June 30, 2016. 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 |
| 2017-18 |
23.10% |
34.00% |
| 2018-19 |
25.30% |
36.00% |
| 2019-20 |
28.00% |
39.40% |
| 2020-21 |
30.40% |
43.10% |
| 2021-22 |
32.40% |
45.30% |
| 2022-23 |
33.90% |
47.20% |
In addition, a recent decision by the PERS Board of Administration to reduce the amortization period 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 establishes the creation of 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 as part of a four-year ramp up plan. The 2018-19 Recommended Budget includes a 1% payroll charge, or approximately $1.2 million, for purposes of funding the Pension Trust.
Other Post-Employment Benefits (OPEB): The 2017-18 Recommended Budget includes $9.3 million in OPEB charges to departments, an increase of $415,000 from the 2017-18 Adopted Budget. The OPEB rate remains unchanged at 8% of payroll. 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 2018-19 Recommended Budget reflects the fourth year of this pre-funding plan. It is estimated that the OPEB trust will have a balance of approximately $9.7 million at the end of 2017-18, and increase to $13.7 million based on estimated contributions in 2018-19.
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 OPEB liability declined by $67 million in the June 30, 2016 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, 2012 |
$138,080,000 |
| June 30, 2014 |
$153,091,000 |
| June 30, 2016 |
$82,126,000 |
As a result of the significant reduction in the unfunded liability, the current OPEB rate of 8% is very close to the actuarial required contribution (ARC). Once the next OPEB valuation is completed in the fall of 2018, staff will evaluate the possibility of beginning to pay the full Actuarially Determined Contribution (ADC) in the 2019-20 budget, well in advance of the 15 years originally contemplated in the pre-funding plan.
Contingency,
Reserves and Trusts: In accordance with the Board Policies on Fund Balances and Reserves, OPEB Funding and Pension Funding, the 2018-19 Recommended Budget includes the following reserves and trust balances:
2018-19 Reserves
| General Reserve |
$11,492,240 |
| Reserve for claims against the county |
$340,000 |
| CIP Reserve |
$3,500,000 |
| Road Maintenance Reserve |
$300,000 |
| Audit Disallowance Reserve |
$2,000,000 |
| OPEB Trust* |
$13,738,185 |
| Pension Trust* |
$2,362,969 |
* Includes the estimated contributions for 2018-19. Note that these trusts are held outside of county treasury.
The Board Policy on Fund Balance and Reserves requires that the General Reserve shall be maintained between 5% and 15% of average General Fund expenditures. The General Reserve balance reflected above includes an additional 2018-19 contribution of $575,133, which is needed to maintain the current 5.5% 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. In addition, the reserve for claims against the County will be evaluated and potentially augmented at Adopted Budget based on projected risks. A summary of reserve contributions and balances is provided as Attachment I.
The 2018-19 Recommended Budget also provides appropriations for the following contingencies:
General Fund Contingency....................................... $2,500,000
HHSA/IHSS MOE Contingency………………………... $1,500,000
CSA Contingency........................................................ $100,000
The General Fund Contingency represents 3.0% of general purpose revenue allocations, and is crucial in safeguarding against known risks and uncertainties that are identified for the 2018-19 Recommended Budget, including:
- Continued Pension Cost Escalation
- State Delta and Flood Protection Planning
- Cannabis Regulatory Program costs
- Child Welfare Services caseload
- County Service Area infrastructure
The HHSA contingency of $1.5 million represents 1.0% of HHSA operating fund expenditures. However, in addition to this amount, there is $1.5 million in assigned fund balance that has been set aside as mitigation for potential HHSA risks, for a total contingency of $3 million, or 2.0% of operating expenditures.
It is anticipated that additional contingency funds will be included with the Adopted Budget.
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. Many are mentioned in the details above and a summary of those items follows:
| Strategic Plan Funding |
$TBD |
| Cannabis Tax Revenues |
$TBD |
| Public Safety Contingency |
$500,000 |
| Safety & Security Contingency |
$100,000 |
| IT Innovation Contingency |
$100,000 |
| Increase in General Reserve % |
$1,044,749 |
| Increase in Reserve for Claims Against the County |
$TBD |
| Road Maintenance Reserve |
$TBD |
| CIP Reserve |
$TBD |
| Adult Day Health Care Funding |
$75,000 |
| Public Works Yard Gate Replacement |
$50,000 |
| District Attorney Staffing |
$528,000 |
| District Attorney Replacement Vehicles (2) |
$66,000 |
| Financial Services Staffing |
$97,000 |
| Financial Services Extra Help |
$41,000 |
| Financial Services Software Purchases |
$55,000 |
| General Services New Vehicle |
$35,000 |
| General Services Staffing |
$18,000 |
| General Services - Parks Assets |
$74,000 |
| General Services - Sheriff Campus IT Equipment |
$109,000 |
| HHSA Staffing |
$71,000 |
| Public Defender Replacement Vehicle |
$27,000 |
| Public Defender Service and Supplies |
$8,000 |
| Public Defender Staffing |
$TBD |
| Sheriff Equipment |
$74,000 |
| Sheriff Service and Supplies |
$175,000 |
| Sheriff Replacement Vehicles (9) |
$495,000 |