State law requires the budget to be balanced at fiscal year-end and all cost overruns addressed. The Chief Financial Officer completes this process through numerous year end appropriation adjustments, recognition of additional revenue sources, and utilization of fund balances. As provided in state law, some of these appropriation adjustments must be approved by the Board of Supervisors. As year-end closing for the 2017-18 fiscal year is still in process, the Department of Financial Services plans to return to the Board in October with these year-end appropriation adjustments and analysis of significant year-end variances for all departments.
As required by state law, the Board must adopt a final budget by October 2 of each year. The attached resolution and exhibits are based on the 2018-19 Recommended Budget as approved by the Board of Supervisors on June 12, and as revised by the recommendations included in this memo. These recommendations have been reviewed with the Chair and Vice Chair in accordance with the Board’s Governance Manual.
A - Preliminary Fund Balance Report
The Fund Balance Report (Attachment A) is a general accounting of the fund balances for all funds as of June 30, 2018. Fund balance used or not available indicates amounts that are either appropriated for use in 2018-19 or are not available for current spending (i.e. prepaid expenses and inventories). The available fund balances are those remaining amounts that have not been appropriated for use in 2018-19 and are available to be used in the manner outlined in statute. The Level of Restriction column identifies how much flexibility the Board has in directing the use of those available funds. It should be noted that the fund balances in this report are preliminary and therefore subject to change.
B – 2018-19 Adopted Budget
State law requires that the County adopt the annual budget no later than October 2. On June 12 the Board approved the 2018-19 Recommended Budget, which provided appropriation authority until the Adopted Budget is approved. The proposed 2018-19 Adopted Budget incorporates changes to the Recommended Budget based on revised revenue projections, available fund balances, additional department requests and Board priorities.
As described in the next section, healthy year-end fund balances in the General Fund have allowed nearly all one-time department requests to be funded. In addition, modest increases in general purpose revenues have allowed for addition of some new positions. However, the County’s ongoing revenue streams are not sufficient to fund all department position requests. As a result, staff recommends that new positions only be added where the most critical needs exist.
In total, the proposed Adopted Budget includes a net increase of 23 new positions, including three General Fund positions, of which one is recommended for limited term. When combined with the four positions reduced in the Recommended Budget, this reflects a total net reduction of one General Fund position in 2018-19. An additional 17 positions are funded with state and federal revenues, including 9 positions funded with increased Office of Refugee Resettlement (ORR) revenue pursuant to the revised contract with the federal government. The table below provides a summary of the new positions recommended in the Adopted Budget.
Recommended New Positions
| Dept |
Position |
FTE |
Funding |
Program |
| CC |
Deputy County Counsel II |
1.0 |
HHSA |
Juvenile Dependency |
| DFS |
Auditor II (LT) |
1.0 |
GF |
Limited Term |
| GSD |
GIS Analyst II |
1.0 |
GF/Dept |
ACE GIS support |
| GSD |
Systems Software Spec. II |
1.0 |
GF |
ACE systems support |
| GSD |
Programmer Analyst |
2.0 |
State/Fed |
HHSA Systems Support |
| GSD |
Systems Software Spec. II (LT) |
1.0 |
IT Charges |
ERP/Infor Support |
| PROB |
Detention Officer |
7.0 |
ORR |
ORR Detention |
| PROB |
Clinician |
1.0 |
ORR |
ORR Detention |
| PROB |
Sr. Social Worker |
1.0 |
ORR |
ORR Detention |
| PROB |
Detention Officer |
1.0 |
Department |
Work Program |
| PROB |
Probation Aide |
1.0 |
Department |
Adult Probation |
| PROB |
Sr. Acct. Technician |
1.0 |
Department |
Administration |
| PROB |
Asst. Superintendent |
(1.0) |
Department |
Juvenile Detention |
| HHSA |
Social Worker Practitioner |
2.0 |
State/Fed |
Child Welfare Services |
| HHSA |
Social Services Assistant |
1.0 |
State/Fed |
Child Welfare Services |
| HHSA |
Child Welfare Worker I |
1.0 |
State/Fed |
Child Welfare Services |
| HHSA |
Administrative Services Analyst |
1.0 |
State/Fed |
Child Welfare Services |
| |
Total New Positions |
23.0 |
|
|
While the Adopted Budget provides for modest increases in General Fund spending, it also continues to invest in the long-term sustainability of County operations by increasing funding for reserves and contingencies, and providing additional funding for capital improvements. Importantly, the budget continues to fund the OPEB trust and begins to allocate supplemental funding to the Pension trust as provided in the County Pension Funding Policy.
While current economic conditions remain healthy, fiscal headwinds are on the horizon. PERS rates are expected to continue increasing significantly in coming years, and preliminary estimates indicate that the incremental cost from 2019-20 rate increases will be nearly $4 million, equivalent to a 3.5% cost of living adjustment for comparative purposes. In addition, impacts from the In-Home Supportive Services cost shift enacted by the State in 2017-18 will become more prominent over the next several years as the County’s MOE grows and State general fund support begins to wane. Finally, the current economic expansion has now lasted for more than nine years, making it the second longest on record. While there is little indication of an immediate downturn, an economic recession is inevitable. The County must remain diligent in preparing for these upcoming fiscal challenges.
With this backdrop in mind, the recommended 2018-19 Adopted Budget strikes a balance between funding current needs and preparing for future realities. The sections below describe the additional appropriations and changes in reserves that are recommended in the 2018-19 Adopted Budget.
General Fund
The General Fund ended 2017-18 with a preliminary estimated available fund balance of approximately $15.8 million, which includes $4.9 million that was used as a funding source in the 2018-19 Recommended Budget. The preliminary estimated fund balance also includes $2.9 million in one-time state mandate (SB90) repayments related to mental health expenditures dating back to 2006-07. As discussed further below, it is recommended that this repayment be used to balance the long-standing deficit in the Mental Health Fund. After adjusting for this transfer, the remaining fund balance available for appropriation is $8.1 million.
In addition, the projected 2018-19 general purpose revenues have been revised to reflect an increase of approximately $1.1 million, due primarily to higher growth in property assessments and justice/court collections than was previously assumed. Combined, these sources result in an additional $9.1 million that is available for appropriation in the 2018-19 Adopted Budget.
The table below provides a summary of the recommended additional General Fund funding sources and uses. Attachment C provides a detailed listing of the recommended funding uses totaling $9,138,839, as well as department requests that are not recommended for funding totaling $902,638.
2018-19 Adopted Budget General Fund Summary
| Funding Sources |
2018-19 Recommended |
2018-19
Adopted |
Additional Funding |
| Fund Balance |
4,858,441 |
12,916,222 |
8,041,575 |
| General Purpose |
77,471,673 |
78,571,670 |
1,097,264 |
| Total |
82,330,114 |
91,487,892 |
9,138,839 |
| |
|
|
|
| Funding Uses |
|
|
Additional
Uses |
| Ongoing |
|
|
1,097,264 |
| One-Time |
|
|
8,041,575 |
| Total |
|
|
9,138,839 |
The following sections provide a narrative description for each of the additional General Fund recommendations included in the 2018-19 Adopted Budget.
Mental Health Fund Deficit
For more than 10 years the County’s Mental Health fund has been operating with a deficit. This deficit has largely been masked by the availability of Mental Health Services Act (MHSA) and realignment funds, which have offset the deficit in the County’s financial statements. However, MHSA funds are restricted for specific purposes, and cannot be used to balance the Mental Health fund, so other solutions must be identified. Staff has endeavored to identify an appropriate solution for several years, but have been unsuccessful largely due to the recognition that a substantial General Fund contribution would be required.
As noted above, the preliminary fund balance estimates include approximately $2.9 million in one-time state repayments for County costs related to mandated mental health services in prior years. These services for seriously emotionally disturbed children were previously provided by counties, but were subsequently shifted to schools pursuant to the federal program requirements. While this repayment is not legally restricted for any purpose, staff recommends that it be allocated to the Mental Health fund as part of a package to balance the long-standing deficit.
Capital Improvements
Staff recommends allocating $2.6 million in one-time funding for current and future capital improvement needs. While exact amounts are not yet known, a significant portion of this funding will likely be needed to support the Historic Courthouse Reoccupancy project, which has a current estimated cost of approximately $13 million. The construction contract for this project is currently being rebid, and once a winning bidder has been selected staff will return to the Board with a recommended funding plan.
Aside from the Courthouse project, additional funding may be needed to support the Esparto Park & Aquatic Center project. The budget of $7.4 million for this project was approved by the Board in January 2018. Due to insufficient funding, the request for additional funding at that time was limited to a 5% construction contingency in the amount of $314,405. Ideally, the project would have included a 10% project contingency in the amount of $741,451. Construction is currently 50% complete and 93% or $290,785 of the construction contingency has been allocated. Once more precise funding needs are known, and if needed, staff will return to the Board to request an increase in the project budget.
Beyond these projects, the County has a variety of upcoming capital needs that are in various stages of development, including the Yolo Library, acquisition of the HHSA Gonzales building and 500 Jefferson properties, new animal shelter, and new or expanded Adult Day Health Center facility. Staff recommends that any funding not needed for current projects be set aside for these upcoming needs.
Election System Replacement
It is recommended that $450,000 be appropriated for the replacement of the County’s election system. The Governor’s FY 2018-19 Budget includes funding for counties to upgrade existing election systems, requiring that counties match state funding on a dollar for dollar basis. The total estimated cost to replace the election system is $1.4 million, with the County’s share of the cost at approximately $700,000. In FY 2017-18, $250,000 was set aside in a reserve for this purpose; the recommended additional funding would increase the total FY 2018-19 appropriation to $700,000 to meet the states requirement for matching funds.
Rural Community Investment Program
The Rural Community Investment program is a mechanism for advancing unaddressed programs, policies and initiatives in rural unincorporated areas. Over the course of 2016-17, staff from the County Administrator’s Office and Yolo County Housing gathered information on the interests of the rural communities in an effort to target potential County and grant funding resources. Information was gathered through conducting town meetings in some of the rural areas. Staff also reviewed the needs identified in the action plans of Capay Valley, Clarksburg and Knights Landing, and in the Yolo County Agricultural Labor Study.
Investments recommended for 2018-19 were driven by prior outreach efforts and internally identified funding needs. In future fiscal years, staff will likely propose changes to the Rural Initiatives program to better align with potential collaborative projects and funding opportunities afforded through “compact credits” identified in the Yocha Dehe Wintun Nation’s state compact.
Staff recommends allocating $373,330 from the General Fund for 2018-19 Rural Community Investment projects outlined in the table below.
| Rural Community Investment Proposal |
General Fund |
| West Plainfield Fire Protection District Vehicle |
$88,000 |
| Ag Labor Training and Certification Program |
$50,000 |
| Knights Landing Neighborhood Park Design |
$60,000 |
| Payment of Madison CSD Outstanding CDBG Loans |
$32,810 |
| Funding Gap for Westucky Water/Sewer System Connection |
$80,000 |
| Library – 40 Additional Hotspots |
$47,520 |
| Clarksburg Security Cameras |
$15,000 |
| Total: |
$373,330 |
In addition, the Board appropriated $150,000 in 2017-18 for a drainage project in Knights Landing to address localized flooding. Due to unanticipated costs, the project went over budget by $52,986. Other 2017-18 Community Service Rural Initiative projects came in under budget by a collective $59,783. The Department requests that the remaining funds be used to cover the Knights Landing drainage project cost overage. Attachment G provides a description of the recommended Rural Community Investment Fund projects.
Adult Day Health Center
In May 2016 the Board approved an amendment to the contract with Dignity Health to continue their operation of the Yolo County Adult Day Health Center (ADHC) for an additional year ending June 30, 2017, with the option to extend for one additional year. The amended contract also provided that the County would share in the cost of operating losses for the ADHC up to a maximum of $150,000 per year. In May 2017 the one-year extension was executed, thereby extending the terms and conditions of the contract through June 30, 2018. Based on a review of financial operations over this one-year extension, staff has determined that the County will once again need to subsidize operating losses up to the contract maximum. As a result, funding in the amount of $150,000 is included in the proposed Adopted Budget to satisfy the terms of this agreement for the additional one-year period.
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 with Dignity Health was approved in June 2018, which extended the contract for one fiscal year ending June 30, 2019, with a share of operating losses up to a maximum of $75,000 per year. As a result, additional funding may be required for this purpose in future years.
Agriculture
The proposed Adopted Budget for Agriculture includes $25,000 for a new extra help intern position to support produce export and pest exclusion services. These intern services will be in collaboration with UC Davis and allow students pursuing education in the agriculture industry to provide support to local programs and gain experience.
Additionally, the budget includes $49,000 for extra help which is offset by a $49,000 reduction in the CASS contract. Other significant changes in the Agriculture budget include $54,919 in net salary and benefit cost increases due to equity adjustments, which are being funded by increases in the Agriculture fees. The proposed fee changes will be included in the next master fee update to the Board.
Assessor/Clerk-Recorder/Elections
The proposed Adopted Budget for Assessor/Clerk-Recorder/Elections (ACE) includes a new Systems Software Specialist position to assist with the implementation of multiple department computer system replacements, at an annual cost of $164,000. The budget also includes a GIS Analyst II position for Elections and Assessor GIS mapping, at an annual cost of $113,000. This position will be funded with increased department revenues and the use of restricted fund balance. In FY 2019-20, the department will reallocate existing budgeted funds that were allocated for GIS services in 2016-17 to fund the majority of this; however, it is estimated that $34,000 in ongoing General Fund support will be needed in future years. Both positions will be dedicated to ACE although the positions will reside in General Services (IT Division).
Additionally, the budget includes funding for senior staff salary adjustments and IT department systems costs, which are offset by increased department revenues. The department also requested an Assessor Clerk-Recorder Supervisor position, however this funding request is not recommended at this time.
Community Services
The proposed Adopted Budget for Building and Planning includes funding for the Code Enforcement Officer position that was approved in the FY 2018-19 Recommended Budget. Staff also recommends additional one-time funding for a new vehicle ($24,000) and $36,000 for legal services and supplies for code enforcement activities.
County Counsel
Is it recommended that $35,000 in one-time funding be allocated to County Counsel to support anticipated extra compensation for conflict panel attorneys resulting from two murder cases that are currently in the discovery phase. In addition, it is recommended that $12,500 be allocated to support mediation between the City of Davis and UC Davis regarding the University’s Long-Range Development Plan.
The proposed Adopted Budget also includes $191,000 for a new Deputy County Counsel position to support juvenile dependency. This new position is in addition to a new dependency attorney position included in the Recommended Budget. If approved, the County Counsel’s office will have four attorneys (one part-time) devoted to advising the Health & Human Services Agency (HHSA) on child welfare matters and representing the agency in court. The increase in staffing corresponds to the increase in caseloads, which have doubled in the past two years, and related increases in social worker staffing. The court has also doubled the number of attorneys appointed by the court to represent parents and minors over the past 12-18 months, raising its total full-time attorney appointments from three to six. The new position will be fully funded by HHSA.
District Attorney (DA)
The proposed Adopted Budget includes $66,000 in one-time funding for replacement of two hybrid sedans, and $241,242 in additional General Fund support to fund three existing limited term Paralegal positions in the Neighborhood Court (NHC) program.
As discussed in the Recommended Budget, funding from the Justice Assistance Grant (JAG) is not currently available due to ongoing litigation between the State and Federal governments. This grant has been a primary funding source for the expansion of the NHC since 2015. The Recommended Budget was balanced by removing the requested new positions for NHC, including the existing limited term Paralegals, and adding back in the JAG funding until further information was known on the funding status.
A ruling from the 9th U.S. Circuit Court of Appeals in August 2018 concluded that the President does not have authority to withhold federal funding from local jurisdictions without congressional authorization. While this ruling appears to be in the County’s favor, it remains unclear when or if the solicitation for JAG funding will become available. As a result, the DA’s requested budget once again reflected a substantial deficit.
Staff’s recommendation for the Adopted Budget is to utilize vacancy savings to balance the deficit in the Criminal Prosecution unit, and direct approximately $241,000 in General Fund support to the Neighborhood Court program to fund the existing Paralegal positions, which would remain limited term. The intent of this recommendation is to preserve the NHC until the JAG or other grant funding becomes available, at which point grant funding would replace the additional General Fund in supporting these positions. The DA’s Office also requested three new positions for NHC, which are not recommended for funding.
As an alternative to staff’s recommendation, the Board could choose to not fund the limited term Paralegal positions, or eliminate General Fund support for the NHC altogether. This option would result in greater savings for the General Fund, but may result in the elimination of the Neighborhood Court program. Should no additional grant funding materialize, this option would need to be carefully considered in the future.
Financial Services
The proposed Adopted Budget for the Department of Financial Services includes a new limited-term Auditor II position, at an annual cost of $118,000, to address increasing workload and to help special districts fulfill audit requirements.
The budget also includes an increase of $30,000 in salary and benefits costs for leave payouts and three months of position overlap for an anticipated staff retirement in the Tax Collector division. Additionally, staff recommends $15,000 for a new cash counter for the Treasury to improve the processing of cannabis fee and tax payments; this item is being funded through cannabis fee revenue and the cannabis tax initiative.
The Department of Financial Services also requested funding for equity adjustments for General Unit staff and $41,000 for extra help for Procurement. These funding requests are not recommended at this time.
General Services
The proposed Adopted Budget for the Facilities division includes $35,000 for the purchase of a new vehicle for a Building Craftsmechanic that was added in FY17-18, $86,000 for the purchase of a building modular at the end of its lease to provide space for facility transitions, and a new Supervising Building Craftsmechanic at an annual cost of $123,500. The Supervising Building Craftsmechanic is part of the division’s restructure that will have 11 Facilities staff reporting to this position instead of directly to the Facilities Superintendent. The Adopted Budget also includes $76,000 to backfill the department for revenue that was included in the Recommended Budget, but that is not anticipated to be received. Also included, is an additional $39,000 for maintenance work in the Admin building, Probation department and the county cardlock server.
Facilities had also requested funding for a Construction Manager position, with a potential annual cost of $189,000. Staff does not recommend funding this position at this time, as further evaluation of this position’s responsibilities and potential funding sources is needed. Staff may return to the Board at a later point with a recommendation to add this position once these issues have been resolved.
The proposed Adopted Budget for the IT division includes funding for Sheriff campus connectivity equipment that was originally deferred from the Recommended budget. Countywide connectivity equipment is replaced on a rotating schedule, and the Sheriff campus is due to have switches, blades, uninterrupted power supply, and wireless access points replaced during the 2018-19 at a cost of $109,200. Instead of including these costs specific to the Sheriff campus in the countywide IT charges, it is recommended that the General Fund fund this purchase so that other department budgets are not unduly burdened by increased IT charges.
The Adopted Budget also includes two Systems Software Specialists II and a GIS Analyst. One of the Systems Software Specialists will be a limited term position for the IT division to support the Infor system. This position will be funded with one-time General Fund in FY18-19, for a prorated amount of $93,000, and then be included in the countywide IT charges in FY19-20 for an annual cost of $164,000. The second Systems Software Specialists will be dedicated to the Assessor, Clerk-Recorder, Elections (ACE) department to support upcoming system replacements. This position will be charged directly to ACE at an annual cost of $164,000. The GIS Analyst will also be a position dedicated to ACE at an annual cost of $113,000.
The IT division also requested funding for a Systems Software Specialists to support Human Resources in the implementation of remaining Infor modules, particularly the Talent Management module. In lieu of this request, staff recommends that $120,000 in one-time funding be allocated for contractual support for the HR systems. The division also requested $113,000 for equity adjustments from new bargaining unit agreements and $11,000 for miscellaneous service and supply invoices. Staff does not recommend funding for these requests, as these cost can be addressed through the equity adjustment contingency and/or through the countywide IT charges true up.
The proposed Adopted Budget for Parks includes $73,740 in one-time funding for various asset purchases, including the replacement of wooden picnic tables, a wood chipper and a standby generator. The division also requested full funding of a Supervising Parks Worker that was only partially funded in the Recommended Budget. Staff does not recommend this funding request at this time.
The proposed Adopted Budget for the Telecom division includes full funding for an Administrative Clerk I that was partially funded in the Recommended Budget. This position will be transitioning duties from the pending retirement of an Office Support Specialist, in the support of customer contact, centralizing General Services phone calls and office duties, and continue administrative support to the Director and management staff. The current year General Fund impact will be $14,000 with the remaining cost of $38,000 being funded by Telecom, IT charges and facilities projects.
Health & Human Services Agency
It is recommended that $135,000 be allocated to the Health & Human Services Agency (HHSA) to support the balance of the ongoing external funding requests that are unable to be funded by the Pomona fund. As part of the 2018-19 Recommended Budget, the Board approved shifting ongoing external funding requests to department budgets, and using the Pomona fund to augment department budgets if the shift caused a funding gap. In total, $285,000 in ongoing external funding requests was shifted to HHSA, including $100,000 for Crisis Nursery, $85,000 for Yolo Food Bank, and $100,000 for Yolo County Children’s Alliance VITA program. However, HHSA has indicated that no state or federal funds are available to fund these programs, and just $150,000 is available in the Pomona fund for this purpose. As a result, $135,000 in general fund support is needed to fund these external requests for 2018-19. Staff will continue to work with HHSA to identify potential alternative funding sources for these programs in future years. A summary of the 2018-19 external funding requests is provided in Attachment I.
The proposed Adopted Budget also includes $50,000 to support data collection and strategic aligning efforts with community partners as recommended by the Programs Benefitting Children Workgroup. This strategic planning initiative will provide for quarterly reporting, dashboarding of key data points within Yolo County and implementing strategic initiatives with partners for the betterment of Yolo County children’s mental, physical and emotional health.
Human Resources
It is recommended that $28,000 be allocated to Human Resources to backfill for revenue that is not anticipated to be received. Several years ago, Human Resources began budgeting revenue with the anticipation of charging special districts for payroll services. However, these charges have not been established, and thus the associated revenue should be removed from the budget.
Library
The proposed Adopted Budget for the Library includes additional general funds for salary and benefit adjustments for the museum curator and Librarian II positions, at an annual cost of $29,000, as part of the Gibson House Operational Plan. The budget also allocates $10,000 in supplies for the museum curator, including materials for the storage and preservation of the historical collection.
Public Defender
The proposed Adopted Budget for the Public Defender includes two replacement vehicles recommended by the Fleet manager for a total cost of $53,000 and the inclusion of $50,000 for IT department systems related expenses. The IT department systems charges are recommended by the IT department for their maintenance support of department specific software programs.
In May 2018, during the Public Defender’s annual department update, the Board had requested staff conduct a parity study between the Public Defender and the District Attorney offices. In response, the Public Defender has requested an Office Support Specialist to provide IT and eDiscovery support. At this time, staff is not recommending the position request, but will return at a later date with a recommended solution following a meeting with the criminal justice partners and IT later in September.
Sheriff
The proposed Adopted Budget includes an additional $418,300 in one-time funding for the Sheriff’s Office, including $390,300 for replacement of four patrol vehicles, two detective vehicles, one detention transport van and one coroner SUV. Dashboard cameras for patrol vehicles are also being requested for $28,000. These items were requested in the Recommended Budget, but were deferred for consideration in the Adopted Budget.
The proposed adopted budget also includes three new grants recently awarded to the Boat division of the Sheriff’s Office. The Department of Boating and Waterways awarded a grant for $145,664 to replace the oldest vessel, a 1998 23-foot Jetcraft patrol boat. The Department of Boating and Waterways also awarded a water safety hazard removal grant for $55,110 and an abandoned boat removal grant for $150,000. Both are for the removal, storage or disposal of abandoned, wrecked, or dismantled vessels and other partially submerged objects and debris that pose a substantial hazard to navigation.
Contingencies
The proposed Adopted Budget includes $1,885,000 in appropriation for various contingencies, as outlined below. Use of any contingency funds will require approval by a 4/5 vote of the Board of Supervisors.
Public Safety Contingency – The proposed Adopted Budget includes $500,000 as a contingency for Public Safety. The County’s Policy on Fund Balance and Reserves provides for annual appropriation for contingencies in specific funds as a first line of defense against uncertainty and to cover unanticipated needs of a non-recurring nature that may arise throughout the year. The recommended Public Safety contingency is approximately 0.7% of total Public Safety Fund expenditures.
IT Innovation Contingency – It is recommended that $500,000 be used to establish an IT Innovation Contingency for IT projects and solutions identified throughout the fiscal year that result in efficiencies or enhanced customer service. This amount is consistent with the IT Innovation Contingency that was approved in the 2017-18 Adopted Budget, which was used to fund projects such as purchasing a more efficient data backup and disaster recovery system and upgrades to the Public Defender record management system and Public Guardian software.
Safety & Security Contingency – In each of the past two years a Safety & Security Contingency of $100,000 was established to provide funding for initiatives that support and enhance the safety and security of County buildings, staff and the public. Projects funded include the purchase and installation of HHSA security cameras for Woodland and West Sacramento, perimeter fencing and key card access for the Law Library and Public Defender, electronic security gates for the Public Defender parking lot, and security gates for the Administration building. Staff recommends continuing to provide a contingency of $100,000 for this purpose.
Homeless Contingency – Staff recommends that $200,000 be set aside as a contingency for homeless initiatives. The County continues to work with each of the cities on homeless issues. As part of this collaboration, there has been a financial sharing of costs that has occurred in Davis, West Sacramento and Woodland. As homelessness continues to be an area of concern in all communities, staff anticipates a continued need to partner on both addressing the challenges and funding the opportunities to provide support and assistance to homeless individuals and families.
Road Contingency – It is recommended that an additional $250,000 be set aside in a Road Contingency as seed funding for project planning. The Board approved $100,000 in the 2018-19 Recommended Budget for this purpose, which would allow the County to develop a set of “shovel ready” projects in order to take advantage of unanticipated funding opportunities that arise from time to time.
Equity Adjustments Contingency – Staff recommends that $250,000 be set aside to address potential budgetary impacts associated with equity adjustments for General unit employees that went into effect at the beginning of the fiscal year. Pursuant to the MOU with the General Unit, the County was required to conduct a total compensation study to bring benchmarked classes to within 95% of market. Due to the timing of the study, these salary increases were not factored into department budgets. As a result, staff recommends that funding be set aside to address potential budget impacts throughout the fiscal year that may result due to these equity adjustments.
Staffing Contingency – Staff recommends that $85,000 in ongoing revenue remain unallocated at this time, but earmarked for anticipated staffing needs within the upcoming year. In particular, needs exist for an IT resource to support criminal justice and a construction manager to support the County’s CIP program. These needs are continuing to be refined, and staff will return to the Board with a recommendation once staffing plans have been fully developed.
Reserves
To safeguard against future economic downturns and set aside funding for County needs and liabilities, it is recommended that additional funding be allocated to various reserves as detailed below:
General Reserve – It is recommended that an additional $1,044,749 be allocated to the General Reserve. The County Policy on Fund Balance and Reserves establishes a General Reserve target of 5% to 15% of average General Fund expenditures. The 2018-19 Recommended Budget included $575,133 in additional funding to just maintain the reserve at the current 5.5% level. The recommended additional funding would increase the reserve level to 6.0%.
Liability Reserve – It is recommended that $260,000 be allocated to the Liability Reserve to protect against future litigation or claims against the County. In May 2018 the Board approved a $550,000 settlement to resolve Winnen Family Properties, LLC v. County of Yolo, which drew the Liability Reserve down to just $340,000. County Counsel has indicated that a Liability Reserve of $600,000 should be sufficient to protect the County from litigation exposure.
Non-General Fund
Additional 2018-19 funding requests have been received that can be met through non-General Fund resources. A summary of these requests are provided below.
Community Services
The proposed Adopted Budget for Roads includes $1,588,000 in additional funding related to changes in road and bridge improvement projects, including the Highway Safety Improvement Program (HSIP) Striping Project which will be completed in one year instead of the original three-year project timeline. Additionally, staff recommends $115,000 in additional Roads funds for a replacement truck and two digital message boards. These items are HUTA funded.
The proposed Adopted Budget for Integrated Waste Management (IWM) includes an increase of $1,320,000 in funding for Capital Projects, including two projects that were previously approved by the Board on July 24, 2018. The budget also includes a transfer of $800,000 to the IWM Post Closure fund in order to maintain the state required balance in that fund.
For Building and Planning, the proposed Adopted Budget includes an increase of $100,000 in contract services for cannabis related CEQA compliance, which is offset by increased revenue, and $51,000 for four months of position overlap for an anticipated staff retirement. The budget also includes an additional $50,000 for agricultural conservation easement, which is offset by an increase in the use of fund balance.
The budget for Cannabis, which transitioned to the Department of Community Services on July 1, 2018, is unchanged from the Recommended Budget. Staff plans to return to the Board in the near future with a more comprehensive cannabis budget update.
County Administrator’s Office
The proposed Adopted Budget for the County Administrator’s Office includes an additional $1.1 million for completion of the Westucky water and sewer connection project, which is funded with State Community Development Block Grant (CDBG) grant funds. In addition, the proposed Adopted Budget includes $198,000 for the Westucky Housing Rehabilitation program to connect each residential property to the City main water lines at the front of the property.
Other significant adjustments include a $299,000 reduction in the Office of Emergency Services due to expiration of four Delta grants partially offset by an increase in Homeland Security grants; a $334,000 increase in the El Macero Community Service Area (CSA) related to completion of the pavement resurfacing project and an estimated increase in water bills; and a $164,000 increase in the Wild Wings Sewer CSA due primarily to continued repair of the wastewater recycling facility.
District Attorney
The proposed Adopted Budget for the District Attorney’s Office includes additional $200,000 in Federal Office of Emergency Services (OES) Grant funding. This new revenue is funding existing expenditures in the Multi-Disciplinary Interview Center (MDIC) unit, consequently reducing the unit’s use of fund balance.
Health & Human Services Agency (HHSA)
The proposed Adopted Budget for HHSA includes additional funding for seven new positions, including two Programmer Analysts and five Child Welfare Services positions. The Programmer Analyst positions are needed to provide report-writing capabilities within the CalWIN system, and to support Agency-wide data extraction and reporting needs. The Child Welfare positions are needed to support continuous quality improvement within the Child, Youth and Family branch, including monitoring existing contracts, conducting case reviews, and analyzing the Results-Based Accountability strategies to align programmatic requirements and procedures with the overall continuum of care.
The proposed Adopted Budget also includes a $937,000 increase in Foster Care assistance payments, primarily due to cost increases related to the expansion of Wraparound services, as well as a $1.5 million increase in contractual funding for Early and Periodic Screening, Diagnosis and Treatment (EPSDT) mental health services. Other significant adjustments include a $717,000 increase in Mental Health Services Act (MHSA) adult residential and crisis residential service contract, a $230,000 increase in CalWORKS mental health contract, and a $175,000 increase in Child Welfare Services supervised visitation contracts.
Finally, the proposed Adopted Budget includes $7.2 million in Intergovernmental Transfer (IGT) funding that is available to spend in 2018-19. This amount reflects unspent balances that have accumulated over several years. As reflected in the table below, it is recommended that $3.6 million be allocated for new and ongoing uses consistent with IGT spending plans, while $1.1 million (or 15%) be set aside in an IGT reserve and $2.5 million be designated for emerging needs.
2018-19 IGT Funding
| IGT Funds Available to Spend in 2018-19 |
$7,201,663 |
| |
|
| Recommended Uses: |
|
| Ongoing from 2-year Spending Plan |
1,946,046 |
| New for 2018-19 Spending Plan |
1,682,970 |
| IGT Reserve (15%) |
1,080,249 |
| Emerging Needs |
2,492,398 |
| Total Recommended Uses |
$7,201,663 |
Attachment J provides a detailed listing and description of the recommended uses.
Library
The proposed Adopted Budget for the Library includes an increase of $45,000 for multiple staffing changes and $57,000 for professional service contracts, building maintenance costs, and supplies. The budget also includes funding for adding ecommerce to library self-check stations ($34,000), new Children’s and Teen Areas ($39,000) at the Winters Community Library, and an ESL for Caregivers class ($27,000). The additional expenses are funded by the use of fund balance, donations, and additional grant funding.
Probation
The proposed Adopted Budget for Probation includes nine new positions funded by the Office of Refugee Resettlement (ORR) grant, including seven new Detention Officers, one new Clinician, and one new Social Worker Practitioner with an annual cost of $966,432. In addition, Probation’s ORR budget reflects an increase of $184,974 in overtime and extra help costs and $536,932 in miscellaneous services and supplies including food, travel, GSD building maintenance, security upgrades, and radio communication improvements. Another notable item included in Probation’s budget is $1.1 million in indirect cost reimbursements to other County departments, including HHSA and Sheriff, for costs related to the ORR program. It should be noted that these reimbursements, which may offset General Fund dollars, have not been included in other department budgets at this time. Staff is continuing to analyze the ORR-related costs in each department, and may return to the Board with a recommended budget adjustment at a later time.
The proposed Adopted Budget also includes funding for three additional new positions, including a Probation Aide, a Detention Officer, and a Senior Accounting Technician, at an annual cost of $295,682. Other significant expenditure increases include $60,000 for two new hybrid vehicles, $35,987 for Work Program equipment replacement, $30,726 for emergency mental health treatment, $30,000 in General Services building maintenance costs, and $29,647 for MIOCR program evaluation. With exception of the Detention Officer position, which is primarily funded by increases in the Work Program revenues, these expenditure increases are funded by existing General Fund allocations, Proposition 172, and other revenue sources that were redirected due to the department receiving $2.5 million in supplemental ORR Grant funding. Staff recommends funding these additions as no additional General Fund support is needed.
Finally, the Adopted Budget for Probation includes $115,000 for a youth mentorship contract funded by Local Innovation Fund in efforts to reduce recidivism.
Reserves and Contingencies
As discussed in the sections above, the 2018-19 Adopted Budget allocates additional funds to various reserves and contingencies. The tables below summarize the reserve and contingency amounts included in the 2018-19 Adopted Budget.
2018-19 Appropriation for Contingencies
(Recommended and Adopted) |
| General Fund |
$2,500,000 |
| Public Safety |
$500,000 |
| Health & Human Services |
$1,500,000 |
| IT Innovation |
$500,000 |
| Safety & Security |
$100,000 |
| Roads/Transportation Planning |
$350,000 |
| CSA Operating |
$100,000 |
| Homeless |
$200,000 |
| Equity Adjustments |
$250,000 |
| Upcoming Staffing Needs |
$85,000 |
2018-19 Budgeted Reserve Levels
(Recommended and Adopted) |
| General Reserve (6.0%) |
$12,536,989 |
| Capital Improvement Program |
$3,500,000 |
| Road Maintenance |
$300,000 |
| Claims Against the County |
$600,000 |
| Audit Disallowance |
$2,000,000 |
| Unfunded Liabilities |
$890,000 |
| OPEB Trust* |
$16,390,824 |
| Pension Trust* |
$2,662,969 |
*Reflects estimated 2018-19 contributions and balances based on projected department charges and premium payments.
Carryforward Appropriations
The 2018-19 Adopted Budget includes $3.0 million in unused appropriations from 2017-18 that were carried forward into 2018-19. These appropriations are for one-time purchases that have been ordered but not yet paid for, or for specific one-time projects or initiatives that were not completed by year-end. Examples include vehicle purchases that have not yet been invoiced, or contingency funds awarded for a specific project that had not yet been completed. The purpose of carryforward appropriations is to ensure sufficient budgetary authority to meet contractual obligations and to carry out Board directives. A summary of carryforward items and amounts by department is provided in Attachment H. All carryforward appropriations have been incorporated into the 2018-19 Adopted Budget, and are included in the budget totals reflected in Attachment B, Exhibit B1.
C – 2017-18 Recommended Budget Follow-up Items
Public Defender/District Attorney Staffing Analysis
At the May 8, 2018 Board of Supervisor meeting, it was requested that a position comparison study be conducted by staff. The study was to compare not just the attorney ratio, but administrative and supportive staff as well. This analysis was also to consider differing funding sources, work load and parity of technical equipment. Due to the complexity of this analysis, staff will need additional time to complete the staffing comparison, and will plan to bring it back to the Board later this fall. |