Meeting Summary
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At a glance
CEO and Budget Director Presentations
- The CEO outlined the day's agenda, including budget updates, deliberations on specific items, and final adoption.
- The Budget Director presented updated financial data, noting a potential 3.5% to 4% increase in assessed property tax value.
- Staff identified $465,000 in unrestricted reserve accounts available for reallocation.
- The CEO recommended using additional funding to reduce one-time fund use and deferred maintenance rather than for new programs.
Board Deliberations: Program Expansions and Restorations
- Supervisors from Districts 5, 4, and 3 presented specific funding requests for their respective districts.
- Requests included staffing increases for fire, legal, and housing departments, as well as road maintenance funds.
- Supervisors discussed revenue generation strategies, including a Tourist Occupancy Tax increase and oil permitting certainty.
- Specific opposition was raised regarding taxpayer funding for non-citizen health initiatives and manager pay increases.
Budget Deliberations: Item-by-Item Consensus Building
- The Board reached consensus on funding levels for numerous items, including ADMHS services, UC Cooperative Extension, and fire station support.
- Consensus was reached to fund Manager Salary Increases under Option 3 at $860,000.
- No consensus was reached on funding for Juvenile Institution Officers or Sheriff Funding.
- The Board agreed to fund the Courthouse Mural Room restoration at $40,000 and the Plastic Bag Ordinance at $35,000.
Asset Management Plan Funding
- The Board debated whether to allocate funds immediately or wait for refined cost estimates from staff.
- Supervisor Lavinino suggested deferring the decision until refined numbers were available.
- The Board agreed to defer this specific funding decision until staff returned with refined cost data.
Deferred Road Maintenance Funding
- The Board discussed the amount to allocate for deferred road maintenance, with proposals ranging from $1 million to $2.5 million.
- Staff clarified that these amounts would be in addition to the existing $500,000 budgeted for Public Works.
- The Board reached a consensus to add $2 million to the existing allocation for deferred road maintenance.
Funding Sources and Ongoing vs. One-Time Designations
- The Board designated specific budget items as either ongoing or one-time expenses.
- Fire Engine 11 and Station 22 were designated as one-time expenses to preserve anticipated ongoing general fund revenue.
- Ongoing funding was allocated for items such as ADMH Inpatient Services, Library Per Capita, and Shelter Operations.
- One-time funding was allocated for the Courthouse Mural Room, Hollister Avenue Streetscape, and Plastic Bag Ordinance.
Final Budget Adoption and Funding Sources
- Staff presented the final funding plan, balancing ongoing and one-time uses with corresponding revenue sources.
- Approximately $2.193 million in ongoing property tax revenue was allocated to ongoing items.
- One-time sources included $902,000 from deferred maintenance, $1,098,000 from capital accounts, and $2 million from Fire District fund balances.
- A portion of the strategic reserve ($1,184,000) was recognized to balance the budget, resulting in a projected ending balance of approximately $28.6 million.
Motion to Adopt Budget
- Supervisor Farr moved to approve the budget for the year, which was seconded.
- Supervisor Adam stated he would likely vote no, citing concerns about deferred maintenance and asset management.
- Supervisor Lavinino supported the budget, noting the significant increase in road maintenance spending.
- The motion to adopt the budget passed with a vote of 4-1.
Board of Supervisors as Successor Agency to Redevelopment Agency
- Michael Foley moved for the Board of Supervisors to act as the successor agency to the Redevelopment Agency.
- The motion was seconded with no further discussion offered.
- The motion passed with a vote of 5-0.
Full summary
Meeting Reconvened and Roll Call
- The Board of Supervisors reconvened for the final day of budget deliberations on June 14. Roll call was taken, confirming all members were present. The Pledge of Allegiance was recited.
General Public Comment
- The Board opened the session with a general public comment period. Several members of the public addressed the Board regarding the county’s financial situation and revenue generation:
- Andy Caldwell (CoLab) requested that the Board examine streamlining regulations affecting the oil industry to enhance revenue streams.
- Ryan Sullivan (Deputy Sheriff’s Association) encouraged the Board to promote county growth in business and oil sectors to increase revenue.
- Bruce Corsaw (Local 620) requested support for additional revenue sources, including hotel construction and oil production.
- Joe Armendariz (Santa Barbara County Taxpayers Association) cited examples from other states where oil and gas resources created jobs and urged the Board to consider monetizing underground capital resources.
CEO and Budget Director Presentations
- CEO Waller outlined the day’s agenda, which included a budget update, a closing summary of the proposed budget, deliberations on "Attachment E" items, discussion of funding sources, a recess for staff to match requests with funding, and final adoption. He noted the Board’s role as the successor agency to the former Redevelopment Agency.
- Budget Director Alvarez presented updated financial information, including clarifications on CEO-recommended items (a $1,184,000 program restoration line and a proposal to utilize $1,000,000 from deferred maintenance fund balances). Updated property tax estimates indicated a potential increase of 3.5% to 4% in assessed value, compared to the current 2.2% estimate. Staff identified $465,000 in unrestricted reserve accounts that could be reallocated. Supervisor Lavinino requested an updated fund balance sheet reflecting the Board’s deliberations before the final vote; staff agreed to update figures after the recess.
- Supervisor Wolf expressed concern that identifying funding sources after listing program requests seemed "backwards," suggesting the Board should first agree on available funds. The Chair and CEO maintained the current process but acknowledged the input.
- CEO Waller delivered a closing summary of the FY 13-14 proposed budget of $844.5 million, noting staffing levels of 3,891 FTEs (a decrease of 572 FTEs). He highlighted that nearly 60 cents of every General Fund dollar goes to public safety departments, rising to nearly 65 cents when including Fire District Tax Transfers and Northern Branch Jail Operations. He recommended that any additional funding be used to reduce one-time fund use and deferred maintenance rather than for new programs.
Board Deliberations: Program Expansions and Restorations
- The Board deliberated on program expansions and restorations, starting with District 5 and proceeding to District 1.
- Supervisor Lavinino (District 5): Acknowledged difficult economic conditions. Proposed strategies for revenue generation, including a Tourist Occupancy Tax (TOT) increase, increased revenue from Kachuma Park concessions, and full funding of the Chamber of Commerce/Visitors Bureau. Advocated for certainty in the oil permitting process. Opposed taxpayer funding for the Children’s Health Care Initiative for non-citizens and a manager pay increase in the current budget cycle. Specific requests included:
- Clerk of the Board/CEO’s Department: $50,000 for an extra help position.
- County Counsel: $123,000 for an additional attorney.
- UC Cooperative Extension: Restore funding to $180,000 for 4-H and Farm Advisors.
- Parks Department: $36,400 for IT support and $80,000 for an AOP position.
- Housing and Community Development (HCD): $119,000 for cost analysts and $45,000 for shelter operations.
- HCD: $195,000 for the Convention and Visitors Bureau.
- Treasurer-Tax Collector: $149,183 for a financial systems analyst.
- Road Maintenance Fund: $2.5 million.
- Fire Department: $1,544,497 to keep Engine 11 in Goleta and $411,307 to keep a firefighter at Station 22.
- Courthouse Mural Room Restoration: Support for approximately $700,000 (with $40,000 county match).
- Supervisor Adam (District 4): Agreed with concerns regarding revenue and process uncertainty. Stated that the TOT increase is minor compared to property tax revenue. Opposed negotiating labor issues in open session. Specific requests included:
- Fire Station 22: $411,000.
- Asset Management Plan: $350,000.
- Road Maintenance: $8.5 million.
- UC Cooperative Extension: $76,000 one-time bridge funding for 4-H.
- Supervisor Foley (District 3): Acknowledged improving economic indicators. Prioritized "people" over "pavement" but supported increased investment in deferred maintenance. Proposed using existing departmental fund balances for ongoing projects. Specific requests included:
- Planning and Development: Use existing $200,000 fund balance for long-range planning projects.
- Public Safety: Funding for Station 11.
Budget Deliberations: Item-by-Item Consensus Building
- The Board reviewed specific line items, seeking consensus on funding levels and program retention. Staff organized items alphabetically and grouped deferred maintenance and compensation discussions. The following items were discussed, with consensus reached or not reached as noted:
- ADMHS Inpatient Services: Consensus reached to fund at $216,000. The Board deferred the decision on whether this funding would be ongoing or one-time until later in the session.
- ADMHS Juvenile Justice Program: Consensus reached to add $300,000 to the budget. Staff clarified that this funding would be available if the Board rejects the outside contract the following week; if the contract is approved, the funds would be removed and returned to the strategic reserve.
- UC Cooperative Extension (4-H, Master Gardener, Small Farm Advisor): Consensus reached to fund at $153,000.
- County Council Legal Support: Consensus reached to fund the position at $123,800.
- Clerk of the Board Staffing: Despite the CEO’s non-recommendation for expansion, consensus reached to fund at $50,000.
- Courthouse Mural Room: Consensus reached to fund at $40,000.
- Clerk-Recorder-Assessor Appraiser: Consensus reached to fund the position at $85,000.
- Convention and Visitors Bureau: Consensus reached to fund at $200,000, with the understanding that current allotments remain unchanged and $5,000 is allocated to the Hispanic Chamber.
- Housing and Community Development (HCD) Positions: The Board eliminated the request for the Cost Analyst and reached consensus to fund the Housing Specialist (Capital Sites) position at $105,000.
- Library Per Capita Funding: Consensus reached to fund at $397,739.
- Shelter Operations: Consensus reached to fund at $45,000.
- Warming Centers: Consensus reached to fund at $25,000 to maintain existing operations.
- Fire Engine 11: Consensus reached to fund at $1,544,500.
- Fire Management Incentive Plan: Consensus reached to fund at $96,800.
- Fire Station 22: Consensus reached to fund at $411,300.
- Manager Salary Increases (Compaction): After discussion, the Board moved to remove Option 2 and reached consensus to fund Option 3 at $860,000.
- Planning and Development – Hollister Avenue Streetscape: Consensus reached to fund at $67,000.
- Planning and Development – Existing Projects: Consensus reached to fund at $200,000.
- Juvenile Institution Officers: No consensus reached.
- Plastic Bag Ordinance: Consensus reached to fund at $35,000.
- Santa Barbara City College Small Business Development Center: Consensus reached to fund at $27,000.
- Sheriff Funding: No consensus reached.
- Treasurer-Tax Collector Financial Systems Analyst: Consensus reached to fund at $149,183.
- Deferred Maintenance: Discussion ongoing with no final consensus reached on specific allocations in this segment.
Asset Management Plan Funding
- The Board discussed the funding source for the asset management plan, specifically regarding deferred maintenance for roads, parks, and general services. Members debated whether to allocate funds immediately from the deferred maintenance fund balance or wait for staff to provide refined cost estimates via an RFQ or RFI. Supervisor Lavinino suggested deferring the decision until the refined numbers were available. The Chair proposed bringing the item back when staff presented the refined numbers. Without objection, the Board agreed to defer this specific funding decision until staff returned with the refined cost data.
Deferred Road Maintenance Funding
- The Board discussed the amount to allocate for deferred road maintenance. Initial proposals varied, with some members suggesting amounts ranging from $1 million to $2.5 million. Staff clarified that the amounts discussed should be in addition to the existing $500,000 already budgeted for Public Works. After discussion, the Board reached a consensus to add $2 million to the existing allocation for deferred road maintenance. Staff confirmed this consensus amount.
Funding Sources and Ongoing vs. One-Time Designations
- The Board reviewed a list of budget items to determine whether funding should be designated as ongoing or one-time. Staff read through the items, and the Board indicated their preference for each:
- Ongoing Funding: ADMH Inpatient Services, Juvenile Justice Programs, AG Extension, Legal Support to Litigation, General Fund Departments for County Council, Clerk of the Board Staffing, CRA Appraiser, CSD Housing Specialist, Library Per Capita, Shelter Operations, Warming Centers, Fire Management Incentive, Management Compensation Option 3, and Financial Systems Analyst for Treasurer/Tax Collector.
- One-Time Funding: Courthouse Mural Room, Fire Engine 11, Station 22, Hollister Avenue Streetscape, Deferred Road Maintenance, Plastic Bag Ordinance, and Business Center.
- Staff noted that designating Fire Engine 11 and Station 22 as one-time would preserve anticipated ongoing general fund revenue. The Board agreed to treat these as one-time expenses.
Public Comment
- The Board heard public comment from several individuals:
- Michael Foley thanked the Board for maintaining shelter system funding and requested assistance in addressing a 28% reduction in federal emergency solutions grants.
- Viviana Saavedra expressed anger regarding comments made about the Children’s Health Initiative and advocated for In-Home Support Services.
- Jeff Alexander thanked the Board for its support of the tourism industry.
- Kathy Janega-Dykes echoed support for the tourism industry and the $1.4 billion economic impact.
- C.J. Jackson thanked the Board for its support of the 4-H program.
- Bruce Corso (Local 620) thanked the Board for 4-H support, expressed concerns about proposed funding sources, and requested that the Board direct staff to negotiate in good faith with the union.
Final Budget Adoption and Funding Sources
- Staff presented the final funding plan, balancing ongoing and one-time uses with corresponding revenue sources.
- Ongoing Sources: Approximately $2.193 million in ongoing property tax revenue and unallocated General Fund for Capital (GFC) funds were allocated to ongoing items such as UC Cooperative Extension, County Council, Clerk of the Board, and CSD/HCD programs.
- One-Time Sources:
- $902,000 from the deferred maintenance account and $1,098,000 from the capital account were allocated to the $2 million deferred road maintenance increase.
- Fire District fund balance (approximately $2 million) was allocated to Fire Engine 11, Fire Management Incentive, and Station 22.
- Approximately $465,000 from BIF 45 designations was allocated to ADMH Inpatient Services, Courthouse Mural Room, Hollister Avenue Streetscape, Plastic Bag Ordinance, and SBCC Small Business Development Center.
- $300,000 from the contingency account was allocated to ADMH Juvenile Justice Programs.
- $200,000 in unanticipated permit revenue was allocated to expedite existing projects.
- A portion of the strategic reserve ($1,184,000) was recognized as a source to balance the budget, resulting in a projected ending strategic reserve balance of approximately $28.6 million.
- Supervisor Farr raised a question about the strategic reserve balance, suggesting an adjustment to reach $29 million. Staff noted that year-end close results might increase fund balances and suggested waiting for those results before making further adjustments.
Motion to Adopt Budget
- Supervisor Farr moved to approve the budget for the year. The motion was seconded.
Discussion on Motion
- Supervisor Adam stated he would likely vote no, citing concerns that the Board had not adequately addressed deferred maintenance and asset management issues.
- Supervisor Lavinino supported the budget, noting it represented a significant increase in road maintenance spending and acknowledged the importance of starting the conversation on deferred maintenance.
- Chair Carbajal encouraged Supervisor Adam to reconsider his vote, emphasizing the Board’s effort to find common ground.
- Supervisor Wolf expressed appreciation for the process and the balanced approach, noting the need to meet standards within available resources.
- Supervisor Adam reiterated his position, arguing that the Board should prioritize mandated asset maintenance over non-mandated initiatives like the plastic bag ban and climate change measures.
Vote Outcome
- The motion to adopt the budget passed with a vote of 4-1.
Agenda Item: Board of Supervisors as Successor Agency to Redevelopment Agency
- Motion: Michael Foley moved for the Board of Supervisors to act as the successor agency to the Redevelopment Agency, adopting staff’s recommended action.
- Procedure: The motion was seconded. No further discussion was offered.
- Decision: The motion passed.
- Vote Outcome: Passed 5-0.
Adjournment
- The Chair adjourned the budget deliberations.