Meeting Summary
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At a glance
Treasurer-Tax Collector-County Auditor Budget Presentation
- Staff proposed a $7.1 million operating and $1 million capital budget for FY 2014-15, including a $1 million allocation for the Thomson Reuters Momentum system.
- The department reported ranking third in the state for secured property tax collections and reaffirmed its double-A plus long-term lease financing rating.
- Staff detailed the property tax delinquency process, projecting 96% collection by April 10 and approximately $7 million moving to the redemption roll by June 30.
- The presentation covered the implementation of the Veterans Identification Card program and the Retirement Board’s actions to reduce unfunded liabilities.
Auditor-Controller Budget Presentation
- Staff requested four new accounting positions to support a new training and development program and manage $626 million in property tax distributions.
- Key projects include the Momentum system implementation, auditing $40 million in HCD loans, and responding to an OIG audit involving $3.1 million in potential recoveries.
- Staff emphasized the recruitment of college graduates and the use of Deming management philosophy for staff development.
- Performance measures focused on on-time payroll processing and tax distribution accuracy.
Asset Management Plan Update
- Staff reported that Phase 1 of the Jorgensen Associates assessment is scheduled for May 2014, covering 8.5 million square feet of buildings and 310 acres of parks.
- The estimated deferred maintenance backlog is $94 million, with a Facility Condition Index of 9.8.
- Projections indicate the backlog could grow to nearly $760 million within 20 years if current funding levels are maintained.
- Recommendations included improving inventory accuracy and addressing valuation methods to maintain assets.
Budget Workshop – Departmental Budgets
- The board reviewed budgets for the Auditor-Controller, Clerk-Recorder-Assessor, Treasurer-Tax Collector, and General Services departments.
- Discussion focused on staffing requests, including an additional appraiser for the Assessor’s office and online payment system costs for the Treasurer.
- The board indicated they were not prepared to make final decisions at this time.
Budget Workshop – Non-County Agency Requests and General County Programs
- Staff noted an increase of approximately $4.3 million in the strategic reserve.
- Board members discussed prioritizing finite resources for North County Jail funding, accounting positions, and revenue-generating roles in Public Works and the Assessor’s office.
Budget Workshop – Contingency and Strategic Reserve Policies
- Discussion addressed the standing budget principle requiring an annual addition of $500,000 to the contingency fund.
- Staff confirmed the contingency fund balance has grown to over $2 million due to conservative usage in recent years.
- The board discussed the relationship between contingency funds, strategic reserves, and deferred maintenance.
Budget Workshop – Departmental Requests and Fund Balances
- The board directed staff to incorporate unanticipated fund balances from Public Health, P&D, and ADMHS into the budget for specific purposes.
- Specific mentions included funding for the 211 program and a veterans coordinator position in General Services.
Budget Workshop – Elections and Poll Worker Recruitment
- The Elections Department reported a need for 163 poll workers prior to mid-May training.
- Staff outlined recruitment strategies and the status of a proposal allowing county employees to use vacation days for poll work.
- If the employee program is not implemented by November, the department may request permission to email employees for volunteer assistance.
Budget Workshop – Assessor and Property Tax Administration
- A board member raised concerns regarding a staffing deficit of five to ten members in the Assessor’s office.
- The board discussed the impact of vacancies on property tax revenue and the structural imbalance in the department.
- A board member requested that the CEO prioritize addressing this staffing issue.
Budget Workshop – Property Tax Appeals and Delinquency
- Staff explained that the county continues to collect the assessed amount during an appeal, holding the disputed difference in a separate account.
- Staff detailed the delinquency penalty structure, including an 18% annual penalty, and the eventual process of property auction.
- Staff responded that the rate of properties in delinquency is low.
Budget Workshop – Facility Maintenance and Reservations
- Staff explained that maintenance plans are adjusted based on immediate needs and risks, distinguishing between urgent hazards and cosmetic repairs.
- The board discussed the fragmentation of facility reservation systems across different departments.
- A board member suggested developing a unified online reservation system to maximize revenue and improve public service.
Budget Workshop – General County Programs and Fund Balances
- Staff presented the General County Programs budget, including allocations for the New Jail Operations, Facilities Management, and Strategic Reserve.
- The board discussed the need for greater detail in budget documents regarding the movement of funds between categories.
- A board member requested that future presentations include footnotes explaining specific changes and assumptions within each budget line item.
Budget Workshop – Deferred Maintenance and Infrastructure Funding
- Staff presented data indicating an estimated range of $17 million to $39 million for additional maintenance needs, with a midpoint of $28 million.
- Staff outlined four funding options, including maintaining existing levels, increasing funding annually, or reallocating general fund contributions.
- The board discussed the importance of identifying the complete asset inventory, including out-of-service buildings, before finalizing maintenance costs.
Budget Workshop – Next Steps and Timeline
- Staff outlined the upcoming schedule, including a recommended budget release on May 15 and budget adoption hearings on June 9 and 10.
- The board directed staff to proceed with the budget development process in accordance with established principles and to incorporate workshop feedback.
Clerk, Recorder, and Assessor Department Budget Presentation
- The department presented a $15.6 million budget with 95.4 budgeted positions, noting a decrease from a peak of 118 full-time employees.
- The Assessor Division requested incremental staffing increases to reach an optimal level of 73 to 74 FTEs, compared to the current 68.
- The department requested 3.5 FTEs for the Elections program to mitigate liability risks associated with understaffing.
- Public commenters raised concerns regarding data in the budget book, hiring private appraisers, and the legal feasibility of voter ID requirements.
General Services Department Budget Presentation
- The department presented a $41.3 million operating budget and highlighted major projects including the Northern Branch Jail AB 900 Project and the Koyama Pool Project.
- Staffing requests included a permanent Purchasing Manager, a Construction Inspector, and a Sustainability Coordinator.
- Public commenters discussed the need for a maintenance index, local vendor participation, and the timing of releasing the Jorgensen report.
General Fund Revenue, Deferred Maintenance, and Budget Priorities
- The discussion focused on the necessity of obtaining detailed cost data to determine whether to retain or maintain various county assets.
- It was noted that 93% of general fund revenue comes from property tax, necessitating growth in the tax base.
- It was argued that a balanced budget requires the full funding of required operational costs, including maintenance for roads, parks, and buildings.
- A proposal was made to schedule a specific hearing date in early May to allow sufficient time for members to review available information.
Full summary
Agenda Item: Treasurer-Tax Collector-County Auditor Budget Presentation
- Staff presented a proposed operating budget of $7.1 million and a capital budget of $1 million for Fiscal Year 2014-15. The presentation included a staffing proposal for 43 positions, noting a reduction from 52 FTEs in 2006-07. A $1 million allocation was designated for the Thomson Reuters Momentum property tax system, a joint project with the Auditor-Controller with an August go-live date; the total contract value is approximately $2.5 million. Financial metrics indicated that 41% of funding comes from General Fund contributions. The department reported ranking third in the state for secured property tax collections and sixth for unsecured collections. The presentation covered the implementation of a new Veterans Identification Card program and the filing of 1,925 VA claims. The county’s double-A plus long-term lease financing rating was reaffirmed, described as the highest available in the state for public entities. Staff explained the property tax delinquency process, projecting 96% collection by April 10 and approximately 1% of the roll ($7 million) moving to the redemption roll by June 30. The Retirement Board’s actions to address unfunded liabilities were discussed, including reducing the earnings assumption from 7.75% to 7.5% and closing the amortization period to 17 years. Board members asked questions regarding the credit rating and the clarity of budget presentations. No motions were made, seconded, or voted upon.
Agenda Item: Auditor-Controller Budget Presentation
- Staff presented the department’s budget and operations, requesting four positions (two senior and two entry-level accountants) to support a new training and development program. The department manages the county’s financial transactions, including $626 million in property tax distributions to other taxing entities, and maintains general ledgers for approximately 15 special districts and the County Education Office. Staff discussed workload challenges resulting from state and federal program changes, new grants, and complex billing allocations. Projects discussed included the Momentum system implementation (currently in user acceptance testing), auditing $40 million in outstanding Housing & Community Development loans, initiating a new time card system for Fair Labor Standards Act compliance, and collaborating on a response to an Office of Inspector General audit involving $3.1 million in potential recoveries. Staff emphasized the recruitment of college graduates and the use of Deming management philosophy for staff development. Performance measures included on-time payroll processing and tax distribution accuracy. Board members asked questions regarding accountant placement for specific projects and the impact of asset valuation on credit ratings. No motions were made, seconded, or voted upon.
Agenda Item: Public Comment
- A representative from the League of Women Voters of Santa Barbara announced a candidate forum for the June 3rd election, scheduled for April 23rd at the Goleta Valley Community Center, featuring candidates for the Second District Supervisor and County Sheriff. The representative highlighted State Proposition 42 (requiring compliance with open meeting and public records laws) and County Measure M-2014 (County Facilities Maintenance Ordinance) on the June ballot, encouraging voters to review impartial analysis and fiscal impact statements. No motions were made, seconded, or voted upon.
Agenda Item: Asset Management Plan Update
- Staff presented an update on the asset management plan development project authorized by the board the previous year. The contract with Jorgensen Associates Incorporated began in October 2013. Phase 1, a facility condition assessment profile of approximately 3,500 pages, is scheduled for delivery in May 2014. Phase 2, a maintenance management plan with prioritized needs over the next 20 years, is scheduled for delivery in July 2014. The consultant inspected 73% of all buildings and park components, evaluating over 8.5 million square feet of buildings (current replacement value of $715 million) and 310 acres of parks (current replacement value of $240 million). The estimated deferred maintenance backlog is $94 million, with a Facility Condition Index (FCI) of 9.8. Staff explained that industry standards suggest annual spending of 2–4% of current replacement value to maintain assets, equating to approximately $19.2 million annually at the 2% level, compared to current annual maintenance spending of approximately $14 million. Projections indicated that if current funding levels are maintained, the deferred maintenance backlog could grow to nearly $760 million and the FCI could exceed 50% within 20 years. Recommendations included improving inventory accuracy, addressing valuation methods, and considering operational changes. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Departmental Budgets
- The board reviewed departmental budgets for the Auditor-Controller, Clerk-Recorder-Assessor, Treasurer-Tax Collector-Public Administrator, and General Services.
- Auditor-Controller: Discussion focused on timely payroll processing and staff knowledge retention.
- Clerk, Recorder, Assessor: Discussion focused on a request for one additional appraiser to handle workload and generate revenue. Board members questioned the justification for the staffing request.
- Treasurer, Tax Collector, Public Administrator: Discussion included the online payment system for property taxes, credit card payment costs, and the status of the Retirement Board. The deadline for applications for a public member position on the Retirement Board was noted as Friday, the 11th.
- General Services: Discussion included the timing of the Jorgensen report and specific line items.
- The board indicated they were not prepared to make final decisions at this time. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Non-County Agency Requests and General County Programs
- The board reviewed non-county agency requests and general county programs, including fund balances. Staff noted an increase of approximately $4.3 million in the strategic reserve. Board members discussed the strategic allocation of finite resources, prioritizing items such as North County Jail funding, accounting positions for the jail, and revenue-generating positions in Public Works and the Assessor’s office. No motions were made, seconded, or voted upon.
Agenda Item: Public Comment (Tourism and General)
- A representative from the Solvang Conference and Visitors Bureau, speaking on behalf of destination marketing organizations in the Santa Ynez Valley, thanked the board for recognizing tourism funding as a regular line item. The speaker cited 1.5 million visitors and $98 million in annual spending in Solvang in 2012 and requested stronger investment in collaborative tourism marketing. Other public comments were received regarding departmental presentations. No motions were made, seconded, or voted upon.
Agenda Item: Adjournment
- The board agreed to adjourn the current session and reconvene on Tuesday, the 15th, to continue the budget workshop. The board indicated a preference to block out time for focused discussion on asset management and budget issues rather than making immediate line-by-line decisions.
Agenda Item: Budget Workshop – Contingency and Strategic Reserve Policies
- Discussion addressed the budget principle requiring an annual addition of $500,000 to the contingency fund. A board member inquired whether policy dictates a threshold at which additions to the contingency fund should cease and funds should be redirected to the strategic reserve. Staff confirmed that the contingency fund balance has grown to over $2 million due to conservative usage in recent years. The board discussed the relationship between contingency funds, strategic reserves, and deferred maintenance, noting that the $500,000 annual addition to contingency is a standing budget principle. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Departmental Requests and Fund Balances
- A board member noted that several departments, including Public Health, Planning and Development (P&D), and ADMHS, identified unanticipated fund balances they wished to use for specific purposes, such as animal services, backfilling positions (approximately $300,000 for P&D), and KDA resources. The board directed staff to ensure these items are incorporated into the budget. Specific mentions were made to include funding for the 211 program and a veterans coordinator position in General Services. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Elections and Poll Worker Recruitment
- The Elections Department reported a need for 105 poll workers in South County and 58 in North County prior to mid-May training. Staff outlined recruitment strategies, including Craigslist, newspapers, and sample ballot books. A board member inquired about the status of a proposal allowing county employees to use vacation days to work as poll workers. Staff indicated the proposal is currently with the County Council and Human Resources, with a target implementation date of November. Staff noted that if the program is not in place by then, the department may request permission to email county employees for volunteer assistance. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Assessor and Property Tax Administration
- A board member raised concerns regarding staffing shortages in the Assessor’s office, noting a deficit of approximately five to ten staff members. The board discussed the impact of these vacancies on property tax revenue and the structural imbalance in the department, which was exacerbated by reduced staffing levels lowering property tax administration fees. Staff reminded the board that the previous year’s budget included a $600,000 ongoing general fund increase and a one-time allocation to help balance the department’s finances. A board member requested that the CEO prioritize addressing this staffing issue. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Property Tax Appeals and Delinquency
- Discussion covered the process for property tax appeals and delinquencies. Staff explained that during an appeal, the county continues to collect the assessed amount, holding the disputed difference in a separate account until the dispute is resolved. Regarding delinquencies, staff detailed the penalty structure, including an 18% annual penalty, and the eventual process of property auction. A board member inquired about the percentage of properties in delinquency, to which staff responded that the rate is low. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Facility Maintenance and Reservations
- A board member asked about the prioritization of maintenance tasks, distinguishing between urgent safety hazards and cosmetic repairs. Staff explained that plans are adjusted based on immediate needs and risks. The board discussed the fragmentation of facility reservation systems across different departments (General Services, Parks, Clerk-Recorder). A board member suggested developing a unified online reservation system to maximize revenue and improve public service. Staff acknowledged the suggestion for future consideration. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – General County Programs and Fund Balances
- Staff presented the General County Programs budget, which includes funding for the Human Services Commission, debt service, the Children’s Health Care Initiative, LAFCO, and other miscellaneous items. The presentation detailed the allocation of general fund contributions:
- New Jail Operations: Targeted at $4.6 million.
- Facilities Management: Targeted at $2.3 million.
- Program Restoration/Emerging Issues: Targeted at $2 million.
- Strategic Reserve: $1 million.
- Roads: $500,000.
- Contingency: $500,000.
- Staff clarified that the $500,000 previously allocated to capital outlay was moved to deferred maintenance during last year’s budget hearings. The board discussed the need for greater detail in the budget documents regarding the movement of funds between categories. A board member requested that future presentations include footnotes or asterisks explaining the specific changes and assumptions within each budget line item. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Deferred Maintenance and Infrastructure Funding
- Staff presented data from the Jorgensen report regarding deferred maintenance, noting that the current estimated range for additional maintenance needs is $17 million to $39 million, with a midpoint of $28 million. This range includes roads ($9 million), General Services ($7 million), and Parks ($1 million). Staff outlined several funding options for the board’s consideration: 1. Maintain existing funding levels and augment with one-time funding or a percentage of year-end savings. 2. Increase funding by a set amount annually (similar to the Jail Operations Fund). 3. Increase funding by a percentage of unallocated general fund growth (similar to the Fire District tax shift). 4. Reallocate current general fund contributions. Staff provided projections showing how different funding levels (2% to 4% of assessed value) would impact the maintenance fund over a ten-year period, accounting for inflation. The board discussed the importance of identifying the county’s complete asset inventory, including out-of-service and abandoned buildings, before finalizing maintenance costs. A board member questioned the rationale for developing maintenance programs for abandoned buildings, suggesting that decisions should first be made regarding the disposal or repurposing of such assets. Staff agreed to provide a detailed schedule showing the changes in fund balances between periods and to incorporate the board’s feedback into the final budget recommendations. No motions were made, seconded, or voted upon.
Agenda Item: Budget Workshop – Next Steps and Timeline
- Staff outlined the upcoming schedule:
- Recommended budget release: May 15.
- Election: June 3.
- Budget adoption hearings: June 9 and 10.
- The board was reminded that no formal decisions were required during the workshop, but input was requested to inform the CEO’s recommended budget. The board directed staff to proceed with the budget development process in accordance with established principles and to incorporate the feedback provided during the workshop. No motions were made, seconded, or voted upon.
Agenda Item: Clerk, Recorder, and Assessor Department Budget Presentation
- The department presented a total budget of $15.6 million, with a general fund contribution of approximately $9.7 million (60% of the total). The department currently has 95.4 budgeted positions and is utilizing $546,000 in one-time use funds. Staffing levels have decreased from a peak of 118 full-time employees to 95.4. The Assessor Division has seen an 18% decrease in funded positions, dropping from 83 to 68. Key accomplishments cited include the remodeling of underutilized space in the Hall of Records for weddings and staff meetings, and the goal to complete 97% of assessments by the June 30 roll close deadline. Upcoming objectives include conducting the November 2014 general election, assessing archived records for restoration, and aiming for 100% completion of roll work by June 30, 2015. Performance measures include increasing marriage license issuance and ceremonies, improving the retention rate of assessment appeals from 87% to 90%, and maintaining high voter turnout. Challenges identified include a structural imbalance in funding due to varying reimbursement rates between primary and general elections, and continued staffing shortages. The department requested 3.5 FTEs for the Elections program to mitigate liability risks associated with understaffing and inexperienced seasonal employees. Additionally, the Assessor Division requested incremental staffing increases, noting that optimal staffing is estimated between 73 and 74 FTEs, compared to the current 68. The department also requested $100,000 for outside experts and counsel regarding a continuing assessment appeal case with Brightburn Oil Company. Public commenters raised concerns regarding the lack of data in the budget book, the potential for hiring private sector appraisers to address backlogs, the need for online campaign contribution reporting, the legal feasibility of voter ID requirements, and the possibility of transitioning to mail-only voting. Questions were also raised regarding the Prop 8 Section 51 assessment process and the impact of staffing levels on revenue retention. No motions were made, seconded, or voted upon.
Agenda Item: General Services Department Budget Presentation
- The General Services Department presented a budget including an operating budget of $41.3 million, capital assets of $10.5 million, a general fund allocation of $8.3 million, 113 FTEs, and a one-time use of fund balance of $240,000. An expansion request of $8.1 million was noted, with no service level reductions proposed. Major projects discussed include:
- Northern Branch Jail AB 900 Project: A $96 million collaborative effort involving the Sheriff’s Office, County Executive Office, County Council, and Auditor’s Office. Preliminary designs are scheduled for board review, with bidding planned for January 2015 and groundbreaking in May 2015. A potential $38 million state grant to add a wing to the project is under consideration.
- Koyama Pool Project: A $1.5 million collaboration with Community Services and Risk Management.
- Main Jail Sewer and Kitchen Project: Construction commences in August 2014 with completion expected in early 2015.
- The department highlighted the completion of a county campus phone system upgrade to Voice over Internet Protocol (VoIP) and ongoing sustainability efforts, including hosting the NACO Green Government Summit. Future objectives include implementing a new procurement system to improve local vendor participation metrics, developing a five-year strategic plan for the Public Safety Microwave Radio Communication Network, and updating the IT strategic plan. Key challenges and requests included addressing the backlog of aging infrastructure, with a focus on health and safety concerns. Staffing requests included a permanent Purchasing Manager, a Construction Inspector, a Sustainability Coordinator (1 FTE) or one-time funding for a consultant, an Accountant for the Northern Branch Jail Project, and three management positions to be permanently filled. A plan to integrate the Santa Barbara Veterans Memorial Building into General Services reservations and management is scheduled for presentation on May 6. Public commenters discussed the need for a maintenance index, the cost of desk phones versus cellular technology, the importance of local vendor participation, and the timing of releasing the Jorgensen report regarding deferred maintenance before absentee ballots are mailed for Measure M. Questions were also raised regarding the Children’s Health Initiative funding in the context of the Affordable Care Act. No motions were made, seconded, or voted upon.
Agenda Item: General Fund Revenue, Deferred Maintenance, and Budget Priorities
- The discussion focused on the necessity of obtaining detailed cost data to determine whether to retain or maintain various county assets. It was noted that while a report has been generated, further work is required to evaluate the costs of keeping all assets and deciding on their maintenance. A proposal was made to schedule a specific hearing date in early May, prior to the June hearing, to allow sufficient time for members to review the available information. It was stated that waiting for a complete 3,500-page document was unnecessary for a meaningful discussion, as the current information was deemed adequate. The conversation shifted to the need for better performance metrics and general fund revenue. It was observed that 93% of general fund revenue comes from property tax, necessitating growth in the tax base rather than relying solely on appreciation of the existing base. It was stated that current expenses have grown beyond what current revenue can sustain, requiring the retention of existing businesses and the attraction of new investments. Regarding infrastructure, it was reported that deferred maintenance levels for buildings and parks are approximately twice the previously estimated levels. It was argued that a balanced budget requires the full funding of required operational costs, including maintenance for roads, parks, and buildings. It was stated that deferring maintenance adds to future debt. No formal motions were moved, seconded, or voted upon.