Meeting Summary
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At a glance
Extra Help Services for Board of Supervisors (5th District)
- Supervisor Lavagnino requested approval to allow a retired employee to return as extra help to ensure continuity for an upcoming event.
- County Counsel noted a typographical error in the board letter regarding the citation but stated the board could act on the matter.
- The board approved the request to allow the individual to return as extra help.
Budget Overview and CEO Presentation
- CEO Miyasato presented the 2014-15 Recommended Operational Plan, highlighting an all-funds budget of $903 million and a General Fund budget of $320.9 million.
- The CEO proposed restorations and new positions in Fire, Sheriff, Public Health, Mental Health, Social Services, and other departments.
- Staff clarified that the difference between the General Fund budget and discretionary revenue consists of dedicated funds that are not discretionary.
- Department heads provided details on staffing expansions, including a 13.5 FTE increase in Social Services to maximize available funds.
Functional Group Overviews and Q&A
- Assistant CEOs provided high-level budget overviews for five functional groups, noting that Public Safety has the largest General Fund contribution.
- Supervisors expressed concern that the overview was too brief for detailed questioning but agreed to proceed with the streamlined process.
- The board took a break to formulate questions and then reconvened to address each functional group individually.
Functional Group Q&A – Policy and Executive
- The CEO explained that the expansion request for Public Information Officer functions is for contract funds to enhance public communications and train staff.
- The CEO agreed to evaluate the scope and scale of the need for an internal position versus a contract.
Functional Group Q&A – Public Safety
- The Fire Department reported that property tax allocation shifts are ahead of schedule, allowing for the restoration of critical positions like the fire fuels crew.
- The Probation Department requested funding for senior deputy probation officers to address high-risk caseloads that exceed the 1-to-50 standard.
- The District Attorney requested funds for a Victim Witness Supervisor and the Isla Vista Safety Committee to coordinate county-wide efforts and evaluate law enforcement models.
- The Sheriff’s Department clarified operating costs for the AB 900 facility and discussed a request for a jail ride program to assist indigent individuals released late at night.
Functional Group Q&A – Community Resources and Public Facilities
- Staff requested funding for an IT support position to maintain online reservations and website compatibility for Parks and Recreation.
- A request for $160,000 in one-time funds was made to add four cabins at Kachuma Lake, with an expected payoff period of under three years.
- Staff noted that funds from the Miramar project have been set aside to add low-cost overnight stays and restroom facilities at Halama.
Functional Group Q&A – General Government and Support
- General Services requested permanent funding for a Purchasing Manager position and staffing to develop a sustainability action plan.
- A $130,000 one-time allocation was discussed for replacing exterior lighting with LED fixtures, previously approved by the Debt Advisory Committee.
- Staff provided an update on Veteran Service Officers, noting that recruitment is underway for vacant positions in Santa Barbara and Lompoc.
211 Program Funding
- Staff reported a $53,700 funding shortfall for the 211 program after the City of Santa Maria declined to participate this year.
- Without this funding, it would be difficult to maintain the call center and program oversight, though the database could continue.
- Staff agreed to verify the correct amount of the City of Santa Barbara’s contribution, which was cited as both $16,000 and $20,000.
Updates Since April Workshops
- Staff presented updates including the inclusion of KDA in the ADMHS expansion and modifications to the Planning and Development long-range planning schedule.
- Specific funding requests were listed, including $160,000 for Lake Cachuma cabins and $53,700 for the 211 program.
- Staff confirmed that available funding amounts remained unchanged and that property tax revenue estimates are currently above the 3.5% projection.
Non-County Agency Requests
- The CEO recommended one-time funds for the Courthouse Legacy Foundation and the Santa Barbara Regional Chamber of Commerce.
- Various agencies requested funding for programs including Rental Housing Mediation, UC Cooperative Extension, and the Small Business Development Center.
- Legal Aid Foundation and Legal Aid Family Violence Program requested supplemental funding for self-help centers and travel expenses for critical cases.
Budget in Brief (General County Programs and Successor Agency)
- Staff presented a five-year forecast showing a positive balance growing from $900,000 in 2014-15 to $12.1 million in 2018-19.
- The presentation covered revenue sources, expenditure growth, and fund balances, including a $25.5 million Strategic Reserve.
- Staff discussed fiscal issues such as retirement funding stabilization, Affordable Care Act impacts, and workforce planning for upcoming retirements.
Closing Comments and Recommended Actions for Fiscal Year 2014-15 Budget
- Staff outlined recommended actions including the adoption of the FY 2014-15 budget and approval of final budget adjustments.
- The board was asked to delegate authority to the CEO for renewing single-year grants and contracts without significant scope changes.
- Staff presented a separate budget for the successor agency to the former County of Santa Barbara Redevelopment Agency, primarily for debt service.
Maintenance Funding Options
- Staff presented data on the deferred maintenance backlog, totaling approximately $198 million across roads, parks, and buildings.
- Four funding scenarios were proposed based on percentages of unallocated discretionary general fund growth to reach a $21.2 million annual target.
- Staff recommended a seven-point strategy for funding maintenance, including dedicating an ongoing stream of revenue and adjusting service fees.
Deferred Maintenance and Budget Policy / Adjournment
- Supervisor Wolf argued that addressing deferred maintenance should be integrated into the upcoming budget process rather than deferred.
- Supervisor Vadnais expressed an inclination to adopt a formula that provides the board with flexibility while addressing maintenance needs.
- The board agreed to reconvene on Wednesday at 9:00 AM for further deliberations on the maintenance and budget issues.
Full summary
Agenda Item 1: Extra Help Services for Board of Supervisors (5th District)
- Discussion: Supervisor Lavagnino requested approval to allow Sandy Agalos, who retired from the county on June 6, to return as extra help. The request was made to comply with government code restrictions on immediate re-hiring and to ensure continuity for the "Stand Down" event scheduled for October 18. County Counsel noted a typographical error in the board letter regarding the citation (corrected to 7522.56) but stated the board could act on the matter.
- Public Comment: No requests to speak were received.
- Motion: Supervisor Wolfe moved to approve the request. The motion was seconded.
- Decision: The motion passed unanimously.
Agenda Item 2: Budget Hearings – General Public Comment
- Public Comment:
- Tom Murphy, representing "In God We Trust," submitted documents for the record, including a promissory note and a document alleging unlawful discharge violations by county employees. He also referenced a recommended operational plan regarding sewer rates.
- Andy Caldwell, representing Colab, commented on the budget process. He expressed concern that the new process excluded detailed division and program-level information from the budget book, reduced public participation in workshops, and lumped functional groups together with limited public comment time. He advised the board not to approve the budget or the process until it is complete.
- Board Response: Supervisor Lavagnino acknowledged the comments, noting this was the first year of the new process and that the board would evaluate its effectiveness.
Agenda Item 3: Budget Overview and CEO Presentation
- Discussion: CEO Miyasato presented the 2014-15 Recommended Operational Plan, titled "Steps to Stability."
- Financials: All-funds budget of $903 million; General Fund budget of $320.9 million. Revenues increased by 6.2% and expenditures by 4.8% compared to the prior year.
- Process: The new process involved a March working session, April department presentations, and the current June hearing.
- CEO Recommended Expansions: Proposed restorations and new positions in Fire, Sheriff, Public Health, Mental Health, Social Services, Planning, Public Works, Community Services, Auditor-Controller, and General Services. Specific items included restoring the fire fuels crew, continuing 24/7 booking at Santa Maria Jail, adding mental health staff, and funding for homeless shelter operations.
- Challenges: Noted upcoming increases in health insurance costs, compensation competitiveness, deferred maintenance, and the need for "right-sizing" departments.
- Q&A:
- Supervisor Wolf asked for clarification on the difference between the $320 million General Fund budget and the $217 million discretionary revenue figure. CEO Miyasato and Budget Director Alvarez explained that the difference consists of dedicated funds (e.g., Prop 172 realignment) that are not discretionary.
- Supervisor Wolf noted discrepancies in the budget book regarding the Strategic Reserve and Roads Fund. CEO Miyasato confirmed that CEO recommended expansions (including an additional $1 million to the Strategic Reserve) were not yet reflected in the baseline budget pages cited.
- Supervisor Farr asked if outside agency requests were subtracted from the unallocated General Fund. CEO Miyasato confirmed they were.
- Supervisor Wolf and Supervisor Carbajal inquired about multi-year commitments funded by one-time revenue. CEO Miyasato explained the conservative approach of front-loading these costs from current fund balances.
- Supervisor Lavagnino and Supervisor Carbajal discussed Social Services expansions, specifically the 13.5 FTE increase. Department head Nielsen stated that 8 positions are for social workers, 4 for child welfare, and that the department maximizes staffing based on available funds rather than a specific ideal caseload target. Nielsen agreed to provide a comparator chart of caseloads and staffing levels from benchmark counties.
- Supervisor Wolf commented on the lack of measurable standards for optimal caseloads in human services departments compared to infrastructure standards.
Agenda Item 4: Functional Group Overviews and Q&A
- Overview: Assistant CEOs Terry Mosnisch and Renee Ball provided a high-level overview of the five functional groups: Policy and Executive, Health and Human Services, Public Safety, Community Resources and Public Facilities, and General Government and Support Services.
- Policy and Executive: $52.4 million total budget; 26% General Fund contribution.
- Health and Human Services: $348.5 million total budget; 5.2% General Fund contribution.
- Public Safety: $124 million General Fund contribution (largest GFC).
- Community Resources and Public Facilities: ~90% non-General Fund sources.
- General Government and Support Services: ~40% General Fund funding.
- Board Reaction: Supervisor Lavagnino expressed concern that the overview was too brief and that the board needed more detailed information to ask specific questions. Supervisor Carbajal and Supervisor Wolf agreed that the streamlined process felt reduced compared to previous years but were willing to proceed with the opportunity to ask questions.
- Adjustment: The board took a break to allow supervisors to formulate questions. Upon reconvening, the board decided to proceed functional group by functional group, allowing department heads to answer specific questions.
Agenda Item 5: Functional Group Q&A – Policy and Executive
- Discussion: Supervisor Wolf asked about the expansion request for Public Information Officer (PIO) functions. CEO Miyasato explained that the request was for contract funds to enhance public communications, particularly following the Isla Vista incident, and to train staff. Supervisor Wolf suggested evaluating the need for an internal position versus a contract. CEO Miyasato agreed to evaluate the scope and scale.
Agenda Item 6: Functional Group Q&A – Public Safety
- Fire Department: Chief Dyer provided an update on the property tax allocation shift, stating it is ahead of schedule. The funds are being used to restore critical positions, including the fire fuels crew, EMS administrator, dozer assistant operator, and IT position, in preparation for a potentially severe fire season. Budget Director Alvarez projected the tax shift will reach its 17% target in fiscal year 2019-2020, two years earlier than originally planned.
- Probation Department:
- Supervisor Farr asked Chief Taylor to reconcile budget adjustments (Attachment A-2) with enhancement requests (Attachment A-3). Chief Taylor explained that reductions included a GPS officer and a school-based officer funded by one-time sources. Enhancement requests included three senior deputy probation officers for field training (due to increased armed officers) and one deputy probation officer for high-risk adult supervision. Chief Taylor cited a 1-to-50 caseload standard for high-risk offenders and noted that 76 cases in Santa Barbara exceed this ratio.
- Supervisor Wolf asked how the department would operate if only one of the three requested field training officers were funded. It was noted that if funded, the position would be posted in Santa Maria due to high-risk case volume, though the officer would provide training across the county.
- Mental Health Services: A $34,000 request was discussed to fund the continuation of mental health services not included in the base budget. It was clarified that this amount was met with one-time funding in 2014-2015, supplementing $300,000 received for ADMHS services.
- District Attorney Requests:
- Victim Witness Supervisor: A request for $91,603 was made to hire a Victim Witness Supervisor to coordinate county-wide efforts and manage staff across three offices. The District Attorney cited the need for 24/7 availability and coordination during emergencies, referencing the Isla Vista incident.
- Isla Vista Safety Committee: A one-time request for $10,000 was made to cover travel and administrative costs for the Isla Vista Safe Committee. This includes a trip to Nevada County to evaluate a law enforcement model for potential adoption in Santa Barbara County.
- Public Defender Request: A request for two Legal Office Professional (LOP) positions at $75,000 each was discussed. The Public Defender explained that previous layoffs based on seniority resulted in the loss of bilingual staff, and these positions are intended to restore bilingual support capabilities.
- Sheriff’s Department / Jail Operations:
- Operating Costs: Clarification was provided regarding the $17 million annual operating cost figure for the AB 900 facility. Staff explained that the total operating cost for both the main jail and the new facility is approximately $17.3 to $17.5 million, with costs adjusted for pension changes under PEPRA. Additional funding required would be offset by staff transfers from the main jail.
- Jail Ride Program: A $10,000 request from the Committee for Social Justice for a jail ride program was discussed. The Sheriff indicated that this program complements a separate proposed program for overnight stays on jail grounds, as the ride program addresses transportation for indigent individuals released late at night who may not qualify for discharge planner services.
- Business Systems Analyst: During public comment, a request was raised for a Business Systems Analyst position ($55,000) to improve data accessibility from the jail management system. The Sheriff stated this position was not currently funded in the budget but could potentially be funded through AB 109 funds, though competition for those funds is high.
Agenda Item 7: Functional Group Q&A – Community Resources and Public Facilities
- Parks and Recreation:
- IT Support: A request for an IT support position was discussed. Staff noted this position is currently shared with Agriculture Weights and Measures and Parks, with the sharing agreement ending this year. Funding is requested to maintain online reservations and website compatibility for 7 million annual visitors.
- Kachuma Lake Cabins: A request for $160,000 in one-time funds to add four cabins at Kachuma Lake was discussed. Staff noted that pads and utility hookups are already in place, with an expected payoff period of under three years based on current high occupancy rates.
- Halama Facilities: It was noted that funds from the Miramar project have been set aside to add low-cost overnight stays and restroom facilities at Halama.
- Occupancy Rates: Staff reported that high-season occupancy for tents and cabins at Halama and Kachuma is near 100%, with first-come, first-served slots also being utilized.
Agenda Item 8: Functional Group Q&A – General Government and Support
- General Services:
- Purchasing Manager: A request for permanent funding for a Purchasing Manager position was discussed. The position is currently filled by an interim staff member (Senior Buyer), and the request covers the salary delta to the manager level.
- Sustainability Action Plan: A request for staffing to develop a sustainability action plan was discussed. Staff estimated the cost for a consultant to prepare the report would range between $100,000 and $150,000.
- LED Lighting: A $130,000 one-time allocation for replacing exterior lighting with LED fixtures was discussed. This was previously approved by the Debt Advisory Committee and is being presented for funding from the contingency fund.
- Veteran Services: Staff provided an update on Veteran Service Officers. One officer is located in Santa Maria, and two representatives are in Santa Barbara and Lompoc (currently vacant, with recruitment underway). An extra help employee is working out of the Santa Maria office using one-time subvention funds. The Chair noted that the county’s investment in these positions has resulted in significant increases in benefits for local veterans.
Agenda Item 9: 211 Program Funding
- Funding Shortfall: A request for $53,700 in one-time funding for the 211 program was discussed. Staff reported that while funding was secured from the City of Santa Barbara ($16,000) and Carpinteria ($1,200), the City of Santa Maria will not participate this year. This leaves a shortfall of $53,700 against the proposed operating budget.
- Program Continuity: Staff indicated that without this funding, it would be difficult to maintain the call center and program oversight, though the database could continue. The Community Action Commission (CAC) would take over online services, but the full program would not continue.
- Database Cleanup: The previously approved $30,000 for database cleanup is underway and expected to be completed in four months. Staff noted that advertising and outreach will begin after the database is cleaned and the program is transferred to CAC.
- City Contributions: There was a discrepancy noted regarding the City of Santa Barbara’s contribution, with staff citing $16,000 and a Supervisor citing $20,000. Staff agreed to verify the correct amount.
Agenda Item 10: Public Comment – Budget Process and Specific Programs
- Budget Process and Transparency: Several speakers commented on the budget process. One speaker from the Santa Barbara County Taxpayers Association suggested that budget hearings should focus more on issues relevant to the public, such as maintenance and revenue neutrality. Another speaker criticized the lack of detailed analysis on performance measures, debt, deficits, and employment costs, noting that employment costs have risen to nearly 59% of the budget.
- Mental Health (ADMH): Speakers from NAMI and CLU/C3H advocated for increased funding for ADMHS to build behavioral health capacity, expand crisis services, and prevent tragedies like the Isla Vista incident. One speaker expressed concern about the withdrawal of KDA funds, though the CEO later clarified that KDA settlement costs are being supported by nearly $1 million in Medi-Cal and expanded funding.
- Homelessness and Housing:
- Casa Esperanza: A representative stated that the organization provides shelter and meals and needs adequate funding for 24/7 services.
- Reentry: A representative from the Reentry Steering Committee advocated for a Business Systems Analyst position in the Sheriff’s Department to access jail data for program design and recidivism tracking.
- General Homelessness: Multiple speakers, including volunteers and individuals experiencing homelessness, urged the Board to maintain or increase funding for emergency shelter beds, board and care, and rapid rehousing. One speaker argued that non-alcoholic/drug-addicted homeless individuals are often overlooked in favor of those with substance abuse issues. Another speaker requested that shelter funding become ongoing rather than one-time.
- Agriculture and Planning:
- Ag Advisory Committee: A representative from the Cattlemen’s Association requested a paradigm shift in how agricultural land use modifications are processed, suggesting a more direct route to the Planning Commission to improve efficiency.
- Greenhouse Gas CEQA: A speaker urged the Board to proceed with a Greenhouse Gas CEQA Thresholds Ordinance to provide uniformity in project approvals and reduce emissions.
- Parks Division: A speaker requested the removal of the Parks Division from Community Services to restore its independent status, noting that the general fund contribution has remained static for ten years despite increased visitation.
- Environmental Planning: A representative from the Environmental Defense Center highlighted the importance of integrating the housing element with the sustainable community strategy, updating the energy and climate action plan, and completing community plan updates for the Gaviota Coast, Eastern Goleta Valley, and Ivy Master Plan, emphasizing coordination with the California Coastal Commission.
- Libraries and Parks: A speaker representing parks and libraries requested funding for the IT position to manage online reservations and tourism, and urged the Board to maintain library funding.
Agenda Item 11: Updates Since April Workshops
- Discussion: Staff presented four categories of updates resulting from discussions since the April workshops.
- A1 (Recommended Expansions): The ADMHS expansion now includes KDA. The Planning and Development long-range planning schedule was modified and included in Budget Inquiry Form 1.
- A3 (Departmental General Fund Contributions and FTE Expansions):
- CEO/Clerk of the Board: $9,000 for a database to assist boards/commissions (ongoing); $25,000 for digitizing/archiving legislative records with UCSB (one-time); $40,000 for a part-time public information officer (one-time).
- Public Health: A position to supervise volunteers was withdrawn as it was funded by departmental funds.
- Parks: $160,000 for four cabins at Lake Cachuma (one-time).
- General Services: $130,500 for energy-efficient utility improvements/LED lights (one-time).
- General County Programs: $53,700 for the 211 program (one-time).
- Service Level Reduction Form: A correction was made to the County Council reduction amount, changing it from $130,000 to $230,000.
- Budget Book Correction: Page D194, Agriculture Commissioner paragraph 5, was corrected regarding UC Cooperative Extension funding from $135,000 to $153,000.
- Questions/Clarifications:
- Staff confirmed that the available funding amounts ($180,000 ongoing and $1.1 million one-time) remained unchanged; the items listed were additional requests arising since the April workshops.
- Regarding property tax revenue, staff noted that the Assessor’s roll is not yet closed (approximately two weeks of work remaining). Current working estimates suggest revenue is above the 3.5% estimate, but final numbers depend on exemptions and adjustments. Staff stated that any changes in revenue projections would be presented to the Board at the First Quarter Review.
- Decision: No formal motion or vote was recorded in this section. The Board acknowledged the updates.
Agenda Item 12: Public Comment – Updates Since April
- Comment: Andy Caldwell (CoLab) addressed the Board regarding data in the County Statistical Profile. He cited disparities in poverty levels between different areas of the county and noted that over 30 years, county population grew 43%, cost of government per capita grew 343%, and the county budget grew 537%, while average household income grew 24%. He stated that 60% of revenue now goes to salaries, benefits, and pensions, and urged the Board to consider these long-term trends in the budget process.
Agenda Item 13: Non-County Agency Requests
- Discussion: Staff outlined requests from outside agencies. The CEO recommended one-time funds for:
- Courthouse Legacy Foundation: $40,000 to leverage private funding for the mural room.
- Santa Barbara Regional Chamber of Commerce: $150,000 for the Economic Vitality Project.
- Other requests were deferred to hearings.
- Public Comment:
- Sue Gray (City of Santa Barbara): Requested a 10% increase ($2,500) for the Rental Housing Mediation Task Force Program, which serves unincorporated area residents. She also reported that the City Council agreed to provide $20,000 for the 2-1-1 program and an increase in the city’s share for the C3H program.
- Bill Mahan (Courthouse Legacy Foundation): Reported that the foundation is close to its $600,000 fundraising goal for the mural room restoration. He requested the Board approve the $40,000 grant, noting it is a required partner for a pending grant from the Hind Foundation. He outlined a timeline for restoration work beginning in January.
- Mary Bianchi (UC Cooperative Extension): Requested an increase in the 2014-15 contract to support increased costs of business. She highlighted the extension’s role in providing evidence-based information, supporting advisory committees, and conducting outreach on water conservation and Asian citrus psyllid.
- Melissa Moreno (Santa Barbara City College/Small Business Development Center): Requested continued funding for the Small Business Development Center (SBDC), which is housed at the Sheinfeld Center. She emphasized the center’s role in economic development, job creation, and retention, and its partnership with the North County Alliance.
- Bruce Stensley (Economic Development Collaborative): Requested $26,500 in continuing funding. He explained that this amount helps match a $318,000 U.S. Small Business Administration investment. He noted that without county support, the program risks losing the full federal investment and serving fewer businesses. He stated that the program serves over 140 firms in Santa Barbara County.
- Melora Vadney (Legal Aid Foundation): Requested $30,806 in supplemental funding for Legal Resource Centers (self-help centers) in Santa Barbara, Santa Maria, and Lompoc. She noted that 80% of divorce petitions involve unrepresented litigants, and the centers help navigate the court system. She stated the county has a shortfall this year and previously had to close the Lompoc center due to lack of funds.
- Elizabeth Diaz (Legal Aid Family Violence Program): Requested $3,786 for travel expenses to allow a Santa Barbara-based attorney to travel to Santa Maria for critical domestic violence cases, as the local attorney position was lost.
- Andy Caldwell (CoLab): Questioned how much of the Economic Vitality Project funding would benefit the North County and unincorporated areas. He argued that the county should prioritize fixing its own permitting processes, which he noted are only meeting 50% of processing time targets, before funding external economic development projects.
- Unidentified Speaker (Chamber of Commerce/Economic Development): Responded to Caldwell, stating the project aims to bring together economic development practitioners county-wide to address issues like permitting and business growth, not just tourism. He noted that the Santa Maria Chamber has not yet decided to participate in the oversight role but that the initiative is intended to be inclusive of both incorporated and unincorporated areas.
Agenda Item 14: Budget in Brief (General County Programs and Successor Agency)
- Discussion: Staff presented an overview of the budget, including revenues, expenditures, five-year forecasts, and funding for CEO recommended restorations and expansions.
- Total Budget: All funds operating revenue is $905 million (6.2% growth). Expenditures are $903 million (4.8% growth). Total recommended staffing is 4,119 FTEs.
- Revenue Sources:
- Taxes: $261 million (primarily discretionary funds).
- Intergovernmental: $342 million (including Prop 172, realignment, MHSA).
- General Fund Revenue: $354 million.
- Discretionary General Fund Revenue: $217.6 million. Property taxes are the largest component ($179.7 million).
- Staff noted that a 1% increase in property tax would equate to approximately $1.6 million in revenue.
- TOT (Toll Road) measure, if passed, would take effect January 1, 2015, with an estimated additional revenue of $1.7–$1.8 million.
- Expenditures:
- Salaries and Benefits: Increased from $504 million to $525 million. Approximately $12 million of this increase is related to expanded programs in Mental Health and Social Services due to the Affordable Care Act (ACA).
- Total Expenditure Growth: $41 million (4.6%).
- Five-Year Forecast:
- Discretionary revenues are projected to grow from $217 million (2014-15) to $243 million (2018-19).
- General fund contributions are projected to grow from $217 million to $231 million.
- The forecast shows a positive balance, growing from $900,000 in 2014-15 to $12.1 million in 2018-19. Staff noted this is the first year since 2009 where revenues are projected to exceed expenditures.
- Fund Balances and Contingencies:
- Roads: $500,000 allocated by policy. Staff noted that $12 million per year is needed to maintain roads at a PCI of 60, and the county is currently short by approximately $8 million.
- Litigation: Balance of $1.2 million; $523,000 allocated, leaving a balance of ~$700,000.
- Salary and Benefits Emerging Issues: $5.5 million identified. $3.3 million is being adjusted out to fund one-time program restorations.
- Deferred Maintenance: $750,000 expected; $2.3 million added by policy; $2.5 million allocated, leaving a projected balance of $551,000.
- New Jail Operations Fund: Balance of $3.3 million; $4.6 million added in 2014-15, targeting a balance of $7.9 million.
- Contingencies: $2 million planned; $500,000 added. $1 million identified for mental health; $1.1 million for FEMA audit settlement.
- Strategic Reserve: $24.5 million; $1 million added, ending at $25.5 million.
- Updates Since Budget Book:
- Roads: Additional $1.1 million allocated for CEO recommended expansions. Total allocation $1.6 million.
- Salaries and Benefits: $800,000 moved from one-time funding to contingency to fund Sheriff’s deferred maintenance.
- General Services/Parks: $700,000 added for preventative maintenance teams.
- Mental Health: $1 million for inpatient services accelerated; $1.6 million necessary to close out the year.
- Strategic Reserve: $1 million added.
- Fiscal Issues:
- Retirement: Funding is stabilizing. The actuarial report indicates contributions have peaked and are projected to decrease by about 1% per year over the next 17 years.
- Affordable Care Act: Enrollment exceeded expectations. Social Services saw increased revenues and staffing. Mental Health will see increased Medi-Cal eligibility and revenue, allowing for program growth (~19 staff). Public Health faces mixed impacts due to lost realignment revenue but increased Medi-Cal services.
- Mental Health Service Transformation: Department completed a comprehensive evaluation, restructured leadership, and obtained two grants totaling ~$11 million over three years.
- Northern Branch Jail: AB 900 update indicates ~$1.8 million in additional transitional costs. Final 1022 numbers are pending.
- Workforce Planning: Approximately 24% of the combined general and safety workforce is likely to retire in the next 3–5 years.
- Capital Expenditures: $54.7 million of $55.3 million identified for 2014-15. Major projects include Northern Branch Jail (AB 900), STAR Complex (1022), Lake Cachuma enhancements, and Lower Mission Creek flood control.
- Questions/Clarifications:
- Staff confirmed that the $3.3 million from Salary and Benefits Emerging Issues is being used to fund one-time program restorations.
- Staff agreed to provide a breakdown of RDA property tax contributions by redevelopment area.
- Staff agreed to provide an updated retirement projection chart extending three years further to show the flattening/decreasing trend.
- Staff clarified that the jail funding plan will be updated with final 1022 numbers and presented to the Board.
- Decision: No formal motion or vote was recorded in this section. The Board reviewed the budget overview and fiscal issues.
Agenda Item 15: Closing Comments and Recommended Actions for Fiscal Year 2014-15 Budget
- Discussion: Staff presented the outlook for the fiscal year, noting that structural issues are recovering but challenges remain in specific departments. Staff outlined recommended actions, including:
- Consideration of amendments and adoption of the FY 2014-15 recommended budget, including CEO-recommended expansions and restorations.
- Approval of final budget adjustments, including Board adjustments (Attachment E).
- Delegation of authority to the County Executive Officer to execute renewals of single-year grants and contracts previously approved by the Board, provided there is no significant scope change.
- Approval of cost changes up to 10% for specific contracts without returning to the Board.
- Adoption of the resolution entitled "In The Matter Of Adopting The Budget For Fiscal Year 2014-15."
- Receipt of maintenance funding options and provision of direction to staff.
- Approval of FY 2014-15 work objectives for the CEO office to coordinate an interdepartmental countywide Isla Vista initiative within existing budgeted resources.
- Adoption of a separate resolution for the County of Santa Barbara as the successor agency to the former County of Santa Barbara Redevelopment Agency, entitled "In the Matter of Adopting the Budget for the Fiscal Year 14-15." Staff noted this budget is approximately $1.7 million, primarily for debt service, with approximately $250,000 for administrative costs. Staff indicated that hearings for the successor agency were initially listed for June 9th but suggested adjusting the language to "June 9th and/or 11th."
- Public Comment:
- A member of the public raised concerns regarding pension return assumptions, suggesting a 5.5% rate rather than 7.5%, and noted the lack of discussion regarding potential lawsuits related to the Isla Vista incident, the Affordable Care Act’s impact on immigrant workers, and the oil measure.
- Another member of the public suggested transitioning from a defined benefit pension program to a defined contribution plan to eliminate underfunding, citing the current $818 million pension debt.
- A third member of the public discussed the potential cost-effectiveness of borrowing for maintenance versus deferring it, asking how the proposed funding options would prevent further debt accumulation.
- A fourth member of the public asked for clarification on when deferred maintenance crosses the threshold into a capital project eligible for debt financing, noting that some infrastructure upgrades are currently categorized as capital projects.
- Staff Response: Staff clarified that the successor agency budget is kept separate to avoid commingling of funds and maintain limited liability. Staff explained that pension and OPEB debts are being amortized over 15 years, with OPEB contributions increasing gradually. Staff noted that the County does not use debt for ongoing operating expenses, distinguishing between operating maintenance and capital projects. Staff indicated that the distinction between capital and expense items is often based on cost (e.g., over $100,000) and whether the item extends the useful life of an asset.
- Decision/Vote: No motion was made or vote taken in this section of the transcript. The items were presented as recommended actions for future deliberation.
Agenda Item 16: Maintenance Funding Options
- Discussion: Staff presented data on the deferred maintenance backlog, totaling approximately $198 million, broken down as follows:
- Roads: $114 million (pavement condition index of 60).
- Parks: $45.1 million (condition rating of 17.5%, considered poor).
- Buildings: $38.5 million (Facility Condition Index of 5.5, considered fair).
- Staff noted that 68% of deferred maintenance projects are under $5,000, while nine projects over $1 million total $36.5 million.
- Staff outlined a minimum annual renewal funding need of $17 million (2% of current replacement value) to maintain current condition indexes, rising to $21.2 million over ten years with inflation.
- Staff presented four funding scenarios based on percentages of unallocated discretionary general fund growth (10%, 15%, 20%, and 25%) combined with one-time allocations.
- 10% Option: Would reach the $21.2 million target in 12 years.
- 15% Option: Would reach the target in 10 years.
- 20% and 25% Options: Would reach the target sooner, with excess funds potentially applied to the deferred maintenance backlog.
- Staff proposed a seven-point strategy for funding maintenance, including:
- 1. Dedicating an ongoing stream of unallocated discretionary general fund revenue. 2. Allocating available one-time discretionary general fund (e.g., year-end savings). 3. Adjusting service fees based on increased maintenance costs. 4. Increasing other fund revenues for maintenance by charging non-general fund departments. 5. Continuing to seek grant funding and advocate for state/federal dollars. 6. Monitoring and adjusting as needed. 7. Using the dedicated stream to support debt financing for large projects if appropriate.
- Staff clarified that the proposed funding is for renewal maintenance to prevent further deterioration, distinct from the capital costs required to address the existing deferred maintenance backlog.
- Staff noted that the Jorgensen report (Phase 2) is expected in August/September, which will provide further direction on prioritizing maintenance needs.
- Public Comment:
- A member of the public asked for clarification on the distinction between renewal funding and deferred maintenance, and whether the proposed plan would eliminate deferred maintenance or address both.
- A member of the public asked if the Debt Advisory Committee (DAC) had considered debt financing options for maintenance, given current low interest rates.
- A member of the public questioned the accuracy of the deferred maintenance figures for roads, specifically regarding the exclusion of bridges and culverts from the primary pavement condition index calculation.
- Staff Response:
- Staff confirmed that the proposed plan addresses both renewal funding and the deferred maintenance backlog, with the specific allocation to be determined after the Jorgensen report is reviewed.
- Staff stated that the DAC has not yet reviewed specific funding options for maintenance, but the budget adoption letter notes that the dedicated revenue stream could support debt for large projects.
- Staff explained that bridges are largely funded by federal highway bridge program funds and are tracked separately from the local pavement condition index. Culverts are addressed as they fail or through video inspections, and flood control funds are not used for road culverts as they serve different functions.
- Staff reiterated that the County’s policy is to use pay-as-you-go (PAYGO) for operating expenses and debt only for capital infrastructure.
- Decision/Vote: No motion was made or vote taken in this section of the transcript. Staff recommended that the Board receive the maintenance funding options and provide direction to staff, with further discussion scheduled for a subsequent meeting (Wednesday) and a follow-up report expected in August/September.
Agenda Item 17: Deferred Maintenance and Budget Policy / Adjournment
- Discussion: Supervisor Wolf expressed the view that addressing deferred maintenance should be integrated into the upcoming budget process rather than deferred until later in the year, arguing that maintenance and budgeting are interconnected. Supervisor Vadnais noted the results of the recent election (51.9% to 48.5%) and stated an inclination to adopt a formula that provides the board with flexibility while addressing maintenance needs. Supervisor Wolf requested that the board review existing budget policies regarding deferred maintenance (noting a standard allocation of $500,000) and requested a list of these policies to ensure any changes are made with full knowledge of current procedures.
- Motion: A motion to adjourn the meeting was moved and seconded. The board agreed to reconvene on Wednesday at 9:00 AM for further deliberations on the maintenance and budget issues.
- Decision: The motion to adjourn passed.