Meeting Summary
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At a glance
Budget Overview and Recommended Budget Presentation
- The recommended 2017-18 balanced budget features $1.79 billion in operating revenues and $1.73 billion in expenditures, requiring a reduction of approximately 187.7 FTEs.
- Key funding priorities include the Northern Branch Jail, Fire District support, deferred maintenance, and labor agreement commitments.
- Staff identified financial pressures from rising salary, pension, and state/federal program costs, with over $1 billion in unfunded pension liabilities.
- The strategic reserve stands at 7.4% of operating reserves, falling below the 8% target due to suspended additions to the fund.
Recommended Budget Process Revisions and Financial Overview
- Revisions include reclassifying CalFresh funding from one-time to ongoing and reducing contingencies from $2 million to $1.5 million.
- The County Assessor reported a 5.65% increase in assessed values to $75 billion, with the final roll closing that week.
- Staff advised against adding ongoing funds due to anticipated cost increases, suggesting one-time funding as a more prudent option.
Health and Human Services Functional Group
- The group includes Behavioral Wellness, Child Support, Public Health, and Social Services, with 105 staff impacted by recent reductions.
- State funding changes include a $1.8 million restoration of CalWORKs and an increased CalFresh allocation reduction to 10.6%.
- Recommendations were made to fund two child welfare social workers and two foster care eligibility workers with ongoing funds.
- Public commenters advocated for restoring social service positions and funding for warming centers and mental health programs.
Public Safety Functional Group (Introduction)
- The functional group comprises the Court, Special Services, District Attorney, Fire, Probation, Public Defender, and Sheriff.
- This group accounts for approximately 29% of the total county operating budget.
Sheriff’s Office Budget Presentation and Public Comment
- The Sheriff’s Office reported that its capacity to absorb further cuts is exhausted, with a proposed $5.5 million budget reduction.
- Proposed service level reductions include closing the Santa Maria Branch Jail, terminating the Lompoc jail contract, and reducing custody deputies.
- Operational updates highlighted progress on radio coverage, reduced overtime usage, and ongoing jail renovation plans.
- Public commenters supported restoring funding for the Isla Vista Foot Patrol and court security, citing public safety needs and legal mandates.
Community Resources and Public Facilities Group
- The group includes the Ag Commissioner, Community Services, Planning and Development, and Public Works, representing 16% of the county budget.
- Public commenters requested the inclusion of the Union Valley Parkway extension in long-range planning and urged the Planning Department to act as an economic development body.
Library Funding
- Speakers requested maintenance of current library funding levels and a one-time fee to bridge a projected $218,000 increase in administrative costs.
- Concerns were raised regarding the administrative structure where the Santa Barbara City Library manages county branches.
- Supervisors discussed allocating one-time funds ranging from $200,000 to $1 million to prevent library closures or service cuts.
Budget Projections and Energy Spending
- A representative criticized the county’s pension return projections and spending on energy-related projects like Community Choice Aggregation.
- Supervisor Williams defended energy spending as a deliberate public policy choice influencing broader environmental standards.
- The board discussed the balance between fiscal priorities and environmental commitments without adopting a formal motion.
Planning and Development / UDP Determination
- Staff indicated that the Urban Design Plan determination for the Union Valley Parkway project was ongoing and expected to conclude soon.
- The project could be slotted into the budget if resources allowed following the determination process.
Closed Session
- The board decided not to enter closed session at that time, scheduling it for Wednesday instead.
- The board took a 45-minute lunch break following this decision.
Functional Group Overview – Support Services
- The group comprises Audit/Controller, Clerk/Recorder/Assessor, Human Resources, General Services, and Treasurer/Tax Collector, accounting for 16% of county expenses.
- Public commenters requested sharing PEG cable fees with Santa Maria Community Television and charging school districts full cost recovery for Assessor and Tax Collector services.
- The Chair proposed a $9,000 allocation for the former Supervisor Farr’s office in Isla Vista to support community centers.
Functional Group Overview – Policy and Executive
- The group includes the Board of Supervisors, CEO’s Office, and County Council, accounting for 4% of county expenses.
- Public commenters criticized the Board’s increased general fund contributions and requested continued support for the Economic Vitality Team.
- Supervisors debated the effectiveness of direct funding versus removing internal barriers to business development and strategic investment.
Budget Summary and Wrap-Up
- Staff highlighted a potential FY 18-19 budget gap in excess of $20 million, driven by jail costs, mental health expenses, and salary increases.
- The Assessor’s Office updated the Assessed Value growth projection from 5.75% to 5.65% due to pending appraisals of oil and gas properties.
- Staff recommended using a conservative 5.5% AV growth rate for budget calculations, which was agreed upon by the CEO’s and Assessor’s offices.
Budget Deliberations and Property Tax Assumptions
- Staff presented a revised chart reflecting a 5.5% property tax growth assumption, resulting in $1,462,000 in additional general fund revenues.
- The CEO stated they would proceed with previously presented budget restorations based on the day’s discussions.
- The board decided to continue deliberation on this item at a meeting scheduled for Wednesday at 9:00 AM.
Full summary
Agenda Item: Public Comment (Matters Not on Agenda)
- Discussion: Two members of the public addressed the Board regarding budget priorities. One speaker advocated for the continuation of warming centers and the jail ride program, citing life-saving benefits for indigent individuals and the low cost relative to other programs. Another speaker, representing CoLab, urged the Board to develop a five-year financial plan addressing pension obligations and cost recovery rates, questioning the sustainability of county pensions compared to private sector limits and requesting that a JAWS chart be included in the budget book.
- Action: No motions were made or votes taken.
Agenda Item: Budget Overview and Recommended Budget Presentation
- Discussion: The CEO’s office presented the recommended 2017-18 balanced budget, noting operating revenues of $1.79 billion and operating expenditures of $1.73 billion. The budget requires a reduction of approximately 187.7 Full-Time Equivalents (FTEs). Key priorities included continued funding for the Northern Branch Jail (slated to open in 2019), increased funding for the Fire District, deferred maintenance, and labor agreement commitments. The strategic reserve level was reported at approximately 7.4% of operating reserves, below the typical 8% target, due to a Board decision to suspend additions to the fund.
- Financial Challenges and Strategy: Staff identified drivers of financial pressure, including increased salary/wage costs, pension costs, higher state/federal program costs, and shortfalls in public safety and mental health. The budget shifts resources toward Behavioral Wellness and Social Services, including approximately $30 million in reductions to close the budget gap, with 68% of reductions in non-general fund departments. Unfunded liabilities were detailed at over $1 billion for pensions and $113 million for retiree health, with projected annual pension cost increases of approximately $8 million over the next four years.
- Capital and Maintenance: Staff discussed the 18% maintenance funding policy, noting baseline funding of $2.3 million. Capital needs addressed included the Northern Branch Jail, Fire Station 41, and road maintenance. Staff reported a revision in assessed valuation growth from 4.5% to 5.75%, resulting in an estimated net increase of $1.5 million in available ongoing general fund resources after accounting for Fire District allocations and the 18% maintenance policy.
- Board Inquiries:
- A Supervisor questioned the historical allocation percentages for the 18% maintenance funding; Staff agreed to revisit the allocation policy with the Board in December.
- Supervisors discussed the cost to maintain the Pavement Condition Index (PCI) at current levels (estimated at $13 million) and the growth in deferred maintenance (approx. $30 million increase last year). One Supervisor expressed concern that current maintenance funding levels are insufficient to address known deferred maintenance items.
- A Supervisor inquired about the strategic reserve shortfall relative to the 8% policy target; Staff confirmed the reserve is at 7.4%, a shortfall of approximately $2.4 million.
- A Supervisor expressed disappointment regarding the retention of $500,000 in the deferred maintenance fund as a mid-year contingency rather than allocating it to known projects. Staff explained this practice was established by previous Boards to address unexpected emergencies, and the Chair endorsed the strategy of holding contingency funds for unexpected issues.
- A Supervisor requested an update on the Fire District tax shift progress; Staff indicated the increase would be handled in closing actions and offered to provide further details via a Board Information Form (BIF).
- Action: No motions were made or votes taken. The Board is scheduled to deliberate and potentially amend the budget in subsequent sessions.
Agenda Item: Recommended Budget Process Revisions and Financial Overview
- Discussion: The Budget Director presented revisions to the recommended budget process, detailing changes to general fund property taxes, ongoing resources, and one-time funding. Adjustments included a reclassification of CalFresh funding from one-time to ongoing, a reduction in contingencies from $2 million to $1.5 million, and allocations for IHSS impacts, child welfare social workers, foster care eligibility workers, Coastal Commission compliance, court security, and the Isla Vista foot patrol. Total available sources were outlined at approximately $4 million, with remaining sources of approximately $813,000 for board allocation.
- Assessor Update: The County Assessor reported a 5.65% increase in assessed values to $75 billion, up from $71 billion the previous year. The Assessor noted that the final roll would close on Wednesday of that week, with the final number to be delivered to the auditor.
- Board Inquiries: Supervisors inquired about the timing of the budget process relative to the assessor’s roll closure and the potential for adding ongoing positions. The Budget Director advised against adding ongoing funds due to anticipated cost increases, suggesting one-time funding as a more prudent option. The CEO noted that the assessor’s roll closure date is not fixed by statute and depends on staffing and case complexity.
- Action: No motions were made or votes taken.
Agenda Item: Health and Human Services Functional Group
- Discussion: The Budget Director introduced the Health and Human Services functional group, comprising Behavioral Wellness, Child Support Services, First Five Commission, Public Health, and Social Services. The Senior Director of Social Services presented updates on departmental impacts since the April budget workshops, including staffing reductions resulting in 105 staff impacted (71 layoffs, 28 demotions, and 6 work location changes). Changes in state funding included a $1.8 million restoration of CalWORKs funding and an increased CalFresh allocation reduction from 5.6% to 10.6%. Adjustments to In-Home Supportive Services (IHSS) cost-sharing ratios and Maintenance of Effort (MOE) requirements were noted, with an estimated $625,000 increase in MOE costs for fiscal year 2018-19. Recommendations were made to fund two child welfare social workers and two foster care eligibility workers with ongoing funds.
- Public Comment: Four members of the public addressed the board. A representative of the League of Women Voters supported restored funding for warming centers, shelters, and mental health programs, and advocated for restoring social service worker positions. A former chair of the Child Welfare Safety Net Task Force urged the board to restore funds for foster care eligibility workers, child welfare social workers, and juvenile probation officers, citing caseload increases and safety concerns. A representative of CoLab argued that social services cuts were due to economic policies and pension costs, and criticized the board’s environmental and energy policies for reducing revenue. A regional director for SCIU 721 supported the restoration of social services positions, emphasizing the importance of "human infrastructure" and the impact on constituents.
- Board Inquiries: Supervisors discussed the impact of state funding caps, the efficiency of social services spending, and the economic implications of high public assistance rates. Some supervisors expressed concern over the reduction in social workers and the need to maintain safety nets, while others emphasized the need for fiscal balance and economic diversification. The Senior Director of Social Services confirmed that the department was working with HR to assist displaced staff in finding other county positions.
- Action: No motions were made or votes taken.
Agenda Item: Public Safety Functional Group (Introduction)
- Discussion: The Budget Director introduced the Public Safety functional group, which includes the Court, Special Services, District Attorney, Fire, Probation, Public Defender, and Sheriff. The group accounts for approximately 29% of the total county operating budget.
- Action: No motions were made or votes taken.
Agenda Item: Sheriff’s Office Budget Presentation and Public Comment
- Discussion: A representative from the Sheriff’s Office presented the department’s budget status, noting that the office’s capacity to absorb further cuts is exhausted. The presentation highlighted the loss of 65 positions between 2008 and 2013, including the elimination of the Montecito Community Resource Deputy, tactical training officers, and the research and planning unit. It was stated that all patrol stations except Isla Vista are at minimum staffing levels. The proposed budget includes a $5.5 million cut to the Sheriff’s Office.
- Operational Updates:
- Radio Coverage: Progress is being made with General Services to address coverage issues, including a repeater in Buellton and plans for sites on San Antonio Peak, Santa Cruz Island, and Valley Peak.
- Overtime: Overtime usage has been reduced in the first quarter through measures such as detectives working patrol assignments and schedule adjustments. The office requested funding for 10 additional deputy lines to further reduce overtime.
- Jail Operations: Renovation plans for the main jail are underway to address deferred maintenance and grand jury recommendations. A prioritized list of projects is expected by October.
- Proposed Service Level Reductions (SLRs):
- 1. Custody Operations: Proposed closures of the Santa Maria Branch Jail and termination of the Lompoc jail contract, along with a reduction of 10 custody deputies. This would result in extended transport times for prisoners to Santa Barbara until the Northern Branch Jail opens in spring 2019. Options presented to mitigate this included deferring the reduction of 10 custody deputies until January 1, 2018, restoring those positions, or providing bridge funding estimated at $1.6 million for 24/7 coverage or $714,000 for 12-hour coverage. 2. Law Enforcement Operations: The CEO’s recommendation to fund the Isla Vista foot patrol for the first three quarters was noted. Proposed cuts to aviation operations would reduce air crew availability during fire season and impact compliance with the Fire Department MOU. Cuts to narcotics and gang units represent a 50% reduction in investigative capacity in unincorporated areas and contract cities. 3. Community Outreach and Prevention: The DARE program, which served 1,690 students last year, is likely to be curtailed by at least half. School resource deputies may be withdrawn if alternative funding is not found, potentially increasing patrol deputy workload. 4. Court Security: State funding has historically been insufficient, with the county subsidizing costs by an average of $600,000–$750,000 annually. The county’s overage was $1.2 million in FY 2014-15 and is projected to be higher this year due to significant trials. Proposed changes include replacing dedicated bailiffs in each civil courtroom with a roving cadre of bailiffs.
- Public Comment: Court Security
- Darryl Parker (Court Executive Officer, Superior Court) expressed support for the CEO’s recommendation to restore $300,000 on top of a proposed $500,000 restoration for court security. He opposed the characterization of this funding as "optional," citing the Trial Court Realignment Act mandate to maintain service levels from 2010-11, and proposed convening a task force with the Sheriff’s Office to find efficiencies.
- Supervisor Adam questioned the Sheriff’s discretion over how allocated funds are expended, noting that the Sheriff controls the budget once established.
- County Counsel clarified that under the County Budget Act, the Board allocates funds to special officers (Sheriff and DA), who then control the deployment of personnel, distinguishing this from the Superior Court Security Act staffing levels.
- The Sheriff’s representative acknowledged control over the budget but committed to using specific restorations for their intended purposes.
- Supervisor Williams asked about the proportion of family law versus non-family law courts.
- Darryl Parker stated that civil courts hear a mix of family law, civil, and probate matters, and that any courtroom could handle any type of case.
- Judge Patricia Kelly (Presiding Judge) confirmed that civil calendars in both north and south departments incorporate family law, small claims, and unlawful detainers, and often include transferred criminal cases.
- Supervisor Williams noted the difficulty of balancing safety staffing across patrol, jail, and courts, mentioning a $9 million fund established for the new jail that could be used for pre-hiring custody deputies. He supported the CEO’s proposed restorations as a balanced approach.
- Darryl Parker reiterated the court’s position that the code mandates maintaining 2010-11 service levels and expressed a difference of opinion with County Counsel regarding the interpretation of the code.
- Supervisor Wolf expressed support for moving forward with the CEO’s recommendation, noting the responsibility to maintain stable funding levels and the anticipated collaboration between the Sheriff’s Office and the Court.
- Public Comment: Isla Vista Foot Patrol
- Spencer Brant (Resident/Student) spoke in favor of the $475,000 recommendation for the Isla Vista Foot Patrol, citing public safety priorities and the need to maintain basic government functions.
- Supervisor Adam challenged the speaker to provide suggestions for replacing lost revenue, referencing a previous hearing on short-term rentals.
- Supervisor Williams defended the speaker, noting their involvement in raising revenue for Isla Vista services.
- Spencer Brant (Isla Vista Community Services District Director) spoke in support of the CEO’s recommendation to restore $475,000 to the Isla Vista Foot Patrol, highlighting improvements in public safety, including reduced arrests and citations during Deltopia. He noted that the Community Services District is negotiating a $200,000 grant with the university and aims to develop a sustainable public safety plan.
- Supervisor Wolf defended the board’s revenue generation efforts, citing new hotels and home construction in their district.
- Ethan Bertrand (Board President, Isla Vista Community Services District) spoke on behalf of the CSD board, supporting the full restoration of funding for the Isla Vista Foot Patrol, citing a recent violent assault in the area and the importance of 911 response. He noted that the foot patrol is one of the first community policing models in the U.S. and that staffing has decreased while population has increased.
- Kirsten Deschler (Director of Government Relations, UC Santa Barbara) expressed support for the CEO’s recommendation, noting that the university has spent over $2 million in direct funding to Isla Vista since May 2014, in addition to funding seven police officers. She highlighted the 2010 cooperative agreement guaranteeing minimum staffing levels and the university’s commitment to partnership.
- Andy Caldwell (Colab) criticized the board’s fiscal priorities, arguing that cuts to public safety are disproportionate to spending on other areas such as community choice aggregation and the Human Services Commission, and cited potential revenue losses from short-term rentals and PCEC.
- Joe Armendariz (Santa Barbara County Taxpayers Association) spoke in support of restoring and expanding every dollar requested by the Sheriff, arguing that the county’s economic strategy is problematic and that the disparity between the north and south counties needs to be addressed through ethical resource development.
- Supervisor Remarks:
- Supervisor Lavagnino clarified that while staffing levels have decreased, the Sheriff’s Department’s budget allocation has increased year over year due to rising salaries and pension costs, attributing the trend of increased allocations with decreased service levels to the pension crisis.
- Supervisor Williams noted that the Sheriff’s budget increased by $5.9 million from last year ($132.5 million to $138.5 million), attributing challenges to the revision of the projected rate of return from 7.25% to 7.0%. He expressed support for the CEO’s revised recommendations.
- Probation Department Discussion:
- Supervisor Wolf raised a question regarding the restoration of two Deputy Probation Officer (DPO) positions for juvenile field supervision, citing data from the Juvenile Justice Coordinating Council showing a significant increase in juvenile offenses in 2015.
- The Probation Department representative confirmed that the reduction of two DPOs has increased caseloads to 38-40 high-risk cases per officer, and that restoring the two positions would reduce caseloads to 30-32, allowing for better preventive case management and field visits.
- Action: No motions were made or votes taken.
Agenda Item: Community Resources and Public Facilities Group
- Discussion: The next functional group, comprising the Ag Commissioner, Community Services, Planning and Development, and Public Works, was introduced. This group represents 16% of the county budget, with Public Works at 10%, Community Services at 3%, Planning and Development at 2%, and Ag Commissioner/Waste Measures at 1%. No prepared presentations were given, but departments were available to speak if requested.
- Public Comment: The chair announced three speakers for this section: Lori Temura and Joe Armendariz from Santa Maria, and Judith Dale from Santa Barbara.
- Action: No motions were made or votes taken.
Agenda Item: Public Comment – Planning and Development / Circulation Element Update
- Discussion: A resident requested that the Union Valley Parkway extension (connecting Santa Maria Way to Union Valley Parkway) be included in the long-range planning budget, citing traffic congestion during the Santa Maria Rodeo and the need for a Caltrans-approved connection to alleviate law enforcement traffic control duties. A representative of the Taxpayers Association stated that the Planning and Development Department should function as the county’s economic development department and urged the board to remove barriers to economic expansion to improve the budget bottom line.
- Action: No motion was made or vote taken.
Agenda Item: Public Comment – Library Funding
- Discussion: Multiple speakers representing the Library Advisory Committee, Friends of the Library groups (Carpinteria, Montecito), and former librarians requested the maintenance of current library funding levels. Speakers highlighted a projected $218,000 increase in administrative costs for branch libraries and requested a one-time fee or funding increase to bridge the gap while a county study on library efficiency is conducted. Speakers expressed concern over the current administrative structure where the Santa Barbara City Library administers county branches, citing issues such as vacant management positions, conflicting directives, and restrictions on donated materials. A former Carpinteria branch librarian detailed specific operational challenges, including the elimination of the homework center program and delays in utilizing funds raised for computers.
- Action: No motion was made or vote taken.
Agenda Item: Public Comment – Budget Projections and Energy Spending
- Discussion: A representative of COLAB criticized the county’s pension return projections, arguing that the assumed return is too low compared to market expectations. The speaker also criticized the county’s spending on energy-related projects (Community Choice Aggregation, coastal resiliency), arguing that such spending has minimal impact on global greenhouse gas emissions and should be reduced to fund other priorities. Supervisor Williams responded to the energy criticism, stating that California’s low emission levels are the result of deliberate public policy choices that influence other governments.
- Board Discussion:
- Supervisor Williams proposed using $200,000 in one-time funds to prevent library closures or service cuts, particularly for smaller libraries vulnerable to administrative fee increases.
- Supervisor Wolf indicated openness to one-time funding for libraries, suggesting an amount of $500,000, and stated that the board should maintain the per capita funding status quo ($7.80) rather than adopting the Library Advisory Committee’s new allocation formula, provided the one-time funds are available to prevent closures.
- Supervisor Lavagnino expressed support for the one-time funding concept but suggested increasing the amount to $1 million.
- Action: No formal motion was adopted in this segment; the supervisors indicated these items would be addressed during board deliberations.
Agenda Item: Public Comment – Planning and Development / UDP Determination
- Discussion: Supervisor Lavagnino inquired about the status of the UDP (Urban Design Plan) determination related to the Union Valley Parkway project mentioned in public comment. Staff indicated that the determination process was ongoing and expected to conclude on Thursday, after which the project could be slotted into the budget if resources allowed.
- Action: No motion was made or vote taken.
Agenda Item: Closed Session
- Discussion: The Chair asked if the board wished to enter closed session.
- Decision: The board decided not to enter closed session at that time, scheduling it for Wednesday instead. The board took a 45-minute lunch break.
Agenda Item: Functional Group Overview – Support Services
- Discussion: Staff presented the Support Services functional group, comprising Audit/Controller, Clerk/Recorder/Assessor, Human Resources, General Services, and Treasurer/Tax Collector. This group accounts for 16% of county expenses ($166.1 million). No departmental presentations were scheduled.
- Public Comment:
- A board member of Santa Maria Community Television requested that the county share a percentage of the PEG (Public, Educational, Government) cable fees collected from North County ratepayers with the Santa Maria public access TV station, arguing that current funding disproportionately benefits South County.
- A representative of COLAB requested that the county charge school districts full cost recovery for services provided by the Assessor’s and Tax Collector’s offices, noting that schools currently pay only 20% of costs due to state law. The speaker also questioned specific expenditures in Human Resources and Social Services.
- Board Discussion:
- The Chair proposed a $9,000 allocation for the former Supervisor Farr’s office in Isla Vista to be used by the Community Services District in exchange for overseeing the community resource center and community center.
- Supervisor Williams supported the proposal as "accomplishable."
- Supervisor Wolf supported the proposal.
- Action: No formal vote was recorded in the transcript for this specific proposal; it was noted as a proposal for general services.
Agenda Item: Functional Group Overview – Policy and Executive
- Discussion: Staff presented the Policy and Executive functional group, comprising the Board of Supervisors, CEO’s Office, and County Council. This group accounts for 4% of county expenses ($47.8 million). No departmental presentations were scheduled.
- Public Comment:
- A representative of COLAB criticized the Board of Supervisors for increasing its general fund contributions by $73,000 while other departments faced cuts, arguing the board should "lead by example." The speaker also requested that the board adopt Supervisor Adam’s stated commitment to streamlining permitting and encouraging business development.
- A representative of the Economic Vitality Team requested continued county support for the organization, noting that neighboring counties (Ventura and San Luis Obispo) provide higher levels of funding.
- Board Discussion:
- Supervisor Williams asked staff to assess the return on investment for economic development efforts compared to other counties.
- The CEO responded that while the effort targets the right goals, delivery has not been as effective as desired due to funding levels and collaboration issues.
- Supervisor Adam argued that the county should focus on removing internal barriers to business rather than providing direct funding, stating that the county cannot "make business happen" simply by giving money.
- Supervisor Williams countered that while removing barriers is important, strategic investment is sometimes necessary to attract business, and the county should work with the Chamber of Commerce to determine the best approach.
- The Chair noted the county’s ongoing internal strategic planning and the need for a broader external economic development strategy, particularly for unincorporated lands, focusing on sectors like tourism and agriculture.
- Supervisor Lavagnino expressed skepticism about the effectiveness of small funding increases for economic development, suggesting that funds would be better used for targeted recruitment of specific high-revenue projects (e.g., hotels) rather than general organizational support.
- Supervisor Williams emphasized the need to address housing affordability and induced housing demand as a long-term economic strategy.
- Supervisor Adam reiterated that the county cannot control which businesses choose to locate in the area and that policy changes are required to improve the business environment.
- Action: No motion was made or vote taken regarding economic development funding in this segment.
Agenda Item: Budget Summary and Wrap-Up
- Discussion: Staff presented the budget summary, highlighting a potential FY 18-19 budget gap in excess of $20 million. Key concerns included Northern Branch Jail construction/operating costs, mental health inpatient costs, technology replacement, and salary/benefit increases. Staff reported that the Assessor’s Office had updated the Assessed Value (AV) growth projection from 5.75% to 5.65% due to pending appraisals of oil and gas properties. Staff recommended using a conservative 5.5% AV growth rate for budget calculations.
- Board Discussion:
- Supervisor Wolf questioned the timing of the AV update, noting it was provided just hours before the hearing.
- The Assessor confirmed that the AV was more likely to decrease than increase based on remaining appraisals.
- Staff confirmed that the 5.5% recommendation was agreed upon by the CEO’s office and the Assessor’s office as the most prudent approach.
- Action: No formal vote was taken on the AV growth rate in this segment; it was presented as a recommendation for the board’s consideration in final deliberations.
Agenda Item: Budget Deliberations and Property Tax Assumptions
- Discussion:
- Workforce and Economic Development: A board member noted that the private sector leads job creation but emphasized the need for collaborative efforts to align educational programs with future job needs. It was mentioned that skilled trades, such as auto mechanics and heavy equipment operators, are in high demand and facing recruitment challenges due to labor shortages and cost-of-living differences in other states. The board member suggested the county could act as a convener to facilitate discussions between community colleges and business leaders.
- Property Tax Growth Assumptions: A board member requested clarification on a slide regarding a 5.5% property tax growth assumption. Staff presented a revised chart reflecting this 5.5% growth in total assessed valuation. Staff explained that at the 5.5% growth level, additional property tax revenues from the general fund would be $1,462,000. The presentation included the reclassification of the CalFresh contribution from a one-time expense to an ongoing expense, consistent with prior recommendations. Staff noted that compared to previous slides, the ongoing available funds shifted from a positive $2,990 to a negative $5,500. One-time available funds decreased from $514,000 to $454,000. The total available funds decreased from $813,521 to $448,521. Staff stated this framework would guide the board’s deliberation on resource allocation.
- Budget Restorations: A board member asked if the CEO intended to make any changes to recommended budget restorations based on the day’s discussions. The CEO stated that, given the totality of the information heard, they would proceed with the previously presented recommendations.
- Assessor’s Office Updates: A board member inquired about potential changes to numbers following the closure of the tax roll on Wednesday. Staff from the assessor’s office indicated that their team would be working throughout the day on Wednesday to finalize calculations, with an update provided to the CEO first thing in the morning. The board acknowledged that the financial figures may remain a "moving target" until the process is complete.
- Decision: The board decided to continue deliberation on this item at a meeting scheduled for Wednesday at 9:00 AM in the same room.
- Vote Outcome: No formal motion or vote was recorded in this segment of the transcript.