Board of Supervisors — 2017-06-12

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Good morning and welcome to the June 12, 2017 Santa Barbara County Board of Supervisors first day of our budget hearings. And would you call the roll Mr.

Allen? Mr. Adam? Here. Mr. Lavinino? Here! Mr. Williams? Ms. Wolfe? Here. Ms. Hartman?

Ms. Miyasato do we have a CEO's report today? Not this morning. All right moving to public comment for matters not on today's agenda and we are allowing one person to go forward with an item because he has to get back to work so.

Chair Hartman, members of the board we have two requests we're gonna start with Peter Morin and then Mr. Caldwell

Thank you for letting me speak. Many years ago we had three people die on the streets of Santa Barbara in the middle of winter At that point, a group of advocates got together and sent two of us. I came and Dr. Lynn Jahnke to address the supervisors about the need for the warming centers. The next week 20 people came and asked for the same thing. The next week a couple of hundred came and asked for the same thing. This is an extraordinary program. It involves the county, it involves the churches, it involves volunteers Given the cost of other programs, it's relatively inexpensive and it literally saves lives. There was a point at which during those proceedings many years ago Sarah McCune Whose influence I do not have got up and called the supervisors murderers or said you would be murderers if you didn't go forward with this program.

I don't have that temerity but I will say if you don't go forward with the program, you will be probably costing people their lives. Having said that I'll just move on very quickly to the jail ride program which we began years ago. I don't know where that stands at the moment for a long time that was privately run and then it was handed over to the county who asked the sheriff to run that program What that involves is when people are let out of jail after the buses stop running, ordinarily they have to walk seven miles back to town regardless of what the weather is cold or rainy.

It's very dangerous It is destructive to their health and it is totally unfair to hold people in the jail, release them at midnight or three in the morning and expect them to walk seven miles back to town. I'm not even sure it's legal to do that but I beseech you to keep that program running because that too saves lives and is terribly important to the indigent and the otherwise helpless. Thank you very much.

Mr. Caldwell?

Madam Chair, members of the Board, Andy Caldwell representing CoLab. Some of the things that we believe are missing from your discussions as far as we can tell over this next day or so is a five-year plan. You already know what your pension obligations are going to be during that time. And we believe that part of what you should be doing right now is planning on not just the cuts you're trying to negotiate this year but in years 2, 3, 4 and 5.

Because as you know you have actually some quote unquote enhancements this year and we don't understand how you could even Consider contemplate that. We didn't see a JAWS chart in the book we think it should be in the book because in years there's one time I went back with Jim Leponis looking for a 15 year old book and that's all we had is not in the book it's going to probably get lost over time The other elephant in the room is your pensions. There's actually no plan that we've seen as of yet to deal with the pensions and this is what really is driving your inability Give services to the public, your inability to maintain your infrastructure and the reason you're driving 100% cost recovery for every program imaginable if you can wring those payments from the public.

And we believe that if you don't tackle this, this is not gonna just engulf the county it's engulfing cities, school districts in the state of California. And we don't understand how it is that people of the private sector are relying on Social Security, which is a maximum of $32,000 a year. What gives the county the moral imperative to say that our employees and like for instance in SEIU will not just get social security but we will give a pension that we can't afford to pay for?

Why is your family more important than our family? Again, Social Security $32,000 a year max private sector. The general public. But you maintain the right, the prerogative and the moral high ground that you will give a county pension and social security to your employees when you know darn well you can't afford it And that we end up paying for it in terms of less services, less infrastructure and higher fees.

Who is serving who? Are you still public servants or is the servants, the public serving you? It's a moral imperative that you answer that question because you're coming to the point now that you're not even monitoring felons with probation.

That concludes public comment.

Thank you Mr. Allen so we're turning now to our introduction for the budget overview.

Good morning Chair Hartman and board members and before we begin the budget hearings today I did have an announcement I forgot to make it's a moment of levity before we get into this serious, I'd like to say happy birthday Mike Gazunia County Council. I'm sure he'll kill me later. So as we, as you know today begins the first day of our budget work or budget hearings and before I begin I would like to acknowledge and thank all our departments our department directors and all their staff for their work and commitment in preparing and producing balanced budgets for their departments. I appreciate all your work. Thank you very much. And I want to express my gratitude also to the auditor controller and his staff Auditor Controller Filotti Betsy Schaefer, Kyle Slattery, Jeremy Sturtz, Wyeth Jorgensen and as well as Rochelle Zanini, Amy Tom and Robert Geis.

And of course my own staff Jeff Rapwell who's been here less than six months has dived in with great care and concern and expertise I appreciate his work and his staff Paul Clemente, John Giasing, Shauna Jorgensen Richard Morgantini and borrowed from Community services Andrew Myung and AJ Kinovaeva thank you all for all your work throughout the year and particularly the last several months. And also thanks to Terry, Matt, Dennis and Gina for providing the overall support in the office.

So we will begin today is the first day as I mentioned. We have Wednesday as well as Friday planned if those days are needed we will take them So here's the agenda. I'll give a brief overview and then Jeff will provide greater detail about the contents of the recommended budget department presentations on updates will be limited to those indicated on your agenda given in-depth presentations were given in April However you may ask any questions of any department and they may still want to present or speak to your board on their budgets during that time.

Time is also agendized for your deliberation and possible amendment or alteration of the recommended budget. And following that we'll be asking for your boards actions to adopt the budget. Here's our timeline as you know we've been working on this throughout the year and provided for opportunities over the last seven months for your board to provide direction input on the process or the contents of the recommended budget.

And we had lengthy workshops in April. We released a budget in May and we are here today in June. The recommended budget, as you know, presents a balanced budget as we are required to produce a balanced budget by law. Our operating revenues are $1.79 billion. Operating expenditure is $1 .73 billion and this recommended budget requires reduction of full-time employees about 187.7 FTE.

And I also wanted to mention that there was an update provided to your board on additional revenues and Mr. Frapwell will discuss that, and we also have Mr. Holland who'll be giving an update as part of Mr. Frapwell's presentation. So for 2017, 18 and beyond as you know we've had to take necessary reductions to balance the budget countywide. And this is the first of several years where we're looking ahead at challenges and these are challenges that we've talked about over the last six months seven months so the drivers of our challenges as you know are increased salary and wage increases plus pension costs And we have higher costs of providing state and federal programs, and we are able to receive revenue for reimbursement.

We have shortfalls in our public safety and mental health areas which is not new. And much of our new general fund is already being committed to board priorities. Yet even with these challenges, this recommended budget is able to continue the board's highest priorities and prior commitments. And that is funding for the operations of the Northern Branch Jail. That's slated to open in 2019.

The funding plan as you recall sets aside ongoing general fund every year. We're at $9 million funding for 17-18 and that will continue. As you recall, the operating costs are estimated at $18 million ongoing and our funding plan will get us there.

Madam Chair yes I'm sorry to interrupt Miss Misato. I'm having a hard time finding, I'm on tab 8 Can you tell me where this PowerPoint

is located? I believe we had an old PowerPoint and then an updated PowerPoint. I grabbed the updated one and it doesn't seem to match this.

So I think in tab 8 there were probably two presentations, my presentation and the budget director's presentation I think that this morning when the staff provided an update to tab 8 they said it replaces the whole tab 8 and that was incorrect. It only replaced the budget directors so Shauna has other copies? Thank you. I apologize thank you for pointing that out.

Just give us a few minutes and our staff will trade out the correct PowerPoints. Okay we're on slide six of that PowerPoint. Are we okay? Thank you. So as I was saying, even with the challenges that I described this recommended budget is able to continue your highest priorities and that is funding of the Northern Branch Jail continuing to provide more funding to the Fire District And that's an additional $8 million next year over the base of 2012-13.

Increasing deferred maintenance, and Mr. Frappell will go over that in more detail. And maintaining our commitments to our employees through our labor agreements. We also have financial plans and we continue to be committed to those paying off our unfunded liabilities. We have over a billion dollars in unfunding pension liability which would be paid down by 2030 if all assumptions hold intact.

Our retiree health unfunded liability is $113 million and again that will be paid down about the same amount of time. The board has rebuilt its strategic reserve or rainy day fund For facing future financial challenges and this year as you know the board had agreed that we should not continue to add to that fund so we're about 7.4% of our operating reserve and typically we try to aim for 8%.

And the county has incurred very little debt which is also assists in our financial stability going forward. We developed the budget with this guidance which we've used in previous years and that is again continue the board's prior commitments which I just spoke about. Maintain our reserves at prudent levels, again the strategic reserve is almost fully funded.

Address needs and mandates which we have done. Look at technology investments and ways we can change our business to be more efficient Look to the future when we're making immediate decisions. Minimize reductions and impacts to the public to the degree we can, and address any new and emerging needs. So what is before you is a recommended budget that attempts to strike a balance among the necessary reductions that were made in this budget to balance the budget, meeting our most critical needs and the board priorities, and again planning for future budget gaps which we know will occur.

So overall, all funds. Net of restorations and expansions as recommended budget has approximately $30 million in reductions to close the budget gap. And as you see 68% is a non-general fund departments mostly the Department of Social Services. I do want to point out that something about this budget, we are providing more ongoing general fund contribution to the Departments of Behavioral Wellness and Social Services than we did in 16-17. I talk about a rebalancing strategy and that's focusing our resources on the board's priorities and our most immediate needs so this budget does that it basically rebalances funds from other general fund departments providing more ongoing funds for social services and behavioral wellness Key issues looking in 17-18 and ahead, we talked about pension funding.

And something to note is when we began this process after the retirement board reduced the rate of return and changed assumptions, we thought we'd have about a $10 million cost in the 17- 18 budget for pension, increased costs. That's about 7.3 now and it's mostly because we've had staffing reductions. But on average, we will see an $8 million increase every year over the next four years until it levels out.

We talked about mental health inpatient services. This has been a continuing issue, longer stays at the PUF, more court ordered placements than we've seen in the past and higher demand. And there's different programs in the works now on how we can continue to try to reduce those costs. We talked about the social safety net that the state is reducing or putting caps on the amount of funding we receive for the same level of service And also that we've seen a reduction in allocation for CalWORKs and CalFresh, which is affecting the Department of Social Services.

We're seeing more retirements of experienced employees and although our overall churn rate or retirement rate or rate of vacancy is about 7%, which is normal, what we're seeing is more experienced employees leaving and that has a significant impact on the organization. We're improving our public safety dispatch. We have a study that's almost finalized will be to your board this summer and as we've said, we set aside Public Safety Prop 172 funds to address any potential needs that arise from that study We have a growing list of capital needs across the county and last year your board set aside money for potential bond issue. General services will be coming back to your board in July with a list of high priority needs that might be eligible for debt financing.

This year we also acknowledge that we will be needing to upgrade our radio coverage. We have a diverse environment for public safety radio communications that are at different stages in their life cycle and known areas where coverage has not kept pace with development, so this recommended budget includes funding for that and Jeff will talk about that but it recognizes we will need a comprehensive long-term system upgrade that general services will work on with our public safety departments.

And we know road funding has been an issue for the county, for all local government. With a reduction in state funding it put pressure on our general fund to contribute more. The new gas tax will result in about $2.8 million next year rising to about 7.2 in the next year and we'll talk more about roads funding when Jeff talks about maintenance funding. So a couple of months ago we came to the board with countywide work initiatives and these are things we suggested for focus from many department or multi-department work initiatives.

One is allowing, proposing an ordinance to allow cultivation of cannabis and we have an ad hoc committee as you know and staff will be bringing an update in July to the board. We talked about enhancing our public safety dispatch services and that continues. As well as reducing the inmate jail population, and particularly those with severe mental illness. The sheriff has started a stepping up initiative with community members and departments to look at how we can reduce mentally ill in jail in different ways to do that so I applaud him for that effort.

Also the Community Corrections Partnership The CCP through AB 109 funds has proposed funds for an MHRC, a mental health rehabilitation center. Funds were allocated through that process for capital costs and some operational costs so that would help divert individuals from the jail. And again we're continuing to look at how we can reduce inpatient costs and something will be coming to your board this summer to look at different options.

Again, we continue to strive to improve the organization. We talked to your board in April about our internal facing strategic plan which is ways how we can be better at what we do every day in the organization making technology investments where we can and through the budget rebalancing process look at ways that we can implement those suggestions and one was looking at program audits so we'll be back to your board with those specifics after the budget Looking ahead, as you know we want to be proactive about how we shape our future and not be a victim to these cost increases. Continue to have an engaged and accountable workforce.

Make responsible decisions that balance the short and long term, not overspend now which may cause greater financial harm tomorrow, and to become a sound and sustainable organization. So we've been using this theme of one county, one future. And there's a story behind it and I want to share that story. All the department heads got together in December and we began discussing how we were going to address the challenges over the next five years.

We talked about various things and I mentioned that I had just been at a meeting with the state OAS director Mark Ghirlarducci and he told our water purveyors to address the drought. We had to think of it as one county, one fight And the fight was obviously overcoming the drought. But it's the same for us. We're not fighting Mother Nature, but we are fighting for our future and fighting for our own tendencies to believe that this is just like the recession.

That property taxes will come around and help us. They have. Property taxes are stable and up so our challenge is our expenses and we will need to reduce rebalance and find new revenue in the future And we can, we can do this. But our practical reality is also that we'll need to do less but better and to tell our partner agencies as well in the community that we must do less but we will always strive to do better Through greater coordination and connection among our departments, not defaulting into siloed thinking.

Building upon the strengths of our departments working together and with the community. Rebalancing and focusing on our highest priorities, priorities of the board. And continuing collaboration with common focus goals. I used to say we can be a great organization and financially stable but really We need to be a financially resilient organization so that we can be a great organization.

And with that I'm going to hand it over to Jeff who's going to walk through specifics of the recommended budget.

Good morning Madam Chair, members of the board. So as we walk through the budget I'm going to kind of brief you on what's included here in the recommended budget and we'll talk a little bit about some changes that we've seen in the last few days and then we'll move into deliberations on this afternoon or Wednesday or Friday depending on how the course that the hearings go In summary, the budget hearing materials that you have in front of you kind of incorporate not only the printed recommended budget book but the binder that your board's been provided.

It has the countywide budget summary a recap of service level reductions that you'll find in the executive summary. It also includes CEO recommended restorations and expansions which we'll talk about at more length General fund key discretionary fund balances as we'll discuss an update on increased property taxes. Departmental presentations as required or necessary will wrap up with board deliberations and the recommended actions in your this is the binder that you have in front of you and the tabs that are included so the budget letter and budget resolution or tab one and you can see Both on the table of contents for your binder as well as here on the slide, the other contents of your budget hearing materials.

In looking at the county's budget as it is currently recommended and printed in the recommended budget we have total operating revenues of $1,079.1 million with expenses of 1,073,000,007 with a net 5.4 going into fund balances Our staffing FTEs is moving from in the current fiscal year 16-17 an adopted level of $4,400 to $4213. As we look at the recommended budget and countywide revenue by category You can see that intergovernmental revenue continues to be the largest source of revenue received by the county.

As a political subdivision of the state we are here as partially to operate state and federal programs on their behalf, but taxes at the top line show all taxes about $303.4 million dollars and we'll talk about more than a second

Thank

you. Charge of services being the third largest source of revenues coming at $273 million again for total operating revenues of one billion seventy nine million dollars. Looking at operating revenues, you can see here we break this down by fund the largest fund of course being the general fund but you'll see there At 37 percent includes most of the departments except for fire, health and human services, most of public works and all the internal service funds IT risk management vehicles utilities etc.

If you're looking at just the general fund we often do is then blow out to the side in a secondary pie the breakdown of discretionary revenues those those revenues which your board has some degree at least of discretion how to spend And the other revenues which are earmarked for special purposes. As we continue to look at discretionary revenues, the most significant source of our discretionary revenues are our property taxes. So property taxes of the significant property taxes total about $203 million. We also get $6 million of RDA property tax that's an ongoing revenue source For a total of $209.6 million and then you can see the additional other significant sources of 10.6 for the cost allocation services these are these are recap or recouping costs from the non general fund departments for cost incurred by the General Fund to support them our local sales tax about $10.7 million our TOT of $11.8 million kind of all other wrapped up into 5.1 So you can see we had about a rate of growth in our discretionary revenues of $8 million or 3.3% from the adopted level in the current fiscal year.

Moving to expenditures, we have expenditures as I mentioned of 1 billion 73 million and you can see here as we break this down by where we spend our money between the functional categories you'll see that by largest percentage at 36% is the Health and Human Services departments Followed by public safety at 29%, 315.5 million, general governmental services and support services follows 166.1 or 16% then community resources and public facilities.

As Mona mentioned, the budget does take into consideration and fully meet your board's prior commitments for the northern branch jail operations. The fire tax shift, deferred maintenance in capital infrastructure, our agreements with the labor organizations maintaining a fiscally prudent strategic reserve And also addresses the plans to address unfunded pension and retiree health care liabilities.

Looking at retirement this is a chart will show you kind of our retirement contribution over the last number of years and you can see that in the current year adopted budget 2016-17 we'd estimated a retirement contribution to SB CSRS of 123.8 million dollars Which is growing to 131.1 million in the recommended budget. As we look at maintenance funding, your board's aware that your board adopted an 18% maintenance funding strategy formula in June 2014 and this chart again reflects what's in the recommended budget it does not reflect some changes and we'll talk about those a little later in the presentation We have a baseline funding for maintenance of totaling 2.3 million dollars and you can see that's broken down between Public Works, General Services and the Community Services Department.

For the 18 percent funding we have two types. We have the ongoing funding that is driven by the formula adopted by your board and currently that's historically been distributed at 50 percent for the Public Works Department for roads The recommended budget as printed also includes allocation of $3.4 million in one-time money, again broken down at the 50%, 35% and 15%.

In addition to that, we do have allocated in the recommended budget $700,000 for potential debt service on a COP that your board will be asked to consider later in the fiscal year. The 700,000 represents roughly six months of debt service. As we look at capital...

Mr. Fretwell?

Yes.

Supervisor Wolf has a question for you. Thank you Madam Chair. This particular chart is very important to me and I had submitted a BIF requesting information from the past two years on the maintenance total. So, I appreciate getting that information Mr. Fratwell. The one question that I had asked in a BIF was if we have a plan as to where this money will be spent? And I have not received that yet.

But a couple of things I wanted to bring up, and one has to do with what you said. And we had discussed this in a meeting about historically that the money has been allocated 50%, 35% and 15%. But in actuality, those percentages were just last year and then the year before that. The first year that we started this funding policy it was 50% public works and then 50% general services and community services department So I just think at some point as we maintain this 18% maintenance funding that it should come back to the board as a policy decision as to how we're going to allocate that money.

Did you want to say something?

Supervisor Wolf to the chair, I completely agree we should come back to the board. I think that was made because we were seeing such reductions in state revenue for roads and so we can have that discussion with your board when we come back with budget policies in December. Okay thank you for that.

And I'm glad you brought up the issue of roads because the baseline which we put in 500,000 1.3 and 500,000 in particular the public works piece of that was because as I recall we were seeing a significant decline in state funding for roads. Now I think further on in our budget presentation You're going to be telling us that we're getting two point eight million dollars additional funding for roads.

But yet that's not and I guess I understand why it's not part of this chart because it's not part of that 18 percent but I think it is important to note that we are getting that much more money for roads finally in your little asterisk down at the bottom It says additional fiscal year 2017-18 funding is in excess of the policy by $4,100,000. And I appreciate that you've put that in there because I think some people have said that this is our policy and the fact is is that those bar lines that we were looking at in the past were just simply projections And not the policy. So I'm glad that you specified that, because what we are doing is adding $3.4 million of one-time funds into this maintenance funding that is really on top of our policy for the 18%.

Thank you Madam Chair.

And Supervisor Lavanino has a comment as well.

Thank you, Madam Chair. I'd just like if Scott McGaulpin is available for just a quick question. You know we're talking about additional state funding of $2 million and we're talking about two or three million dollars here there. Do you have any idea what It would keep it would cost to keep the PCI. The same this year's last year.

Madam chair survives 11 you know what we reported in the workshops was to maintain the existing PCI of 58 that would require 13 million dollars OK so just in roads alone just for payments correct.

Supervisor Adam and then supervisor will.

And last year what did the deferred maintenance grow by? Last year. I could help you with that if you need it.

I think it went up about 30 million dollars. It went from like 250 million dollars unfunded to 280. OK so

these numbers are not moving the needle That's correct. Yeah OK thank you.

Supervisor Wolk I just had a feeling that PCI was going to come up in this conversation and I'd like just to remind my colleagues that unfortunately we don't have PCIs for our human services. It would be really nice to have that because I'm sure if we were to have a PCI for social services, we'd probably see that we need to incorporate additional funding To maintain our safety net, not just our roads. Thank you Madam Chair. Supervisor

Lavanino?

Well I would also argue that...I don't know if you read in the paper but we had a gentleman that actually died on one of our roads yesterday because although it was his...he went around a barrier But that Orchard Gary Road in my district has been washed out and it's been washed out for over a month. And I know public works is number one priority, but it's not like these roads do not have an impact on our population.

And would also point the fact that we spend over 300 million dollars a year in social services and mental health services to the public When a very small fraction is going into our maintenance funding so. I don't think it's that we're not making that a priority that is the number one priority in this County his social services every 4 years we spend over a billion dollars and I don' see getting any better.

So. I guess that's what these priorities are going to be all about. And will work this out tomorrow but

And Supervisor Wolf and then back to Mr. Crapwell.

Thank you Madam Chair, I think what happened in that accident was tragic and I know we have put aside additional million dollars for emergency road funding and I wouldn't disagree that some of the roads and I'm glad that's first on the list needs to be done But if we want to talk about fatalities or I guess I could bring up child abuse cases, adult protective services and adults who are being abused. So we can go down the list of horrible things that are happening in our community and I think what I'm trying to say Supervisor Labadino is that we need to take a balanced approach.

Thank you.

Recapped in the recommended budget and also adopted by your board in the capital improvement plan. A number of weeks ago is the CIP, and you can see here in the capital summary how that breaks down between projects perhaps more clearly. Well I guess this is a chart that actually has the numbers. About 40.3% or $29.7 million are anticipated for the Northern Ranch Jail 39.6% or $29.2 million invested by Public Works on various projects, and 9.4% with general services and 4% budgeted for community services.

Here's a summary of kind of the major significant planned projects. You can see the Northern Ranchdale, Fire Station 41 rebuild in Cuyama, Goleta Beach Access Bridge Since we had workshops in April, there have been several changes to the recommended budget which will go through Your board on May 16th provided direction to the CEO's office to provide full year funding for the AOT or Laura's Law program within behavioral wellness. So that is included here in the recommended budget. $275,000 roughly is funded from the general fund and the remaining cost of the program is from other departmental sources.

In addition, since the workshops we've had the Governor's May Revise has been released. We've had a chance to work with county departments to understand the impact of the elements of the Governor's May Revise. Initially it identified $2 million one-time general fund costs going into the IHSS program That's been taken away from the program as necessary for the upcoming fiscal year. It comes with a cautionary note, however, in that the county's local share for IHSS will be increasing as a percentage over the next several years. So we're going to talk a little bit more about that at the conclusion of our hearings.

In addition, the governor has made revised eliminating the need for the contribution, as I mentioned, of $2 million and we'll see costs in the upcoming years. With respect to service level reductions, we talked extensively about service level reductions in the budget workshops. We went department by department so I don't plan on doing that today although we're certainly prepared to do that if your board would like They are captured in the executive summary and the recommended budget as well as obviously were part of the record for the budget workshops.

But in total, service level reductions identified by departments amounted to about $39.5 million or 304.3 FTE. Obviously not all these reductions are being recommended And we'll go through the expansion and restorations recommended by the CEO's office. Again, I won't go through all of the silver slub reductions. I will spare you that. As we look as Monja mentioned our really goal as we develop Recommend a budget was to look holistically at all the services provided by the county as well as our fiduciary responsibility to maintain the infrastructure that our citizens rely on every day.

And so we identified at the conclusion of workshops that there is about seven point four million dollar of ongoing sources within the general fund But understanding that we have deficits in the upcoming years, understanding that there will continue to be pressure on escalating costs and with revenues not especially federal state revenues not keeping pace with those that cost escalation. Our recommendation to your board and what is built into the recommended budget really breaks down that 7.4 of ongoing sources and treats 4.3 million For ongoing funds and three point the remaining 3.1 million for one time and so that as we look at how we allocated resources and how we identified our recommendations for expansions and restorations it was really built on this premise here.

Supervisor Wolf has a question for you, Mr. Proper. Thank you Madam Chair. So just to be clear the $7.4 million could have been considered ongoing but due to potential fiscal constraints there was a decision to basically say that part of that is one time.

Supervisor Wolf of the chair that's correct. We certainly have enough intel as we look forward in the upcoming fiscal years to know that we will have shortfalls and what we're trying to do is minimize the impact of those shortfalls than they have in the out years and plan prudently.

Supervisor Lavanino OK go ahead.

So we look at the CEO recommended restoration expansions here. Here's the basis for those as we looked at them we looked at new and existing mandates or requirements board established policies and priorities significant fiscal legal health or safety risk reliability well documented need based on past studies or data and self-funded or cost covering initiatives You recall in our presentation at workshops we'd identified roughly five point eight million dollars that we had built into the workshop kind of budget as we presented.

And those covered both the geomedical contract for impact for sheriff and probation roughly two million dollars as well as additional resources for probation to address the new mandate, the PREA or Prison Rape Elimination Act for four FTEs within juvenile hall. Then social services as I mentioned it had identified the two million potential one-time need for the MOE increase which has now been changed and then about $900,000 for CalFresh and the ISSS MOE increases.

And finally it did restore to full MOE requirement the contribution to the courts. Moving forward now as we look at the recommendation recommended restorations expansions in the recommended budget Again, this is based on feedback from your board during the workshops. It includes one half FTE or $89,000 for County Council and then District Attorney included an extra help DA for the MP13 case as well for $80,000 as well as a one-time money for the replacement of the case management system within the DA's office In probation, we restored two FTEs for the Prop 36 Substance Abuse Crime Prevention Act caseloads.

And the department was able to find $175,000 in non-general fund dollars to do the remodel at Los Prados Boys Camp. Within sheriff There is $1.25 million or equivalent of 10 FTEs that set aside in a pool for the department to draw against to mitigate employee lost time due to illness and injury, workers comp cases. In addition, the IV foot patrol, the recommended budget restores approximately three-fourths of the service level impact identified by the Sheriff's Department for 1.4 million dollars It also restored funding for the community resource deputy within Isla Vista and established a pool of funds for the sheriff to draw on for additional court security requirements above the amount of funds that they get from the state for that purpose.

Within community services, there are a number of changes or Community Park $60,000 for ongoing maintenance The CCE launch phase three at $300,000. Additional funding for libraries at 241,000 dead tree clearing within CSD for 200,000 and parks deferred maintenance 310,000 as well as the homeless shelters of homeless 20,000 but in general services we have the maintenance of 175 thousand dollars increase Also in one-time dollars for maintenance of $1,190,000.

For the Isla Vista Community Center maintenance cost $18,000 and as we briefed your board during workshops the need to invest in the public safety radio system of $925,000 within Public Works we show a million dollars added coming from the Strategic Reserve That is the local match required to bring down state and federal dollars from FEMA and Cal OES for the storm damages in the January and February winter storms.

It also includes additional funding for roads maintenance. There are 254 ongoing and 1.7 million in one time.

If I may interrupt, I just wanted to go back to the previous the homeless shelters we've received a great deal of mail and email and this is a full restoration is that correct?

Manager that is correct. Within fire, the recommended budget includes an augmentation of $392,000. Again this is not general fund dollars but it is within their district funds. $392,000 for additional fire chief position as well as a civilian inspector of $147,000 Finally within behavioral wellness We have added 1.5 million of ongoing resources to restore 19 IMD beds, increase that total beds from 28 to 47 per day. That's with ongoing dollars that recognizes our historical need for that level of care for patients and it also includes 600,000 in one-time money For additional 7 IMD beds as well as additional 2 hospital beds for $600,000 as well.

It also recognizes and builds in the 1.1 million coming from as part of a grant from non general fund dollars as well in the recommended budget. Social Services rounds out the balance of our restoration expansions. Here we have additional $450,000 for ongoing match required for the local managed share of costs associated with the IHSS provider wage increases, 450,000 and also includes one-time money of 106,000 and 386,004 CalFresh match for both the current year funding as well as potential drawdown of additional monies And so that concludes if you see their total recommendation for restoration and expansions of 5.3 million ongoing and about 9.4, 9.5 million for one-time dollars.

As we look at key general fund discretionary fund balances this chart continues to be a fan favorite So I'll walk through this. Then the behavioral wellness behavior wellness there is a million dollars identified and set aside for your board to allocate to behavioral wellness should that be necessary during the fiscal year. Historically this has been necessary we think this is this practice of putting this million dollar society as prudent within the 18 percent for maintenance essentially all those funds have been allocated.

There's that residual 7000 within capital You'll see there's $700,000. That's the $700,000 identified for debt service should your board approve the issuance of COPs mid-year. Our strategic reserve at 29.9 million dollars As we mentioned before, litigation has been briefed to your board during the workshops. It's being recommended to increase by $2.8 million for a total of $2 .7 million in consultation with county council.

Mr. Fretwell, Supervisor Lavinino has a question here.

Mr Fretwell on the strategic reserve, so it says per budget policy but So we eliminated the budget policy though that said that we need to be at a certain percentage