Board of Supervisors — 2018-06-11

FY 2018-19 Recommended Budget Overview

• Staff presented a balanced budget with operating revenues of $1,103.9 million and expenses of $1,101.7 million.
• The proposal includes no layoffs, restores previously proposed service level reductions, and projects staffing at 4,167 FTEs.
• A backfill of up to $4.4 million for Thomas Fire/Debris Flow property tax losses was recommended for the strategic reserve.
• The General Fund accounts for 39% of the county budget, with the strategic reserve anticipated to remain at approximately $23.6 million.

Cannabis Tax Revenue and Allocation

• The Board reduced the available one-time cannabis revenue allocation from $4.6 million to $3.75 million.
• The remaining balance was placed into a separate "Measure T Cannabis Tax Fund" for future allocation rather than immediate spending.
• Staff established a separate account to track these revenues and expenditures transparently.
• $1.7 million is committed to enforcement and licensing positions, with permitting costs offset by fees.

Ongoing Funding Requests

• The Board approved ongoing funding for the District Attorney’s subpoena server position at $67,600.
• Funding was approved for a Deputy Probation Officer for sex offenders at $120,400.
• Library per capita funding was approved to address small library deficits in unincorporated areas.
• The ESI Team Project Leader position was discussed but not explicitly listed in the final approval summary for ongoing funds.

One-Time Funding Requests and Allocations

• The Board allocated $200,000 from the Renew 22 fund to ongoing operations.
• $30,000 was allocated for libraries and $102,000 for the short-term rental zone amendment.
• Allocations for new projects such as the utility solar ordinance and clean energy roadmap were removed from the immediate spending schedule.
• The Board deferred these one-time allocations for future consideration to preserve funds for emerging issues like North County Jail operational costs.

Departmental Updates and Specific Discussions

• The Sheriff’s Office discussed $12.5 million allocated from the jail operating fund for hiring and training custody deputies.
• Public Health outlined plans for a coordinated volunteer program, STD outreach, and cannabis education.
• Planning and Development discussed options for regulating short-term rentals following the Coastal Commission’s denial of the LCP amendment.
• Social Services highlighted the need for additional social workers to support children transitioning from group homes to community settings.

Motion and Vote

• A motion was made to approve Attachment E and Attachments A through H as presented on Item 1.
• The motion included accepting Item 2, A and B as per the Staff Recommendation.
• The Board voted to adopt the FY 2018-19 Recommended Budget with the listed modifications.
• The motion passed with all those in favor saying "Aye."

Agenda Item: Public Comment

• Public comment was received regarding several topics. Pat Saley, President of the Friends of the Montecito Library, requested funding for unincorporated area libraries and the formation of an ad hoc committee to study alternative funding models. An unidentified speaker emphasized the necessity of the detective position at the Isla Vista Foot Patrol for follow-up on crimes. Another speaker discussed the Assessor’s litigation successes and the procedural differences in appropriating cannabis tax revenue versus allowing it to default to fund balance. An unidentified speaker expressed concerns regarding the Board of Architectural Review’s conduct and rulings on a second-story addition. Ethan Bertrand, Board President of the Isla Vista Community Services District, supported recommendations to restore funding for the Isla Vista foot patrol and noted the passage of Measure R in the district. John Tana, Vice President of the Santa Barbara Deputy Sheriff’s Association, addressed chronic understaffing and overtime in the jail and dispatch centers, supporting the use of a professional recruiting firm. Lori Tamura spoke in support of the Union Valley Parkway extension. Andy Caldwell presented comments regarding revenue sources, poverty rates, performance measures, and opposition to certain budget items including Community Choice Aggregation and cost recovery for false alarms. A speaker addressed economic development in North County, advocating for leveraging oil and gas production for property tax revenue.

Agenda Item: FY 2018-19 Recommended Budget Hearings and Adoption

Budget Overview and Financial Summary

• Staff presented the recommended budget, describing it as balanced with operating revenues of $1,103.9 million and expenses of $1,101.7 million. Staffing is projected to increase to 4,167 FTEs. The budget includes no layoffs and restores previously proposed service level reductions. Key updates included a backfill of up to $4.4 million for property tax losses related to the Thomas Fire/Debris Flow, which staff recommended treating as one-time funds for the strategic reserve. The budget includes approximately $3.3 million for cannabis regulation positions, with permitting and licensing costs offset by fees and enforcement costs covered by anticipated cannabis tax revenue. Funding continues for the Northern Branch Jail, fire tax shifts, and deferred maintenance. The General Fund accounts for 39% of the county budget. Staff noted that the strategic reserve is anticipated to remain at approximately $23.6 million, with a recommendation to close the gap to the board’s policy level of approximately $33 million if the state budget passes.

Cannabis Tax Revenue and Allocation

• Discussion centered on the anticipated cannabis tax revenue, initially projected at $6.3 million. Board members expressed concern about relying on uncertain revenue for new expenditures. It was noted that $1.7 million is committed to enforcement and licensing positions. The Board agreed to reduce the available one-time cannabis revenue allocation from $4.6 million to $3.75 million. The remaining balance was placed into a separate "Measure T Cannabis Tax Fund" for future allocation, rather than being spent immediately. Staff established a separate account to track these revenues and expenditures transparently.

Ongoing Funding Requests

• The Board deliberated on ongoing funding requests, including:
• ESI Team Project Leader: $75,000.
• Libraries: Funding for small library deficits, with discussions regarding per-capita funding versus specific deficits in unincorporated areas.
• Subpoena Server (District Attorney’s Office): $67,600. The District Attorney’s office noted that recruiting for this role is difficult due to the nature of the work and lack of benefits.
• Deputy Probation Officer (Sex Offenders): $120,400.
• The Board voted to approve ongoing funding for the DA subpoena server, the probation DPO for sex offenders, and library per capita funding.

One-Time Funding Requests and Allocations

• The Board reviewed one-time funding sources, including cannabis tax revenue, emerging issues fund balance, and other reserves. Initial allocations discussed included deferred maintenance, strategic reserve, libraries, homeless tracking, Union Valley Parkway, utility solar ordinance, short-term rental amendment, and clean energy roadmap. Board members debated the prudence of spending one-time funds on new projects versus reserving them for emerging issues, particularly the North County Jail operational costs. It was noted that $12.5 million from the jail operating fund is allocated for hiring and training custody deputies.
• The Board decided to: 1. Reduce the one-time cannabis revenue allocation to $3.75 million. 2. Place the remaining cannabis revenue balance into a separate Measure T Cannabis Tax Fund. 3. Allocate $200,000 from the Renew 22 fund to ongoing operations. 4. Allocate $30,000 for libraries. 5. Allocate $102,000 for the short-term rental zone amendment. 6. Remove other one-time allocations for new projects (e.g., utility solar, clean energy roadmap) from the immediate spending schedule, deferring them for future consideration.

Departmental Updates and Specific Discussions

• Sheriff’s Office: Discussed CFMG contract status, North County Jail operational costs, and staffing for custody deputies. The Sheriff noted that $12.5 million from the jail operating fund is allocated for hiring and training custody deputies.
• Public Health: Discussed the development of a coordinated volunteer program, STD outreach, and cannabis education. A new senior epidemiologist is anticipated to be approved in July.
• Probation: Discussed the cost of cannabis education and the need for a Deputy Probation Officer for sex offenders.
• Planning and Development: Discussed the status of the short-term rental ordinance following the Coastal Commission’s denial of the LCP amendment. Options included expanding the historic overlay or regulating short-term rentals throughout the coastal zone.
• Public Works: Discussed pavement preservation strategies and the use of Pavement Condition Index (PCI) in project selection.
• Social Services: Discussed the need for additional social workers to support children transitioning from group homes to community settings.
• Libraries: Discussed funding for unincorporated area libraries and the ESI team project leader position.
• Economic Development: Discussed the decline of the industrial economy, the potential for utility-scale solar projects, and the need for long-term planning resources.
• Technology: Discussed cloud-based internet solutions for data management and website capacity during emergencies.

Motion and Vote

• A motion was made to approve Attachment E and Attachments A through H as presented on Item 1, and to accept Item 2, A and B (Staff Recommendation). The motion was seconded. The Board voted to adopt the FY 2018-19 Recommended Budget with the modifications listed above. All those in favor said "Aye." The motion passed.

Adjournment

• The Chair thanked staff and the board. The meeting was adjourned to Tuesday, June 19th, at the Joe Centeno Building in Santa Maria.