Meeting Summary
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At a glance
Budget Overview and Functional Group Presentations
- Staff presented a balanced $1.141 billion budget with a 1.9% staffing increase to 4,248 FTEs, primarily for the Sheriff’s Department.
- General Fund discretionary revenues are projected at $276 million, with a discretionary fund balance of approximately $57.8 million.
- Functional group summaries highlighted varying general fund contributions, ranging from 2% for Public Works to 67% for the Public Defender.
- Staff outlined three tranches of expansion requests, including unfunded items for libraries, maintenance, and Sheriff’s technology upgrades.
Deliberation on One-Time Funds and Discretionary Revenue
- The board allocated approximately $1.086 million in one-time funds, directing $889,000 to cannabis enforcement and $175,000 to compliance audits.
- Discussions addressed the deferred maintenance backlog, with suggestions to use excess cannabis revenues or raise sales taxes to address the liability.
- The board debated Community Choice Energy (CCE) options, estimating startup costs between $250,000 and $430,000 for an independent agency.
- Additional allocations were made for a recreation master plan, library funding, and planning positions to manage cannabis applications.
County Executive Office - Redevelopment Agency Successor Agency Budget
- The board reviewed the fiscal year 2019-2020 recommended budget for the successor agency to the former Redevelopment Agency.
- A motion was made and passed to move Items A and B regarding the successor agency budget.
Failed 1–1 · in favor: Lavagnino
Adoption of Fiscal Year 2019-20 Budget
- Staff confirmed the budget proposes no service level reductions for the first time since 2009, citing revenue growth and modest expansions.
- A public commenter argued that staff costs are unsustainable and urged the board to redirect funds from climate initiatives to road infrastructure.
- The Budget Director explained that maintaining healthy reserves is critical for preserving the county's credit rating and reducing financing costs.
- A motion was made to increase tax compliance funding to $100,000 and add $75,000 to the CCE fund, with the vote outcome not explicitly stated in the transcript.
Full summary
Agenda Item: General Public Comment (Non-Agenda Items)
- Discussion: A member of the public addressed the board regarding a building permit application. The speaker stated that the second story of their proposed structure is located over the garage, kitchen, dining room, laundry room, and part of the living room, contradicting a previous board determination that it was located solely over the garage. The speaker alleged that a 2014 vote indicated no setbacks were required, but current staff are requesting an eight-foot setback. The speaker expressed frustration with the inconsistency and suggested that the rejection was due to a lack of political donations.
- Decision: No motion was made or vote taken on this item.
Agenda Item: Budget Overview and Functional Group Presentations
- Discussion: The CEO and staff presented the recommended budget for the upcoming fiscal year, totaling $1.141 billion, which is balanced without service reductions. Key financial details included:
- Staffing: An increase of approximately 78 positions (from 4,170 to 4,248 FTEs), representing a 1.9% increase. The majority of these positions (23) are for the Sheriff’s Department related to the Northern Branch Jail.
- Revenues: General Fund discretionary revenues are projected at $276 million, an increase of $8.5 million (3.2%) from the prior year. Primary sources include property taxes ($227.9 million), cost allocation services ($11.1 million), local sales taxes ($11 million), TOT ($13.2 million), cannabis tax revenues ($5.6 million), and other revenues ($7.2 million).
- Reserves and Fund Balances: The recommended budget sets aside approximately $71.8 million in projected fund balances for specific purposes, including behavioral wellness, cannabis tax revenue, technology replacement, city reserves, litigation, disaster recovery, program stabilization, facility maintenance, assessment appeals, new jail operations, emerging issues, and contingencies. Staff noted that after accounting for identified uses, the discretionary fund balance is approximately $57.8 million, which is about $9 million below the Government Finance Officers Association (GFOA) recommendation of two months of operating expenses.
- Cannabis Tax Revenues: Estimated revenues for the current fiscal year are $5.45 million, with a projected carryover of $323,000. Approximately $889,600 is available for board allocation. Enforcement spending is recommended to increase to $2.8 million. One-time uses include software implementation, security, and in-car video replacement for the Sheriff’s Department.
- Maintenance Funding: Total maintenance funding is approximately $16 million, including baseline funding, 18% formula monies, and one-time project funds. The recommended budget includes $23.2 million for deferred and regular maintenance projects.
- Functional Group Summaries: Staff provided overviews of revenue sources and general fund contributions for the following functional groups:
- Health and Human Services: Includes Social Services, Behavioral Wellness, Public Health, Child Support, and First Five. General fund contributions range from 4% to 10% of total budgets; Child Support and First Five rely solely on operating revenues. Staff reported that $2.1 million in realignment dollars was successfully defended for core public health services.
- Public Safety: Includes Sheriff, Fire, Probation, District Attorney, Court of Special Services, and Public Defender. General fund contributions range from 47% (Probation) to 67% (Public Defender). Fire is self-sustaining. The Sheriff’s Department discussed a 50% increase in enforcement funding from the 2018-19 to 2019-20 budget. Questions were raised regarding in-car video installation for the entire fleet. Staff noted a "target-rich environment" for cannabis compliance and acknowledged a significant narcotics problem unrelated to cannabis, citing reduced capacity due to past cutbacks.
- Community Resources and Public Facilities: Includes Public Works, Community Services, Planning and Development, and Ag Commissioner/Weights & Measures. General fund contributions range from 2% (Public Works) to 41% (Community Services). The Planning and Development Director addressed permit application backlogs and staffing levels.
- Policy General Government: Includes General Services, Clerk/Recorder/Assessor, Auditor/Controller, Human Resources, Treasurer/Tax Collector, Northern Branch Jail Project, and Debt Service.
- General County Programs: Includes County Executive Office, County Council, Board of Supervisors, and General County Programs. Staff clarified that assessment appeal funds are for outside expert witnesses, not outside counsel.
- Expansion Requests: Staff outlined three tranches of expansion requests:
- 1. Pre-Workshop: Funded and included in the recommended budget (e.g., CEO management intern, climate action planning, farm stays, probation pretrial assessment, public defender staffing, Sheriff’s behavior science unit, and COBAM MDC replacement). 2. Post-Workshop: Addressed based on board and public input. 3. Outstanding Requests: Several requests remain unfunded for board consideration, including:
- Community Services: Library funding ($135,000), CCE Startup Capital ($750,000), and a countywide recreational master plan ($350,000).
- General Services: Real property agent ($126,000).
- Human Services: Business specialists for recruiting ($125,000) and FOP administration ($675).
- Public Works: Local share of 2019 storm costs ($1.3 million), maintenance funding for PCI ($5.5 million), and Thomas fire debris flow costs ($1.1 million).
- Sheriff: Main jail room consolidation, custody deputies (1,318 FTE request, pending CGL study refresh), data systems analyst ($141,000), records management system ($582,000), dispatch governance ($100,000), Chief Deputy Sheriff ($352,000), body-worn camera expansion ($647,400), and data center replacement ($1.43 million).
- Post-Workshop Items: Alternative commute options for employees and cannabis tax compliance audits ($175,000). Staff noted that requests for the South Coast Workforce Home Borrow Program and Veterans Memorial Building repairs were resolved without additional budgetary resources.
- Decision: No specific motions were passed during the presentation phase.
Agenda Item: Deliberation on One-Time Funds and Discretionary Revenue
- Discussion: The board deliberated on the allocation of approximately $1.086 million in one-time/discretionary funds, comprising unallocated cannabis tax revenues ($889,000), Program Stabilization Fund carryover ($171,800), and Emerging Issues Carryover Fund Balance ($24,700).
- Cannabis Enforcement: Supervisor Adams proposed allocating $889,000 to the cannabis enforcement team, arguing that cannabis revenue should be used for cannabis enforcement until the market stabilizes.
- Deferred Maintenance: Supervisor Adams expressed concern over the growing deferred maintenance backlog, noting a 50% increase in six years. He argued that the board must arrest the growth of this liability using general fund money rather than relying on one-time or state funds. He stated he would not support the budget if the board did not commit to a larger contribution to maintenance. Board members discussed the gap between current maintenance funding and the backlog of deferred maintenance. Suggestions included allocating a portion of excess cannabis revenues to deferred maintenance, raising the county sales tax by 1% (estimated to generate $7.5 million), and advocating for federal gas tax inflation adjustments (estimated to generate $6 million).
- Community Choice Energy (CCE): Staff reported that consultant drafts indicated a standalone CCE was potentially viable, with cumulative revenue sources of approximately $60 million over 10 years. Startup costs were estimated at $1.4 million. The board discussed the timeline, noting that forming a CCE would likely take until 2021. Supervisor Williams questioned the discrepancy between the cost of starting a standalone CCE versus joining an existing one (e.g., Monterey County). Staff noted that if the board proceeds with its own CCE, additional costs would be incurred, including technical studies and potential JPA staff hiring, which would likely occur in the next fiscal year. Staff mentioned that the Monterey option involves a greater financial obligation, potentially including a county contribution of approximately $6.5 million (loan guarantee or cash). Staff suggested that if the board does not proceed with its own CCE, funds could be monitored throughout the year to cover costs within existing budget lines. Board members debated the necessity of funding CCE startup costs to maintain timelines for an independent CCE versus joining an existing one. Estimates for necessary funding ranged from $250,000 to $430,000.
- Other Allocations: The board discussed allocations for:
- Cannabis Tax Compliance Audit: $175,000. Staff indicated it would likely be handled in-house or with outside assistance.
- Recreation Master Plan: $350,000 (to prepare for Proposition 68 grants).
- Libraries: $135,000. Staff explained the county’s matching strategy for library deficits in cities versus unincorporated areas.
- Planning Positions: Two additional positions were discussed for inclusion in the budget. Staff reported on the processing of approximately 117 cannabis applications, the addition of two staff members, and the need for two additional staff to manage appeals and applications.
- Alternative Commute Options: Estimates ranged from $50,000 to $100,000.
- Additional Requests: A board member proposed $35,000 for District Attorney office improvements and $40,000 for Animal Services facility improvements. Staff confirmed these were not previously included in the budget.
- Consensus Building: The board worked to allocate the available funds. It was noted that any overage in cannabis tax revenue would first backfill the cannabis tax compliance audit. The board agreed to allocate funds toward CCE planning, with the understanding that if the decision is made to join another CCE, the funds would not be spent on standalone startup costs.
- Motion: A motion was made to approve the budget recommendations (Items A through H).
- Second: The motion was seconded.
- Vote Outcome: The motion passed.
Agenda Item: County Executive Office - Redevelopment Agency Successor Agency Budget
- Discussion: The board considered recommendations regarding the fiscal year 2019-2020 recommended budget for the County of Santa Barbara as the successor agency to the former County of Santa Barbara Redevelopment Agency.
- Motion: A motion was made to move Items A and B.
- Second: The motion was seconded.
- Vote Outcome: The motion passed.
Failed 1–1 · in favor: Lavagnino
Agenda Item: Adoption of Fiscal Year 2019-20 Budget
- Discussion: The hearing began with an overview of the budget adoption process. Staff acknowledged the contributions of department heads, fiscal officers, the Auditor Controller’s office, and the budget and research team. The presentation provided context on the budget as the county’s operational plan, highlighting recent and ongoing commitments such as the Northern Branch Jail, Goleta Beach Parks replacement bridge, Koyama Solar Array, and the Santa Maria Levy. The Budget Director presented the recommended budget, noting that it proposes no service level reductions for the first time since 2009. Key financial points included:
- Total operating budget and expenditures of $1.14 billion.
- Revenue growth allowing for modest expansions.
- A slight reduction in pension costs compared to the previous year due to cost-sharing plans and union negotiations.
- Continued support for maintenance funding via the 18% formula, exceeding targets set in 2014.
- Use of one-time revenues and debt financing for major capital projects.
- Strategies for fiscal responsibility, including fully funding the strategic reserve and using cannabis revenue primarily for enforcement.
- Ongoing challenges cited included a tight labor market, state and federal mandates, and the need for technology improvements.
- Public Comment: Andy Caldwell, representing CoLab, presented comments on the budget. He stated that staff costs have risen from 40% to over 60% of the budget, which he characterized as unsustainable. He cited local economic data, noting high poverty rates in North County and a disconnect between government spending and the local economy. He argued that the oil industry is the primary sector capable of providing high-paying jobs to lift residents out of poverty and generate tax revenue. He criticized the budget for allocating over $1 million to climate-related initiatives (including CCE and employee commuting incentives) while facing a significant infrastructure maintenance debt. He stated that the road maintenance debt grows exponentially if not addressed and that the current budget does not adequately address this "gaping hole." He urged the board to redirect funds from redundant or superfluous items toward road infrastructure and maintenance debt.
- Staff Response: Jeff Rapwell, Budget Director, responded to comments regarding reserves and debt ratings. He confirmed that rating agencies consider the level of reserves (approximately 60 days of expenditures) when rating county debt. He noted that healthy reserves help maintain credit ratings and reduce financing costs, though the specific impact on the "needle" is determined by the rating agencies.
- Motion: A motion was made to increase tax compliance funding to $100,000 and add $75,000 to the CCE fund.
- Vote Outcome: The transcript indicates the vote was taken, but the specific outcome (passed or failed) is not explicitly stated in this segment of the text.