Meeting Summary
Present: 3-Hartmann, 5-Lavagnino, Williams, 4-Nelson
This summary was AI-generated to save you time. It may miss or misstate details, so verify against the official recording and the transcript.
At a glance
Policy and Executive Functional Group
- Staff presented a $52 million CEO budget with a request for a Chief Data Officer position and noted cannabis licensing is currently staffed by extra help.
- The County Counsel reported operating at high capacity due to litigation and property appeals, with no additional resources requested for the current surge.
- The Board noted inquiries regarding a Central Coast Public Bank feasibility study and a county employee housing study for further consideration without making motions.
- Staff indicated there is currently no plan for staff reallocation following the census and redistricting process.
General Government and Support Services Functional Group
- Staff outlined a $40 million General Fund contribution for the group, highlighting revenue increases for Clerk-Recorder-Assessor and General Services.
- The Treasurer-Tax Collector requested one management position for cannabis tax audits, while the Auditor-Controller presented a $90.5 million budget focused on the "Banner" ERP project.
- The Clerk-Recorder-Assessor detailed $3.06 million in costs for implementing the Voters Choice Act, noting existing grants cover current operations.
- General Services reported a $111 million maintenance backlog and a 20% vacancy rate, with specific projects including the Santa Barbara Jail upgrade and Fire Station 27 replacement.
Capital and Maintenance Projects
- Staff reported total unfunded potential projects across departments amount to approximately $669 million, with significant backlogs in Public Works, General Services, and CSD.
- The preliminary budget includes $10.3 million in 18% maintenance funding, $2.1 million in one-time funding, and $7.1 million in SB 1 funding.
- Staff stated that current Treasury guidance does not specifically qualify these projects for ARPA funds, with updated guidance expected in 3-5 weeks.
- Capital Obligation Programs are on track, with key hurdles being the Northern Branch Jail opening and the conclusion of the Public Safety Radio System protest.
General County Programs and Fund Balances
- Staff requested a $4.3 million appropriation for General County Programs, offset by $2.7 million in General Fund contributions, to fund jail operations and maintenance.
- Preliminary estimates for discretionary fund balances as of June 30, 2022, include $38.8 million in the Strategic Reserve and $15.3 million in Cannabis Funding.
- Staff provided updates on digital transformation initiatives, including remote work infrastructure upgrades, electronic signatures, and website modernization.
FY 21-22 Preliminary Budget Direction and Recommendations
- The Board agreed to treat up to 75% of annual cannabis revenue as ongoing for the next year's budget, with staff to return in December for further policy discussion.
- Decisions on most one-time capital projects were deferred pending ARPA funding eligibility, with an exception made to include $993,000 for the Floridale Bridge project.
- Supervisors expressed support for various departmental requests, including cannabis compliance staffing, criminal justice IT support, and the AOT program expansion.
- The Board identified the Equity Fund and General Liability set-aside as priorities and noted that current allocations for cannabis education and public health impacts were insufficient.
Closed Session
- No closed-session items were reported in the provided summary.
Full summary
Meeting Overview
- The Santa Barbara County Board of Supervisors convened on April 16, 2021, for a budget workshop regarding the Fiscal Year 2021–2022 budget. The Clerk of the Board called the roll, noting all members were present. An agenda addendum posted on April 12, 2021, was announced, allowing for discussion of budget items from agendas dated April 12–16, 2021. The Policy and Executive Functional Group was moved to the top of the agenda, followed by the General Government and Support Services Functional Group. The County Executive Officer (CEO) reported no items for the morning session.
Agenda Item: Policy and Executive Functional Group
- Budget Overview: Staff presented a five-year trend analysis indicating the group receives 25% of the county’s total General Fund Contribution (GFC). Key drivers for GFC increases include cannabis revenues, 18% maintenance funding, and Northern Branch Jail operations. A significant spike in operating revenue is anticipated due to approximately $43 million in American Rescue Plan Act (ARPA) revenues, which are not currently allocated in the preliminary budget pending Treasury guidelines.
- Board of Supervisors Budget: Staff presented a flat operating budget and GFC. Full-Time Equivalent (FTE) counts decreased slightly from 20 to 19.6 due to staff conversions to extra help. Anticipated accomplishments include COVID-19 response and advocacy for tenant and business relief. No service level reductions or position increases were proposed.
- County Executive Office (CEO) Budget: The CEO presented a $52 million operating budget, with over 76% allocated to risk management funds. The GFC is $7.3 million with 41 FTEs. One position expansion was requested for a Chief Data Officer to coordinate data processes, open data, and performance dashboards. Staff noted that cannabis licensing staffing is currently handled by extra help, with potential future requests for permanent positions.
- Office of County Council Budget: County Counsel presented a budget for 43 FTEs. The office reported operating at high capacity due to litigation (including Southern California Edison indemnification and Northern Branch Jail damages), a surge in property assessment appeals, and legal support for COVID-19 response. Two additional attorney positions were added in September 2020. No additional resources were requested for the current surge.
- Public Bank Feasibility Study: Supervisor Hartmann raised a Board Inquiry Form regarding participation in a Central Coast Public Bank viability study. Staff estimated the cost to Santa Barbara County at $20,000–$25,000 if all five participating counties join. The Board noted the item for further consideration without making a motion.
- County Employee Housing Study: Supervisor Williams proposed a study on the feasibility of creating housing for county employees to aid workforce retention and reduce traffic. Staff and the County Counsel noted this is primarily a policy issue within the Board’s authority. The Board noted the item for further discussion without making a motion.
- Redistricting: Chair Nelson inquired about staff reallocation following the census and redistricting process. Staff indicated there is currently no plan and that any reallocation would be at the Board’s discretion, potentially for next year’s budget.
Agenda Item: General Government and Support Services Functional Group
- Budget Overview: Staff presented a summary for the group, which includes the Auditor-Controller, Clerk-Recorder-Assessor, General Services, Human Resources, Treasurer-Tax Collector, Public Administrator, Debt Services, and Northern Branch Jail Construction. The group receives 13% of the total GFC ($40 million) and accounts for 8% of countywide FTEs (363 positions). Revenue trends showed increases for Clerk-Recorder-Assessor (state grants) and General Services (internal service funds and federal revenue). Expenditures increased for General Services ($16 million over five years) and Clerk-Recorder-Assessor ($3 million).
- Treasurer-Tax Collector Budget: The department presented a budget focused on billing, collecting property taxes, and administering debt and veterans services. The department collected 99% of the secured roll. A new cashiering system implementing Check 21 is scheduled to go live on May 10. One management-level position was requested to oversee cannabis tax audits and manage a contract with a CPA firm.
- Auditor-Controller Budget: The department presented a $90.5 million operating budget, 90% funded by the General Fund. Key initiatives include the "Banner" project (Business Application Needs Assessment) to replace homegrown systems with an enterprise resource planning system, implementation of GASB 84 accounting standards, and distribution of $1 billion in collected property tax to local agencies.
- Clerk-Recorder-Assessor-Elections Budget: The department presented an operating budget of over $22 million. Key topics included redistricting for the June 2022 primary, impacts of Proposition 19, and the Governor Recall Election. Staff detailed costs for implementing the Voters Choice Act (VCA): $1,910,000 in one-time costs and $1,155,000 in ongoing costs. Staff noted that existing HAVA and Voting System Replacement Act grants are fully budgeted for current operations, with no additional state allocations announced for VCA implementation.
- Human Resources Budget: The department presented an $8.8 million operating budget with no service level reductions or expansion requests. Key initiatives include labor relations (five collective bargaining agreements ending in June 2021), implementation of the Race, Equity, and Inclusion (REI) framework, and workplace flexibility strategies. Performance metrics indicated a projected employee retention rate of approximately 90%.
- General Services Budget: The department presented an operating budget of approximately $64 million and a capital budget of $22.7 million. Key points included a 20% vacancy rate, 70 active capital projects, and a maintenance backlog estimated at $111 million. The department exceeded its 1% financial resiliency goal by $287,000. Specific projects include the Santa Barbara Jail upgrade, Public Safety Radio Network, and Fire Station 27 replacement.
- Capital and Maintenance Projects: Staff from General Services, Community Services Department (CSD), and Public Works presented data on deferred maintenance and funding sources.
- Funding: The preliminary 2021-22 budget includes $10.3 million in 18% maintenance policy funding, $2.1 million in one-time funding, and $7.1 million in SB 1 funding.
- Backlog: Public Works reported a $304 million backlog; General Services reported $111 million; CSD reported ~$56 million.
- Unfunded CIP Projects: Total unfunded potential projects across departments are approximately $669 million.
- ARPA Eligibility: Staff stated that current Treasury guidance does not specifically qualify these projects, with guidance expected in 3-5 weeks. Preliminary estimates for lost revenue are ~$25 million across all funds.
- Borrowing: Staff indicated that Capital Obligation Programs (COPs) are on track, with key hurdles being the Northern Branch Jail opening and the conclusion of the Public Safety Radio System protest.
Agenda Item: General County Programs and Fund Balances
- Budget Overview: Staff presented a requested appropriation of $4.3 million for General County Programs, offset by approximately $2.7 million in General Fund contributions. Objectives include funding Northern Branch jail operations, allocating 18% maintenance funding, and completing KPMG reviews.
- Fund Balances: Staff outlined preliminary estimates for discretionary fund balances as of June 30, 2022, including:
- Behavioral Wellness: ~$5.7 million.
- Cannabis Funding: $15.3 million under the proposed policy.
- Strategic Reserve: $38.8 million.
- Other balances for disaster recovery, new jail operations, and unforeseen expenses.
- Digital Transformation: Staff provided an update on the Business Applications Needs Assessment (BANA) project and IT initiatives, including remote work infrastructure upgrades, electronic signatures, Microsoft Office 365 implementation, and website modernization.
Agenda Item: FY 21-22 Preliminary Budget Direction and Recommendations
- Cannabis Revenue Policy: The Board discussed the proposed policy of treating 75% of annual cannabis revenue as stable/ongoing and 25% as one-time, with a prudent reserve of 25% of annual revenue. The Board agreed to consider up to 75% of the annual cannabis revenue as ongoing for the next year's budget, with staff to return in December to discuss the policy further.
- Capital Projects and One-Time Requests: The Board agreed to defer decisions on most one-time capital projects until more information is available regarding ARPA funding eligibility. An exception was made for the Floridale Bridge project; the Board agreed to include the one-time amount of $993,000 in the recommended budget due to timeliness concerns. Staff was directed to wait on other one-time requests pending the ARPA funding determination.
- Departmental Direction: Supervisors provided direction on various departmental requests:
- Cannabis Compliance: Support was expressed for the Treasurer-Tax Collector’s cannabis tax collection staff. Debate occurred regarding the Cannabis Compliance Team expansion, with some support for an additional sheriff deputy rather than a full team expansion.
- Criminal Justice: Support was voiced for the Public Defender’s IT and fiscal staffing, the Pretrial Supervision Program, the e-SCARS child abuse reporting project, and body-worn cameras for the Sheriff’s Department.
- Planning and Development: Support was provided for the Administration Division Enterprise Leader position.
- Infrastructure and Housing: Support was provided for the Florida Dale Bridge project and the AOT (Assisted Outpatient Treatment) program expansion. The Public Bank study and housing assets study were discussed, with staff proposing a phased approach for initial research.
- Public Health: Discussion noted that current allocations for cannabis education and public health impacts ($100,000) were insufficient.
- Other Items: The Equity Fund and General Liability set-aside were identified as priorities. The Board of Retirement reported a year-to-date return of nearly 18%. Closed captioning for board chambers was confirmed as part of a planned technology upgrade.
Motion and Vote
- Motion: Supervisor Lavagnino moved to adopt recommended actions A through D, stating that the board had provided sufficient direction to staff.
- Second: Supervisor Hartmann seconded the motion.
- Vote: The motion carried.
- Outcome: Passed.
Next Steps and Adjournment
- Staff will compile the final schedules for the recommended budget based on the board's direction. The recommended budget is scheduled for release in May, with final budget hearings set for June 8 and potentially June 10. The Chair thanked the staff and budget team, and the meeting was adjourned. The next session is scheduled for Tuesday, April 20th, in Santa Barbara.