Meeting Summary
Present: 3-Hartmann, Katz, 4-Nelson, 5-Lavagnino, Williams
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
General County Programs Department Presentation and Budget Overview
- Staff presented a $5.6 million operating budget for fiscal year 2023-24 funded primarily by general fund contributions.
- Key objectives include funding Northern Branch Jail operations, increasing maintenance funding to $15 million, and expanding training programs.
- Policy changes in the preliminary budget allocate funds for storm recovery, labor cost set-asides, and an advance construction reserve.
- Staff confirmed no planned service level reductions while projecting a strategic reserve balance of approximately $44 million.
Cannabis Revenue Update and Funding Swaps
- Declining cannabis tax revenues due to market oversupply necessitate swapping $6.2 million in allocations to other general fund sources.
- The proposed swap moves library funding, long-range planning positions, and various park set-asides away from cannabis revenue streams.
- Staff recommended utilizing the unallocated emerging issues fund balance rather than transferring cannabis revenue to balance expenses.
- The Board discussed applying the "Lavanino rule" to restrict future cannabis revenue usage to one-time expenses only.
Cannabis Tax Structure Review
- Staff analyzed alternative tax structures, comparing the current gross receipts tax against square footage models used in other jurisdictions.
- Transitioning to a square footage tax would require a ballot measure due to existing ordinance limitations.
- Board members suggested shifting to a per-ounce or per-pound model to align with state tracking systems and support operator viability.
- The Board directed staff to conduct further analysis on alternative tax models with a goal of presenting a new measure by November 2024.
Revenue Measures: Sales Tax and Polling
- Staff projected that a 0.25% sales tax increase would generate $3.77 million, while a full 1% increase could double current collections to $30 million.
- Discussion covered election timelines for March or November 2024 and the voting thresholds required for general versus special taxes.
- Supervisors debated whether a potential measure should be countywide or limited to unincorporated areas.
- The Board directed staff to conduct polling research to gauge public support before deciding on ballot measures.
Flood Control Assessment
- Staff presented information on a potential flood control assessment for the Montecito area following recent weather events and high inquiry volumes.
- Discussion focused on legal responsibilities for maintenance on easements and debris removal on private property.
- Board members questioned the feasibility of utilizing funds for clearing waterways on private property without dedicated easements.
- Legal counsel clarified that benefit assessments can be approved via a majority protest process rather than a direct vote in favor.
Departmental Budget Presentations
- The Board of Supervisors Office presented a $4.1 million budget with goals to support homeless services and advance broadband capabilities.
- The County Executive Office outlined a $65.8 million budget including initiatives for the Workday ERP system and a countywide DEI plan.
- County Counsel requested one additional Deputy County Counsel position at a cost of $210,000 for labor relations advisory support.
- All three departments reported no proposed service level reductions despite some net position changes due to reorganization or retirements.
Budget Priorities and Capital Improvement Projects (CIP)
- Supervisors identified high-priority items including domestic violence victim-witness support, public defender staffing, and mental health bed capacity.
- Concerns were raised regarding the geographic distribution of CIP funds, with data showing approximately 75% allocated to the South Coast.
- Proposals included reallocating $1.5 million from South County Trails reserves to fund a North County multi-path trail match.
- Staff reiterated that identifying priorities does not guarantee funding due to existing revenue constraints.
Library Funding Discussion
- One board member suggested implementing a countywide library tax to allow the County to return general fund contributions to cities.
- The proposal aims to create a more equitable funding structure where municipal services are funded by municipal taxes.
- No formal motion was made regarding the adoption of a countywide library tax during this discussion.
Strategic Reserve and Fiscal Status
- The Board reviewed the strategic reserve status, noting it is currently at $44 million or 8% of the total budget.
- Members discussed the importance of maintaining this reserve while simultaneously addressing unfunded needs across various departments.
- No formal motion was made regarding changes to the strategic reserve levels during this segment.
Motions and Decisions
- A motion was made and seconded to approve staff recommendations regarding the budget workshop items labeled A through E.
- The Board voted in favor of the motion, resulting in a passed outcome for the approved items.
Closed Session
- The Board convened to discuss three existing litigation cases and one case of anticipated litigation with significant exposure.
- No reportable action was taken during the closed session regarding these legal matters.
Full summary
General County Programs Department Presentation and Budget Overview
- Staff presented an overview of the General County Programs Department, detailing operating expenditures and debt service for fiscal year 2023-24 at $5.6 million, funded primarily by general fund contributions. Key objectives for the upcoming fiscal year include funding Northern Branch Jail operations, increasing maintenance funding to $15 million, continuing KPMG reviews, and expanding "Innovate SBC" training. Staff noted no planned service level reductions. The presentation outlined discretionary fund balance accounts, projecting an adjusted balance of approximately $72 million after allocations, with $44 million designated for the strategic reserve. Specific policy changes in the preliminary budget include adding $3.3 million to the 18% maintenance plan, earmarking $7 million for an advance construction reserve, adding $3.5 million to the strategic reserve, shifting $14 million to the disaster recovery account for storm recovery, and allocating funds for labor cost set-asides and Northern Branch Jail operations. Staff clarified that final allocation of the storm recovery funds depends on ongoing assessments with Public Works and FEMA reimbursements.
Cannabis Revenue Update and Funding Swaps
- Staff presented a special issue regarding declining cannabis tax revenues due to market oversupply and price drops, projecting insufficient revenue to cover previously approved allocations for the upcoming fiscal year. Staff recommended swapping $1.2 million in ongoing costs (library funding and long-range planning positions) and $5 million in one-time allocations (parks, trails, open space set-asides, and a Santa Maria recreational match) from cannabis revenue to other general fund sources. This action is intended to balance fiscal year 2023-24 expenses without cutting services. Staff confirmed the use of unallocated emerging issues fund balance rather than transferring cannabis revenue for this swap. The Board discussed the "Lavanino rule," a policy restricting cannabis revenue usage to one-time expenses, which is being applied to manage current expenditures funded prior to that policy change.
Cannabis Tax Structure Review
- Staff presented an analysis of alternative cannabis tax structures, comparing the current gross receipts tax with square footage (canopy) taxes used in other jurisdictions. Staff noted that transitioning to a square footage tax would require a ballot measure due to existing ordinance limitations. Data on tax rates and revenue impacts in other counties was provided, noting that many have reduced rates or suspended taxes to support industry viability. Estimates for potential revenue under a hypothetical square footage tax model were presented, with staff cautioning that such a transition could impact operator viability. Public comment included a proposal for a temporary cannabis tax holiday. Board members discussed the complexity of the current gross receipts tax and suggested shifting to a per-ounce or per-pound tax model to align with state tracking systems. The Board expressed support for staff conducting further analysis on alternative tax models, with a goal of potentially presenting a new measure by November 2024. No formal motion was made regarding the tax structure change.
Revenue Measures: Sales Tax and Polling
- The Board discussed potential revenue measures, specifically a sales tax increase to address public safety and other county needs. Staff explained that the county currently collects approximately $15 million annually from its 1% local share of the 7.75% sales tax. Projections indicated that a 0.25% increase would generate an additional $3.77 million, while a full 1% increase could double current collections to approximately $30 million. Staff outlined two election timelines for 2024: the March primary or the November general election. It was clarified that a general tax requires a simple majority of voters, while a special tax requires a two-thirds vote; both require a four-fifths vote of the Board of Supervisors to place on the ballot. Supervisors debated whether such a measure should be countywide or limited to unincorporated areas and discussed the feasibility of conducting polling research to gauge public support before making decisions on ballot measures. The Board directed staff to conduct polling research.
Flood Control Assessment
- Staff presented information regarding a potential flood control assessment, specifically for the Montecito area, following high volumes of inquiries after recent weather events. The presentation outlined the current benefit assessment structure and noted that a previous countywide measure proposed in 2019 failed to meet the two-thirds voter threshold. Current efforts involve working on a Montecito flood mitigation master plan, with Phase One expected to conclude in March 2024. Discussion ensued regarding legal responsibilities for maintenance on easements and debris removal on private property. Board members questioned whether funds could be utilized for clearing waterways on private property if easements were dedicated and discussed the necessity of demonstrating a direct nexus between revenue generation and service delivery. One board member suggested a countywide approach rather than a localized one to address needs in the North County. Legal counsel clarified that benefit assessments can be approved via a majority protest process rather than a direct vote in favor. No formal motion was made regarding the assessment.
Departmental Budget Presentations
- Board of Supervisors Office: Staff presented a preliminary budget totaling $4.1 million, fully funded by the general fund, with 18.875 authorized FTE positions and a projected decline of 0.75 FTE due to retirements and conversions. Key goals included maintaining fiscal sustainability, supporting homeless services, advancing broadband capabilities, and prioritizing infrastructure needs. No service level reductions were proposed.
- County Executive Office: Staff presented a budget totaling $65.8 million, with a general fund contribution of $7.3 million. The office comprises County Management and Risk Management programs. Key initiatives included the implementation of the Workday ERP system, the Santa Barbara Broadband Strategic Plan, and a countywide Diversity, Equity, and Inclusion (DEI) plan. The presentation noted a net reduction of four positions due to reorganization and the transition of the Office of Emergency Management to the Fire Department. No service level reductions were proposed.
- County Counsel: Staff presented a budget totaling approximately $12.4 million ($10.6 million from the general fund) for 45 staff members, including 32 attorneys. A single expansion request was made for one Deputy County Counsel position at a cost of $210,000 to provide advisory support on labor relations and civil service matters. No service level reductions were proposed.
Budget Priorities and Capital Improvement Projects (CIP)
- Supervisors engaged in detailed discussion regarding specific budget priorities and the allocation of discretionary funds, including Proposition 172 revenues. Topics included funding for DA victim-witness services, LLP supervisors, transportation electrification, sustainability grant writing, veteran services, library operations, Los Olivos restroom facilities, tenant assistance, HR positions, County Council, Civic Spark, pavement indexing, warming centers, and various Sheriff's Department initiatives. Supervisors identified high-priority items for staff to consider, including domestic violence victim-witness support, public defender staffing, street lighting in Isla Vista, mental health bed capacity, a Racial Justice Attorney Supervisor position, sustainability grant writing positions, and the creation of a rental assistance fund. Concerns were raised regarding the geographic distribution of CIP funds, with data indicating approximately 75% are allocated to the South Coast. One board member proposed reallocating $1.5 million from a reserve set aside for South County Trails to fund the Modoc Road multi-path trail match to free up funds for North County capital projects. Another board member proposed a future policy requiring departments to fill funded vacant positions before requesting new expansions. Staff reiterated that identifying priorities does not guarantee funding due to revenue constraints. No formal motions were made to reallocate funds or change staffing policies during this segment; items were noted for further consideration.
Library Funding Discussion
- Discussion included the library tax, with one board member suggesting a countywide library tax that would allow the County to return general fund contributions currently used for city libraries back to the cities. This was framed as a way to create a more equitable funding structure where municipal services are funded by municipal taxes. No formal motion was made regarding library funding.
Strategic Reserve and Fiscal Status
- The Board reviewed the status of the County's strategic reserve, noting it is currently at $44 million, representing 8% of the budget. Members discussed the importance of maintaining this reserve while addressing unfunded needs across various departments and regions. No formal motion was made regarding the strategic reserve.
Motions and Decisions
- Motion: A motion was made to approve the staff recommendations regarding the budget workshop items (labeled A through E in the transcript context).
- Second: The motion was seconded.
- Decision: The Board voted in favor of the motion.
- Outcome: Passed.
Closed Session and Adjournment
- The Board convened in closed session to discuss three existing litigation cases (Murray v. County of Santa Barbara, Inmates of Santa Barbara County Jail v. Sheriff, and Joyce Studley v. County of Santa Barbara) and one case of anticipated litigation with significant exposure. No reportable action was taken during the closed session. The meeting concluded with an adjournment until May 2nd.