Receive report on 2023-24 year-end budget variances and adopt budget resolution to adjust final year-end appropriations for overdrawn budget units. (No general fund impact) (4/5 vote required) (Haynes/Liddicoet)

Government Code Section 29009 requires that the County end the year with a balanced budget, whereby funding sources are equal to financing uses. On a countywide basis, fiscal year 2023-24 operating expenditures (excluding Capital Improvement Projects) ended the year $108.6 million less than budgeted amounts (a positive variance), while operating revenues ended the year $38.5 million less than budgeted amount (a negative variance). Altogether, combined year-end operating expenditures and revenues reflect a net positive variance of $70 million relative to budgeted amounts, as reflected in Attachment A. The majority of the positive variance is attributed to project and program delays and vacant positions throughout many County departments. 

While the overall County budget ended fiscal year 2023-24 in balance, budgetary control is established at the budget unit level, and year-end expenditures for several budget units exceed current appropriations. As a result, year-end appropriation adjustments are required to bring these budget units into balance. These appropriation adjustments are reflected in Exhibit 1 to Attachment B. 

While Board action is required only for those budget units that have overdrawn current appropriations, this year-end variance analysis report examines all department variances whether positive or negative. Reviewing all year-end budget variances can be helpful in identifying budgetary trends or operational impacts that may need to be monitored. It also provides the opportunity to review and consider budgetary practices that may be out of line with actual results.

The sections below provide narrative descriptions of the most significant department year-end variances. Emphasis is on explaining departments’ net variance, or the combined result of how actual revenues and expenditures compare to budgeted amounts.

Agriculture - $261,780 Positive Net Variance
Agriculture ended the fiscal year with a net positive variance of about $262,000, primarily due to salary savings and some additional revenues over expected. Salary savings of about $180,000 are a result of an Administrative Clerk and Ag & Standards Tech position which were vacant for significant portions of FY2023-24, as well as decreases in Extra Help as field-walking and dog team programs saw decreased usage. Revenue increases of about $100,000 were realized due to increases in Weights & Measures out of county inspections and some state contracts. Additionally, only $62,000 was spent on the Ag Building Relocation project this year, which created significant offsetting variances in the Ag Building Replacement Fund. All of those funds are expected to be utilized in future fiscal years and will be appropriated from fund balance as needed. Finally, the County was required to send approximately $200,000 of General Fund to the Agriculture Building & Equipment Replacement Funds due to the state-mandated MOE payment. Therefore, the vacancy savings mentioned above were not fully realized and was instead shifted to future replacement costs for the department.

Assessor/Clerk Recorder/Elections - $1,796,720 Positive Net Variance
The Assessor/Clerk Recorder/Elections Department ended the fiscal year with a positive net variance of approximately $1.8 million due to savings throughout the department’s divisions. 

Revenues in the Assessor’s division increased due to assessment and supplemental property tax fees being $164,000 over the original budgeted amount.  Additionally, the Assessor’s division experienced vacancies in the unit that include an Assessor Clerk Recorder Specialist, two (2) Deputy Assessors, a Program Manager, and three (3) Auditor Appraisers that resulted in savings of approximately $447,000.  Additional savings include ERP, Fleet, and Connectivity internal charges being less than budgeted and savings related to the Commercial Appraisal Software as a less expensive option was utilized.
 
The Elections division ended the year with a positive variance of $198,000.  This is due to four jurisdictions having billable elections due to a recall and local measures that include the City of Woodland, Davis Joint Unified School District, Woodland Joint Unified School District, and the Sacramento County Board of Education, resulting in additional revenues.  Additionally, the Elections office received donations to the Elections YES fund of $26,000 which were not included in the Adopted budget.  These increased revenues were partially offset by an increase in extra help cost to meet service needs. 

The Clerk Recorder’s division ended the year with a positive variance of $810,000. Revenues in the division were over budget due to higher than anticipated recording fee revenues of $274,000 and investment earnings ($68,000). Adding to the surplus in the unit are savings in salaries and benefits due to two (2) Assessor Clerk Recorder Assistant and two (2) Assessor Clerk Recorder Specialists vacancies resulting in $136,000 in savings. Lastly, the Clerk Recorder’s Imaging project was entirely budgeted in FY2023-24, however the last two phases of the project were not completed resulting in lower than budgeted expenditures. 

Board of Supervisors - $60,061 Positive Net Variance
The Board of Supervisors ended the fiscal year with a positive net variance of $60,061 due to savings in Salaries and Benefits ($114,000) related to vacancies experienced throughout the fiscal year. A portion of this savings is being offset by an overage in Services and Supplies ($56,000) related to higher than anticipated Training, Rent and Leases and Professional Services expenses.

Capital Improvement Program - $15,808,773 Positive Net Variance
The Capital Improvement Program (CIP) ended the fiscal year with a net positive variance of $15.8 million.

A sizable portion of the surplus in this program is related to the Knights Landing Park ($5.8 million) and Knights Landing Levee projects ($2.9 million). The entire cost of the Knights Landing Park was budgeted; however, many expenditures were incurred during the 2022-23 fiscal year, leading to a sizable expense savings ($3.2 million).  Additionally, the project received an unbudgeted transfer from the American Rescue Plan Act ($2.6 million). The Knights Landing Levee project is a multi-year project that has been rebudgeted in the current fiscal year.

The Leinberger project concluded the fiscal year with a negative net variance of $5.2 million due to receipt of a final retention payment from the state that was not budgeted.

Facility Capital Projects ended the year with a $560,052 positive net variance. Timing issues related to several countywide roofing projects along with delays in the Agriculture Relocation project resulted in expenditure savings of $1.2 million. 

The South Davis Library Project also concluded the year with a positive net variance of $132,000 due to unanticipated interest earnings. This savings will be available for reappropriation in future budget years as the project progresses.

A small negative net variance ($52,916) was experienced in the Yolo Library Replacement Project, due to the delayed arrival of an audio-visual system and the budgeting of construction contingency. The project experienced a loss of revenue due to negative interest earnings. There is adequate fund balance available to balance and close the unit.

It should be noted that many of the County’s capital improvement projects are multi-year in nature. As such, it is not expected that the entire project budget will be expended in a given fiscal year.

Child Support Services - $14,607 Positive Net Variance
Child Support Services ended the fiscal year nearly balanced, with a slight positive variance due to timing of payments/receipts. There were significant savings as a result of staff turnover, but this allowed for less staff time to be reimbursed through State & Federal revenues. Additional expenditure decreases were seen in a few operational accounts, also relating to smaller reimbursements.

Community Services - $1,796,779 Positive Net Variance
The Department of Community Services ended the fiscal year with a positive net variance of approximately $1.8 million, with approximately $1 million of that positive variance existing in general fund units.

The Planning Division ended the fiscal year with approximately a $800,000 positive variance. This is due to several factors, but notably the division received about $1 million more in revenue from charge for service accounts and grants more than budgeted. This is due to receiving state grant reimbursements that were budgeted in different fiscal years and changing the methodology for how staff time is charged to other units. Operational spending was also significantly under budget as cannabis applications were received significantly lower than projected.

The Cannabis Division ended the fiscal year with approximately a $700,000 positive variance. This was due to not utilizing the MOE with the Sheriff’s Office, resulting in a decrease of about $200,000 in expenditures. Additionally, there were significant additional revenues due to interest earnings of about $250,000 which were unbudgeted. The division also received about $200,000 more than expected from illegal cannabis operations, which go into a restricted account and are unavailable as general-purpose revenues in the unit.

The Climate Sustainability Division ended the fiscal year with approximately a $240,000 positive variance. This is due to the division not using all of the carryover appropriation for professional services and other minor underspending throughout the unit.  

Cache Creek ended the fiscal year with an approximate $340,000 surplus. This is due to significantly lower expenditures than expected, due in part to grants not proceeding in the fiscal year. However, there was also a $230,000 savings in salary and benefits due to time not being charged into the unit as expected and about $200,000 in savings from underutilizing operational funding – specifically in building maintenance and professional service contracts. Additionally, while intergovernmental revenues were not received that aligned with grant expenditures, interest earnings were well above budget ($200,000) as were revenues from gravel fees ($65,000). Due to this, fund balance usage was not needed as anticipated.

The Roads/Public Works division ended the fiscal year with a net negative variance of about $900,000. This is largely due to the timing of projects and when reimbursements are received versus when funds are spent. The division budgets the total cost for all projects in the first year of their implementation, even though the majority last over multiple years, which explains why only a fraction of the budget was actually received and spent. Additionally, road permit revenue did come in about $150,000 under budget.

The Integrated Waste Management Enterprise Fund (IWM) ended the year with a $600,000 negative net variance. This is due entirely to the recordation of the Closure/Post-Closure adjustment which is usually performed after year-end reports are submitted. It is a requirement by the Governmental Accounting Standards Board (GASB) but not budgeted in the fiscal year. Without that adjustment, IWM would end the fiscal year with an $7.5 million positive variance due to an additional $1.5 million in revenues over budget from stronger than expected receipts in sanitation services, recycling electronics, and franchise fees. Additionally, there were expenditure savings of about $3 million for delayed capital projects and $2 million in operational contracts that will be paid in future years.

County Administrator’s Office - $359,747 Negative Net Variance
The County Administrator’s Office ended the year with a negative net variance of approximately $360,000. The majority of the CAO’s units including, but not limited to, CAO operations, the Office of Emergency Services, Grand Jury, Diversity, Equity and Inclusion and Housing Assistance concluded the year with a positive net surplus of $1.2 million. This surplus is the result of a series of vacancies throughout the year, savings due to delays in the timing of grant funded programs, and receipt of unanticipated revenues throughout the programs CAO manages.  The entirety of this savings is being offset by the operating results of Yolo Electric, which concluded the year with a negative net variance of $1.5 million.

The Yolo Electric variance is being largely driven by unanticipated rate increases in the market for energy.  This increase, paired with higher than anticipated depreciation costs, caused the program to experience a deficit.  The office plans to rectify the negative fund balance through the Yolo Electric true-up process in the 2024-25 fiscal year.

County Counsel - $194,229 Positive Net Variance
County Counsel ended the fiscal year with a positive net variance of approximately $190,000, primarily due to decreased Salary and Benefit expenditures as a result of staff turnover and new staff earning lower salaries than longer-tenured employees. Additionally, the department was under budget by $50,000 in revenues due to decreased usage in the Roads & Landfill funds which reimburse the General Fund for Counsel’s time.

County Service Areas - $647,068 Positive Net Variance
County Service Areas (CSA) ended the fiscal year with a positive net variance of $650,000.

The CSA Admin unit ended with no expenditures or revenues. It was originally budgeted to house all costs associated with CSA Management, and revenue would be derived from the CSAs paying for their share of costs. However, this methodology shift did not occur due to turnover with the CSA Manager position during the fiscal year, and all CSA Management costs were instead directly allocated to the individual CSAs.

North Davis Meadows Water ended with a positive variance of about $30,000, but under spent expenditures by over $8 million. This is due to the grant project being fully budgeted and funded, but not having started as anticipated in the fiscal year. Future years will see spending as the project is more fully implemented.

Wild Wings Water ended the fiscal year with a positive variance of about $200,000, but under spent expenditures by almost $1 million. This is due to the project being underway but not fully complete by the end of the fiscal year. This is a grant-funded project and will continue into future fiscal years.

The Wild Wings Golf unit came in slightly under budget in expenditures due to the cessation of the management contract for the golf course mid-year. Savings from this contract ending were used to pay for temporary staffing, limiting the variance. Also, revenue came in under prior years due to fewer green fees being collected. Overall, this created a $20,000 positive variance in the fund.

Countywide - $52,260,107 Positive Net Variance
The Countywide department ended the fiscal year with a positive net variance of $52.3 million, due primarily to lower than anticipated expenditures in the American Rescue Plan ($34 million), savings in Pension funding ($6.5 million) and Measure K Cannabis Tax ($2.8 million), along with an increase in development impact fee revenues ($705,000) and an unanticipated growth allocation and expense savings ($1.34 million) in the Community Corrections Partnership (CCP).  As they have done in previous fiscal years, the CCP voted to utilize this growth allocation increase to build their fund balance and prepare for future volatility within their funding stream.  The Accumulated Capital Outlay fund experienced lower than anticipated expenditures and higher than anticipated revenues, resulting in a $2.1 million net positive variance.

These savings are being offset in part by a $1.2 million negative net variance in the Public Safety MOE.  Expenditures in that unit exceeded on budget by $715,000 due to higher than anticipated electrical and building maintenance costs.  The unit also received negative interest earnings ($460,000), increasing the variance.  The Public Safety MOE was established as a result of the implementation of Prop 172, and provides a Public Safety threshold of minimum funding, known as a Maintenance of Effort (MOE).  The current County interpretation of this threshold of funding requires the County General Fund to finance expenditures associated with vehicle purchases, vehicle maintenance, emergency equipment repairs, building maintenance, IT Charges, cost-plan, or A-87 charges, and 50% of public liability insurance separate from the operating budgets of the District Attorney and Sheriff’s operating budgets.

Countywide Revenues

Countywide revenues, which support the general fund, exceeded budget by 5.93% or $5.8 million. Most of this positive variance is related to $3.4 million in residual property tax distributions from the Chula Vista fund that was used to fund contribution to the General Reserve. General Fund Property Tax revenues were lower than anticipated by $209,000, however, Sales Tax earnings exceeded budget by $862,000. The continued slow housing market generated $262,000 less than anticipated revenue in Document Transfer Taxes, while Transient Occupancy Taxes also saw a reduction of $118,000 from budgeted amounts.  Offsetting some of this lost revenue was higher than anticipated Franchise fees ($106,000), and interest earnings ($910,000).

Unanticipated revenues were also received, including $151,000 in State Mandated Cost Reimbursement, $327,000 in State Covid Reimbursement, $75,000 in Local Assistance and Tribal Consistency federal funding. 

Debt Service - $178,721 Positive Net Variance
Debt Service ended the fiscal year with a positive net variance of $179,000 primarily due to higher than budgeted revenues received for the 2020 Leave Revenue Bonds, which the County utilized to purchase both 100 W. Court Street and 25 N. Cottonwood in Woodland. These additional revenues will fall to fund balance to be utilized as the charges to the departments occupying those departments will begin to reduce in the coming fiscal years.

District Attorney - $7,530,684 Positive Net Variance
The District Attorney’s Office ended the fiscal year with positive net variance of $7.5 million due to a considerable surplus in the Consumer Fraud and Environmental Protection unit ($6.2 million). The timing of settlements for cases within this unit are extremely difficult to predict.  A case the program had been working on for several years concluded during the fiscal year and received a sizeable payout of almost $5 million.  The unit also experienced vacancies throughout the year ($411,000), savings in Services and Supplies ($87,000), and additional state and federal revenues related to an ongoing investigation ($421,000).  The unit also received additional interest earnings due to the size of the settlement ($500,000), adding to positive variance.

Criminal Prosecution ended the fiscal year with a positive variance of approximately $886,000.  Though the division experienced large expense savings due to vacant positions and lower than anticipated Information Technology contracting costs ($36,000), grant related revenues were $325,000 lower than anticipated. Several of the division's grants reimburse expenditures related to Salary and Benefits, and given the ongoing vacancies experienced in the division, many of those expenses were not incurred, and thus the department was unable to draw down grant reimbursement as budgeted.  

Financial Services - $659,845 Positive Net Variance
The Department of Financial Services ended the fiscal year with positive net variance of approximately $660,000 primarily due to salary savings from various vacancies and delays in hiring throughout the year, particularly in the Accounting, Administration, and Audit divisions. Overall, the department was $150,000 under budgeted revenues, but this was due largely to vacancies and lower costs in Treasury, leading to less reimbursement through the Treasury Pool.

General Services - $1,022,524 Positive Net Variance
The General Services Department ended the fiscal year with a positive net variance of approximately $1.0 million due to surpluses in the majority of the department’s units. 

The Facilities division ended the year with a positive variance of $731,000. Much of this variance can be attributed to certain capital projects not being fully completed by the end of the fiscal year due to staffing shortages and the need for additional engineering ($1,176,000).  Additionally, services and supplies ended the year in a surplus ($591,712) due to standing purchase orders for the maintenance of buildings and the divisions allocation to avoid budget stops for items in process being included in the variance.  Offsetting these expenditure savings are increases to the unit’s salaries and benefits. Included here are unbudgeted expenses for leave buyouts, overtime expenses, and higher than budgeted expenses for the Project Manager, Director, and Deputy Director’s salaries that are allocated to the unit. Lastly, revenues in the unit also decreased $1.2 million due to revenue associated with the EV charging grant reimbursement now being expected in FY2024-25 and a reduction in expected revenues of $1.1 million due to projects not being completed in FY2023-24 as originally budgeted.

The Procurement division ended the fiscal year with a positive variance of $262,000. This variance is mostly due to vacancies throughout the year which include a Procurement and Contract Services Officer, an Associate Procurement Contract Specialist and departmental position changes that resulted in savings for the unit. Additionally, an appropriation was included for a printer lease that has expired resulting in additional savings of $22,135.

The Airport ended the year with a negative variance of approximately $40,000. This variance is primarily due to Airport Run up Apron Project accruing revenues and expenses to the prior fiscal year causing variances in capital assets and budgeted federal revenues. Additionally, the Mead and Hunt on call agreement was under-utilized resulting in less than budgeted expenses. Offsetting these savings is a budgeted general fund transfer of $230,068 that was determined to be unnecessary, and airport rents and leases being under realized by $12,000.

Health & Human Services Agency - $0 Net Variance
Overall, the Health & Human Services Agency (HHSA) ended the year with balanced revenue and expenditures but underspent their Adopted Budget by about $15.5 million. This led to using only $15.3 million of General Fund, about $1.7 million less than budgeted.

The Adult & Aging Branch ended the fiscal year about $6.5 million under budget. The largest variance was in insurance payments, which ended the year $2.5 million under budget. Building maintenance also ended the year about $500,000 under budget and professional service contracts ended almost $2 million under budget. Salaries and Benefits ended slightly over budget; a reverse of trend seen over the past few fiscal years. Revenues were also under budget, as expenditures did not materialize for reimbursement.

The Administration branch ended the fiscal year about $2.2 million under budget. This was due mostly to savings of over $2 million in building maintenance, as the majority of “Project Refresh” projects did not materialize. Additionally, the unit did end the year almost $800,000 over budget in personnel costs, which the department believes is due to errors in how payroll was allocated. Revenues were likewise under budget, due to having less expenditures able to be allocated to other branches.

The Client Aid branch ended the fiscal year about $800,000 under budget. This was due mostly to a decrease in the amount of foster care payments initiated as caseload decreased from the prior fiscal year. Additionally, there were decreases seen in WRAP-around services as well. Due to this, less revenue was received than anticipated as these are mostly offset with state or federal revenues.

The Child, Youth, & Family branch ended the fiscal year about $200,000 under budget. This was due to vacancy savings of about $1.6 million. This was offset with increased spending in maintenance, travel and transportation, and professional service contracts.

The Public Health branch ended the fiscal year underspending their budget by over $3 million. This was due to several contracts coming in under budget, including the Jail Medical contract. Also, overall vacancy savings of $600,000 were realized due to positions not being filled, caused by normal turnover as well as some positions which utilized COVID, or other temporary funding purposefully not being filled. Due to these decreases in expenditures, intergovernmental revenues came in significantly lower than budgeted as expenditures were not available for reimbursement. Overall, this unit required almost $800,000 less of General Fund support than budgeted, due most significantly to decreases in the Jail Medical Contract.

The Service Centers branch ended the fiscal year $1.7 million under budget. This was due mostly to vacancy savings, which accounted for $1.5 million of the variance. However, this was offset by operational spending increases, most notably professional service contracts which went over budget by about $1 million. Other decreases were seen in intrafund transfers, where less costs were transferred into the unit than expected.

Attachment A also outlines the outdated financial structure with any actuals that posted in the fiscal year. HHSA staff is currently working with the accounting team to ensure all actuals are transitioned to the new structure and will balance as needed.

Human Resources - $228,238 Positive Net Variance
The Human Resources Department ended the fiscal year with a positive net variance of approximately $228,000. 

The main Human Resources operating budget ended the year with a $176,000 negative variance primarily due to unbudgeted leave buyout expenses of $60,000, unbudgeted extra help costs of $26,600 and increases in health insurance expenses.  Additionally, the department had previously budgeted for staff to work on the INFOR implementation project that resulted in the departments salary allocation of $189,000 not being utilized.  These increased expenses are partially offset by vacancies throughout the year that include the Assistant Human Resources Director and a Senior Personnel Analyst.
The Risk Management Division ended the year with a negative variance of $14,358 due to prior year invoices being paid in the current fiscal year and unbudgeted expenses such as AED defibrillators and replacement batteries and pads for Countywide use.

Additionally, unemployment ($202,000) and dental premiums ($203,000) came in underbudget resulting in a positive net variance in both units.  

Innovation and Technology Services - $11,557 Positive Net Variance
Innovation and Technology Services (ITS) ended the fiscal year with an overall positive net variance of $11,557.

The main IT operating unit ended the fiscal year with a negative variance of $41,197.  The unit did experience vacancies throughout the year that include an Internet Systems Specialist, Enterprise Resource Planning Analyst, and Database Administrator that resulted in savings of $588,000.  Additionally, the department saw savings related to the INFOR post go live consulting costs, N. Dean Meyer and Associates consulting agreement no longer being utilized and savings with the departments training expenses.  Offsetting these savings are a reduction in revenues in charges for services due to the reallocation of expenses in the unit.  

Telecom ended the fiscal year with a positive variance of $2,474.  This is due to increased work orders ($41,614) and investment earnings that were not previously budgeted for ($31,554).  These increases in revenues are partially offset by the additional on Fiber Cable Installation projects that were not budgeted for and increased indirect costs and the admin allocation being higher than originally budgeted.

Library - $1,523,420 Positive Net Variance
The Library ended the fiscal year with a positive net variance of approximately $1.5 million.  This variance exists primarily in the County Library Services where $1.1 million of the variance resides.  Revenues in the unit were higher than budgeted specifically with redevelopment agency (RDA) revenues ($495,000), property tax ($194,500), the addition of ESL grant from the California State Library for fiscal year 2024-25 and donations being $37,000 higher than budgeted.  Additional savings exist due to vacancies in the unit where the Library Regional Manager was vacant for the entire fiscal year in addition to savings in services and supplies where some internal charges were less than budgeted.

The Yolo County Historical Collection ended the year with a positive variance of $13,486 due to a museum curator vacancy as well as the addition of the Groundworks grant for the California State Library that was to be used for a new alarm system at the Gibson House.

Measure A is primarily used to pay debt costs and support costs for the Davis Branch Library operations.  This unit is ending with a positive variance of $379,000 as a result of higher than anticipated investment earnings ($321,626) and a lower than budgeted transfer that is intended to subsidize library services in Davis ($27,446).

Probation - $1,111,854 Positive Net Variance
Probation ended the year with a positive net variance of $1,111,854 mainly in Juvenile Probation Services and the department’s various special revenue funds.

The Probation Administration unit ended the fiscal year with a negative variance of $41,197.  This variance is due to more items being allocated out to various programs through the administration unit such as utility costs that were previously charged directly to specific units to minimize the impact on any one unit.

Adult Probation Services, which includes Court Funded Pre Trial-Services, ended the year with a negative variance of $215,000.  This is primarily due to a reduction in Prop 172 revenues ($43,815) and a reduced allocation of $61,500 for Post Release Community Services.  Additionally, Mental Health Court ended, and the contract maximum was reached resulting in reduced revenues of $126,000. Offsetting these reductions in revenues are salary and benefit savings of $409,000 due to three vacancies throughout the year which include an Administrative Clerk II, Supervising Legal Secretary, and a Deputy Probation Officer.

The Juvenile Detention Division ended the year with a negative net variance of $171,000.  This is attributed to increased utility costs due to increased costs for energy associated with the solar field which resulted in increased costs of about $305,000 at the Juvenile Detention Facility.  Revenues were also under budget as there were reduced work program billings, a reduction in Prop 172 revenues, and reduced child nutrition billings resulting in additional funds being transferred in from the Youth Offender Block Grant and Juvenile Justice Crime Prevention Act to balance the unit. 

Probation special revenue funds (Juvenile Justice Crime Prevention Act and Youthful Offender Block Grant) both ended the year with positive net variances of $494,000 and $797,000 respectively.  These funds are intended to offset appropriate expenses in other Probation divisions. 

Public Defender - $235,694 Negative Net Variance
The Public Defender’s Office ended the year with a negative net variance of $235,694 due primarily to higher than anticipated salary and benefit expenses ($370,500). The department carried a salary savings factor of $248,000 and incurred a series of unbudgeted equity adjustments during the fiscal year.  When combined, the department was unable to absorb the entirety of these costs.  A portion of this overage is being offset by savings in Services and Supplies ($48,000). This savings was spread through several accounts, including internal services such as Information Technology and Telecom fees, along with lower than anticipated confidential invoices and fees for Conflict Discovery fees.    

Further offsetting the size of the negative variance are additional revenues in several of the Public Defender’s units. While the California State budget delayed arrival of the Public Defender Pilot Program funding ($287,000), the office did receive unanticipated funding of $300,000 for an additional grant related to implementation of the Racial Justice Act.  Additional revenues of $13,000 were also received related to support provided to the Health and Human Services Agency’s Prop 47 grant.  The Public Defender’s Community Corrections Partnership (CCP) received unanticipated interest earnings of approximately $15,000, while the Revocation unit received an additional $30,000 in Realignment revenues.  Both the CCP and Revocation additional earnings will remain available for future appropriation.

Sheriff - $1,409,608 Positive Net Variance
The Sheriff’s Office ended the year with a positive net variance of approximately $1.4 million with the Public Safety funds ending the fiscal year with a positive net variance of $718,0000, due to lower than anticipated expenditures offsetting reduced revenues. Many of these reduced revenues are related to lower than anticipated transfer of general fund, and reimbursements from the Cannabis Task Force and Yocha Dehe Wintun Nation in the Patrol Division. Several units ended the year with negative net variances, including Management ($52,000), Patrol ($267,000) and Court Security ($1.2 million). All but the Court Security ended the fiscal year with expense savings.   

Growing costs in Court Security were identified both in the Mid-Year and Third Quarter monitoring processes and were related to higher than anticipated Salary and Benefit costs ($1.3 million), particularly in the areas of overtime ($108,000), unbudgeted extra help ($59,000) and leave payouts ($57,000). The program carried a large salary savings factor ($785,000), which contributed to the overage, but does not account for the entirety of the negative variance.   Offsetting a portion of this variance is savings of $77,000 in Services and Supplies.

Similarly, the Patrol Division completed the year with a negative net variance of $267,000 due to overages in Salary and Benefits ($465,000) including unbudgeted extra help ($61,000) and leave buyout ($31,000).  The program had an $874,000 salary savings factor applied to it during budget development.  Offsetting a portion of this variance were savings in other accounts throughout the program. 

The Department of Financial Services collaborated with other county departments to review and analyze variance explanations provided by departments for budget units that had a significant year-end appropriation variance.