Regular-General Government # 30.
Board of Supervisors
Financial Services
- Meeting Date:
- 11/18/2025
- Brief Title
- Revenue Enhancement Options
From:
Tom Haynes, Chief Financial Officer, Department of Financial Services
Staff Contact:
Tom Haynes, Chief Financial Officer, Department of Financial Services, x8162
Supervisorial District Impact:
Countywide
Subject
Receive presentation on revenue enhancement options for Yolo County, and provide direction to staff. (No general fund impact) (Haynes) (Est. Staff Presentation: 10 min.)
Recommended Action
Receive presentation on revenue enhancement options for Yolo County, and provide direction to staff.
Strategic Plan Goal(s)
 |
In Support of All Goals (Internal Departments Only) |
Reason for Recommended Action/Background
As discussed with the Board on several occasions throughout the 2025-26 budget development process, Yolo County is facing a structural budget deficit, where ongoing expenditures exceed and are outpacing ongoing revenues. This was first discussed in January 2025 during the staff presentation on the 5-year forecast and 2025-26 budget outlook. Illustrating the financial challenges, the 2025-26 budget started with an initial base budget gap of nearly $40 million, and a variety of one-time funding sources and departmental reductions were required to balance the budget. Notably, the budget utilized approximately $4.2 million in reserves in order to avoid more significant cuts to department budgets, underscoring the severity of the County’s fiscal challenges.
Financial projections continue to indicate a structural imbalance, with increasing budget deficits projected in each of the next five years. To begin addressing the structural deficit, staff have taken the following actions:
In addition, through the amended Budget Principles approved on June 24, 2025 (Attachment A), the Board directed staff to evaluate options for revenue enhancements. Attachment B provides a comprehensive matrix of revenue enhancement options that staff have identified for the Board’s consideration. These revenue options were discussed with the Budget Ad Hoc Subcommittee on two occasions and are now being advanced to the full Board for discussion. Staff are seeking Board feedback and direction on which revenue options, if any, the Board is interested in pursuing further.
Financial projections continue to indicate a structural imbalance, with increasing budget deficits projected in each of the next five years. To begin addressing the structural deficit, staff have taken the following actions:
- Updated the 5-Year Financial Forecast based on the 2025-26 Adopted Budget
- Convened a Department Head Working Group to assist in developing and vetting budget balancing solutions
- Initiated a departmental general fund assessment to itemize the programs and services supported by the County's general fund, and assess the impact of reductions in those areas
- Begun to analyze County-wide measures such as golden handshakes.
In addition, through the amended Budget Principles approved on June 24, 2025 (Attachment A), the Board directed staff to evaluate options for revenue enhancements. Attachment B provides a comprehensive matrix of revenue enhancement options that staff have identified for the Board’s consideration. These revenue options were discussed with the Budget Ad Hoc Subcommittee on two occasions and are now being advanced to the full Board for discussion. Staff are seeking Board feedback and direction on which revenue options, if any, the Board is interested in pursuing further.
Collaborations (including Board advisory groups and external partner agencies)
The options for revenue enhancement were discussed with the Budget Ad Hoc Subcommittee on September 3rd and November 5th.
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $
- Amount budgeted for expenditure:
- $
- Additional expenditure authority needed:
- $
- On-going commitment (annual cost):
- $
Source of Funds for this Expenditure
- General Fund
Attachments
- Att. A. 2025-26 Budget Principles
- Att. B. Revenue Enhancement Options
- Att. C. 2023 Economic Development Study
- Att. D. Presentation
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Tom Haynes | Tom Haynes | 11/10/2025 02:58 PM |
| Financial Services (Originator) | Tom Haynes | 11/10/2025 02:58 PM |
| Tom Haynes | Tom Haynes | 11/12/2025 02:49 PM |
| Cindy Perez | Cindy Perez | 11/12/2025 03:20 PM |
- Form Started By:
- Tom Haynes
- Started On:
- 10/16/2025 09:14 AM
- Final Approval Date:
- 11/12/2025