Regular-General Government # 29.
Board of Supervisors
Financial Services
- Meeting Date:
- 02/21/2023
- Brief Title
- FY2022-23 Midyear Budget Monitoring
From:
Chad Rinde, Chief Financial Officer, Department of Financial Services
Staff Contact:
Laura Liddicoet, Chief Budget Official, Department of Financial Services, x5329
Supervisorial District Impact:
Countywide
Subject
Receive the 2022-23 Midyear Budget Monitor report, adopt a budget resolution amending 2022-23 revenues and appropriations, and approve changes to the 2022-23 Authorized Equipment List. (General fund impact: $486,100) (4/5 vote required) (Rinde/Liddicoet)
Recommended Action
- Receive the 2022-23 Midyear Budget Monitoring report;
- Adopt a budget resolution amending fiscal year 2022-23 revenues and appropriations; and
- Approve changes to the 2022-23 Authorized Equipment List.
Strategic Plan Goal(s)
 |
In Support of All Goals (Internal Departments Only) |
Reason for Recommended Action/Background
This report provides the Board of Supervisors with a midyear update on the 2022-23 budget. As part of the budget monitoring process, year-end revenue and expenditure projections were developed by each department and reviewed by the Department of Financial Services. Overall, most departments are projected to end the year in balance. The sections below provide additional information on departments and program areas that are projecting significant variances or that require close monitoring. A detailed summary of the midyear projections for each department is provided in Attachment A. For those budget units where staff recommends a budget adjustment, it is noted in the narrative and included in the budget resolution provided in Attachment B.
Agriculture: Agriculture is projecting to end the fiscal year with a positive net variance of approximately $76,000 primarily due to salary savings and investment earnings.
Agriculture’s Main Operation fund is projecting a surplus of $105,000 in salaries and benefits due to vacancies in an Office Support Specialist and Ag and Standards Tech position. Furthermore, as a result of the weed spray program closing and receiving one-time proceeds from chemical sales, this increased revenue by $52,000. These savings are being offset by projected decrease of $120,000 in charges for services due to the reduction in fieldwalking services requested from seed companies. The current drought resulted in less planting and sanctions to export seeds to Ukraine significantly contributes to the deficit. Furthermore, there is anticipated reduction in revenue of $20,000 from reduced fines and violations.
In addition, Agriculture's Building Replacement Fund is projecting a positive net variance of $39,000 and its Equipment Replacement Fund of $13,000 primarily due to unanticipated investment and interest earnings.
The department has also requested to change from purchasing three Ford trucks to two Tacoma trucks due to the Ford trucks not being available on time as a result of supply chain issues for staff to perform work. The latter can be secured at a reasonable time and within budget.
Assessor/Clerk-Recorder/Elections: The Assessor/Clerk-Recorder/Elections department is projecting a positive variance of $666,321 primarily in the Assessor and Elections divisions.
The Assessor’s office is projecting a positive variance of $136,616. This is primarily due to eight vacancies that include an Office Support Specialist, an Assessor Clerk Recorder Supervisor, (3) Assessor Clerk Recorder Specialists, a Senior Assessment Technician and a Senior Cadastral Drafting Technician. These salary savings are partially offset by reductions in revenues due to not utilizing the State Supplementation for County Assessor’s Program (SSCAP) grant this fiscal year. With the work related to this grant no longer expected to be completed in FY22-23, revenue is projected to be in a deficit of $267,255 and offset by a surplus in services of supplies of $270,578.
The Elections office is also projecting a positive net variance of approximately $473,425. The majority of this variance is due to receiving unexpected revenues of $35,000 related to the Voters Choice grant. Additionally, the division anticipates an increase in revenue due to facilitating elections for Cities and Districts in FY22-23. Most of these revenues are anticipated for the City of Davis’s May 2023 Special Council election that was not budgeted for, but will be fully reimbursable to the County.
The Clerk Recorder’s office is projecting a positive variance of $56,279. The office is projecting salary savings of approximately $200,000 due to vacancies in the division. Additionally, a surplus in services and supplies is projected due to delays in starting a project with US Imaging which resulted in costs being pushed into future fiscal years. These savings are partially offset by a deficit in recording fee revenues of approximately $387,500. The cause of this reduction in revenues can be attributed to economic factors such as increased interest rates and housing costs that are slowing the number of property transactions and recordings that the division anticipates will continue into the second half of the fiscal year.
Capital Improvement Projects: The Capital Improvement Program is projecting a positive net variance of $1.4 million dollars due to projected savings in multiple projects, including the Leinberger Jail Expansion, Knights Landing Levee and Yolo Library Replacement.
The Leinberger project is nearing completion, and the General Services Department reports that it should be ready for occupancy at the end of March. The project is projecting a small surplus of $135,000 due to unanticipated interest earnings.
The Knights Landing Levee project has a positive variance of $910,000 due to anticipation of the project expenditures continuing into next fiscal year. The project also received an unanticipated refund from Pacific Gas and Electric company for work completed in June of 2021.
The Yolo Library is projecting a year-end savings of approximately $208,000 due to the ability to claim certain expenses under a grant received from the California State Library received after the adopted budget. The project is also requesting adjustments to right-size its budget to align with the expected final costs of the project. This adjustment will also correct a budgeting error that occurred in the Adopted Budget process, which lead to some expenses being double counted through the carryforward process.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust Capital Improvement Projects budget as described above.
Colusa-Sutter-Yolo Regional Child Support Agency: The Colusa-Sutter-Yolo Regional Child Support Agency (RCSA) is projecting a positive net variance of approximately $301,000 primarily due to savings in salaries and benefits. There are currently nine vacancies including a Business Services Supervisor, Administrative Assistant, Administrative Clerk, and Child Support Specialist. The entirety of the savings is not being realized due to a deficit of $161,000 in Services and Supplies from additional projects such as Gray’s Peak for marketing and rebranding strategies and services ($40,000), Office Depot furniture for our Yuba City Office ($39,000), Univision for a public service announcement ($12,000), and Zoom Media Connect for advertising at each Courthouse in Sutter, Colusa, and Woodland ($4,500).
The department is requesting a budget adjustment to increase services and supplies by $59,365 as well as decrease intrafund transfers by the same amount due to changing the accounting approach as to how their shared IT Analyst with District Attorney is charged.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Child Support Services' budget as described above.
Community Services: The Community Services department is projecting a negative net variance of $5.3 million, primarily due to a significant deficit in the Integrated Waste Management (IWM) Debt Services Fund.
The IWM Debt Services fund had budgeted a revenue source of $10.1 million, however, this was already received in the prior FY21-22. To have this corrected, the department is requesting a budget adjustment to increase Use of Fund Balance and decrease Other Financing Sources by the $10.1 million amount.
The IWM Main Operations fund is projecting a positive net variance of approximately $2,600,000. This is primarily due to a significant reduction in Services and Supplies of $4,100,000 related to delays in several construction projects as well as salary savings of $761,000 for five vacant positions including Supervising Solid Waste Attendant, Senior Civil Engineer, and Waste Recycling Manager. This is partially offset by the projection of revenues coming in at approximately $2,000,000 lower than originally anticipated. Primarily, landfill commercial charges are projecting to be under the budgeted amount. However, based off of historical data, higher charges are anticipated to be received towards the end of the fiscal year.
The IWM Division has requested three budget adjustments: increase Other Charges and Use of Fund Balance by $120,000 to cover the increased costs in depreciation, decrease $15,000 from Revenue from Use of Money in IWM Post Closure division since the related projects were completed at the end of FY21-22, and lastly, decrease $10,150,000 in Other Financing Uses and increase Use of Fund Balance by the same amount since this was received in FY21-22.
The Roads fund is projecting a positive net variance of approximately $730,000, primarily due to a $4,800,000 savings from incompletion of road and bridge capital projects throughout the County. Road and bridge projects are budgeted by each phase they are in, and each phase can take up to 1-3 years, typically causing a surplus each year. Salaries and benefits have a savings of $860,000 due to vacant positions such as five road maintenance workers. There is a surplus of $720,000 in services and supplies due to professional services-architect and construction maintenance which are related to the ongoing capital projects. The full savings are not being realized due to anticipated reductions in state and federal revenue ($6 million) due to timing issues on multi-year projects. In the Road District #2 fund, the department is requesting a budget adjustment to increase Property Tax and Other Financing Uses by $8,583 to reflect actuals received.
Cache Creek Area Plan is projecting a positive net variance of approximately $192,000 primarily due to higher than anticipated revenue received in State Revenue. The reason is due to expenditures from FY21-22 being posted in FY22-23 and the corresponding reimbursements also coming. The department is requesting for two budget adjustments: decrease Services and Supplies by $700,000 and increase Capital Assets by the same amount. This is due to the Huff’s Corner grant that was originally assumed to have been paid out of Services and Supplies but now being properly budgeted as a Capital Asset. Secondly, an increase in Other Charges and Use of Fund Balance of $20,000 is proposed to pay for prior year invoices and this year’s unanticipated invoices.
The department is requesting to have a budget adjustment in the Cache Creek Off Channel Mining Plan division to decrease Services and Supplies by $156,000 due to double counting a contract during budget development. This will be offset by Fund Balance.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Community Services’ budget as described above.
County Administrator’s Office: The County Administrator’s Office (CAO) is balanced overall as a department. For the Office of Emergency Services, there is a projected net negative variance of $150,000 due to several unanticipated expenses. These expenses include $90,000 in Salaries and Benefits, due to an unanticipated payout, along with an additional $45,000 in Services and Supplies.
The purchase of several grant funded radios was omitted from the department's carryforward list and was not included in the Adopted budget process. Staff recommend the use of $45,000 in Public Safety Contingency to fund this expense. Staff will continue to monitor the projected variance in Salaries and Benefits as the year progresses.
The Office of Emergency Services is requesting to increase their budget by $886,000 for the addition of a recently received Department of Water Resources Small Communities grant.
While projected to end the year within budget, the CAO is requesting a series of adjustments to several Housing and Community Development programs. These adjustments include reappropriating funding related to Round 2 of the Coronavirus Community and Development Block Grant. This administrative move comes as a recommendation from Yolo County Housing Authority to adhere with the grant requirements.
A small deficit ($14,000) is also being projected in the Cooperative Extension, related to higher than anticipated facilities maintenance. The department has requested additional general fund to bridge the gap. Staff recommends the use of General Fund Contingency for this purpose.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Administrator Office’s budget as described above.
Countywide: Countywide is projecting a positive variance of $3.1 million due to anticipated increased revenues throughout the unit.
Development Impact Fees are responsible for $2.1 million of the projected surplus, due to higher than anticipated revenues. Any unspent revenues in this fund will fall to fund balance at the conclusion of the fiscal year, available for future appropriation.
The Community Corrections Partnership (CCP) is projecting a small surplus of $245,000 despite receiving a smaller than anticipated growth payment from the State of California. This loss is being offset by anticipated delays in CCP funded projects. Any unspent CCP dollars will fall to fund balance to be reappropriated by the CCP in future fiscal years. The Public Safety MOE is also projecting a net positive variance of $460,000 due in part to lower than anticipated expenses and additional interest earnings from the Department of Financial Services.
General Purpose revenues are also trending slightly higher than anticipated ($350,000) due to increases in earnings related to properties subject to the Williamson Act and Sales Tax.
A small projected deficit in Grand Jury ($7,000) will be monitored. If adjustments are necessary, DFS will bring forward those adjustments with the Third Quarter Monitoring.
County Counsel: County Counsel (CCL) is projecting to end the fiscal year with a negative net variance of $410,000 primarily due to a large deficit in revenue from county counsel’s attorneys billable work hours for other departments. Budgeted revenue may have been originally overstated. Both the department and DFS will continue to monitor this deficit and return to the Board with any necessary adjustments.
County Service Areas: The County Service Areas are projecting to end the fiscal year with a positive net variance of $795.
Wild Wings Sewer is projecting a positive net variance of $41,000 primarily due to unbudgeted revenue ($30,000) for a litigation settlement between the County and Wild Wings Owners Association.
El Macero Sewer is projecting a positive net variance of $24,000 due to unanticipated interest earnings from GASB 31 and savings in services and supplies.
North Davis Meadows Sewer division is projecting a deficit of $94,000 due to the utility expenditures being incorrectly charged to the North Davis Meadows Water fund in fiscal year 2021-22. The error was found and corrected this fiscal year 2022-23. The department is requesting for a budget adjustment to increase Services and Supplies by $95,763 and offset by Use of Fund Balance.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Service Area’s budget as described above.
Debt Service: Debt Service is projecting to end the fiscal year with a positive net variance of $36,000. The surplus is due to unanticipated investment earnings.
District Attorney: The District Attorney’s Office is projecting an overall negative net variance of approximately $1.1 million. While this variance can be explained by a similar shortfall in the Consumer Fraud/Environmental Protection Fund, a portion of the variance does sit in the public safety fund. The Criminal Prosecution division, while also projecting small shortfalls in revenue due to lower than anticipated Recording fees in the Real Estate Fraud unit, and overstating grant revenue, is projecting a $510,000 overage in Salaries and Benefits. While the department has experienced staff turnover leading to unanticipated payouts, much of this increase is related to the County decision to revise its compensation philosophy and move from 95% to 100% of market average for all salaries.
The Restorative Justice Partnership is also projecting a negative net variance but due largely to conclusion of a Justice Assistance Grant (JAG). The department originally budgeted for a higher reimbursable amount than it believes it will be able to claim. However, the department has reapplied for the grant and, if awarded, would be able to drawdown funds to reduce the anticipated variance by approximately $100,000. Additionally, the unit is required to complete an employee reclassification at an unbudgeted cost of $30,000.
The District Attorney’s Community Correction Partnership (CCP) unit is currently projecting a year-end net negative variance of $16,000 due to increases in contracted services within the Mental Health Diversion program, however, the deficit will be addressed by CCP at its April meeting, with the unit being balanced by year-end.
Net positive variances exist in the majority of other DA special revenue funds. Any surplus available at year-end will fall to fund balance. As aforementioned, the Consumer Fraud/Environmental Protection fund is projecting a negative variance of $1.1 million. This fund receives revenue in the form of fines, forfeitures, and penalties from settlements, which are difficult to forecast. Therefore, estimates are made based on the same revenues collected from July to December. The fund has available fund balance to cover the variance.
The District Attorney has requested a small ($7,200) adjustment to their Asset Forfeiture program. The department has identified additional revenues due to increased interest earnings and requires additional expense appropriations. Staff also recommends addition of two replacement vehicles to the authorized equipment list. These vehicles were approved as part of the Recommended Budget process, but omitted from the equipment list.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the District Attorney’s budget as described above.
Financial Services: The Department of Financial Services is projecting to end the fiscal year with a positive variance of approximately $348,000, primarily due to salary savings of $646,000. There are several vacancies throughout the department including an Administrative Services Analyst, Office Support Specialist, and several Accountant positions as well as gaps between hiring a new Chief Budget Official. The offset to these savings is the deficit of $224,000 due to a reduction of billing to other departments because of the vacant positions in the Satellite Finance and Yolo County Collection Services teams. The department is requesting a budget adjustment to transfer $50,000 in appropriations from Salaries & Benefits to Services & Supplies in order to use salary savings for Procurement consulting services due to vacant positions in the Procurement division. It should be noted that while the County's Procurement function has transitioned to the General Services Departement, the budget still remains in the Department of Financial Services and will be transitioned as part of the 2023-24 Recommended Budget.
Staff recommends approving the budget adjustment as reflected in Attachment B to adjust the Department of Financial Service's budget as described above.
General Services: The General Services department is projecting to end the fiscal year with an overall positive net variance of $617,427. The positive variance can be attributed to two divisions, Facilities $236,250 and Parks $348,004. The Facilities variance is tied to a number of vacant positions, including a Project Manager, a Building Craftsmechanic, a Senior Accounting Technician, and a portion of a Fiscal Administrative Officer resulting in savings of $412,000. Additional savings exist in Services and Supplies due to a departmental billing methodology related to building maintenance and improvements that allows the department flexibility with departmental billings. Additionally, the department is anticipating a surplus in Capital Assets of $396,000 due to a delay in the Justice Campus Well project. These expenditure savings are partially offset by the revenue deficits that are anticipated in relation to EV Charging Stations ($412,400) and the Justice Well construction project ($396,000). New sites for EV charging have yet to be identified resulting in the inability to be reimbursed for the construction of the charging stations.
The Parks positive variance of $348,000 can be attributed mostly to salary savings. The division’s salary savings is due to a vacant position for a Parks and Facilities Worker, Senior Accounting Technician and a portion of a Fiscal Administrative Officer ($343,766). The department anticipates that these positions will be filled by the end of March 2023. With the salary savings, the department is requesting a mid-year adjustment of $45,500 to reallocate funds due to urgent repair needs at the Cache Creek Campground. Of this amount, $15,000 would be used to purchase new pump motors which have failed and a monitoring system to allow staff to remotely monitor in the future to avoid such failures. This purchase will also save staff time from traveling to the remote location of the campground and cut maintenance costs. In addition, the department has been borrowing a generator from a vendor for the last several months due to lack of funding to purchase a new one and the department is requesting $30,500 from salary saving for this purchase of one for the department.
Lastly, the General Services Department is requesting additional funding in the amount of $26,100 in order provide security services during business hours at the Yolo County Administration Building. Staff recommend the use of General Fund contingency for this purpose.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the General Services budget as described above
Health and Human Services Agency: The Health and Human Services Agency is projecting a positive net variance of approximately $2 million dollars for the end of the fiscal year, primarily due to salary savings due to vacancies. Most of these positions were limited term COVID positions which do not require being filled at this time. Additionally, assistance payments have been lower than projected which also results in a net positive variance.
Social Services is projecting a positive net variance of approximately $781,000. This is due mainly to salary and benefits savings associated with vacancies in Public Assistance Administration. As a result, fewer transfers are needed from 2011 Realignment, resulting in less use of fund balance in that fund. Some of these savings are offset by contractual cost increases, most notably Child Care contractual increases of $900K. Additionally, the department has been awarded several new grants they are requesting be appropriated to their budget.
There is a deficit of $138K in the Public Assistance Administration budget due to the Farmworker Program. Funding for this program was included in the Adopted Budget process but placed in Countywide rather than the department. The department is requesting a transfer from the Countywide budget to fund the projected deficit and for adjustments to recognize previously approved American Rescue Plan Act (ARPA) funding. The department is also requesting a series of adjustments in the Yolo Basic Income (YOBI) program to reflect previously approved funding and transfer of expenses between expenditure categories.
Homeless Services is also requesting a budget adjustment to increase revenue and expenditures by $3.5m to reflect receipt of additional grant for Homeless Housing Assistance and Prevention (HHAP) and the Housing and Homelessness Incentive Program (HHIP).
Public Health is projecting an overall positive net variance of $1.85 million. Savings are due to vacancies in limited term COVID positions which the department has not filled because programs and funding are diminishing at the State and Federal levels. This results in less transfers required from Public Health Realignment Fund 142 and savings in fund balance in that fund. Jail Medical has increased expenditures by about $650K due to additional JBCT services, but the previously approved transfer of Public Safety contingency, and other newly identified funding sources, will offset this increase.
HHSA Administration is projecting an overall positive net variance of about $200K despite revenues projecting under budget. This is due to savings associated with not moving forward on a forklift and conference room signage that was approved with carry forward due to non-availability of items. Revenue decreases are due to several vacancies which require less transfer in from the IGT Fund to cover personnel costs.
The Public Guardian and Veterans Services divisions are projecting balanced year-end expenditures and revenues. Both units are projected to meet original adopted budget figures.
The positive variances in other HHSA divisions described above are partially offset by an overall negative variance of approximately $750K in Behavioral Health. A significant amount of this negative variance is due to lower statewide personal income tax receipts than anticipated in the Governor’s budget, resulting in lower allocations in Mental Health Services Act contributions to localities. This variance is slightly offset by vacancy savings and the delays in start of the Crisis Now Program. HHSA staff is monitoring the progress of this unit and will request adjustments at Q3 if necessary. Fund balance exists to cover potential deficits.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the HHSA’s budget as described above. Health and Human Services has additional position requests that are incorporated in the mid-year projections that will come forward to the Board of Supervisors after additional Human Resources and Financial Services review.
Human Resources: Human Resources is currently projecting a negative net variance of $216,457. The majority of this variance can be tied to the Risk Management Division where a deficit of approximately $521,000 is projected. This deficit does take into account anticipated salary savings of approximately $51,000 due to a vacancy in the Risk Management Manager positions which the department believes will take approximately 3 months to fill. A portion of the variance ($233,000) is the result of higher than anticipated General Liability and Workers Compensation premiums and deductibles, which will be recouped through the annual true-up to departments at year-end. The remainder of the variance, $288,000, is due to omission of additional expenses in the budgeting process. Staff recommends use of General Fund contingency to fund that portion of the deficit which cannot be trued up to departments at year-end.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Human Resources budget as described above
Innovation and Technology Services: The ITS department is projecting a positive net variance of $202,690. The positive variance can be attributed mainly to $947,415 in salary savings. The vacancies contributing to the salary savings include an Enterprise Resource Planning Analyst, a System Software Specialist, an Internet Systems Specialist, and a Geographic Information Systems Analyst. Services and Supplies is also showing significant savings of approximately $331,000 due to a lower than anticipated Telecom charges ($23,750), the Office 365 Sharepoint Consultation coming in $75,000 under budget, and much lower costs related to Zoom, Smartsheet, and Esri licenses that are billed back to departments ($52,800). These savings are partially offset by a deficit in charges for services due to overestimates with current and future projects resulting in lower revenues. In addition, if a surplus exists at the end of the fiscal year as projected, a year-end true up will be conducted to allocate savings back to County departments. This action will not have a direct general fund impact, though general fund departments may realize savings in their IT charges.
The Telecom Division is projecting a positive net variance of $90,479. This positive variance can be attributed to salary savings of $140,000 due to an administrative position being incorrectly budgeted in this unit. In addition, a surplus in Services and Supplies ($75,000) is due to an error in budgeting ERP charges, inventory purchases trending lower than expected, and the division’s training budget not projected to be expended this fiscal year. These savings are partially offset by a deficit in charges for services due to a correction in the calculation that resulted in lower than expected revenues and a deficit of approximately $166,000.
Library: Library is projecting to end the fiscal year with a positive net variance of approximately $254,000 primarily due to a lower than anticipated transfer out from the Measure A funds as well as salary savings and savings in services and supplies.
The Measure A fund has savings of $182,000 in transfers out due to a reduced funding need by the main County Library Services operating fund. At the end of the fiscal year 2021-22, an excess was transferred from the Measure A fund to the operating fund, which will be used to subsidize the Davis Library in the current fiscal year. There is also savings of $150,000 due to vacancies throughout the department including the Assistant County Librarian and Youth Services Librarian. This will further reduce the amount needed to transfer fund from Measure A to County Library Services.
Library is requesting a new limited-term position Library Associate to follow grant guidelines, complete grant activities, collaborate with schools and social service agencies, and to design and implement ESL learning opportunities. The department received a 4-year grant from the California State Library to provide English-as-a-Second-Language learning opportunities to rural Yolo County. Initially, the Library recruited and hired a part-time, extra-help employee to coordinate the grant. However, after five months, the person found a full-time job and left. A limited-term 0.65 full time equivalent position is needed to provide sustainable, consistent ESL services and fulfill the grant requirements. The position will be fully funded by State grant funds with no general fund impact.
The department is requesting budget adjustments to increase state revenue and services and supplies by $12,000 for a Welcome to Reading grant. Adjustments are also being requested to decrease salary and benefits by $26,872 and increase services and supplies by $6,812 to replace public copiers that will no longer be serviced and increase capital assets by $20,060 to pay for network equipment.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Library’s budget as described above as well as the limited-term position Library Associate.
Probation: Probation is projecting a positive variance of approximately $3.9 million dollars by the end of the year. However, of this variance $1.8 million is related to savings in Probation specific funds, such as the Youth Offender Block Grant (YOBG), Juvenile Justice Crime Prevention Act (JJCPA), and SB 678. These savings will revert back to departmental fund balance for use in future fiscal years. The remainder of the savings, approximately $2.1 million, is in the public safety fund. Savings in all funds are largely related to ongoing vacancies as the department continues to take a conservative approach to hiring in light of ongoing discussions regarding the future of the Juvenile Detention Facility.
The Adult Probation Services division is projecting a surplus of $527,000, however, of this amount, $480,000 is related to the Court funded Pre-Trial expansion program, and per the legislation that governs that program, must be returned to the Superior Court of California at the end of the fiscal year. The division is also experiencing variances in both revenue and expenditures due to termination of the Community Services Infrastructure Grant.
The Juvenile Detention Services unit is projecting a surplus of $1.3 million, due to ongoing vacancies. There are also small savings in Services and Supplies that are being offset by lower than anticipated revenues in the Alternative Sentencing Program. Ongoing staff vacancies and lower than historical participation levels are impacting the ability of the ASP to adequately provide contracted services. Staff is also recommending transfer ($62,000) of projected salary savings to Capital Assets to replace an aging van in the ASP program and an update to the equipment list reflecting this purchase.
The Juvenile Probation unit is projecting a small year-end deficit of $37,000. The deficit is the result of lower than anticipated Federal revenue related to CalWorks, due to lower than average caseloads. The department will continue to monitor this deficit and will provide a more refined year-end project at Third Quarter.
Public Defender: The Public Defender is projecting to end the fiscal year with a negative net variance of approximately $138,000, due mostly to increases in salaries for the fiscal year. All Deputy Public Defenders received a 3% cost of living adjustment, a 2.21% equity raise retroactive to July 2022 and a 5% equity increase as of January 2023. For Non-Attorneys, all bargaining units moved to 100% of market as of January 2023, each getting a 5% raise that also contributed to the overall deficit.
The Public Defender also requested three new positions at midyear: two Deputy Public Defenders and one Paralegal. The annual, ongoing cost for these positions is $479,000. Staff do not recommend funding this request at this time, but will consider these requests as part of the 2023-24 budget process.
Sheriff: The Sheriff’s Office is projecting to end the fiscal year with an overall surplus of approximately $4.6 million. Of the total surplus, $600,000 is in the Sheriff’s special revenue funds and the remaining $3 million has a positive impact to the general fund. With some of the projected savings, the Sheriff is requesting the purchase of new assets and services as described in Attachment D and included in the Budget Resolution Attachment B.
The Public Administrator is projecting a small surplus of $30,000 due to savings in Salaries and Benefits. The Sheriff is requesting use of a portion of this expense savings to purchase software upgrades ($2,700) for the existing case management system, and to make improvements to an existing indigent memorial at the Woodland City Cemetery ($15,000).
The Civil division is also requesting transfer of a portion of its projected savings ($108,000) in Salaries and Benefits to Equipment for the purpose of upgrading the Teleosoft System. These upgrades are required due to implementation of AB 2791, which requires the Sheriff's office to accept electronically signed notices and other court documents issued by a Superior Court in a civil action.
Management is projecting a $248,000 surplus due to vacancies, a retirement and the timing of promotions. The division is also projecting a small savings in Services and Supplies. The department is requesting transfer of $30,000 in savings from Services and Supplies to Equipment in order to purchase five ToughPads and an employee identification system. Approval has also been requested to transfer $21,000 of the Management Division’s savings to the Coroner's division in order to support the cost of performing DNA identification in four separate cases.
The Coroner's division is currently projecting a small deficit of $18,000. Though the unit is projecting a small savings in Salaries and Benefits, the department is projecting lower than anticipated revenues and increased costs for pathology services. The department has requested $20,000 in additional funding in order to ensure the ability to pay for pathology services through June 30, 2023. Staff recommends use of Public Safety Contingency to fund this request.
The Patrol division is projecting a $1.4 million surplus. Of the total surplus, $852,000 is due to a series of vacant positions and $382,000 in service and supplies savings. The vacant positions are occurring in all divisions of Patrol but have allowed the department to absorb the cost of the move to 100% of market. Services and supplies are under budget due to various minor equipment that has not been purchased, and unspent appropriations related to vacant position costs such as clothing are also contributing to the surplus. With Patrol expenditure surplus, Sheriff is requesting to purchase equipment and services as detailed in Attachment D.
The Detention division is projecting a $1.3 million surplus attributed to approximately 20 vacant Correctional Officer positions and a reduction of services and supplies due to a lower detention population. The full savings of the vacant positions is partially offset by an overtime expense expected to exceed budget by $740,000. Mandated minimum staffing levels, required COVID testing, and closure of the California Department of Corrections facility in Tracy have contributed to the increase in overtime. With the closure of the Tracy CDC facility, Yolo County must now transport inmates to the CDC facility in Kern County, significantly increasing travel time. The shortage of Correctional Officers has also caused additional strain on the Patrol division with the necessity for more Deputies to perform medical transports and security services for inmates while staying in a hospital. With Detention expenditure surplus, Sheriff is requesting to replace the current Jail camera System servers and one transport van. Management has been working to ensure recording covering at least two years is available, however, the current system is failing and beyond repair, requiring replacement. The requested transport van would also be replacing an existing van which is experiencing breakdowns and failures.
Court Security is projecting a small surplus of $142,000 due largely to a series of vacancies experienced throughout the fiscal year. The unit is also projecting a small surplus in Services and Supplies related to vacant positions. The department is requesting use of $6,000 in Services and Supply savings to fund the Capital Asset purchase of a cell phone signal repeater at the Yolo County Superior Court to ensure deputies have adequate cell phone signal of work phones.
Sheriff’s Community Corrections Partnership division is projecting a $321,000 surplus due largely to multiple Correctional Officer vacant positions. While some of the vacancy savings are offset by an increase in overtime expense, a surplus is still anticipated. Mandated minimum staffing levels have required vacancies and COVID related absences to be filled with overtime.
The Small and Rural special revenue fund is projecting a surplus of $238,000 due to lower than anticipated staff time being allocated to this unit. The Jail Management System (JMS) and Records Management System (RMS) continues with project delays, and while the department still anticipates its completion by the end of this fiscal year, funds will be budgeted in FY 23/24.
The Animal Services special revenue fund is projecting a surplus of $375,000. Fees collected for spay and neuter services are lower than anticipated due to the continued stoppage of surgeries and other non-emergency medical procedures. This reduction in revenue is offset by vacancy savings, the reduction of medical supplies and lower animal intake reducing needed supplies. The Animal Services division is requesting approval for an increase in its Capital Asset Expenditure in order to fund a cost increase for the purchase of two previously approved animal services trucks. Service and Supply savings will fund the cost of the approximately $50,000.
The department is also requesting transfers of funds in various special revenue fund units projecting year-end surpluses.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Sheriff’s budget as described above.
Public Safety Sales Tax and Realignment Revenue: Major Countywide revenue sources came in both slightly above and below budget in the first six months of the 2022-23 fiscal year due to slowing of the economy and concerns of a recession.
Agriculture: Agriculture is projecting to end the fiscal year with a positive net variance of approximately $76,000 primarily due to salary savings and investment earnings.
Agriculture’s Main Operation fund is projecting a surplus of $105,000 in salaries and benefits due to vacancies in an Office Support Specialist and Ag and Standards Tech position. Furthermore, as a result of the weed spray program closing and receiving one-time proceeds from chemical sales, this increased revenue by $52,000. These savings are being offset by projected decrease of $120,000 in charges for services due to the reduction in fieldwalking services requested from seed companies. The current drought resulted in less planting and sanctions to export seeds to Ukraine significantly contributes to the deficit. Furthermore, there is anticipated reduction in revenue of $20,000 from reduced fines and violations.
In addition, Agriculture's Building Replacement Fund is projecting a positive net variance of $39,000 and its Equipment Replacement Fund of $13,000 primarily due to unanticipated investment and interest earnings.
The department has also requested to change from purchasing three Ford trucks to two Tacoma trucks due to the Ford trucks not being available on time as a result of supply chain issues for staff to perform work. The latter can be secured at a reasonable time and within budget.
Assessor/Clerk-Recorder/Elections: The Assessor/Clerk-Recorder/Elections department is projecting a positive variance of $666,321 primarily in the Assessor and Elections divisions.
The Assessor’s office is projecting a positive variance of $136,616. This is primarily due to eight vacancies that include an Office Support Specialist, an Assessor Clerk Recorder Supervisor, (3) Assessor Clerk Recorder Specialists, a Senior Assessment Technician and a Senior Cadastral Drafting Technician. These salary savings are partially offset by reductions in revenues due to not utilizing the State Supplementation for County Assessor’s Program (SSCAP) grant this fiscal year. With the work related to this grant no longer expected to be completed in FY22-23, revenue is projected to be in a deficit of $267,255 and offset by a surplus in services of supplies of $270,578.
The Elections office is also projecting a positive net variance of approximately $473,425. The majority of this variance is due to receiving unexpected revenues of $35,000 related to the Voters Choice grant. Additionally, the division anticipates an increase in revenue due to facilitating elections for Cities and Districts in FY22-23. Most of these revenues are anticipated for the City of Davis’s May 2023 Special Council election that was not budgeted for, but will be fully reimbursable to the County.
The Clerk Recorder’s office is projecting a positive variance of $56,279. The office is projecting salary savings of approximately $200,000 due to vacancies in the division. Additionally, a surplus in services and supplies is projected due to delays in starting a project with US Imaging which resulted in costs being pushed into future fiscal years. These savings are partially offset by a deficit in recording fee revenues of approximately $387,500. The cause of this reduction in revenues can be attributed to economic factors such as increased interest rates and housing costs that are slowing the number of property transactions and recordings that the division anticipates will continue into the second half of the fiscal year.
Capital Improvement Projects: The Capital Improvement Program is projecting a positive net variance of $1.4 million dollars due to projected savings in multiple projects, including the Leinberger Jail Expansion, Knights Landing Levee and Yolo Library Replacement.
The Leinberger project is nearing completion, and the General Services Department reports that it should be ready for occupancy at the end of March. The project is projecting a small surplus of $135,000 due to unanticipated interest earnings.
The Knights Landing Levee project has a positive variance of $910,000 due to anticipation of the project expenditures continuing into next fiscal year. The project also received an unanticipated refund from Pacific Gas and Electric company for work completed in June of 2021.
The Yolo Library is projecting a year-end savings of approximately $208,000 due to the ability to claim certain expenses under a grant received from the California State Library received after the adopted budget. The project is also requesting adjustments to right-size its budget to align with the expected final costs of the project. This adjustment will also correct a budgeting error that occurred in the Adopted Budget process, which lead to some expenses being double counted through the carryforward process.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust Capital Improvement Projects budget as described above.
Colusa-Sutter-Yolo Regional Child Support Agency: The Colusa-Sutter-Yolo Regional Child Support Agency (RCSA) is projecting a positive net variance of approximately $301,000 primarily due to savings in salaries and benefits. There are currently nine vacancies including a Business Services Supervisor, Administrative Assistant, Administrative Clerk, and Child Support Specialist. The entirety of the savings is not being realized due to a deficit of $161,000 in Services and Supplies from additional projects such as Gray’s Peak for marketing and rebranding strategies and services ($40,000), Office Depot furniture for our Yuba City Office ($39,000), Univision for a public service announcement ($12,000), and Zoom Media Connect for advertising at each Courthouse in Sutter, Colusa, and Woodland ($4,500).
The department is requesting a budget adjustment to increase services and supplies by $59,365 as well as decrease intrafund transfers by the same amount due to changing the accounting approach as to how their shared IT Analyst with District Attorney is charged.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Child Support Services' budget as described above.
Community Services: The Community Services department is projecting a negative net variance of $5.3 million, primarily due to a significant deficit in the Integrated Waste Management (IWM) Debt Services Fund.
The IWM Debt Services fund had budgeted a revenue source of $10.1 million, however, this was already received in the prior FY21-22. To have this corrected, the department is requesting a budget adjustment to increase Use of Fund Balance and decrease Other Financing Sources by the $10.1 million amount.
The IWM Main Operations fund is projecting a positive net variance of approximately $2,600,000. This is primarily due to a significant reduction in Services and Supplies of $4,100,000 related to delays in several construction projects as well as salary savings of $761,000 for five vacant positions including Supervising Solid Waste Attendant, Senior Civil Engineer, and Waste Recycling Manager. This is partially offset by the projection of revenues coming in at approximately $2,000,000 lower than originally anticipated. Primarily, landfill commercial charges are projecting to be under the budgeted amount. However, based off of historical data, higher charges are anticipated to be received towards the end of the fiscal year.
The IWM Division has requested three budget adjustments: increase Other Charges and Use of Fund Balance by $120,000 to cover the increased costs in depreciation, decrease $15,000 from Revenue from Use of Money in IWM Post Closure division since the related projects were completed at the end of FY21-22, and lastly, decrease $10,150,000 in Other Financing Uses and increase Use of Fund Balance by the same amount since this was received in FY21-22.
The Roads fund is projecting a positive net variance of approximately $730,000, primarily due to a $4,800,000 savings from incompletion of road and bridge capital projects throughout the County. Road and bridge projects are budgeted by each phase they are in, and each phase can take up to 1-3 years, typically causing a surplus each year. Salaries and benefits have a savings of $860,000 due to vacant positions such as five road maintenance workers. There is a surplus of $720,000 in services and supplies due to professional services-architect and construction maintenance which are related to the ongoing capital projects. The full savings are not being realized due to anticipated reductions in state and federal revenue ($6 million) due to timing issues on multi-year projects. In the Road District #2 fund, the department is requesting a budget adjustment to increase Property Tax and Other Financing Uses by $8,583 to reflect actuals received.
Cache Creek Area Plan is projecting a positive net variance of approximately $192,000 primarily due to higher than anticipated revenue received in State Revenue. The reason is due to expenditures from FY21-22 being posted in FY22-23 and the corresponding reimbursements also coming. The department is requesting for two budget adjustments: decrease Services and Supplies by $700,000 and increase Capital Assets by the same amount. This is due to the Huff’s Corner grant that was originally assumed to have been paid out of Services and Supplies but now being properly budgeted as a Capital Asset. Secondly, an increase in Other Charges and Use of Fund Balance of $20,000 is proposed to pay for prior year invoices and this year’s unanticipated invoices.
The department is requesting to have a budget adjustment in the Cache Creek Off Channel Mining Plan division to decrease Services and Supplies by $156,000 due to double counting a contract during budget development. This will be offset by Fund Balance.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Community Services’ budget as described above.
County Administrator’s Office: The County Administrator’s Office (CAO) is balanced overall as a department. For the Office of Emergency Services, there is a projected net negative variance of $150,000 due to several unanticipated expenses. These expenses include $90,000 in Salaries and Benefits, due to an unanticipated payout, along with an additional $45,000 in Services and Supplies.
The purchase of several grant funded radios was omitted from the department's carryforward list and was not included in the Adopted budget process. Staff recommend the use of $45,000 in Public Safety Contingency to fund this expense. Staff will continue to monitor the projected variance in Salaries and Benefits as the year progresses.
The Office of Emergency Services is requesting to increase their budget by $886,000 for the addition of a recently received Department of Water Resources Small Communities grant.
While projected to end the year within budget, the CAO is requesting a series of adjustments to several Housing and Community Development programs. These adjustments include reappropriating funding related to Round 2 of the Coronavirus Community and Development Block Grant. This administrative move comes as a recommendation from Yolo County Housing Authority to adhere with the grant requirements.
A small deficit ($14,000) is also being projected in the Cooperative Extension, related to higher than anticipated facilities maintenance. The department has requested additional general fund to bridge the gap. Staff recommends the use of General Fund Contingency for this purpose.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Administrator Office’s budget as described above.
Countywide: Countywide is projecting a positive variance of $3.1 million due to anticipated increased revenues throughout the unit.
Development Impact Fees are responsible for $2.1 million of the projected surplus, due to higher than anticipated revenues. Any unspent revenues in this fund will fall to fund balance at the conclusion of the fiscal year, available for future appropriation.
The Community Corrections Partnership (CCP) is projecting a small surplus of $245,000 despite receiving a smaller than anticipated growth payment from the State of California. This loss is being offset by anticipated delays in CCP funded projects. Any unspent CCP dollars will fall to fund balance to be reappropriated by the CCP in future fiscal years. The Public Safety MOE is also projecting a net positive variance of $460,000 due in part to lower than anticipated expenses and additional interest earnings from the Department of Financial Services.
General Purpose revenues are also trending slightly higher than anticipated ($350,000) due to increases in earnings related to properties subject to the Williamson Act and Sales Tax.
A small projected deficit in Grand Jury ($7,000) will be monitored. If adjustments are necessary, DFS will bring forward those adjustments with the Third Quarter Monitoring.
County Counsel: County Counsel (CCL) is projecting to end the fiscal year with a negative net variance of $410,000 primarily due to a large deficit in revenue from county counsel’s attorneys billable work hours for other departments. Budgeted revenue may have been originally overstated. Both the department and DFS will continue to monitor this deficit and return to the Board with any necessary adjustments.
County Service Areas: The County Service Areas are projecting to end the fiscal year with a positive net variance of $795.
Wild Wings Sewer is projecting a positive net variance of $41,000 primarily due to unbudgeted revenue ($30,000) for a litigation settlement between the County and Wild Wings Owners Association.
El Macero Sewer is projecting a positive net variance of $24,000 due to unanticipated interest earnings from GASB 31 and savings in services and supplies.
North Davis Meadows Sewer division is projecting a deficit of $94,000 due to the utility expenditures being incorrectly charged to the North Davis Meadows Water fund in fiscal year 2021-22. The error was found and corrected this fiscal year 2022-23. The department is requesting for a budget adjustment to increase Services and Supplies by $95,763 and offset by Use of Fund Balance.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the County Service Area’s budget as described above.
Debt Service: Debt Service is projecting to end the fiscal year with a positive net variance of $36,000. The surplus is due to unanticipated investment earnings.
District Attorney: The District Attorney’s Office is projecting an overall negative net variance of approximately $1.1 million. While this variance can be explained by a similar shortfall in the Consumer Fraud/Environmental Protection Fund, a portion of the variance does sit in the public safety fund. The Criminal Prosecution division, while also projecting small shortfalls in revenue due to lower than anticipated Recording fees in the Real Estate Fraud unit, and overstating grant revenue, is projecting a $510,000 overage in Salaries and Benefits. While the department has experienced staff turnover leading to unanticipated payouts, much of this increase is related to the County decision to revise its compensation philosophy and move from 95% to 100% of market average for all salaries.
The Restorative Justice Partnership is also projecting a negative net variance but due largely to conclusion of a Justice Assistance Grant (JAG). The department originally budgeted for a higher reimbursable amount than it believes it will be able to claim. However, the department has reapplied for the grant and, if awarded, would be able to drawdown funds to reduce the anticipated variance by approximately $100,000. Additionally, the unit is required to complete an employee reclassification at an unbudgeted cost of $30,000.
The District Attorney’s Community Correction Partnership (CCP) unit is currently projecting a year-end net negative variance of $16,000 due to increases in contracted services within the Mental Health Diversion program, however, the deficit will be addressed by CCP at its April meeting, with the unit being balanced by year-end.
Net positive variances exist in the majority of other DA special revenue funds. Any surplus available at year-end will fall to fund balance. As aforementioned, the Consumer Fraud/Environmental Protection fund is projecting a negative variance of $1.1 million. This fund receives revenue in the form of fines, forfeitures, and penalties from settlements, which are difficult to forecast. Therefore, estimates are made based on the same revenues collected from July to December. The fund has available fund balance to cover the variance.
The District Attorney has requested a small ($7,200) adjustment to their Asset Forfeiture program. The department has identified additional revenues due to increased interest earnings and requires additional expense appropriations. Staff also recommends addition of two replacement vehicles to the authorized equipment list. These vehicles were approved as part of the Recommended Budget process, but omitted from the equipment list.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the District Attorney’s budget as described above.
Financial Services: The Department of Financial Services is projecting to end the fiscal year with a positive variance of approximately $348,000, primarily due to salary savings of $646,000. There are several vacancies throughout the department including an Administrative Services Analyst, Office Support Specialist, and several Accountant positions as well as gaps between hiring a new Chief Budget Official. The offset to these savings is the deficit of $224,000 due to a reduction of billing to other departments because of the vacant positions in the Satellite Finance and Yolo County Collection Services teams. The department is requesting a budget adjustment to transfer $50,000 in appropriations from Salaries & Benefits to Services & Supplies in order to use salary savings for Procurement consulting services due to vacant positions in the Procurement division. It should be noted that while the County's Procurement function has transitioned to the General Services Departement, the budget still remains in the Department of Financial Services and will be transitioned as part of the 2023-24 Recommended Budget.
Staff recommends approving the budget adjustment as reflected in Attachment B to adjust the Department of Financial Service's budget as described above.
General Services: The General Services department is projecting to end the fiscal year with an overall positive net variance of $617,427. The positive variance can be attributed to two divisions, Facilities $236,250 and Parks $348,004. The Facilities variance is tied to a number of vacant positions, including a Project Manager, a Building Craftsmechanic, a Senior Accounting Technician, and a portion of a Fiscal Administrative Officer resulting in savings of $412,000. Additional savings exist in Services and Supplies due to a departmental billing methodology related to building maintenance and improvements that allows the department flexibility with departmental billings. Additionally, the department is anticipating a surplus in Capital Assets of $396,000 due to a delay in the Justice Campus Well project. These expenditure savings are partially offset by the revenue deficits that are anticipated in relation to EV Charging Stations ($412,400) and the Justice Well construction project ($396,000). New sites for EV charging have yet to be identified resulting in the inability to be reimbursed for the construction of the charging stations.
The Parks positive variance of $348,000 can be attributed mostly to salary savings. The division’s salary savings is due to a vacant position for a Parks and Facilities Worker, Senior Accounting Technician and a portion of a Fiscal Administrative Officer ($343,766). The department anticipates that these positions will be filled by the end of March 2023. With the salary savings, the department is requesting a mid-year adjustment of $45,500 to reallocate funds due to urgent repair needs at the Cache Creek Campground. Of this amount, $15,000 would be used to purchase new pump motors which have failed and a monitoring system to allow staff to remotely monitor in the future to avoid such failures. This purchase will also save staff time from traveling to the remote location of the campground and cut maintenance costs. In addition, the department has been borrowing a generator from a vendor for the last several months due to lack of funding to purchase a new one and the department is requesting $30,500 from salary saving for this purchase of one for the department.
Lastly, the General Services Department is requesting additional funding in the amount of $26,100 in order provide security services during business hours at the Yolo County Administration Building. Staff recommend the use of General Fund contingency for this purpose.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the General Services budget as described above
Health and Human Services Agency: The Health and Human Services Agency is projecting a positive net variance of approximately $2 million dollars for the end of the fiscal year, primarily due to salary savings due to vacancies. Most of these positions were limited term COVID positions which do not require being filled at this time. Additionally, assistance payments have been lower than projected which also results in a net positive variance.
Social Services is projecting a positive net variance of approximately $781,000. This is due mainly to salary and benefits savings associated with vacancies in Public Assistance Administration. As a result, fewer transfers are needed from 2011 Realignment, resulting in less use of fund balance in that fund. Some of these savings are offset by contractual cost increases, most notably Child Care contractual increases of $900K. Additionally, the department has been awarded several new grants they are requesting be appropriated to their budget.
There is a deficit of $138K in the Public Assistance Administration budget due to the Farmworker Program. Funding for this program was included in the Adopted Budget process but placed in Countywide rather than the department. The department is requesting a transfer from the Countywide budget to fund the projected deficit and for adjustments to recognize previously approved American Rescue Plan Act (ARPA) funding. The department is also requesting a series of adjustments in the Yolo Basic Income (YOBI) program to reflect previously approved funding and transfer of expenses between expenditure categories.
Homeless Services is also requesting a budget adjustment to increase revenue and expenditures by $3.5m to reflect receipt of additional grant for Homeless Housing Assistance and Prevention (HHAP) and the Housing and Homelessness Incentive Program (HHIP).
Public Health is projecting an overall positive net variance of $1.85 million. Savings are due to vacancies in limited term COVID positions which the department has not filled because programs and funding are diminishing at the State and Federal levels. This results in less transfers required from Public Health Realignment Fund 142 and savings in fund balance in that fund. Jail Medical has increased expenditures by about $650K due to additional JBCT services, but the previously approved transfer of Public Safety contingency, and other newly identified funding sources, will offset this increase.
HHSA Administration is projecting an overall positive net variance of about $200K despite revenues projecting under budget. This is due to savings associated with not moving forward on a forklift and conference room signage that was approved with carry forward due to non-availability of items. Revenue decreases are due to several vacancies which require less transfer in from the IGT Fund to cover personnel costs.
The Public Guardian and Veterans Services divisions are projecting balanced year-end expenditures and revenues. Both units are projected to meet original adopted budget figures.
The positive variances in other HHSA divisions described above are partially offset by an overall negative variance of approximately $750K in Behavioral Health. A significant amount of this negative variance is due to lower statewide personal income tax receipts than anticipated in the Governor’s budget, resulting in lower allocations in Mental Health Services Act contributions to localities. This variance is slightly offset by vacancy savings and the delays in start of the Crisis Now Program. HHSA staff is monitoring the progress of this unit and will request adjustments at Q3 if necessary. Fund balance exists to cover potential deficits.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the HHSA’s budget as described above. Health and Human Services has additional position requests that are incorporated in the mid-year projections that will come forward to the Board of Supervisors after additional Human Resources and Financial Services review.
Human Resources: Human Resources is currently projecting a negative net variance of $216,457. The majority of this variance can be tied to the Risk Management Division where a deficit of approximately $521,000 is projected. This deficit does take into account anticipated salary savings of approximately $51,000 due to a vacancy in the Risk Management Manager positions which the department believes will take approximately 3 months to fill. A portion of the variance ($233,000) is the result of higher than anticipated General Liability and Workers Compensation premiums and deductibles, which will be recouped through the annual true-up to departments at year-end. The remainder of the variance, $288,000, is due to omission of additional expenses in the budgeting process. Staff recommends use of General Fund contingency to fund that portion of the deficit which cannot be trued up to departments at year-end.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Human Resources budget as described above
Innovation and Technology Services: The ITS department is projecting a positive net variance of $202,690. The positive variance can be attributed mainly to $947,415 in salary savings. The vacancies contributing to the salary savings include an Enterprise Resource Planning Analyst, a System Software Specialist, an Internet Systems Specialist, and a Geographic Information Systems Analyst. Services and Supplies is also showing significant savings of approximately $331,000 due to a lower than anticipated Telecom charges ($23,750), the Office 365 Sharepoint Consultation coming in $75,000 under budget, and much lower costs related to Zoom, Smartsheet, and Esri licenses that are billed back to departments ($52,800). These savings are partially offset by a deficit in charges for services due to overestimates with current and future projects resulting in lower revenues. In addition, if a surplus exists at the end of the fiscal year as projected, a year-end true up will be conducted to allocate savings back to County departments. This action will not have a direct general fund impact, though general fund departments may realize savings in their IT charges.
The Telecom Division is projecting a positive net variance of $90,479. This positive variance can be attributed to salary savings of $140,000 due to an administrative position being incorrectly budgeted in this unit. In addition, a surplus in Services and Supplies ($75,000) is due to an error in budgeting ERP charges, inventory purchases trending lower than expected, and the division’s training budget not projected to be expended this fiscal year. These savings are partially offset by a deficit in charges for services due to a correction in the calculation that resulted in lower than expected revenues and a deficit of approximately $166,000.
Library: Library is projecting to end the fiscal year with a positive net variance of approximately $254,000 primarily due to a lower than anticipated transfer out from the Measure A funds as well as salary savings and savings in services and supplies.
The Measure A fund has savings of $182,000 in transfers out due to a reduced funding need by the main County Library Services operating fund. At the end of the fiscal year 2021-22, an excess was transferred from the Measure A fund to the operating fund, which will be used to subsidize the Davis Library in the current fiscal year. There is also savings of $150,000 due to vacancies throughout the department including the Assistant County Librarian and Youth Services Librarian. This will further reduce the amount needed to transfer fund from Measure A to County Library Services.
Library is requesting a new limited-term position Library Associate to follow grant guidelines, complete grant activities, collaborate with schools and social service agencies, and to design and implement ESL learning opportunities. The department received a 4-year grant from the California State Library to provide English-as-a-Second-Language learning opportunities to rural Yolo County. Initially, the Library recruited and hired a part-time, extra-help employee to coordinate the grant. However, after five months, the person found a full-time job and left. A limited-term 0.65 full time equivalent position is needed to provide sustainable, consistent ESL services and fulfill the grant requirements. The position will be fully funded by State grant funds with no general fund impact.
The department is requesting budget adjustments to increase state revenue and services and supplies by $12,000 for a Welcome to Reading grant. Adjustments are also being requested to decrease salary and benefits by $26,872 and increase services and supplies by $6,812 to replace public copiers that will no longer be serviced and increase capital assets by $20,060 to pay for network equipment.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Library’s budget as described above as well as the limited-term position Library Associate.
Probation: Probation is projecting a positive variance of approximately $3.9 million dollars by the end of the year. However, of this variance $1.8 million is related to savings in Probation specific funds, such as the Youth Offender Block Grant (YOBG), Juvenile Justice Crime Prevention Act (JJCPA), and SB 678. These savings will revert back to departmental fund balance for use in future fiscal years. The remainder of the savings, approximately $2.1 million, is in the public safety fund. Savings in all funds are largely related to ongoing vacancies as the department continues to take a conservative approach to hiring in light of ongoing discussions regarding the future of the Juvenile Detention Facility.
The Adult Probation Services division is projecting a surplus of $527,000, however, of this amount, $480,000 is related to the Court funded Pre-Trial expansion program, and per the legislation that governs that program, must be returned to the Superior Court of California at the end of the fiscal year. The division is also experiencing variances in both revenue and expenditures due to termination of the Community Services Infrastructure Grant.
The Juvenile Detention Services unit is projecting a surplus of $1.3 million, due to ongoing vacancies. There are also small savings in Services and Supplies that are being offset by lower than anticipated revenues in the Alternative Sentencing Program. Ongoing staff vacancies and lower than historical participation levels are impacting the ability of the ASP to adequately provide contracted services. Staff is also recommending transfer ($62,000) of projected salary savings to Capital Assets to replace an aging van in the ASP program and an update to the equipment list reflecting this purchase.
The Juvenile Probation unit is projecting a small year-end deficit of $37,000. The deficit is the result of lower than anticipated Federal revenue related to CalWorks, due to lower than average caseloads. The department will continue to monitor this deficit and will provide a more refined year-end project at Third Quarter.
Public Defender: The Public Defender is projecting to end the fiscal year with a negative net variance of approximately $138,000, due mostly to increases in salaries for the fiscal year. All Deputy Public Defenders received a 3% cost of living adjustment, a 2.21% equity raise retroactive to July 2022 and a 5% equity increase as of January 2023. For Non-Attorneys, all bargaining units moved to 100% of market as of January 2023, each getting a 5% raise that also contributed to the overall deficit.
The Public Defender also requested three new positions at midyear: two Deputy Public Defenders and one Paralegal. The annual, ongoing cost for these positions is $479,000. Staff do not recommend funding this request at this time, but will consider these requests as part of the 2023-24 budget process.
Sheriff: The Sheriff’s Office is projecting to end the fiscal year with an overall surplus of approximately $4.6 million. Of the total surplus, $600,000 is in the Sheriff’s special revenue funds and the remaining $3 million has a positive impact to the general fund. With some of the projected savings, the Sheriff is requesting the purchase of new assets and services as described in Attachment D and included in the Budget Resolution Attachment B.
The Public Administrator is projecting a small surplus of $30,000 due to savings in Salaries and Benefits. The Sheriff is requesting use of a portion of this expense savings to purchase software upgrades ($2,700) for the existing case management system, and to make improvements to an existing indigent memorial at the Woodland City Cemetery ($15,000).
The Civil division is also requesting transfer of a portion of its projected savings ($108,000) in Salaries and Benefits to Equipment for the purpose of upgrading the Teleosoft System. These upgrades are required due to implementation of AB 2791, which requires the Sheriff's office to accept electronically signed notices and other court documents issued by a Superior Court in a civil action.
Management is projecting a $248,000 surplus due to vacancies, a retirement and the timing of promotions. The division is also projecting a small savings in Services and Supplies. The department is requesting transfer of $30,000 in savings from Services and Supplies to Equipment in order to purchase five ToughPads and an employee identification system. Approval has also been requested to transfer $21,000 of the Management Division’s savings to the Coroner's division in order to support the cost of performing DNA identification in four separate cases.
The Coroner's division is currently projecting a small deficit of $18,000. Though the unit is projecting a small savings in Salaries and Benefits, the department is projecting lower than anticipated revenues and increased costs for pathology services. The department has requested $20,000 in additional funding in order to ensure the ability to pay for pathology services through June 30, 2023. Staff recommends use of Public Safety Contingency to fund this request.
The Patrol division is projecting a $1.4 million surplus. Of the total surplus, $852,000 is due to a series of vacant positions and $382,000 in service and supplies savings. The vacant positions are occurring in all divisions of Patrol but have allowed the department to absorb the cost of the move to 100% of market. Services and supplies are under budget due to various minor equipment that has not been purchased, and unspent appropriations related to vacant position costs such as clothing are also contributing to the surplus. With Patrol expenditure surplus, Sheriff is requesting to purchase equipment and services as detailed in Attachment D.
The Detention division is projecting a $1.3 million surplus attributed to approximately 20 vacant Correctional Officer positions and a reduction of services and supplies due to a lower detention population. The full savings of the vacant positions is partially offset by an overtime expense expected to exceed budget by $740,000. Mandated minimum staffing levels, required COVID testing, and closure of the California Department of Corrections facility in Tracy have contributed to the increase in overtime. With the closure of the Tracy CDC facility, Yolo County must now transport inmates to the CDC facility in Kern County, significantly increasing travel time. The shortage of Correctional Officers has also caused additional strain on the Patrol division with the necessity for more Deputies to perform medical transports and security services for inmates while staying in a hospital. With Detention expenditure surplus, Sheriff is requesting to replace the current Jail camera System servers and one transport van. Management has been working to ensure recording covering at least two years is available, however, the current system is failing and beyond repair, requiring replacement. The requested transport van would also be replacing an existing van which is experiencing breakdowns and failures.
Court Security is projecting a small surplus of $142,000 due largely to a series of vacancies experienced throughout the fiscal year. The unit is also projecting a small surplus in Services and Supplies related to vacant positions. The department is requesting use of $6,000 in Services and Supply savings to fund the Capital Asset purchase of a cell phone signal repeater at the Yolo County Superior Court to ensure deputies have adequate cell phone signal of work phones.
Sheriff’s Community Corrections Partnership division is projecting a $321,000 surplus due largely to multiple Correctional Officer vacant positions. While some of the vacancy savings are offset by an increase in overtime expense, a surplus is still anticipated. Mandated minimum staffing levels have required vacancies and COVID related absences to be filled with overtime.
The Small and Rural special revenue fund is projecting a surplus of $238,000 due to lower than anticipated staff time being allocated to this unit. The Jail Management System (JMS) and Records Management System (RMS) continues with project delays, and while the department still anticipates its completion by the end of this fiscal year, funds will be budgeted in FY 23/24.
The Animal Services special revenue fund is projecting a surplus of $375,000. Fees collected for spay and neuter services are lower than anticipated due to the continued stoppage of surgeries and other non-emergency medical procedures. This reduction in revenue is offset by vacancy savings, the reduction of medical supplies and lower animal intake reducing needed supplies. The Animal Services division is requesting approval for an increase in its Capital Asset Expenditure in order to fund a cost increase for the purchase of two previously approved animal services trucks. Service and Supply savings will fund the cost of the approximately $50,000.
The department is also requesting transfers of funds in various special revenue fund units projecting year-end surpluses.
Staff recommends approving the budget adjustments as reflected in Attachment B to adjust the Sheriff’s budget as described above.
Public Safety Sales Tax and Realignment Revenue: Major Countywide revenue sources came in both slightly above and below budget in the first six months of the 2022-23 fiscal year due to slowing of the economy and concerns of a recession.
1. 1991 Realignment: The revenues are projected to end the year 0.5% ($211,000) above budget due to higher than expected caseload growth.
2. 2011 Realignment Health and Human Services: The revenues are projected to end the year 6.2% ($1.5 million) below budget due to lower than expected growth payments.
3. 2011 Realignment Public Safety: The revenues are projected to end the year 2% ($400,000) below budget due to lower than expected growth payments.
4. Public Safety Sales Tax (Proposition 172): The revenues are projected to end the year 4% ($1 million) above budget.
2. 2011 Realignment Health and Human Services: The revenues are projected to end the year 6.2% ($1.5 million) below budget due to lower than expected growth payments.
3. 2011 Realignment Public Safety: The revenues are projected to end the year 2% ($400,000) below budget due to lower than expected growth payments.
4. Public Safety Sales Tax (Proposition 172): The revenues are projected to end the year 4% ($1 million) above budget.
General Purpose Revenue
General Purpose Revenue is projecting to end the fiscal year with a net positive variance of $350,000. The majority is related to higher Williamson Act and Sales Tax revenue. Year-end projections further illustrate the effects of inflation, and particularly interest rate increases on our General Purpose Revenue.
Contingency Appropriations: The table below reflects the balance of all contingency appropriations as of February 7, 2023.
| Contingency Designation | Original Allocation | Amount Remaining as of 2/7/2023 |
| General | $ 3,046,220 | $ 1,954,762 |
| Health and Human Services | $ 2,000,000 | $ 2,000,000 |
| Public Safety | $ 1,750,000 | $ 1,479,047 |
| Roads | $ 550,000 | $ 441,702 |
| Yolo Basic Income | $ 500,000 | $ 500,000 |
| Climate Sustainability | $ 499,733 | $ 499,733 |
| HHS Emerging Needs | $ 225,000 | $ 225,000 |
| Diversity, Equity and Inclusion | $ 202,175 | $ 0 |
| Safety and Security | $ 200,000 | $ 0 |
| IT Innovation | $ 200,000 | $ 178,452 |
| Child Support | $ 30,000 | $ 30,000 |
| Total | $ 9,203,128 | $ 7,308,696 |
The County policy on Fund Balance and Reserves identifies appropriation for contingencies as the first line of defense against uncertainty and are budgeted in specific funds to cover minor unanticipated needs of a non-recurring nature or for small increases in service delivery costs that are not anticipated during budget development. Any contingency balances that remain unspent at year-end will carry forward to be appropriated as part of the 2023-24 Adopted Budget.
Collaborations (including Board advisory groups and external partner agencies)
Year-end revenue and expenditure projections were developed by each county department and reviewed by the Department of Financial Services. County Counsel reviewed the budget resolution as to form.
Competitive Bid Process/Vendor Performance
N/A
Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 7,219,825
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 7,219,825
- One-time commitment:
- Yes
Source of Funds for this Expenditure
- Various Funds
- $7,219,285
Further explanation as needed:
Approval of the recommended actions will amend the 2022-23 revenues and appropriations as reflected in the attached budget resolution (Attachment B).
Attachments
- Att. A. 2022-23 Mid Year Monitoring Summary
- Att. B. Budget Resolution
- Att. C. 2022-23 Equipment List
- Att. D. Sheriff Requested Purchases
- Att. E. Library Position Request
- Att. F. Public Defender Position Request
- Att. G. Vehicle Requests
- Att. H. Presentation
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| David Estrada | Laura Liddicoet | 01/17/2023 08:37 AM |
| Financial Services (Originator) | Laura Liddicoet | 02/13/2023 01:49 PM |
| David Estrada | David Estrada | 02/14/2023 01:44 PM |
| Tom Haynes | Tom Haynes | 02/15/2023 10:59 AM |
| Mark Bryan | Mark Bryan | 02/15/2023 02:33 PM |
| County Counsel | Hope Welton | 02/16/2023 11:44 AM |
- Form Started By:
- Laura Liddicoet
- Started On:
- 01/17/2023 08:30 AM
- Final Approval Date:
- 02/16/2023