Time Set # 23.
Board of Supervisors
- Meeting Date:
- 09/26/2023
- Brief Title
- FY23-24 Adopted Budget
From:
Gerardo Pinedo, County Administrator, County Administrator's Office
Staff Contact:
Laura Liddicoet, Chief Budget Official, Department of Financial Services, x8825
Supervisorial District Impact:
Countywide
Subject
Receive report of preliminary fund balances as of June 30, 2023; hold a public hearing and adopt the County of Yolo budget for fiscal year 2023-24; hold a public hearing as the In-Home Supportive Services (IHSS) Public Authority Board and approve the IHSS Public Authority budget for fiscal year 2023-24; and approve the 2023-24 budgets for Board-controlled Fire Districts. (General fund impact $118,447,916) (Pinedo/Haynes) (Est. Time: 20 min)
Recommended Action
- Receive a report on preliminary County fund balances as of June 30, 2023 (Attachment A);
- Hold a public hearing on the County of Yolo and IHSS Public Authority budget for fiscal year 2023-24;
- Approve the 2023-24 County of Yolo budgets and adopt the 2023-24 Budget Resolution (Attachment C, including Exhibit C1);
- Approve the 2023-24 IHSS Public Authority budget as reflected in Attachment C, including exhibit C1;
- Approve the 2023-24 budgets for Board-controlled Fire Districts as reflected in Attachment C, including Exhibit C1; and
- Approve changes to the 2023-24 Authorized Equipment List (Attachment H).
Strategic Plan Goal(s)
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In Support of All Goals (Internal Departments Only) |
Reason for Recommended Action/Background
Background
State law requires that the Board adopt the annual budget by October 2 of each year. The attached budget resolution (Attachment C and Exhibit 1) is based on the FY23-24 Recommended Budget as approved by the Board of Supervisors on June 13 and revised by the recommendations in this report. These recommendations have been reviewed with the Chair and Vice Chair in accordance with the Board's Governance Manual.
The County Budget Act (Gov. Code Section 29000-29144) establishes levels of authority for approval and modification of the County's budget. Prior to approval of the Adopted Budget, the Board of Supervisors may make changes to the Recommended Budget with a majority vote. Once the Adopted Budget is approved, and upon conclusion of the public hearing, most budgetary changes require a four-fifths vote of the Board. Such changes include transfers between funds, appropriation of any fund balances or unanticipated revenues, transfers from contingency appropriations, and appropriation of reserve balances. If overall appropriations are not increased, transfers between budget units within a fund only require a majority vote. If overall appropriations are not increased, staff may perform transfers or changes within a budget unit administratively.
FY23-24 Adopted Budget
On June 13, 2023, the Board approved the FY23-24 Recommended Budget, which provided appropriation authority until the Adopted Budget is approved. The proposed FY23-24 Adopted Budget incorporates changes to the Recommended Budget based on revised revenue projections, available fund balances, changes resulting from the State budget, additional department requests and Board priorities.
Since the approval of the Recommended Budget, certain revenue streams continue to show signs of growth; however, the broader economy continues to display signs of slowing, and concerns regarding the possibility of a recession in the near term remain. Updated projections reflect an increase in FY23-24 general purpose revenues of approximately $2.4 million. These additional dollars are largely due to increases in property tax, sales tax, and overhead costs reimbursement that were not included in the Recommended Budget, as discussed further below. In addition, due primarily to continued high vacancy rates, the County ended the prior year (FY22-23) with an estimated $17.8 million in General Fund unassigned fund balance, $3.8 million more than what was appropriated in the Recommended Budget. These additional funding sources allow the County to make targeted strategic investments while leveraging resources to prepare for more challenging economic times in the future.
A total of eight new positions are being recommended for funding in the Adopted Budget. However, of the eight positions, only one position is funded by the General Fund, while the remaining seven positions are fully funded by a variety of other non-General Fund sources. Two positions are recommended for elimination, for a net increase of six positions.
The table below summarizes position changes that are recommended in the Adopted Budget. Attachment G provides a comprehensive overview of all position changes and requested positions that are not recommended at this time.
Economic Outlook
At Recommended Budget, it was noted that the economy generally had recovered from the COVID-19 pandemic as Gross Domestic Product had increased, and the unemployment rate was returning to pre-pandemic levels. However, it was also noted that US economic growth is slowing, and concerns regarding the likelihood of a recession in the near term remained. While persistent inflation following the COVID-19 pandemic is headed downward, and the likelihood of severe recession has eased, the County continues to experience cost pressures greater than the gains in forecasted revenues. These cost pressures come from various sources, but primarily from increasing salary and benefit costs as we adjust to the new Countywide compensation process.
The Recommended Budget also noted the County's continued reliance on fund balance to cover ongoing costs, along with significant increases in the use of budgeted salary savings. This approach is likely to reduce the available fund balance in future years. While the Adopted Budget addresses certain areas of concern, including the increased cost of Jail Medical Services, it does not yet grapple with other upcoming state and federal mandates. In tandem with slowing growth in discretionary revenues, these expenses will likely make balancing future budgets difficult.
Considering the challenges the County may face in future fiscal years, the Adopted Budget makes use of ongoing resources in a conservative and strategic fashion, addressing the most pressing concerns. Available fund balance is being used similarly. While a number of one-time departmental requests are being recommended for funding, staff also recommend allocating additional funds to contingencies and reserves, including additional funding to increase the County's General Reserve from 8% to 8.5%. Further discussion of recommended increases to reserves and contingencies is included below. Overall, the Adopted Budget takes a measured yet opportunistic approach in its recommended actions, addressing immediate issues while widening the County's financial safety net.
The sections below discuss significant proposed adjustments included in the Adopted Budget.
General Fund
The General Fund ended FY22-23 with a preliminary estimated available fund balance of approximately $17.8 million. In anticipation of high fund balances resulting from abnormally high unbudgeted vacancy rates, the FY23-24 Recommended Budget included approximately $14 million in estimated carryforward fund balance as a funding source. As a result, an additional $3.8 million in fund balance is available for appropriation in the Adopted Budget.
For context, the table below shows the unassigned General Fund balance over the past five years.
General Fund unassigned fund balance has been high and generally increasing for several years; however, staff believe that fund balances reached a peak at the end of the 2021-22 fiscal year. The preliminary fund balance for the 2022-23 fiscal year indicates available fund balance is declining and will likely continue to do so given the increased use of salary savings as a budget balancing solution. In addition, a slowdown in the economy may result in a corresponding decline in the rate of employee turnover. As such, fund balances available at Adopted Budget continue to be used for one-time purposes in accordance with Board policy.
The projected FY23-24 general purpose ongoing revenues have been revised to reflect an increase of approximately $2.4 million. The growth in property assessments reported by the County Assessor was 6.8 percent, or 1.8 percent higher than assumed in the Recommended Budget, resulting in an increase of approximately $1,200,000 in property tax revenue. Revenue projections were also adjusted to reflect increases in sales tax by $153,000, vehicle court fines and fees by $10,000, interest earnings by $100,000, and overhead costs reimbursement by $700,000.
The table below provides a summary of the recommended additional General Fund funding sources and uses. Attachment D provides a detailed listing of the recommended funding uses, while Attachment E further describes department requests that are not recommended for funding.
FY23-24 Adopted Budget General Fund Summary
County Departments
The following sections provide an overview of the County department budgets. The narrative includes discussion about adjustments to balance the FY23-24 Adopted Budget, a summary of major programs as well as highlights of significant budget changes. Items recommended to be funded with non-general funds are included in Attachment F.
Agriculture
The Adopted Budget for Agriculture, Weights & Measures includes increases for the reclassification of a Business Services Supervisor to Senior Administrative Services Analyst as approved by the Board in July 2023. Additionally, there are minimal increases due to insurance adjustments. The department has requested a total of $11,500 for increased building maintenance to offset vandalism, employee incentives, and organic sampling, which staff is not recommending at this time. Overall, staff recommends a $18,567 increase from the Recommended Budget.
Assessor/Clerk-Recorder/Elections
The Elections Division requested funding for three augmentations within the Adopted Budget. First, the Evelyn and Walter Haas, Jr. Fund has agreed to match dollar for dollar any funds used by the Elections division for elections outreach. Elections requested $50,000 from the General Fund to conduct outreach for the upcoming Presidential Election that will result in a match from the Fund. Of the $50,000 request, staff is currently recommending $25,000 in funding. Secondly, an unexpected election for the Knights Landing Community Services District is resulting in increased revenues for the Elections division by approximately $40,000. These revenues are partially offset by increased costs of $9,000 for election related expenses such as supplies, postage, and printing. The final augmentation request from the division is for General Services to perform upgrades to the Elections office following completion of a space study. These upgrades are intended to provide additional security and functionality throughout the division and add additional offices. The department requested $135,000 to facilitate these improvements. Staff recommends approval of these one-time expenses for the Elections Division.
Additional increases in the Elections division include $80,000 for Elections supplies. Of this increase, $30,000 is for the mandated Elections Administration Plan, which is intended to provide transparency and inform voters on all aspects of the California Voter's Choice Act. The remaining $50,000 is for the increased cost of switching payroll services for election workers. These increases were offset by base reductions in other departments, so there was no net increase in General Fund support required.
The Assessor's Division is budgeting to use $167,500 in funding related to the State Supplementation for County Assessors Program (SSCAP) grant to purchase software through Tyler Technologies. Staff recommends approval of this item as there is no general fund impact. Additionally, the division experienced an increase in workers' compensation and general liability insurance costs of $23,000 due to a revised calculation in insurance charges.
The Clerk-Recorder Division requested $100,000 for construction upgrades in the Clerk-Recorder office, including reconfiguring parts of the office and adding additional office space. Due to limited funding, staff are currently not recommending approval of this item.
Board of Supervisors
The Adopted Budget for the Board of Supervisors includes an increase of $18,500 related to increases in Workers' Compensation and General Liability coverage. In addition, the budget includes an increase of $15,000 in Extra Help funding to provide the ability for each supervisorial district to have a paid intern for several months of the year. Staff will track the budget for these positions and reassess amounts, coordinating necessary adjustments with Financial Services. Staff recommends approval of this augmentation.
Regional Child Support Agency
The Regional Child Support Agency's Adopted Budget includes various adjustments, including a decrease of $30,000 due to receiving lower than anticipated Federal Performance Incentive Funds. County overhead charges were also reduced by $69,000 related to an error in the building depreciation calculation identified late in FY22-23 and other insurance charge adjustments. The department is also including a 1% salary savings factor of $77,000.
Community Services
The Adopted Budget for the Department of Community Services includes adjustments throughout the department's divisions:
Adjustments within the Planning Division include increases in workers' compensation and public liability insurance, along with revenue increases associated with the issuance of zoning permits. This increase is due to CEQA review of thirty-one Cannabis applications, which were not included in the Recommended budget. This revenue is offset by an anticipated increase in Professional Services to assist with these reviews. Staff recommend approval of all these requests.
The department also requested $120,000 in General Fund to provide seed funding for a new Abatement Fund, which would allow their Code Enforcement Officers to abate nuisance properties. In addition, the department requested funding to promote an Assistant Planner to Associate Planner ($12,000). These augmentations are not recommended for approval at this time.
The Environmental Health Division includes adjustments to insurance charges, County overhead costs, and a decrease in software cost for Envision Connect. Staff recommend approval of the divisions request for $17,000 to fund the portion of a fee study not funded by CUPA funds.
In the Climate Sustainability Division, staff recommends approval of $55,000 in Extra Help funding to assist with grant applications. Furthermore, the Adopted budget includes existing contracts from FY22-23 that will continue in FY23-24, including an agreement with the Yolo Resource Conservation District for Climate Action and Adaptation Planning support and the Equitable Community Engagement Strategies contract funded by state and American Rescue Plan funding. The division also requested $150,000 for professional services to have a consultant assist in preparing 4 to 6 grant applications for the adaptation plan. However, staff do not recommend approval of this request at this time, as the $55,000 in Extra Help included in the Adopted Budget, and the $50,000 in Extra Help approved in the Recommended Budget were requested for the same purpose.
The Adopted Budget for Roads/Public Works includes $80,000 to replace a grader for road maintenance and another $80,000 to modify Environmental Health's truck to make a chipper body for road maintenance usage. Fund balance will offset these requests. The division's budget also includes minor adjustments to its insurance and the removal of its vehicle equipment request from the Recommended Budget, as it is no longer needed to be replaced.
Adjustments in the amount of $279,000 are being recommended in the Transportation Adopted Budget following the release of the Yolo County Transportation District budget. This division acts as a pass through of certain local transportation funds for the Transportation District.
Fleet Division includes the leave buyout of their Fleet Services Superintendent, who is expected to retire in FY23-24, along with adjustments to insurance charges. There is also an increase of $10,000 for a code reader scanner, which was approved in Recommended Budget, but the quote came in higher than expected.
Integrated Waste Management (IWM) Division includes an increase of $366,000 in building and equipment depreciation to adjust the budget closer to prior year actuals. Furthermore, some items were missed in the Recommended Budget for professional services and are being added, increasing expenditures by $255,000. Buildings and improvements were increased by $530,000 due to the design for CR104, the Butterfly Electric-IVD Electrical control system project, planned improvements to the public facing appliance collection and processing area, and the reduction of $30,000 due to corrections from Recommended Budget. Due to heavy rainfall received earlier this calendar year, the division is increasing expenditures by $930,000 for the Leachate pumping to the City of Davis. A limited-term Solid Waste Attendant new position is added to the Adopted Budget. The position was already approved by the BOS meeting on 8/29/2023. Fund balance and charges for services will fund these requests.
County Administrator's Office
The Adopted Budget for the County Administrator's Office includes an increase of $43,000 in workers' compensation insurance and general liability charges due to increases in coverage costs that were unknown during the Recommended Budget process. These increases are offset by transferring a position to the Department of Community Services, where special revenues are now funding the incumbent. Additional General Fund savings from this action are being utilized to offset increased expenditures in other General Fund departments. Staff recommend approval of these adjustments, along with a series of adjustments to the Rural Initiatives and Yolo Electric budgets that do not have a General Fund impact.
Staff also recommends approval of $800,000 in appropriation related to the Fire Preparedness Grant-LNU Fire. These grant funds from the state were received in the prior fiscal year and are being appropriated as part of the Adopted Budget process.
The department requested one ongoing augmentation related to the Yolo 211 Call Center ($9,700). An increase in the County portion of funding to support this program was requested due to increases in the level of service the vendor is now providing. Staff recommended approval of this funding request.
County Counsel
The Adopted Budget for County Counsel includes an increase of $32,000 in workers' compensation insurance and general liability charges due to increases in coverage costs that were unknown during the Recommended Budget process.
County Service Areas (CSAs)
Staff recommend adjustments to several County Service Area budgets. These include an increase in special assessment revenue of $24,000 in the Wild Wings County Service Area (CSA) Golf Course following the Board's May 9 adoption of a resolution approving adjustments to the per parcel charges at Wild Wings, among other CSAs. In addition, a loan adjustment was included in the golf course budget related to Wild Wings water and sewer. The Wild Wings Golf Course has up to three years (6/30/2026) to pay back its loan to Water and Sewer.
Additionally, the Wild Wings CSA sewer budget includes an increase of $166,000 in general liability costs. Snowball is increasing its use of fund balance and professional services to pay expenses for MBK's General Flood Management Services and CSA District Engineer Services ($63,000).
District Attorney
Staff recommends additional funding to the District Attorney's Office for increases in Workers' Compensation and Liability expenses ($12,000) in addition to one-time funding for an expert witness to provide support as it relates to expansion of the Racial Justice Act ($300,000)
In January of 2022, the Racial Justice Act was enacted in the State of California. This legislation determined that the state could not "seek or obtain" a criminal conviction or impose a sentence on the basis of race, ethnicity, or national origin. If prosecuted individuals believed they had been convicted in violation of the Act, they could submit motions for resentencing. However, the original legislation did not apply to individuals whose sentencing had occurred prior to January 1, 2021. Beginning January of 2024, the Racial Justice Act is being expanded to all individuals currently incarcerated who have no other avenue for resentencing. The department intends to utilize the recommended funds to secure expert analysis related to effectively responding to motions related to the Act. The scope of the work may include independent and proactive review of DA data to determine whether racial disparities related to the prosecution and punishment of racial minorities exist. It may also include analysis and expert testimony to respond to motions filed asserting a violation of the Racial Justice Act. The department anticipates that this could affect up to 350 cases.
During the Recommended Budget process, funding for several promotions ($149,000) was requested by the District Attorney's Office and was deferred to the Adopted Budget. The department also requested the conversion of a Limited Term Crime & Intelligence Analyst to a Regular full-time employee. The incumbent was formerly funded by a grant which concludes on September 30. Additionally, the department requested funding for Extra Help, leave buyout, and two replacement vehicles. Due to the limited availability of funding, these requests are not recommended for approval.
Financial Services
The Department of Financial Services (DFS) Adopted Budget includes a $50,000 augmentation for a necessary upgrade to the Sherpa budgeting system to update the global ledger following the County's transition to Infor Cloudsuite. The department has also requested $40,000 to assist the Agriculture and Assessor/Clerk-Recorder/Elections departments in completing a fee study. Financial Services will oversee releasing an RFP and choosing a consultant to complete this process, which should allow Agriculture and ACE to adjust their public-facing fees during the Spring master fee revision. Staff recommends approval of both requests.
The Adopted Budget for Financial Services also includes minor adjustments related to Workers' Compensation and Public Liability charges, along with an increase in revenue of $10,000 for the Chief Budget Official's continued time supporting the Probation Department due to ongoing difficulties recruiting a Fiscal Officer.
Due to the limited availability of funding, the department's requests for leave buyout ($15,000) of its Internal Audit Manager and one-time funding of $60,000 to double fill the Internal Audit Manager position prior to the incumbent's retirement, along with requests for funding for several promotions and conversion of a limited-term Accountant II to regular, are not recommended.
General Services
The General Services Adopted Budget in the Facilities Division includes funding for HVAC replacement units at 100 W. Court St. ($50,000), Fire Panel and System Replacement at 500B Jefferson ($150,000), replacement of two vehicles, and purchase of isolation valves. Staff is recommending funding of the HVAC Replacement units and the isolation valves utilizing available Accumulated Capital Outlay (ACO) funds, while the replacement vehicles and Fire Panel and System replacement are recommended to be funded by the General Fund.
Additional requests in the Facilities Division include items and project funding that were originally requested during the Recommended Budget process. With the current economic outlook and funding being limited, many of these items are not being recommended for funding and appear in the table below:
The Procurement Division is requesting the conversion of the Lead Buyer position to a yet-to-be-created position with a salary commensurate to a Senior Administrative Analyst and an additional cost of $7,078 per year. Currently, staff are not recommending approval of this request as the minor increase in cost can be absorbed by the Division.
The Graphics Division requested funding to purchase new equipment for the division. The equipment requested includes a new envelope machine, a printing engine, and a mail sorter, which total $229,303. Currently, staff are not recommending approval of this request.
The Parks Division is anticipating increased revenues of $397,000. These increased revenues are attributed to an additional $317,600 in Prop 68 grant funding, $65,000 in prior year Cannabis Funds, and an additional $14,400 in ARP funds intended to provide funding for local park rehabilitation and improvements. Additionally, staff is recommending approval of the Division's request for a Supervising Parks and Facilities Maintenance Worker, as supervision is essential for park upkeep, taking on new projects, and adding additional parks throughout the county. Other requests in the Parks division include requests for a concrete pad at the Grasslands Regional Park ($200,000), funds for the purchase of a backhoe/bucket and dump trailer ($47,100), and funding for a new Parks and Facilities Worker ($73,825). These items are not being recommended for funding.
Included in the Airport's Adopted budget are additional revenues of approximately $721,000 due to additional State and Federal funds being budgeted for the Airport Run-up Aprons project.
Additionally, the Airport included requests for an Airport Taxiway and Run-up Striping ($8,500) and a part-time Airport Manager ($80,749). These items are currently not being recommended for funding. The Airport Manager is currently an Extra Help employee. While the division does not currently have an extra help budget, the department believes extra help costs related to the Airport Manager can be absorbed due to savings in the department's salary allocations. General Services and the Department of Financial Services will monitor the expenses and request adjustments as needed.
Human Resources
The Human Resources Adopted Budget includes an increase of $25,000 in the Human Resources and Risk Management Divisions due to increases in the department's Workers' Compensation and General Liability Insurance costs. Additionally, an augmentation request of $80,000 to fund internal investigations as they arise throughout the year is recommended for approval. Lastly, the Adopted Budget includes an additional $10,000 to hire a consultant to aid in the revamping of employee performance evaluations as well as covering expenses for the mentoring program and YES team branding.
The department also requested $50,000 to fund the County's leadership academy, mentoring program, wellness initiative, as well as cover costs associated with the Qualtrics system, which is used for Employee Exit surveys. Due to limited funding, these requests are not recommended for funding at this time.
Health & Human Services Agency
The 2023-24 Adopted Budget for the Health & Human Services Agency has a significant increase of $2 million in General Fund support for the updated Jail Medical Services contract, which was in the procurement process at the Recommended Budget. A sole provider offers these services and requires drastic price increases to continue providing the mandated service.
Additionally, the 2023-24 Adopted Budget for HHSA includes 7 new positions funded by state and federal sources. These positions include 6 new Service Center Public Assistance Specialists needed due to increasing caseloads in CalWORKS and CalFresh. There is no General Fund impact in the 2023-24 Adopted Budget. Nevertheless, in future fiscal years, the General Fund will absorb about 5% of these positions or an estimated $13,000 using current personnel estimates.
Other positions recommended for funding with non-General Fund sources are highlighted in the position summary table above and include one Emergency Medical Service Program Coordinator funded for an additional year, conversion of one Clinician I from Limited Term to Permanent, and one Health & Human Services Program Manager I funded with the new BHBH Homeless Grant. Additionally, one Emergency Preparation Specialist has been removed because state funding is no longer available for the position.
The department has requested one additional Conservatorship Officer in the Public Guardian branch to assist with the growing caseload. This is a 100% General Funded unit and is not recommended for approval due to available funding at this time.
The 2023-24 Adopted Budget for HHSA also includes adjustments in County Overhead costs, Workers' Compensation, and Public Liability Insurance from the Recommended Budget. The effect of those adjustments totals $1.8 million, with the most significant increases seen in HHSA Administration ($1.1 million) and Mental Health ($420K). These expenditures will be funded through a mixture of base savings in other departments and by leveraging additional state and federal dollars, including increased Federal Financial Participation through the newly mandated California Advancing and Innovating Medi-Cal (CalAIM) process. Additionally, increased revenues are expected through the CalWorks Housing program and CalFresh allocation, which will offset these charges. Due to uncertainty surrounding the newly introduced CalAIM process and additional leveraging of intergovernmental revenues, it is expected that HHSA will provide an update during the mid-year budget process to confirm if revenues are being received as expected and adjust accordingly.
Also included in the Adopted Budget is $550,000 to remodel the Gonzales Building Lobby and the West Sacramento 500A Office. Renovations are necessary due to aging infrastructure, and ADA accessibility will be added to the staff entrance at the West Sacramento location. Approximately 7%, or $41,000, is funded with General Fund. This project is a part of the department-wide Project Refresh initiative designed to update HHSA facilities that have become outdated.
Innovation & Technology Services (ITS)
ITS is projecting revenue increases of $15,430 due to additional funds for the Homeland Security grant. This grant is intended to create a mobile application for field collection on individual addresses. This will allow public safety agencies such as police and fire departments to quickly identify where they are needed through Geographic Information System (GIS) instead of searching an entire apartment complex or mobile home for the apartment or unit number. These funds are offset by $13,800 in extra help dollars along with incidental Service and Supply expenses intended to provide support for the intern assigned to the grant. Additional expenditure increases within the department include approximately $49,000 in revised workers' compensation and general liability charges that are to be recouped in the departmental charges to departments.
Innovation and Technology Services also requested $80,000 for a Team Dynamix subscription and $200,000 for a new website platform. Due to limited general fund dollars, staff are currently not recommending funding for these items. Additionally, a request of $12,971 was included for a departmental promotion. However, staff is currently not recommending funding for this item as departments have been asked historically to absorb promotions elsewhere in their budget.
Library
The Library's FY23-24 Adopted Budget includes an adjustment to its insurance charges ($52,000) and County overhead charges ($453,000), funded by available fund balance. In addition, the division is un-funding and eliminating their grant-funded limited term Library Associate position because the grant came in far lower than anticipated. They will be using the grant funds for an extra help position instead.
Furthermore, two outbuildings at the Gibson House Museum were hit by cars in two separate incidents in FY2023. The Adopted Budget includes the use of fund balance ($70,000) to cover the costs of repairs to the building and items affected.
Probation
The Probation Adopted Budget includes an increase in various expenditure accounts in the Administration unit. Some notable increases include $13,000 for the Docusign E-warrant system and approximately $6,800 in transportation and travel due to a previously unbudgeted car allowance. Additionally, the division saw an increase in workers' compensation insurance charges of $11,824 due to a recalculation of departmental charges. These expenses are offset by a $13,000 reimbursement for e-warrants and an increase in expense transfer reimbursement of approximately $20,000.
Adult Probation Services is anticipating a reduction in the State Post Release Community Service revenues of $45,000 as well as increases in expenditures. The department is able to absorb these increases by reallocating Proposition 172 revenues from other units. Notable increases in expenditures include a $27,000 increase related to maintenance and building improvements due to prior year actuals for General Services related costs being higher than anticipated. The department also requested $53,000 for Carpet Replacement at the West Sacramento Probation Office and $85,000 for a new vehicle and outfitting of the vehicle. Currently, staff is only recommending funding for the vehicle and vehicle outfitting.
The Juvenile Detention unit is projecting a revenue decrease in their unit; however, this is simply a reallocation of Proposition 172 funds as expenditures decreased in the unit. Expenditures decreased due to the recalculation of insurance charges, which resulted in savings of approximately $167,000. Additional expense decreases include a net reduction in Professional and Specialty Services of $31,000 due to a reduction in the Yolo County Office of Education contract and adding $35,200 for Motivating Individual Leadership for Public Advancement (MILPA). This unit also saw an increase in Building and Improvement fees of $30,000 due to General Service Fee increases.
Juvenile Probation Services are anticipating a net increase in revenues of $21,452. This is due to an increase in anticipated Juvenile Reentry Grant revenues. Additional changes in expenses include an increase for Workers' Compensation Insurance of $15,000, an increase in General Services Fees for building improvements of $9,000, and a reduction in the division's salary allocation of approximately $4,000.
The Youth Offender Block Grant is projecting a net revenue decrease of $115,306. Though realignment revenues increased by $47,490, additional use of fund balance was required to balance the unit due to increased expenses such as $85,000 for a new vehicle that will be paid for in its entirety with Youth Offender Block Grant funding and an additional $16,000 for the Ohio Youth Assessment System Detention tool (OYAS).
The Juvenile Justice Crime Prevention Act is anticipating additional realignment revenues of $73,370. Though an increase is expected in realignment revenues, expenditures increased as well, requiring an increase in the use of fund balance of $236,000, resulting in a net increase of $309,573 in revenues. These increases are offset by an additional $152,000 in expenses related to the Yolo Conflict Resolution Center (YCRC) contract. The department previously received grant funding to provide YCRC services to justice-involved youth and chose to continue those services at their own expense. Additional notable increases include $100,000 for the Juvenile Detention Facility and an increase to the division's salary allocations of $44,000.
Other items in the Adopted Budget for Probation include reallocations and adjustments of overhead expenditures, salary and benefits, and services and supplies within the various divisions and programs to align staffing with the department's current needs. Instead of requesting additional General Fund for the reallocated positions, Probation was able to absorb these movements due to the reallocation of Proposition 172 revenue.
Public Defender
The Public Defender's Adopted Budget includes $55,000 in Extra Help for the department's paid intern program. The Paid Intern program is essential to attracting and retaining qualified attorney staffing while deepening diversity in the Public Defender's Office. Staff are recommending approval of this request.
The Public Defender's Office also requested 4 new Deputy Public Defender positions, a new Paralegal position, and a new Associate Administrative Services Analyst totaling approximately $948,000. Additionally, a replacement vehicle was requested in the investigations/mitigation units as the current vehicle is approaching 100,000 miles. Finally, the Public Defender requested $11,600 for promotions. Due to the limited funding available during the Adopted Budget, staff are not recommending these items for approval.
Sheriff
Staff recommend approving several augmentation requests included in the Sheriff's Adopted Budget. These include the purchase of a Crisis Negotiation Team van (along with necessary outfitting), the outfitting of a vehicle within the Marine Patrol Division, and Extra Help funding for the Public Administrator's Division.
The Crisis Negotiation Team Van ($108,000) will be utilized by a team of Yolo County Sheriff Deputies who possess specialized skills in dealing with individuals in crisis. Deputies have equipment and experience that allows them to assist with barricaded subjects, hostage negotiations, and those individuals threatening self-harm. This team works closely with members of the SWAT Team when appropriate to resolve threatening situations quickly and with the least amount of conflict. This van will provide dedicated transportation and storage to the team.
The Marine Patrol Division received one-time revenues from the Department of Boating and Waterways in the amount of $143,000. This revenue is being used to offset the cost of outfitting a previously purchased vehicle and to reduce the net county cost of the program. Additional savings generated by this revenue are being used to offset other expenses within the department.
The Public Administrators Division has seen an increase in caseload over the past two fiscal years. Given the small size of the division, the department has requested Extra Help funding to provide temporary support to the division while it ascertains if the increase in caseload is likely to become the new baseline.
Staff recommend the one-time purchase of a Dental X-ray scanner ($19,800) for the Coroner's Division. Purchase of the equipment will decrease cadaver transportation expenses when this service is required, as it is currently being provided by neighboring agencies. Similarly, staff also recommend $106,000 in one-time funding for the division to provide DNA identification of John and Jane Doe cases. The department estimates the approved funding would provide resolution to the families of 13 currently unidentified bodies.
Capay Valley Patrol has budgeted to purchase portable radios and ballistic shields to support the unit. The Yocha Dehe Wintun Nation will reimburse these expenses as part of their county's agreement to provide dedicated patrol services within the valley. Staff recommend approval of these requests.
The Adopted Budget for Court Security includes increases in anticipated state revenue, along with reductions in both Workers' Compensation and Public Liability costs. These savings are being utilized to offset expenses in other programs within the department.
The Adopted Budget for Animal Services includes adjustments related to the recent approval of contracts with other local jurisdictions, which assist in supporting the program. Following jurisdictional contract negotiations, these adjustments include funding the addition of a $120,000 Animal Services truck and outfitting and a required increase in the County's contribution to the program.
The Sheriff's Small and Rural special funds will be funding a number of requests, including rebudgeting of the final phase of the Records Management System/Jail Management System (RMS/JMS) software implementation ($150,000) and to fund a satellite office in Esparto ($62,000). This satellite office, located at the Esparto Health and Community Center office, is intended to support deputies patrolling the Capay Valley with a location to complete reports, communicate with Command staff, and replenish supplies without returning to the Sheriff's Woodland campus.
Use of COPS Detention fund balance ($60,000) is also recommended to offset costs related to a renovation of the Records area in the Detention unit. Staff also approve using one-time funding to assist in funding a cell-to-shower conversion at the Monroe Detention Center ($20,000).
The Sheriff's Office also requested a number of new positions as part of the Adopted Budget. These include:
Given the limited nature of available on-going funding, these requests are not recommended for approval at this time.
The department also requested $600,000 in additional overtime funding for the Detention division, along with extra help funding in the Patrol Division. The department also requested funding for several equipment purchases of radios and ballistic shields. After discussion with the department and prioritization of their funding requests, these requests are not recommended for funding.
Contingencies
The County policy on Fund Balance and Reserves identifies appropriations for contingencies as the first line of defense against uncertainty in the annual budget. It provides that the County Administrator will recommend a specific level of appropriation for contingency, usually between 1% - 3% of total budgeted expenditures. The proposed Adopted Budget includes an additional $2,342,535 in appropriation for various contingencies, as outlined below. With the exception of the Safety and Security Contingency as described below, the use of contingency funds will require subsequent approval by a 4/5 vote of the Board of Supervisors.
General Fund Contingency – It is recommended that an additional $1,170,714 be added to the General Fund Contingency to cover unexpected expenditures. The total amount of $2,477,956, or 1.6%, will be used to cover unforeseen expenditures for FY23-24.
HHSA Contingency – The amount of $1,027,381, or 1%, was approved in the FY23-24 Recommended Budget. No further contributions are recommended at this time.
Public Safety Contingency – It is recommended that an additional $500,000 be added to the Public Safety Contingency. This contribution will bring the Public Safety Contingency to $1,210,000, or 1.4% of public safety expenditures for FY23-24.
Roads Contingency – It is recommended that $200,000 be added for the FY23-24 Roads Contingency. The Roads contingency allows for pre-planning activities within the Department of Community Services.
Fire Sustainability Contingency – It is recommended that $471,821 be budgeted as a Fire Sustainability Contingency. During the 2022-23 Fiscal Year, $550,000 was budgeted for Fire Sustainability. The recommended amount for FY 23-24 is the remaining balance of that contingency.
Safety and Security – No additional contribution to the Safety and Security Contingency is recommended. A contingency of $100,000 was budgeted during the Recommended Budget process, which brought the Safety and Security Contingency to a total of $100,000 for FY23-24.
Child Support - An amount of $30,000 was approved in the FY23-24 Recommended Budget. The funds provide a small amount of general funds that could be utilized if needed to maximize Child Support's State and Federal funding.
Reserves (Attachment J)
General Reserve – The Board Policy on Fund Balance and Reserves establishes a General Reserve target of 10% of average General Fund expenditures. During the FY23-24 Recommended budget process, the County was able to provide funding to maintain the Reserve at 8% by utilizing available funding from the Chula Vista fund. Due to limited additional General Fund resources, for the 2023-24 Adopted Budget, staff recommends a contribution of $1,408,874 from the Chula Vista fund to bring the reserve to 8.5%.
CIP Reserves – No contribution was made during the Recommended Budget process. During the Recommended Budget hearing, the Board approved transferring $1.9 million of this reserve to the South Davis Library fund. The remaining balance in the CIP Reserve is $1,442,115. No contribution is recommended at this time.
Audit Disallowance Reserve – Each year, the state and federal government audit a variety of programs and may disallow payments for a variety of reasons. The Audit Disallowance Reserve protects the County against the risk of disallowances that result in a claw back of state or federal funding. The State Controller's Office recently initiated an audit of the District Attorney's Child Abduction program, for which the County receives state reimbursement as a mandated program. Based on recent SCO audits of this program in other counties, there is a high risk of negative audit findings and potential return of funding to the state. Over the four-year audit period, the County has received $2.5 million in state funding for this program. Due to this heightened risk, staff recommend a contribution of $600,000 to the Audit Disallowance Reserve as part of the FY 2023-24 Adopted Budget, bringing the balance to $2,600,000.
Liability Reserve – The liability reserve protects against future litigation or claims against the County. County Counsel has indicated that a liability reserve of $600,000 should be sufficient to protect the County from litigation exposure. Because the County has met this threshold, no additional contributions are necessary for FY23-24.
The tables below summarize the total reserve and contingency amounts included in the FY23-24 Adopted Budget, inclusive of amounts that were previously approved in the Recommended Budget.
*Reflects estimated FY23-24 contributions and balances based on projected department charges and premium payments.
Community Corrections Partnership
The proposed Adopted Budget for the Community Corrections Partnership (CCP) reflects an anticipated increase in both base and growth allocations, increasing anticipated revenue in the fund by $475,000 over the Recommended Budget. The Adopted Budget also includes a one-time allocation or grant of $50,000 towards the purchase of a vehicle by Communicare Health Centers purchase of a vehicle. The vehicle will be utilized to support CCP clients participating in specialty courts who may not otherwise have access to reliable transportation. The Adopted budget for the CCP is reflected in the table below:
The CCP moved to percentage-based budgeting in FY21-22 and recently approved its 2023-25 Strategic Plan. Expenditures in the FY23-24 CCP budget make investments into programs and staffing that align with the updated Strategic Plan. The CCP will return to the BOS in January to present its annual report.
Cannabis Tax Expenditure Plan
In FY22-23, the County received approximately $404,000 in Cannabis Tax revenue and had additional interest earnings and unallocated funds from prior years for a total of $550,000 available to allocate. The County appropriated $620,000 during the recommended budget on June 13, 2023, using Cannabis revenues collected for the first two quarters of FY22-23 and assumptions regarding the remainder of the year, in addition to estimates of available fund balances. After the 4th quarter collections were completed (in July 2023), staff updated figures with the actual final collected amounts for FY22-23. While tax revenues remained in line with expectations in the Recommended Budget, available fund balances came in below projections by approximately $135,000.
Pursuant to the County's cannabis tax ordinance, staff drafted the updated expenditure plan for the Adopted Budget (Attachment I). The plan continues to provide funding to each of the five funding priorities identified in the Board's cannabis tax general framework (Criminal Enforcement of Illegal Cultivation, Early Childhood Intervention and Prevention, Youth Development, Rural Investment, and Financial Sustainability). However, due to limited funding, no additional expenditures are recommended at this time. It is recommended that the Cannabis Tax Plan reserve be reduced from $110,000 to $40,000 to keep the expenditure plan balanced. The proposed expenditure plan was presented to the Cannabis Ad-Hoc Subcommittee on September 5, 2023, and the Citizen's Oversight Committee on September 18, 2023.
Rural Community Investment Program
The Rural Community Investment Program (RCIP) is a mechanism for advancing unaddressed programs, policies, and initiatives in rural unincorporated areas. In prior years, staff from the County Administrator's Office and Yolo County Housing gathered information on the interests of the rural communities to target potential County and grant funding resources. Information was gathered through conducting town meetings in some of the rural areas. Staff also reviewed the needs identified in the action plans of Capay Valley, Clarksburg, Knights Landing, and the Yolo County Agricultural Labor Study.
Investments recommended for FY23-24 were driven by prior outreach efforts and internally identified funding needs. Historically, the RCIP has been funded with General Fund revenues. Due to budgetary constraints on the General Fund, staff recommends funding the $206,825 in projects identified in the table below with Cannabis Tax revenues. This proposed use of Cannabis Tax revenues is consistent with the general Cannabis Tax expenditure framework previously adopted by the Board and falls within the specific category related to investment in rural infrastructure and support. These projects are included in the FY 23-24 Cannabis Tax Expenditure Plan. More information on RCIP may be found on the County's website.
Capital and Maintenance Projects
Accumulated Capital Outlay (ACO)
The proposed Adopted Budget for Accumulated Capital Outlay (ACO) includes $50,000 in additional funding for the replacement of four HVAC units located at the Child Support/ITSD building at 100 W. Court Street, Woodland. These aged units, believed to be as old as twenty-seven years, were not replaced as part of the TRANE energy efficiency project, as the County did not own the building at the time. The ACO budget also includes funding for several previously approved projects.
Capital Improvement Program
The Adopted Budget includes continued funding for the Yolo Bypass West Levee Outfall Project. Approved by the Board in April 2022, the project was funded with ACO funds in FY 22-23. The Capital Improvement Program also includes improvements at the Knights Landing Park and final expenses related to the Infor CloudSuite project. No adjustments are being made to those budgets at this time.
Carryforward Appropriations
The FY23-24 Adopted Budget includes $8.4 million in unused appropriations from FY22-23 that will be encumbered and carried forward into FY23-24. These appropriations are for one-time purchases that have been ordered but not yet paid for, or for specific one-time projects or initiatives that were not completed by year-end. Examples include vehicle purchases that have not yet been invoiced, or contingency funds awarded for a specific project that had not yet been completed. The purpose of carryforward appropriations is to ensure sufficient budgetary authority to meet contractual obligations and to carry out Board directives. A summary of carryforward items and amounts by department is provided in Attachment B. All carryforward appropriations have been incorporated into the FY23-24 Adopted Budget and are included in the budget totals reflected in the budget resolution Attachment C, Exhibit C1.
Looking Ahead
Looking past the Adopted Budget, the County has several additional significant fiscal matters in various stages of being addressed that are important to highlight for the Board's awareness.
Labor Negotiations
Since the Recommended Budget was approved, the County completed labor negotiations with two bargaining units whose agreements expired on June 30, 2023. Negotiations continue with one other bargaining unit. These agreements may result in higher labor cost increases for these labor units than originally anticipated in the Recommended Budget. Those labor increases are expected to be absorbed in department budgets. However, should departments determine over the course of the year that labor costs cannot be absorbed in their budget, they may request contingency funds to close the gap at regular budget monitoring intervals (e.g., Mid-year, third-quarter, year-end).
In Home Supportive Services (IHSS)
The County's MOUS with IHSS providers expires September 30. It is anticipated that a successor agreement will result in additional costs to the County through an increase in the County's Maintenance of Effort (MOE). Additionally, recent changes in state law (AB120) made ongoing the 1991 Realignment withholding penalty (equal to 10% of the county's prior year IHSS MOE) for counties which are unable to reach agreement with provider unions and have concluded the factfinding process with the factfinding settlement terms favoring the providers.
Pension Funding
The FY23-24 Adopted Budget includes $59.1 million in employer pension contributions, an amount largely unchanged from the FY23-24 Recommended Budget. Employer contributions for FY23-24 were determined in the CalPERS Annual Valuation Report as of June 30, 2022. As discussed with the Board on several occasions, employer contribution rates have increased significantly over the past several years and are projected to continue rising for a few more years before stabilizing. These increases are driven by a combination of changes in CalPERS' demographic and investment assumptions, including a lower targeted rate of return, investment results, and amortization policy. The table below shows the projected pension rates over the next five years.
Other Post-Employment Benefits
The FY23-24 Adopted Budget includes $12.7 million in OPEB charges to departments, an amount that is substantively unchanged from the FY23-24 Recommended Budget. The OPEB actuarially determined contribution rate of 7.7% of payroll was held constant with the rate included in the FY21-22 Budget.
In May 2011, the Board approved the creation of an irrevocable trust to accumulate assets to reduce the OPEB liability. The initial policy had a funding ramp-up over 15 years; however, the County achieved that ramp-up sooner than anticipated and, in November 2019, updated the policy to fund the trust at the actuarially determined contribution level. The OPEB trust is expected to have a balance of approximately $37.9 million at June 2023, and this is estimated to increase to $40.8 million based on contributions in FY23-24.
In addition to funding the OPEB trust, significant progress has been made in lowering the overall OPEB liability by implementing benefit caps for most employee units. As a result of these efforts, the overall OPEB liability declined by $3.5 million in the June 2020 valuation. An updated report is currently being finalized and will be presented to the Board in the coming months.
State/Federal Mandates
The County continues to monitor the State and Federal budgets for programmatic mandates that the County should prepare for. The State has added significant new requirements for counties in recent years. While recently they have included funding, it is unclear whether that trend will continue. The two significant mandates that are known and costs are estimable include a Growth Cap for Incompetent to Stand Trial (IST) and Care Court.
Despite advocacy efforts through the spring and summer, the County will still be required to pay an estimated IST Growth Cap penalty of $539,000 later this year. This amount is presently unbudgeted, though a working group composed of representatives from the District Attorney's Office, Public Defender's Office, HHSA, Probation, the Sheriff's Office, and Financial Services is working on developing funding options for future BOS consideration and approval.
In addition, the County will face implementation of Care Court in the fall of 2024 and will need to begin preparing for implementation in the upcoming budget year. Early estimates are that approximately $3 million in treatment and housing costs and $1 million in legal defense costs ($4 million total per year) may be needed to serve this population; however, funding remains unidentified. The state has thus far committed a $250,000 one-time allocation for startup costs. However, discussions continue in the state budget regarding additional funding. These mandates need to continue to be closely monitored and revisited throughout the year due to their potential to put significant additional pressure on County resources.
Conclusion
The Adopted Budget attempts to make strategic investments given limited ongoing resources and a sizable reduction in available fund balance. The budget works to strengthen the County's financial safety net by funding contingencies and providing for a half percentage point increase towards the Board's goal of a 10% General Reserve. The inability to fund most departmental augmentations, whether ongoing or one-time, underlines the present inflationary environment and the possibility of economic slowdown or recession. The budget recognizes that one-time resources have likely peaked, and fiscal prudence is of paramount concern as we look toward the future. At the same time, the County is strategically seeking substantial state and federal funds that may benefit constituents now and in the future. However, the County must still be cautious not to become overly dependent on these sources or to assume that expenditures can be sustained at a heightened level when state and federal support concludes.
State law requires that the Board adopt the annual budget by October 2 of each year. The attached budget resolution (Attachment C and Exhibit 1) is based on the FY23-24 Recommended Budget as approved by the Board of Supervisors on June 13 and revised by the recommendations in this report. These recommendations have been reviewed with the Chair and Vice Chair in accordance with the Board's Governance Manual.
The County Budget Act (Gov. Code Section 29000-29144) establishes levels of authority for approval and modification of the County's budget. Prior to approval of the Adopted Budget, the Board of Supervisors may make changes to the Recommended Budget with a majority vote. Once the Adopted Budget is approved, and upon conclusion of the public hearing, most budgetary changes require a four-fifths vote of the Board. Such changes include transfers between funds, appropriation of any fund balances or unanticipated revenues, transfers from contingency appropriations, and appropriation of reserve balances. If overall appropriations are not increased, transfers between budget units within a fund only require a majority vote. If overall appropriations are not increased, staff may perform transfers or changes within a budget unit administratively.
Preliminary Fund Balance Report
The Preliminary Fund Balance Report (Attachment A) is a general accounting of the fund balances for all County funds as of June 30, 2023. Fund balance used or not available indicates amounts that are either already appropriated for use in FY23-24 or that are not available for current spending (such as prepaid expenses and inventories). The available fund balances are those remaining amounts that can be used in the manner outlined in statute. The Level of Restriction column identifies how much flexibility the Board has in directing the use of those available funds. It should be noted that the fund balances in this report are preliminary and, therefore, subject to change until completion of the annual financial audit.FY23-24 Adopted Budget
On June 13, 2023, the Board approved the FY23-24 Recommended Budget, which provided appropriation authority until the Adopted Budget is approved. The proposed FY23-24 Adopted Budget incorporates changes to the Recommended Budget based on revised revenue projections, available fund balances, changes resulting from the State budget, additional department requests and Board priorities.
Since the approval of the Recommended Budget, certain revenue streams continue to show signs of growth; however, the broader economy continues to display signs of slowing, and concerns regarding the possibility of a recession in the near term remain. Updated projections reflect an increase in FY23-24 general purpose revenues of approximately $2.4 million. These additional dollars are largely due to increases in property tax, sales tax, and overhead costs reimbursement that were not included in the Recommended Budget, as discussed further below. In addition, due primarily to continued high vacancy rates, the County ended the prior year (FY22-23) with an estimated $17.8 million in General Fund unassigned fund balance, $3.8 million more than what was appropriated in the Recommended Budget. These additional funding sources allow the County to make targeted strategic investments while leveraging resources to prepare for more challenging economic times in the future.
A total of eight new positions are being recommended for funding in the Adopted Budget. However, of the eight positions, only one position is funded by the General Fund, while the remaining seven positions are fully funded by a variety of other non-General Fund sources. Two positions are recommended for elimination, for a net increase of six positions.
The table below summarizes position changes that are recommended in the Adopted Budget. Attachment G provides a comprehensive overview of all position changes and requested positions that are not recommended at this time.
| Recommended New Positions | |||
| Department | Position | FTE | Funding Source |
| General Services | Supervising Parks and Facilities Maintenance Worker | 1.0 | General Fund |
| Health & Human Services | Public Assistance Specialists | 6.0 | Federal/State |
| Health & Human Services | Health & Human Services Manager I | 1.0 | State |
| Subtotal | 8.0 | ||
| Positions Unfunded and Eliminated | |||
| Department | Position | FTE | Funding Source |
| Health & Human Services | Emergency Preparedness Specialist | (1.0) | State |
| Library | Library Associate | (1.0) | State |
| Subtotal | (2.0) | ||
| Net Position Requests | 6.0 | ||
Economic Outlook
At Recommended Budget, it was noted that the economy generally had recovered from the COVID-19 pandemic as Gross Domestic Product had increased, and the unemployment rate was returning to pre-pandemic levels. However, it was also noted that US economic growth is slowing, and concerns regarding the likelihood of a recession in the near term remained. While persistent inflation following the COVID-19 pandemic is headed downward, and the likelihood of severe recession has eased, the County continues to experience cost pressures greater than the gains in forecasted revenues. These cost pressures come from various sources, but primarily from increasing salary and benefit costs as we adjust to the new Countywide compensation process.
The Recommended Budget also noted the County's continued reliance on fund balance to cover ongoing costs, along with significant increases in the use of budgeted salary savings. This approach is likely to reduce the available fund balance in future years. While the Adopted Budget addresses certain areas of concern, including the increased cost of Jail Medical Services, it does not yet grapple with other upcoming state and federal mandates. In tandem with slowing growth in discretionary revenues, these expenses will likely make balancing future budgets difficult.
Considering the challenges the County may face in future fiscal years, the Adopted Budget makes use of ongoing resources in a conservative and strategic fashion, addressing the most pressing concerns. Available fund balance is being used similarly. While a number of one-time departmental requests are being recommended for funding, staff also recommend allocating additional funds to contingencies and reserves, including additional funding to increase the County's General Reserve from 8% to 8.5%. Further discussion of recommended increases to reserves and contingencies is included below. Overall, the Adopted Budget takes a measured yet opportunistic approach in its recommended actions, addressing immediate issues while widening the County's financial safety net.
The sections below discuss significant proposed adjustments included in the Adopted Budget.
General Fund
The General Fund ended FY22-23 with a preliminary estimated available fund balance of approximately $17.8 million. In anticipation of high fund balances resulting from abnormally high unbudgeted vacancy rates, the FY23-24 Recommended Budget included approximately $14 million in estimated carryforward fund balance as a funding source. As a result, an additional $3.8 million in fund balance is available for appropriation in the Adopted Budget.
For context, the table below shows the unassigned General Fund balance over the past five years.
| FY17-18 Actual* | FY18-19 Actual | FY19-20 Actual | FY20-21 Actual | FY21-22 Actual | FY22-23 Preliminary |
| $13,653,830 | $14,250,635 | $10,510,023 | $17,451,809 | $20,185,352 | $17,878,772 |
| * Does not include $3.5M from one-time SB90 reimbursement. | |||||
General Fund unassigned fund balance has been high and generally increasing for several years; however, staff believe that fund balances reached a peak at the end of the 2021-22 fiscal year. The preliminary fund balance for the 2022-23 fiscal year indicates available fund balance is declining and will likely continue to do so given the increased use of salary savings as a budget balancing solution. In addition, a slowdown in the economy may result in a corresponding decline in the rate of employee turnover. As such, fund balances available at Adopted Budget continue to be used for one-time purposes in accordance with Board policy.
The projected FY23-24 general purpose ongoing revenues have been revised to reflect an increase of approximately $2.4 million. The growth in property assessments reported by the County Assessor was 6.8 percent, or 1.8 percent higher than assumed in the Recommended Budget, resulting in an increase of approximately $1,200,000 in property tax revenue. Revenue projections were also adjusted to reflect increases in sales tax by $153,000, vehicle court fines and fees by $10,000, interest earnings by $100,000, and overhead costs reimbursement by $700,000.
The table below provides a summary of the recommended additional General Fund funding sources and uses. Attachment D provides a detailed listing of the recommended funding uses, while Attachment E further describes department requests that are not recommended for funding.
FY23-24 Adopted Budget General Fund Summary
| Funding Sources | FY23-24 Recommended |
FY23-24 Adopted | Additional Funding |
| Fund Balance | 14,000,000 | 17,878,772 | 3,878,772 |
| General Purpose | 98,166,342 | 100,569,146 | 2,402,804 |
| Net Available for Appropriations | 6,281,576 | ||
| Funding Uses | Additional Uses | ||
| Ongoing Additions | 2,099,879 | ||
| One-Time Additions | 1,365,676 | ||
| Contingencies and Reserves | 2,816,021 | ||
| Total | 6,281,576 | ||
| Department Requests Not Funded | $9,729,466 | ||
County Departments
The following sections provide an overview of the County department budgets. The narrative includes discussion about adjustments to balance the FY23-24 Adopted Budget, a summary of major programs as well as highlights of significant budget changes. Items recommended to be funded with non-general funds are included in Attachment F.
Agriculture
The Adopted Budget for Agriculture, Weights & Measures includes increases for the reclassification of a Business Services Supervisor to Senior Administrative Services Analyst as approved by the Board in July 2023. Additionally, there are minimal increases due to insurance adjustments. The department has requested a total of $11,500 for increased building maintenance to offset vandalism, employee incentives, and organic sampling, which staff is not recommending at this time. Overall, staff recommends a $18,567 increase from the Recommended Budget.
Assessor/Clerk-Recorder/Elections
The Elections Division requested funding for three augmentations within the Adopted Budget. First, the Evelyn and Walter Haas, Jr. Fund has agreed to match dollar for dollar any funds used by the Elections division for elections outreach. Elections requested $50,000 from the General Fund to conduct outreach for the upcoming Presidential Election that will result in a match from the Fund. Of the $50,000 request, staff is currently recommending $25,000 in funding. Secondly, an unexpected election for the Knights Landing Community Services District is resulting in increased revenues for the Elections division by approximately $40,000. These revenues are partially offset by increased costs of $9,000 for election related expenses such as supplies, postage, and printing. The final augmentation request from the division is for General Services to perform upgrades to the Elections office following completion of a space study. These upgrades are intended to provide additional security and functionality throughout the division and add additional offices. The department requested $135,000 to facilitate these improvements. Staff recommends approval of these one-time expenses for the Elections Division.
Additional increases in the Elections division include $80,000 for Elections supplies. Of this increase, $30,000 is for the mandated Elections Administration Plan, which is intended to provide transparency and inform voters on all aspects of the California Voter's Choice Act. The remaining $50,000 is for the increased cost of switching payroll services for election workers. These increases were offset by base reductions in other departments, so there was no net increase in General Fund support required.
The Assessor's Division is budgeting to use $167,500 in funding related to the State Supplementation for County Assessors Program (SSCAP) grant to purchase software through Tyler Technologies. Staff recommends approval of this item as there is no general fund impact. Additionally, the division experienced an increase in workers' compensation and general liability insurance costs of $23,000 due to a revised calculation in insurance charges.
The Clerk-Recorder Division requested $100,000 for construction upgrades in the Clerk-Recorder office, including reconfiguring parts of the office and adding additional office space. Due to limited funding, staff are currently not recommending approval of this item.
Board of Supervisors
The Adopted Budget for the Board of Supervisors includes an increase of $18,500 related to increases in Workers' Compensation and General Liability coverage. In addition, the budget includes an increase of $15,000 in Extra Help funding to provide the ability for each supervisorial district to have a paid intern for several months of the year. Staff will track the budget for these positions and reassess amounts, coordinating necessary adjustments with Financial Services. Staff recommends approval of this augmentation.
Regional Child Support Agency
The Regional Child Support Agency's Adopted Budget includes various adjustments, including a decrease of $30,000 due to receiving lower than anticipated Federal Performance Incentive Funds. County overhead charges were also reduced by $69,000 related to an error in the building depreciation calculation identified late in FY22-23 and other insurance charge adjustments. The department is also including a 1% salary savings factor of $77,000.
Community Services
The Adopted Budget for the Department of Community Services includes adjustments throughout the department's divisions:
Adjustments within the Planning Division include increases in workers' compensation and public liability insurance, along with revenue increases associated with the issuance of zoning permits. This increase is due to CEQA review of thirty-one Cannabis applications, which were not included in the Recommended budget. This revenue is offset by an anticipated increase in Professional Services to assist with these reviews. Staff recommend approval of all these requests.
The department also requested $120,000 in General Fund to provide seed funding for a new Abatement Fund, which would allow their Code Enforcement Officers to abate nuisance properties. In addition, the department requested funding to promote an Assistant Planner to Associate Planner ($12,000). These augmentations are not recommended for approval at this time.
The Environmental Health Division includes adjustments to insurance charges, County overhead costs, and a decrease in software cost for Envision Connect. Staff recommend approval of the divisions request for $17,000 to fund the portion of a fee study not funded by CUPA funds.
In the Climate Sustainability Division, staff recommends approval of $55,000 in Extra Help funding to assist with grant applications. Furthermore, the Adopted budget includes existing contracts from FY22-23 that will continue in FY23-24, including an agreement with the Yolo Resource Conservation District for Climate Action and Adaptation Planning support and the Equitable Community Engagement Strategies contract funded by state and American Rescue Plan funding. The division also requested $150,000 for professional services to have a consultant assist in preparing 4 to 6 grant applications for the adaptation plan. However, staff do not recommend approval of this request at this time, as the $55,000 in Extra Help included in the Adopted Budget, and the $50,000 in Extra Help approved in the Recommended Budget were requested for the same purpose.
The Adopted Budget for Roads/Public Works includes $80,000 to replace a grader for road maintenance and another $80,000 to modify Environmental Health's truck to make a chipper body for road maintenance usage. Fund balance will offset these requests. The division's budget also includes minor adjustments to its insurance and the removal of its vehicle equipment request from the Recommended Budget, as it is no longer needed to be replaced.
Adjustments in the amount of $279,000 are being recommended in the Transportation Adopted Budget following the release of the Yolo County Transportation District budget. This division acts as a pass through of certain local transportation funds for the Transportation District.
Fleet Division includes the leave buyout of their Fleet Services Superintendent, who is expected to retire in FY23-24, along with adjustments to insurance charges. There is also an increase of $10,000 for a code reader scanner, which was approved in Recommended Budget, but the quote came in higher than expected.
Integrated Waste Management (IWM) Division includes an increase of $366,000 in building and equipment depreciation to adjust the budget closer to prior year actuals. Furthermore, some items were missed in the Recommended Budget for professional services and are being added, increasing expenditures by $255,000. Buildings and improvements were increased by $530,000 due to the design for CR104, the Butterfly Electric-IVD Electrical control system project, planned improvements to the public facing appliance collection and processing area, and the reduction of $30,000 due to corrections from Recommended Budget. Due to heavy rainfall received earlier this calendar year, the division is increasing expenditures by $930,000 for the Leachate pumping to the City of Davis. A limited-term Solid Waste Attendant new position is added to the Adopted Budget. The position was already approved by the BOS meeting on 8/29/2023. Fund balance and charges for services will fund these requests.
County Administrator's Office
The Adopted Budget for the County Administrator's Office includes an increase of $43,000 in workers' compensation insurance and general liability charges due to increases in coverage costs that were unknown during the Recommended Budget process. These increases are offset by transferring a position to the Department of Community Services, where special revenues are now funding the incumbent. Additional General Fund savings from this action are being utilized to offset increased expenditures in other General Fund departments. Staff recommend approval of these adjustments, along with a series of adjustments to the Rural Initiatives and Yolo Electric budgets that do not have a General Fund impact.
Staff also recommends approval of $800,000 in appropriation related to the Fire Preparedness Grant-LNU Fire. These grant funds from the state were received in the prior fiscal year and are being appropriated as part of the Adopted Budget process.
The department requested one ongoing augmentation related to the Yolo 211 Call Center ($9,700). An increase in the County portion of funding to support this program was requested due to increases in the level of service the vendor is now providing. Staff recommended approval of this funding request.
County Counsel
The Adopted Budget for County Counsel includes an increase of $32,000 in workers' compensation insurance and general liability charges due to increases in coverage costs that were unknown during the Recommended Budget process.
County Service Areas (CSAs)
Staff recommend adjustments to several County Service Area budgets. These include an increase in special assessment revenue of $24,000 in the Wild Wings County Service Area (CSA) Golf Course following the Board's May 9 adoption of a resolution approving adjustments to the per parcel charges at Wild Wings, among other CSAs. In addition, a loan adjustment was included in the golf course budget related to Wild Wings water and sewer. The Wild Wings Golf Course has up to three years (6/30/2026) to pay back its loan to Water and Sewer.
Additionally, the Wild Wings CSA sewer budget includes an increase of $166,000 in general liability costs. Snowball is increasing its use of fund balance and professional services to pay expenses for MBK's General Flood Management Services and CSA District Engineer Services ($63,000).
District Attorney
Staff recommends additional funding to the District Attorney's Office for increases in Workers' Compensation and Liability expenses ($12,000) in addition to one-time funding for an expert witness to provide support as it relates to expansion of the Racial Justice Act ($300,000)
In January of 2022, the Racial Justice Act was enacted in the State of California. This legislation determined that the state could not "seek or obtain" a criminal conviction or impose a sentence on the basis of race, ethnicity, or national origin. If prosecuted individuals believed they had been convicted in violation of the Act, they could submit motions for resentencing. However, the original legislation did not apply to individuals whose sentencing had occurred prior to January 1, 2021. Beginning January of 2024, the Racial Justice Act is being expanded to all individuals currently incarcerated who have no other avenue for resentencing. The department intends to utilize the recommended funds to secure expert analysis related to effectively responding to motions related to the Act. The scope of the work may include independent and proactive review of DA data to determine whether racial disparities related to the prosecution and punishment of racial minorities exist. It may also include analysis and expert testimony to respond to motions filed asserting a violation of the Racial Justice Act. The department anticipates that this could affect up to 350 cases.
During the Recommended Budget process, funding for several promotions ($149,000) was requested by the District Attorney's Office and was deferred to the Adopted Budget. The department also requested the conversion of a Limited Term Crime & Intelligence Analyst to a Regular full-time employee. The incumbent was formerly funded by a grant which concludes on September 30. Additionally, the department requested funding for Extra Help, leave buyout, and two replacement vehicles. Due to the limited availability of funding, these requests are not recommended for approval.
Financial Services
The Department of Financial Services (DFS) Adopted Budget includes a $50,000 augmentation for a necessary upgrade to the Sherpa budgeting system to update the global ledger following the County's transition to Infor Cloudsuite. The department has also requested $40,000 to assist the Agriculture and Assessor/Clerk-Recorder/Elections departments in completing a fee study. Financial Services will oversee releasing an RFP and choosing a consultant to complete this process, which should allow Agriculture and ACE to adjust their public-facing fees during the Spring master fee revision. Staff recommends approval of both requests.
The Adopted Budget for Financial Services also includes minor adjustments related to Workers' Compensation and Public Liability charges, along with an increase in revenue of $10,000 for the Chief Budget Official's continued time supporting the Probation Department due to ongoing difficulties recruiting a Fiscal Officer.
Due to the limited availability of funding, the department's requests for leave buyout ($15,000) of its Internal Audit Manager and one-time funding of $60,000 to double fill the Internal Audit Manager position prior to the incumbent's retirement, along with requests for funding for several promotions and conversion of a limited-term Accountant II to regular, are not recommended.
General Services
The General Services Adopted Budget in the Facilities Division includes funding for HVAC replacement units at 100 W. Court St. ($50,000), Fire Panel and System Replacement at 500B Jefferson ($150,000), replacement of two vehicles, and purchase of isolation valves. Staff is recommending funding of the HVAC Replacement units and the isolation valves utilizing available Accumulated Capital Outlay (ACO) funds, while the replacement vehicles and Fire Panel and System replacement are recommended to be funded by the General Fund.
Additional requests in the Facilities Division include items and project funding that were originally requested during the Recommended Budget process. With the current economic outlook and funding being limited, many of these items are not being recommended for funding and appear in the table below:
| Augmentation Requests Not Recommended | ||
| Description | Type | Amount |
| Facilities Extra Help | Extra Help | $ 25,000 |
| Painting of Exterior Buildings | Project | $ 100,000 |
| AG Parking Lot | Project | $ 200,000 |
| Knights Landing Library Sidewalk | Project | $ 250,000 |
| Admin Building Refresh | Project | $ 500,000 |
| County Fleet EV Charging Stations | Project | $ 500,000 |
| Sheriff Parking Lot | Project | $ 1,200,000 |
| Key Card Reader Replacement | Project | $ 1,600,000 |
| Administrative Analyst | Position | $ 123,997 |
| Building Attendant | Position | $ 66,461 |
| Total: | $ 4,565,458 | |
The Procurement Division is requesting the conversion of the Lead Buyer position to a yet-to-be-created position with a salary commensurate to a Senior Administrative Analyst and an additional cost of $7,078 per year. Currently, staff are not recommending approval of this request as the minor increase in cost can be absorbed by the Division.
The Graphics Division requested funding to purchase new equipment for the division. The equipment requested includes a new envelope machine, a printing engine, and a mail sorter, which total $229,303. Currently, staff are not recommending approval of this request.
The Parks Division is anticipating increased revenues of $397,000. These increased revenues are attributed to an additional $317,600 in Prop 68 grant funding, $65,000 in prior year Cannabis Funds, and an additional $14,400 in ARP funds intended to provide funding for local park rehabilitation and improvements. Additionally, staff is recommending approval of the Division's request for a Supervising Parks and Facilities Maintenance Worker, as supervision is essential for park upkeep, taking on new projects, and adding additional parks throughout the county. Other requests in the Parks division include requests for a concrete pad at the Grasslands Regional Park ($200,000), funds for the purchase of a backhoe/bucket and dump trailer ($47,100), and funding for a new Parks and Facilities Worker ($73,825). These items are not being recommended for funding.
Included in the Airport's Adopted budget are additional revenues of approximately $721,000 due to additional State and Federal funds being budgeted for the Airport Run-up Aprons project.
Additionally, the Airport included requests for an Airport Taxiway and Run-up Striping ($8,500) and a part-time Airport Manager ($80,749). These items are currently not being recommended for funding. The Airport Manager is currently an Extra Help employee. While the division does not currently have an extra help budget, the department believes extra help costs related to the Airport Manager can be absorbed due to savings in the department's salary allocations. General Services and the Department of Financial Services will monitor the expenses and request adjustments as needed.
Human Resources
The Human Resources Adopted Budget includes an increase of $25,000 in the Human Resources and Risk Management Divisions due to increases in the department's Workers' Compensation and General Liability Insurance costs. Additionally, an augmentation request of $80,000 to fund internal investigations as they arise throughout the year is recommended for approval. Lastly, the Adopted Budget includes an additional $10,000 to hire a consultant to aid in the revamping of employee performance evaluations as well as covering expenses for the mentoring program and YES team branding.
The department also requested $50,000 to fund the County's leadership academy, mentoring program, wellness initiative, as well as cover costs associated with the Qualtrics system, which is used for Employee Exit surveys. Due to limited funding, these requests are not recommended for funding at this time.
Health & Human Services Agency
The 2023-24 Adopted Budget for the Health & Human Services Agency has a significant increase of $2 million in General Fund support for the updated Jail Medical Services contract, which was in the procurement process at the Recommended Budget. A sole provider offers these services and requires drastic price increases to continue providing the mandated service.
Additionally, the 2023-24 Adopted Budget for HHSA includes 7 new positions funded by state and federal sources. These positions include 6 new Service Center Public Assistance Specialists needed due to increasing caseloads in CalWORKS and CalFresh. There is no General Fund impact in the 2023-24 Adopted Budget. Nevertheless, in future fiscal years, the General Fund will absorb about 5% of these positions or an estimated $13,000 using current personnel estimates.
Other positions recommended for funding with non-General Fund sources are highlighted in the position summary table above and include one Emergency Medical Service Program Coordinator funded for an additional year, conversion of one Clinician I from Limited Term to Permanent, and one Health & Human Services Program Manager I funded with the new BHBH Homeless Grant. Additionally, one Emergency Preparation Specialist has been removed because state funding is no longer available for the position.
The department has requested one additional Conservatorship Officer in the Public Guardian branch to assist with the growing caseload. This is a 100% General Funded unit and is not recommended for approval due to available funding at this time.
The 2023-24 Adopted Budget for HHSA also includes adjustments in County Overhead costs, Workers' Compensation, and Public Liability Insurance from the Recommended Budget. The effect of those adjustments totals $1.8 million, with the most significant increases seen in HHSA Administration ($1.1 million) and Mental Health ($420K). These expenditures will be funded through a mixture of base savings in other departments and by leveraging additional state and federal dollars, including increased Federal Financial Participation through the newly mandated California Advancing and Innovating Medi-Cal (CalAIM) process. Additionally, increased revenues are expected through the CalWorks Housing program and CalFresh allocation, which will offset these charges. Due to uncertainty surrounding the newly introduced CalAIM process and additional leveraging of intergovernmental revenues, it is expected that HHSA will provide an update during the mid-year budget process to confirm if revenues are being received as expected and adjust accordingly.
Also included in the Adopted Budget is $550,000 to remodel the Gonzales Building Lobby and the West Sacramento 500A Office. Renovations are necessary due to aging infrastructure, and ADA accessibility will be added to the staff entrance at the West Sacramento location. Approximately 7%, or $41,000, is funded with General Fund. This project is a part of the department-wide Project Refresh initiative designed to update HHSA facilities that have become outdated.
Innovation & Technology Services (ITS)
ITS is projecting revenue increases of $15,430 due to additional funds for the Homeland Security grant. This grant is intended to create a mobile application for field collection on individual addresses. This will allow public safety agencies such as police and fire departments to quickly identify where they are needed through Geographic Information System (GIS) instead of searching an entire apartment complex or mobile home for the apartment or unit number. These funds are offset by $13,800 in extra help dollars along with incidental Service and Supply expenses intended to provide support for the intern assigned to the grant. Additional expenditure increases within the department include approximately $49,000 in revised workers' compensation and general liability charges that are to be recouped in the departmental charges to departments.
Innovation and Technology Services also requested $80,000 for a Team Dynamix subscription and $200,000 for a new website platform. Due to limited general fund dollars, staff are currently not recommending funding for these items. Additionally, a request of $12,971 was included for a departmental promotion. However, staff is currently not recommending funding for this item as departments have been asked historically to absorb promotions elsewhere in their budget.
Library
The Library's FY23-24 Adopted Budget includes an adjustment to its insurance charges ($52,000) and County overhead charges ($453,000), funded by available fund balance. In addition, the division is un-funding and eliminating their grant-funded limited term Library Associate position because the grant came in far lower than anticipated. They will be using the grant funds for an extra help position instead.
Furthermore, two outbuildings at the Gibson House Museum were hit by cars in two separate incidents in FY2023. The Adopted Budget includes the use of fund balance ($70,000) to cover the costs of repairs to the building and items affected.
Probation
The Probation Adopted Budget includes an increase in various expenditure accounts in the Administration unit. Some notable increases include $13,000 for the Docusign E-warrant system and approximately $6,800 in transportation and travel due to a previously unbudgeted car allowance. Additionally, the division saw an increase in workers' compensation insurance charges of $11,824 due to a recalculation of departmental charges. These expenses are offset by a $13,000 reimbursement for e-warrants and an increase in expense transfer reimbursement of approximately $20,000.
Adult Probation Services is anticipating a reduction in the State Post Release Community Service revenues of $45,000 as well as increases in expenditures. The department is able to absorb these increases by reallocating Proposition 172 revenues from other units. Notable increases in expenditures include a $27,000 increase related to maintenance and building improvements due to prior year actuals for General Services related costs being higher than anticipated. The department also requested $53,000 for Carpet Replacement at the West Sacramento Probation Office and $85,000 for a new vehicle and outfitting of the vehicle. Currently, staff is only recommending funding for the vehicle and vehicle outfitting.
The Juvenile Detention unit is projecting a revenue decrease in their unit; however, this is simply a reallocation of Proposition 172 funds as expenditures decreased in the unit. Expenditures decreased due to the recalculation of insurance charges, which resulted in savings of approximately $167,000. Additional expense decreases include a net reduction in Professional and Specialty Services of $31,000 due to a reduction in the Yolo County Office of Education contract and adding $35,200 for Motivating Individual Leadership for Public Advancement (MILPA). This unit also saw an increase in Building and Improvement fees of $30,000 due to General Service Fee increases.
Juvenile Probation Services are anticipating a net increase in revenues of $21,452. This is due to an increase in anticipated Juvenile Reentry Grant revenues. Additional changes in expenses include an increase for Workers' Compensation Insurance of $15,000, an increase in General Services Fees for building improvements of $9,000, and a reduction in the division's salary allocation of approximately $4,000.
The Youth Offender Block Grant is projecting a net revenue decrease of $115,306. Though realignment revenues increased by $47,490, additional use of fund balance was required to balance the unit due to increased expenses such as $85,000 for a new vehicle that will be paid for in its entirety with Youth Offender Block Grant funding and an additional $16,000 for the Ohio Youth Assessment System Detention tool (OYAS).
The Juvenile Justice Crime Prevention Act is anticipating additional realignment revenues of $73,370. Though an increase is expected in realignment revenues, expenditures increased as well, requiring an increase in the use of fund balance of $236,000, resulting in a net increase of $309,573 in revenues. These increases are offset by an additional $152,000 in expenses related to the Yolo Conflict Resolution Center (YCRC) contract. The department previously received grant funding to provide YCRC services to justice-involved youth and chose to continue those services at their own expense. Additional notable increases include $100,000 for the Juvenile Detention Facility and an increase to the division's salary allocations of $44,000.
Other items in the Adopted Budget for Probation include reallocations and adjustments of overhead expenditures, salary and benefits, and services and supplies within the various divisions and programs to align staffing with the department's current needs. Instead of requesting additional General Fund for the reallocated positions, Probation was able to absorb these movements due to the reallocation of Proposition 172 revenue.
Public Defender
The Public Defender's Adopted Budget includes $55,000 in Extra Help for the department's paid intern program. The Paid Intern program is essential to attracting and retaining qualified attorney staffing while deepening diversity in the Public Defender's Office. Staff are recommending approval of this request.
The Public Defender's Office also requested 4 new Deputy Public Defender positions, a new Paralegal position, and a new Associate Administrative Services Analyst totaling approximately $948,000. Additionally, a replacement vehicle was requested in the investigations/mitigation units as the current vehicle is approaching 100,000 miles. Finally, the Public Defender requested $11,600 for promotions. Due to the limited funding available during the Adopted Budget, staff are not recommending these items for approval.
Sheriff
Staff recommend approving several augmentation requests included in the Sheriff's Adopted Budget. These include the purchase of a Crisis Negotiation Team van (along with necessary outfitting), the outfitting of a vehicle within the Marine Patrol Division, and Extra Help funding for the Public Administrator's Division.
The Crisis Negotiation Team Van ($108,000) will be utilized by a team of Yolo County Sheriff Deputies who possess specialized skills in dealing with individuals in crisis. Deputies have equipment and experience that allows them to assist with barricaded subjects, hostage negotiations, and those individuals threatening self-harm. This team works closely with members of the SWAT Team when appropriate to resolve threatening situations quickly and with the least amount of conflict. This van will provide dedicated transportation and storage to the team.
The Marine Patrol Division received one-time revenues from the Department of Boating and Waterways in the amount of $143,000. This revenue is being used to offset the cost of outfitting a previously purchased vehicle and to reduce the net county cost of the program. Additional savings generated by this revenue are being used to offset other expenses within the department.
The Public Administrators Division has seen an increase in caseload over the past two fiscal years. Given the small size of the division, the department has requested Extra Help funding to provide temporary support to the division while it ascertains if the increase in caseload is likely to become the new baseline.
Staff recommend the one-time purchase of a Dental X-ray scanner ($19,800) for the Coroner's Division. Purchase of the equipment will decrease cadaver transportation expenses when this service is required, as it is currently being provided by neighboring agencies. Similarly, staff also recommend $106,000 in one-time funding for the division to provide DNA identification of John and Jane Doe cases. The department estimates the approved funding would provide resolution to the families of 13 currently unidentified bodies.
Capay Valley Patrol has budgeted to purchase portable radios and ballistic shields to support the unit. The Yocha Dehe Wintun Nation will reimburse these expenses as part of their county's agreement to provide dedicated patrol services within the valley. Staff recommend approval of these requests.
The Adopted Budget for Court Security includes increases in anticipated state revenue, along with reductions in both Workers' Compensation and Public Liability costs. These savings are being utilized to offset expenses in other programs within the department.
The Adopted Budget for Animal Services includes adjustments related to the recent approval of contracts with other local jurisdictions, which assist in supporting the program. Following jurisdictional contract negotiations, these adjustments include funding the addition of a $120,000 Animal Services truck and outfitting and a required increase in the County's contribution to the program.
The Sheriff's Small and Rural special funds will be funding a number of requests, including rebudgeting of the final phase of the Records Management System/Jail Management System (RMS/JMS) software implementation ($150,000) and to fund a satellite office in Esparto ($62,000). This satellite office, located at the Esparto Health and Community Center office, is intended to support deputies patrolling the Capay Valley with a location to complete reports, communicate with Command staff, and replenish supplies without returning to the Sheriff's Woodland campus.
Use of COPS Detention fund balance ($60,000) is also recommended to offset costs related to a renovation of the Records area in the Detention unit. Staff also approve using one-time funding to assist in funding a cell-to-shower conversion at the Monroe Detention Center ($20,000).
The Sheriff's Office also requested a number of new positions as part of the Adopted Budget. These include:
| Position | FTE | Annual Cost | New/Refund |
| Correctional Officer | 4.0 | 503,544 | New Positions |
| Correctional Sergeant | 1.0 | 170,210 | New Position |
| Homeless Outreach Deputy | 1.0 | 164,668 | New Position |
| Corrections Records Specialist | 1.0 | 82,671 | New Position |
| Total | 7.0 | $921,093 |
Given the limited nature of available on-going funding, these requests are not recommended for approval at this time.
The department also requested $600,000 in additional overtime funding for the Detention division, along with extra help funding in the Patrol Division. The department also requested funding for several equipment purchases of radios and ballistic shields. After discussion with the department and prioritization of their funding requests, these requests are not recommended for funding.
Contingencies
The County policy on Fund Balance and Reserves identifies appropriations for contingencies as the first line of defense against uncertainty in the annual budget. It provides that the County Administrator will recommend a specific level of appropriation for contingency, usually between 1% - 3% of total budgeted expenditures. The proposed Adopted Budget includes an additional $2,342,535 in appropriation for various contingencies, as outlined below. With the exception of the Safety and Security Contingency as described below, the use of contingency funds will require subsequent approval by a 4/5 vote of the Board of Supervisors.
General Fund Contingency – It is recommended that an additional $1,170,714 be added to the General Fund Contingency to cover unexpected expenditures. The total amount of $2,477,956, or 1.6%, will be used to cover unforeseen expenditures for FY23-24.
HHSA Contingency – The amount of $1,027,381, or 1%, was approved in the FY23-24 Recommended Budget. No further contributions are recommended at this time.
Public Safety Contingency – It is recommended that an additional $500,000 be added to the Public Safety Contingency. This contribution will bring the Public Safety Contingency to $1,210,000, or 1.4% of public safety expenditures for FY23-24.
Roads Contingency – It is recommended that $200,000 be added for the FY23-24 Roads Contingency. The Roads contingency allows for pre-planning activities within the Department of Community Services.
Fire Sustainability Contingency – It is recommended that $471,821 be budgeted as a Fire Sustainability Contingency. During the 2022-23 Fiscal Year, $550,000 was budgeted for Fire Sustainability. The recommended amount for FY 23-24 is the remaining balance of that contingency.
Safety and Security – No additional contribution to the Safety and Security Contingency is recommended. A contingency of $100,000 was budgeted during the Recommended Budget process, which brought the Safety and Security Contingency to a total of $100,000 for FY23-24.
Child Support - An amount of $30,000 was approved in the FY23-24 Recommended Budget. The funds provide a small amount of general funds that could be utilized if needed to maximize Child Support's State and Federal funding.
Reserves (Attachment J)
General Reserve – The Board Policy on Fund Balance and Reserves establishes a General Reserve target of 10% of average General Fund expenditures. During the FY23-24 Recommended budget process, the County was able to provide funding to maintain the Reserve at 8% by utilizing available funding from the Chula Vista fund. Due to limited additional General Fund resources, for the 2023-24 Adopted Budget, staff recommends a contribution of $1,408,874 from the Chula Vista fund to bring the reserve to 8.5%.
CIP Reserves – No contribution was made during the Recommended Budget process. During the Recommended Budget hearing, the Board approved transferring $1.9 million of this reserve to the South Davis Library fund. The remaining balance in the CIP Reserve is $1,442,115. No contribution is recommended at this time.
Audit Disallowance Reserve – Each year, the state and federal government audit a variety of programs and may disallow payments for a variety of reasons. The Audit Disallowance Reserve protects the County against the risk of disallowances that result in a claw back of state or federal funding. The State Controller's Office recently initiated an audit of the District Attorney's Child Abduction program, for which the County receives state reimbursement as a mandated program. Based on recent SCO audits of this program in other counties, there is a high risk of negative audit findings and potential return of funding to the state. Over the four-year audit period, the County has received $2.5 million in state funding for this program. Due to this heightened risk, staff recommend a contribution of $600,000 to the Audit Disallowance Reserve as part of the FY 2023-24 Adopted Budget, bringing the balance to $2,600,000.
Liability Reserve – The liability reserve protects against future litigation or claims against the County. County Counsel has indicated that a liability reserve of $600,000 should be sufficient to protect the County from litigation exposure. Because the County has met this threshold, no additional contributions are necessary for FY23-24.
The tables below summarize the total reserve and contingency amounts included in the FY23-24 Adopted Budget, inclusive of amounts that were previously approved in the Recommended Budget.
| FY23-24 Total Appropriation for Contingencies (Recommended and Adopted) |
|
| General Fund (1.6%) | $2,477,956 |
| Health & Human Services, (1%) | $1,027,381 |
| Public Safety (1.4%) | $1,210,000 |
| Fire Sustainability Contingency | $471,821 |
| Roads | $200,000 |
| Safety & Security | $100,000 |
| Child Support | $30,000 |
| FY23-24 Total Budgeted Reserve Levels (Recommended and Adopted) |
|
| General Reserve (8.5%) | $23,950,854 |
| Capital Improvement Program | $1,442,115 |
| Audit Disallowance | $2,600,000 |
| Liability Reserve | $600,000 |
| OPEB Trust* | $40,870,688 |
| Pension Trust* | $11,880,799 |
*Reflects estimated FY23-24 contributions and balances based on projected department charges and premium payments.
Community Corrections Partnership
The proposed Adopted Budget for the Community Corrections Partnership (CCP) reflects an anticipated increase in both base and growth allocations, increasing anticipated revenue in the fund by $475,000 over the Recommended Budget. The Adopted Budget also includes a one-time allocation or grant of $50,000 towards the purchase of a vehicle by Communicare Health Centers purchase of a vehicle. The vehicle will be utilized to support CCP clients participating in specialty courts who may not otherwise have access to reliable transportation. The Adopted budget for the CCP is reflected in the table below:
| Category | 2023-24 Recommended | 2023-24 Adopted | Change |
| Beginning Unassigned Fund Balance | $825,297 | $825,297 | $0 |
| Base Allocation | $11,555,732 | $11,823,894 | $268,162 |
| Growth Allocation | $93,944 | $301,460 | $207,516 |
| Total Revenues | $11,649,676 | $12,125,354 | $475,678 |
| Total Resources | $12,474,973 | $12,950,651 | $475,678 |
| District Attorney | $524,235 | $524,235 | $0 |
| Probation | $3,203,661 | $3,203,661 | $0 |
| Public Defender | $524,235 | $524,235 | $0 |
| Sheriff | $3,203,661 | $3,203,661 | $0 |
| Treatment | $2,929,758 | $2,929,758 | $0 |
| Innovation | $718,671 | $768,671 | $50,000 |
| Administration | $203,528 | $203,528 | $0 |
| Total Funding Allocation | $11,307,749 | $11,357,749 | $50,000 |
| Ending Unassigned Fund Balance | $825,297 | $825,297 | $0 |
The CCP moved to percentage-based budgeting in FY21-22 and recently approved its 2023-25 Strategic Plan. Expenditures in the FY23-24 CCP budget make investments into programs and staffing that align with the updated Strategic Plan. The CCP will return to the BOS in January to present its annual report.
Cannabis Tax Expenditure Plan
In FY22-23, the County received approximately $404,000 in Cannabis Tax revenue and had additional interest earnings and unallocated funds from prior years for a total of $550,000 available to allocate. The County appropriated $620,000 during the recommended budget on June 13, 2023, using Cannabis revenues collected for the first two quarters of FY22-23 and assumptions regarding the remainder of the year, in addition to estimates of available fund balances. After the 4th quarter collections were completed (in July 2023), staff updated figures with the actual final collected amounts for FY22-23. While tax revenues remained in line with expectations in the Recommended Budget, available fund balances came in below projections by approximately $135,000.
Pursuant to the County's cannabis tax ordinance, staff drafted the updated expenditure plan for the Adopted Budget (Attachment I). The plan continues to provide funding to each of the five funding priorities identified in the Board's cannabis tax general framework (Criminal Enforcement of Illegal Cultivation, Early Childhood Intervention and Prevention, Youth Development, Rural Investment, and Financial Sustainability). However, due to limited funding, no additional expenditures are recommended at this time. It is recommended that the Cannabis Tax Plan reserve be reduced from $110,000 to $40,000 to keep the expenditure plan balanced. The proposed expenditure plan was presented to the Cannabis Ad-Hoc Subcommittee on September 5, 2023, and the Citizen's Oversight Committee on September 18, 2023.
Rural Community Investment Program
The Rural Community Investment Program (RCIP) is a mechanism for advancing unaddressed programs, policies, and initiatives in rural unincorporated areas. In prior years, staff from the County Administrator's Office and Yolo County Housing gathered information on the interests of the rural communities to target potential County and grant funding resources. Information was gathered through conducting town meetings in some of the rural areas. Staff also reviewed the needs identified in the action plans of Capay Valley, Clarksburg, Knights Landing, and the Yolo County Agricultural Labor Study.
Investments recommended for FY23-24 were driven by prior outreach efforts and internally identified funding needs. Historically, the RCIP has been funded with General Fund revenues. Due to budgetary constraints on the General Fund, staff recommends funding the $206,825 in projects identified in the table below with Cannabis Tax revenues. This proposed use of Cannabis Tax revenues is consistent with the general Cannabis Tax expenditure framework previously adopted by the Board and falls within the specific category related to investment in rural infrastructure and support. These projects are included in the FY 23-24 Cannabis Tax Expenditure Plan. More information on RCIP may be found on the County's website.
| Rural Community Investment Proposal | Amount |
| Tuli Mem Operations & Maintenance | $100,000 |
| Dunnigan Church Restoration | $86,325 |
| Grasslands Regional Park Fencing Improvements | $13,000 |
| Guinda Portable Restroom Rental | $7,500 |
| Total: | $206,825 |
Capital and Maintenance Projects
Accumulated Capital Outlay (ACO)
The proposed Adopted Budget for Accumulated Capital Outlay (ACO) includes $50,000 in additional funding for the replacement of four HVAC units located at the Child Support/ITSD building at 100 W. Court Street, Woodland. These aged units, believed to be as old as twenty-seven years, were not replaced as part of the TRANE energy efficiency project, as the County did not own the building at the time. The ACO budget also includes funding for several previously approved projects.
Capital Improvement Program
The Adopted Budget includes continued funding for the Yolo Bypass West Levee Outfall Project. Approved by the Board in April 2022, the project was funded with ACO funds in FY 22-23. The Capital Improvement Program also includes improvements at the Knights Landing Park and final expenses related to the Infor CloudSuite project. No adjustments are being made to those budgets at this time.
Carryforward Appropriations
The FY23-24 Adopted Budget includes $8.4 million in unused appropriations from FY22-23 that will be encumbered and carried forward into FY23-24. These appropriations are for one-time purchases that have been ordered but not yet paid for, or for specific one-time projects or initiatives that were not completed by year-end. Examples include vehicle purchases that have not yet been invoiced, or contingency funds awarded for a specific project that had not yet been completed. The purpose of carryforward appropriations is to ensure sufficient budgetary authority to meet contractual obligations and to carry out Board directives. A summary of carryforward items and amounts by department is provided in Attachment B. All carryforward appropriations have been incorporated into the FY23-24 Adopted Budget and are included in the budget totals reflected in the budget resolution Attachment C, Exhibit C1.
Looking Ahead
Looking past the Adopted Budget, the County has several additional significant fiscal matters in various stages of being addressed that are important to highlight for the Board's awareness.
Labor Negotiations
Since the Recommended Budget was approved, the County completed labor negotiations with two bargaining units whose agreements expired on June 30, 2023. Negotiations continue with one other bargaining unit. These agreements may result in higher labor cost increases for these labor units than originally anticipated in the Recommended Budget. Those labor increases are expected to be absorbed in department budgets. However, should departments determine over the course of the year that labor costs cannot be absorbed in their budget, they may request contingency funds to close the gap at regular budget monitoring intervals (e.g., Mid-year, third-quarter, year-end).
In Home Supportive Services (IHSS)
The County's MOUS with IHSS providers expires September 30. It is anticipated that a successor agreement will result in additional costs to the County through an increase in the County's Maintenance of Effort (MOE). Additionally, recent changes in state law (AB120) made ongoing the 1991 Realignment withholding penalty (equal to 10% of the county's prior year IHSS MOE) for counties which are unable to reach agreement with provider unions and have concluded the factfinding process with the factfinding settlement terms favoring the providers.
Pension Funding
The FY23-24 Adopted Budget includes $59.1 million in employer pension contributions, an amount largely unchanged from the FY23-24 Recommended Budget. Employer contributions for FY23-24 were determined in the CalPERS Annual Valuation Report as of June 30, 2022. As discussed with the Board on several occasions, employer contribution rates have increased significantly over the past several years and are projected to continue rising for a few more years before stabilizing. These increases are driven by a combination of changes in CalPERS' demographic and investment assumptions, including a lower targeted rate of return, investment results, and amortization policy. The table below shows the projected pension rates over the next five years.
| Fiscal Year | Miscellaneous | Safety |
| 2023-24 | 32.60% | 46.30% |
| 2024-25 | 33.67% | 50.00% |
| 2025-26 | 32.70% | 51.20% |
| 2026-27 | 33.50% | 50.90% |
| 2027-28 | 33.80% | 51.50% |
Other Post-Employment Benefits
The FY23-24 Adopted Budget includes $12.7 million in OPEB charges to departments, an amount that is substantively unchanged from the FY23-24 Recommended Budget. The OPEB actuarially determined contribution rate of 7.7% of payroll was held constant with the rate included in the FY21-22 Budget.
In May 2011, the Board approved the creation of an irrevocable trust to accumulate assets to reduce the OPEB liability. The initial policy had a funding ramp-up over 15 years; however, the County achieved that ramp-up sooner than anticipated and, in November 2019, updated the policy to fund the trust at the actuarially determined contribution level. The OPEB trust is expected to have a balance of approximately $37.9 million at June 2023, and this is estimated to increase to $40.8 million based on contributions in FY23-24.
In addition to funding the OPEB trust, significant progress has been made in lowering the overall OPEB liability by implementing benefit caps for most employee units. As a result of these efforts, the overall OPEB liability declined by $3.5 million in the June 2020 valuation. An updated report is currently being finalized and will be presented to the Board in the coming months.
State/Federal Mandates
The County continues to monitor the State and Federal budgets for programmatic mandates that the County should prepare for. The State has added significant new requirements for counties in recent years. While recently they have included funding, it is unclear whether that trend will continue. The two significant mandates that are known and costs are estimable include a Growth Cap for Incompetent to Stand Trial (IST) and Care Court.
Despite advocacy efforts through the spring and summer, the County will still be required to pay an estimated IST Growth Cap penalty of $539,000 later this year. This amount is presently unbudgeted, though a working group composed of representatives from the District Attorney's Office, Public Defender's Office, HHSA, Probation, the Sheriff's Office, and Financial Services is working on developing funding options for future BOS consideration and approval.
In addition, the County will face implementation of Care Court in the fall of 2024 and will need to begin preparing for implementation in the upcoming budget year. Early estimates are that approximately $3 million in treatment and housing costs and $1 million in legal defense costs ($4 million total per year) may be needed to serve this population; however, funding remains unidentified. The state has thus far committed a $250,000 one-time allocation for startup costs. However, discussions continue in the state budget regarding additional funding. These mandates need to continue to be closely monitored and revisited throughout the year due to their potential to put significant additional pressure on County resources.
Conclusion
The Adopted Budget attempts to make strategic investments given limited ongoing resources and a sizable reduction in available fund balance. The budget works to strengthen the County's financial safety net by funding contingencies and providing for a half percentage point increase towards the Board's goal of a 10% General Reserve. The inability to fund most departmental augmentations, whether ongoing or one-time, underlines the present inflationary environment and the possibility of economic slowdown or recession. The budget recognizes that one-time resources have likely peaked, and fiscal prudence is of paramount concern as we look toward the future. At the same time, the County is strategically seeking substantial state and federal funds that may benefit constituents now and in the future. However, the County must still be cautious not to become overly dependent on these sources or to assume that expenditures can be sustained at a heightened level when state and federal support concludes.
Collaborations (including Board advisory groups and external partner agencies)
All county departments were provided the opportunity to submit additional budget adjustments and requests. Financial Services staff worked with department heads and fiscal officers in reviewing and analyzing the requests. Proposed funding plan was reviewed with the Board Chair and Vice Chair on September 8th, 2023. County Counsel reviewed the Adopted 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:
- $ 757,933,151
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 757,933,151
- One-time commitment:
- Yes
Source of Funds for this Expenditure
- All County Funds
- $757,933,151
Further explanation as needed:
This action appropriates funding for the FY23-24 fiscal year. The fiscal impact listed above reflects the total consolidated County budget including interfund transfers.
Attachments
- Att. A. 2023-24 Fund Balance Report
- Att. B. FY22-23 Combined Carryforward Requests
- Att. C. Budget Resolution and Exhibit 1
- Att. D. FY23-24 General Fund Recommendations
- Att. E. FY23-24 General Fund Augmentations Not Recommended
- Att. F. FY23-24 Non-General Fund Recommendations
- Att. G. FY 23-24 Detailed Position Table
- Att. H. FY23-24 Equipment List
- Att. I. FY23-24 Cannabis Tax Expenditure Plan
- Att. J. FY23-24 Reserve Balances
- Att. K. Updated Presentation
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Tom Haynes | Laura Liddicoet | 09/18/2023 08:19 AM |
| Financial Services (Originator) | David Estrada | 09/18/2023 01:31 PM |
| David Estrada | David Estrada | 09/18/2023 02:21 PM |
| Tom Haynes | Tom Haynes | 09/18/2023 09:40 PM |
| County Counsel | Hope Welton | 09/19/2023 08:22 AM |
| David Estrada | David Estrada | 09/20/2023 01:37 PM |
- Form Started By:
- Laura Liddicoet
- Started On:
- 06/19/2023 10:26 AM
- Final Approval Date:
- 09/21/2023