LAKE COUNTY – The county's chief administrative officer will present to the Board of Supervisors this Tuesday a $197 million proposed budget for the 2007-08 fiscal year.
A staff report from County Administrative Officer Kelly Cox to the board explains that preliminary budget hearings for the coming fiscal year have been held, and this proposed budget is suggested for their approval.
It's not the final budget, Cox reports. “As usual, a detailed review of the Proposed Budget and recommended Final Budget will take place during advertised public hearings in August and a written narrative for each budget unit will be provided to the board at that time,” he writes.
Meanwhile, the county will continue its current operations under the proposed budget, which – with the board's approval – will become effective July 1.
Cox, who is known for his expertise and care in constructing county budgets, has once again brought the board a balanced budget.
The total recommended appropriation, he said, is $197,888,938, which is about $16 million higher than the 2006-07 budget.
Cox's report explains that the increases are due primarily to an $11 million increase in the Road Division budget, a $3 million increase in the Social Services budget and $1.7 million more in the In-Home Supportive Services Public Authority budget.
“All three of these increases are financed by special revenue sources and do no represent an increase in the cost to the general fund,” Cox writes.
The county had to whittle down the requested appropriations from its various department heads, Cox reports. Unless the departments could draw on special funding sources, their budgets were reduced to amounts that would allow them to operate under current budget levels, Cox's report explains. Those reductions included new positions, fixed assets and inventory items.
If funding becomes available for requests such as new positions, Cox says those appropriations will be discussed during the final budget hearings.
Some interesting points in the budget:
– The county will maintain a $5 million budget reserve, with no increases or decreases expected.
– The general fund totals $51.6 million in 2007-08, versus $52.3 million the previous year. Cox explains that the fund is down less than $1 million due to the completion of one-time projects, including projects in the Parks and Recreation budget funded with State Park Bond grant money.
– The total recommended number of employees for the coming fiscal year is 964, down from 978 in the previous budget. Cox said no current filled positions are being eliminated but several vacant positions are being cut, mostly in departments not covered by the general fund. New positions will only be added through special funding sources. Seven positions are being deleted from Mental Health due to Med-Cal reimbursement delays and audit problems, and several more from Child Support Services due to decreases in state and federal funding.
– The budget includes a 2.5-percent cost of living increase for county employees, the result of negotiations with employee associations.
– The proposed budget includes several one-time projects: the Middletown Library, the new Animal Care & Control facility, the Mt. Hannah water tank replacement project, economic development and county infrastructure projects, and funds to support development of a new domestic violence shelter.
– The $100,000 allocation set aside to help relocate the Outrageous Waters water park equipment to county land is not being recommended for carryover. Cox writes that the project no longer appears feasible, and he suggests applying the money to the cost of applying for water rights relating to the Middle Creek Flood Damage Reduction and Ecosystem Restoration project. The board could still decide to reconsider the water park project during the final budget, Cox says.
– The county's Resort Revitalization and the enhanced Code Enforcement Program are running out of one-time monies which, in the case of Code Enforcement, were used to add several staff positions. If the county doesn't receive “a new infusion of one-time funding,” Cox explains that the programs will need to either be significantly downscaled or entirely phased out by the start of fiscal year 2008-09.
Cox's report also notes that there are several unknowns, both good and bad, that could “significantly impact” the coming budget. Among those are the outcome of state legislative proposals, some of which could affect property tax values; the state budget, which includes a proposed Williamson Act cut that could result in a $150,000 revenue loss in 2007-08.
Overall, Cox reports that the county remains in “solid financial condition,” and does not have a general fund debt.
The budget process, Cox explains, is far from over for 2007-09. “Presentation of the Proposed Budget marks the mid-point in the annual budget process and, as always, challenges and opportunities lie ahead during the development of the Final Budget.”
The budget consideration is an untimed item on the board's Tuesday agenda. The meeting starts at 9 a.m. in the board chambers in the Lake County Courthouse, 255 N. Forbes St., Lakeport. Channel 8 broadcasts the meetings live.
E-mail Elizabeth Larson at
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