The final budget comes in at approximately $189,759,308, up slightly from the $185,051,534 preliminary budget the board accepted June 15. The newly approved general fund is $52.9 million, a $2.1 million difference from the preliminary document.
Those numerical changes are due to a variety of factors, county staff explained, including better-than-expected property tax revenues, the restoration of federal geothermal royalties and what County Administrative Officer Kelly Cox called a “hefty” fund balance carryover he credited to thrifty department heads.
Cox was lauded by the board and department heads for what they considered a feat – some even used the word “miracle” – of fiscal prowess: keeping a structurally balanced budget with increased reserves and contingency funds, and no general fund debt in the midst of the economic downturn.
But Cox would be equally complimentary to county staff, who he credited for working cohesively in the face of challenging financial times resulting from the national recession.
“We're very fortunate to have the group of department heads that we do,” he told the board.
A previous proposal to use one-time funding to cover budget gaps – a practice Cox has steered the county away from during his tenure – was removed from the final budget because of the better financial outlook.
The inch-thick document also managed to avoid layoffs; however, some positions designated “at risk”
will be frozen once vacated in order to make future reductions, Cox said.
A major factor out of the county's hands is the state budget, and Cox warned that it remains the most significant budget concern for the county.
He said there seems to be no urgency among state leaders, who started meeting this week. “Unless they resolve the budget today I think it's going to be a while,” he said, noting Gov. Arnold Schwarzenegger is scheduled to leave for Asia Thursday.
As such, Cox said it was extremely important for the county to keep preparing for the economic uncertainties ahead.
In crafting the budget, Cox set out funds for special projects, including a $1 million special appropriation to help address Clear Lake's algae, weed and water quality issues, “which is obviously a very high priority to the Board of Supervisors and the residents of Lake County,” he said.
He also included in the budget a special $750,000 appropriation of one-time general fund money for supplemental road maintenance – in particular, chip sealing and similar projects – in an effort to improve road conditions in the county's unincorporated areas.
At the same time, Cox managed to increase the general fund contingencies by $900,000 since the June preliminary budget, raising the amount to $2.4 million.
He said it remains a conservative budget. “Some department heads might refer to it as being tight or stingy,” he added.
Supervisor Jim Comstock noted that the budget change from June was “amazing.”
“We're keeping people employed, we're meeting our obligations,” he said.
Cox said they may have to bring forward adjustments at a future time, but emphasized that maintaining a reserve for economic uncertainties is “an important thing to do.”
Also noted during the meeting were the extra obligations that department heads have had to take on with dwindling staff sizes. That's been seen throughout the departments; Supervisor Denise Rushing pointed out that even the County Administrative Office was down three positions.
Things had looked so gloomy earlier in the year “that it's incredible that we would come up with a budget like this,” said Supervisor Rob Brown.
Board Chair Anthony Farrington added, “Lake County should be proud of this budget.”
Then it was time to roll up their sleeves and go through the close to 180 budget funds that comprise the various departments.
Based on a tabulation he offered to Lake County News, Cox said the county's largest budget departments are social services, $45.5 million – of which less than $1 million comes from the county, with the state providing the rest of the funds; the sheriff's office, $24.5 million; public works, $23 million; mental health, $11.4 million; public health, $4.9 million; and the district attorney, $3.6 million.
Different departments, different challenges
The ripple effects of the recession and funding cuts are visible throughout most of the county departments.
Deputy Administrative Officer Matt Perry said the District Attorney's Office has been affected by the elimination of vacant positions, including a deputy district attorney and victim-witness advocate. Some positions in the department were saved, however.
District Attorney Jon Hopkins said his office had a grant focusing on prosecuting serious drunk driving cases, but that grant expires Sept. 30. That will mean that the cases will have to be spread around throughout the department.
One department facing loss of revenue tied to economic factors is the county library system.
Deputy Administrative Officer Jeff Rein, in introducing the slightly more than $1 million budget for the county libraries, explained that the libraries are financed primarily through property tax revenue.
Another revenue source from the state, transaction based revenues, are on the decline, and the final library budget reflected a $38,000 decline in those funds, he said.
Rein said County Librarian Susan Clayton has been “living very frugally,” which resulted in a fund carryover of $43,314, which he said will increase the library's building and equipment designation.
Clayton said that her staff teases her about having dollar signs in her eyes, and explained that, because of budget appropriations for books dropping so much – it's about half of what it was a few years ago, staff explained during the meeting – they're trying to pursue all the book donations they can.
In the county's new Water Resources Department – split off from Public Works – Director Scott De Leon, who started work in May, said the budget was a challenge for him since he inherited it. It included just over $587,000 in administration, and about $1.5 million for flood zones and lakebed management.
De Leon told the board he was excited about the hire of a new technician, Chris White, who will be in charge of flood zones and developing their maintenance plans.
Those areas need specific planning, and De Leon noted, “We haven't ever had a plan that I've managed to find.”
Rushing said she'd heard of a retired county employee who had such plans in his head. “There's plans in peoples' heads all over the place,” said De Leon, explaining that such plans need to be put on paper, with budgets and schedules built around them.
In integrated waste management, which is under the Public Services Department, Director Kim Clymire told the board that revenues are down by $500,000.
They are considering putting in a bid to accept solid waste from Mendocino County, an arrangement that could bring in an estimated $700,000 annually, he said.
Cox said the department is looking at alternatives to rate increases, and pointed out that they haven't had rate increases to cover operational costs for the landfill for a long time.
Clymire said the department has been replacing equipment over the past five years. “We've got some of the best equipment in the county.”
Another department head meeting first-time budget challenges was Animal Care and Control Interim Director Bill Davidson, who did the budget for the first time on his own this year. Rein said Davidson was “extremely vigilant over his expenditures.”
The department's total budget for 2010-11 totaled approximately $893,275, Rein said.
Davidson said the board had asked him to analyze a spay-neuter clinic. He's currently doing so, and is being assisted by local veterinarian Dr. Susan Cannon, who also chairs and advisory board for Animal Care and Control.
For the county's mental health department, with its $11.4 million budget, the budget picture for 2010-11 is looking brighter, according to county administrative staff.
The improvements come after several tough years that have seen the department have to cut positions and borrow from the general fund because of being overpaid for services by the state.
Cox said the department is digging out of a hole and is on target to repaying its general fund loans.
The big discussion item in the Public Works Department budget was a requested allocation of more than $400,000 for a paint and striping truck that Director Brent Siemer said they need to meet increasing road paint standards. By moving to a water-based paint it also will improve his staff's productivity by 19 weeks a year.
However, Brown had his doubts, and wanted to know what the sanctions would be if the county didn't follow the requirements for the paint or for meeting the state's emission standards on equipment, which he said were unreasonable. The board directed Siemer to come back with additional information.
In the sheriff's budget, $402,000 in federal stimulus funds will be used to fund, among other things, a special victims detective. Another $290,000 is set to be allocated for marijuana suppression, funds which are supplied by a federal grant.
Sheriff Rod Mitchell received the board's approval for using rural subvention funds to purchase $85,000 worth of mobile audio video units to install in patrol cars. The units are used to record interviews at scenes, he said.
The board lauded Mitchell's efforts to purchase from local vendors and to reduce overtime significantly – by close to 50 percent. He credited his staff with monitoring and lowering overtime for both deputies and correctional officers.
A funding source of special concern to Cox are geothermal royalties and leases.
While geothermal royalties were restored to the county in legislation passed earlier this summer – the royalties have averaged about $850,000 annually, according to Cox – he said Interior Secretary Ken Salazar told a congressional committee that the Obama administration intends to try to take the funds away again.
As such, Cox said he's not anticipating receiving the funds again after this October. Total expenditures and appropriations in this year's fund total $1,250,677, down from the anticipated $1,545,720.
He said he budgeted $100,000 from those revenues to go toward the Anderson Springs water system.
Cox promised to advocate for keeping the funds coming to the county once the budget is finalized.
Shortly after 4 p.m., the board unanimously approved two resolutions, one adopting the fiscal year 2010-11 budget and the second establishing position allocations for the coming fiscal year.
E-mail Elizabeth Larson at
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