LAKEPORT, Calif. – In preparation for the final budget hearings set to happen early next month, the Board of Supervisors held a Tuesday morning budget workshop to see how the county's finances are looking for the 2014-15 fiscal year.
County Administrative Officer Matt Perry said the board had asked for the workshop prior to the hearings, scheduled for Sept. 3.
In his presentation, Perry began by covering budget priorities: having a structurally balanced budget, preserving general reserves, avoiding reduction in service levels, and avoiding layoffs, furloughs and benefit reductions. Perry said it can be a struggle to balance those priorities.
The county's budgeting process is a lengthy one that Perry said begins in February and ends with the budget hearings and adoption of the budget in the fall.
The final budget includes property tax revenues at just over $14 million and sales tax hovering at around the $2 million mark, having almost returned to the pre-recession levels of $2.1 million.
Perry said the good news is that he and his staff believe they can present to the board a structurally balanced budget without significant staffing reductions.
Total revenues for the coming year are estimated at $157.6 million, of which $47.4 million – or 30.1 percent – is in the general fund, with the remaining $110.2 million, or 69.9 percent, is in special funds.
Total appropriations are estimated at $179.7 million. Of that total, 30.7 percent, or $55.2 million, in in the general fund and $124.5 million, or 69.3 percent, is from special funds.
The majority of the general fund – 63 percent – goes to salaries and benefits, with services and supplies accounting for 24 percent.
The largest sources of revenue for the general fund include taxes, 55 percent; state, 22 percent; other government, 5 percent; charges, 3 percent; and fines and penalties, and licenses and permits tie with 2 percent.
General fund services include administrative and legal, fiscal and accounting, law enforcement and the jail, district attorney and public defender, animal control, probation and juvenile detention, elections, information technology, planning and code enforcement, parks and facilities, agriculture and wildlife services, veterans' services, emergency services and human resources.
Special fund services include social services, housing authority, public guardian, behavioral health, child support, public and environmental health, water and sewer systems, lighting districts, library, roads, water and resource management, and air quality management.
Perry went over the costs of some of the departments to the county, using several examples.
The District Attorney's Office costs just over $3 million to fund, has income of $88,000 and a net county cost of $2,0935,181, Perry reported.
The Auditor-Controller's Office costs $975,735, and has income of $127,430 and reimbursements of $41,775, as well as other sources of funding totaling $428,000, with a net county cost of $383,525.
The Assessor-Recorder's Office costs $962,743 to fund, has income of $15,200 and reimbursements of $61,106, and other funding sources of $205,000, for a total net county cost of $742,743.
Planning costs $1,120,515 to run, has income of $523,050 and reimbursement of $60,000, with a net county cost of $597,465.
Public Works administration costs $713,480 and has the same amount of income, meaning it has no net county cost, Perry said.
Perry told the board that all of the county's departments are now so lean that there is no longer any place to cut.
He said the county has reduced salaries and benefits by a total of 4.5 percent since fiscal year 2008-09. At the same time, workers compensation and retirement costs have gone up. Perry said the hiring freeze hasn't been lifted and he can tell people are under more stress than normal.
The board also heard from county department heads who brought forward concerns about the county failing to raise fees for several years, so that fees needed to fund services never catch up.
Supervisor Jim Comstock said he wasn't comfortable with automatic yearly increases and wanted to review the matter annually. Staff agreed.
Community Development Director Rick Coel suggested increases for services can be tied to the Consumer Price Index.
Perry said staff has identified departments where it's becoming a struggle to maintain service levels – Animal Care and Control, the Lake County Library and the museums.
He asked board members if they were interested in using one-time funds to help maintain staffing levels and hours for the public at Animal Care and Control until inmate worker issues can be sorted out.
“It may be premature but I would like to try it,” said Comstock.
Supervisor Anthony Farrington said the county should study the Animal Care and Control situation to see how it affects the public. He wanted to discuss the libraries and revisit how part-time positions are recruited.
As for Lake County's overall economic health, “We have some good indicators that things are improving,” Perry said.
Those indicators include the fact that the county's home prices have increased by 21.4 percent over last year, the seventh-highest increase in California.
The recovery has been tempered by high negative equity, high foreclosures and the third-longest length of listing in the state, according to Perry's report.
Perry's report showed that taxable sales and permit values are up, and job growth in the year's first quarter was 5.3 percent, the fifth highest in California. Jobs are back at pre-recession levels and the unemployment rate is dropping quickly, although it's still high, placing Lake County at No. 41 in the state.
Supervisor Jeff Smith noted during the discussion that the county has worked hard not to lay off people, and that supervisors agonize over it.
“It's in our mind all the time,” he said.
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