LAKEPORT – Following a day of hearings, the Lake County Board of Supervisors approved the county's $194.3 million budget for the 2009-10 fiscal year at a special meeting Aug. 20.
This year's budget is down slightly from the $201 million budgeted for last year. County Administrative Officer Kelly Cox said that's due to the completion of a large number of projects in the year past.
About 50 department heads and county staffers gathered in the board chambers at the Lake County Courthouse in Lakeport for Cox's initial remarks on the budget, which he gave at 8:30 a.m. that day.
In his budget overview, Cox noted that the county isn't yet seeing a recovery in certain key local revenues due to the county's lagging economy.
The county is also experiencing near record high unemployment levels, he said. Last Friday, the state Employment Development Department reported that Lake County's July unemployment was 15.4 percent.
The county's revenue from sales tax, transient occupancy tax and property tax transfers have declined, Cox said.
This past year, the county's property tax rolls broke even, he said; while that's better than some counties have fared, that's still down from the 3.6-percent increase the county saw last year, and the 12-percent increase two years previously.
Cox said the county has, and will continue, to take aggressive actions to stimulate the local economy, including buying from local vendors. “The message the board has been sending to us is getting through loud and clear,” said Cox.
He said the county's largest general fund department, the Lake County Sheriff's Office, has taken “extraordinary and exemplary” measures to buy from local vendors.
Cox showed a pie chart of the county's major revenue sources for the 2009-10 fiscal year.
The largest source, 29 percent, is the state, followed by 17 percent in reserves and carryovers that the county has amassed. The federal government and taxes each provides 16 percent, while charges for services provides 9 percent; utility services 5 percent; interest, rent and concessions, 2 percent; other governments, 2 percent; miscellaneous, 2 percent; fines, forfeitures and penalties, 1 percent; licenses, permits and franchise, 1 percent; and other, 1 percent.
In a pie chart showing appropriations, Cox explained that 22 percent of the county's annual budget goes toward social services, followed by 20 percent for the criminal justice – specifically, the sheriff's office and the District Attorney's Office.
Officials said all of the sheriff's office funds totaled $26 million, while the District Attorney's Office budget totaled $3.8 million.
Other appropriations are public works, roads, airport and flood, 15 percent; health services, 9 percent; water, sewer and lighting, 9 percent; community and economic development, 7 percent; general government, 5 percent; education and recreation, 4 percent; other services, 4 percent; solid waste, 2 percent; insurance, 2 percent; general fund contingency, 1 percent.
Cox said nearly $16 million in property tax goes into the county's general fund, which this year totals $54.1 million. “The sheriff and jail budget uses almost all of that,” said Cox, noting that, if the District Attorney's Office is added to that, they use all of the property taxes.
All other county appropriations come from other county sources.
Revenue sources for the county have changed over the last decade. From 2001-02 to the new 2009-10 budget year, state funding resources have declined from 37 percent to 29 percent, while federal sources have risen from 10 percent to 16 percent. Taxes have edged up from 11 percent to 12 percent, and the county's fund balance also has risen from 15 percent to 20 percent. Charges for services have dropped from 12 percent to 9 percent.
In comparison, social services appropriations in 2001-02 were at 26 percent, versus 22 percent for the 2009-10 fiscal year. Criminal justice edged up slightly, from 19 percent to 20 percent, as did public works, from 14 percent to 15 percent. Community development rose from 4 percent to 7 percent.
Overall, the county budget grew from $124 million in 2001-02 to $194 million this year, Cox said.
Cox said the county expects to spend $46.1 million in salaries this year, with 930 positions budgeted – down from 968 last year.
The county's general fund remains debt free, but, as Cox noted, “We don't know what's going to happen to us with the state.”
Besides that, there is the county's aging infrastructure and threats to Clear Lake because of invasive species, he said.
One of the biggest impacts to the county is the state's suspension of Proposition 1A – meant to protect county revenue sources – which means a loss of $2 million in property tax revenues. “We've absorbed that within this recommended budget,” said Cox.
The county also will lose $68,000 in William Act subventions, won't get reimbursement from the May special election – not a surprise since the county also hasn't ever been reimbursed for the gubernatorial recall, Cox said.
He acknowledged the county's employees and department heads for their work in reaching the final draft budget.
Cox also gave particular appreciation to the Lake County Officers Association and Lake County Deputy Sheriff's Association for their understanding of the county's funding limitations, and for giving up any cost of living increases in the new fiscal year.
Supervisor Jeff Smith thanked Cox and his staff and the department heads for their work. To be able to absorb $3.5 million in budget cuts this year “is unbelievable,” said Smtih.
Board Chair Denise Rushing said Cox had told the board a few weeks ago that they would be OK, but she said she didn't know how it would be possible until she saw the budget.
Supervisor Anthony Farrington said he attended a recent Regional Council of Rural Counties meeting, at which members were informed that the Legislative Analyst's Office is anticipating double-digit deficits for the state by November, making rebudgeting a possibility.
As a result, Farrington said he anticipates the county may need to use its reserves to get through the year.
Over seven and a half hours on Aug. 20, the board heard from all of its department heads, who outlined their budget challenges.
This year, the process was substantially abbreviated, with department heads going over highlights and not reading through the entire budget narratives included in the budget document, which numbers approximately 314 pages.
At the end of the day, Smith offered the resolution, which was approved unanimously.
“Excellent job as always, but this was a particularly tough year,” Rushing told county staff.
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