REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  6, 2017
CATEGORY:  Scheduled Hearings - General Government-6.

SUBJECT:

Fiscal Year 2017-18 Budget Hearings

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Larry Lees, County Executive Officer

STAFF REPORT APPROVED BY:  Terri Howat, County Chief Financial Officer

RECOMMENDATION

FISCAL YEAR (FY) 2017-18 BUDGET HEARINGS

A court challenge to action taken by the Board of Supervisors on any project or decision may be limited to only those issues raised during the public hearing or in written correspondence delivered to the Board of Supervisors during, or prior to, the scheduled public hearing.

The Board of Supervisors welcomes you to its Fiscal Year 2017-18 Budget Hearings being held in the Board of Supervisors Chambers on the second floor of the Shasta County Administration Center located at 1450 Court Street, Room 263, Redding, California.  Your interest is encouraged and appreciated.

COMMENCE THE FY 2017-18 BUDGET HEARINGS

1.  Receive the FY 2017-18 Recommended Budget and the County Executive Officer’s Overview of the FY 2017-18 Recommended Budget.

2.  Consider making any revisions, reductions, or additions to the Recommended Budget after providing an opportunity for comment from any official or person whose budget requests will be revised.

3.  Conduct the public hearing. Any revisions to the Recommended Budget after the start of the public hearing shall be made only if the revision is proposed in writing and filed with the Clerk of the Board prior to the close of the public hearing, or approved by a four-fifths vote of the Board of Supervisors after the close of the public hearing.

BUDGET HEARINGS REGULAR CALENDAR

4.  Consider and take action on any department head appeal or those budget units which the members of the Board of Supervisors may wish moved from the Consent Agenda.

      a.         No formal appeals received.

5.  Consider and take action on any outside agency requests.

      a.         No outside agency requests received.

6.  Consider giving direction to staff or take other appropriate action.

7.  CONSENT CALENDAR

8.  Approve those budget units which have not been formally appealed and which have no major policy considerations or outstanding issues.  Any Board member, department head, or interested person may request that a budget unit be removed and added to the Regular Calendar for further discussion under Item 4.  This includes County budget units as well as Special Districts and Other Agencies under the Board of Supervisors.

The Shasta County Board of Supervisors will recess and convene as the Shasta County Water Agency.

9.  SHASTA COUNTY WATER AGENCY CALENDAR

The Shasta County Board of Supervisors does not receive any compensation or stipend as a result of convening as the Shasta County Water Agency.

      a.         Consider making any revisions, reductions, or additions to the Shasta County Water Agency Recommended Budget after providing an opportunity for comment from any official or person whose budget requests will be revised.

      b.         Conduct the public hearing. Any revisions to the Shasta County Water Agency Recommended Budget after the start of the public hearing shall be made only if the revision is proposed in writing and filed with the Clerk of the Board prior to the close of the public hearing, or approved by a four-fifths vote of the Board after the close of the public hearing.

      c.         Consider and take action on any department head appeal.

                  (1)     No formal appeals received.

      d.         Consider and take action on any outside agency requests.

                  (1)     No outside agency requests received.

      e.         Consider giving direction to staff or take other appropriate action.

      f.          Approve the Shasta County Water Agency FY 2017-18 budget.

The Shasta County Water Agency will adjourn and convene as the Shasta County In-Home Supportive Services (IHSS) Public Authority.

10.  SHASTA COUNTY IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY

The Shasta County Board of Supervisors does not receive any compensation or stipend as a result of convening as the Shasta County IHSS Public Authority.

      a.          Consider making any revisions, reductions, or additions to the Shasta County IHSS Public Authority Recommended Budget after providing an opportunity for comment from any official or person whose budget requests will be revised.

      b.         Conduct the public hearing. Any revisions to the Shasta County IHSS Public Authority Recommended Budget after the start of the public hearing shall be made only if the revision is proposed in writing and filed with the Clerk of the Board prior to the close of the public hearing, or approved by a four-fifths vote of the Board after the close of the public hearing.

      c.         Consider and take action on any department head appeal.

                 (1)     No formal appeals received.

      d.         Consider and take action on any outside agency requests.

                  (1)        No outside agency requests received.

      e.         Consider giving direction to staff or take other appropriate action.

      f.          Approve the Shasta County IHSS Public Authority FY 2017-18 
budget.

The Shasta County IHSS Public Authority will adjourn and convene as the Shasta County Housing Authority.

11.  SHASTA COUNTY HOUSING AUTHORITY

The Shasta County Board of Supervisors does not receive any compensation or stipend as a result of convening as the Shasta County Housing Authority.

      a.         Consider making any revisions, reductions, or additions to the Shasta
County Housing Authority Recommended Budget after providing an opportunity for comment from any official or person whose budget requests will be revised.

      b.         Conduct the public hearing. Any revisions to the Shasta County
Housing Authority Recommended Budget after the start of the public hearing shall be made only if the revision is proposed in writing and filed with the Clerk of the Board prior to the close of the public hearing, or approved by a four-fifths vote of the Board after the close of the public hearing.
 

      c.         Consider and take action on any department head appeal.

                  (1)        No formal appeals received.

      d.         Consider and take action on any outside agency requests.

                   (1)        No outside agency requests received.

      e.         Consider giving direction to staff or take other appropriate action.

      f.          Approve the Shasta County Housing Authority FY 2017-18 budget.

12.  The Shasta County Housing Authority will adjourn and reconvene as the Shasta County Board of Supervisors.

13.  Continue FY 2017-18 Budget Hearings to Wednesday, June 7, 2017 at 9:00 a.m., if necessary.

14. Consider directing the County Executive Officer to prepare, for subsequent Board consideration and action, a FY 2017-18 Adopted Budget resolution.  The budget resolution will reflect changes to the FY 2017-18 Recommended Budget, as directed by the Board of Supervisors during budget hearings and subsequent technical adjustments required as additional information regarding State legislative action becomes available.

Pursuant to Government Code section 29081, the Board of Supervisors may continue to meet from day to day until budget hearings are concluded, but not to exceed a total of 14 calendar days.

BUDGET HEARINGS CONSENT CALENDAR

THE FOLLOWING BUDGET UNITS HAVE NOT BEEN FORMALLY APPEALED AND HAVE NO MAJOR POLICY CONSIDERATIONS OR OUTSTANDING ISSUES.  (Any Board Member, department head, or interested person may request that a budget unit be removed and added to the Regular Calendar for further discussion under Item 4.  This includes County budget units, as well as Special Districts and Other Agencies under the Board of Supervisors.)

Budget Unit Number–Budget Unit Name

GENERAL FUND (060)

General Government

100                  General Revenue and Transfers

101                  Board of Supervisors

102                  County Administrative Office

103                  Clerk of the Board

110                  Auditor-Controller

111                  Treasurer-Tax Collector

112                  Assessor

113                  Purchasing

120                  County Counsel

130                  Personnel

140                  Elections

165                  Economic Development

172                  Surveyor

173                  Miscellaneous General #1

174                  Tobacco Settlement Funds

175                  County Service Area Administration

199                  Central Service Costs (A-87)

Public Protection

201                  Trial Courts

203                  Conflict Public Defense

207                  County Public Defender

208                  Grand Jury

221                  County Clerk

237                  Sheriff Civil Unit

256                  Victim/Witness Assistance

280                  Agricultural Commissioner/Sealer of Weights & Measures

290                  Recorder

292                  Public Guardian

297                  Animal Control

299                  Public Administrator

Health and Public Assistance

542                  County Indigent Cases

543                  Housing Authority

570                  Veterans Services

590                  Community Action Agency

Education and Recreation

611                  Library

620                  Farm Advisor

621                  Joint Lassen/Shasta Farm Advisor

701                  Recreation and Parks

710                  Veterans’ Halls

Debt Service/Contingency

900                  Reserves for Contingencies

ACCUMULATED CAPITAL OUTLAY (040)

161                  Accumulated Capital Outlay

CAPITAL PROJECTS-JUVENILE HALL CONSTRUCTION (046)

16902              Juvenile Hall Construction (History)

CAPITAL PROJECTS-ADULT REHAB CONSTRUCTION (047)

16903              Adult Rehabilitation Center Construction (History)

IMPACT MITIGATION FEE FUND (057)

157                  Impact Mitigation Fee Administration

CAPITAL PROJECTS - GENERAL (062)

166                  Land, Buildings, and Improvements

RESOURCE MANAGEMENT FUND (064)

282                  Building Inspection

286                  Planning

400                  Resource Management General Revenues

402                  Environmental Health

GENERAL FEDERAL FOREST TITLE III FUND (065)

176                  Title III Projects

DEBT SERVICE (070)

803                  County Courthouse Bonds

DEBT SERVICE (072)

805                  Administration Center Bonds

DEBT SERVICE (073)

806                  Energy Retrofit Administration

MENTAL HEALTH FUND (080)

410                  Mental Health

422                  Alcohol and Drug Programs

425                  Perinatal Program

MENTAL HEALTH SERVICES ACT FUND (081)

404                  Mental Health Services Act

INTER-MOUNTAIN FAIR FUND (100)

159                  Inter-Mountain Fair

OPPORTUNITY CENTER FUND (120)

530                  Opportunity Center

SOCIAL SERVICES FUND (140)

501                  Social Services

502                  Health & Human Services Agency Administration

541                  Cash Aid Payments

WILDLIFE FUND (150)

294                  Wildlife Control

GENERAL RESERVE FUND (170)

160                  General Reserves

HOUSING HOME IPP FUND (185)

593                  PHA Housing Assistance

HOUSING HOME IPP FUND (186)

592                  Housing Home IPP Administration

CALHOME PROP 1C FUNDING (187)

591                  CalHome Prop 1C Funding

ENDANGERED SPECIES FUND (188)

285                  Knighton Road Beetle Mitigation

ROAD FUND (190)

301                  Roads

ROADS DUST MITIGATION FUND (191)

302                  Sacramento Valley Air Pollution Paving

CHILD SUPPORT SERVICES FUND (192)

228                  Child Support Services

PUBLIC SAFETY FUND (195)

220                  Public Safety General Revenues

227                  District Attorney

235                  Sheriff

236                  Boating Safety

246                  Detention Annex

260                  Jail

261                  Burney Substation

262                  Juvenile Hall

263                  Probation

287                  Coroner

288                  Central Dispatch

PUBLIC HEALTH FUND (196)

411                  Public Health

412                  Shasta County Health Care

417                  California Children’s Services

SHASTA HOUSING REHABILITATION FUND (197)

596                  Housing Rehabilitation Administration

INTERNAL SERVICE FUNDS

Fund 201         Fleet Management (Cost Center 940)

Fund 202         Risk Management (Cost Center 950)

Fund 203         Information Technology (Cost Center 925)

Fund 204         Facilities Management (Cost Center 955)

Fund 205         Shasta Co. Utilities Admin. (Cost Center 00205)

ENTERPRISE FUNDS

Fund 200         Fall River Mills Airport

Fund 206         R. W. Curry West Central Landfill Replacement & Improvement

                            Fund

Fund 207         Solid Waste Administration

Fund 209         R. W. Curry West Central Landfill Closure/Post-Closure Fund

Fund 210         Shasta County Transit

SPECIAL DISTRICTS UNDER BOARD OF SUPERVISORS

Fund 300-         County Service Areas and

         399          Permanent Road Divisions

         600-         (Includes Fund 391-CSA #1 –

         636          County Fire)

OTHER AGENCIES

Fund 371         Shasta County Water Agency

Fund 851         In-Home Supportive Services Public Authority

SUMMARY

The County must approve a spending plan for FY 2017-18 by June 30, 2017.  The Budget Hearings will provide the Board with an opportunity to receive a budget overview from the County Executive Officer (CEO), receive input from the public, and consider appeals from department heads.

DISCUSSION

ALTERNATIVES

The Board could decline to hold, or postpone the budget hearing.  In the event the Budget Hearings are not conducted as recommended, a spending plan must still be approved by June 30, 2017.  This would require the CEO to conduct a supplemental budget process to combine with the Recommended Budget for the Board to consider in August 2017.

OTHER AGENCY INVOLVEMENT

Every County department head provided input into this report via their budget request.  The CEO and/or the CAO analysts have met with department heads to discuss their budget request.  The CEO and Auditor-Controller worked collaboratively on compilation of the Recommended Budget.

FINANCING

Department heads have worked diligently to control spending in the current fiscal year to create fund balance carryover for FY 2017-18.  General Fund departments are projected to achieve a 10 percent expenditure reduction in the fiscal year ending June 30, 2017, which will result in a fund balance carryover of $10 million.

The CEO held a kick-off meeting for the FY 2017-18 Budget on February 8, 2017.  As a baseline, General Fund departments and departments receiving a General Fund contribution, were directed to submit on a status quo budget.  Exceptions to this were made on a case-by-case basis for departments with a MOE.  Due to the impact of the increasing costs of health care, retirement, potential changes to Federal funding, and the State of California planning for a recession, departments were asked to monitor expenses on a continued basis during FY 2017-18.

Total funding requirements for the General Fund, which includes the subsidy to non-general fund departments, is $73.6 million.  This will be offset by revenue, $62.1 million, leaving a structural imbalance of $11.5 million. This will be offset by use of fund balance carryover and General Fund General Purpose fund balance.  The carryover estimate is developed through a joint effort of staff in the Auditor-Controller’s Office and the County Administrative Office.  The actual fund balance figure is not firm until the County’s books are closed at the end of September, subsequent to the adoption of the County budget.

Department heads and their fiscal managers are to be commended for their willingness to manage spending within available resources while continuing to meet the needs of our community.