Title
Chief Administrative Office recommending the Board:
1) Receive and file a presentation and supporting documentation on the Fiscal Year (FY) 2025-26 Budget development as directed by the Board on March 11, 2024, with Legistar file 25-0449;
2) Direct staff to incorporate the following into the FY 2025-26 Recommended Budget:
a) Reallocate General Fund discretionary funding for the Chili Bar site, Forebay Park, and the Transportation Tahoma Building to County operations and reallocate the funding for the Juvenile Treatment Center Update to a Spring Street Replacement Designation;
b) Combine the Senior Day Care sites by closing the El Dorado Hills location and retaining the Placerville location and direct staff to return to the Board with a Senior Day Fee increase for full cost recovery within three years, including a Consumer Price Index annual increase;
c) Explore options to sell or lease the County-owned El Dorado Hills Senior Day site and return to the Board with recommendations for the FY 2025-26 Adopted Budget;
d) Explore potential for cost savings and revenue-generating opportunities in the Senior Nutrition, Senior Legal, and Animal Services Programs, including amendments to Ordinance Code Title 6 - Animals for inclusion in the FY 2026-27 Budget;
e) Direct staff to explore alternative service models for juvenile detention with regional partners for incorporation into future budgets;
f) Implement the Clerk of the Board’s two-year plan for the Records Center, resulting in an approximately 85% General Fund cost reduction after two years;
g) Implement program modifications to the Office of Wildfire Preparedness and Resilience, resulting in an approximately 47% General Fund cost reduction;
h) Continue to fund the Missouri Flat Master Circulation and Financing Plan until Phase One obligations are complete;
i) Discontinue Fire Tourism Impact funding in FY 2025-26;
j) Renegotiate the FY 2026-27 Resource Conservation District (RCD) Agreements to be comparable to Tahoe RCD;
k) Defer the El Dorado Hills Fire for Latrobe Educational Revenue Augmentation Fund equivalent contribution to the Adopted Budget, in alignment with Resolution 151-2024;
l) Discontinue funding for the Placerville Aquatic Center in FY 2025-26; and
m) Incorporate Board direction for the South Tahoe Transit Joint Powers Authority (JPA), Sacramento-Placerville Transportation Corridor JPA, and Board of Supervisors’ travel into the FY 2025-26 Budget;
3) Direct staff to develop a Retirement Incentive Plan, as soon as feasible;
4) Direct staff to begin working with departments on 5% and 10% budget reduction scenarios for the development of the FY 2026-27 Budget; and
5) Direct staff to work with the Budget Ad Hoc to explore revenue-generating options.
FUNDING: Countywide Budget.
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DISCUSSION / BACKGROUND
The Chief Administrative Office in cooperation with all County departments develops the countywide budget over an eleven-month process starting in November, with the Recommended Budget approved in June and budget adoption in September.
On November 5, 2024, with Legistar file 24-1916 the Board directed staff to explore options for potential General Fund savings. On January 28, 2025, with Legistar file 25-0217, the Board directed staff to include a discussion during the Budget regarding future funding for non-mandated programs. On February 11, 2025, with Legistar 25-0236, the Board received an update on the Budget development process. During that discussion, the Board directed staff to work with the Budget Ad Hoc Committee to research increasing fees to reflect the actual costs to provide the services and explore revenue generating ideas that focus on tourists rather than residents and return to the Board with a recommendation; directed staff to analyze the disaster designation goal and include code enforcement and public safety in County operations examples in Discretionary Transient Occupancy Tax (DTOT) Policy in Board Budget Policy B-16 to be incorporated into changes for Board approval on April 22, 2025; and provided the following direction to staff: a) Include DTOT in the County Budget General Fund; b) Pursue Option 1 excluding Outside Agencies Tourism Impacts (public safety component) to maintain at the 2024-25 funding level; and c) Fund DTOT County Operations with the following exceptions: 1) Reduce special funding Road Fund to $2 million; and 2) Reduce Planning Economic Development Division to $546,000.
Pursuant to Board direction on January 28, 2025, on March 11, 2025, with Legistar file 25-0449, the Board reviewed a list of all programs with a Net County Cost and their levels of discretion to be taken into consideration while creating and providing direction on the Fiscal Year 2025-26 Budget. During this discussion, the Board provided direction to staff on the following Net County Cost programs or contributions that the Board would like to further consider at a Board meeting on or before April 8, 2025: a) Juvenile Treatment Center (JTC); b) Community Service Programs; c) Possible consolidations, including Records Center; d) Office of Wildfire Preparedness & Resilience (OWPR); e) MC&FP annual contribution; and f) Outside agency discretionary contributions (from slide 6 of the presentation). The Board also directed staff to return with a list of current facilities projects to receive direction from the Board on potential modifications to scope, schedule, or cost, on or before April 8, 2025. Lastly, the Board directed staff to return to the Board with a draft plan to spread the budget gap across departments in proportion to their Net County Cost on or before April 8, 2025.
The Chief Administrative Office has prepared a presentation (Attachment A) for the Board in response to the direction provided in February and March 2025. Staff are seeking direction from the Board to aid in the development of the FY 2025-26 Budget.
The Chief Administrative Office will return to the Board on April 22, 2025, for further direction from the Board on the FY 2025-26 Recommended Budget, prior to the approval of the Recommended Budget during the June 10, 2025, Budget Hearing.
ALTERNATIVES
The Board could choose not to receive and file the presentation or provide direction to staff.
PRIOR BOARD ACTION
Legistar file 24-1916 - November 5, 2024 - The Board directed staff to explore options for potential General Fund savings.
Legistar file 25-0217 - January 28, 2025 - The Board directed staff to include a discussion during Budget regarding future funding for non-mandated programs.
Legistar file 25-0236 - February 11, 2025 - The Board directed DTOT allocations, provided direction on Board Budget Policies, and directed staff to explore revenue generating options.
Legistar file 25-0449 - March 11, 2025 - The Board reviewed County programs with a Net County Cost.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
All County departments participate in the development of the countywide budget.
FINANCIAL IMPACT
No financial impact at this time. Any direction from the Board from today’s discussion will be brought back to the Board for approval at the June 10, 2025, Budget Hearing.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Sue Hennike, Assistant Chief Administrative Officer