LAKEPORT, Calif. – During a brief Tuesday morning public hearing, the Board of Supervisors considered and approved the budget for the new fiscal year, which the county’s administrative officer warned is likely to be the last in which county operations and services follow the normal pattern.
The board had held lengthy budget hearings in June to go over the details of the budget. The Tuesday budget discussion lasted less than 20 minutes.
The final recommended budget totals approximately $242,986,990, $12 million more than the budget the board approved at this time last year.
Supervisor Tina Scott and County Administrative Officer Carol Huchingson were absent from the meeting. However, for the budget discussion staff presented a video of Huchingson giving her budget message to the board.
“We are still severely challenged financially here in Lake County, not only with the slow recovery but also from the long series of unprecedented wildfire disasters,” she said, noting that no less than three additional disasters – the Pawnee, Ranch and River fires – have occurred since the board considered an earlier version of the budget in June.
Huchingson said the county also is severely constrained by 10 years of stagnant revenues and mandated increases they’re facing in retirement contributions and minimum wage rates.
“This budget before you today provides very little additional discretionary revenue to support new positions or new initiatives,” she said.
General fund appropriations show only about a three tenths of one percent increase over the prior year, while the net county cost change for the general fund budgets remains relatively unchanged from last year. Huchingson said the cost of any new general fund positions have been absorbed within the previous year’s funding levels.
“While the near term outlook may appear bleak, this budget also focuses on long term solutions,” she said, explaining that it invests in operational efficiencies and it commits to replenishing reserves.
Huchingson said the budget continues to emphasize the ongoing administration of the master fee schedule, continues the recently implemented grant writing position and includes consultant support to identify opportunities for improved organization efficiencies.
The budget also invests in needed upgrades to technological systems, continues to set aside money in a fund the board recently established to put the county in a better position to deal with increased pension contributions that will start in 2019-20, she said.
“The fiscal year 2018-19 budget is likely to be the last in a series of years in which county operations and services could be considered business as usual,” which Huchingson said the board recognized with its recent acceptance of a pilot program that closes some county offices on Fridays.
Huchingson said the county has a vacancy rate of at least 20 percent, with staff struggling to keep pace with workload.
She said she’s working with department heads on a plan for what county operations will look like in the future. “Sadly, our ability to take on new initiatives will be severely limited in the years to come.”
As is required by law, the county’s 2018-19 budget is balanced, with sufficient revenue to support appropriations. However, Huchingson said that, like last year’s budget, it is not structurally balanced, which means it uses unreserved fund balance carryover to support ongoing general funds operations.
In the face of unprecedented challenges, Huchingson said county staff has continued to show extraordinary dedication, providing public programs and services despite diminishing operational budgets and employee retention issues.
She also lauded the budget team in her office for their work as well as the efforts of county Auditor-Controller Cathy Saderlund, who despite overseeing funding for nine disasters managed to get the necessary work done for the budget.
“The challenges we face in the years to come are significant,” said Huchingson, who added that she’s confident that with the board’s “thoughtful direction,” along with the efforts of department heads, the county can approach the new fiscal year with positive momentum.
Supervisors Jeff Smith said the county department heads are doing the hard work, continuing to work with the public while dealing with less resources and making the board look good.
He said it’s amazing what the county has done over the last 10 years with nothing. “You guys always keep doing more with less,” he told county staff.
Supervisor Rob Brown said they’re struggling to come up with ideas to address the county’s challenges, adding that he doesn’t think any idea should be off the table at this point.
While he agreed that the county is on the mend, he said it needs to be making changes to the way its operations are done.
“I don’t see good years for a long time to come. They will come, but it’s going to be awhile,” Brown said.
In order to make the good years come quicker, Brown said the county needs to make tough decisions now, including cutting some vacant positions to give increases to current staff. He also cited operations costs including the county’s vehicle use policy, as needing to be reviewed.
“You guys are doing so much with so little,” he told staff.
“This is a time of opportunity as much as it is a time of challenge,” said Board Chair Jim Steele, explaining that a lot of rural counties are having similar conversations.
He said there are a lot of grant funding opportunities that the county has to look at and pursue. Steele also suggested that it may be time to once again look at community choice aggregation for power purchasing to lower county costs.
The board then unanimously approved resolutions adopting the budget for fiscal year 2018-19, establishing new classifications and canceling general reserves, and also approved continuing the informal hiring freeze for general fund departments, delegating authority to Huchingson to waive the hiring freeze as appropriate.
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Supervisors approve $242 million budget; challenges ahead are ‘significant’
- Elizabeth Larson
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