Loading...
HomeMy WebLinkAboutMINUTES - 11241992 - 1.49 TO: BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator _ Costa o`er s DATE: November 19, 1992 County`°*Tq c�U� SUBJECT: COST OF PLACING MEASURE "B" ON THE BALLOT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Accept this report from the County Administrator commenting on the costs to the County of placing Measure "B" on the ballot and concluding that there was no additional, direct General Fund cost to the taxpayer from the Board of Supervisors having done so. BACKGROUND: BASIS OF THE REFERRAL: At the Board meeting on November 17, 1992, the County Administrator was asked to determine the cost to the County of placing Measure "B" on the ballot, and more generally the cost to any jurisdiction of placing any measure on a ballot. The following is in response to this request. Information was provided to the Board of Supervisors on November 17, 1992 to the effect that the "cost" to the County of placing Measure "B" on the ballot was approximately $152,000 . At the same time, it was noted that the Board of Supervisors had been advised orally by the County Administrator when Measure "B" was placed on the ballot, that the "cost" of placing the measure on the ballot would be held to the absolute minimum possible and would probably be. only a "few thousand dollars" . The Board of Supervisors had also been advised in writing on July 28, 1992 that the cost of placing any measure on the ballot would not exceed $50,000 (See attached Board Order) . Based on the estimate that the cost would CONTINUED ON ATTACHMENT: _YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON November 24 , 1992 -APPROVED AS RECOMMENDED �1 OTHER VOTE OF SUPERVISORS �( I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS MTHE DATE SHOWN. ATTESTED 9�� Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF CC: County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR County Clerk-Recorder Assistant Registrar of Voters County Counsel BY DEPUTY be held to an absolute minimum, the Board of Supervisors voted to place Measure "B" on the November 3, 1992 ballot. Each of these figures is understandable and can be explained, particularly once it is clear how the budget for the Elections Division is calculated and how charges to various jurisdictions for placing measures on the ballot are assessed: EXPLANATION OF THE CHARGES MADE TO JURISDICTIONS: The Elections Division of the County Clerk's Office has a substantial overhead cost which exists regardless of how many elections are held .in a year and regardless of how many measures are placed on any particular ballot. These costs have to do with registering and re-registering voters, establishing and staffing precincts, advising individual candidates, organizations and jurisdictions on the laws regulating elections, maintaining records on committees, campaign finances and disclosure statements, and in establishing an automated system to handle whatever number of elections and whatever length and type of ballots are needed in any given year. It is only fair that some of these overhead costs should be recovered from each jurisdiction which places a measure on the ballot, based on the number of precincts which are involved in voting on a particular measure. The actual "cost" of placing a measure on the ballot depends on a great many factors . These can include the number of other measures on a particular ballot, whether a given measure results in the need to add another ballot card in one or more precincts, the actual additional printing costs for ballot arguments and rebuttals for a given measure, the cost of verifying and counting absentee ballots and similar costs which can vary widely depending on the length of a given measure, the geographic area of the County voting on the measure and the number of absentee ballots which are cast. In an effort to approximate the actual costs of conducting an average election with an average number of candidates and measures and assign costs in an equitable manner, consultants retained by the County to study the County's fee structure have advised the County to charge other jurisdictions a fixed fee based on the number of precincts which are involved in a particular measure or candidate' s election. Thus, each city, fire district, hospital district, water district, or other special district, school district and other jurisdiction which asks the County to conduct an election which is consolidated with a General or Primary election pays a fixed fee per precinct for the election. In 1992, this fee was calculated to be $150 per precinct. This fee covers all of the ongoing overhead costs noted above, plus the actual "out-of-pocket" expenses which the addition of a particular candidate or measure adds to the overall costs of the election. Thus, a city or other jurisdiction which calls an election in an area consisting of 50 precincts will be charged a fee of $7,500 ($150 x 50) . A jurisdiction calling an election in an area consisting of 500 precincts will pay a fee of $75,000 ($150 x 500) . A countywide election that includes every precinct in the County will cost the jurisdiction $141,900 ($150 x 946 ) . This averages out to 28 cents per registered voter in a precinct. ACTUAL "MARGINAL" COSTS FOR A GIVEN MEASURE VERSUS FEE: 0 It is essential at this point to distinguish the actual "marginal" or "out-of-pocket" costs of placing any given measure on the ballot from the "charges" which are made to a jurisdiction for placing a measure on the ballot. The analogy which is perhaps most easily understandable at this point is that of the "cost" of admitting a single patient to a hospital which is already operational and has several vacant beds, versus the "charge" which is made to that patient. The "cost" may consist of some additional food, an additional change of linen, a small amount of nursing time and perhaps some medications and laboratory work. However, the patient (or the patient' s insurance company) may be "charged" $1000 a day or more for these services . This is because the hospital has to recover not only the incremental cost of serving one patient more -2- or less, but also recover all of its overhead and fixed costs. When a patient is admitted to a hospital, the patient is immediately benefitting from the availability of many personnel and services which the patient may or may not actually use, but which are still available if needed. While many of these services are recovered only from the patients who use the service, many more are charged to all patients, whether or not any particular patient may use any particular service. In the same way, the Elections Division charges a fee for the use of all of its available services and for its ability to conduct an election accurately and efficiently. It would be difficult to imagine any other individual jurisdiction in the County being able to conduct an election fully in accordance with the State laws and to do so as fairly, efficiently, accurately, and inexpensively as the Elections Division does . Thus, any jurisdiction that wishes to make use of these facilities and services is expected to pay for them. It should be noted that many jurisdictions are not required to use the County Clerk's Office to conduct elections . These jurisdictions can conduct their own election if they wish to do so. The fact that almost all jurisdictions consolidate their elections with the County-operated elections is a testament to the fact that it is economical to do so. HISTORY OF MEASURE "B" : When the Board of Supervisors first considered placing what became Measure "B" on the November 3, 1992 ballot, a question was asked regarding what the costs to do so might be. The Elections Division staff, without having any solid information regarding the length, complexity or nature of the measure indicated that the "cost" would absolutely not exceed $50,000 . This figure is reflected in a report from the County Administrator to the Board of Supervisors dated July 27, 1992, which was presented to the Board of Supervisors on July 28, 1992, at which time the Board directed the preparation of a ballot measure which the Board considered on August 4, 1992 . The County Administrator was asked to determine whether it was possible to refine this figure prior to the time that the Board gave final consideration to the matter on August 11, 1992 . In a subsequent conversation with the County-Clerk, the County Administrator was assured, based on the information that was available at that time, that everything possible would be done to keep the costs to an absolute minimum since the election was being consolidated with the General Election and there were obviously going to be a number of other measures on the ballot. Based on this information and other considerations, a majority of the Board of Supervisors voted to place the measure on the November 3, 1992 ballot. The fact is that the only directly measurable "out-of-pocket" costs involved in placing Measure "B" on the ballot, were the direct costs of printing the ballot argument in support of Measure "B" . This totalled $10,291 . CHARGES FOR A COUNTYWIDE MEASURE: Now we come to the question of what was meant when the figure of $152,000 was used, apparently in answer to the question of what it "cost" the Board of Supervisors to place Measure "B" on the ballot. We must go back to the fixed charge of $150 per precinct. At this rate, a countywide election will involve a "charge" of $141,900 for a measure which is consolidated with the Primary or General election. In addition, there is the actual "cost" of $10,291 for printing the ballot argument. Together these two figures total $152, 191 . This is the figure which was provided in answer to the question which was apparently asked. However, it is important to consider the relationship between the Board of Supervisors and the .Elections Division, compared to the relationship between the Elections Division and any other jurisdiction which calls elections . • -3- RELATIONSHIP OF THE BOARD OF SUPERVISORS TO THE ELECTIONS DIVISION OF THE COUNTY CLERK' S OFFICE: Any other jurisdiction wishing to know what it will cost the jurisdiction to place a matter on the ballot need only call the Elections Divisions . The jurisdiction will be told that the charge will be $150 per precinct for each precinct involved in the election. Except for additional "per name" costs for candidates and the agency's proportional share of the cost of processing absentee ballots, the charge will be neither lower nor higher than this and this is a figure the jurisdiction can depend on in determining whether to place a matter on the ballot. The Board of Supervisors is, of course, responsible for the Elections Division' s budget. The Board of Supervisors is liable for the total cost of the election for all federal offices, all state offices, all statewide measures and all County measures which it places on the ballot. The overwhelming portion of these costs involve federal and state offices and measures . In addition, the Elections Division can only make an educated guess at what its revenue will be. As has been explained above, the Elections Division' s revenue depends almost entirely on the number and magnitude of measures which are consolidated with other elections which are already being conducted. Given that the vast majority of the Elections Division' s costs are fixed, and that the amount of revenue to be offset against those costs depends on the decisions made by dozens of other independent jurisdictions, the Board of Supervisors is left, at times, in a somewhat precarious position at best in judging how much County General Fund money will be required to operate the Elections Division. If some jurisdictions that were expected to place measures on the ballot decide not to do so, revenue is reduced, but costs remain essentially fixed. The Board of Supervisors is liable for making up the shortfall. On the other hand, if costs are kept down and revenue proves to be greater than had been anticipated, some of the County General Fund money which had been provided when the budget was adopted may not be needed. In this case, any fund balance at the end of the fiscal year is returned to the County General Fund. As a result of this rather unique relationship, it seems unnecessary for the Elections Division to "bill" the Board of Supervisors for the normal "charges" for measures which the Board of Supervisors places on the ballot. To do so would simply require that the Board of Supervisors move money from one pocket to another, and at the end of the year move the money back again, without having accomplished anything of any material significance. Therefore, while the Elections Division keeps track of the "out-of- pocket" expenses which have been incurred as a result of measures the Board of Supervisors has placed on the ballot, the fact is that the Board is never billed for these expenses . If the Elections Division has unexpected expenses without corresponding offsetting revenue, it may run a deficit, which the Board of Supervisors is required to make up. If the Elections Division stays within its budget, as has been the case in the recent past, any fund balance is returned to the County General Fund. This, in effect, can be seen as offsetting any actual "cost" of having placed a measure on the ballot. On the other hand, the Board pays a great deal of General Fund money to operate elections, regardless of whether the Board of Supervisors ever places a measure on the ballot. "COST" OF PLACING MEASURE "B" ON THE BALLOT: As has been explained above, because of the responsibility the Board of Supervisors has to finance elections in this County, assuming the Elections Division's budget remains balanced for the balance of the current fiscal year, there is, in fact, no additional cost to the County, General Fund for having placed Measure"B" on the ballot. -4- TO: BOARD OF SUPERVISORS Contra _ /— .• + FROM: Phil Batchelor, County Administrator Costa o... •5 DATE: July 27 , 1992 ;r, .'*` Count y cov4't' SUBJECT: POTENTIAL BALLOT MEASURES ADDRESSING THE NEED FOR ADDITIONAL REVENUE SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Review each of the following potential revenue sources and provide direction to staff regarding whether or not any measures should be prepared for inclusion on the November 3, 1992 ballot and, if so, to return proposed ballot language to the Board on August 4 , 1992 for further consideration. FINANCIAL IMPACT: The Assistant Registrar of Voters estimates that it will require approximately $50, 000 to place one or more measures on the November 3, 1992 ballot . All funds for this purpose have been removed from the County Clerk-Recorder' s budget. BACKGROUND: In order to get a complete picture of the status of Phase I budget reductions following the actions taken by the Board on July 20 , 1992 , we have outlined below those reductions which fall into one of the following five categories : 1 . CATEGORY # 1 : DEFERRED LAYOFFS Reductions which will take place, but where the elimination of the positions have been delayed by one month ( from August 31, 1992 to September 30, 1992 ) . 2 . CATEGORY # 2 : UNBUDGETED GA EXPENDITURES Anticipated expenditure reductions to the General Assistance Program for which a methodology to achieve the reductions has not yet been implemented. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE 'L APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON July 28, 1992 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: ATTESTED PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) "' -- DEPUTY 3 . CATEGORY # 3 : CANCELLED COMMUNITY-BASED ORGANIZATION CONTRACTS y Program reductions or eliminations on which the Board has taken action, but where there was also an expressed interest in restoring at least a portion of the planned reduction. 4 . CATEGORY # 4 : EXPLORATION OF REVENUE ALTERNATIVES Program reductions or eliminations on which the Board has taken action, but where the Board has directed that alternative methods of funding the program be explored. 5 . CATEGORY # 5 : PROGRAMS AT RISK IN PHASE II Substantially reduce the Sheriff ' s Patrol Close the West County Detention Facility Additional reductions in the Sheriff ' s Investigation Division services Additional reductions in Crime Lab services Potentially eliminate most misdemeanor and some felony prosecutions in the District Attorney' s Office. Close the Byron Boys ' Ranch Further reductions in the Public Defender' s Office Eliminate Basic Adult Care clients from Contra Costa Health Plan & Reduce their access to outpatient clinics . Eliminate urgent care and drop-in clinics Close Brentwood Clinic Reduce staffing at regional family practice and specialty clinics by 25% Reduce staffing of Adult Protective Services, Child Welfare Services, In-Home Supportive Services, Income Maintenance and GAIN by an additional 38 positions . Reduce a significant number of contracts with community- based ,organizations that provide mental health and alcohol/drug treatment services Following is a more detailed description of each of these categories , along with the amount of money. which would be required to maintain the position or program for the balance of the current fiscal year and the amount of money required for a full fiscal year. . Funds Required Remainder of Full Year 1992-93 1993-94 CATEGORY # 1 : DEFERRED LAYOFFS 1 . Sheriff ' s Department Patrol : 9 Deputy Sheriffs and 6 Sgts . - $ 762 ,750 $1, 017, 000 Investigation: 4 Deputy Sheriffs- $ 189 , 000 $ 252, 000 Crime Lab: 1 Criminalist & 1 Forensic Toxicologist $ 99 , 756 $ 133, 008 2 . Orinda Fire Protection District 3 Firefighters $ 166 ,500 $ 222 , 000 3 . Veterans Service Office 2 clerical positions $ 51, 264 $ 68, 352 CATEGORY # 2 : UNBUDGETED GA EXPENDITURES General Assistance Shortfall $5,400, 000 $5, 400, 000 CATEGORY # 3 : CANCELLED COMMUNITY-BASED ORGANIZATION CONTRACTS (See attached list) $1, 364 , 826 $1, 364 , 826 CATEGORY # 4 : EXPLORATION OF REVENUE ALTERNATIVES 1 . Career Development Employment Pgm. $ 69 , 950 $ 83, 940 2 . Training Institute $ 1781930 $ 214 , 716 GRAND TOTAL $8,282 , 976 $8, 755, 842 2 ' CATEGORY # 5 : PROGRAMS AT RISK IN PHASE II 1 . ADDITIONAL PHASE II REDUCTIONS WILL BE REQUIRED. IT IS IMPOSSIBLE AT THIS TIME TO PRECISELY QUANTIFY THE TOTAL DOLLAR VALUE OF THESE REDUCTIONS. IT IS LIKELY, HOWEVER, THAT THERE MAY WELL BE TENS OF MILLIONS OF DOLLARS IN ADDITIONAL REDUCTIONS REQUIRED BY PHASE II . 2 . EVEN IF A SOURCE OF REVENUE IS IDENTIFIED, IT IS QUITE LIKELY THAT IT WILL NOT BE POSSIBLE TO HAVE SUCH A SOURCE IMPLEMENTED IN TIME TO FORESTALL THE NEED FOR SOME OF THE PHASE II REDUCTIONS . 3 . IT IS ALSO POSSIBLE THAT THERE WILL BE ADDITIONAL MILLIONS OF DOLLARS IN REDUCTIONS BUILT INTO THE 1993-94 COUNTY BUDGET BY THE ADOPTION OF THE STATE BUDGET IF THE STATE BUDGET IMPLEMENTS THE AB-8 SHIFT, ELIMINATION OF THE SDAF OR OTHER MEASURES ON A TWO OR THREE YEAR BASIS . Therefore, these planned reductions are not the only programs, services and personnel in jeopardy. In an effort to consider ways to blunt the impact of these massive reductions , the Board of Supervisors directed staff to outline several potential revenue sources . Following are revenue sources the Board currently has authority to impose and several which require additional authority from the Legislature. TAXES FOR WHICH THE BOARD CURRENTLY HAS AUTHORITY: UTILITY USERS TAX IN THE UNINCORPORATED AREA OF THE COUNTY: The Board currently has authority to impose a utility users tax for general revenue purposes without a vote of the people . Each 1% of such a tax produces approximately $1,500, 000 of revenue, depending on the assumptions used. This estimate assumes a maximum charge to the largest utility users and an exclusion for lower income persons or "lifeline" users . It should be noted that this figure will have to be reduced by the offsetting loss of revenue from any major industries which choose to annex to a contiguous city to escape the utility tax. Further research will be necessary to develop appropriate data from which to refine this estimate. BENEFIT ASSESSMENT FOR FIRE DISTRICT PURPOSES : The Board currently has authority to impose such assessments for fire district purposes, subject to specified property owner protest provisions which can either require that the proposed assessment be placed on the ballot or which can entirely preclude further consideration of the assessment. Currently the following districts have benefit assessments in place in the amounts indicated: Riverview Fire Protection District, $29 . 00; East Diablo Fire Protection District, $14 . 50; Oakley Fire Protection District, $13 . 00 . The following Board-governed districts do not have a fire district benefit assessment in place: Bethel Island, Contra Costa County, Crockett-Carquinez, Moraga* , Orinda, Pinole and West County. * Moraga does not have a benefit assessment, but does have a voter approved special tax (Fire Flow Tax) . SPECIAL TAXES FOR POLICE SERVICE AREAS - UNINCORPORATED AREA: The Board currently has authority to impose a special non-ad valorem tax for supplemental police services upon a two-thirds vote of the voters . The voters approve a maximum tax amount and the Board annually levies up to the maximum amount by a majority vote of the Board of Supervisors . 3 COUNTYWIDE AUTHORITY FOR A TAX TO SUPPORT SPECIAL POLICE SERVICES : Currently, the Board has the authority to impose a tax on residents within defined police service districts with approval of two-thirds of the voters . Also, the Board has authority to impose a similar non-ad valorem tax countywide to support special police services, such as the Crime Lab, narcotics units, anti-gang task forces, etc. with a two thirds vote of the voters . POTENTIAL REVENUE SOURCES REQUIRING STATE LEGISLATIVE AUTHORITY: COUNTYWIDE UTILITY USERS TAX: The Board currently cannot impose a utility users tax within any incorporated area of the County. Some Legislators have discussed providing such authority to counties, with or without the concurrence of the cities and with or without the approval of the voters . Currently, five cities impose such a tax on gas , electric and telephone billings at the following rates : E1 Cerrito 8% Hercules 5% Pinole 7% Richmond 6% San Pablo 8% In addition, Pleasant Hill has a 1% tax on only a portion of telephone billings . If imposed Countywide, a 1% tax on gas and electric billings would generate over $4 , 000, 000 a year, depending on the assumptions used, such as maximum charges on the largest utility users, exclusion of lower income persons and credits to the residents of cities which already impose such a tax. Further research will be necessary to develop appropriate data from which to refine this estimate. BROADENED BENEFIT ASSESSMENT AUTHORITY FOR COUNTY SERVICE AREAS: The Board currently has the authority to impose a benefit assessment for fire service and certain other fairly limited purposes, not including libraries' and police services . Some Legislators have discussed broadening this authority, similar to the proposal contained in AB 1505 (Farr) which passed the Legislature in 1991 but was vetoed by the Governor because it did not require. a vote of the people. Expanding this authority might allow the Board to impose such a benefit assessment for some additional services which are now provided to residents of the County. INCREASED SALES TAX IN THE UNINCORPORATED AREA OF THE COUNTY: Currently, the sales tax in Contra Costa County is 8 . 25% . This includes the following elements : State General Sales Tax 4 . 75% City & County General Sales Tax 1 . 00% County Road Maintenance Sales Tax . 25% SUBTOTAL 6 . 00% Bay Area Rapid Transit District . 50% Measure "C" Transportation . 50% Program Realignment . 50% Additional State Sales Tax . 75% TOTAL 8 . 25% The County has no authority to impose any additional sales taxes at this time. Legislation (SB 1364 ) has been drafted which would provide the Board and the cities with a system for imposing an additional . 75% sales tax on July 1, 1992 and up to a total of 1 . 25% on and after July 1, 1993, without a vote of the people. Each . 25% increase in the sales tax countywide produces $18,800, 000 of revenue . 4 PARCEL TAX OVERRIDE FOR RETIREMENT COSTS: Cities and counties had authority during the 1982-83 and 1983-84 fiscal years to impose a parcel tax to cover the costs of a voter- approved retirement system. That authority expired on June 30, 1984 . Assemblyman Campbell was successful in getting legislation through the Legislature in 1989 to reopen this window. However, the bill was vetoed by then-Governor Deukmejian. A similar effort was made by Assemblyman Campbell in 1991 (AB 394 ) . The bill was abandoned when it became clear that there was not sufficient support in the Legislature to insure the approval of the Governor. Several counties are now looking at this alternative again. The County' s contribution to the retirement system for the 1991-92 fiscal year was $44 million. However, it should be noted that when the Legislature passed such legislation in 1989 , it was necessary to "cap" the maximum amount which could be raised in this manner at $10, 000, 000 . A similar cap might be placed on such legislation again in terms of a percentage of the actual contributions for the prior fiscal year. 5 1 COMMUNITY-BASED CONTRACTS AFFECTED BY BUDGET REDUCTIONS Annual Total Restoration Cost: Social Service Department Contract Balance of FY 92-93 Community Food Bank $ 119,532 $ 119,532 Contra Costa Assn. for Retarded Citizens 9,550 9,550 Mayflower 9,000 9 ,000 Meals on Wheels 15,312 15, 312 Family Stress Center, Inc (2 Contracts) 75,408 75,408 Contra Costa Child Care Council 68,088 68,088 Family Stress Center 56,928 56,928 Child Abuse Prevention 68,772 68,772 West Coast Children's Center 24,992 24,992 Subtotal $ 447,582 $ 447,582 Health Services Department Mental Health Community Concern $ 160,226 $ 60,000 CC Crisis and Suicide Prevention 74,515 38,000 Phoenix Programs 2, 341,513 88,000 Bi-Sett Corporation 1,310, 016 North Richmond Neighborhood House 275,870 Sunrise House 384,061 490,000* East County Community Detox 336,2 3 Subtotal $4, 882 ,494 $ 676, 000 District Attorney Battered Women's Alternatives $ 207,914** 133,624 Rape Crisis Center 117,620 107 ,620 Subtotal $ 325,534 $ 241,244 TOTAL $5,655,610 $1,364,826 * Loss of rehab beds may increase General Assistance grant costs - analysis of fiscal impact underway. **Includes $74,290 of marriage license fees (restricted) which has already been awarded to contractor. h26:redcont.cht