HomeMy WebLinkAboutMINUTES - 12192006 - SD.5 6E L Contra
TO: BOARD OF SUPERVISORS ;
FROM: John Cullen, Co Inistrator �`, •-i!�Il,t,' b;= ", Costa
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DATE: December 19, 2006sr `� County
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SUBJECT: FY 2007-08 Recommended Budget Development S �.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&IBACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1. DECLARE the Board's intent to adopt a FY 2007/08 General Fund budget that balances annual expenses
and revenues, and that strengthens General Fund Reserves;
2. ACKNOWLEDGE that significant progress in restoring the County's fiscal health has occurred, and must
continue;
3. DECLARE the Board's desire to main)ain current year's service levels into FY 2007/08 if revenues allow;
4. DIRECT Department Heads to work closely with the County Administrator to achieve a balanced budget
that minimizes net County cost growth while continuing current service delivery levels;
5. DIRECT Departments, in cooperation with Labor Relations,to begin if necessary the meet and confer
process with employee representatives regarding the impact of potential program reductions on the terms
and conditions of employment for affected employees;
6. DIRECT the County Administrator to return to the Board April 17 with a FY 2007/08 Recommended
Budget that meets the above requirements; and
7. DESIGNATE Tuesday, April 17 for FY 2007/08 budget hearings (including Bielenson hearings if needed);
and Tuesday, May I for adoption of the FY 2007/08 County and Special District Budgets.
FISCAL IMPACT:
None. However, the result of the recommendations herein, if implemented, will increase the County's
General Fund Reserve and overall fiscal stability.
C'ONT'INUED ON ATTACHMENT: x YES I SIGNATURE: Ottww,"-,
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION 01;BOARD COMMITTEE
APPROVE. OTHER
SIGNATURV(S):
-------J------------------------- / ----- -
ACTION OF BOARD ON it 1 ROVE=AS RECOMMENDED� OT[EER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
_UNANIMOUS(ABSENT ) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN:
.
cJ�5r �.SQ--��/.S I ATTESTED
CONTACT` Lisa Driscoll(335-1023) JOHN CULLEN,CLERK OF THE::BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
CC: All County Dcpartmcnts
BY 9 DEPUTY
� � I
December 19, 2006
Page 2 of 2
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BACKGROUND:
Until FY 2005/06, General Fund expendituI res had for many years exceeded revenues, necessitating the use of
reserves to balance the budget. This reliance on reserves to balance the County's General Fund budget lead to a
downgrade in the County's credit rating; an overall weakness in the County's fiscal health, and an inability to
maintain needed services. During the 2005'/06 fiscal year, the Board of Supervisors took several actions to
reverse this trend. The Board of Supervisors adopted a General Fund Reserve Policy and a County Budget
Policy(additionally, the Board will consider a Debt Policy December 19, 2006). These policies declared the
Board's interest in improving the County'sllong-term financial stability and established goals for improvement.
The Board acknowledged that the County's practice of using fund balances and other reserves to balance its
budget in the past was not sustainable, and that the County would be better served by adopting a plan of action
to reverse the trend. The Board of Supervisors has reversed that trend.
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The recommended actions today will direct the County Administrator to return April 17 with a Recommended
Budget that as like FY 2006/07, again balances expenses with revenues for the 2007/08 fiscal year. This action
follows both the Budget and Reserve Policy. Building on improvements made this year, we plan an approach
that will minimize service reductions and provide the opportunity to continue to rebuild services and reserves.
Recommended Budget Development
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The County Administrator's Office is cautiously optimistic that growth in general purpose and program
revenues will be sufficient to fund our current baseline cost of services into FY 2007/08. In the last year, the
County has been able to sustain the structural cuts that balanced the FY 2005/06 budget, assessed valuation
growth continues to be strong, costs of compensation are generally known, services and supply growth is
manageable, and the economy continues by and large in a positive direction . However, there are many other
factors over which the County has little or no control (such as Federal and State budgets, economic changes,
health care costs, and demographics) that will affect the ultimate size of the baseline budget and ultimately the
County's budget challenge. Department Heads will be expected to work closely with the County
Administrator to achieve a balanced budget that restricts net County cost growth while minimizing service
delivery cuts. Wherever possible, categorical/program revenues will be increased to offset increased cost of
doing business. However, restrictions on increases in net County cost needed to balance the budget may result
in the loss of federal and State program revenues, and this added loss may cause program reductions.
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Meet and Confer
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Departmental budget requests are due to the County Administrator's Office on February 23. At that time
Department Heads will know which, if any, positions may be affected by reductions necessary to balance the
budget. Departments, in cooperation with'Labor Relations, will if necessary, begin the meet and confer process
with employee representatives regarding the impact of potential program reductions on the terms and
conditions of employment for affected employees. Early planning will allow Departments a reasonable period
of time to meet and confer, and permit them to implement all budgetary required actions prior to July 1, 2006.
This progress will allow the County to adopt a budget that is balanced from the first day of the fiscal year.
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Conclusion
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The County Administrator will return to the Board on April 17 with a FY 2007/08 Recommended Budget that
meets the requirements listed above. Tuesday, April 17 will be reserved for FY 2007/08 budget hearings
including Bielenson hearings if needed. Additionally, it is recommended that the County Administrator return
to the Board of Supervisors on Tuesday, May 1 for adoption of the FY 2007/08 County and Special District
Budgets, including any changes the Board makes on April 17.
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