To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
Vote Requirement: Majority
SUBJECT:
title
Fiscal Year (FY) 2026-27 Measure Z Recommendations
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Review and provide direction on the priority list from the Citizens’ Advisory Committee on Measure Z Expenditures for FY 2026-27; and
2. Re-authorize the County Administrative Officer, or a designee thereof, to execute any and all future memorandums of understanding regarding the allocation of Measure Z funding following the Board’s annual funding recommendations, and any amendments thereto, after review and approval by County Counsel and Risk Management; and
3. Provide other direction as needed.
Body
STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Safe & Healthy Communities
Strategic Plan Category: 1001 -Support and sustain partnerships between public safety and partner agencies to enhance public safety in our communities
DISCUSSION:
Summary
The Citizens’ Advisory Committee on Measure Z Expenditures has provided its prioritized list of projects it recommends the Board of Supervisors funds in FY 2026-27 with the $1.65 million in discretionary funding that is available. This list, if followed, would fund five projects, leaving just over $1,000 available.
FY 2026-26 Applications
The Citizens’ Advisory Committee on Measure Z Expenditures is tasked with receiving public input and recommending projects, programs or activities to be funded by the Board with revenue from Measure Z, a half-cent sales tax approved by voters in 2014. The committee uses an application process to develop recommendations and this year it received 14 applications requesting more than $2.6 million in funding. There is a total of $1.65 million available to be allocated in the upcoming FY 2026-27 budget cycle. The committee met in March to develop a prioritized list of recommendations (Attachment 1.2) and its finalized list recommends funding five applications as follows, in order of priority:
1. $57,900 North Coast Rape Crisis Team: Child Abuse Services Team Advocacy and Support Services
2. (Tied) $229,962 City of Fortuna: School Resource Officer for Eel River Valley campuses
2. (Tied) $80,872 Humboldt County Drug Task Force: Operational Support
2. (Tied) $1,034,018 Humboldt County Fire Chiefs' Association: Fire and Emergency Support
Services 1785
3. $245,914 Kimaw Medical Center: Emergency Ambulatory Services for Eastern Humboldt
County
The total amount requested in these five applications is $1,648,666, leaving $1,334 available. Of the 14 applications received, the committee determined that three of the applications received did met the spirit of Measure Z and were therefore eliminated from consideration. The remaining applications all have merit but are not recommended for funding at this time.
The amount in reserve is $864,000, while the committee maintains a stance that it would like to see the reserve equal 16% of revenues, or $2.08 million in order to protect against years when sales tax does not perform as expected.
County, Community Partner Allocations
There has been continued concerned about the overall split in funding between county departments and community partners. The committee recommended that in order to continue meeting the voters’ intent for Measure Z to provide the broad range of services included in the measure, annual funding from this measure should be split at roughly 70% for county departments and 30% for community partners.
The three-year spending plan adopted by your Board in December 2023 has helped to move closer to these goals. This plan dedicates where $12.5 million of this funding goes each year. To illustrate the effectiveness of the spending plan, the county back in FY 2023-24 received more than 90.5% of Measure Z funding, and in FY 2025-26 that number is down to 77.9%. The committee has repeatedly shown appreciation for the difficult work it took to bring about this change. If your Board follows the committee’s recommendation for FY 2026-27, county departments will receive 76.74% of total funding available.
Re-authorizing the CAO to Sign Measure Z Agreements
In 2019 the Board authorized the CAO to execute Measure Z contracts after the Board approved projects. This action was taken to expedite the annual contracting process with applicants. The Board-approved Purchasing Policy only allows this authorization to last for five years. Therefore, staff are recommending your Board re-authorize the CAO to execute Measure Z contracts, following Board approval and after review by County Counsel and Risk Management. If granted, this authorization would last until 2031.
SOURCE OF FUNDING:
Measure Z (1103-889)
FINANCIAL IMPACT:
|
Expenditures (1103-Various MZ Budget Units) |
FY26-27 Projected* |
FY27-28 Projected* |
|
3 Year Spending Plan |
$12,092,330 |
$12,500,000 |
|
Applications |
$ 1,650,000 |
$ 500,000 |
|
Total Expenditures |
$13,742,330 |
$13,000,000 |
*Projected amounts are estimates and are subject to change.
|
Funding Sources (1103-889) |
FY26-27 Projected* |
FY27-28 Projected* |
|
Base Revenue |
$13,000,000 |
$13,000,000 |
|
Revenue Projection Above Base |
$ 742,330 |
|
|
Fund Balance |
$13,742,330 |
$13,000,000 |
|
Total Funding Sources |
$12,500,000 |
$12,500,000 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
The 3-year spending plan approved by your Board was based on $12.5 million per year in appropriations. Staff are estimating $13 million in Measure Z revenue in FY 2026-27, and an additional $742,330 is available in fund balance as a result of prior year savings and revenue over projections.
There is $1.65 million in one-time funding available for allocation through the application process. This includes $407,670 in reallocated funding from the Public Works brush cutting project that was previously part of the current 3-year spending plan. Your Board, last year, directed those funds be available for the discretionary applications funded in FY 2026-27.
There is currently $864,000 set aside in contingencies for Measure Z, which is intended to be used when revenues do not meet projections.
STAFFING IMPACT:
Narrative Explanation of Staffing Impact:
There are 70 county employees funded by Measure Z, funding for which was included in the three-year spending plan. The applications under consideration today do not impact staffing levels. Some applications would impact staff’s ability to deliver certain services.
OTHER AGENCY INVOLVEMENT:
Agencies applying for Measure Z funding.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Board’s Discretion
ATTACHMENTS:
1.1 Letter from Chair Trent
1.2 2026 Application Rankings
2.1 Fortuna Police 249,962
2.2 Boys and Girls Club Teen Court 20,000
2.3 Dept. of Aviation 68,827
2.4 Hoopa Valley Tribal Police 84,506.63
2.5 Arcata Police 198,941
2.6 North Coast Rape Crisis Team 57,900
2.7 City of Trinidad 17,000
2.8 Humboldt County Drug Task Force 80,872
2.9 Humboldt County Fire Chiefs 1,034,018
2.10 Department of Aviation 23,337
2.11 Southern Humboldt Community Healthcare District 29,000
2.12 Access Humboldt 80,680
2.13 Bear River Band of the Rohnerville Rancheria 130,036
2.14 Kimaw Medical Center 570,914.09
PREVIOUS ACTION/REFERRAL:
Meeting of: April 22, 2025 and Dec. 5, 2023
File No.: 25-373, 23-1456