To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
Vote Requirement: Majority
SUBJECT:
title
General Fund Budget Outlook and Budget Ad Hoc Committee Report
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Accept a staff presentation on the budget outlook and projection for the General Fund through fiscal year (FY) 2026-27; and
2. Receive a report out from the Budget Ad Hoc Committee.
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STRATEGIC PLAN:
This action supports the following areas of your Board's Strategic Plan.
Area of Focus: A Diverse, Equitable & Robust Economy
Strategic Plan Category: 2001 - Promote strong economic resiliency and growth
DISCUSSION:
On Feb. 6, 2024, your Board received the Fiscal Year (FY) 2023-24 mid-year budget presentation and provided the County Administrative Officer (CAO) with parameters for preparing the FY 2024-25 county budget. During that presentation, staff presented the estimated ending fund balance for FY 2023-24 at nearly $26 million, of which $5.3 million is Measure Z funds, therefore $20.7 million is estimated to be available to fund FY 2024-25.
County Administrative Office staff are still reviewing the FY 2024-25 budget submissions including updated FY 2023-24 year-end estimates, though initial review projects improvement in the estimated FY 2023-24 ending fund balance for the General Fund.
At the request of the Budget Ad Hoc Committee, staff prepared a General Fund projection to determine approximately when the General Fund would run out of fund balance. Additionally, the Ad Hoc members requested an estimated amount that would need to be cut by all General Fund departments at that time. The initial projection prepared by staff made the following assumptions:
* 3% increases in salary and benefit costs and internal service fund charges for FY 2025-26 and FY 2026-27 due to regular step increases and benefit costs increases, other expenditures to stay the same
* 2% increases i...
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