Budget Policy

 

These policies are intended to guide staff in developing the annual budget and to provide transparency for the general public.

 

OPERATING POLICIES

 

Maximize opportunities to consolidate, collaborate, and cooperate with other agencies to improve service delivery while saving money.

 

Identify opportunities to provide service delivery while improving efficiencies and saving money.

 

Increase transparency of the true cost of government by including Cost Plan charges in all General Fund department budgets.

 

Continue to fund the Actuarial Determined Contribution for Other Post Employment Benefits (OPEB) as determined by the County’s Actuary.

 

Continue to identify areas for evaluation efforts by staff, committees, or consultants to judge the effectiveness and/or efficiency of County services.

 

Utilize Teeter Fund Excess Cash as a means for general purpose revenues in the General Fund.

 

Maximize the use of Trust and Special Revenue Funds and other revenue sources (grants, etc.) to support programs and services that would otherwise consume General Fund resources.

 

Incorporate the Board Priorities and the strategic planning goals, adopted by the Board of Supervisors, by identifying and addressing the goals through the budget process.

 

The General Fund shall not subsidize the loss of grants programs, State and Federally funded programs, etc. unless authorized by the Board of Supervisors, and notice of any cancellation of these programs, shall be provided to the County Administrative Officer (CAO) immediately upon notice.

 

Incorporate annual Mello-Roos District or Community Facilities District (CFD) into the County’s operating budget, as determined by the Fiscal Impact and Service Level Analysis – Joint CFD, July 2018 report, and as allowed by law.

 

Incorporate annual Proposition 172 funding into the County’s Departmental operating budgets.

 

HUMAN RESOURCES AND PERSONNEL POLICIES 

 

Work with departments to create succession planning by increasing the availability of experienced employees through training and retention initiatives.

 

Department Heads shall inform the County Administrative Officer, or designee, of impending employee retirements in all operating budgets in order to plan accordingly.

 

In the future, any new positions requested by departments, recommended by the County Administration Office, and subsequently approved by the Board of Supervisors during budget hearings will be subject to any meet and confer obligations.  

 

Position Vacancy Budget Policy
To ensure fiscal responsibility and workforce efficiency by managing Full-Time Equivalent (FTE) positions.

• Vacant Unfunded Positions: Any positions that are vacant and not funded shall be eliminated from the Schedule of Authorized Positions. These positions may not be retained for future use or rehiring unless funding is identified, and a request is approved by the Board of Supervisors.
• Vacant Funded Positions: Any positions that are vacant longer than 120 days shall be submitted with a written request to hire for review by the County Administrative Officer. The authorization to fill a vacant position may be approved or denied by the CAO. If denied, the position may be recommended for deletion at the next budget cycle with approval by the Board of Supervisors. Public Safety “Safety” positions are exempt from this requirement.
• In times of financial difficulty, a hiring chill may be authorized by the Board of Supervisors for implementation by the CAO.

 

CAPITAL IMPROVEMENT POLICIES

 

Prioritize and pursue ongoing funding for County Information Technology, network/infrastructure development, operating system applications, cyber-security and maintenance to maximize productivity and personnel cost savings.

 

Identify infrastructure and equipment needs that are related to new development that can be funded through impact fees.

 

In the future, will consider adopting a Capital Reserves policy to address infrastructure needs. RMA staff and departments are encouraged to identify one-time revenues as opportunities to increase the Capital Reserves.

 

RESERVES & CONTINGENCY POLICIES

 

Maintain a General Fund Operating reserve at 15% of the General Fund Operating Budget.

 

Maintain a General Fund Emergency Reserve at 5% of the General Fund Operating Budget.

 

Maintain a General Fund Disaster Recovery Reserve of $500,000.

 

Create a Contingency Plan within the Recommended Budget to address unforeseen expenses or revenue reversals each fiscal year.

 

Retain the Rainy Day Reserve on deposit with Public Agency Retirement Services (PARS) County of San Benito IRC 115 Irrevocable Trust.

 

Review Cycle:
This policy shall be reviewed annually to ensure alignment with operational needs and financial conditions.