Budget Policy

The purpose of these policies is to guide staff in the development of 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.

Direct departments to maintain the currently authorized FY 23/24 FTE’s. CAO's office will provide each department their salary projections that include step increases, employer paid benefits, and known salary rate increases due to MOU agreements.

Consider increases to FY 23/24 authorized FTE levels with new or increased non-general fund all-purpose revenue funding sources, or on a case by case basis utilizing General Fund sources.

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

Analyze the impact to the General Fund’s ongoing OPEB costs and evaluate the Actuarial Determined Contribution payments.

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

HUMAN RESOURCES AND PERSONNEL POLICIES

Recognize possible/estimated salary savings due to normal employee vacancies in all General Fund operating budgets (Vacancy Budgeting). Each quarter, lost employment salaries and benefits due to vacancies will be deducted from a department’s budget. This still leaves remaining quarter’s budget in effect. If a department has a budget constraint issue as a result of this deduction, additional review of the department budget will be

considered.

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

Department Heads need to inform the County Administrative Officer of impending employee retirements in all operating budgets in order to budget accordingly.

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 prior to recruitment.

CAPITAL IMPROVEMENT POLICIES

Prioritize and pursue ongoing funding for County Information Technology, network/infrastructure development, operating system applications, cyber-security and maintenance as a means 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.

Adopt a Capital Reserve to address infrastructure needs. Identify one-time revenues as opportunities to increase the Reserve.

RESERVES & CONTINGENCY POLICIES

A Formal reserve policy resolution will be brought to the Board of Supervisors during the Budget Hearings. The resolution will establish a 15% Operating Reserve and a 5% Emergency Reserve. The reserve will be implemented through a 3 year gradual approach. The first year will establish a 5% Operating Reserve and a 2.5% Emergency Reserve. The second year will establish a 10% Operating Reserve and a 5% Emergency Reserve, and then the final year will set up the Operating reserve at 15% and the Emergency Reserve at 5%.

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 PARS County of San Benito IRC 115 Irrevocable Trust.

Adopt a Disaster Recovery Reserve of $1,000,000.