Interim budget has supes counting CARBs
Millions needed for clean air compliant vehicles.
The Mono County Board of Supervisors passed a resolution to adopt an interim budget for Fiscal Year 2014-2015 at their regular meeting in Mammoth Lakes on Tuesday, June 17. Since the Fiscal Year begins July 1, the Board adopted this interim budget until the budget review process is completed later this summer and an official budget is adopted.
Budget workshops throughout the week offered “an opportunity to enhance budget understanding in advance of several ongoing issues,” said presenter CAO Jim Leddy.
The expense of county vehicles was a common concern for department heads during the workshops. With $21 million needed over the next 10 years to comply with the state mandates for the California Air Resource Board (CARB) Clean Air Compliant vehicles, the Board is looking for ways to cut vehicle costs. The County has 164 vehicles, not including heavy equipment.
Leddy recommended $300,000 in 2014-15 to go towards CARB compliance of vehicles.
“I just think we have too many cars,” Supervisor Johnston said. “There is a potential here to eliminate a lot of cars and keep people working. There will be more discussion about this.”
Leddy said there have been no new purchases of vehicles in 13-14 and “The total cost of maintenance and fuel for all county vehicles in that same year was 2.2 percent of the entire budget, or $1.37 million. These costs are for all vehicles, from heavy equipment (trucks and snow plows) to vehicles used by staff to deliver services.”
Also in his presentation, Leddy communicated what the proposed budget does not address. First, the recommended budget does not replenish County reserves quickly. The County reserves are at a policy minimum of $1.8 million as opposed to almost $6 million in 2008. Although the Board was able to add $737,000 to the reserves during their mid-year budget review in February, Leddy said that “one unexpected event could surpass our ability to respond.” He did propose $65,000 of next year’s budget to go towards rebuilding the reserves.
Stacy Corless, recently elected District 5 Supervisor, was at the Budget Workshops this week. Corless will not take her seat until January, but had some thoughts about the Budget Workshop. “The County doesn’t have the resources to replenish reserves on the downside,” she said, “but the upside is that they are balancing the budget without dipping into the reserves so much. You have to look at the longer view.”
Secondly, the recommended budget does not provide any resources for employee compensation increases. The county has fewer full time employees than it has in over 12 years, with approximately 280 employees. The CAO estimates that even simply meeting a 1 percent cost of living adjustment increase could cost the County $225,000 a year if given to all employees, but there is no timeline to implement this. “Our staff capacity is really at a bare bones minimum,” Leddy said in his report.
Leddy acknowledged the input from County employees and the public through the Budget Town Hall Process that occurred in several different communities over the last two months. He estimated 100 people, including employees, attended these meetings.
This Town Hall process is part of a larger policy by the County for greater transparency and accountability. Corless called this “a huge step in the right direction.”
Leddy added that the Town Hall format “increased public understanding and feedback [and] helped shape where scarce County investments are being allocated. As it did last year, the comments received from the public meetings helped in the development of individual budgets.”
The recommended budget also does no dedicate resources for larger technology, road or other infrastructure investments, but it does maintain a commitment of $500,000 to fund local roads. And the budget does not provide any funds for upgrades on County facilities.
Corless noticed the large increase in the Sheriff’s Department’s budget, which exceeded the CAO’s recommendation. The Sheriff requested $50,000 for ammunition while the CAO recommended $25,000 and almost $260,000 for overtime as opposed to $150,000. “How is that going to be resolved?” Corless asked.
The District Attorney’s office was the only other department that asked for more than was recommended by Leddy and Finance Director Leslie Chapman. The Board will deliberate on these issues before making a final decision.
Property taxes generate 30 percent of the Mono County General Fund revenues, and the property tax roll shows the first increase in the last six years as of June 2. However, Leddy’s report said, “there will be a delay between improved real estate values and county reserves.”
“Mono County’s real estate market depends on people who purchase second (vacation) homes. As southern California recovers, investors will start to have the resources to purchase here again and stimulate our local real estate market,” he said. “The impact of a growing real estate market takes roughly 18-24 months for increasing property values to create new revenues for local governments.”
The Board of Supervisors will conduct formal Budget Hearings later this summer and adopt a budget before the October 1 deadline. There are still some difficult questions left unanswered, but the county is also in the process of strategic planning in order to “hone in on the best uses of tax dollars which maximize the quality of life for residents and visitors of Mono County,” Leddy said. “We are moving toward being an organization focused on long term strategic initiatives rather than reacting to the crisis of the moment.”
