Proposed Yuba County budget axes economic development coordinator

June 20--A Yuba County budget in which increased revenues don't cover higher costs for employee benefits and a high-profile job is eliminated will go before the Board of Supervisors next week.

The proposed $168.2-million 2015-16 budget calls for using $364,000 in one-time funds to help cover rising employee health insurance and pension costs. Normally, one-time revenues are used to boost reserves or to help with capital projects.

"It is the costs of doing business that are extremely challenging for us," County Administrator Robert Bendorf said.

The spending plan also proposes eliminating the economic development coordinator position of John Fleming, who has held that job since 1999. The move is expected to save the county about $140,000 a year.

"John has been a valuable and loyal employee that has done a great job in the county's economic development," Bendorf said. "It's a very difficult decision to make."

Instead of having its own full-time economic development coordinator, Bendorf said, the county would rely on the Yuba-Sutter Economic Development Corporation. The move would leave only Yuba City among area entities with a full-time position dedicated to promoting economic development.

"We will still be very active in our economic development activity," Bendorf said. "We will be looking at enhancing the activity with a different approach."

Assuming the board approves the proposed budget, Fleming would leave the county in mid-August. His position, along with a clerical employee in the Probation Department, are the only layoffs projected in the budget.

Supervisors on Tuesday will receive the budget that proposes a $26.2-million general fund, which is that portion of the spending over which the board has control. That is an increase from $25.2 million last year.

"But the increases in revenues are not meeting the costs of business," Bendorf said.

Workshops on the proposed budget will be held in mid-August, and final hearings on the spending plan will be in September before final adoption.

Bendorf referred to projected county health insurance and pension costs of $10.3 million and $9.6 million this year, respectively. Health insurance costs are projected in the budget to increase 5 percent, while combined increases in health insurance, salaries and pensions will cost Yuba County an additional $1.8 million.

"We will be taking some time to examine if we want to go with another (health insurance) provider or even if want to become self-insured," Bendorf said.

The budget provides very little restoration of a workforce that has dropped from 1,009 in 2008-09 to a proposed 914 in 2015-16. That includes state-mandated positions in human services jobs.

"It's hard to restore positions when we are paying for these (health insurance and pension) increases," Bendorf said.

However, the budget does propose to add two new positions in the Sheriff's Department, which, combined with two others filled during the past year, brings to 18 the number of unfilled law enforcement vacancies.

It also includes costs for a full year of two code enforcement officers hired earlier to enforce the county's new, stricter medical marijuana cultivation ordinance. That $200,000 cost comes from a special code enforcement fund made up of revenue from enforcement penalties.

Yuba County is also facing a reduction in gas tax funds -- used for county road repairs and local matches on transportation grants -- from $1.3 million in 2014-15 to a projected $607,222 for the coming year. That mostly is the result of a change in the way the state Board of Equalization allocates gas tax revenues to government entities.

CONTACT Eric Vodden at 749-4769.

By the numbers

General fund

The general fund includes those monies over which the Board of Supervisors has direct control. Funding levels in recent years are:

--2008-09: $29.6 million

--2009-10: $26 million

--2010-11: $25.8 million

--2011-12: $25.6 million

--2012-13: $24.6 million

--2013-14: $24.7 million

--2014-15: $25.2 million

--2015-16: $26.2 million

Spending

--Public Protection: $18.9 million

--General Government: $7.4 million

--Land use (county parks, etc.): $387,863

--Health Services (mostly state, federally funded): $289,608

--Social Services (mostly state, federally funded): $247,159

--Contingencies: $519,272

--Pensions: $9.6 million

--Health Benefits: $10.3 million General Fund Revenue Sources

(2015-16 is projected)

2014-15 2015-16

--Secured property tax $9.8 million $10.1 million

--Supplemental property tax $100,000 $150,000

--Motor vehicle in lieu $7.2 million $7.8 million

--Sales Tax $2.2 million $2.4 million

--Franchise Fees $1.1 million $1.2 million

-- Eric Vodden General Fund Revenue Sources

(2015-16 is projected)

2014-15 2015-16

--Secured property tax $9.8 million $10.1 million

--Supplemental property tax $100,000 $150,000

--Motor vehicle in lieu $7.2 million $7.8 million

--Sales Tax $2.2 million $2.4 million

--Franchise Fees $1.1 million $1.2 million

-- Eric Vodden

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