REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE FOLLOWING:
SAN BERNARDINO COUNTY
BOARD GOVERNED COUNTY SERVICE AREAS
SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT
AND RECORD OF ACTION
REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF THE FOLLOWING:
BIG BEAR VALLEY RECREATION AND PARK DISTRICT
BLOOMINGTON RECREATION AND PARK DISTRICT
IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY
INLAND COUNTIES EMERGENCY MEDICAL AGENCY
SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
January 24, 2023
FROM
LEONARD X. HERNANDEZ, Chief Executive Officer, County Administrative Office
SUBJECT
Title
2022-23 Mid-Year Budget Report and Personnel Actions
End
RECOMMENDATION(S)
Recommendation
1. Acting as the governing body of San Bernardino County, Board Governed County Service Areas, San Bernardino County Flood Control District, Big Bear Valley Recreation and Park District, Bloomington Recreation and Park District, In-Home Support Services Public Authority, Inland Counties Emergency Medical Agency, and the San Bernardino County Fire Protection District:
a. Accept the 2022-23 Mid-Year Budget Report (Report).
2. Acting as the governing body of San Bernardino County, Board Governed County Service Areas, San Bernardino County Flood Control District, Big Bear Valley Recreation and Park District, Bloomington Recreation and Park District, In-Home Support Services Public Authority, Inland Counties Emergency Medical Agency, and the San Bernardino County Fire Protection District:
a. Approve the budget adjustments as listed in the Report and authorize the Auditor-Controller/Treasurer/Tax Collector to post appropriation, revenue, reserves, and use of net position as detailed in the Mid-Year Report List of Adjustments section of the Report, allowing for minor technical changes limited to available budget within the budget unit (Four votes required).
3. Acting as the governing body of San Bernardino County, Board Governed County Service Areas, San Bernardino County Flood Control District, Big Bear Valley Recreation and Park District, Inland Counties Emergency Medical Agency, and the San Bernardino County Fire Protection District:
a. Authorize the purchase of previously unbudgeted fixed assets, as detailed under the Fixed Asset Detail Recommended Adjustments section of the Report.
4. Acting as the governing body of San Bernardino County, Board Governed County Service Areas, San Bernardino County Flood Control District, Big Bear Valley Recreation and Park District, Inland Counties Emergency Medical Agency, and the San Bernardino County Fire Protection District:
a. Approve the 2022-23 budgeted staffing changes as listed in the Budgeted Staffing and Personnel Actions section of the Report.
b. Approve the following classification actions described in the Budgeted Staffing section of the Report:
i. Reclassify positions (Attachment A).
ii. Add new positions (Attachment A).
iii. Transfer positions (Attachment A).
iv. Delete positions (Attachment A).
v. Establish the classifications and salaries for the new classifications (Attachment A).
vi. Approve indicated Equity Adjustments for existing classifications (Attachment A).
vii. Approve indicated Technical Title Changes for existing classifications (Attachment A).
viii. Approve indicated Bargaining Unit/Group Changes for existing classifications (Attachment A).
ix. Approve deleted classifications (Attachment A).
x. Direct the Clerk of the Board of Supervisors to amend the County Conflict of Interest Code List of Designated Employees to include the new classifications as detailed on Attachment A.
5. Acting as the governing body of San Bernardino County approve the following recommendations to amend Ordinance No. 1904 by deleting one position, adding six new positions into the Unclassified Service and reclassifying multiple positions in the Unclassified Service:
a. Consider proposed ordinance related to Ordinance No. 1904.
i. Deleting the following position number from the Unclassified Service of the County:
1. ARC Public and Legislative Affairs Officer position (Position No. 051189)
ii. Adding the following position numbers to the Unclassified Service of the County:
1. Peer & Family Advocate position (Position Nos. 55363 and 83367)
2. Chief Engineering Geologist position (Position No. 08308)
3. Assistant District Attorney position (Position No. 89391)
4. Assistant Director of Human Resources position (Position No. 56398)
5. Deputy Director, Human Resources Administrative Services position (Position No. 55766)
iii. Reclassifying the following position numbers within the Unclassified Service of the County:
1. Peer & Family Advocate position (Position Nos. 82858, 82860, 82862, 88636, 82656, 82657, 82660, 82661, 82863, 82864, 82865, 82866, 86752, 86753, 87736, 88622, 88740, 88958, 89884)
2. County Labor Relations Chief position (Position No. 89969)
b. Make alterations, if necessary to proposed ordinance.
c. Approve introduction of proposed ordinance.
i. An ordinance of San Bernardino County, State of California, to amend Ordinance No. 1904 relating to classified and unclassified service.
d. SCHEDULE ORDINANCE FOR FINAL ADOPTION ON TUESDAY, FEBRUARY 7, 2023, on the Consent Calendar.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
The Report includes increases to total Sources of $188.9 million, increases to total Requirements of $269.8 million, and a net use of $80.9 million in Contingencies/Reserves/Net Position, which are reflected in the table below.
For the San Bernardino County General Fund portion of the requested changes, adjustments include $138.5 million in increased Sources, $181.9 million in increased Requirements, and a net use of $43.4 million in General Fund Contingencies and Reserves. This includes a net use of General Fund Reserves of $842,008 and a use of General Fund Contingencies of $42.6 million, as detailed later in this document.
The mid-year report also includes a decrease to Contingencies of $5.2 million which is a correcting adjustment to properly reflect the use of Contingencies approved by the Board of Supervisors on October 25, 2022 (Item No. 84). As this decrease does not reflect a new use of general fund Contingencies, it has been excluded from the above tables for presentation purposes.
BACKGROUND INFORMATION
The Chief Executive Officer (CEO) is responsible for the preparation and administration of the County budget. Subsequent to adoption of the County Budget, adjustments are made via recommended adjustments, which are submitted by County Departments and consolidated into a comprehensive report by Finance and Administration. Budget reports are generated to provide the Board of Supervisors / Board of Directors (Board) with the most current information on County revenues (Sources) and appropriation (Requirements) on which to base decisions. Additionally, the Report includes countywide performance measure updates.
As the Board considers the recommendations included in the Mid-Year report, the County Administrative Office continues to plan for the coming fiscal year and will continue to implement a budget schedule which delivers Early Board Engagement, Frequent Financial Updates, and a Focus on Programs and Services.
To continue these goals, the County Administrative Office has prepared the attached presentation (Attachment B) that will kick-off the 2023-24 Budget cycle and preview how the County Administrative Office will facilitate development of the 2023-24 budget.
Change in Available Discretionary General Funding
As a result of operations in fiscal year 2021-22, the General Fund - Fund Balance came in $190.2 million higher than estimated in the 2022-23 Recommended Budget. This was primarily the result of discretionary revenue being $84.0 million higher than budgeted, and departmental savings being $60.5 million higher than expected. In addition, the 2021-22 estimated General Fund - Fund Balance included an anticipated use of contingencies for the General Fund portion of costs for the COVID-19 Vaccine Incentive, and encumbrances which did not materialize by June 30, 2022. As a result, the funding became part of the available fund balance for the General Fund in 2022-23.
This additional funding is placed in contingencies and is not allocated for any specific purpose until Board direction is given. Recommendations for uses of General Fund contingencies are found in the Discretionary General Funding section of this item.
Overview of adjustments included in the Mid-Year Budget Report
Several factors contribute to the need for departments to request budget adjustments throughout the fiscal year. As an administrative arm of the State, the County is frequently required to make programmatic adjustments in order to maintain compliance with applicable federal and state law. Additionally, the County is continually seeking ways to use its own discretionary sources of funding to maximize services to the public, which often requires the implementation of projects and programs outside of the normal budget process. Furthermore, the County receives notification throughout the year of additional funds made available from grants for a variety of County projects and programs. Finally, unforeseen costs sometimes arise that require immediate attention that cannot wait for the budget cycle.
These factors have resulted in requested budget adjustments totaling a $188.9 million increase to total Sources, increase to total Requirements of $269.8 million, and a net use of $80.9 million in Contingencies/Reserves/Net Position. Also included is a decrease in Contingencies of $5.2 million, which is a correcting adjustment as part of the actions approved by the Board of Supervisors on October 25, 2022 (Item No. 84).
The Mid-Year Budget Report also includes a net increase of 338 positions, of which 92 positions were added subsequent to the 2022-23 Adopted Budget via stand-alone board agenda items. Staffing changes by entity are summarized in the table below.
Summary of Budgeted Staffing Changes