Low public turnout for EDC budget presentation

MEYERS and SOUTH LAKE TAHOE, Calif. - The El Dorado County Chief Administrative Officer (CAO) Don Ashton has been making the rounds to communities throughout the county, explaining the budget through an informative presentation and discussion.

Most of the communities Ashton has visited have had 15-20 citizens in attendance, all asking questions and giving input in the budget process as Ashton and the Supervisors figure out how to save $20M over the next four years to meet CalPers pension liabilities.

For illustration purposes, Ashton designed a scenario in which the County was $3M short and challenged those attending to try to “find the money” to bridge the gap.

Since many locals take to social media with complaints of government hiding money, too many taxes, and enough funds for the county to run, many more citizens were expected to attend the meeting Wednesday evening, but that turned out to not be true.

Besides Ashton, Supervisor Sue Novasel and two County staff members, at the meeting were two members of the media, three people from Lake Valley Fire and one former City Councilmember. That's it.

The primary message of the night what to show on paper that it is not possible to be small and rural, with low taxes and high levels of service. Ambulance, senior, veteran and animal services are provided by the County along with libraries, the Sheriff's Office, Community Hubs and Probation.

Money comes into the budget of the County from both federal and state allocations, property tax, sales tax, fees/licenses/permits and transient occupancy tax (of this list only the allocations don't make up the General Fund which was $152M this year). Transit occupancy tax (TOT) makes up three percent of the budget, the largest revenue comes from property tax.

Sales tax in El Dorado County is 7.25 percent, the lowest rate for counties in the state and equal to the rate as some cities, all the lowest in the state. The highest sales tax in the state is 10 percent which is the tax rate in several cities in Los Angeles County. The City of South Lake Tahoe's rate is 7.75 percent as is Folsom, the closest city to the west of the county.

If El Dorado County were to present a .5 percent increase in their sales tax ratet to the voters, the budget would have an estimated $6M gain. A general fund tax increase can pass by a simple majority, but a special tax (where funds going into a certain account like roads) has to pass by a two-thirds vote.

Property Tax

Schools, including K-12, community colleges and the Office of Education get 38.8 percent of every dollar earned through property taxes. 23.5 percent goes to the county, cities 2.4 percent, special districts 24.3 percent, South Tahoe Redevelopment Successor Agency 1.8 percent and In Lieu fees 9 percent.

Sales Tax

The state gets the largest percentage of sales tax, 3.9375 percent of the 7.25 percent, followed by 1.0625 percent Local Revenue Fund (to the state), 1 percent to the county (or city) operations, .5 percent to each the state's Local Revenue Fund 1991 realignment and Local Public Safety Fund and .25 percent to County transportation funds.

With changes in the way the prison system works, counties are picking up more of the bill and housing prisoners in their own jails instead of being sent to state prisons. County jails used to house prisoners up to a year, now it isn't unusual to see them locally housed, even the most dangerous and mentally ill prisoners, for 10-12 years. El Dorado County pays the state $250K per patient for the severely mentally ill patients to be housing by the state.

Transient Occupancy Tax (TOT)

The Charter requires 49 percent of TOT collected to go into the General Fund and 51 percent into Tourism and Economic Development. The current TOT rate in El Dorado County is 10 percent, South Lake Tahoe is 12-14 percent. The county currently collects about $3.4M a year in TOT and about 65 percent comes from the South Shore. Supervisors are currently discussing a possible increase of two percent which has to be approved by the voters. That extra two percent would generate about $750K.

Campgrounds in the County do not charge TOT as they do in South Lake Tahoe. There has been resistance from campground operators to charge the tax.

Who Gets the Money

The County General Fund is approximately $130M a year. That is broken up to Law and Justice 58%, or $74M; General Government 26 percent, or $34M, Health and Human Services 12%, or $16M; and Land Use 4%, or $5M.

The person in charge of the largest budget is the sheriff, who is elected. Due to the county being a Charter County, he can spend his money as he sees fit. Besides the sheriff's portion from the budget he also uses funds received from asset forfeitures and rural county monies. The rest of the Law and Justice budget goes to Probation, 16 percent or $12M; District Attorney, 9 percent of $7M; and Indigent Defense (defense attorneys), 7 percent, or $5M.

Health and Human Services receives 40 percent, or $6.3M, with senior programs receiving the biggest piece of the pie; $39M goes to public health including animal control and jail medical needs. Mental health funds come from the state.

The $4.95M for Land Use and Development Services budget goes to Planning, Building and Code Enforcement (50 percent - $2.5M) 30 percent; $1.5M to the Surveyor which uses most of their budget for GIS mapping; 11 percent ($544,500) to the Ag Commission who certifies water and gas meters and is mandated by the state; and the last 9 percent goes to transportation and the fleet ($455,5000).

General Government expenses get $33.8M and this goes to Parks, Economic Development, the Treasurer, Central Fiscal and Administration, Board of Supervisor staff salaries, Information Technology, the Assessor's Office, County Counsel and Human Resources.

The General Fund covers 17 other areas: ACO facilities, Miwok Indians Health (they get back some of the $9M they pay into the County each year), ERP/FENIX, Airports, Property Tax System, HCED, Veterans Committee, Jail/Juvenile Hall Medical, California Children Services, Community Services, Health Realignment Match, UCEE< EDWPA, TRPA, LAFCO and CSAC/NACO.

Challenges and Options

The State continues to shift the high cost, legally mandated programs to the County according to Ashton. This includes mental health services, prison realignment, IHSS (In-Home Supportive Services).

There is a failing infrastructure in the County, including roads, building and IT), and coupled with CalPERS increases, where the money is going to come from is a challenge.

Ashton and Novasel said there are two options: increase revenue or decrease spending and services.

The Board of Supervisors will start the budget discussion in April with a vote in June, and a final Budget approved in September. With so many areas struggling with the funds they do receive, Ashton said there are some tough decisions ahead.