1. FY 2016-17 Budget: Calendar Policies 2020 Strategic Plan
Napa County Executive Office
FY Budget:
Calendar
Policies
2020 Strategic Plan
(Introduction)
Leanne Link, Assistant County Executive Officer
Presented to Board on January 5, 2016

2. Napa County Budget Process
January 5 – FY Budget Policies and Budget Calendar; 2020 Strategic Financial Plan
February 9 – Performance Measures Report
March 22 – FY Mid-Year Review
April 19 – FY Budget Study Session
June 7 – FY Third Quarter Review
June 13, 14 – FY Budget Hearings
June 21 – FY Budget Adoption

3. Napa County Key Budget Policies
With some exceptions, goal is no increase in Net County Cost
Pursue new revenue to the fullest extent possible
With limited exceptions, no new or enhanced programs unless offset by dedicated revenue
Maintain General Fund Contingency equal to 3% of appropriations

4. Napa County Key Budget Policies
Do not backfill reductions in State or Federal funding
Goal of General Reserves and Fiscal Contingency Designation combined equal to 20% of appropriations
HHS Fund Requirement of 10% Fiscal Contingency
Once other needs met, any additional available discretionary resources to be transferred to Accumulated Capital Outlay (ACO) budget.
Napa County Board of Supervisors

5. Napa County 2020 Strategic Financial Plan
Builds on the Principles from the 2017 Plan
Focuses on the General Fund
Revises Financial Projections through FY
Forecasts Structural Balance
Identifies Challenges
Reiterates Core Philosophy, Guiding Principles & Key Policies
Reprioritizes Short Term Solutions in the Fiscal Contingency Strategy
Makes a minor adjustment to Longer Term Solutions in the Fiscal Contingency Strategy
Napa County Board of Supervisors

6. 2020 Strategic Financial Plan
Fund Balance Resources
Napa County Board of Supervisors
Fund Balance:
FY Actual
FY Actual
FY Actual
General Fund
65,836,347
68,290,852
68,209,516
Tobacco MSA
11,811,133
12,014,883
8,147,042
Special Projects
1,161,705
1,404,135
226,336
Total General Fund
78,809,185
81,709,870
76,582,894
Accumulated Capital Outlay
39,032,972
14,626,106
23,098,834
Total Fund Balance
117,842,157
96,335,976
99,681,728
% of Total GF Expenditures
72.2%
57.2%
52.4%

7. 2020 Strategic Financial Plan
Revenues and Expenditures (adjusted)
Fiscal Year
FY Actual
FY Actual
FY Actual
Revenue
157,654,187
164,021,053
171,872,748
Expenditures
154,232,106
161,332,524
166,041,439
Difference
3,422,081
2,688,529
5,831,309
% Change from Prior Year
-21.4%
116.9%
Excess ERAF is the return of local property taxes to the County after all school funding requirements are met.
Thought some reduction might occur with the Local Control Funding Formula.
As long as property tax growth keeps pace with school funding growth, we should continue to receive EERAF revenue.

8. 2020 Strategic Financial Plan
Baseline Projection
Assumes that revenues and expenditures continue at historic rates. No new or expanded programs.
A C T U A L
P R O J E C T E D
Fiscal Year
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
Surplus/(Deficit)
$3.4 M
$2.7 M
$5.8 M
$2.2 M
$1.6 M
$1.0 M
$1.7 M
$2.4 M

9. 2020 Strategic Financial Plan
Revenue Reduction Scenario
Assumes that overall expenditures increase by 5% from the Baseline Scenario.
A C T U A L
P R O J E C T E D
Fiscal Year
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
Surplus/(Deficit)
$3.4 M
$2.7 M
$5.8 M
($6.3 M)
($7.3 M)
($8.2 M)
($7.8 M)
($7.4 M)

10. 2020 Strategic Financial Plan
Expenditure Increase Scenario
Assumes that overall revenues decline by 5% from the Baseline Scenario.
A C T U A L
P R O J E C T E D
Fiscal Year
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
Surplus/(Deficit)
$3.4 M
$2.7 M
$5.8 M
($6.5 M)
($7.3 M)
($8.2 M)
($7.9 M)
($7.5 M)

11. 2020 Strategic Financial Plan
Revenue Decrease - Expenditure Increase Scenario
Assumes that revenues decrease by 5% and expenditures increase by 5%.
A C T U A L
P R O J E C T E D
Fiscal Year
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
Surplus/(Deficit)
$3.4 M
$2.7 M
$5.8 M
($15.0M)
($16.2M)
($17.4M)
($17.3M)
($17.2M)

12. 2020 Strategic Financial Plan
Revenue Increase Scenario
Assumes that revenues increase by 5% .
A C T U A L
P R O J E C T E D
Fiscal Year
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
Surplus/(Deficit)
$3.4 M
$2.7 M
$5.8 M
$10.8 M
$10.5 M
$10.2 M
$11.2 M
$12.2 M

13. 2020 Strategic Financial Plan
Jail Operations Increase Scenario
Reflects the potential impact of several Jail options:
Operating a new 366 bed jail
Operating a smaller second facility with “split” operations
Operating a smaller booking/holding facility and renting beds from another county
A C T U A L
P R O J E C T E D
Fiscal Year
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
Surplus/(Deficit)
$3.4 M
$2.7 M
$5.8 M
$2.2 M
$0.08 M
($2.0 M)
($2.8 M)
($3.6 M)

14. 2020 Strategic Financial Plan
Strategies:
Resource Allocation
Fiscal Contingency
Revenue Enhancement

15. 2020 Strategic Financial Plan
Resource Allocation Strategy:
Identifies services appropriately funded by General Fund
Identifies services appropriately funded by other resources
Identifies expenditure priorities when additional resources are available

16. 2020 Strategic Financial Plan
Fiscal Contingency Strategy:
Identifies short term solutions
Identifies longer term solutions
Assigns priorities for reductions

17. 2020 Strategic Financial Plan
Fiscal Contingency: Short Term
Major GF office remodels not for critical health/safety needs are deleted
Defer purchase of equipment
Delay implementation of new/expanded programs not offset by dedicated revenue
Defer approval of contracts not revenue offset
Implement a selective hiring freeze

18. 2020 Strategic Financial Plan
Fiscal Contingency: Longer Term
Moratorium on new/expanded programs
Use GF designations (e.g., Fiscal Uncertainty)
Where possible, do not continue unfunded state/federal programs
Reduce GF support moderately to programs
Reduce discretionary programs
Reduce or eliminate GF to Special Projects
Use Tobacco MSA
Major Program Reductions
Eliminate (where possible) Capital Improvements
Increase OPEB amortization to years
Reduced workweek / furloughs

19. 2020 Strategic Financial Plan
Revenue Enhancement Strategy:
Identifies ways to enhance revenue for services
Identifies ways to enhance revenue for capital projects including GO Bond
Adds seeking grant funding for capital projects (Jail)

20. Napa County
Budget Process
Questions?

21. Budget Study Session
Thank you.