Department: Management and Budget
Department Head/Elected Official: Daniel Ramos
Regular or Supplemental RCA: Regular RCA
Type of Request: Proposals/Bids
Project ID (if applicable):
Vendor/Entity Legal Name (if applicable):
MWDBE Contracted Goal (if applicable): NA
MWDBE Current Participation (if applicable): NA
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
title
Request for approval to seek proposals from third party consultants to develop a five-year financial plan for the County.
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Background and Discussion:
The combination of state-imposed revenue caps (max of 3.5% annual increases on existing properties) and rising costs have eroded the revenue surplus the county has enjoyed for the past decade, greatly increasing the need for proactive, long-term financial planning. The recent period of high inflation raised the cost of most everything the County buys and also necessitates salary increases to maintain a competitive wage that will help employees cope with those higher costs. General Fund health benefits costs alone are expected to increase $26M in FY24 with continued large increases after that. On top of this, many of the county's fees have not been changed in years and may no longer recover the cost to provide those services. The recent Current Level of Service (CLS) projections indicate a FY24 General Fund operating deficit between $20M-$181M depending on the tax rate ultimately adopted for 2023.
The Office of Management and Budget proposes to develop a ten-year financial plan in conjunction with a third-party consultant to help increase transparency and guide future budgetary decisions. The proposed plan includes the following tasks:
Task 1: Identify potential new sources of revenue and update existing fees where appropriate
Task 2: Establish financial targets and project where the county will be relative to those targets over a ten-year period based on the curren...
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