Calaveras County CEO recommends budget with $2.7 million gap; board directs changes to TOT, CIP and staffing reviews

Calaveras County administrative staff on Tuesday presented a recommended fiscal year 2025–26 budget that still showed a structural shortfall and prompted the Board of Supervisors to give targeted direction on one-time fund use, transient-occupancy-tax distributions and several capital and staffing questions.

The County Administrative Office’s recommended budget counts a $4.66 million structural deficit after department reductions, and proposes closing most of the gap with one-time sources: $1,545,000 from the county’s PARS investment account and a proposed $500,000 transfer from transient-occupancy-tax (TOT) contingencies. That approach reduces the immediate shortfall to about $2.7 million, the administrator said, and leaves the county with an estimated $4.5 million in ending general-fund equity carried into the new fiscal year.

Why it matters: the general fund remains tight. Admin used a conservative forecasting approach and asked the board to accept a working recommended budget to carry the county through July until public hearings and final adoption in September. The budget keeps general-fund contingency at roughly $1.8 million (about 2% by policy) and a reserve of $5.7 million (about 8% by policy), but staff warned that relying on one-time transfers and declining revenues would make it harder to preserve capital maintenance and future borrowing capacity.

Most-important facts - Total county-wide revenue in the recommended budget is presented at about $262 million, with operating transfers in and restricted state/federal funds making up a large share of that figure. General-fund discretionary revenue is estimated at roughly $43 million. - The recommended general-fund budget shows $73.2 million in total general-fund revenue and $78.2 million in general-fund expenditures, with the net cost borne mainly by public safety (about 54% of discretionary uses). - Staff identified ongoing savings of about $3.2 million from department reductions and asked the board to approve the use of roughly $2.05 million in one-time funds to close the FY25–26 gap.

What the board did and directed - TOT (transient-occupancy tax): the board asked for and approved a change to the recommended TOT allocations that reduces the Visitors Bureau allocation by $50,000 and adds a $50,000 allocation to the Calaveras Chamber of Commerce. The board left the remainder of the recommended TOT distribution in place for now; supervisors said they expect to revisit allocations when actual TOT receipts are known. - Mountain Ranch Park sewer: staff reported an unexpected site condition that raised the estimated repair cost. The board directed staff to budget $20,000 in County Capital for an initial procurement step, obtain bids, and return to the board if bids exceed that amount rather than authorizing a larger appropriation immediately. - Economic and community development division: staff had recommended deleting the Economic Development Division (and its manager). Several supervisors said they value the service and asked staff to pursue options — including grant offsets, regional cost-sharing, and other revenue — and return to the board on June 24 with candidate funding paths. The board did not finalize a removal on Tuesday. - Other directions: staff was asked to continue exploring special-district cost-recovery models, review leases and contracts for better returns, and return recommended departmental restructures or shared-service options prior to any implementation.

Comments from officials and departments - Denise Huebner, deputy CAO, presented the recommended budget and repeatedly cautioned that the county’s reliance on one-time funds and transfers reduces flexibility for maintenance and capital work next year. She noted county capital transfers would be minimal, placing pressure on building and IT maintenance. - CEO Therese Hitchcock described the cycle as “very challenging,” urged continued focus on the capital fund to preserve maintenance and future financing options, and asked the board for direction on external allocations and potential department reorganizations. - Sheriff DeBasilio urged the board to consider public-safety consequences of deeper cuts. He said his office has already taken multi-year reductions and staffing concessions and warned that further cuts would reduce training, overtime and community-policing activities; he said he would not reduce emergency response to critical incidents. - The district attorney’s office asked the board to note one open attorney position will likely require refilling midyear and warned that operating without attorneys would cause significant service impacts. - Cathy Gallino, director of Economic and Community Development, outlined grant wins and regional work her office has led and said several grants in process offset parts of her program; she asked the board to weigh the division’s regional grant leverage against near-term general-fund pressure.

Budget mechanics and next steps The county follows the two-step budget process under the County Budget Act: adopt a recommended budget to operate from July 1, hold public hearings and then adopt a final budget in September. Staff recommended that the board approve the recommended budget as a working document and asked for direction on TOT allocations and whether the board wants staff to pursue reorganizations, special-district cost-recovery and lease reviews prior to the September hearings. Staff will return on the board’s June 24 meeting and again at the September hearings with updated revenue estimates and any requested changes.

Ending note Board members emphasized the temporary nature of the June recommended budget and said the county will re-evaluate after actual revenue and the state budget outlook are clearer in September. Supervisors urged staff to prioritize public safety and capital maintenance while seeking revenue and efficiency alternatives.