Nevada County supervisors signal intent to adopt $415 million proposed budget after hour-long presentation and debate

Erin Metler, Nevada County deputy chief executive officer and chief fiscal officer, told the Board of Supervisors on Tuesday that the county’s proposed fiscal year 2025–26 budget would total roughly $415 million in planned expenditures and rely on about $23.8 million of fund balance to close a revenue–expenditure gap.

Metler framed fiscal stability and core services as the budget’s primary objective while also addressing emergency preparedness, broadband, affordable housing, homelessness, recreation and climate resilience. “Fiscal stability and core services is really the primary objective,” Metler said during the presentation.

The proposal, compiled after departmental work that produced a 700‑page document, shows roughly $391 million in proposed revenue and $415 million in proposed expenditures. Metler said federal, state and intergovernmental revenues make up about 47.6% of total revenue, with much of that concentrated in Health and Human Services (HHSA). Property taxes remain the county’s largest discretionary revenue stream and are projected to grow more slowly than in prior years.

Why it matters: the budget preserves core services while funding several capital projects and new positions, but board members pressed staff for more work on the county’s long‑term pension exposure and asked for clearer narrative language on the pension plan and other items before final adoption.

Key details - Proposed expenditures: about $415 million; proposed revenues: about $391 million; planned use of fund balance: about $23.8 million. Metler said the proposed plan uses fund balance primarily for one‑time projects and capital needs. - Fund balances called out in the presentation included a general fund balance totaling about $43.8 million and an HHSA fund balance of about $46.4 million; staff proposed limited uses of those balances for specified assignments. Metler said general fund assignments include an economic uncertainty reserve and funds for information systems and facilities projects. - Staffing: the proposal includes roughly 24.5 new full‑time equivalent positions spread among elected and appointed offices, community development, information services, and health and human services. Metler described vacancy review procedures to control staffing costs. - Salaries and benefits: Metler said salaries and benefits represent just under 40% of total expenditures; the county’s annual retirement normal cost for active employees is about $44.9 million as shown in the presentation. - Capital and infrastructure: proposed capital assets total about $31.5 million for the year, including $11.1 million in equipment (radio tower infrastructure, electric vehicle charging, heavy equipment and remaining enterprise finance system costs) and about $19.7 million for bridge replacement projects. - Revenues: Metler said the county is heavily dependent on state and federal funding for many services (about 47.6% of revenue) and highlighted recent grant awards in transit, homelessness, and wildfire prevention. - Vacancy savings in the current year were estimated at roughly $8 million, and the county’s overall vacancy rate was described as near 8%.

Board debate and follow‑up requests Several supervisors praised staff work but pressed for specific follow‑ups: - Pension plan: multiple board members pressed for a comprehensive pension liability plan. Metler and staff indicated a pension management policy exists and a comprehensive plan would be returned to the board in the fall for discussion. The meeting record shows the county’s CalPERS funding ratio at about 62.9% (Metler said the county was 62.3% funded the prior year). - Narrative edits: the board instructed staff to amend the executive summary language to better reflect work on the pension plan and other clarifications noted by supervisors. - Contingency and contract language: Metler said staff will include contract language that protects the county if expected grant or state funding does not materialize.

Formal action taken The board made and passed a motion of intent to adopt the proposed budget, with an amendment directing staff to revise the executive‑summary language as discussed and to return the final budget for adoption on the June 24 open‑session agenda. The vote on the motion of intent was recorded in the public minutes as five affirmative votes.

Context and background Metler explained the budget is built under California Government Code section 29000 (the county budget act) and follows Government Finance Officers Association best practices. She said other jurisdictions in California face fiscal pressure from rising liabilities — especially insurance and pension costs — and slower discretionary revenue growth.

Quotes - “Fiscal stability and core services is really the primary objective,” — Erin Metler, Deputy CEO and Chief Fiscal Officer. - “We are being extremely cautious in using our fund balance for one‑time things and not obligating us to ongoing expenses,” — Erin Metler. - “We will bring back an enhanced policy to reflect the policy direction,” — Erin Metler (on pension management work to come).

Ending The board’s motion of intent advances the proposed budget to a final adoption vote scheduled for June 24 in open session. Board members asked staff to return with a pension strategy and amended executive‑summary language before that final adoption vote.