County staff flag preliminary $27 million gap as board sets priorities; board approves Title 3 recommendation

Mendocino County officials told the Board of Supervisors on March 18 that early department submissions for the fiscal year 2025–26 budget show a projected general-fund “ask” of approximately $2,728,000 (presenters described this as $2.728 million but stressed numbers are preliminary) above recurring non‑departmental revenue, and staff estimated a larger budget gap when preliminary salary-and-benefit increases and obligations are included.

The county’s deputy chief executive officer, Tony Raikes, said salary and benefit (the “1,000 series”) estimates rose about 7% in department submissions and noted the 1,000 series accounts for roughly 57% of the general fund. Raikes said that, based on submissions at the time of the presentation, applying that increase to the current budget would move the 1,000‑series total from about $147 million to roughly $157 million.

Why it matters: staff framed the workshop as an early, department-driven set of estimates to guide board priorities and budget conferences. The projected increases in personnel costs plus a long list of deferred facility repairs mean the board will face tradeoffs between public safety, roads, economic development and preserving ongoing services.

Key figures and fiscal pressures - Non‑departmental recurring revenue was estimated at about $95.7 million for 2025–26; after required operating transfers (COPs, earmarks, roads, libraries and other pass‑throughs totaling about $14.4 million), the net recurring revenue available for the general fund was estimated near $81.3 million. - Staff presented a preliminary department “ask” above that revenue of about $2.728 million (preliminary and subject to change during department budget conferences). - Facilities reported 33 prioritized deferred‑maintenance projects. The most urgent 25 projects were estimated at roughly $11.4 million, with a total set of 33 estimated at about $14.4 million (staff noted estimates may be out of date and need revision). - The cannabis program, which previously relied on LJAGP grant funding, is expected to move to departmental fees and the county cannabis tax to cover program costs going forward; staff warned this likely leaves little surplus to allocate to other priorities unless tax rates or receipts change.

Secure Rural Schools title 3 funds Staff reported $200,000 in Secure Rural Schools (title 3) funding is available for county use, with eligible options including search-and-rescue and other emergency services reimbursement, training and equipment for emergency services, developing community wildfire protection plans, Firewise programs, and broadband expansion tied to public safety. The CEO recommended options tied to emergency responders and wildfire planning (options 2, 3 and 4 in staff materials). The board voted to move forward with the recommendation to pursue a title 3 plan and start the required public comment and resource-advisory-committee steps to spend the funds (all votes noted below).

Deferred maintenance and policy work Staff said the county’s updated review of capital needs is informing revisions to county Policy 33 (capital and deferred maintenance funding). Acting assistant CEO Sarah Pierce reported that about 0.68% of the county’s portion of property tax revenue is already identified for accumulated capital outlay; staff said that is only part of a larger solution and that a formal Policy 33 update and funding mechanism proposal will return to the board.

Timeline and next steps Staff outlined department budget conferences beginning the week of March 17 and scheduled additional budget workshops, a proposed budget listening session in Fort Bragg and the final public hearing on the 2025–26 budget in June. Staff repeatedly emphasized the preliminary nature of the numbers and said the county will refine estimates as departments finish submissions.

Votes at a glance - Consent calendar: motion carried unanimously (yes:5). Motion to approve the consent calendar was moved and seconded; the clerk recorded the motion carried unanimously. - Acceptance of presentation by the Department of Social Services (social worker presentation and proclamation): motion carried unanimously (yes:5). Mover: Supervisor Norvell (recorded in the meeting); motion and second recorded. - Direction to staff to proceed with the CEO’s recommended Title 3 (Secure Rural Schools) process and plan development for proposed uses (search-and-rescue, emergency services equipment/training, community wildfire protection planning): motion carried unanimously (yes:5). Motion language recorded as “Move approval with a title 3 recommendation.” - Adoption of amended Community Development Block Grant (CDBG) program‑income application (public hearing on revised application to use program income to expand an economic development/microenterprise assistance program, revised total $407,385.76): motion carried unanimously (yes:5). The board opened the required public hearing, heard staff presentation, and approved submission and execution of required grant documents.

What staff asked of the board Staff requested (a) continued clarification of budget priorities so the team can reduce the preliminary shortfall during budget conferences; (b) authority to begin the public-notice and resource-advisory-committee steps required for title 3 funds if the board wishes to pursue them; (c) direction on policy 33 funding recommendations when staff returns with options; and (d) approval to submit the amended CDBG application and execute documents if the HCD requirements were met.

Sources and context Presentation and remarks by Tony Raikes, deputy CEO; Sarah Pierce, acting assistant CEO; Darcy Antle, chief executive officer; and staff from facilities and the grants unit. All numbers were presented by county staff as preliminary estimates and subject to change during upcoming budget conferences.

Ending The board did not adopt a final budget at the workshop; staff will return with refined numbers after department budget conferences and additional public workshops. The board directed staff to proceed with the title 3 public‑notice process and accepted the CDBG program‑income application revision for submission.