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Sutter County CAO unveils $518 million recommended budget, flags pension and public-safety shortfalls
Summary
County CAO and staff outlined a recommended all-funds spending plan of $518,257,211 and a General Fund appropriation of $80,854,687 for FY 202526#x2013;26, noting a $6.8 million budget gap to close, rising pension UAL costs and public safety funding shortfalls including a roughly $1.3 million gap for policing in the Beat 7/Yuba City annex area.
Sutter County Administrator (CAO) Steve Smith and budget staff presented the CAOrecommended FY 202526#x2013;26 budget to the Board of Supervisors on June 10, highlighting structural fiscal pressures and service-level risks.
The recommended all-funds spending plan totals $518,257,211, an increase of about $40.8 million over the prior year; the recommended General Fund appropriation is $80,854,687. Laura, the budget presenter, summarized the package as "a very large document 872 pages," and added that "We do not spend money that we do not have." The presentation explained how the county faces multiple pressures including a 15.6% overall vacancy rate, critical shortages in behavioral health staffing, and rising pension costs driven by CalPERS investment fluctuations.
Key numbers and issues presented by staff:
- Total recommended appropriation (all funds): $518,257,211. - General Fund recommended appropriations: $80,854,687 (increase of $5.7M vs prior year). - Projected budget gap and structural shortfall to close: approximately $6,800,000; staff outlined closing strategies including use of fund balance and targeted reductions. - County vacancy rate: 15.6% (with some departments above 25%). - Pension unfunded actuarial liability (UAL) increased materially between 2020 and 2023; staff noted the countyhas increased pre-funding options and a PARS account with a target of $1M annual contributions to reduce UAL over time. - Public-safety and rural fire funding: the county identified significant shortfalls for County Service Area F (CSAF) and other rural fire districts; staff estimated the Beat 7 policing costs at about $1.8M with tax sharing covering around $500,000 and the county subsidizing approximately $1.3M.
Staff also described proposed capital and one-time investments (countywide access-control and key-card replacement, an emergency operations center generator replacement, software phases) and noted the recommended use of $1.2M from committed fund balance for capital projects. The recommended budget maintains county reserves of about $12.5M (roughly two months of general fund appropriations) to provide cash flow and a contingency buffer.
Supervisors questioned state and federal risks (including a reported $229,500 penalty billed to the county under state IST rules), the timing and expected revenue from CalAIM Justice-Involved billing protocols, and options to close public safety gaps (parcel tax, future countywide measures or intergovernmental negotiations with Yuba City and Live Oak). Staff said additional hearings are scheduled and the board will consider tentative adoption on June 24 and final budget adoption in September ahead of the statutory October 2 deadline.
Next steps: tentative approval and continued deliberation at public budget hearings scheduled in August, with a final adoption process in September/October as required by statute.
