Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Budget topic
No spam. Unsubscribe anytime.
Sutter County staff report $14.4 million FY23–24 unassigned fund balance; recommend boosting reserves, pension prefunding and payroll set‑aside
Summary
County staff told the Board of Supervisors the county closed FY23–24 with $14.4 million in unassigned fund balance (versus $5.0 million assumed when the budget was built) and recommended depositing $1.1 million into a pension prefunding account, increasing reserves toward GFOA levels, committing $1.5 million for capital projects and setting aside $2.0 million for potential payroll timing costs. The board asked questions but took no formal vote; staff will return with formal actions.
Sutter County staff reported to the Board of Supervisors that the county closed fiscal year 2023–24 with $14.4 million in unassigned fund balance — substantially more than the $5.0 million the board had assumed when it built the current budget. The CAO’s office said the difference reflects stronger general revenues (including property tax and higher interest income) and several one‑time savings across public safety, departmental operations, health and the trial court fund.
The CAO recommended an immediate $1.1 million deposit to a pension prefunding account held with PARS to honor an earlier budget commitment, increases to the general reserve and budget stabilization reserve to bring totals closer to Government Finance Officers Association (GFOA) recommended levels (staff indicated the combined reserves would approach about $12.5 million), a $1.5 million commitment for future capital projects and a $2.0 million set‑aside to cover potential costs associated with changing payroll timing. Staff said moving the county’s pay date would require negotiation with labor and could delay paychecks by roughly five days; the set‑aside would float any temporary payroll timing costs so operations are not disrupted.
Staff emphasized most of the excess dollars are one‑time in nature and recommended using them to shore up reserves, seed capital projects and address pension and payroll timing risks rather than to expand ongoing services. The CAO’s office said it was not requesting a vote at the study session, only general direction; formal board action will be brought back at a later meeting.
Board members asked for clarification on the county’s reserve policy and the payroll timing proposal. Staff said the current policy had been building reserves over time (historically $5.0 million in the general reserve and $5.0 million in the budget stabilization reserve) and the recommended increases are consistent with GFOA guidance. On the payroll question, staff described the payroll timing change as a modest delay (about five days), warned it would need to be negotiated with unions, and said the $2.0 million would be used only as a temporary float for any upfront costs.
The CAO also reviewed the FY25–26 calendar: staff will publish the CAO recommended budget book (targeted release 2025‑06‑06), present the CAO recommended budget June 10 and bring a tentative budget to the board in late June so county operations can continue July 1. Budget hearings are scheduled for August with final adoption required before October 2.
Next steps: staff will return with a formal recommendation and any required board actions after additional review and follow‑up work. No budget votes were taken at the study session.
