El Dorado County staff report midyear budget shows modest revenue gains and tight reserves

Emma Owens, principal management analyst in the county chief administrative officer’s office, gave the Board of Supervisors a midyear look at FY25–26 finances, telling the board the county currently projects it will not need to draw on the $8,150,000 budgeted contingency and that department salary‑and‑benefit savings are running about $3,200,000.

The presentation emphasized that some funds are one‑time carryover items — about $2.6 million primarily for grant matches and capital projects — and that the county is projecting roughly $1.9 million in excess general revenues this year, driven by supplemental or unsecured property tax receipts, garbage franchise fees and collection fees. Owens said the federal appropriations bill clarified Payment in Lieu of Taxes (PILT) funding and “we’re projecting 250,000 more in PILT revenue,” noting the total PILT estimate is about $944,000 for the year.

The midyear report also flagged near‑term pressures: rising utility and health‑insurance costs and higher contracted services, as well as state and federal policy changes that make multi‑year forecasting more uncertain. Owens said the CAO’s office is conservatively projecting department savings while planning for next year’s budget, will return to the board April 28 with additional budget balancing information, and that the formal budget hearing is scheduled for June 9.

Supervisors used the discussion to press staff for clarity on which funds are truly available for one‑time allocations versus amounts already committed to meeting policy reserves. Chair (identified in the record only by role) and several supervisors asked whether the $2 million in excess revenue could be used to restore some cuts to nonprofit programs; staff said the projected fund balance will be relied on to meet reserve and contingency policy goals and that staff would present trade‑offs in April.

No formal action was taken beyond receiving the report; staff said they will return with refined assumptions and options for any discretionary restorations or reallocations.