Ventura County’s Fiscal Health Improves

Ventura County government has its healthiest budget in five years, but that doesn’t mean cities should line up for handouts, a top official cautioned Tuesday.

A continuing boom in home sales is pushing the percentage increase in property tax receipts into double digits, and sales tax is not far behind, said County Executive Officer Johnny Johnston. Combined with the state repaying money it owes the county, the general fund will see an estimated 10% revenue increase for the fiscal year that begins July 1, Johnston told the Board of Supervisors.

But Johnston warned that the county’s financial health could quickly deteriorate if it agrees to take over programs now being run by cities.

He singled out Thousand Oaks, where the mayor last week sent a letter to the Board of Supervisors requesting that the county take over $550,000 in programs and services currently paid by the city’s treasury. Mayor Dennis Gillette cited the county’s improving finances in making the request.

Johnston told supervisors that, while the budget is improving, its long-term health requires continued fiscal discipline.

“We are sustainable at a reduced level of services,” Johnston told supervisors. “Unfortunately, that was interpreted by our friends in Thousand Oaks as a message that all is well.”

Thousand Oaks City Manager Scott Mitnick said the City Council was unanimous in requesting funding from the Board of Supervisors. What happens next is up to the county board, Mitnick said.

“I had an initial meeting with Johnny on Friday and we’ll continue to meet,” he said. “For now, the City Council will wait and see how the board reacts.”

The county government’s preliminary budget totals $1.5 billion -- its largest ever. The vast majority of dollars are earmarked for social services and health programs mandated and at least partially financed by the state and federal governments.

Supervisors have discretion over general fund dollars, estimated at $839 million for 2006-07. That’s up 10% from the current year, budget managers said. They are about halfway to their goal of setting aside 15% of the general fund as a buffer against emergencies and one-time expenses.

Johnston is recommending that $4 million be diverted to reserves. The rest of the money will be divided up to pay for county services such as elections, protecting abused children, assessing taxes, running libraries and providing healthcare to the poor.

Public safety programs receive the largest slice of the general fund, about 52%. Health and human services take up much of the balance, with smaller slices going to general government costs.

With so much of the budget essentially locked into place, budget discussions often revolve around appropriate staffing levels for the various departments. Tuesday was no exception, with Assessor Dan Goodwin making a plea for additional employees.

Goodwin told the Board of Supervisors that his staff was overwhelmed answering questions about tax appeals, payment deadlines and the like.

“When you can afford it, please don’t forget the taxpayers,” Goodwin told the board.

Supervisors will make any adjustments to Johnston’s recommendations at hearings scheduled to begin June 12. The board will decide then how much money, if any, it will use to take over services now funded by Thousand Oaks.

Debate during the upcoming budget hearing may also center around the board’s growing reserves. The rainy-day fund amounted to less than 1% of general fund dollars just five years ago.

Now that the reserve is approaching 7%, supervisors may feel pressured to free up money for new programs, Johnston said. The pitch from Thousand Oaks is a good example, he said.

Supervisor John Flynn said that while he was supportive of rebuilding the county’s reserves, more discussion is needed about how much money should be set aside.

“We need to also deal with public dissatisfaction over potholes, roads and other problems,” Flynn said.