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DATE: |
December 9, 2025 |
24 |
SUBJECT
Title
FISCAL YEAR 2025-26 FIRST QUARTER OPERATIONAL PLAN STATUS REPORT AND BUDGET ADJUSTMENTS (DISTRICTS: ALL)
Body
OVERVIEW
This report summarizes the status of the County’s Fiscal Year 2025-26 Adopted Operational Plan, as measured by projected year-end fund balance from current year operations. The projected year-end balance for the General Fund is negative $19.2 million (or -0.2% of the General Fund budget), driven by projections in the Public Safety Group that are being reviewed for solutions. The projected balance for all other funds combined is $11.9 million (0.4% of the other funds combined budget). For all budgetary funds combined, the projected balance is negative $7.3 million (or -0.1% of the overall budget). The projected fund balance anticipates an overall positive expenditure variance and an overall negative revenue variance from the Fiscal Year 2025-26 Amended Budget. The projection assumes General Purpose Revenue will perform slightly better than estimated, and business groups will produce operating balances, except for Public Safety Group. Staff are developing strategies to resolve the projected negative variance. Once potential strategies are identified, those will be brought forward to the Board of Supervisors in future quarterly updates.
Transfers and revisions to the amended budget can be made by formal action of the Board of Supervisors in accordance with the California County Budget Act, Government Code Section 29125. Increases to the overall budget require 4 votes. Transfers of appropriations between departments within the same budgetary fund that do not increase the overall budget, or the cancellation of appropriations require a majority vote. Transfers of appropriations to facilitate transfers between budgetary funds require 4 votes even if the overall budget is not increased.
In the Public Safety Group (PSG), recommendations include appropriation adjustments to remove triple bunks from all detention facilities to address an inspection finding by the Board of State and Community Corrections, support efforts for the Opioid Enforcement Program to help fight the fentanyl overdose epidemic, and for debt service payment for the Hall of Justice.
In the Land Use and Environment Group (LUEG), recommendations include appropriation adjustments for security and landscaping services, for grant funds received for the Hazardous Materials Business Plan and Disaster efforts, to fund the Calavo Park capital project, and to fund repairs at Don Dussault Park.
In the Finance and General Government Group (FGG), recommendations include appropriation adjustments for one-time expenses, for the November 2025 Special Election, for the Children’s Crisis Residential Care Facility capital project, and for returned grant funds from the Community Enhancement Program and Neighborhood Reinvestment Program to be allocated to new projects.
Today’s recommendations seek authority to establish and transfer appropriations in order to ensure efficient use of County resources and to maintain a structurally balanced budget. Several recommendations transfer appropriation capacity from within the Health and Human Services Agency (HHSA) based on operational savings that are intended to be funding swaps from one County department to others for various purposes with no impact to services.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Accept the Fiscal Year 2025-26 First Quarter Report on projected year-end results.
Increases to the Overall Budget and/or Transfers Between Budgetary Funds (Recommendations 2 through 14):
2. Increase in the Sheriff’s Office budget by $3,500,000 to remove triple bunks from all detention facilities to address an inspection finding by the Board of State and Community Corrections.
• Establish appropriations of $3,500,000 in the Sheriff’s Office, Services & Supplies, for the removal of triple bunks at Sheriff’s detention facilities in accordance with Board of State and Community Corrections regulations, based on Local Revenue Fund 2011, Community Corrections Subaccount. (4 VOTES)
3. Increase the Sheriff’s Office budget by $500,000 to support efforts for the Opioid Enforcement Program to help fight the fentanyl overdose epidemic. This was a Board priority during Fiscal Years (FY) 2025-27 Change Letter for which Public Safety and the Sheriff’s Office had to identify a funding source.
• Establish appropriations of $500,000 in the Sheriff’s Office, Salaries & Benefits and Services & Supplies for the fentanyl overdose epidemic based on General Purpose Revenue (GPR) made available from the Medicated Assisted Treatment (MAT) program, originally funded with GPR and will now be funded with Opioid Settlement Funds (OSF). (4 VOTES)
4. Increase the Courthouse Construction Special Revenue Fund budget by $184,286 for debt service payment based on available fund balance from the prior year from fines, forfeitures and penalties.
• Establish appropriations of $184,286 in the Courthouse Construction Special Revenue Fund, Operating Transfers Out, for debt service payment based on available prior year Courthouse Construction Fund fund balance; and establish appropriations of $184,286 in Finance Other, Lease Payments Org, Services & Supplies, for the final debt service payment for the Hall of Justice, based on Operating Transfers In from Courthouse Construction Special Revenue Fund. (4 VOTES)
5. Align the budget by $710,000 in the Department of General Services Facilities Management to reflect a transfer from DPW Airport Enterprise Fund, to pay for security and landscaping services.
• Transfer appropriations of $710,000 within DPW Airport Enterprise Fund, Services & Supplies, to Operating Transfer Out; and establish appropriations of $710,000 in the Department of General Services Facilities Management ISF Services & Supplies, for security and landscaping services, based on Operating Transfer In from Airport Enterprise Fund. (4 VOTES)
6. Increase the budget by $39,986 in the Department of Environmental Health and Quality for grant funds received for the Hazardous Materials Business Plan and Disaster efforts.
• Establish appropriations of $39,986 in the Department of Environmental Health and Quality, Services & Supplies, for expenditures related to strengthening the County of San Diego's Hazardous Materials Business Plan information and Disaster Recovery, based on unanticipated revenue from Environmental Public Health and Emergency Response grant funds for the project period of September 1, 2025, through August 31, 2026. (4 VOTES)
7. Cancel appropriation in the Spring Valley In Lieu Fees and establish appropriation in Spring Valley Improvement Fees for Calavo Park capital project.
• Cancel appropriations of $35,000 in Parkland Dedication Ordinance (PLDO) Spring Valley In Lieu Fees; and establish appropriations of $35,000 in PLDO Spring Valley Improvement Impact Fees, Operating Transfer Out, based on available prior year PLDO Spring Valley Improvement Impact Fees Fund fund balance. Funding for Capital Project 1022858 Calavo Park is included in Fiscal Year 2025-26 Operational Plan. (4 VOTES)
8. Increase the budget by $50,000 in the CSA 81 Fallbrook Local Park Fund to fund repairs at Don Dussault Park.
• Establish appropriations of $50,000 in Community Service Area (CSA) 81 Fallbrook Local Park Fund, Services & Supplies, based on available prior year CSA 81 Fallbrook Local Park Fund fund balance to complete an unanticipated maintenance project at Don Dussault Park to replace a damaged electrical pole. (4 VOTES)
9. Increase the Board of Supervisors District offices budget for one-time expenses based on unanticipated over-realized General Purpose Revenue from Property Tax Current Unsecured.
• Establish appropriations of $783,765 in Board of Supervisors, including District 1 ($200,000), District 2 ($61,182), District 3 ($122,583), District 4 ($200,000), and District 5 ($200,000), Services & Supplies, for one-time expenses based on unanticipated over-realized General Purpose Revenue from Property Tax Current Unsecured. (4 VOTES)
10. Increase the Registrar of Voters’ budget by $19,000,000 for the November 2025 Special Election based on unanticipated revenue from Senate Bill 280.
• Establish appropriations of $19,000,000 in the Registrar of Voters, Salaries & Benefits ($10,000,000) and Services & Supplies ($9,000,000) based on unanticipated State revenue from Senate Bill 280: Elections to conduct a special election relating to redistricting. (4 VOTES)
11. Increase Capital Project 1027588, Children’s Crisis Residential Care Facility by $3,408,856 from various funding sources to fully fund the project.
• Establish appropriations of $3,408,856 in the County Health Complex Fund for Capital Project 1027588, Children’s Crisis Residential Care Facility based on Children’s Crisis Continuum Pilot Program funds ($1,687,226), Behavioral Health Continuum Infrastructure Program funds ($871,630) and an Operating Transfer In from the General Fund ($850,000); and cancel appropriations of $850,000 in the Major Maintenance Capital Outlay Fund (MMCOF) for Project 1026221 Polinsky Repairs Phase 2; and transfer appropriations of $850,000 from the Health and Human Services, Operating Transfer Out, to the Contributions to the Capital Outlay Fund, Operating Transfer Out. (4 VOTES)
12. Allow returned grant funds of $18,177 from the Community Enhancement Program to be allocated to new projects by establishing appropriations in the respective grant programs budgets in the current fiscal year.
• Establish appropriations of $18,177 in the Community Enhancement Program budget Org 12900 ($666 for District 1, $7,608 for District 2, $7,425 for District 3, $595 for District 4, and $1,883 for District 5), Contribution to Other Agencies, based on unused portions of prior year allocations so the funds can be allocated to other projects. (4 VOTES)
13. Allow returned grant funds of $58,788 from the Neighborhood Reinvestment Program to be allocated to new projects by establishing appropriations in the respective grant programs budgets in the current fiscal year.
• Establish appropriations of $58,788 in the Neighborhood Reinvestment Program budget ($15,066 for District 1 in Org 15650, $7 for District 2 in Org 15655, $5,527 for District 3 in Org 15660, $33,307 for District 4 in Org 15665, and $4,881 for District 5 in Org 15670) based on unused portions of prior year allocations so the funds can be allocated to other projects. (4 VOTES)
14. This recommendation is a technical adjustment that reclassifies departmental maintenance and capital spending plans based on capitalization thresholds. The result is a net increase of budget in the MMCOF of $3,202,903 which includes a transfer of savings from a Capital Outlay Fund project to a HHSA MMCOF project and reclassification of major maintenance projects which are supported by existing department budgets.
§ Transfer appropriations within departments between Services & Supplies and Operating Transfers Out, as noted in Appendix C, in the net amount of $2,202,903 for major maintenance projects listed in Appendix C that were subsequently reclassified, based on capitalization thresholds, for financial reporting purposes; and establish, transfer and cancel appropriations, as noted in Appendix C for a net increase of $3,202,903 which includes $1,000,000 in bond funding, in the Major Maintenance Capital Outlay Fund and adjust related funding sources as noted to accurately classify major maintenance projects for financial reporting purposes. (4 VOTES)
Transfers Within Budgetary Funds and/or Cancellation of Appropriations (Recommendations 15 through 20):
15. Transfer $2,000,000 from the San Luis Rey River Park Rio Prado Acquisition and Improvement project to the San Luis Rey River Park Acquisition and Improvement at Moosa Active Recreation Node Project to fund an equestrian staging area.
• Transfer appropriations of $2,000,000 within Capital Outlay Fund and related Operating Transfers In from the General Fund, to provide funding for Capital Project 1021895 SLRRP Acquisition and Improvement at Moosa Active Recreation Node, based on the transfer from Capital Project SLRRP 1025567 SLRRP Prado Acquisition and Improvement.
16. This recommendation will swap funding sources between Capital Project 1024604 County Public Health Laboratory (General Fund to bond proceeds) and Capital Project 1021162 County Administration Center Major Systems Renovation Project (bond proceeds to General Fund) for compliance with financial reporting requirements.
• Transfer appropriations of $119,912 in Contributions to Capital Outlay, Operating Transfers Out, from Capital Project 1024604, County Public Health Laboratory to Capital Project 1021162, County Administration Center Major Systems Renovation Project (CAC MSRP). This will enable a swap in revenue of $119,912 from proceeds from the 2023 Public Health Laboratory and Capital Improvements Certificates of Participation to General Fund fund balance for the County Administration Center Major Systems Renovation Project.
17. Transfer $10,000 from the Neighborhood Reinvestment Program to the Office of Labor Standards and Enforcement for the printing of “Know Your Rights” materials.
• Transfer appropriations of $10,000 from the Neighborhood Reinvestment Program (District 3 Org 15660), Services & Supplies, to the Chief Administrative Office, Office of Labor Standards and Enforcement (Org 11795), Services & Supplies, for the printing of “Know Your Rights” materials.
18. Transfer $100,000 from the Neighborhood Reinvestment Program to the Sheriff’s Office, Vista Patrol Station to assist with renovation costs for the Vista County Complex gym project.
• Transfer appropriations of $100,000 from the Neighborhood Reinvestment Program (District 5 Org 15670), Services & Supplies, to the Sheriff’s Office, Vista Patrol Station (Org 39560), Services & Supplies, to assist with renovation costs for the Vista County Complex gym project, including the purchase and installation of equipment, flooring, mirrors, paint and lighting.
19. This recommendation will transfer appropriation capacity from HHSA Behavioral Health Services to the Groups and their corresponding departments for one-time lump sum payments to the General employees.
• Transfer appropriations of $14,248,297 from HHSA, Behavioral Health Services, to Public Safety Group ($4,757,000), Health and Human Services Agency ($6,488,297), Land Use and Environment Group ($1,332,000) and Finance and General Government Group ($1,671,000), for one-time lump sum payments to the General employees as listed in Appendix D, based on previously allocated federal and State funding to be replaced with Unlocked Reserves. This transfer of appropriations is based on BHS operational savings and has no impact to services or the General Fund. The use of Unlocked Reserves is recommended based on San Diego County Administrative Code Section 113.1 for these time-sensitive operational expenditures.
20. Direct the Chief Administrative Officer (CAO) to continue to pursue funding in the Office of Emergency Services for the procurement to map, catalogue, and database the unincorporated area’s most vulnerable infrastructure and report back to the Board if funding is identified.
EQUITY IMPACT STATEMENT
After the Board of Supervisors adopts the Operational Plan, it is monitored by the departments, Groups, and the Board. Departments are expected to work within their respective budgets. Budgets may, however, be modified during the year as circumstances warrant. In conjunction with the fund balance projection process, the Chief Administrative Officer meets with each Group to review accomplishments, emergent issues, and budget status. Department heads are required to communicate any potential problems or errors to the appropriate authority. Groups complete fund balance projections quarterly providing explanations of significant variances of their budget. The recommended actions are intended to provide resources to address inequities in County services and to identify disparities, develop meaningful outcomes, and create a County government culture of equity, belonging, and racial justice.
SUSTAINABILITY IMPACT STATEMENT
Today’s actions support the sustainability measures across the County considering the environment, economy, health/wellbeing, and/or social aspects of the community by aligning the County’s available resources with services to maintain fiscal stability and ensure long-term solvency.
FISCAL IMPACT
Funds associated with today’s recommendations are partially included in the Fiscal Year 2025-26 Operational Plan. If approved, in the General Fund these actions will result in an increase to the overall budget of $24,085,002, transfers between budgetary funds of $2,202,903, transfers within budgetary funds of $15,328,209 and no cancellation of appropriations. The funding sources for the increases are unanticipated State revenue from Senate Bill 280: Elections ($19,000,000), Local Revenue Fund 2011 ($3,500,000), over realized General Purpose Revenue from Property Tax Current Unsecured ($783,765), Opioid Settlement Funds ($500,000), Operating Transfers In from Courthouse Construction Special Revenue Fund ($184,286), unused portions of prior year allocations for Neighborhood Reinvestment Program ($58,788), unanticipated revenue from Environmental Public Health and Emergency Response grant funds ($39,986), and unused portions of prior year allocations for Community Enhancement Program ($18,177). The transfer of appropriations ($14,248,297) from HHSA (Behavioral Health Services - BHS) to PSG, HHSA, LUEG, and FGG as noted in Appendix D for one-time lump sum payments is based on operational savings in BHS and the one-time use of Unlocked Reserves. Based on San Diego County Administrative Code Section 113.1 no more than 25% can be used in one fiscal year which equates to $95.4 million, leaving a remaining balance for Fiscal Year 2025-26 of $81.2 million.
In all other funds combined, these actions will result in a net increase to the overall budget of $6,706,045, transfers between budgetary funds of $1,500,000, transfers within budgetary funds of $2,710,000, and cancellation of appropriations of $885,000. The funding sources for the increases are Operating Transfer in from the General Fund and Other Non-General Funds for MMCOF projects ($2,202,903), Children’s Crisis Continuum Pilot Program funds ($1,687,226), bond funding for MMCOF project ($1,000,000), Behavioral Health Continuum Infrastructure Program funds ($871,630), Operating Transfer In from the General Fund ($850,000), Operating Transfer In from Airport Enterprise Fund ($710,000), available prior year Courthouse Construction Fund fund balance ($184,286), available prior year CSA 81 Fallbrook Local Park Fund fund balance ($50,000), and available prior year PLDO fund balance ($35,000).
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
As shown in Schedule A, the General Fund year-end fund balance projection of negative $19.2 million is based on the estimate that expenditures will be approximately $102.3 million less than the Fiscal Year 2025-26 Amended Budget and revenues will be a net $121.5 million less than the Fiscal Year 2025-26 Amended Budget. The Amended Budget consists of the Adopted Budget plus encumbrances carried over from the prior year, plus approved year-to-date changes. The projected balance for all other funds combined is a net of $11.9 million.
Attachments to this letter have been included to provide additional detail of these fund balance projections. Schedule A summarizes the fund balance projection by business group, department, and fund category. Schedule B shows the projected General Fund fund balance by business group split between operating and reserve balances. The Notes to Schedules A and B explain variances from budget by department, fund and for General Purpose Revenue. The Notes to the General Fund Variances details General Fund Variances by expenditure and revenue are summarized briefly below.
GENERAL FUND EXPENDITURE VARIANCES
The first quarter expenditure variances in the General Fund of $102.3 million are primarily due to higher than budgeted projections in Salaries & Benefits ($7.3 million), Other Charges ($5.7 million), and Expenditure Transfer & Reimbursements ($3.5 million) offset by lower than budgeted projections in Services & Supplies ($116.6 million), Capital Assets Equipment ($0.9 million), and Operating Transfers Out ($1.3 million). Expenditure variances are described in detail in the Notes to the General Fund Variances.
GENERAL FUND REVENUE VARIANCES
The first quarter revenue variances in the General Fund of $121.5 million are primarily due to $7.0 million in over-realized revenue offset by $128.5 million in under-realized revenue. The over realized revenue is primarily due to Taxes Other Than Current Secured ($4.9 million), Taxes Current Property ($1.5 million) and in Licenses Permits & Franchises ($0.6 million). The under-realized revenue is primarily due to lower Intergovernmental Revenues ($113.1 million); lower Charges For Current Services ($13.9 million); Miscellaneous Revenues ($0.9 million); lower Revenue From Use of Money & Property ($0.4 million); and lower Fines, Forfeitures & Penalties ($0.2 million). Revenue variances are described in detail in the Notes to the General Fund Variances.
County staff actively monitor all revenue sources, including federal sources which the County may have incurred to manage past emergency response efforts. A summary of these past response costs are described in the Notes to the General Fund Variances.
Adjustments to the Fiscal Year 2025-26 Amended Budget
Transfers and revisions to the amended budget can be made by formal action of the Board of Supervisors in accordance with the California County Budget Act, Government Code Section 29125. Increases to the overall budget require 4 votes while transfers of appropriations between departments within the same budgetary fund that do not increase the overall budget or the cancellation of appropriations require a majority vote. However, transfers of appropriations between budgetary funds, referred to as operating transfers, require 4 votes even if the overall budget is not increased.
The recommendations for budget adjustments are explained as follows:
Increases to the Overall Budget and/or Transfers Between Budgetary Funds (Recommendations 2 through 14):
Recommendation 2
This recommendation will establish appropriations of $3,500,000 in the Sheriff’s Office, Services & Supplies to remove triple bunks at George Bailey Detention Facility, Vista Detention Facility, San Diego Central Jail and South Bay Detention Facility to address and comply with a Board of State and Community Corrections inspection finding. The funding source is the Local Revenue Fund 2011, Community Corrections Subaccount.
Recommendation 3
This recommendation will establish $500,000 in the Sheriff's Office, Salaries & Benefits ($100,000) and Services & Supplies ($400,000) to support the Opioid Enforcement Program. This recommendation will add Opioid Settlement Funds revenue within Sheriff’s Office to fund counseling services and reentry planning coordination to Medicated Assisted Treatment (MAT) clients in the MAT Module (Intensive Housing Treatment) as well as for identified MAT clients in the general detention population and make General Purpose Revenue available to help fight fentanyl overdose epidemic.
Recommendation 4
This recommendation will establish appropriations of $184,286 in the Courthouse Construction Special Revenue Fund based on available fund balance from the prior year to provide partial funding for the final debt service payment for the Hall of Justice. According to Government Code section 70402(a), these funds can only be used for the Hall of Justice debt service, and any remaining funds must be transferred to the State.
Recommendation 5
This recommendation will transfer appropriations of $710,000 within Department of Public Works (DPW), Airport Enterprise Fund, to fund contracted facilities services in the Department of General Services (DGS), Facility Management ISF. During the development of Fiscal Year 2025-27 Operational Plan, DPW included security and landscaping services. DGS is coordinating with Department of Purchasing & Contracting to amend the countywide security services contract and procure a new countywide landscaping services contract to include services for DPW Airports with planned implementation in January 2026. The funding source is an Operating Transfer from Airport Enterprise Fund.
Recommendation 6
On June 24, 2020 (12), the Board of Supervisors adopted resolutions authorizing LUEG Department Directors and/or their designee(s) to submit, negotiate, accept and execute all documents necessary to secure grant funding from non-profits, local, state and federal agencies through Fiscal Year 2024-25. On August 25, 2020, the Department of Environmental Health and Quality (DEHQ) received a Notice of Award for an Environmental Public Health and Emergency Response grant from the US Department of Health and Human Services, Centers for Disease Control and Prevention (CDC) Office of Financial Resources. The project awarded will work toward strengthening the County of San Diego's areas in the Temporary Event Food Program, Hazardous Materials Business Plan information, Recreational Water Programs, and Disaster Recovery. This is a multi-year, non-competitive grant and future year funding will be subject to satisfactory programmatic progress and the availability of funds for the original project period of September 1, 2020, through August 31, 2025. DEHQ has been awarded a total of $205,103 for 5 years ($39,824 for Year-1, $39,972 for Year-2, $38,363 for Year-3, $46,972 for Year-4 and $39,972 for Year-5). On Aug 29, 2025, CDC awarded remaining grant funds of $39,986 as a Year-5 supplement to DEHQ. This is a request to establish appropriations of $39,986 in DEHQ in Services & Supplies for expenditures related to Strengthening the County of San Diego's Hazardous Materials Business Plan information and Disaster Recovery projects, based on unanticipated revenue from Environmental Public Health and Emergency Response grant funds for the project period of September 1, 2025 through August 31, 2026.
Recommendation 7
This recommendation transfers appropriations of $35,000 to swap revenue sources for Capital Project 1022858 Calavo Park due to insufficient funding in the PLDO Spring Valley In Lieu Fees account. Funding will instead come from the PLDO Spring Valley Improvement Impact Fees account. Funding for Capital Project 1022858 Calavo Park is included in Fiscal Year 2025-26 Operational Plan. There is no change to the project’s total budget. Funding source is available prior year PLDO Spring Valley Improvement Impact Fees Fund fund balance.
Recommendation 8
This recommendation will establish appropriations of $50,000 based on existing fund balance in CSA 81 Fallbrook Local Park Fund to provide funding for an unanticipated maintenance project at Don Dussault Park to replace a damaged electrical pole.
The initial build-out of the park included installation a wooden electrical pole, meter box, and electrical conduit lines in a landscaped planter bed. These electrical components power the park irrigation controller and site security lighting system. Due to years of landscape irrigation, the wooden electrical pole is rotted below grade and leaning, putting tension on the electrical lines. Due to the condition of this electrical pole, it must be replaced.
Recommendation 9
This recommendation will establish appropriations of $783,765 based on unanticipated over-realized General Purpose Revenue from Property Tax Current Unsecured to provide funding for one-time needs in the Board of Supervisors’ offices for various Services & Supplies costs.
Unsecured property taxes are ad-valorem taxes assessed on personal property that is not attached to real estate, such as boats, aircraft, business fixtures, and business personal property. Current unsecured property tax revenues were based on the assumption that there would be no growth in the current unsecured roll. Current projections now indicate that revenues are anticipated to be higher than budget.
Recommendation 10
On August 21, 2025, Governor Newsom signed Senate Bill 280 calling for a Statewide special election on November 4, 2025 relating to redistricting. On September 5, 2025, the California Department of Finance Director subsequently requested the State Controller to remit payment to County election officials for costs related to the Statewide special election totaling $251,300,000. San Diego County’s allocation is $19,000,000. This recommendation establishes appropriations in the Registrar of Voters to accept the County’s allocation of State funds and pay for costs related to the special election.
Recommendation 11
On June 24, 2025 (6), the Board approved Capital Project 1027588, Children’s Crisis Residential Care Facility (CCRCF) for $6,920,000 in appropriations. This project will renovate 10,000 square feet of Polinsky Building A into a 15-bed facility with an optional 16th bed to be used as needed. The project will offer intensive, wrap-around support services to help manage a psychiatric crisis and offer diversion from higher levels of care. The project provides short term crisis residential treatment to both foster and non-foster care youth ages 12-18 recovering from a psychiatric crisis. The design includes communal areas, behavioral health service spaces (therapy rooms, individual and group activity rooms), facility management offices, and back-of-house/service rooms. The project is in the design and procurement phase with an estimated completion date of Summer 2027.
If approved, today’s recommendation will increase the CCRCF project budget by $3,408,856 based on Children’s Crisis Continuum Pilot Program grant funds ($1,687,226), Behavioral Health Continuum Infrastructure Program grant funds ($871,630) and a transfer from MMCOF Project 1026221 Polinsky Repairs Phase 2 ($850,000) which is available due to the discovery of overlapping work between the two projects. The new total project budget will be $10,328,856.
Recommendation 12
This recommendation establishes appropriations of $18,177 in the Community Enhancement Program budget Org 12900 ($666 for District 1, $7,608 for District 2, $7,425 for District 3, $595 for District 4, and $1,883 for District 5) based on unused portions of prior year allocations that were returned by grantees in the current fiscal year. This will allow the recently returned funds to be allocated to other projects.
Recommendation 13
This recommendation establishes appropriations of $15,066 in the Neighborhood Reinvestment Program budget (District 1 Org 15650), $7 in the Neighborhood Reinvestment Program budget (District 2 Org 15655), $5,527 in the Neighborhood Reinvestment Program budget ( District 3 Org 15660), $33,307 in the Neighborhood Reinvestment Program budget (District 4 Org 15665) and $4,881 in the Neighborhood Reinvestment Program budget (District 5 Org 15670) based on unused portions of prior year allocations that were returned by grantees in the current fiscal year. This will allow the recently returned funds to be allocated to other projects.
Recommendation 14
Board Policy B-37, Use of Capital Program Funds, notes that on occasion, due to the nature of major maintenance projects, these projects may be reclassified as an operating or capital expense based on financial reporting requirements. Pursuant to Board Policy B-37, to ensure accuracy in financial reporting, the Chief Financial Officer shall make required adjustments to departmental operating budgets and within the Major Maintenance Capital Outlay Fund (MMCOF) or the Major Maintenance Internal Service Fund (MMISF). Due to the emergent nature of some major maintenance projects, some of these adjustments may require ratification by the Board. These recommendations will allow for the accurate financial reporting of major maintenance projects, which are listed in Appendix C along with the related required adjustments.
This recommendation will result in a net increase of appropriation in the MMCOF of $3,202,903, which includes a transfer of savings from a Capital Outlay Fund project to a HHSA MMCOF project and reclassification of major maintenance projects which are supported by existing department budgets.
Transfers Within Budgetary Funds and/or Cancellation of Appropriations (Recommendations 15 through 20):
Recommendation 15
This recommendation will transfer appropriations of $2,000,000 from Capital Project 1025567 SLRRP Prado Acquisition and Improvement to Capital Project 1021895 SLRRP Acquisition and Improvement at Moosa Active Recreation Node, to provide funding for an equestrian staging area.
The Bonsall community has identified equestrian facilities as a priority consideration in facility and amenity planning. The equestrian staging area project will connect existing and future trails and is part of the San Luis Ray River Park Master Plan.
Recommendation 16
This recommendation will complete a swap of funding sources between Capital Project 1024604, County Public Health Laboratory (PHL) and Capital Project 1021162, County Administration Center Major Systems Renovation Project (CAC MSRP) to ensure accurate financial reporting of the use of debt issuance proceeds from the 2023 Public Health Laboratory and Capital Improvements Certificates of Participation (2023 COPs). A total of $119,912 of existing proceeds from the 2023 COPs will be moved to the PHL project and $119,912 of General Fund fund balance will be moved to the CAC MSRP project. There will be no change to either project’s total budget.
The completed PHL includes a 52,000 square foot laboratory and a parking structure. The new laboratory features service expansion, including whole genome sequencing, molecular surge, Covid-19 testing services, tuberculosis testing services, and a robust Biosafety Level 3 (BSL-3) program. This structure allows the PHL to provide laboratory services regionwide, serve the unique needs of a border region, and serve as a potential partnering hub for the California Department of Public Health, Centers for Disease Control and Prevention (CDC), and nearby jurisdictions. The PHL construction was completed in Spring 2025 and the parking structure was completed in Fall 2024. Construction for the CAC MSRP is in progress and is estimated to be completed in Fall 2026.
Recommendation 17
The mission of the Office of Labor Standards and Enforcement is to advance labor standards through community and business engagement, strategic enforcement, innovation, research, and policy development with a commitment to workplace justice.
On July 22, 2025 (10), the Board directed the Chief Administrative Officer to develop and implement a Small Business Know Your Rights training program for employers-integrated into the County’s labor standards education efforts-to help employers train their staff and respond appropriately to federal immigration enforcement actions. The allocation of funds is in the public interest as these materials will help employers train staff and respond appropriately should federal enforcement agencies enter their businesses or take action. This transfer of $10,000 in Neighborhood Reinvestment Program funds, is a new District 3 (Org 15660) award for Fiscal Year 2025-26.
Recommendation 18
The Sheriff’s Office provides public safety services to 4,200 square miles of unincorporated San Diego County, nine contract cities, and eighteen Indian Reservations. They manage the County jails and provide security to the courthouses. The Vista Patrol Station has been the hub for law enforcement services in the City of Vista and the surrounding unincorporated areas for more than 50 years.
The Vista County Complex gym project is more than a decade past due, and each piece of workout equipment is beyond its service life. Benefits of updated gym equipment include providing better safety features and improved workout performance and reducing the risk of injuries, which is crucial for officer safety and job readiness. Enhancing physical fitness enables officers to perform their duties effectively and safely. The facility, located at 325 S. Melrose Dr., Vista, CA 92081, is shared by the Vista Patrol Station, Detention Facility and Court Services Bureau - which includes nearly 300 sworn members of the Sheriff's Office. This transfer of $100,000 in Neighborhood Reinvestment Program funds, is a new District 5 (Org 15670) award for Fiscal Year 2025-26.
Recommendation 19
On June 24, 2025 (3), July 22, 2025 (3) and on August 26, 2025 (16), the Compensation Ordinance was updated, based on negotiated labor agreements previously approved by the Board for General employees. The changes included one-time lump sum payments of $1,000 (one thousand dollars) in fiscal year 2025-26, $500 (five hundred dollars) in fiscal year 2026-27, and $250 (two hundred fifty dollars) in fiscal year 2027-28 to be paid to eligible employees’ contingent upon a change to the County’s Reserve Policy which provides additional one-time funds. The compensation ordinance requires that the first payment be made within two pay periods after the effective date of the Board of Supervisors changed reserve policy. Appendix D is the requested appropriation by departments for the current year lump sum payments.
The current Fiscal Year 2025-26 Operational Plan does not include funding to support these one-time lump sum payments. On September 9, 2025 (23), the Board of Supervisors (Board) adopted changes to the Administrative Code relating to General Fund Balances and Reserves that became effective on October 9, 2025 and staff would return at a future date with additional recommendations needed to support lump-sum payments in the current year using unassigned General Fund balance from “Unlocked Reserves” for the Board’s consideration and approval.
This recommendation will transfer appropriation capacity of $14,248,297 from HHSA Behavioral Health Services (BHS) to the Groups and their corresponding departments for one-time lump sum payments to the General employees, based on previously allocated federal and State funding to be replaced with Unlocked Reserves. The use of Unlocked Reserves is recommended based on San Diego County Administrative Code Section 113.1 as time-sensitive operational expenditures in the current fiscal year. This transfer of appropriations is based on BHS operational savings and has no impact to services or the General Fund.
Recommendation 20
On October 21, 2025 (20), the Board of Supervisors directed the CAO to identify funding for a procurement to map, catalog, and database the unincorporated area’s most vulnerable infrastructure. This recommendation will direct the CAO to continue to pursue funding for these procurement efforts in the Office of Emergency Services and report back to the Board if funding is identified.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions support the Strategic Initiatives of Sustainability, Equity, Empower, Community and Justice in the County of San Diego’s 2025-2030 Strategic Plan by fully committing to use County resources to meet the highest priority needs of residents.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
Schedules A and B
Notes to Schedules A and B
Notes to the General Fund Variances
Appendix C: MMCOF Adjustments
Appendix D: Lump Sum One Time Payments