Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Supervisor Jackie Speier, District 1
Subject: County Executive Oversight of Sheriff’s Office Pursuant to County Reserves Policy
RECOMMENDATION:
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Adopt a resolution directing the County Executive to use oversight procedures set forth in the County Reserves Policy as to Sheriff’s Office due to its low reserves level.
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BACKGROUND:
On September 24, 2024, this Board adopted Resolution No. 080647, which approved an updated County Reserves Policy to increase reserve requirements, set maximum reserve amounts, and establish procedures for additional oversight. The County Reserves Policy includes oversight procedures that apply when a County department’s reserves fall below 2% of net appropriations.
DISCUSSION:
The County Reserves Policy approved by this Board states that County departments shall maintain departmental reserves at a minimum of 4% of net appropriations. In addition, section 3.1 of the County Reserves Policy sets forth procedures that shall apply in the event that a department’s reserves fall below 2% of net appropriations:
(a) The County Executive may rescind the delegation of authority to such Departments to approve contracts in the amount of $200,000 or less, so that all such contracts must be submitted to the County Executive’s Office for review and approval prior to execution.
(b) To the extent the County Executive’s Office makes funds available to the Department to meet Reserve or Fund Balance requirements or to otherwise cover an operating deficit, the Department shall confer with the County Executive’s Office to develop and commit to a plan to repay such funds over the course of five fiscal years.
(c) The Department’s fiscal staff shall be required to report to the County Executive’s Office quarterly regarding the status of and progress on any repayment plan pursuant to Section B (3.1(b)) and the Departmental Reserves Replenishment Plan required under Section B (3).
(d) In the event the Department has an operating deficit for two fiscal years over a period of five fiscal years, the County Executive’s Office may require for the following five fiscal years that (i) the Department’s fiscal staff report to and be directed by the County Executive’s Office with respect to the fiscal affairs of the Department; and (ii) the Department submit its proposed budgets to the County Executive’s Office for review and approval prior to submission of any requested budget amounts to the Board of Supervisors. The County Executive’s Office shall have authority to determine and direct the amounts of County funds requested in such Department recommended budgets.
Net appropriations for the Sheriff’s Office under the 2025-26 Adopted Budget is $324,224,723. The level of Sheriff’s Office reserves is currently less than 0.5% of that net appropriations amount (i.e., significantly below both the required 4% and the 2% threshold referenced in section 3.1 of the County Reserves Policy).
Given the low level of Sheriff’s Office reserves, this Board believes that the County would benefit from increased oversight of Sheriff’s Office fiscal operations. This Board therefore directs the County Executive to take appropriate steps to exercise authority under section 3.1(a) of the County Reserves Policy to rescind the delegation of authority to the Sheriff’s Office to approve contracts in the amount of $200,000 or less, so that all such contracts must be submitted to the County Executive’s Office for review and approval prior to execution. In addition, this Board directs the County Executive to engage in additional appropriate oversight measures, including those provided for in section 3.1 of the County Reserves Policy, to the extent that they apply or become applicable.
COMMUNITY IMPACT:
This resolution will positively impact communities in San Mateo County by promoting financial stability, which in turn allows the County to maintain essential services, particularly for underserved communities, during economic downturns.
FISCAL IMPACT:
This proposed action does not require additional appropriation. Exercise of oversight procedures set forth in this memorandum may result in adjustments to future fiscal year budgets and reserves that will be reviewed by this Board in connection with such budget approvals, as appropriate.