Although Humboldt County is characterized as fiscally responsible, the final budget for fiscal year 2024-25, approved at a regular meeting of the Humboldt County Board of Commissioners on May 20 (with all members present), revealed that expenditures are set to exceed revenues for the next year.
According to Humboldt County Comptroller Gina Rackley, Humboldt County’s final budget reflects the general fund in which estimated revenues and other financing sources equal $25,437,406. Budgeted expenditures and other financing uses are $29,146,742 but Humboldt County is anticipating that revenue will be greater than the amount received in fiscal year 2023.
The final budget includes all of the departments, 10 funds, including Debt Service, requiring property tax revenues, 26 governmental fund types, and four proprietary funds across the County.
Much of the revenue deficit is due to salary and benefits — the highest expenditure for the County.
According to Rackley, the County’s negotiation team has made a temporary agreement for a three and a half percent increase in the General Unit Employees Association, increasing $900,560 across all funds, but there has not been a final agreement made with the Law Enforcement Association yet.
Despite the increase for pay to employees and disparity between the revenues and expenditures, Rackley said “It is anticipated that the County will utilize a portion of unassigned fund balance to maintain the level of services that our citizens have become accustomed to over the last several years.”
Additionally, Rackley explained that the County budgets conservatively, so the actual ending fund balance will be the greatest historically because the County has not spent 100 percent of its expenditure appropriations.
Rackley also said that the County is anticipating much higher allocations from net proceeds of minerals because gold prices are at a record high of over $2,400 per ounce, although mining is a volatile industry.
“We have chosen to project net proceeds of minerals at the level that the state has projected, which is an amount based upon an assessed value $784,774,378. This is a significant increase in the amount of $479,491,055 55 from fiscal year 2024,” explained Rackley.
Commissioner Mark Evatz asked Rackley what she projects the County will receive from net proceeds and Rackley said that the amount is likely to be in the millions, but estimates are “tricky” for net proceeds because the state projects them 18 months out and they are not received until the last week in May or first week in June (the end of the fiscal year).
“Given the last two really low years that we have had for net proceeds, I feel a little more confident taking this figure this year, but we’re not going to spend that money until that’s in the bank,” said Rackley.
The County’s assessed value is $2,224,759,002. 29 including net proceeds, an increase of 157% from the prior fiscal year, according to Rackley.
“All ending fund balances budgeted in funds receiving property taxes are necessary to assure sufficient monies are on hand at the beginning of the new fiscal year to pay for the expenditures before new tax revenues are received,” explained Rackley.
Lastly, Rackley explained that although the Commission could raise taxes and has discussed it, although it is not a desire of the Board, it would not make up the total needed revenue.