Deputy County Administrative Officer Jessica Maciel presented the committee with a fiscal-year-end update on Measure Z revenues and expenditures on Dec. 4.

"Revenue has been coming in very close to projections," Maciel told the committee, saying Measure Z finished the year roughly $119,000 over projections for FY24-25. She said year-over-year savings have decreased to about $512,000 as county departments absorb rising costs, and that reported totals are still preliminary while final fiscal postings are completed.

Maciel described three carry-forward requests that staff will present for the board's consideration: about $200,000 for the public defender to upgrade case-management software; roughly $360,000 for Public Works to complete delayed equipment purchases; and approximately $1.5 million associated with Fire, which includes encumbered purchase orders and remaining unencumbered amounts. Maciel emphasized the $1.5 million figure is preliminary and subject to adjustment during the final true-up before January.

Staff also explained an accounting change: Measure Z activity was moved from general-fund code (Fund 1100) into a separately tracked fund to improve reporting and reduce reliance on ad hoc spreadsheets.

Committee members discussed next steps for the multi-year spending plan. Staff reminded the committee the board had previously set a 3-year spending plan based on a $12.5 million annual expenditure target; current revenue trends are flat (about $13 million annually over the last three years), and uncertainty exists about the longer-term compounding effect of Measure O (the local 1¢ road tax) that took effect April 1. Members recommended forming a working group (chair and vice chair plus CAO budget staff) to present options — including 3- and 5-year scenarios and allocation options between county agencies and community partners — at the committee's January meeting.

Maciel cautioned that the available carry-forward totals and final balances will be updated when all expenditures are posted and that staff will provide a revised number before the application process opens.

The committee did not take formal action on the specific carry-forward requests at this meeting; it did pass a separate motion directing the chair and vice chair to work with the CAO budget group to draft spending-plan options for discussion in January.