Placer Supervisors adopt $1.37 billion budget for FY 2025-26

The Placer County Board of Supervisors approved a resolution adopting a $1.37 billion budget on June 24 for fiscal year 2025-26, emphasizing fiscal responsibility while investing in critical services, facilities and future growth. The balanced budget reflects an 11.7-percent increase from the prior year to meet the county's growing service demands, particularly in west Placer. The budget supports the county's eight Critical Success Factors, which guide priorities ranging from public safety to affordable housing, environmental stewardship and economic development. Nearly half the total budget is dedicated to public protection and health and human services, helping ensure safe, healthy communities throughout Placer County. "Year over year, our costs go up just to provide the same level of service and on top of that we have more requests for services that are very valid," said District 5 Supervisor Cindy Gustafson. "This budget is a massive undertaking and I just commend our departments for doing as much as they can with the growth we are experiencing and continuing to look at innovative ways to provide services with the dollars we have." County Executive Officer Daniel Chatigny added, "This budget is a roadmap for a safer, healthier, and more prosperous Placer County. It reflects careful planning, collaboration with community partners, and a strong commitment to meeting the needs of our growing population." Key budget highlights: Revenue: General Fund revenues are forecast to be approximately $454.4 million, which includes key assumptions such as 5 percent annual growth in property tax revenues along with inflation-aligned increases in sales tax and hotel tax. Expenditures: General Fund expenditures are budgeted at $456.3 million, an increase of $21.8 million or 5 percent over the last fiscal year. The increase in expenditures is attributed to a rise in labor costs and strategic transfers to sustain other funds. A total of 33 new positions were added to the county to enhance service levels and keep up with continued population growth. Infrastructure and facilities: The total budget provides $181.6 million for capital improvements, which includes funding for the Auburn Library modernization project, Phase 1 of Placer Parkway, the Kings Beach Western Approach and the expansion of Hidden Falls Regional Park. A total of 71 percent of the Capital Improvements Budget is allocated to the Road Fund for road, bridge and overlay projects. Retirement obligations: The budget fully funds the required contribution to the county's long-term obligations, such as pensions and other post-employment benefits. Fiscal Stability: Placer County maintains a strong commitment to fiscal stability through its robust reserve policy, which is essential for managing economic uncertainty and unanticipated budget needs. In FY 2024-25, the county increased its General Reserve target from 10 percent to 16.6 percent of the combined operating expenditures of the General Fund and Public Safety Fund. The county's General Reserve is currently fully funded at 10 percent and will steadily build this reserve to meet its 16.6 percent target over time. "We are so fortunate to be in a financial position that allows us to put funds into our general reserve and to invest in capital projects," said Board Chair and District 1 Supervisor Bonnie Gore. "There are counties throughout this state that are cutting jobs and unable to meet state mandates. We have a healthy business climate in Placer County and continue to attract new businesses. We are well-positioned moving into the future." The board also approved a $55.4 million budget to fund 176 special districts and county service area zones. This budget provides funds for lighting and landscape districts, benefit assessment districts, permanent road divisions, sewer maintenance districts and county service area zones, which are all governed by the Board of Supervisors. Additionally, the board adopted proprietary budgets for a total of $227.4 million, which is a 14.7-percent increase over last year. These budgets account for internal services such as facility maintenance, fleet, and IT functions. The budget development process is a year-long effort that begins in July and ends in June, in keeping with the fiscal year calendar. Residents can review the full budget or check out the summarized version in the Budget in Brief at placer.ca.gov/budget.