To: BOARD OF SUPERVISORS
From: Executive Office
Meeting Date: October 6, 2026
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Department Contact: |
Sara Pierce |
Phone: |
707-463-4441 |
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Department Contact: |
Dr. Jenine Miller |
Phone: |
707-472-2341 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 15 Minutes |
Agenda Title:
title
Discussion and Possible Action Including Adoption of a Mental Health Treatment Act (MHTA) Specific Reserve and Fund Balance Policy No. 32A; and Approval for Auditor-Controller to Reallocate Fiscal Year End 2025/2026 Fund Balances to New Reserves
(Sponsors: Executive Office and Health Services)
Vote Requirement: Majority
End
Recommended Action/Motion:
recommendation
Adopt Policy 32A Mental Health Treatment Act (MHTA) specific Reserve and Fund Balance Policy; and approve Auditor-Controller to reallocate Fiscal Year End 2025/2026 fund balances to new reserve.
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Previous Board/Board Committee Actions:
None.
Summary of Request:
In March 2026 the Board of Supervisors approved a revised Reserve and Fund Balance Policy for the General Fund to address current and financial challenges and to strengthen the County’s governance of reserve funds. The amended policy also simplified the County’s General Fund reserve structure and set target reserve limits and outlined authority for the deposit of funds into each reserve.
In August 2026, the Interim Chief Executive Officer presented to the Mental Health Treatment Act (MHTA) Oversight Committee, a draft Reserve and Fund Balance Policy specific to the MHTA Funds, also known and Measure B funds. The MHTA specific policy utilized a similar structure to the recently amended Policy 32, General Fund Reserve and Fund Balance Policy. The MHTA Oversight Committee voted to recommend the Board of Supervisors adopt the policy.
The draft MHTA Specific Reserve and Fund Policy outlines the purpose of the policy is to ensure the County maintains Fund reserves to safeguard the County’s long-term financial health and protect essential services specific to support and stabilize individuals with behavioral health conditions, including addiction and neurological disorders from the potential impacts of unanticipated events and circumstances not occurring during the normal course of operations.
These reserves shall constitute general reserves under California Government Code. The County shall maintain three primary Fund reserves, each designed to guard against different risks:
a. Rainy Day Emergency Reserve - A stabilization reserve to guard against longer-term impacts resulting from major financial and operational events, including recessions, natural disasters, and other declared emergencies. This reserve is intended to manage multi-year cycles, growing with deposits of unanticipated revenues to draw against during recessions and other emergencies.
b. Infrastructure Reserve - A reserve to improve the County’s investment in deferred maintenance and upkeep of Mental Health Treatment Act facilities.
c. Systems Reserve - A reserve to improve the County’s investment in the Mental Health Treatment Act systems modernization
This item is also seeking approval for the Auditor-Controller to reallocate Fiscal Year End 2025/2026 fund balances to new reserves, including reallocation of current MHTA Prudent Reserve.
Alternative Action/Motion:
Provide alternative direction to staff.
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: N/A |
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current f/y cost: N/A |
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budget clarification: N/A |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: N/A
CEO Liaison: Sara Pierce, Interim CEO
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Deputy Clerk |
Final Status: Item Status |
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Date: Date Executed |
Executed Item Type: item |
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Number: |
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