Dear Friends,
It's an interesting time for government finance. Tomorrow is our final hearing on the County Budget for fiscal year 2025 - 2026. We generally expect this will be a "placeholder" budget that requires significant revisions after the state and federal budgets are finalized. Already, the overall county budget is decreasing from last year and will require the elimination of over 70 health services positions, due largely to lower Medi-Cal reimbursement rates.
Last Friday the Santa Cruz County Regional Transportation Commission released an Executive Summary of the Zero Emission Passenger Rail report. The highlight is a $4.28 billion price tag. Paying for this would require Santa Cruz to have the highest sales taxes in the state.
With so many housing and transportation construction projects going on, my office has compiled a District 1 Project Map to help you keep track of it all. We've just updated it with all of the projects recently announced.
Please join me in welcoming Jillian Ritter to the District 1 Office. Jillian has a lot of experience working for the County and knows how to get stuff done. She already joined me in weed whacking some medians.
Finally, mark your calendars for two important town hall meetings. Monday, June 16th at 6:00 PM to discuss the East Cliff survey results and next steps. Then on Tuesday, June 24th at 5:30 PM the Parks Department will be presenting it's updated Habitat Management Plan for Moran Lake. Both will be held in the Community Room at the Simpkins Family Swim Center. Hope to see you there!
Best, |
Manu Koenig 1st District Supervisor, Santa Cruz County
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Highlights on Tomorrow's Board of Supervisors Final Budget Hearings
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Image: the County's Emeline Health Clinic. The Health Services Agency has lost $11.1 million in revenue due largely to new state reimbursement formulas.
Regular Meeting - 9:00 AM The County Radiology and Laboratory departments are located at 1080 Emeline Avenue in Santa Cruz and 1430 Freedom Boulevard in Watsonville. There are 2.0 full-time equivalent (FTE) budgeted staff in the Radiology department and 5.6 FTE budgeted in the Laboratory department.
These are important services that help ensure clients have a one stop shop available to them, however Health Centers’ has been in financial shortfall for the past several years. Unfortunately, the budget shortfalls are a point where radiology and laboratory service reduction must be considered in order to balance the Health Centers’ budget and ensure primary care services continue.
The closure of the Radiology and Laboratory departments would impact the 7.6 FTE positions. The County Personnel Department and HSA have begun working with the affected laboratory and radiology employees to provide them with employment placement options, should the Board approve the proposed closure.
Last Day Budget Meeting (After the Regular Meeting) Solutions have been found to patch some of the issues that arose in this year's budget from the loss of $11.1 million in Health Services revenue. County staff is recommending a restoration the Mental Health Client Action Network (MHCAN) contract in the amount of $477,939 for peer support and drop-in services. The operation of Gemma House, for women exiting incarceration, would be transitioned to Janus at no cost to the County General Fund. A full-time equivalent (FTE) Senior Mental Health Client Specialist would be restored as would locum tenens Psychiatrist contracts.
To view the full regular agenda of the Board of Supervisors click here: https://santacruzcountyca.primegov.com/Portal/Meeting?meetingTemplateId=828
To view the agenda for Last Day Budget items, which will take place after the regular agenda items, click here: https://santacruzcountyca.primegov.com/Portal/Meeting?meetingTemplateId=876
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RTC's Latest Train Study Shows Crushing Costs, Little Benefit
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Image: a Sonoma Marin Area Rail Transit (SMART) maintenance facility. The need for a maintenance facility like this on the Santa Cruz Branch Line has gone overlooked until this latest report.
On Friday the Santa Cruz County Regional Transportation Commission (RTC) released a draft Executive Summary of the latest rail study, available here. It includes some important high level numbers for a train from Watsonville to Santa Cruz: - Total project cost: $4.28 Billion
- Annual operating costs ranging from $17M - $41M (depending on if there is a train scheduled every 60 minutes or every 30 minutes)
- Daily ridership 3,500 - 6,000 in year 2045
I understand that the millions and the billions begin to blur for most people at this level, so let's put these numbers into context. One good place to start is the costs relative to the benefits: $4.28 billion in construction costs means $713,333 - $1.22 million per rider. Once built, the public would have to spend $2,833 - $11,714 per rider per year to operate the train (most public transit operates at a loss).
Rail proponents are fond of saying that the state and federal government will pay for our train through grants. These grants are competitive - we might win them, we might not. Even if we do, local government still needs to pay for 20% of construction costs as well as to fully cover operating costs. Twenty percent of $4.28 billion is $856 million. We would need to pass a new sales tax and then bond against it to get that money.
How big would the sales tax have to be? Measure D, the 0.5% transportation sales tax that county voters passed in 2016 generates approximately $27 million per year. We'd need a new 0.5% sales tax just to cover operating costs for a train, and even then we might not be able to afford 30 minute service. In order to borrow $856 million at a 5% interest rate with a 30 year repayment period, we'd need to generate at least $55.8 million per year in revenue. Typically a debt coverage ratio of 1.25% is preferred meaning that we'd need $69.75 million in revenue to cover construction costs.
Bottom line, even if you round down you need a new 1.5% county-wide sales tax to cover the cost of a train. The City of Santa Cruz's sales tax is currently at 9.75%. If this train tax passed the City's sales tax rate would rise to 11.25%. That would be the highest sales tax in the state of California by far. Currently Alameda County is the highest at 10.75%.
If that weren't enough, building a train will first require another $15 - 20 million to complete the Environmental Impact Report. That money would have to come from the same bucket of funds we use to do significant road repairs around the County. Pursuing rail means that road projects would have to be delayed for years.
The Regional Transportation Commission will discuss the report at its meeting this Thursday June 12th meeting, 6:00pm in Watsonville and via Zoom. The agenda is available here.
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Image: District 1 Project map
We've recently updated the District 1 Project Map found on the County of Santa Cruz District 1 website. This map highlights the various housing, transportation, parks and other public projects taking place throughout our district. We will continue to update the projects on the map as statuses change and progress is made. Please don't hesitate to reach out to our office if you have questions about any of the projects listed here.
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Chanticleer Pedestrian Overcrossing(“Whale Bridge”) Opening Update
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Image: Chanticleer bicycle/pedestrian bridge over Highway 1 (photo by Kevin Painchaud)
Our office has heard from many of you who are anxiously awaiting the whale bridge to open! The official ribbon cutting will be July 30th.
The RTC is hoping to open the bridge sooner than the ribbon cutting date. The bridge itself is complete, but the improvements to Chanticleer and Soquel ave are not, and it would not be safe to send bicyclists and pedestrians into an active construction site. This roadwork has been scheduled for 6/14-6/15.
Once that critical roadwork is complete, the County will need to inspect and sign off on the completed project and formally accept the bridge.
The current estimate is 3-4 weeks. Stay tuned to the RTC’s social media and their website for further updates, and we’ll be sure to publicize the information when we receive it as well.
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Image: D1 Analyst Jillian Ritter and Supervisor Manu Koenig
Last month, we welcomed Jillian Ritter to our office as a new County Supervisor’s Analyst. Jillian officially joined the team on May 20 and brings with her a deep well of experience and a long-standing dedication to our Santa Cruz County community.
A lifelong resident of District 1, Jillian has served the County of Santa Cruz in numerous impactful roles, including key administrative positions within the Parks Department and the Human Services Department. She’s no stranger to the Board of Supervisors, having previously worked as an analyst for former Third District Supervisor Ryan Coonerty as well as the Chief of Administrative Staff for the Board as a whole.
Her in-depth understanding of County operations, combined with a personal connection to the community, makes her an invaluable addition to our team. Outside the office, Jillian enjoys hiking, gardening, and open water swimming, and is a proud parent to an almost 6-year-old. Her passion for making Santa Cruz County a great place to live and raise a family is obvious in all she does. We’re thrilled to have her on board and look forward to the work we’ll accomplish together for our district.
As always, if you have questions or need support, don’t hesitate to reach out to Jillian or any member of our team: jillian.ritter@santacruzcountyca.gov |
Photos: Supervisor Manu Koenig and D1 Analyst Jillian Ritter clean East Cliff medians, before and after.
As discussed above, Santa Cruz County’s budget is rough right now. The state slashed Medi-Cal reimbursements, and we’ll probably have to cut 70 or more health positions—with more risks ahead from federal cuts too.
Meanwhile, just 13.4% of your property tax dollars come back to the County. That means no extra general funds for aesthetic median maintenance. Public Works is taking care of anything that presents a safety hazard and reduces line of sight (they have 200 miles of roadway to mow throughout the county). These medians on East Cliff didn't qualify. So my staff and I grabbed some weed whackers and took matters into our own hands.
The median we cleaned is part of a service area that covers hundreds of these types of planters throughout Live Oak and Soquel. It hasn’t raised fees since 1997—while inflation and maintenance needs have soared. We asked voters last year to increase the rate by ~$5/year. The special ballot failed, maybe we can get it done with better outreach next time.
Until then, we're launching an adopt-a-planter program. Want to help keep Santa Cruz beautiful? Sign up here: bit.ly/adopt-a-planter
P.S. Jillian found a dollar while weed whacking. Depositing it in the County General Fund. Every bit counts.
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Photo: Board of Supervisors meeting in Board Chambers.
Tue, June 10 - Board of Supervisors Meeting starting at 9:00 AM. The meeting will be held via Zoom and in person at the Board Chambers at 701 Ocean Street, Rm 525.
Tue, June 10 - Board of Supervisors Last Day Budget Hearings starting at 1:30 PM. The meeting will be held via Zoom and in person at the Board Chambers at 701 Ocean Street, Rm 525.
Wed, June 11 - Office Hours from 1 PM to 3 PM. Come visit me at the Sheriff's Center, 5200 Soquel Ave, Santa Cruz CA 95062. Bring your questions and meet with me one-on-one. As always, first come first served.
Sat, June 14 - Floral Park Pollinator Hedgerow Project, 9 AM - Noon. Our final volunteer work day for this project will take place this coming Saturday. The pollinator hedgerow at Floral Park will provide a landing pad/ nesting site for birds and nectar for pollinators. If you'd like to join us, please email: volunteer@scparks.com
Mon, June 16 - East Cliff Parkway Town Hall, 6 PM - 7PM, Simpkins Family Swim Center, 979 17th Ave, Santa Cruz, CA 95062 or on Zoom at this link: https://us06web.zoom.us/j/96708318897. We will review results from the recent survey and go over the new proposed striping plan for East Cliff Parkway. This will be a great opportunity to dialogue with Public Works and my office about the proposed design.
Tue, June 24 - County Parks Moran Lake Meeting, 5:30 PM - 7:00 PM, Simpkins Family Swim Center, 979 17th Ave, Santa Cruz, CA 95062. County Parks recently completed a wind study for the Moran Lake monarch habitat. The results of the study will be presented at this meeting and staff will share information about how the study fits into the monarch habitat management plan. |
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