Nevada County Unveils $415 Million Budget Plan for 2025/26

NEVADA CITY — The Nevada County Board of Supervisors met Tuesday to hold a public hearing on the proposed budget for the 2025/26 fiscal year. The $415 million proposal reflects a 7.3% increase in expenditures compared to last year’s budget, even though the county underspent its allocation last year. Revenue projections total $392 million, with the gap expected to be covered by carryover funds from the previous year and additional sources like grants. Property tax income is set to rise, though at a slower pace than in previous years.

Chief Fiscal Officer Erin Mettler presented the budget details to the board. She highlighted that 48% of revenue originates from state or federal sources, primarily supporting Health and Human Services ($118 million) and roads and transit ($29 million). Taxes account for 21% of income, with property tax contributing the largest share at $59 million. Smaller revenue streams include internal fund transfers, general liability premiums, vehicle rentals, rents, interest, licenses, permits, settlements, airport fuel sales, fines, and forfeitures.

Moving to expenditures, salaries and benefits form the largest category at 40% of the budget. Salaries total $87 million, with $19 million for medical benefits, $3 million for insurance, and $45 million for retirement. County staffing has grown steadily over the past five years, adding 24.5 positions in the proposed budget, following a decade of stability. Mettler explained that after the 2008 recession, the county downsized and relied on contractors for mandated programs due to cost savings. Recent reviews have shifted some roles back to county employees.

Services and supplies represent 32% of spending, covering Health and Human Services contractors ($61 million), road maintenance and fleet costs ($18 million), and employee insurance premiums ($6.4 million). “Other charges,” including jail medical services, debt service, trial court costs, and solid waste monitoring, account for 20% of expenditures. Equipment and infrastructure investments, such as replacements, maintenance, and construction, are budgeted at $32 million, or about 8% of total spending.

The county’s general fund balance, which has risen over the past decade, is projected to decrease from $48.3 million to $43.8 million by the end of the 2025/26 fiscal year. Several ongoing and planned projects will draw on these reserves, contributing to the reduction. Mettler emphasized that total fund balances remain higher, estimated at over $71 million, but the general fund specifically will see a decline.

Mettler addressed challenges posed by state and federal budget uncertainties, noting that the proposal uses “strategic and conservative estimates” for grants, realignment-funded services, and fund balances. The county has added contract language allowing withdrawal if funding falters. On economic concerns, she stated, “We are not planning on a recession, but we are prepared if we need to quickly pivot.”

Supervisors asked clarifying questions and generally supported the budget. Supervisor Robb Tucker raised concerns about its long-term sustainability, particularly regarding pension liabilities. A public commenter agreed, suggesting the budget should align spending with the $392 million revenue projection. Still, the board unanimously passed a motion of intent to adopt the proposed budget.