Title
Air Quality Management District (AQMD) recommending the Board, acting as the AQMD Board of Directors, approve and authorize the Chair to sign a Budget Transfer amending the District's adopted Fiscal Year 2024-25 Budget to adjust fund balance amounts and corresponding balancing entries to reflect FY 2023-24 ending fund balances, and to adjust budgeted Appropriation for Contingency amounts and add budget appropriations for projects that were not completed in FY2023-24. (4/5 vote required)
FUNDING: Permit revenues, State surcharge fees, Grants.
Body
DISCUSSION / BACKGROUND
The Air Quality Management District's Board of Directors conducted a Budget Hearing on the District's recommended Fiscal Year (FY) 2024-25 budget on June 11, 2024. The Board then adopted the recommended budget on June 25, 2024. Attachment A consists of the Adopted Budget documents that were posted to the District's webpage after the Board's adoption of the budget.
On September 5, 2024, the County's Auditor-Controller finalized the FY 2023-24 financial records, and the final year-end fund balances were calculated. This item makes adjustments to the Adopted AQMD FY 2024-25 Budget based on these year-end fund balances. The recommended revisions are outlined in Attachment B, and the Budget Transfer forms are included as Attachment C for Board review and approval for inclusion in the FY 2024-25 Adopted Budget for the District. These adjustments require a 4/5 vote as these changes are being made after the District's budget was adopted by the Board on June 25, 2024.
The recommended changes increase the use of the District's fund balances for the four AQMD sub-funds by a total of $820,966. The change in fund balance is largely in the District's AB923 account ($557,983 increase), mainly due to several school district's grant-funded buses not being delivered and funded in FY 2023-24. There are smaller fund balance adjustments to the District's AB2766 account ($144,930 increase), Carl Moyer account ($69,208 increase), and the District's Operations/Miscellaneous Grants account ($48,845 increase), mainly due to a delay in the installation of new EVSE chargers and the changes in the timing of funding and expenditures in miscellaneous grant programs.
The District is recommending that the available fund balances in each account be balanced by increasing appropriations for Professional Services in the AB2766 account by $64,350 to carryover unexpended project costs from FY 2023-24, increasing appropriations for Non-County Government Grants in the AB923 account by $495,000 to carryover the unexpended bus replacement costs from FY 2023-24, and increasing appropriations for Judgement/Damages in the Operations/Miscellaneous Grants account by $7,500 for funding for the expected settlement of AB2588 potential litigation. The remaining available balance will be adjusted by increasing the appropriation for contingencies.
Additionally, based on the actual fund balance at the end of FY 2023-24, we are recommending to add the use of fund balance and appropriation for contingencies of $8,915 to the "Lake Tahoe Air Basin" countywide special revenue sub-fund, which is a stale account the District is working on closing and distributing the remaining funds to the correct parties.
ALTERNATIVES
The Board could direct AQMD to make changes elsewhere in the budget.
PRIOR BOARD ACTION
June 11, 2024 - Legistar File 24-0823 - Air Quality Management District budget public hearing on the Fiscal Year 2024-25 recommended budget.
June 25, 2024 - Legistar File 24-0823 - Board approved Fiscal Year 2024-25 recommended budget and signed Resolution 115-2024 at a second public hearing.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
None
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
This item correctly appropriates the true available fund balance of the District and makes adjustments to Appropriations for Contingencies based on year-end FY 2023-24 balances, and allows AQMD to reimburse school districts for bus replacement projects and make payments to a contracted consultant for work not completed in FY2023-24.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to:
1) Provide a Minute Order to AQMD.
2) Forward the signed Budget Transfer form to the Chief Administrative Office for processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rania Serieh, Air Pollution Control Officer