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 2025-26 Budget to adjust fund balance amounts, two budgeted grant appropriation amounts, and balanced by adjustments to Appropriation for Contingency amounts. (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) 2025-26 budget on June 10, 2025. The Board then adopted the recommended budget on June 24, 2025. 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 August 28, 2025, the County's Auditor/Controller finalized the FY 2024-25 financial records, and the final year-end fund balances were calculated. This item makes adjustments to the Adopted AQMD FY 2025-26 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 2025-26 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 24, 2025.
The recommended changes increase the use of the District's fund balances for the four AQMD sub-funds by a total of $244,205. The changes in budgeted Use of Fund Balance are:
- An increase of $60,308 in the District's Operations/Miscellaneous Grants subfund, mainly due to staff vacancies during FY2024-25 and the corresponding salary savings. This increase will be offset by an increase in budgeted Appropriation for Contingencies.
- A decrease of ($18,698) in the AB2766 Grant subfund, due to an increase in estimated costs for EVSE repair / prep costs and EVSE electricity costs. AQMD staff found that in the FY2013-14 AQMD budget, there were unused funds budgeted into Designated Fund Balance instead of Appropriations for Contingencies (of which $86,761 is remaining in Designated Fund Balance). AQMD currently proposed to move this out of Designations for FY2025-26. These 2 funding changes will be offset by an increase in budgeted Appropriations for Contingencies.
- An increase of $103,268 in the AB923 Grant subfund, primarily due to increased interest revenue and decreased Moyer grant match requirements in FY2024-25, this will be offset by an increase in budgeted Appropriations for Contingencies.
- An increase of $100,255 in the Carl Moyer Grant subfund, generally due to two (2) grants not being closed out in FY2024-25, this increase is offset by increases of the grant amounts in the Grant: Non-Government Agency and Grant: Government Agency Non-County object codes, and a small decrease to the budgeted Appropriations for Contingencies
Additionally, based on the actual fund balance at the end of FY 2024-25, we are recommending to add the Use of Fund Balance and Appropriation for Contingencies of $9,393 to the Lake Tahoe Air Basin countywide special revenue sub-fund, which is a stale account that 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 10, 2025 - Legistar File 25-0984 - Air Quality Management District budget public hearing on the Fiscal Year 2025-26 recommended budget.
June 24, 2025 - Legistar File 25-0984 - Board approved Fiscal Year 2025-26 recommended budget and signed Resolution 085-2025 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 several Grant object appropriations and Appropriations for Contingencies based on year-end FY 2024-25 balances.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to:
1) Provide a Minute Order to AQMD.
2) Obtain the Board Chair's signature on the Budget Transfer form and forward to the Chief Administrative Office for processing and posting by the County Auditor/Controller.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rania Serieh, Air Pollution Control Officer