Title
Chief Administrative Office recommending the Board receive a presentation on the Fiscal Year (FY) 2021-22 Recommended Budget preparation and provide direction.
FUNDING: Countywide Budget.
Body
DISCUSSION / BACKGROUND
On October 20, 2020 with Legistar item 20-1382, the Board approved the Fiscal Year 2021-22 Master Budget Calendar. Per the budget calendar, departments submitted their budget requests in late February 2021, and Chief Administrative Office staff has been reviewing the requests and preparing a Recommended Budget to present to the Board on June 7, 2021.
The budget calendar also included an “April Special Board Meeting.” The Chief Administrative Office has prepared a presentation that outlines the Recommended Budget as it stands today including what is and is not included in the Recommended Budget currently. The Recommended Budget is still not finalized and may change slightly from what is presented today by June 7, 2021.
Per the presentation, the Recommended Budget currently plans to fund the following Board Budget Policy items:
• General Reserve ~$10 million
• Contingency ~$6 million
• Designation for Capital Projects ~$5 million
• Transient Occupancy Tax - per March 30, 2021 Board Direction
• General Fund Road Maintenance ~$3 million
The planned Recommended Budget also includes carrying over the following FY 2020-21 Budget items:
• Jail Expansion Project ~$18.5 million (grant funded)
• Broadband Grant Match ~$450,000
• Bike Park ~$2.3 million (grant funded)
• Shakori Garage Project ~$2.3 million
The Board has provided direction that impacts the FY 2021-22 Recommended Budget. The prior Board directed items included in the planned Recommended Budget include:
• Alternate Public Defender ~$1.5 million
• Public Safety Facility 1st Loan Payment ~$2.3 million
• TOT funded direction: community planning, snow plow, fire district requests, etc.
• Industrial Drive Intersection ~$620,500
• Office 365 Implementation ~$300,000
• Spring Street Replacement Facilities Planner ~$500,000
There are many future funding needs that are not currently included in the planned FY 2021-22 Recommended Budget at this time, including full funding for El Dorado Center replacement/relocation, future negotiated salary and benefit costs (compensation philosophy), additional operational costs related to the jail expansion, the Juvenile Hall replacement, Spring Street replacement costs, and body-worn cameras for Sheriff’s Office. These are items the Board may consider setting aside additional year-end fund balance to fund during the Adopted Budget in September.
Staff is seeking direction today on the annual El Dorado Hills County Water District (EDH Fire Department) General Fund Contribution of the Educational Revenue Augmentation Fund (ERAF) encumbrance equivalent amount. On June 12, 2018, the Board adopted Resolution 125-2018 (File No. 18-0922), authorizing a base property tax transfer to the El Dorado Hills Fire Department related to the Department's annexation of the Latrobe Fire Protection District service area. The resolution provides that the transfer does not include the amount of the ERAF encumbrance associated with the base revenues. The resolution includes a provision for the Board to consider the payment of the equivalent amount of the ERAF encumbrance annually as part of the County Budget process. The amount is to be calculated annually by the Auditor-Controller. The Board of Supervisors has approved payment of the ERAF amount each year following adoption of resolution 125-2018. In FY 2019-20 this amount was $81,957.
In addition to this item, the Chief Administrative Office has asked for separate Legistar items to be prepared in conjunction with this item to update the Board on the Road Fund, the Juvenile Hall project (Legistar 21-0645), and the County Airports.
ALTERNATIVES
The Board could not provide direction or receive the presentation.
PRIOR BOARD ACTION
See above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
FINANCIAL IMPACT
There is no financial impact to receiving that presentation. Any direction will be brought back to the Board for approval at the June 7, 2021 Budget Hearing as part of the Recommended Budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Sue Hennike, Deputy CAO