Title
Chief Administrative Office recommending the Board approve corrected budget transfer language for items included in November and December 2018 final budget amendments, and increase the General Fund Appropriation for Contingency by $93,000 to balance to previously authorized use of Contingency; balance the operating transfer account for a transfer from Special Revenue Funds (Ponderosa Quimby Fee) to the Accumulative Capital Outlay Fund; and decrease contingency and increase contributions in the SMUD Special Revenue Fund to provide the correct pass through funding to the Georgetown Public Utility District. (Attached worksheet, 4/5 vote required).
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DISCUSSION / BACKGROUND
During November and December of 2018, several amendments to the FY 2018-19 Adopted Budget were submitted for approval, to incorporate year-end final fund balance for the General Fund and to allocate those funds to necessary uses in the FY 2018-19 budget. Several non-policy related amendments were also submitted and approved in order to include new or updated information in the FY 2018-19 budget and adjust related revenues and appropriations. Three technical errors have been identified within the language or presentation of those amendments. While the intent of the Board in approving the amendments is clear, corrections are recommended here to ensure accurate language and understanding of the original recommended actions. Additionally, upon final review of the combined budget amendments, it was determined that the Appropriation for Contingency was reduced in two instances to account for $93,000 in expenses added to one department, such that the Appropriation for Contingency is now under budgeted by $93,000. The recommended action will increase the General Fund Appropriation for Contingency and balance the FY 2018-19 Budget.
Additionally, one correcting amendment is recommended to balance the Operating Transfer for use of Special Revenue Funds (Ponderosa Quimby Fee), for project work in the ACO Fund, as reflected on the attached worksheet.
Finally, the annual SMUD funding received varies based on the CPI and more revenue was received in FY 2018-19 than anticipated. A percentage of this revenue is passed through to the Georgetown Public Utility District (GPUD). The attached budget transfer decreases contingency in the SMUD special revenue account by $2,000 and increases the contribution to GPUD by the same amount.
ALTERNATIVES
The Board could choose to not approve the budget amendment and clarifying language; however, this could lead to a mis-interpretation or improper recording of the intent of the budget actions previously approved. If the GPUD amendment is not processed, the correct payment will not be able to be made in FY 2018-19.
PRIOR BOARD ACTION
Amendments to the FY 2018-19 Budget were approved on November 20, 2018 (Legistar #18-1767) and December 11, 2018 (Legistar #18-1860).
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
The first recommended amendment will increase the General Fund Appropriation for Contingency by $93,000, correcting a current out-of-balance amount relative to a previously approved use of Contingency.
The second recommended amendment will increase the transfer out of Special Revenue Funds (Ponderosa Quimby Fee), to balance the Operating Transfer account. Expenses are already approved in the ACO Fund.
The third amendment will decrease contingency in the SMUD special revenue fund and increase the contributions to non-county government agencies by $2,000 to allow for the full payment to GPUD to process.
The remaining recommendations are to clarify or correct language related to amendments already approved by the Board.
CLERK OF THE BOARD FOLLOW UP ACTIONS
None at this time.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Shawne Corley, Assistant CAO