Title
Chief Administrative Office recommending the Board:
1) Receive a presentation and provide direction on recommended changes to the County of El Dorado Budget for Fiscal Year (FY) 2024-25;
2) Direct staff to reduce the FY 2024-25 contribution to the Capital Projects Designation to fund the Resource Conservation Districts funding increase ($264,737), as included in the recommended changes;
3) Adopt and authorize the Chair to sign Resolution 151-2024, to outline the process the Board will use to make an annual contribution to the El Dorado Hills County Water District, in the amount equivalent to the Educational Revenue Augmentation Fund (ERAF) obligation on the County’s base property tax transfer resulting from the dissolution of the Latrobe Fire Protection District;
4) Direct staff to return on September 24, 2024, with a Budget Resolution, Budget Amendment, and corresponding Personnel Allocation Changes Resolution based on discussion and direction received during this item; and
5) Direct staff to return to the Board on November 5, 2024 to discuss the structural sustainability of the budget.
FUNDING: Various; Countywide Budget Consideration.
Body
DISCUSSION / BACKGROUND
The Board conducted the budget hearing and approved the Fiscal Year (FY) 2024-25 Recommended Budget on June 11, 2024, with Legistar file 24-0679. State law requires formal budget adoption no later than October 2nd. Though the Board technically adopted the Recommended Budget in June, El Dorado County’s practice is to revise the Recommended Budget after the close of the financial records each year to file an Adopted Budget with the State that includes adjusted final fund balances and addresses department needs identified after approval of the Recommended Budget and makes necessary adjustments due to State budget impacts.
Staff have prepared a recommended Adopted Budget for Board consideration and review. The documents outlining the proposed changes to the Recommended Budget are attached to this item as Attachment A and a link to the public budget page is Attachment B. The Budget documents contain an updated budget memo, budget summary, department-recommended Adopted Budget narratives and detail schedule of department budgets by object and fund.
The FY 2023-24 financial records were finalized as of September 5, 2024. As the records have not closed in time for departments and the Chief Administrative Office to incorporate those amounts into the Recommended Adopted Budget documents, all fund balance amounts are projections, except for the General Fund which reflects actual fund balance.
The Chief Administrative Office will return on September 24, 2024, with the formal budget resolution, a budget amendment reflecting all Board-directed changes to the budget and adjusting fund balance amounts to actuals, an amendment to the personnel allocation, updated fixed asset list, and Accumulative Capital Outlay Workplan for Board adoption based on discussion and direction received during this item.
Lastly, during the Budget Hearing, the Board directed to include an allocation of $109,200 to the El Dorado Hills County Water District for the Educational Revenue Augmentation Fund (ERAF) encumbrance equivalent amount in the FY 2024-25 Adopted Budget. The Adopted Budget changes include an allocation of $111,119 for the contribution to El Dorado Hills County Water District, in the amount equivalent to the ERAF obligation on the County’s base property tax transfer resulting from the dissolution of the Latrobe Fire Protection District. The budgeted amount is the actual FY 2024-25 amount based upon the newly released Revenue Estimate Letter for the El Dorado Hills County Water District. The Chief Administrative Office has prepared a Resolution for Board adoption outlining the history and annual process for the annual ERAF encumbrance equivalent amount contribution to El Dorado Hills County Water District.
ALTERNATIVES
The Board can direct staff to include revisions to the recommended Adopted Budget for inclusion in the Adopted Budget. The Board could also not adopt the Resolution and provide alternative direction to staff.
PRIOR BOARD ACTION
Legistar file 24-0679 - June 11, 2024 - Board approved the FY 2024-25 Recommended Budget
OTHER DEPARTMENT / AGENCY INVOLVEMENT
All Departments have participated in the development of FY 2024-25 Budget.
FINANCIAL IMPACT
As detailed in the Budget documents.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair's signature on the Resolution.
CONTACT
Sue Hennike, Assistant Chief Administrative Officer