Title
Chief Administrative Office recommending the Board consider recommended changes to the County of El Dorado Budget for Fiscal Year 2022-23 and direct staff to return on September 27, 2022, with a Budget Resolution, Budget Amendment, and corresponding Personnel Allocation Changes Resolution based on discussion and direction received during this item.
FUNDING: Various; Countywide Budget Consideration.
Body
DISCUSSION / BACKGROUND
The Board conducted the budget hearing and approved the Fiscal Year (FY) 2022-23 Recommended Budget on June 7, 2022, with Legistar item 22-0973. 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 in order 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.
The FY 2021-22 financial records have closed as of September 2, 2022. 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 and actual numbers will be adjusted after the closing of the financial records except for the General Fund. The General Fund incorporates actual fund balance amounts.
Staff have prepared a recommended Adopted Budget for Board consideration and review. The documents outlining the proposed changes to the Recommended Budget were made available to the public through the El Dorado County website on September 14, 2022. The Budget documents, linked to this Legistar item, contain an updated budget memo, budget summary, and department recommended Adopted Budget narratives.
The Recommended Adopted Budget for all Governmental Funds for FY 2022-23 is $952.3 million, which is $87.4 million (9%) more than the FY 2022-23 Recommended Budget of $864.9 million. Total General Fund appropriations are recommended at $428.3 million, which is $30.7 million (8%) more than the FY 2022-23 Recommended Budget of $397.6 million. All increased appropriations are offset by revenues. The increases can primarily be attributed to the use of increased fund balance across all funds, of which $22 million is from the General Fund and $12.5 million from the Health and Human Services Agency. The recommended changes to the budget represent an effort to update state and federal funding with actual allocations and fund balance amounts to updated projections while responsibly funding Board policies and priorities. The recommended changes primarily represent an effort to prepare the County for a possible recession by increasing contingencies and reserves in order to ensure the Board has flexibility to cover mandated services in the event of a loss of discretionary revenue, and now, the potential impacts of the Mosquito Fire.
The Chief Administrative Office will return on September 27, 2022, with the formal budget resolution, a budget amendment reflecting all directed changes to the budget and adjusting fund balance amounts to actuals, an amendment to the personnel allocation, and an updated fixed asset list for Board adoption based on discussion and direction received during this item.
ALTERNATIVES
The Board can direct staff to include revisions to the recommended Adopted Budget for inclusion in the Adopted Budget.
PRIOR BOARD ACTION
See above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
All Departments have participated in the development of FY 2022-23 Budget.
FINANCIAL IMPACT
As detailed in the Budget documents.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
CONTACT
Don Ashton, MPA
Chief Administrative Officer