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 FY 2021-22 Budget to adjust fund balance amounts and corresponding balancing entries to reflect FY 2020-21 ending fund balances. (4/5 vote required)
Body
DISCUSSION / BACKGROUND
The Air Quality Management District's Board of Directors conducted a Budget Hearing on the District's recommended Fiscal Year (FY) 2021-22 budget on June 8, 2021. The Board then approved the recommended budget on June 29, 2021. Exhibit 1 consists of the Adopted Budget documents that were posted to the District's webpage after the Board's approval.
On September 17, 2021, the County's Auditor-Controller closed FY 2020-21, and the final year-end fund balances were calculated. This item makes adjustments to the Approved AQMD FY 2021-22 Budget based on these year-end fund balances. The recommended revisions are outlined in Exhibit 2 for Board review and approval for inclusion in the FY 2021-22 Adopted Budget for the District. These adjustments require a 4/5 vote as these changes are being made after the District's budget was approved by the Board on June 23, 2021. A County budget transfer form with the recommended changes is included as Exhibit 3.
The recommended changes increase the use of the District's fund balances for the four sub-funds by a total of $286,223. The increase in fund balance is largely in the District's Operating / Misc. Grant account ($231,343), mainly due to the vacancy in the District's Sr. Air Quality Engineer allocation for the entire fiscal year and the vacancy of one of the District's Air Quality Specialist allocations for approximately 6 months. Other small changes in the timing of funding and expenditures in miscellaneous small grant programs add to a smaller portion of these changes.
There are minor fund balance adjustments to the AB2766 account ($19,804), the AB923 account ($20,951), and the Carl Moyer grant account ($14,125), due to the minor changes in funding amounts and expenditures funded by these accounts.
The District is requesting that the additional available fund balances be balanced by increasing the budgeted expenditures available for Appropriation for Contingencies, except for one budget adjustment for Operating Transfers to County Fleet Services that was the result of a need identified after the adoption of the District's budget on June 29. The adjustment increases the budgeted transfer of funds to County Fleet by $15,000 to fund the upgrade of one gas-powered sedan to an electric sedan, as well as an upgrade from a standard pickup truck to a hybrid pickup.
ALTERNATIVES
Board could direct AQMD to make changes elsewhere in the budget.
PRIOR BOARD ACTION
June 8, 2021 - Legistar #21-0290 - Air Quality Management District budget hearing on the Fiscal Year 2021-22 recommended budget.
June 29, 2020 - Legistar #21-0290 - Board approved Fiscal Year 2021-22 recommended budget and signed Resolution 072-2021.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Transportation, CDS Administration
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Correctly appropriates the true available fund balance of the District.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to:
1) Provide Minute Order to AQMD.
2) Forward signed Budget Transfer form with approved changes to the County Auditor for input into FENIX.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Dave Johnston, Air Pollution Control Officer