Title
Department of Transportation recommending the Board approve and authorize the Chair to sign a budget transfer adjusting the budget for Fiscal Year 2025-26, increasing appropriations by $190,000, to allow for the transfer of additional revenues to fund the indirect costs into the County Engineer / Road Fund. (4/5 vote required)
FUNDING: Fees for services.
Body
DISCUSSION / BACKGROUND
Department of Transportation, County Engineer division provides civil engineering functions associated with subdivision and parcel map development, including tentative map and improvement plan check; construction inspection and contract administration; grading and site improvement plan check and inspection; and miscellaneous responsibilities. The County Engineer Org is a General Fund org as these costs must be kept separate from the Road Fund.
Staff supporting the County Engineer function are initially funded in the Road Fund, but the revenue for the billable time is posted to the County Engineer org. The costs are billed as time and materials charges to the appropriate party. A portion of these costs are the indirect costs for the Road Fund, which are calculated as a percentage of staff time.
The indirect portion of the revenue must be transferred to the Road Fund to ensure that the Road Fund is fully reimbursed for the expenses of this work. The billable costs have been higher than anticipated this year, and it is necessary to increase the interfund transfers by $175,000.
Additionally, the Planning and Building Department provides review of Stormwater-related issues, which is also billed to the appropriate party. The billable costs for these services are also higher than anticipated, and it is necessary to increase the intrafund transfers by $15,000 to allow for Planning and Building to be fully reimbursed.
These two transfers will be offset by an increase of $190,000 in T&M revenue.
ALTERNATIVES
The Board may elect not to approve the budget transfer as proposed, although proper accounting for the County Engineer and Stormwater would be jeopardized.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office - Community Development Finance and Administration
Planning and Building
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no Net County Cost associated with this item. Commercial Grading funds are available for Building Services purposes. The budget transfer will increase Interfund County Engineer by $175,000 and Intrafund Only General Fund by $15,000, offset by increases to T&M Project revenue.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Priority: N/A
Action Item: N/A
CONTACT
Rafael Martinez, Director
Department of Transportation