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 adopted Fiscal Year 2023-24 Budget to adjust fund balance amounts and corresponding balancing entries to reflect FY 2022-23 ending fund balances and adjust budgeted Appropriation for Contingency amounts. (4/5 vote required)
FUNDING: Permit revenues, State surcharge fees, Grants.
Body
DISCUSSION / BACKGROUND
The Air Quality Management District's Board of Directors conducted a Budget Hearing on the District's recommended Fiscal Year (FY) 2023-24 budget on June 6, 2023. The Board then adopted the recommended budget on June 20, 2023. Attachment A consists of the Adopted Budget documents that were posted to the District's webpage after the Board's approval.
On September 14, 2023, the County's Auditor-Controller finalized the FY 2022-23 financial records, and the final year-end fund balances were calculated. This item makes adjustments to the Adopted AQMD FY 2023-24 Budget based on these year-end fund balances. The recommended revisions are outlined in Attachment B for Board review and approval for inclusion in the FY 2023-24 Adopted Budget for the District. These adjustments require a 4/5 vote as these changes are being made after the District's budget was adopted by the Board on June 20, 2023. Budget transfer forms with the recommended changes are included as Attachment C.
The recommended changes increase the use of the District's fund balances for the four sub-funds by a total of $32,315. The change in fund balance is largely in the District's Carl Moyer Grant account ($163,464 increase), mainly due to supply chain issues which have delayed several school district's grant-funded buses from being delivered and funded. There are smaller fund balance adjustments to the AB923 account ($96,776 decrease), the AB2766 account ($52,122 decrease), and the District's operations account ($9,260 increase), due to the changes in the timing of funding and expenditures in miscellaneous grant programs and slight variances in projected operational costs. The District is requesting that the available fund balances in each account be balanced by increasing or decreasing the budgeted expenditures available for appropriation for contingencies. Additionally, we are budgeting the use of fund balance and appropriation for contingencies for the District's "Lake Tahoe Air Basin" account, which is a stale account the District is working on closing and distributing the remaining funds to the correct account(s).
ALTERNATIVES
The Board could direct AQMD to make changes elsewhere in the budget.
PRIOR BOARD ACTION
June 6, 2023 - Legistar #23-0048 - Air Quality Management District budget hearing on the Fiscal Year 2023-24 recommended budget.
June 20, 2023 - Legistar #23-0048 - Board approved Fiscal Year 2023-24 recommended budget and signed Resolution 089-2023.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
None
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
This item correctly appropriates the true available fund balance of the District and makes adjustments to Appropriations for Contingencies based on year-end FY 2022-23 balances.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to:
1) Provide a Minute Order to AQMD.
2) Forward the signed Budget Transfer form to the Chief Administrative Office for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Dave Johnston, Air Pollution Control Officer