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Community Development Finance and Administration, a division of the Chief Administrative Office, recommending the Board approve and authorize the Chair to sign a budget transfer increasing the Fiscal Year 2023-24 budget for operating transfers in to the General Fund by $1,885,000, with corresponding changes to the budgets for Department of Transportation, Environmental Management and Planning and Building Department, Airports Division due to a change in methodology in cost recovery. (4/5 vote required)
FUNDING: Road Fund, CSA 10 Funds, CSA 3 Funds, Internal Service Charges, and General Fund.
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DISCUSSION / BACKGROUND
Community Development Finance and Administration (CDFA), a division of the Chief Administrative Office, serves three departments: Department of Transportation, Planning and Building, and Environmental Management. In previous fiscal years, CDFA costs were recovered by direct charging the departments served based on hours worked for each department.
Per direction from the Auditor’s Office, CDFA will not be direct charging departments going forward, but will instead be charged as part of the Countywide Cost Recovery Plan (Cost Plan). Due to the methodology for calculating the Cost Plan, there are two years in which there will be no charges from CDFA to the departments, so the Fiscal Year 2023-24 budget for the above departments did not include any way to account for these costs.
It has since been determined that it would be prudent to transfer a projected amount for each department to the General Fund in the current year to mitigate the impact on future years’ budgets when CDFA costs begin to be charged in the Cost Plan. Additionally, this will ensure that the indirect cost rate that is used to bill for Department of Transportation projects with outside funding is largely consistent year-over-year.
The projected amounts for each department are as follows:
Department of Transportation: $1,500,000
Fleet: $150,000
Environmental Manage...
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