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Community Development Agency, Administration and Finance Division, recommending the Board authorize the Chair to sign a budget transfer in the amount of $623,911 that allows ongoing operational, maintenance, and prior year corrected costs to be paid by the Rare Plant Preserve Endowment Fund, per the terms of Resolution 205-98. (4/5 vote)
FUNDING: Existing Development Fees, Interest Income and an Operating Transfer for a correction in prior year costs.
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DEPARTMENT RECOMMENDATION
The Community Development Agency, Administration and Finance Division (Agency) recommends that the Board approve a budget transfer adding revenues and appropriations to the Rare Plant Preserve Endowment Fund in the amount of $623,911 in order to pay an outstanding claim and to correct prior fiscal year mispostings of costs to the incorrect fund.
DISCUSSION / BACKGROUND
In the budget addenda for Fiscal Year 2015/16, the Agency reduced the budgeted appropriations by $250,000 for the Ecological Preserve Fee Special Revenue Fund (Special Revenue Fund), recognizing that the associated operational costs are to be paid by the Rare Plant Preserve Endowment Fund (Endowment Fund) per Board Resolution 205-98 (see Attachment C). At that time, Agency staff believed the Endowment Fund did not require budgeted appropriations (similar to a trust fund); however, the Auditor/Controller's office recently informed staff that current Governmental Accounting Standards Board requirements necessitate appropriations in order to expend out of an endowment fund.
The recommended budget transfer establishes appropriations for the Endowment Fund for the items removed from the Special Revenue Fund at budget addenda, in addition to appropriations to allow corrective journal entries for charges mistakenly paid by the Special Revenue Fund in prior fiscal years. These appropriations are wholly offset by an increase in revenue from development fees, interest, and an operating transfer for the correction of ...
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