Title
Community Development Agency, Administration and Finance Division, recommending the Board:
1) Approve and authorize the Chair to sign a budget transfer adjusting various program budgets for Fiscal Year 2015/16 to accommodate projected expenditures based on current projections. This is a standard annual process taken to accurately reflect adjustments noted during the mid-Fiscal Year period (total transfer: $16,764,292); and
2) Approve and authorize the Chair to sign a budget transfer increasing revenues and appropriations in the Fleet Service budget by $97,061 in order to reimburse Fleet Services for the purchase of three vehicles totaling $97,061 for the new resident deputy positions. (4/5 vote required)
FUNDING: Various (see detail below).
Body
DEPARTMENT RECOMMENDATION
Community Development Agency, Administration and Finance Division, recommending the Board approve and authorize the Chair to sign a budget transfer adjusting various program budgets for Fiscal Year (FY) 2015/16 to accommodate projected expenditures based on current projections.
DISCUSSION / BACKGROUND
Community Development Agency Budget Transfer
As each fiscal year unfolds, actual activity can vary from the budget proposed by departments for a variety of reasons, including increased workload volume, unanticipated changes in project timing, award of grant funding, and refinement in funds available following the close of the prior fiscal year's accounting records. As standard practice, the Community Development Agency (CDA) proposes the Board make adjustments to its budget to best align with projected actual activity. The adjustments proposed maintain the total bottom line dollar amounts appropriated by the Board in its Adopted FY 2015/16 Budget.
Long Range Planning - HCED Affordable Housing
Budgeted Use of Fund Balance and Designations of Fund Balance both exceed the actual fund balance available on July 1, 2015; both budgeted amounts need to be reduced to reflect the actual amount available. This will allow a journal entry to post which will designate funds for future use in this program.
County Engineer
Due to an increase in work for the County Engineer function, Transportation Division and Long Range Planning Division staff have charged more time to the program. In addition, there are increased charges for collections activities by the County's Revenue Recovery Unit. These factors result in a projected increase of $205,000 in appropriations for the County Engineer program, which is offset by an increase of $205,000 in revenues for the program.
Cemetery Operations
Due to a projected increase in CDA Administration allocation costs, the Cemetery Operations are projected to require a $1,700 increase in appropriations, which is offset by an increase in revenue from charges for services of $1,700 based on actual year-to-date amounts.
Road Capital Improvement Program
Due to changes in the schedule of various projects in the County's Road Capital Improvement Program (Road CIP), adjustments in appropriate funding sources are needed to reflect anticipated actual activity. For projects and reimbursement agreements with advanced schedules, funding is increased; for projects with delayed schedules, a like amount of funding is decreased and will be reprogrammed in the appropriate fiscal year according to the updated project schedules. Affected funds held by the County include the 2004 General Plan (GP) Traffic Impact Mitigation (TIM) Special Revenue Fund, the 2004 GP El Dorado Hills TIM Special Revenue Fund, and the 2004 GP Silva Valley Interchange TIM Special Revenue Fund.
Transportation Operations (Road Fund)
Primarily due to a shift in staff resources to meet development-related workload, revenue from the County Engineer program and the Georgetown Airport Capital Improvement Program is increasing by $195,600, and Use of Fund Balance is decreasing by ($89,820) for a net increase in revenues of $105,780. This is offset by a decrease (negative expenditure) in the billing of staff charges to the CIP program in the amount of $105,780.
Placerville Airport Capital Improvement Program
Revenues from State Aviation funds is to be increased by $7,831, offset by a decrease in charges to the County Accumulative Capital Outlay of ($7,831), resulting in a net zero change in revenues.
Georgetown Airport Capital Improvement Program
Due to a change in timing of Georgetown Airport Capital Improvement Program projects, additional expenditures and revenues need to be recognized in the current fiscal year. Appropriations for Professional & Specialized Services are increasing by $76,520 and Interfund Expenditures for Road Fund staff charges are increasing by $600, which are partially offset by a reduction in Fixed Asset: Design Services in the amount of ($5,000). The net increase in appropriations is balanced by an increase in revenues from State Aviation funds, Federal Aviation Administration funds, and County ACO funds in the total amount of $72,120.
Administration and Finance Division & Environmental Management Division - CSA #10 Union Mine Closure/Post Closure
Minor adjustments in appropriations and revenues for Administration and Finance in the amount of $11,700 are necessary to reflect actual operating activity for the fiscal year. Additionally, a decrease of ($135,500) in appropriations not needed in the current fiscal year for an electronic permitting system will be shifted to the Environmental Management Division's CSA #10 Union Mine Closure/Post Closure fund to maintain an adequate level of reserve funding for future closure costs at the landfill, as required by the State. This is offset by a commensurate reduction in revenue from CSA #10 in the amount of ($135,500).
The $135,500 adjustment will be reflected in the Union Mine fund's Designations of Fund Balance, funded by CSA #10.
Development Services Division - Building Services & Commercial Grading Special Revenue Account
Building Services revenues need to increase by $10,000 for a projected increase in revenues from the Commercial Grading Special Revenue Fund. This increase is offset by a decrease of ($10,000) in the budgeted revenue from Grading Applications based on current projections, for a net zero change.
Increased Time & Materials revenue in Commercial Grading of $10,000 will be offset by a commensurate transfer of $10,000 to Building Services.
Development Services Division - Planning Services & Planning Projects Special Revenue Account
Increased revenue activity in the Planning Projects Special Revenue Account of $192,000 requires a commensurate increase in appropriations to transfer those funds to Planning Services in the Development Services Division. For Planning Services, revenue from the special revenue account will be increased, with a like reduction in other revenue sources for a net zero change to total budgeted revenue.
Long Range Planning Division
An increase in funding for work performed on the County Engineer program by Long Range Planning staff of $10,000 is needed along with a corresponding increase of $10,000 for CDA administration allocation charges.
Environmental Management Division - CSA #10 Clean Tahoe Program
An increase in budgeted appropriations is needed for the Tahoe Clean Program in the amount of $804 for Other Governmental Agencies in order to pass through revenues to the Clean Tahoe Program. This is a result of a projected increase in budgeted Special Assessment revenue in the amount of $804.
Environmental Management Division - CSA #10 Waste Management Plan AB939
Budgeted appropriations need to be increased in the amount of $8,000 to pass through revenues to the City of South Lake Tahoe, based on the projected increase in Special Assessment revenues of $8,000.
Environmental Management Division - CSA #10 Solid Waste
Use of Designations needs to be decreased by ($126,891) and Use of Fund Balance needs to be increased by $126,891 to reflect the actual amount of designated fund balance available at the beginning of FY 2015/16. There is no net change in revenues or appropriations.
Zones of Benefit CSA #9 Administration
To accommodate unplanned revenue from the newly-formed Carson Crossing Drainage Zone of Benefit, CSA #9 Administration requires a reduction in Use of Fund Balance of ($7,000) and a commensurate increase in revenue.
Carson Crossing Drainage Zone of Benefit - CSA #9
This zone of benefit was established after the FY 2015/16 budget was approved. A budget needs to be established in order to allow the operation of the Carson Crossing Drainage zone of benefit. Budgeted revenues are proposed at $35,383, with a like amount of appropriations for administrative and special project expenditures.
Budget Transfer for Sheriff's Department Vehicle Purchases
During the finalization of the FY 2015/16 Budget, the Board approved the Sheriff's request for three additional Police Interceptor Sport Utility Vehicles. The proposed budget transfer moves the approved appropriations between funds to allow for correct accounting of the vehicle purchases and capitalization through Fleet Services. Funding for the purchase will continue to be provided by the Sheriff's Department.
ALTERNATIVES
The Board may elect not to approve the budget transfers as proposed, although proper accounting for operating and capital improvement activity could be jeopardized. All proposed adjustments are necessary to accurately reflect the current fiscal year's activity.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Sheriff's Department
CAO RECOMMENDATION
Chief Administrative Office concurs with staff's recommendations.
FINANCIAL IMPACT
The proposed budget transfers result in no increase to Net County Cost. All increases in expenditures are funded by commensurate offsets or additional revenue, with the exception of the 2004 GP Silva Valley Interchange TIM fund, which is proposed to increase its Use of Fund Balance by $2,050,000. As the sole purpose of the fund is the provision of the Silva Valley Interchange Project, staff recommends expending fund balance to accommodate the project's accelerated delivery schedule.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on the original budget transfers.
2) The Clerk of the Board will forward the budget transfers to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Kate Sampson, Assistant Director of Administration & Finance
Community Development Agency