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Community Development Agency, Administration and Finance Division, recommending the Board approve and authorize the Chair to sign a Budget Transfer which:
1) Establishes an operating budget for Fiscal Year 2016/17 for the Rare Plant Preserve Endowment Fund to accommodate projected expenditures, and
2) Transfers appropriations in the County Service Area 10 Liquid Waste Fund between accounts to accommodate the purchase of replacement equipment to properly maintain the Union Mine Landfill & Liquid Waste Treatment Facility
(4/5 vote required)
FUNDING: Rare Plant Mitigation Fees, Interest, and County Service Area 10 Benefit Assessment Fees.
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DEPARTMENT RECOMMENDATION
Community Development Agency (CDA), Administration and Finance Division, recommending the Board approve and authorize the Chair to sign a Budget Transfer which:
1) Establishes an operating budget for Fiscal Year (FY) 2016/17 for the Rare Plant Preserve Endowment Fund to accommodate projected expenditures, and
2) Transfers appropriations in the County Service Area (CSA) 10 Liquid Waste Fund between accounts to accommodate the purchase of replacement equipment to properly maintain the Union Mine Landfill & Liquid Waste Treatment Facility (Union Mine Facility).
DISCUSSION / BACKGROUND
Development Services - Rare Plant Preserve Endowment Fund
The Rare Plant Preserve Endowment Fund (Endowment Fund) was established to fund the operation and maintenance of rare plant preserve lands acquired with Rare Plant Mitigation Fees. Funding for the Endowment Fund is from a predetermined percentage of the Rare Plant Mitigation Fees collected pursuant to Ordinance 4500 and Resolution 205-98. Fee revenues and interest earnings are anticipated to be approximately $65,000 for FY 2016/17 which is sufficient to fund the proposed activities.
On July 21, 2015 (Item 20), the Board approved a Cooperative Agreement with the U.S. Bureau of Land Management (BLM) to provide funding for a Preserve Manager for the Pine Hill Preserve to meet the goals and objectives of the General Plan Policy 7.4.1.1. The County was to provide $25,000 annually for a five-year period. Payments for 2016 and 2017 totaling $50,000 are due to be paid to BLM in FY 2016/17.
The BLM will be conducting fuel management on parcels in the Pine Hill Preserve in Cameron Park. There are five sites determined to be of immediate priority, with other sites to be treated later in the season. The estimated cost of the fuel management activities for FY 2016/17 is $15,000. CDA is in the process of negotiating an agreement with the BLM for this activity.
Appropriations for this Endowment Fund were not able to be established through the normal budgeting processes due to the short comings of the County's current budgeting program, BPREP. These shortcomings in the system necessitate the approval of this Budget Transfer in order to establish an operating budget for this Endowment Fund.
Environmental Management - CSA 10 Liquid Waste Fund
The approved budget for the CSA 10 Liquid Waste Fund included $76,000 in Maintenance-Equipment Parts to purchase a replacement Rock Catcher and a replacement Screen Drive for the Union Mine Facility. After reviewing instructions previously provided by the County Auditor/Controller's Office, it has been determined that the appropriate expenditure classification for these purchases is under the fixed assets category since the replacement of the equipment adds value and should be capitalized. Approval of the Budget Transfer will allow the purchase of the replacement equipment to be recorded in the appropriate account according to Generally Accepted Accounting Principles.
ALTERNATIVES
The Board may elect not to approve the Budget Transfer as proposed. Alternate funding would need to be identified in order to reimburse the BLM according to the terms of the existing Agreement, and to properly maintain the Union Mine Facility.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
BLM
CAO RECOMMENDATION
It is recommended that the Board approve this item.
FINANCIAL IMPACT
The proposed Budget Transfer results in no increase to Net County Cost. All increases in expenditures are funded by commensurate offsets or additional revenue.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on the Budget Transfer.
2) The Clerk of the Board will forward the Budget Transfer to the Auditor/Controller's Office for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Kate Sampson, Assistant Director of Administration & Finance
Community Development Agency