Title
Chief Administrative Office, Central Fiscal division and Treasurer-Tax Collector recommending the Board:
1) Approve the attached budget transfer increasing revenue and expenses in the certified access specialist (CASp) Certification and Training Fund to allow for the transfer of funds to the State and the Treasurer-Tax Collector's office based on the $4 business license fee established by State Assembly Bill 1379 (4/5 vote required); and
2) Direct the Auditor-Controller to establish two special revenue funds to replace the existing CASp Certification and Training Fund, one in the Treasurer-Tax Collectors office and one in Planning and Building to allow for proper accounting of the funds.
FUNDING: Business License Fees.
Body
DISCUSSION / BACKGROUND
On December 19, 2017 the Board adopted Resolution 199-2017 authorizing the Treasurer-Tax Collector to collect the four dollar ($4) business license fee established by State Assembly Bill 1379 and directed the Auditor-Controller to establish an interest bearing special revenue fund to be known as the CASp Certification and Training Fund, and assign responsibility for the fund to the Chief Administrative Office for budgetary purposes.
The fund was established in FY 2018-19, but did not include any budget appropriations. The County is required to remit ten percent (10%) of the fees collected to the Division of the State Architect. A budget transfer is required in order to remit the FY 2018-19 fees owed to the State. In addition, the Treasurer-Tax Collector receives 5% of the fees for administrative costs related to collecting the funds and reporting and remitting to the Division of the State Architect. The remaining funds are available for the Building and Planning Department.
Initially it was thought that the Chief Administrative Office should be assigned responsibility of the fund for budgeting purposes. However, upon further analysis and due to the collection and reporting requirements that reside with the Treasurer-Tax Collector’s office, the Chief Administrative Office is recommending that a new non-interest bearing fund be established in the Treasurer-Tax Collector's office to allow for efficient collection and reporting of the fees. The Chief Administrative Office is also recommending that a second special revenue fund be established within the Planning and Building Department for the remaining funds that are to be utilized by Planning and Building for increased certified access specialist (CASp) training and certification. This training and certification is required to facilitate compliance with construction related accessibility requirements. The Director of Planning and Building will be responsible for annual budgeting and use of these funds as well as annual reporting requirements to the Division of the State Architect. The Treasurer-Tax Collector's office will remit the 10% required to the State quarterly and retain the 5% administrative fee and move all remaining fees collected quarterly into the CASp Certification and Training fund established in the Planning and Building Department.
ALTERNATIVES
If the budget transfer is not approved, staff will not be able to remit the fees to the State and will be out of compliance with government code 4467.
If the Board chooses not to direct the Auditor-Controller to establish two new non-interest bearing special revenue funds to replace the existing special revenue fund, the process of distributing these funds and reporting on the funds will continue to be difficult and inefficient.
PRIOR BOARD ACTION
12/19/2019 Legistar Item 17-1329 - Resolution 199-2017 authorizing collection of $4 fee
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Planning and Building
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
The attached budget transfer will increase revenue and appropriations by $50,700 in the CASp Certification and Training fund to account for FY 2018-19 revenue and expenses and increase revenue and expenses by $2,000 in the Treasurer-Tax Collectors budget to allow for the receipt of the 5% administrative fee for FY 2018-19.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Forward the signed budget transfer to the Auditor-Controller.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Laura Schwartz
Chief Administrative Office
Karen Coleman
Treasurer-Tax Collector