Title
Chief Administrative Office recommending the Board:
1) Receive a budget presentation on the Fiscal Year 2020-21 Recommended Budget;
2) Approve the Fiscal Year 2020-21 Recommended Budget, including any revisions deemed necessary, for the purpose of having the authority to spend until the budget is adopted in September;
3) Approve the attached amendments to the FY 2020-21 Recommended Budget for budget revisions identified after the budget was finalized in May;
4) Authorize the Chief Administrative Office, Facilities Division, and the Department of Transportation to proceed with the Capital Projects and Road work plans as identified and approved in the Recommended Budget, with any amendments as directed by the Board, effective July 1, 2020;
5) Approve the Fixed Asset listing as identified in Attachment C and authorize the respective departments to proceed with purchases, effective July 1, 2020;
6) Authorize the Human Resources Department to proceed with filling new positions outlined below effective July 1, 2020;
7) Approve Vehicles for Permanent Assignment and Overnight Retention (Take Home-Vehicles) in accordance with Board Policy D-4, Vehicle Use, Standards, Procurement and Disposal as identified in the attached memorandum; and
8) Upon the approval of the Fiscal Year 2020-21 Recommended Budget, direct the Chief Administrative Office to return no later than June 30, 2020, with a recommendation to adopt the Fiscal Year 2020-21 Authorized Personnel Allocation Resolution, including any revisions deemed necessary and incorporating any modifications to County classification titles and allocations presented to the Board during the months of May and June.
FUNDING: Countywide Budget Approval.
Body
DISCUSSION
The Chief Administrative Office is presenting the Fiscal Year (FY) 2020-21 Recommended Budget for consideration and approval. The FY 2020-21 Recommended Budget was made available to the Board of Supervisors and the public on May 29, 2020. The Recommended Budget is attached to this Legistar item as a link, and can be found online at <https://www.edcgov.us/Government/CAO/Pages/Fiscal-Year-2020-2021-Recommended-Budget.aspx>.
Pursuant to Government Code Section 29064, "On or before June 30 of each year the board, by formal action, shall approve the recommended budget, including the revisions it deems necessary for the purpose of having authority to spend until the budget is adopted." The Chief Administrative Office therefore requests that the Board consider and approve the attached FY 2020-21 Recommended Budget, including any revisions deemed necessary, as well as authorize the Capital Projects and Road work plans, approve the fixed asset listing, and direct staff to return to the Board with a resolution to adopt the FY 2020-21 Authorized Personnel Allocation.
After the Fiscal Year 2020-21 Recommended Budget was finalized in mid-May, four revisions to the Recommended Budget were identified and have been included in Attachment B for Board approval for incorporation to the Recommended Budget. The revisions are as follows:
1. $656,000 in the Transportation - Fleet - Internal Service Fund - Fixed Assets budget to re-appropriate funding for vehicles that were listed and budgeted to be purchased in FY 2019-20 but will not be delivered by June 30, 2020;
2. $240,000 in the Transportation General Department Org - Fixed Assets budget to re-appropriate funding for equipment that was listed and budgeted to be purchased in FY 2019-20 but will not be delivered by June 30, 2020;
3. $60,000 in Coronavirus Aid, Relief, and Economic Security (CARES) Act funding for continuing operations of airports that are part of the national airport system; and
4. $25,000 revision in the Agriculture Department to purchase a generator using unclaimed gas tax funding.
In anticipation of significant revisions before adoption of the budget in response to the COVID-19 public health emergency, staff have reviewed the list of fixed assets included in the FY 2020-21 Recommended Budget and are recommending only the fixed assets included in Attachment C be authorized by the Board for the respective departments to proceed with purchases, effective July 1, 2020. Government Code 29124 (a) requires that if at the beginning of any fiscal year, the budget has not been adopted then the Board must specifically approve capital (fixed) assets in order for purchase to occur before budget adoption. The fixed assets included in Attachment C have been recommended for purchase as they are time sensitive purchases, essential for operations, or funded outside of the general fund. At this time, it is the intent that all fixed assets identified in the Recommended Budget will be approved for purchase during the adoption of the final budget, absent any significant revenue reductions and Board policy changes.
Government Code 29124 (a) also requires that “new permanent employee positions are deemed appropriated until the adoption of the budget if specifically approved by the board. For the purposes of this subdivision, the words ‘new permanent employee positions’ do not include any employee positions created in lieu of an employee position that is abolished.” As above with fixed assets, staff have reviewed all requests for new positions and are recommending only the positions necessary for operations or funded outside of the general fund be filled prior to budget revisions. The following positions are recommended by staff to be specifically approved by the Board for allocation and appointment effective July 1, 2020:
- One full time equivalent (FTE) Building Maintenance Worker I/II/Sr in the CAO Facilities Division to cover the new 108,000 square foot Public Safety Facility opened during FY 2019-20, funded by the General Fund.
- Three FTE Mental Health Clinician IA/IB/II and six FTE Mental Health Worker I/II in the Health and Human Services Agency for the Stepping-Up Initiative funded with Mental Health Services Act and Federal Medi-Cal funding.
- One FTE Sr. Veterans Service Representative in the Health and Human Services Agency Veterans Affairs recommended as a result of a capacity assessment and funded from the on-going funding allocation that would otherwise be directed to the Veterans Affairs Commission.
- Two FTE Limited Term Sheriff’s Deputy positions, based on May 5, 2020, Board of Supervisors direction funded through a Tobacco Law Enforcement grant.
- One FTE Sheriff's Technology Manager, one FTE Sheriff's Records Manager, and one FTE Manager of Public Safety Dispatching as part of changes to the Support Services Division to provide more efficient supervision to units in the division by reducing the span of control.
In addition, it is recommended that the Board approve the attached listing of permanent assignment and overnight retention of County-owned vehicles. Board Policy D-4, Vehicle Use, Standards, Procurement and Disposal, Section B.2, titled "Permanent Assignment and Overnight Retention (Take Home-Vehicles)" requires that the "initial and continued permanent assignment and overnight retention of County-owned vehicles" be approved by the Board of Supervisors annually during the budget process. The Chief Administrative Officer requires each department requesting authorization of vehicles for permanent assignment and overnight retention to submit detailed justification for the request. A summary of the current assignments are attached.
BACKGROUND
The FY 2020-21 Budget Development Master Calendar included Functional Group Budget Meetings with County Department Heads and two Board-selected Supervisors to attend the meetings as part an Ad Hoc Budget Committee.
Functional Group Budget Meetings were held the week of March 16. At these meetings, Department Heads presented information to the Ad Hoc Committee regarding major policy issues affecting their Departments, including any new legislation, supplemental budget request items, and operational efficiencies that have been identified or implemented.
It is worth noting, that as County Departments and the Chief Administrative Office began the work to finalize numbers for the FY 2020-21 Recommended Budget in Mid-March of this year, the nation began to see impacts related to the COVID-19 public health emergency. Due to timing and what will be somewhat delayed revenue impacts, making significant changes or reductions to the FY 2020-21 Recommended Budget in the months of March and April would have been premature. Therefore, the Recommended Budget presented here reflects on-going services and service levels, a largely “status quo” budget, with the understanding that additional work will need to take place over the summer in order to present a modified budget for final adoption; one which reflects the revenue and expenditure impacts associated with and as a result of COVID-19.
The Chief Administrative Office will return to the Board later in the summer for direction on budget priorities, once the impacts of the COVID-19 public health emergency are reflected in an updated state budget.
ALTERNATIVES
If a majority vote cannot be reached by June 30, 2020, per Government Code Section 29124, the Auditor shall approve payments “based on the final budget of the preceding year, excluding assets and transfers-out unless specifically approved by the board.”
CLERK OF THE BOARD FOLLOW UP ACTIONS
None.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Don Ashton, Chief Administrative Officer
Shawne Corley, Assistant Chief Administrative Officer