Title
Chief Administrative Office recommending the Board approve a budget transfer recognizing unexpected settlement revenue and budgeting a contribution to the El Dorado County Resource Conservation District and Georgetown Divide Resource Conservation District for adjustments based on growth in assessed value per the agreements approved with Legistar 16-0683, for the Fiscal Years 2017-18 through (4/5 vote required).
FUNDING: General Fund.
Body
DISCUSSION / BACKGROUND
On June 28, 2016 with Legistar item 16-0683, the Board approved Agreements with the El Dorado County Resource Conservation District and Georgetown Divide Resource Conservation District in the amount of $325,400 each for a total cost of $813,500 for a term to expire June 30, 2021 to identify responsibilities and establish areas of cooperative effort for all parties regarding erosion, sediment control and watershed management. The agreements included an advance of funds for FY 2017-18 through FY 2020-21 totaling $650,800. Beginning in FY 2017-18 through FY 2020-21, per the contract the annual allocation amount is to be adjusted based on the change in assessed value; however, the payments to the Resource Conversation Districts (RCDs) for FY 2017-19 thru FY 2020-21 did not include this annual adjustment.
Staff have met with RCD staff and determined the following adjustment calculations:
|
|
Prior Year Amount |
Increase in Assessed Value |
New Value |
Difference from $81,350 |
|
FY 2017-18 |
$81,350.00 |
5.14711% |
$85,537.17 |
$4,187.17 |
|
FY 2018-19 |
$85,537.17 |
5.66583% |
$90,383.56 |
$9,033.56 |
|
FY 2019-20 |
$90,383.56 |
5.85142% |
$95,672.29 |
$14,322.29 |
|
FY 2020-21 |
$95,672.29 |
4.02290% |
$99,521.09 |
$18,171.09 |
|
Due to RCD per District |
$45,714.11 |
|
Total Due to RCD for both Districts |
$91,428.23 |
A budget transfer has been prepared to budget the $91,429 contribution to the RCD in non-departmental expenses where General Fund contributions are budgeted. To balance the increased appropriations in non-departmental expenses the attached budget transfer increases miscellaneous revenue in the General Fund due to a payment received as a result of the State of California ex rel. OnTheGo Wireless, LLC v. Cellco Partnership d/b/a Verizon Wireless, et al. settlement that was discussed by the Board on 9/1/2020 with closed session item 20-1147. Any additional payments made to the county as a result of this settlement will be deposited in the General Fund and accounted for in the mid-year report adding to estimated fund balance at the end of the year.
ALTERNATIVES
The Board could choose not to approve the use of the received miscellaneous revenue to fund the contribution to the RCD, and direct staff to return with a revised budget transfer. The RCD contribution due to change in assessed value is based on a Board approved agreement expiring in June 2021.
PRIOR BOARD ACTION
See above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
El Dorado County Resource Conservation District and Georgetown Divide Resource Conservation District
FINANCIAL IMPACT
If approved, the budget transfer increases revenues and appropriations in the General Fund by $91,429, as the contribution to the RCD and settlement revenue were not included in the FY 2020-21 Adopted Budget. The unplanned settlement revenue balances the increased contribution to the RCD which means that contingency will not need to be lowered to balance the increased appropriations. Contributions to the RCDs will be budgeted in the FY 2021-22 with the budget process, as staff are already working with the RCDs to draft a new agreement as the current agreement expires on June 30, 2021.
CLERK OF THE BOARD FOLLOW UP ACTIONS
If approved, obtain the Chair’s signature on the budget transfer form and return to the Chief Administrative Office for processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Emma Owens, Management Analyst