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Chief Administrative Office, Community Development Finance and Administration Division and the Planning and Building Department recommending the Board approve the attached budget transfer to increase revenue and appropriations in the CASp Certification and Training Fund in FY 2020-21 (4/5 vote required).
FUNDING: Business License Fees.
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DISCUSSION / BACKGROUND
State Assembly Bill 1379, "Certified Access Specialist program: funding" established a four-dollar ($4) fee to be paid any with any local business license application in order fund the facilitation of compliance with construction-related accessibility requirements, especially through the training, certification, and retention of certified access specialists (CASp).
On December 19, 2017 the Board adopted Resolution 199-2017 authorizing the Treasurer-Tax Collector to collect the fee 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 in the CAO's office. On August 13, 2019, the Chief Administrative Office returned to the Board to request that two new special revenue funds be established, one in the Treasurer-Tax Collectors office and one in Planning and Building to allow for proper accounting of the funds. The establishment of the two new funds was overlooked in the budget process and the Business License Fee continued to be collected and deposited into the special revenue account set up in the Chief Administrative Office.
After additional consultation with the Treasurer-Tax Collector and Planning and Building, the Chief Administrative Office recommended that beginning in FY 2020-21 one new special revenue fund be established in Planning and Building for these fees to be directly deposited into. The Planning and Building Department will be able to utilize the funds for increased CASp training and certification as a transfer out from the Special CASp Revenue Fund that was recently created. The Director of Planning and Building is responsible for annual budgeting and use of these funds and the CAO, Community Development Finance and Administration Division will be responsible for the annual reporting requirements to the Division of the State Architect. The CAO, Community Development Finance and Administration Division unit will remit the 10% required to the State quarterly and retain the 5% administrative fee. A budget transfer is required to establish revenues and appropriations in the new Planning and Building Special Revenue Fund.
In order to accomplish this change, the budget will need to be amended as follows:
Budgeted appropriations need to be increased by $47,316 in Residual Equity Transfer Out in the CAO, Central Fiscal Division CASp Org, offset by a decrease in Contingency in the amount of $47,316. This transfer will allow the old Special Revenue Fund to be closed and have all CASp related expenses and revenues post to the newly created Planning and Building CASp Org. There is no impact to the general fund with this transfer.
Budgeted revenues need to be established in the new Planning and Building Special CASp Revenue Fund in the following amounts: $47,316 in Residual Equity Transfers In, $60,000 in Miscellaneous Revenue, and $750 in interest. Budgeted appropriations need to be established in the same Org in the following amounts: $6,000 in Contributions to Non-Government Agencies to allow for the 10% payment to the State, $2,700 in Operating Transfers Out to the Treasurer Tax Collector to cover FY 2019-20 administration charges, $2,400 in Operating Transfer Out to reimburse CAO Community Development, Finance and Administration for administration charges for the current year, $58,500 in Operating Transfers Out to Building to cover training and staff costs, and $38,466 in Contingency to Balance the Org.
Budgeted revenues need to be increased by $2,700 in Operating Transfers In in the Treasurer Tax Collector Org, offset by a decrease in Miscellaneous Revenue in the amount of $2,700 to allow for the posting of a journal for the FY 2019/20 administrative fee.
Budgeted revenues need to be increased by $2,400 in Operating Transfers In in the CAO Community Development Finance and Administration Org to allow for the transfer of the 5% administration fee, offset by an increase in Overtime in the amount of $2,400.
Budgeted revenues need to be decreased in Miscellaneous Revenue by $44,000 in the Building Org as this revenue will now be directly deposited in the CASp Special Revenue Fund Org. Budgeted appropriations need to be increased Staff Development by $14,500 in the Building Org for staff time and training costs as it relates to CASp activities, offset by an increase in Operating Transfers In revenue in the amount of $58,500.
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.
PRIOR BOARD ACTION
12/19/2017 Legistar Item 17-1329 - Resolution 199-2017 authorizing collection of $4 fee.
08/13/2019 Legistar item 19-1210 - Budget Transfer and direction to establish two new special revenue funds.
08/04/2020 Legistar item 20-1022 - Budget Transfer to increase revenue and appropriations in the Chief Administrative Office, Central Fiscal Division CASp Certification and Training Fund budget.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office, Central Fiscal Division
Treasurer-Tax Collector
Planning and Building Department
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no impact to the General Fund as a result of this proposed budget transfer. This item would amend the budget to allow for training and staff costs and the proper accounting of funds. The increase of $14,500 in appropriations for staff development provides additional funding for Planning and Building to spend on CASp related items.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Becky Morton, Chief Fiscal Officer
Chief Administrative Office, Community Development Finance and Administration
Tiffany Schmid, Director of Planning and Building