Title
Department of Transportation recommending the Board approve and authorize the Chair to sign a budget transfer adjusting the budget for Fiscal Year 2021-22 to allow for the transfer of additional revenues in the Road District Tax account to the Road Fund. (4/5 vote required)
FUNDING: Road District Tax Revenues.
Body
DISCUSSION / BACKGROUND
The Road District Operating Fund receives a percentage allocation of Property Taxes for the purpose of road maintenance and construction. The FY 2021-22 Budget estimated this revenue at $7,675,465, but the revenues received for Road District Tax are higher than budgeted. An additional $284,974 is projected to be received and the revised budgeted amount will be $7,960,439. This budget amendment will allow the additional revenue received to be transferred to the Road Fund.
For this budget amendment, it is proposed that the Road District Tax Secured Property Taxes line item increase by $284,974. Along with increasing the revenue line item, budgeted appropriations in Operating Transfers Out from Road District Tax to the Road Fund need to be increased by $284,974. Budgeted appropriations for the Transportation - General Department program Operating Transfers In: RDT need to be increased in by $284,974, offset by an increase to Appropriation for Contingency for $284,974.
ALTERNATIVES
The Board may elect not to approve the budget transfer as proposed, although proper accounting for the Road Fund would be jeopardized.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no Net County Cost associated with this item. Approval of this budget amendment increase the Road Fund by $284,974. The Road fund is experiencing cash flow issues and this budget transfer allows the transfer of cash from the Road District Tax Fund to the Road Fund. Currently the Road Fund is floating costs from the 2017 FEMA Storm disaster, the 2021 Caldor Fire disaster and other projects that are awaiting grant funding. Road District Tax funds are available for Road Fund purposes. The department is recommending increasing contingency in the Road Fund with these funds. If these funds are not needed in the current fiscal year, the funds will roll into year end Road Fund fund balance and be available for use in FY 2022-23.
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
Rafael Martinez, Director
Department of Transportation