Title
a. Adopt a resolution to adopt the County of Monterey Chualar Assessment Bond and Boronda County Sanitation District Revenue Bond budgets for Fiscal Year 2021-22;
b. Authorize and direct the Auditor-Controller to amend the Fiscal Year 2021-22 Adopted Budget to: 1) Increase appropriations and revenues in the Chualar Assessment Bond, Fund 312, Appropriation Unit PFP051 by $15,709, and 2) Increase appropriations in the Boronda County Sanitation District Revenue Bond, Fund 306, Appropriation Unit PFP052 by $38,850, funded by an operating transfer in from Boronda County Sanitation District, Fund 156, Appropriation Unit PFP049 of $38,350, and unassigned fund balance of $500 (Fund 306, BSA 3101) (4/5th vote required); and
c. Authorize and direct the Auditor-Controller to transfer $38,350 for the Fiscal Year 2021-22 from Boronda County Sanitation District, Fund 156, Appropriation Unit PFP049, to Boronda County Sanitation District Revenue Bond, Fund 306, Appropriation Unit PFP052, where Boronda County Sanitation District has sufficient appropriations available in the adopted budget to cover the transfer. (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Adopt the County of Monterey Chualar Assessment Bond and Boronda County Sanitation District Revenue Bond budgets for Fiscal Year 2021-22;
b. Authorize and direct the Auditor-Controller to amend the Fiscal Year 2021-22 Adopted Budget to: 1) Increase appropriations and revenues in the Chualar Assessment Bond, Fund 312, Appropriation Unit PFP051 by $15,709, and 2) Increase appropriations in the Boronda County Sanitation District Revenue Bond, Fund 306, Appropriation Unit PFP052 by $38,850, funded by an operating transfer in from Boronda County Sanitation District, Fund 156, Appropriation Unit PFP049 of $38,350, and unassigned fund balance of $500 (Fund 306, BSA 3101) (4/5th vote required); and
c. Authorize and direct the Auditor-Controller to transfer $38,350 for the Fiscal Year 2021-22 from Boronda County Sanitation District, Fund 156, Appropriation Unit PFP049, to Boronda County Sanitation District Revenue Bond, Fund 306, Appropriation Unit PFP052, where Boronda County Sanitation District has sufficient appropriations available in the adopted budget to cover the transfer. (4/5th vote required)
SUMMARY/DISCUSSION:
In July 2020, the Board of Supervisors received a report by Citygate Associates that provided 76 recommendations regarding the Resource Management Agency (RMA). In accordance with the recommendations, the Board directed dissolving the RMA and forming two new departments. Through this process it was determined that the Chualar Assessment Bond and Boronda County Sanitation District Revenue Bond would be assigned to the newly-formed Public Works, Facilities and Parks Department (PWFP).
The former RMA requested new Department, Unit, and Appropriation Unit Codes, but the budgets for the Chualar Assessment Bond and Boronda County Sanitation District Revenue Bond were inadvertently omitted from the FY 22 budget adoption process. In order to process bond payments in accordance with the debt service schedules, it is necessary that appropriations be established. Bonds are due to be paid off in Fiscal Year 2025.
The Chualar Assessment Bond and Boronda County Sanitation District Revenue Bond have since been included in the FY 23 budget adoption process.
OTHER AGENCY INVOLVEMENT:
The County Administrative Office Budget & Analysis Division reviewed and approved the report and supports the recommendations. This item was supported by the Budget Committee at the February 23, 2022, meeting.
FINANCING:
If approved, Fiscal Year 2021-22 budgets will be established for the Chualar Assessment Bond and Boronda County Sanitation District Revenue Bond funds, allowing for the timely payment of the annual debt service installments. Chualar Assessment Bond fund’s proposed budget of $15,709 will be funded by Special Assessment Property Tax revenue and Boronda County Sanitation District Revenue Bond fund’s budget of $38,850 will be funded from an operating transfer in from Boronda County Sanitation District’s sewer fees of $38,350 and unassigned fund balance of $500. Boronda County Sanitation District’s estimated unassigned fund balance is $7,843. Approving the budget and transfer will require a 4/5th vote from the Board of Supervisors.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The request supports the Board of Supervisor Administration Initiatives by ensuring proper administration of County obligations.
_ Economic Development
X_ Administration
__ Health & Human Services
__ Infrastructure
__ Public Safety
Prepared by: Sandra Lance, Finance Manager I (831) 755-4823
Reviewed by: Jessica Cordiero-Martinez, Finance Manager III (831)755-4824
Reviewed by: Tom Bonigut, PE, Assistant Director of Public Works, Facilities and Parks
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
The following Attachments are on file with the Clerk to the Board:
Attachment A - Proposed FY 2021-22 Budget, Chualar Assessment Bond
Attachment B - Proposed FY 2021-22 Budget, Boronda County Sanitation District Revenue Bond
Attachment C - Draft Resolution