Title
a. Support an increase of $325,000 in appropriations and revenues for the FY 2014-15 Adopted Budget for Resource Management Agency, Fund 093-3000-8198-RMA088, County Service Area No. 75 - Chualar from Funds 401 and 402 (4/5th vote required);
b. Support an Operating Transfer Out from the FY 2014-15 Adopted Budget for Facilities Maintenance Projects, Fund 401-3000-8184-7614-RMA004 in the amount of $257,546 to County Service Area No. 75 - Chualar Fund 093-3000-8198- RMA088 (4/5th vote required);
c. Support a transfer of appropriations from the FY 2014-15 Adopted Budget for Capital Projects, Fund 402-3000-8174-7614-RMA014 in the amount of $67,454 to County Service Area No. 75 - Chualar Fund 093-3000-8198-RMA088 (4/5th vote required); and
d. Support authorizing the Auditor Controller’s Office to incorporate approved modifications in the FY 2014-15 Budget.
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
a. Support an increase of $325,000 in appropriations and revenues for the FY 2014-15 Adopted Budget for Resource Management Agency, Fund 093-3000-8198-RMA088, County Service Area No. 75 - Chualar from Funds 401 and 402 (4/5th vote required);
b. Support an Operating Transfer Out from the FY 2014-15 Adopted Budget for Facilities Maintenance Projects, Fund 401-3000-8184-7614-RMA004 in the amount of $257,546 to County Service Area No. 75 - Chualar Fund 093-3000-8198- RMA088 (4/5th vote required);
c. Support a transfer of appropriations from the FY 2014-15 Adopted Budget for Capital Projects, Fund 402-3000-8174-7614-RMA014 in the amount of $67,454 to County Service Area No. 75 - Chualar Fund 093-3000-8198-RMA088 (4/5th vote required); and
d. Support authorizing the Auditor Controller’s Office to incorporate approved modifications in the FY 2014-15 Budget.
SUMMARY/DISCUSSION:
On July 22, 2014, the Board of Supervisors received a follow-up report as directed during Budget Hearings on June 10, 2014 regarding the remaining Fiscal Year (FY) 2014-15 funding requirements for County Service Area No. 75 - Chualar to meet existing operational costs, short term rate adjustment studies, and long term sewer master plan work. The Board was provided funding options in which the Board unanimously approved funding all of the $325,000 in needs from the Facilities Maintenance Projects Fund, Fund 401 and Capital Projects Fund, Fund 402. The approved funding provides for the following:
(1) Operation & maintenance activities: $200,000;
(2) Short term rate study: $25,000, and
(3) Long term system master plan with an associated rate study: $100,000.
Since the July 22, 2014 Board Report included multiple options for the Board to consider with regard to the unmet funding needs, the report did not include specific actions necessary to modify appropriations or revenues at that time. Staff was directed to return to the Board after first presenting the recommended budget modification actions to the Capital Improvement Committee and Budget Committee, as appropriate.
OTHER AGENCY INVOLVEMENT:
RMA-Public Works manages the Chualar sewer system through CSA 75. Upgrading the sewer system will be in-line with a recent Grand Jury recommendation. These actions were supported by the Capital Improvement Committee on August 13, 2014.
FINANCING:
There is an impact to the FY 2014-15 adopted projects in the Facility Maintenance Projects Fund, Fund 401. On July 22, 2014, the Board unanimously agreed to transfer $257,546 allocated in Fund 401 for Equipment and Storm Water Management and delaying this project until future funding can be identified. In addition, the Board agreed to transfer $67,454 allocated in Fund 402 Capital Project towards the 142 W. Alisal - Old Jail Adaptive Reuse Study. There is no impact to the Reuse project, as sufficient progress has been made resulting in project savings of $67,454. The approved transfers will increase appropriations and revenues in the amount of $325,000 to Fund 093-3000-8198-RMA088, Chualar Service Area 075.
Prepared by: Dirk Medema, Special District Services Manager (831) 755-5647
Approved by:
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Robert K. Murdoch, P.E., Director of Public Works
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Benny J. Young, RMA Director
Dated: August 1, 2014