Title
Adopt a Resolution Authorizing and direct the Auditor-Controller to increase appropriations by $412,000 for the Sheriff’s Office FY 18-19 Adopted Budget to cover a deficiency in appropriations. Increase appropriations in 001-SHE001-2300-8497-6111 in the amount of $412,000 financed by a decrease in appropriations of $412,000 from general fund contingency appropriation 001-CAO020-1050-8034; (4/5ths Vote Required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt a Resolution Authorizing and direct the Auditor-Controller to increase appropriations by $412,000 for the Sheriff’s Office FY 18-19 Adopted Budget to cover a deficiency in appropriations. Increase appropriations in 001-SHE001-2300-8497-6111 in the amount of $412,000 financed by a decrease in appropriations of $412,000 from general fund contingency appropriation 001-CAO020-1050-8034; (4/5ths Vote Required).
SUMMARY/DISCUSSION:
The Monterey County Sheriff’s Office (MCSO) is requesting increase in the Fiscal Year 2018-2019 Adopted Budget. This request is to cover a deficit in one of the MCSO’s Appropriation Units, SHE001. During the year, MCSO has exercised due diligence in managing our Adopted Budget. However, there were unexpected and unbudgeted charges that the department was not able to fully absorb. MCSO experienced an unusual number of retirees and employee separation that resulted to a total payout of $625,000. In addition, health insurance for retirees is not normally budgeted by the departments and it amounted to $190,000 unbudgeted expenditure for the Sheriff’s Office. Furthermore, the department incurred nearly $350,000 in temporary employee costs to address critical staffing shortages for fiscal, records, and corrections specialists. Overtime overrun remains at almost $3M. The Sheriff’s Office used approximately $7.6 in overtime during the fiscal year. $500k is directly attributed to the U.S. Open and was fully funded by the U.S.G.A. Comparing to previous years, overtime hours have declined. During the past three fiscal years, the Deputies Sheriff’s Association has received an 8% salary increase. 8% at a time and one-half rate represents a 12% increase. The Sheriff’s Office is attempting to cover a 12% wage increase with the same overtime budget. Most of the overtime hours are non-discretionary as they are being used to cover minimum staffing requirements. When employees are off work on worker’s compensation injuries or sick leave; those shifts must be backfilled. This overtime use is completely unpredictable and impossible to budget. During the fiscal year, the department experienced high claims of workers comp that prompted the need for overtime to backfill the shifts of 44 employees who were on workers comp leave with a total hour accumulation of 23,000 or $1.7M in overtime. Sick leave amounted to 37,000 hours needing $2.7 M in overtime backfill.
As of August, 19, 2019, MCSO’s Fiscal Year 2018-2019 Adopted Budget was able to absorb most of these unbudgeted costs from a combination of savings measures implemented throughout the year, unused Cannabis budget, and excess appropriations from programs that had lower reimbursable expenditures, such as court security and AB109 programs to meet operational needs, with the exception of $412,000.
Utilizing excess appropriations from reimbursable programs means the Sheriff’s Office may still require additional GFC to cover unrealized revenues from trial court security and AB109. More details will be provided in the final finance report to the budget committee next month.
OTHER AGENCY INVOLVEMENT:
Due to fiscal time constraints, the budget committee has not reviewed this report. The Auditor-Controller and County Administrative Budget Office have reviewed this report.
FINANCING:
The increase in appropriations will be financed by the transfer of contingencies appropriation.
The current balance of contingencies appropriation is $591,135; the remaining balance after this proposed decrease in contingencies appropriation will be $179,135.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Promote an organization that practices efficient and effective resource management and is recognized for responsiveness, strong customer orientation, accountability and transparency.
Mark a check to the related Board of Supervisors Strategic Initiatives
Economic Development
X Administration
Health & Human Services
Infrastructure
Public Safety
Prepared by: John Mineau, Undersheriff, X3859
Approved by: Steve Bernal, Sheriff, X3856
Attachment: Resolution for appropriation increase FY 2019