Title
a. Receive and accept the FY 2015-16 Budget End of Year Report from the County Administrative Office;
b. Authorize the Auditor-Controller’s Office to modify the FY 2016-17 Adopted Budget by increasing revenue in the amount of $2,866,568 to be allocated to the District Attorney and Emergency Communications Departmental budgets as outlined on the last page of the Budget End of Year Report (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive and accept the FY 2015-16 Budget End of Year Report from the County Administrative Office.
b. Authorize the Auditor-Controller’s Office to modify the FY 2016-17 Adopted Budget by increasing revenue in the amount of $2,866,568 as outlined on the last page of the Budget End of Year Report (4/5th vote required).
SUMMARY:
The Budget End of Year Report (BEYR) evaluates year-end fiscal performance, including successes and shortfalls, in comparison to the County’s budget (operating plan), as adopted and modified by the Board of Supervisors (Board). Production of the BEYR is a collaborative effort between the County Administrative Office and operating departments following year-end closing adjustments overseen by the Auditor-Controller and published in the County’s financial system. This version of the BEYR evaluates the County’s fiscal condition for the year ending June 30, 2016.
DISCUSSION:
The County’s general fund ended FY 2015-16 with positive fiscal performance. The County began the fiscal year with $6.6 million in unassigned fund balance, utilized $10.7 million in existing fund balance (mostly for jail and juvenile hall construction), and earned revenue of $570.3 million, for total available financing of $587.7 million. This available financing was used to support year-end expenditures of $561.0 million, assignments (i.e., commitments) to fund balance totaling $17.0 million, and transfers of $2.7 million of special-purpose monies into restricted fund balance, for total financing uses of $580.7 million. The net result between total available financing and financing uses is an ending unassigned fund balance of $7.0 million. These results are subject to annual audit, with final results to be presented in the Auditor-Controller’s Comprehensive Annual Financial Report later this fiscal year.
Notable financial results discussed in the BEYR include:
• Adjusted revenue fell below budget by $18.3 million, reflecting unspent appropriations in health and social services programs and the associated reduction in federal and State reimbursements;
• Unused appropriations totaled $47.9 million, including $19.3 million in salary savings (with over half of this savings in the Health Department due to recruitment challenges and delays in the expansion of primary care clinics), an $8.1 million technical adjustment in which monies previously transferred from the general fund for medically indigent adult services are now deposited directly into the Health and Welfare Realignment Fund, lower-than-planned social services entitlement payments, increased cost recoveries from other funds (counted as expenditure offsets), delays in information technology infrastructure replacement projects, and fewer vehicle replacements.
• The County utilized the positive operating results to augment its fund balances, reserving $9.6 million for capital projects (including court-ordered capital improvements to improve jail security), $3.6 million to increase the portion of the strategic reserve for Natividad Medical Center (financed with hospital funding), $1.3 million to replenish financing for the appropriation for contingencies, and other strategic investments in accordance with priorities adopted during the FY 2016-17 budget process.
Full details are provided in the attached report with executive highlights beginning on page 4.
OTHER AGENCY INVOLVEMENT:
The County Administrative Office works with all departments throughout the course of the fiscal year to maintain an understanding of budget-related conditions and emerging issues.
FINANCING:
The BEYR provides analysis and perspective on the condition of the general fund and other major County funds. There is no cost associated with the receipt of this report.
Prepared by: Approved by:
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Raquel Escorcia Paul Lewis
Associate Administrative Analyst County Budget Director
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Approved by:
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Dewayne Woods
Assistant County Administrative Officer
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