Title
Adopt a resolution to:
a. Authorize and direct the Auditor-Controller to amend Fiscal Year 2023-24 Adopted Budget for the Carmel Lagoon project, County Service Areas/County Sanitation District Water projects, Parks Water projects, Laguna Seca Clean Water project, Laguna Seca Sewer Infrastructure project, ARPA Project Contingency, Prop 68 projects, Jail Sewer Lift Station project, Development SW Corner of Gabilan at Church project, 331 North Sanborn project, Bradley Library project, HVAC Animal Shelter project, Sheriff Replace Kitchen Refrigeration project, Sheriff Replace and Install New ATS project, 911 replace 2 HVAC units project, 911 Center Fence and Pavement Improvement project, District Attorney Security Improvement project, 168 W Alisal 3rd Floor Elevator and Supervisor Door Security Improvement project, 168 W Alisal Site Lighting Improvement project, 1488 Schilling Place Shredder Safety Reconfiguration project, Records Retention Center Office Safety and Ergo Improvement project, 1441 Schilling Place Failed Beam Assessment and Repair project, and Schilling Place Emergency Generator Rental project, as follows:
1. Increase appropriations by $3,647,411 in Fund 478-BIR, Appropriation Unit CAO047, financed by Unrestricted Net Position (478-BIR-3202); (4/5ths vote required).
2. Increase appropriations by $9,523,444 in Capital Projects, Fund 404, Appropriation Unit PFP057, financed by increased revenues from Federal Aid Reimbursements of $821,934, a transfer in from Fund 478-BIR, Appropriation Unit CAO047 of $4,865,213, and Unassigned Fund Balance (404-3101) of $3,836,297; (4/5ths vote required).
3. Increase appropriations by $503,067 in General Fund, Fund 001, Facility Services Appropriation Unit PFP054, financed by a transfer in from Fund 478-BIR, Appropriation Unit CAO047. (4/5ths vote required).
b. Authorize and direct the Auditor-Controller to transfer $5,368,280 from Fund 478-BIR, Appropriation Unit CAO047 to Capital Projects, Fund 404, Appropriation Unit PFP057 ($4,865,213) and General Fund, Fund 001, Facility Services Appropriation Unit PFP054 ($503,067). (4/5ths vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution to:
a. Authorize and direct the Auditor-Controller to amend Fiscal Year 2023-24 Adopted Budget for the Carmel Lagoon project, County Service Areas/County Sanitation District Water projects, Parks Water projects, Laguna Seca Clean Water project, Laguna Seca Sewer Infrastructure project, ARPA Project Contingency, Prop 68 projects, Jail Sewer Lift Station project, Development SW Corner of Gabilan at Church project, 331 North Sanborn project, Bradley Library project, HVAC Animal Shelter project, Sheriff Replace Kitchen Refrigeration project, Sheriff Replace and Install New ATS project, 911 replace 2 HVAC units project, 911 Center Fence and Pavement Improvement project, District Attorney Security Improvement project, 168 W Alisal 3rd Floor Elevator and Supervisor Door Security Improvement project, 168 W Alisal Site Lighting Improvement project, 1488 Schilling Place Shredder Safety Reconfiguration project, Records Retention Center Office Safety and Ergo Improvement project, 1441 Schilling Place Failed Beam Assessment and Repair project, and Schilling Place Emergency Generator Rental project, as follows:
1. Increase appropriations by $3,647,411 in Fund 478-BIR, Appropriation Unit CAO047, financed by Unrestricted Net Position (478-BIR-3202); (4/5ths vote required).
2. Increase appropriations by $9,523,444 in Capital Projects, Fund 404, Appropriation Unit PFP057, financed by increased revenues from Federal Aid Reimbursements of $821,934, a transfer in from Fund 478-BIR, Appropriation Unit CAO047 of $4,865,213, and Unassigned Fund Balance (404-3101) of $3,836,297; (4/5ths vote required).
3. Increase appropriations by $503,067 in General Fund, Fund 001, Facility Services Appropriation Unit PFP054, financed by a transfer in from Fund 478-BIR, Appropriation Unit CAO047. (4/5ths vote required).
b. Authorize and direct the Auditor-Controller to transfer $5,368,280 from Fund 478-BIR, Appropriation Unit CAO047 to Capital Projects, Fund 404, Appropriation Unit PFP057 ($4,865,213) and General Fund, Fund 001, Facility Services Appropriation Unit PFP054 ($503,067). (4/5ths vote required).
SUMMARY:
Public Works, Facilities and Parks (PWFP) is the lead for managing the County’s Capital Projects and Facilities Maintenance budgets. Often annual Capital Project Funds and Facility budgets require a true-up to adjust appropriations for estimates made during budget development in March. This year, the March 2023 storms caused project delays impacting projected budget estimates, and delays with receiving equipment ordered have caused projects to roll into the next fiscal year. The true-up does not increase a project’s overall budget (revenue or expenditures).
The Capital Projects, Fund 404, is used to account for financial resources and expenditures used for the construction of Board-approved capital facility projects over $1 million. PWFP identified seventeen (17) capital projects that need appropriation modifications totaling $9,523,444. Federal Aid Reimbursements, Building Improvement and Replacement (Fund 478-BIR) Unrestricted Net Position and Capital Projects (Fund 404) Unassigned Fund Balance are the financing sources for the requested appropriation increases.
In Fiscal Year (FY) 2022-2023, $903,000 was allocated from Fund 478-BIR for unscheduled maintenance projects in General Fund - Facility Services. At the end of FY 2022-23, there was $503,067 remaining with several projects in process not yet finalized by June 30, 2023. PWFP requests to use the entire $503,067 remaining allocation for six (6) rollover projects. Building Improvement and Replacement Fund Unrestricted Net Position is the funding source for the unscheduled maintenance allocation. PWFP anticipates bringing forward the Schilling Place Emergency Generator project, which was not completed in FY 2022-23, once the budget estimate is finalized.
Attachment A provides an overview of the FY 2023-24 Adopted Budgets for Fund 404 Capital Projects and General Fund - Facility Services and the proposed appropriation modifications necessary to complete the projects.
OTHER AGENCY INVOLVEMENT:
This report was reviewed by the County Administrative Office Budget & Analysis Division. This item went to and was supported by the Budget Committee at their October 25, 2023 meeting.
FINANCING:
If approved, the recommended action will modify the FY 2023-24 Adopted Budget, increasing Fund 404, Appropriation Unit PFP057, appropriations by $9,523,444, financed by the Unassigned Fund Balance $3,836,297, Fund 478-BIR Unrestricted Net Position $4,865,213 and Federal Aid Reimbursement $821,934; and General Fund 001, Appropriation Unit PFP054, appropriations by $503,067 financed by Fund 478-BIR Unrestricted Net Position. Approval of the recommendation will not modify overall approved project budgets or require any additional funding from the General Fund. This request will only increase appropriations and revenues to align fiscal year expenditures incurred and revenues earned.
Prepared by: Sandra Lance, Finance Manager I (831) 755-4823
Reviewed by: Jessica Cordiero-Martinez, Finance Manager III
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
The following attachments are on file with the Clerk of the Board:
Attachment A - True Up Projects
Attachment B - Draft Board Resolution