Title
Adopt a Resolution:
a. Authorize the Auditor-Controller to increase the FY 2016-17 adopted budget appropriations and revenue in the amount of $75,000 in the Resource Management Agency General Fund 001, Development Services Appropriation Unit RMA010 (4/5th vote required); and
b. Authorize the Auditor-Controller to amend the FY 2016-17 adopted budget by increasing appropriations in the amount of $60,000 in the Resource Management Agency General Fund 001, County Disposal Sites Appropriation Unit RMA039, offset by a $60,000 decrease in appropriations in the Resource Management Agency General Fund 001, Building Services Appropriation Unit RMA011 (4/5ths vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution to:
a. Authorize the Auditor-Controller to increase the FY 2016-17 adopted budget appropriations and revenue in the amount of $75,000 in the Resource Management Agency General Fund 001, Development Services Appropriation Unit RMA010 (4/5th vote required); and
b. Authorize the Auditor-Controller to amend the FY 2016-17 adopted budget by increasing appropriations in the amount of $60,000 in the Resource Management Agency General Fund 001, County Disposal Sites Appropriation Unit RMA039, offset by a $60,000 decrease in appropriations in the Resource Management Agency General Fund 001, Building Services Appropriation Unit RMA011 (Majority vote required).
SUMMARY/ DISCUSSION:
In preparation for the FY 2016-17 fiscal year-end close, the Resource Management Agency (RMA) has analyzed its General Fund Appropriation Unit’s estimated ending appropriation and revenue balances. Although RMA General Fund appropriation units in total are expected to come in under budget, as a result of vacant positions, two individual appropriation units are projected to exceed approved appropriations. To ensure all RMA General Fund appropriation units have adequate appropriations to fulfill County obligations for expenditures incurred through June 30, 2017, staff is recommending revisions to the adopted budget.
The Development Services Appropriation Unit RMA010 provides engineering review of building and development projects, including subdivisions and associated improvement plans for conformity with State and local codes. Development Services began the fiscal year with a $1,117,390 expenditure budget, funded by $412,647 in estimated revenue and $704,743 in General Fund Contribution. Budget projections through the end of the fiscal year show Development Services exceeding its appropriation budget of $1,117,390 by $75,000, as a result of a decrease in County projects assigned to Development Services, which were projected to reimburse staff time from RMA Planning, Public Works and Water Resources Agency. Currently, revenue collections exceed the revenue budget of $412,647 by $172,715, which is attributable to an increase in map checking and plan review fee revenue. RMA proposes using the increased revenue of $172,715 to offset the $75,000 appropriation increase request. This will have a net zero impact on the bottom line. The recommended action will require a 4/5ths vote.
The County Disposal Sites Appropriation Unit RMA039 contains the monitoring and reporting of the County’s ten inactive landfills. During the fiscal year, this unit has experienced an increase in costs associated with the State Mandated permit fees. Due to the technical aspect of this activity, the County contracts with a consultant to provide monitoring, reporting and testing services. These services were higher than anticipated due to additional reporting, testing and monitoring of the Bradley landfill due to an increase in total suspended solids (TSS) in stormwater samples from this landfill. It is anticipated that this special testing and reporting period may last one additional year. Finally, County crews provided additional wet weather preparedness to ensure property stormwater drainage off the landfills and minimize erosion during the heavy winter rains. Total expenditures are projected to exceed the adopted appropriations of $176,347 by $60,000. To ensure sufficient appropriations for RMA039 through year end, RMA is recommending the Board increase the appropriations by $60,000. The increase in appropriations is proposed to be offset by a decrease in appropriations in Building Services Appropriation Unit RMA011, which is estimated to come in under appropriations by approximately $1.2 million. The recommended action, which would transfer adopted appropriations between two General Fund appropriation units without increasing overall appropriations, requires a majority vote.
OTHER AGENCY INVOLVEMENT:
Due to timing constraints, this report was not presented to the Budget Committee.
FINANCING:
The recommended action would balance overall RMA General Fund expenditures within the RMA FY2016-17 budget appropriations. RMA’s FY2016-17 General Fund appropriation level adopted by the Board of Supervisors is $30,640,834 offset by $17,829,764 in revenues resulting in a GFC of $12,811,070. RMA is requesting an appropriation increase in Development Services Appropriation Unit RMA010 of $75,000 that will be offset by an increase in revenues of $75,000 and an appropriation increase in County Disposal Sites Appropriation Unit RMA039 of $60,000 with an offsetting decrease in appropriations in Building Services Appropriation Unit RMA01 of $60,000. This will result in a net zero impact to RMA’s approved general fund
contribution level.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This report supports the Board’s ‘Administration Strategic Initiative by demonstrating RMA’s practice of accountability and transparency. RMA Finance Division reviews monthly expenditures, encumbrances, and revenues in detail and forecasts remaining period expenditures and revenues to ensure RMA’s 71 appropriation units stay within the Board approved budget. RMA has shown these efforts are effective in managing General Fund expenditures to the bottom line.
Check the related Board of Supervisors Strategic Initiatives:
__Economic Development
X Administration
__Health & Human Services
__Infrastructure
__Public Safety
Prepared by: Jessica Cordiero-Martinez, Finance Manager II (831-755-4824)
Approved by: Shawne Ellerbee, RMA Deputy Director of Administrative Services
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A - Resolution
(Attachment on file with the Clerk of the Board)