Title
a. Authorize and approve a modification to the FY 2014-15 Budget for Capital Projects Fund 404, Appropriation Unit RMA015, increasing estimated revenues by $311,582 and appropriations by $132,266 (4/5th vote required);
b. Authorize and approve the use of uncommitted fund balance of $2,933,840 from Fund 404, Appropriation Unit RMA015 (4/5th vote required);
c. Authorize and approve a transfer of $2,656,052 from Fund 404, Appropriation Unit RMA015 to the New Juvenile Hall General Fund Assignment 3127 as part of the previously Board approved County match for the New Juvenile Hall Project (4/5th vote required);
d. Authorize the Auditor-Controller to Amend the Fiscal Year 2014-15 Capital Project adopted budget, Fund 404, Appropriation Unit RMA015, to increase estimated revenue of $311,582 and appropriations by $132,266; and
e. Authorize the Auditor-Controller to transfer $2,656,052 from RMA, Fund 404, Appropriation Unit RMA015 of uncommitted Fund Balance, to the General Fund Juvenile Hall Housing Assignment 3127.
Report
RECOMMENDATION:
a. Authorize and approve a modification to the FY 2014-15 Budget for Capital Projects Fund 404, Appropriation Unit RMA015, increasing estimated revenues by $311,582 and appropriations by $132,266 (4/5th vote required);
b. Authorize and approve the use of uncommitted fund balance of $2,933,840 from Fund 404, Appropriation Unit RMA015 (4/5th vote required);
c. Authorize and approve a transfer of $2,656,052 from Fund 404, Appropriation Unit RMA015 to the New Juvenile Hall General Fund Assignment 3127 as part of the previously Board approved County match for the New Juvenile Hall Project (4/5th vote required);
d. Authorize the Auditor-Controller to Amend the Fiscal Year 2014-15 Capital Project adopted budget, Fund 404, Appropriation Unit RMA015, to increase estimated revenue of $311,582 and appropriations by $132,266; and
e. Authorize the Auditor-Controller to transfer $2,656,052 from RMA, Fund 404, Appropriation Unit RMA015 of uncommitted Fund Balance, to the General Fund Juvenile Hall Housing Assignment 3127.
SUMMARY/DISCUSSION:
At the time the FY 2014-15 budget for the Capital Projects Fund 404, Appropriation Unit RMA015 was developed, it was not known that the State would require that the County's entire local match of $17,791,824 (less expenditures through FY 2013-14 of $799,186 for a remaining match of $16,992,638) for the New Juvenile Hall project would be needed to be available in a solely designated assignment when Project Establishment took place, which is scheduled for November 2014. As a result, the FY 2014-15 Adopted Budget assumed the use of fund balance as the financing source for projects such as the New Juvenile Hall Project, East and West Wing, and 312 E. Alisal.
On August 26, 2014 the Board approved the funding sources from multiple funds to derive the total match needed to be moved to the General Fund Assignment 3127, which resulted in the revision of funded projects for FY 2014-15. However, there were no actions requested of the Board at that time to modify the FY 2014-15 Adopted Budget for Fund 404. As a result, the Auditor-Controller has been unable to perform the necessary transactions to move the matching funds into the General Fund Assignment for the New Juvenile Hall Project. Approval of the actions above will align the FY 2014-15 Budget for Fund 404 to reflect the Board's actions taken on August 26, 2014 for the County's share of Juvenile Hall Project funding, and additional actions on September 30, 2014 approving reprioritization of use of FY 2013-14 year-end undesignated fund balance. This will enable the Auditor Controller to perform the necessary transfers of funds, fulfilling the State's requirement that the County demonstrates required matching funds are on hand in a designated account for use towards the New Juvenile Hall Project.
OTHER AGENCY INVOLVEMENT:
RMA-Finance and County Administrative Office are in concurrence with the recommended action. The Budget Committee considered these actions on October 29, 2014.
FINANCING:
There is no impact to the General Fund as a result of the recommended actions. The reimbursement of $1,107,822 to Fund 404 is included in appropriations for the FY 2014-15 Adopted Budget for Fund 001-1050-8038-CAO017. The recommended actions modify the current approved FY 2014-15 Adopted Budget for Fund 404 to realign revenues and expenditures with the recent actions by the Board, and authorize the use of uncommitted fund balance totaling $2,656,052, thus allowing for the required set-aside of the remaining $16,972,840 balance of the County's match ($17,791,824 minus expenditures through FY 2013-14 of $799,186) for the New Juvenile Hall project.
Prepared by: Shawne E. Ellerbee, Finance Manager (831) 755-4794
Approved by:
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Robert K. Murdoch, P.E., Director of Public Works
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Carl P. Holm, Acting RMA Director
Dated: October 22, 2014
Attachments: Attachment A - FY 2014-15 Capital Projects Fund 404 Budget Modifications