Title
a. Authorize the Auditor-Controller's Office to increase FY 2014-15 estimated appropriations and revenue in the amount of $3,054,491 in the Information Technology Department (ITD) 1930, Appropriations Unit INF002 (4/5th Vote Required); and
b. Approve and authorize the Auditor-Controller's Office to incorporate approved estimated appropriation and revenue modifications to the FY 2014-15 Adopted Budget (4/5th Vote Required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Auditor-Controller's Office to increase FY 2014-15 estimated appropriations and revenue in the amount of $3,054,491 in the Information Technology Department (ITD) 1930, Appropriations Unit INF002 (4/5th Vote Required); and
a. Approve and authorize the Auditor-Controller's Office to incorporate approved estimated appropriation and revenue modifications to the FY 2014-15 Adopted Budget (4/5th Vote Required).
SUMMARY AND DISCUSSION:
On June 24, 2014, the Board of Supervisors received and accepted the report of the proposed ITD capital replacement projects, previously approved by the Capital Improvement Committee on April 7, 2014, and by the Budget Committee on April 30, 2014. At that time, estimated project costs were a mix of purchase and lease options. Following this, a decision was made by the Auditor-Controller's Office to forego leasing options and pursue full purchase of projects. The FY 2014-15 project purchase costs total $4,240,225, which is offset by department charges reflected in the adopted budget of $1,185,734, leaving a funding requirement of $3,054,491. At the July 22, 2014 Board of Supervisors meeting, the Auditor-Controller's Office presented and received approval for a thirty-six month loan from the Workers' Compensation Internal Service Fund (ISF) to ITD to finance the FY 2014-15 ITD project purchase shortfall amount of $3,054,491. ITD is requesting an increase in estimated revenue and appropriations to incorporate these changes into the ITD FY 2014-15 adopted budget.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller, CAO Budget Director, Risk Management, County Counsel, and ITD were involved in developing and recommending this report.
FINANCING:
The $3,054,491 increase in appropriations is offset by $3,054,491 in estimated revenue, funded by the Workers' Compensation ISF loan. There is no impact on the General Fund as no additional funds are being requested.
Prepared by
_______________________________
Kathryn Wells, Finance Manager 796-1490
Approved by:
______________________________
Dianah Neff, Director of Information Technology, 759-6923
Dated: July 17, 2014
Attachment 1: FY 14-15 ITD Capital Replacement Costs
Attachment 2: Auditor-Controller 7-22-14 Board Report Legistar File 14-754
Attachment 3: ISF Loan Agreement
Attachment 4: Resolution - Workers' Compensation ISF Loan to ITD