Title
Receive a report on the use and balance of Fiscal Year (FY) 2015-16 General Fund Operational Contingencies.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive a report on the use and balance of Fiscal Year (FY) 2015-16 General Fund Operational Contingencies.
SUMMARY:
The National Advisory Council on State and Local Budgeting Practice (NACSLB) and the Governmental Finance Officers Association (GFOA) recommend that public agencies adopt a prudent level of financial resources to protect against unforeseen fiscal issues that may arise throughout the year. The Monterey County Board of Supervisors (Board) has adopted various fiscal policies toward this goal including an Operational Contingency equal to one-percent of General Fund revenue. The California State Controller's Budget Guide requires that use of such appropriated contingencies be authorized by a four-fifths vote prior to expenditure.
The Recommended Budget for Fiscal Year (FY) 2015-16 included $5,702,525 in Operational Contingencies, which was in compliance with the Board adopted policy. During the adoption of the FY 2015-16 Budget, the Board found it necessary to utilize $303,174 (refer to Attachment A) leaving an adopted operation contingency of $5,399,351, reducing it to 0.92% of General Fund revenue.
Due to the fiscal pressures being experienced throughout the County, the request for Operational Contingencies has grown beyond the funding that is available. Based on what has already been approved, committed funding and pending further action, if supported and approved, there will be no remaining budgeted funds for FY 2015-16 General Fund Contingencies (refer to Attachment A).
DISCUSSION:
General Fund Operational Contingencies may be used at the discretion of and by action of the Board. These funds are intended to be utilized after all other budget sources have been examined and the use of these funds must be understood as one-time funding.
In achievi...
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