Title
Approve and recommend that the Water Resources Agency Board of Supervisors
authorize the Auditor-Controller to amend Water Resources Agency’s FY 2018-19 Adopted Budget by increasing appropriations in various Agency funds financed by Unassigned Fund Balance BSA 3101 in the total amount of $612,799.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors approve and recommend that the Water Resources Agency Board of Supervisors authorize the Auditor-Controller to:
a. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 111 - WRA Administration Fund (111-9300-8267-WRA001) by increasing appropriations in the amount of $210,179 financed by Unassigned Fund Balance 111-3101; and
b. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 112 - Pajaro Levee (112-9300-8484-WRA002) by increasing appropriations in the amount of $35,590 financed by Unassigned Fund Balance 112-3101; and
c. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 116 - Dam Operations (116-9300-8485-WRA006) by increasing appropriations in the amount of $197,958 financed by Unassigned Fund Balance 116-3101; and
d. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 121 - Soledad Storm Drain (121-9300-8486-WRA011) by increasing appropriations in the amount of $5,979 financed by Unassigned Fund Balance 121-3101; and
e. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 122 - Reclamation Ditch (122-9300-8487-WRA012) by increasing appropriations in the amount of $76,619 financed by Unassigned Fund Balance 122-3101; and
f. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 124 - San Lorenzo Creek (124-9300-8488-WRA014) by increasing appropriations in the amount of $1,274 financed by Unassigned Fund Balance 124-3101; and
g. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 127 - Moro Cojo Slough (127-9300-8489-WRA017) by increasing appropriations in the amount of $9,633 financed by Unassigned Fund Balance 127-3101; and
h. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 130 - Hydro-Electric Operations (130-9300-8490-WRA022) by increasing appropriations in the amount of $34,885 financed by Unassigned Fund Balance 130-3101; and
i. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 131 - CSIP Operations (131-9300-8491-WRA020) by increasing appropriations in the amount of $19,945 financed by Unassigned Fund Balance 131-3101; and
j. Amend the Monterey County Water Resources Agency’s FY 2018-19 Adopted Budget for Fund 134 - SRDF Operations (134-9300-8493-WRA028) by increasing appropriations in the amount of $20,737.00 financed by Unassigned Fund Balance 134-3101.
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (Agency) needs to increase appropriations in various funds to cover unforeseen expenditures during the building of the annual budget. The Agency is contracting out external recruiters up to $25,000 for the Deputy General Manager (DGM) position that is currently vacant and up to $41,000 for the General Manager (GM) position that is due to be vacant after December 31, 2018. Also, Risk Management had negotiated a new General Liability (GL) insurance for the Agency through CSAC Excess Insurance Authority. The additional cost of this new policy and coverage is $146,796. The new insurance covers GL for the entire Agency and includes pollution coverage for the CSIP area.
During the budget process, the Agency did not budget for charges from the Monterey County Information Technology Department (ITD) due to a miscommunication on the department’s charging procedure. It is estimated that the Agency will receive charges for IT regular services of around $400,000 in the current fiscal year. The Agency did not foresee these charges during the building of the budget and recommended the use of Unassigned Fund Balance. The Agency will incorporate the IT and GL costs during the preparation of the FY 2019-20 budget.
COMMITTEE ACTION:
The Finance Committee supported approval of this recommendation on November 2, 2018
OTHER AGENCY INVOLVEMENT:
The County Administration Office has reviewed this recommendation.
FINANCING:
Due to unexpected and unforeseen events happened such as recruitment of DGM and GM positions, CSAC General Liability insurance increase, and ITD regular service charge, Water Resources Agency needs to increase appropriations in various funds to cover such expenditures for FY 2018-19 Adopted Budget for the total amount of $612,799 financed by Unassigned Fund Balance. The Agency has sufficient fund balance to support such increase in appropriations.
Prepared by: Erica Leal, Accountant III, (831)755-4860
Approved by: _____________________________________________________
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
1. FY 2018-19 Budget Amendment # 1 Summary
2. Unassigned Fund Balance Analysis
3. Board Order