Title
Adopt a Resolution Authorizing and direct the Auditor-Controller to increase appropriations by $184,251 for the Sheriff's Office FY 18-19 Adopted Budget to cover a deficiency in appropriations. Increase appropriations in 001-SHEOOI-2300-8497-6111 in the amount of $184,251 financed by a decrease in appropriations of $184,251 from general fund contingency appropriation 001-CA0020-1050-8034; (4/5ths Vote Required).
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
Adopt a Resolution Authorizing and direct the Auditor-Controller to increase appropriations by $184,251 for the Sheriff's Office FY 18-19 Adopted Budget to cover a deficiency in appropriations. Increase appropriations in 001-SHE00I-2300-8497-6111 in the amount of $184,251 financed by a decrease in appropriations of $184,251 from general fund contingency appropriation 001-CA0020-1050-8034; (4/5ths Vote Required).
SUMMARY/DISCUSSION:
The Monterey County Sheriff's Office (MCSO) is requesting increase in the Fiscal Year (FY) 2018-2019 Adopted Budget. This request is to cover a deficit in one of the MCSO's Appropriation Units, SHE001. During the fiscal year, MCSO has exercised due diligence in managing our Adopted Budget. However, there were unexpected and unbudgeted charges that the department was not able to fully absorb. During the FY 2018-2019, the MCSO experienced an unusual number of retirees and employee separation that resulted to a total payout of $625,000. In addition, health insurance for retirees is not normally budgeted by the departments and it amounted to $190,000 unbudgeted expenditure for the Sheriff's Office. Furthermore, the department incurred nearly $306,000 in temporary employee costs to address critical staffing shortages for fiscal, records, and corrections specialists. Overtime overrun remains at almost $3M. The Sheriff's Office used approximately $7.6 million in overtime during the fiscal year. $500k is directly attributed to the U.S. Open and was fully funded by the U.S.G.A. During the past three fiscal years, the Deputies Sheriff's Association has received an 8% salary increase. 8% at a time and one-half rate represents a 12% increase. The Sheriff's Office attempted to cover a 12% wage increase over the past three (3) years with the reduced overtime budget. Most of the overtime hours are non-discretionary as they are being used to cover minimum staffing requirements. When employees are off work on worker's compensation injuries or sick leave; those shifts must be backfilled. This overtime use is completely unpredictable and impossible to budget. During the fiscal year, the department experienced high claims of workers comp that prompted the need for overtime to backfill the shifts of 44 employees who were on workers comp leave with a total hour accumulation of 24,200 needing an estimated $l.8M in overtime. In addition, sick leave amounted to 36,000 hours needing an estimated $2.6 M in overtime backfill.
MCSO's Fiscal Year 2018-2019 Adopted Budget was able to absorb most of these unbudgeted costs from a combination of savings measures implemented throughout the year, unused Cannabis budget, and excess appropriations from programs that had lower reimbursable expenditures, such as court security and AB 109 programs to meet operational needs, with the exception of $184,251.
Utilizing excess appropriations from reimbursable programs means the Sheriff's Office may still require additional GFC to cover unrealized revenues from trial court security and AB 109. More details will be provided in the final finance report to the budget committee at the end of this month.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller and County Administrative Budget Office have reviewed this report.
FINANCING:
The increase in appropriations will be financed by the transfer of contingencies appropriation.
The current balance of contingencies appropriation is $591,135; the remaining balance after this proposed decrease in contingencies appropriation will be $406,884.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Promote an organization that practices efficient and effective resource management and is recognized for responsiveness, strong customer orientation, accountability and transparency. .
Mark a check to the related Board of Supervisors Strategic Initiatives
Economic Development
X Administration
Health & Human Services
Infrastructure
Public Safety
Prepared by: Jonabel O. Perez, CPA, Finance Manager, X4559
Approved by: Steve Bernal, Sheriff, X3856