Title
Adopt a resolution to authorize and direct the Auditor-Controller to amend Fiscal Year 2020-21 the Adopted Budget for: 1. Capital Projects Fund, Fund 402, Appropriation Unit RMA014, to increase appropriations by $163,732, financed by Unassigned Fund Balance, Balance Sheet Account 3101; 2. Facility Master Plan Projects Fund, Fund 404, Appropriation Unit RMA015, to increase appropriations and revenues by $7,537,674, financed by State Aid Reimbursements and Homeless Emergency Aid Program (HEAP) funds; and 3. General Fund, Fund 001, Facilities Services Appropriation Unit RMA006, to increase appropriations by $453,252, financed by General Capital Assignment Fund Balance, Balance Sheet Account 3065 (4/5 vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a resolution to authorize and direct the Auditor-Controller to amend Fiscal Year 2020-21 the Adopted Budget for: 1. Capital Projects Fund, Fund 402, Appropriation Unit RMA014, to increase appropriations by $163,732, financed by Unassigned Fund Balance, Balance Sheet Account 3101; 2. Facility Master Plan Projects Fund, Fund 404, Appropriation Unit RMA015, to increase appropriations and revenues by $7,537,674, financed by State Aid Reimbursements and Homeless Emergency Aid Program (HEAP) funds; and 3. General Fund, Fund 001, Facilities Services Appropriation Unit RMA006, to increase appropriations by $453,252, financed by General Capital Assignment Fund Balance, Balance Sheet Account 3065 (4/5 vote required).
SUMMARY:
The Resource Management Agency (RMA) is the lead for managing the County’s Capital Projects and Facilities Maintenance budgets. Often annual Capital Project Funds and Facility budgets require a true-up to adjust appropriations for estimates made during budget development in March. This year, the COVID-19 outbreak exacerbated project delays impacting projected budget estimates. The true-up does not increase a project’s overall budget (revenue or expenditures).
The Capital Projects Fund, Fund 402, is used for various capital projects under $1 million for county-owned buildings. The Parkfield Library and 1270 Natividad HVAC and BioSafety System projects both experienced delays in Fiscal Year (FY) 2019-20. Both projects will be completed in FY 2020-21 and an increase to Fund 402 appropriations of $163,732 is needed, financed by Fund 402’s Unassigned Fund Balance.
The Facility Master Plan Projects Fund, Fund 404, is used to account for financial resources and expenditures used for the construction of Board-approved capital facility projects over $1 million. RMA identified three (3) capital projects that need appropriation increases totaling $7,537,674. Schedule changes shifted expenditures anticipated in FY 2019-20 to FY 2020-21. State Aid Reimbursements and HEAP funds are the financing source for the requested appropriations increase.
On June 9, 2020, the Board of Supervisors authorized RMA to set aside up to $453,252 in unspent funds for four (4) projects (Energy Efficiency Measures, Parks ADA Transition Plan, 142 W. Alisal East Wing Sound Attenuation, and Parks Roof Replacement and Repairs) in General Fund 001, Facilities Maintenance Unit 8176, Assigned Fund Balance, for expenditure in future years. Of the four (4) projects, two (2) are complete and two (2) continue in FY 2020-21 with remaining balances of $305,228. Following the June 9th meeting, an additional project, the Lakes Water Pump Project, was identified that was also delayed into FY 2020-21. This project has a balance of $170,880. RMA requests to use the entire $453,252 set aside for the three rollover projects. RMA will manage the $22,856 unmet need within available appropriations.
Attachment A provides an overview of the FY Adopted Budgets for Fund 404 Facility Master Plan Projects, Fund 402 Capital Projects Fund, and Fund 001 Facilities Maintenance Unit 8176 rollover projects. Attachment B provides the draft resolution to effect the requested appropriations increase.
OTHER AGENCY INVOLVEMENT:
This report was reviewed by the County Administrative Office Budget & Analysis Division.
The Budget Committee voted to support the recommendation on October 7, 2020.
FINANCING:
If approved, the recommended action will modify the FY 2020-2021 Adopted Budget, increasing Fund 402, Appropriation Unit RMA014, appropriations by $163,732, financed by the unassigned fund balance; Fund 404, Appropriation Unit RMA015, appropriations and revenue by $7,537,674, financed by New Juvenile Hall and Jail Housing Addition State Aid Reimbursements and HEAP funds for the Homeless Shelter; and Fund 001, Unit 8176, Appropriation Unit RMA006, appropriations by $453,252. Approval of the recommendation will not modify overall approved project budgets or require any additional funding from the General Fund. This request will only increase appropriations and revenues to align fiscal year expenditures incurred and revenues earned.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
If approve, the recommendation of this report supports the Board of Supervisors’ Economic Development, Administration, and Infrastructure Strategic Initiatives by ensuring accurate, timely, and transparent fiscal accounting and effective resource management to enable the RMA to complete critical project work for the long-term benefit of the County.
X Economic Development
X Administration
Health & Human Services
X Infrastructure
Public Safety
Prepared by: Sandra Lance, Finance Manager I (831) 755-4823
Jessica Cordiero-Martinez, Finance Manager II
Approved by: Shawne Ellerbee, Assistant Director of Resource Management Agency
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A-Funds 402/404/001 Adopted Budgets Project Overview
Attachment B-Draft Resolution
(Attachments are on file with the Clerk of the Board)