To: Board of Supervisors, Board of Directors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Nikolas Klein, 707-565-5312
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Fiscal Year 2023-24 Third Quarter Consolidated Budget Adjustments
End
Recommended Action:
Recommended action
Adopt a Concurrent Resolution to adjust FY 2023-24 budget appropriations by $18.7 million. (4/5th Vote Required)
end
Executive Summary:
The recommended action adds approximately $18.7 million in new appropriations to the County’s FY 2023-24 adopted budget. These adjustments increase budgeted FY 2023-24 total gross expenditures to $3.23 billion. Removing internal transfers and reimbursements results in a net budget of $2.38 billion, which more accurately reflects the County’s operating expenditures. Details of the requested changes are included in Exhibit A of the attached Budget Resolution.
Discussion:
Budget Adjustments
Throughout the fiscal year, it is necessary for many County Departments, Agencies and Districts to adjust the revenues and/or expenditure appropriations in their budgets. To facilitate this need, the County of Sonoma utilizes quarterly a Consolidated Budget Adjustments (CBA) process, whereby departments submit adjustments to be consolidated into a countywide budget resolution that meet specific criteria, including activities that have received prior board direction or approval, clean-up transactions and re-budgets of prior year funds, or adjustments that meet other ministerial requirements.
A total of eight departments are requesting budget adjustments via Third Quarter CBAs. The proposed adjustments do not include any new programs or initiatives not previously approved by the Board. The proposed action adds approximately $18.7 million of expenditures to the FY2023-24 budget, bringing the net expenditure budget to $2.38 billion.
General Fund
In the General Fund, gross expenditure appropriations are decreasing by $1.5 million, fully offset by a reduction in revenues and reimbursements, resulting in zero change to the County’s General Fund net cost. Key highlights include:
• Reducing appropriations of $1.8 million for the Community Development Block Grant Community Emergency Resiliency Center project being transferred to Capital Projects; expenditure appropriations are no longer needed in FY 2023-24 because the project will be re-budgeted in FY 2024-25.
• Increasing revenue and expenditure appropriations by $400,000 in the Sonoma Public Infrastructure Department budget due to increased fuel consumption for County vehicles and purchasing maintenance parts for Fleet Operations Heavy Equipment Division.
Other Funds
In Other Funds, expenditures are increasing by $20.1 million and funding sources are increasing by $12.4 million, resulting in a net $7.7 million use of accumulated fund balances. Key highlights include:
• Transferring Districts’ Community Infrastructure Funds fund balance totaling $6.2 million to Regional Parks and Regional Parks Capital Projects to implement projects and initiatives approved by individual Board members.
o District 1 - $3,625,000 total for various projects: $25,000 for Sonoma Schellville Trail 8th St East for planning and acquisition; $150,000 for Sonoma Schellville Trail City Connect for planning, acquisition, and construction of trail connecting Sonoma's bike path to the County's Sonoma Schellville Trail; $600,000 for Sonoma Valley Trail for planning and acquisition; $200,000 for Sonoma Valley Expansion for construction of restroom, parking, and picnic area improvements; $2,000,000 for Larson Park Improvements for construction; $350,000 for Maxwell Redevelopment for construction; and $300,000 for Maxwell Phase 2 for design, renovation, and construction of active recreation facilities.
o District 2 - $1,000,000 total for two projects: $500,000 for Helen Putnam Kelly Creek Trail for the construction of the connector trail within the current park boundary; and $500,000 for the Tolay Gathering Area.
o District 4 - $250,000 total for various projects: $60,000 for Cloverdale River Park Phase 4 for the construction of Cloverdale River Park Improvements; $125,000 for Cloverdale River Park Expansion for acquisition, planning, and the construction of a new Russian River access adjacent to Cloverdale River Park; $50,000 for Preston River Access to address management issues adjacent to the Russian River Parkway river access; and $15,000 to the Regional Parks Natural Resources Division for Cloverdale Park Vegetation Management.
o District 5 - $1,295,000 total for various projects: $300,000 to Regional Parks for Masons Marina for design, engineering, and construction of pier replacement, and another $300,000 to the Restricted Donation Fund for park improvements; $225,000 for Odd Fellows River Access for acquisition, planning, and construction of a new Russian River access by the Odd Fellows Park Road summer crossing; $450,000 for Ragle Ranch CIP to renovate athletic fields and install a second permanent restroom; and $20,000 for Occidental Community Center to install security improvements and drinking fountains.
• Increasing appropriations in the Sonoma County Public Infrastructure Department budget by $2.1 million to establish a new section on a new fund to move the Department’s administration costs out of the Roads Fund for accounting requirements and reporting purposes. After the new section and fund are established, the current fiscal year recorded costs will be moved to the new section, and appropriations in the Roads Fund will subsequently be reduced as part of the FY 2023-24 year-end close process to complete the multi-step transition.
• Programming additional revenue and expenditure appropriations of $1.2 million in the Agricultural Preservation and Open Space budget for the planned McCormick Ranch conservation easement purchase approved by the Board on December 12, 2023.
• Transferring Year 1 Strategic Plan fund balance of $500,000 to the Human Services Department for purchase of a large RV-type vehicle to deliver satellite services in high priority areas to advance Resilient Infrastructure pillar Goal 1, Objective 4.
A full list of adjustments in the General Fund and other funds is found in Exhibit A to the Concurrent Budget Resolution.
FEMA Reimbursement Update
There are no updates to report since the prior FEMA reimbursement update included in the March 12, 2024 Q2 CBA Board item report. To date, the County has spent $197 million on disasters and $183 million is estimated to be reimbursed by FEMA/Cal-OES. Of the $183 million, $59 million has been reimbursed. Of the remaining $124 million, approximately $32 million is due to Roads to fund repair work, $1 million is due to Parks for repair projects associated with the 2019 flood and 2023 storms, and $91 million is due to the General Fund, of which $81 million is associated with COVID-19.
Costs have been temporarily covered through a mix of General Fund sources and other funds. In FY21-22, the Kincade Settlement Fund provided $20 million as a temporary bridge for reimbursement delays; repayment of the Kincade Settlement Fund is being tracked and will occur as FEMA reimbursements are received and overall Disaster Funds are balance. As is true for all municipalities, FEMA reimbursements are exceedingly slow. The Disaster Finance Team in the Auditor-Controller-Treasure-Tax Collector’s (ACTTC) Office is working regularly with FEMA and Cal-OES on the reimbursement process. The County anticipates being able to close out the 2017 Sonoma Complex Fires event by the end of the current fiscal year barring any delays in the close-out process from FEMA and/or Cal-OES.
In October 2023, FEMA Region IX (which includes Sonoma County) notified the State and counties of its decision to decline reimbursement for costs associated with Non-Congregate Sheltering (NCS) client stays beyond 20 days, incurred as part of the COVID-19 response effort, which occurred from May 2020 to May 2023. Non-congregate sheltering played a crucial role in our county’s response to the ongoing public health crisis and was one of many strategies implemented to house vulnerable populations, particularly those high-risk individuals experiencing homelessness. The recent decision by FEMA Region IX to decline reimbursement for NCS costs is estimated to have a fiscal impact to Sonoma County of approximately $32 million dollars, or 39% of the County’s total estimated FEMA eligible costs. The CAO submitted a letter to the California Governor’s Office of Emergency Services on January 5, 2024, requesting urgent assistance from the State to advocate on behalf of counties and help challenge FEMA’s decision. The CAO and ACTTC will continue with advocacy efforts and monitoring developments related to this issue.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
March 12, 2024: Fiscal Year 2023-24 Second Quarter Consolidated Budget Adjustments
October 17, 2023: Fiscal Year 2023-24 First Quarter Consolidated Budget Adjustments
June 16, 2023: Fiscal Year 2023-24 Budget Adoption (Budget Hearings)
Fiscal Summary
|
Expenditures |
FY23-24 Adopted |
FY24-25 Projected |
FY25-26 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
$18,663,839 |
|
|
|
Total Expenditures |
$18,663,839 |
|
|
|
Funding Sources |
$18,663,839 |
|
|
|
General Fund/WA GF |
$0 |
|
|
|
State/Federal |
$467,506 |
|
|
|
Fees/Other |
$10,501,333 |
|
|
|
Use of Fund Balance |
$7,695,000 |
|
|
|
General Fund Contingencies |
$0 |
|
|
|
Total Sources |
$18,663,839 |
|
|
Narrative Explanation of Fiscal Impacts:
Please refer to Concurrent Budget Resolution Exhibit A for list of departmental budget changes, segregated by General Fund and Other Fund adjustments.
Staffin Impacts
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Concurrent Budget Resolution
Exhibit A to the Concurrent Budget Resolution
Related Items “On File” with the Clerk of the Board:
N/A