To: Board of Supervisors, Board of Directors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Natalie Brunamonte, 707-565-8565
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
First Quarter Consolidated Budget Adjustments for FY 2022-23
End
Recommended Action:
Recommended action
Adopt a Concurrent Resolution adjusting the FY 2022-23 Budget Appropriations by $100.4 million. (4/5th Vote Required)
end
Executive Summary:
The proposed action adds approximately $100.4 million 3.5% appropriations to the FY 2022-23 budget. These increases are financed with $62.6 million in increased sources, and $37.8 million use of fund balances, including $2.3 million in General Fund that was assigned at FY21-22 year end for projects that will be carrying forward into FY 22-23.
Of the total 1st Quarter Budget Adjustments, the Sonoma County Water Agency (also known as Sonoma Water) accounts for $54.3 million of the expenditure adjustments, of which $36.2 million is financed with accumulated fund balances primarily from capital project re-budgets.
If approved, these adjustments bring the total revised gross expenditure FY 2022-23 approved budget to $2.97 billion, or $2.20 billion net of internal transfers and reimbursements.
Details of the requested changes are included in Exhibit A of the attached Budget Resolution.
Discussion:
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 process whereby departments submit adjustments to be consolidated into a countywide budget resolution that meet specific criteria, including activities that have received prior board approval, represent clean-up transactions and re-budgets, or meet other ministerial requirements.
A total of 21 departments are requesting budget adjustments through First Quarter Consolidated Budget Adjustments (CBAs). The proposed adjustments are the result of programs or initiatives previously approved by the Board. The proposed action adds approximately $100.4 million of expenditures to the FY2022-23 budget, bringing the gross expenditure budget to $2.97 billion. When internal transfers and reimbursements between budget units are removed, the operating budget will be $2.20 billion.
In the General Fund, expenditure appropriations are being increased by $13.3 million, financed by approximately $11.0 million in revenues and reimbursements. The remaining $2.3 million will be financed by the release of FY21-22 year-end fund balance assignments as noted in Exhibit A; these are associated with re-budgeting IT projects that were not completed in the prior fiscal year along with a few other multi-year projects that were not completed in FY21-22 and will continued be worked on in FY22-23. These multi-year projects include hazardous tree removal projects and a septic mapping program approved in the FY21-22 Budget Hearings. In addition to these projects, expenditure and revenue increases in the general fund are associated with the true up of Property Taxes based on the final tax roll close, and programming funds in alignment with Board policy.
In Other Funds, expenditures are increasing by approximately $87.1 million, which is offset by increases in revenues ($51.6 million) and use of fund balances ($35.5 million). The largest source of expenditure change is in the Water Agency ($54.3 million), primarily associated re-budgets for previously approved capital projects. In addition, $15.0 million of designated fund balances within the General Fund Reserve is being transferred into new funds in order to better account for prior Board direction; $10.6 million will be transferred into a FEMA Audit Reserve and $4.4 million will be transferred into a fund for Resiliency Projects. Both the FEMA Audit Reserve and the Resiliency projects funds were initially allocated by the Board following the 2017 wildfires and have been maintained and tracked as designations within the General Fund Reserves. In consultation with the Auditor-Controller-Treasurer-Tax Collector, the County Administrator’s office has determined that these funds would be more properly tracked in separate funds. The Board approved the transfer of these funds as part of the FY22-23 Budget Hearings; the actual transfer is occurring as part of this Board item as the funds needed to be created subsequent to the Budget Adoption. Other changes include a transfer of funds between Health Services and the Community Development Commission associated with Los Guilicos Village Operational Contract that aligns with the funding plan discussed at FY22-23 Budget Hearings, and budget adjustments within Health Services to recognize funding from Measure O for the Interdepartmental Multidisciplinary Team (IMDT) Expansion Program.
Strategic Plan:
N/A
Prior Board Actions:
June 15, 2022 - Adopted Budget
Fiscal Summary
|
Expenditures |
FY 22-23 Adopted |
FY23-24 Projected |
FY 24-25 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
$100,374,609 |
|
|
|
Total Expenditures |
$100,374,609 |
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$2,283,279 |
|
|
|
State/Federal |
$4,068,928 |
|
|
|
Fees/Other |
$58,534,642 |
|
|
|
Use of Fund Balance |
$35,487,760 |
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$100,374,609 |
|
|
Narrative Explanation of Fiscal Impacts:
Please refer to Exhibit A for departmental budget changes by General Fund and Other Funds.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment A - Concurrent Budget Resolution
Attachment B - Exhibit A of the Budget Resolution
Related Items “On File” with the Clerk of the Board:
None