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
Fiscal Year 2023-24 1st Quarter Consolidated Budget Adjustments
End
Recommended Action:
Recommended action
Adopt a Concurrent Resolution adjusting the FY 2023-24 Budget Appropriations by $100.8 million. (4/5th Vote Required)
end
Executive Summary:
The proposed action adds approximately $100.8 million in new or rolled forward appropriations to the FY 2023-24 budget.
If approved, these adjustments bring the total revised gross expenditure FY 2023-24 approved gross expenditure budget to $3.07 billion. Removing internal transfers and reimbursements leaves a net budget of $2.26 billion, which better approximates the actual County spending.
Details of each requested change are included in Exhibit A of the attached Budget Resolution.
This item also provides an overview of the status of FEMA reimbursements to date.
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 CBAs do not include any new programs or initiatives not previously approved by the Board. The proposed action adds approximately $100.8 million of expenditures to the FY2023-24 budget, bringing the net expenditure budget to $2.26 billion. Of the total, about 50% or $51.7 million is associated with Sonoma Water re-budgeted appropriations for previously approved capital projects.
GENERAL FUND
In the General Fund, expenditure appropriations are being increased by $21.3 million. Approximately $12.7 million of this is funded with udpated sources, while the remaining $8.6 million is funded with use of designated fund balances. The largest contributors associated with these adjustments are:
• Increasing revenues and expenditures by $8.3 million from the final FY22-23 Assessment Value roll close. Per the ’Boards Financial Policies <https://sonomacounty.ca.gov/administrative-support-and-fiscal-services/county-administrators-office/budget-and-operations>, 40% (approximately $3.3 million) of this is directed to the Deferred Maintenance Capital Project Fund. The remaining 60% (approximately $5.0 million) is programmed in Non-Departmental, and, unless otherwise programmed by the Board, it may become part of available year-end savings.
• Increasing expenditures to program $7.4 million in prior FY22-23 year-end savings beyond what was assumed during budget hearings. Per direction at budget hearings, this sum is directed in three equal parts to: pension paydown, additional contribution to the Deferred Maintenance Fund, and an additional contribution to the General Fund Reserves.
• Add $1.8 million in appropriations in the Energy division to receive lease proceeds related to the Santa Rosa Veterans Building Energy Upgrades and transfer funds to the Veterans' Building Capital Project fund.
• Increasing appropriations by $1.1 million across departmental budgets to re-budget technology improvement projects with the Information Services Department (ISD) for projects that were not completed in FY22-23. Unused funds associated with these projects in FY22-23 were reserved at year end and will be re-appropriated for these projects.
• Almost $1.3 million is associated with the second year of the hiring incentive program for the Sheriff’s Office, funded by prior year salary savings in the Sheriff’s office that were reserved at year end for this purpose.
Additionally, there is a net neutral expenditure authority change to shift appropriations from the Non-Departmental budget to General Fund operating budgets in the amount of $6.9 million. This shift is needed to ensure departments have adequate appropriations to cover the increased cost of salaries and benefits based on final changes resulting from labor negotiations. Non-General Fund departments will review actual appropriations and may return in a future CBA if additional appropriations are needed. See enclosed Table of Salary and Benefits Adjustments by Department.
The remaining adjustments are ministerial in nature and are needed to implement the Adopted Budget and do not reflect any policy or program changes.
OTHER FUNDS
In Other Funds, expenditures are increasing by approximately $79.6 million, which is offset by $53.3 million in updated sources and $26.3 million in drawn down of available accumulated fund balances. The largest source of expenditure change is in the Water Agency ($51.7 million), primarily associated re-budgets for previously approved capital projects.
Modifications for the Department of Health Services account for $12.5 million of the Other Funds adjustments, $6 million of which is associated with transfers from Measure O Homeless Care and Coordination to the Department of Health Services Housing fund for homeless interventions. Additional items include transfers from specific funds within the Non-Departmental budget for previously identified uses in various programs and projects. These include rebudgeting $2.6 million of American Rescue Plan Act for homeless support and community engagement and language access projects, $1.3 million to support year 2 of the Hiring Incentive Program at the Sheriff’s Office, $1.2 million to ensure appropriations are in place to issue Emergency Financial Assistance from the Disaster Immediate Needs Fund and $1.0 million from the FY2022-23 Water Security Fund set aside for the Green Valley Creek Flood project.
A full list of adjustments in the General Fund and other funds is found in Exhibit A.
FEMA REIMBURSEMENT UPDATE
To date, the County has spent $123 million on disasters that is expected to be reimbursed by FEMA/Cal-OES. $32 million is due to Roads to fund repair work, $1 million is due to Parks for repair projects associated with the 2023 storms, and $90 million is due to the General Fund - $80 million of this 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, reimbursements are exceedingly slow. The Disaster Finance Team in the Auditor-Controller-Treasure-Tax Collector’s Office is working regularly with FEMA and Cal-OES on the reimbursement process.
Strategic Plan:
N/A
Prior Board Actions:
June 16, 2023 - Adopted Budget
Fiscal Summary
|
Expenditures |
FY 23-24 Adopted |
FY24-25 Projected |
FY 25-26 Projected |
|
Budgeted Expenses |
$100,829,198 |
|
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$100,829,198 |
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$8,608,702 |
|
|
|
State/Federal |
$14,755,802 |
|
|
|
Fees/Other |
$51,199,149 |
|
|
|
Use of Fund Balance |
$26,265,545 |
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$100,829,198 |
|
|
Narrative Explanation of Fiscal Impacts:
Please refer to Exhibit A for departmental budget changes by General Fund and Other Funds.
Staffing Impacts:
None
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Concurrent Budget Resolution
Exhibit A to the Concurrent Resolution
Table of Salary and Benefit Adjustments by General Fund Department
Related Items “On File” with the Clerk of the Board:
None