TO: Board of Supervisors
FROM: Ryan J. Alsop, County Executive Officer
REPORT BY: Becky Craig, Assistant County Executive Officer
SUBJECT: Year-End Fund Balance Allocation
RECOMMENDATION
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Approve a Budget Amendment to increase appropriations and assignments detailed below with use of available fund balance; decrease assignment of fund balance for Tobacco Settlement; and increase assignment of fund balance in Library Fund. (Fiscal Impact: General Fund $14,129,500 expense; $615,000 expense HHSA Fund; $400,000 expense Roads Fund; $45,000 expense Fire Fund; and $9,400,000 Library Fund; Discretionary).
[4/5 vote required]
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BACKGROUND
The County Executive's Office estimated approximately $30 million in General Fund available fund balance for the Annual Budget in Spring 2023. The actual available fund balance is provided by the Auditor-Controller upon closing the books several months after fiscal year end. Available fund balance for FY 2022-23 was more than the estimated due to recognition of approximately $16 million in unspent appropriations and receipt of Excess Educational Revenue Augmentation Fund (ERAF) income.
The County's FY 2023-24 Financial Strategic Plan and FY 2023-24 Budget Policy identify uses for one-time monies to include payment of debt, advance on unfunded liabilities, and reserve for future capital outlay. Staff does not recommend prepayment of remaining debt outstanding as the administrative processing costs would exceed the realized savings; nor does staff recommend funding the OPEB or pension liabilities since prior investments are performing well and the actuarial return would be marginal. Staff recommends allocating $10 million of the available fund balance for Capital Improvements-Accumulated Capital Outlay for forthcoming facilities and infrastructure projects.
The County administers general liability, property, and other insurance premiums and claims in an internal service fund that allocates charges to the departments. The fun...
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