Recommendation
Approve a Countywide FY 2001-02 Year-End ATR transferring $16,490,660 from various Budget Units: Salaries and Benefits ($1,020,813), Services and Supplies ($2,500,000), Fixed Assets ($2,885,000), Intrafund Transfers ($245,006), Non-General Fund Contingencies ($1,500,000), Fund Balance ($1,436,871) and Unanticipated Revenue ($6,902,970); to the following: Salaries and Benefits ($351,395), Services and Supplies ($5,200,741), Other Charges ($1,896,871), Fixed Assets ($3,656,653) and Operating Transfers Out ($5,385,000). |
Background and Discussion
As part of closing out the County's financial records at the end of each fiscal year, Appropriation Transfer Requests (ATRs) are prepared for Board approval to ensure that actual expenditures are covered by sufficient appropriations and that existing expenditures are represented correctly in each of the County's funds.
The amount of the attached ATR totals $16,490,660 for all County funds. This number includes two large transfers between funds, which has the effect of doubling the amount of the ATR as these transfers require "To" and "From" entries in each fund impacted, as follows: 1) the adjustment to reflect the mid-year purchase of the Mirada Surf property in the Parks Acquisition and Development Fund ($5,770,000) transfers $2,885,000 from Non-Departmental Services to the Parks Acquisition and Development Fund; 2) and the year-end subsidy to the Hospital and Clinics Enterprise Funds ($5,000,000) transfers $2.5 million from Non-Departmental Services to the Enterprise Funds. In addition, available Fund Balance ($1,436,871) has been used to appropriate Depreciation Expense in the Airport and Hospital/Clinics Enterprise Funds. These are non-cash transactions that are made for bookkeeping purposes only.
The balance of the adjustments involve the transfer of unanticipated revenues and savings within departmental budget units to avoid budget blocks due to mid-year program changes, one-time purchases and unanticipated overruns. The attached ATR addresses these budget issues, as follows:
1. Human Services Agency Central Administration (7010B) - transfers Salary savings ($500,000) to Fixed Assets to deploy a Storage Area Network (SAN) to increase network capacity to accommodate several new and proposed applications, including the Data Warehouse, Health eApps, and a Homeless Tracking system. This transfer will allow the Agency to purchase a SAN server ($380,000) and the accompanying network equipment and air conditioning system ($120,000) needed to protect this special technical environment.
2. Public Works Vehicle and Equipment Services (4760B) - recognizes the transfer of CPA 2000 grant revenue ($271,653) transferred from Probation to the Fleet Maintenance Fund and makes a corresponding increase in Fixed Assets for the purchase of thirteen new vehicles.
3. Controller's Office (1400B) - recognizes Unanticipated Revenue ($142,922) generated by the Property Tax Division and transfers Salary savings ($150,813) to various accounts in Services and Supplies ($168,735) and Other Charges ($125,000) to cover budget overruns caused by higher consulting fees due to staff turnover during the audit cycle and the purchase and upgrade of computer equipment and professional audit software to improve the Audit Division's performance ($119,745); contract expenditures for the Property Tax Upgrade Project ($45,540); an increase in the DMG contract for state-mandated claims recovery ($3,450); and higher than anticipated automation service charges ($114,265) due to the number and complexity of IFAS and Property Tax projects.
4. Public Works Construction Services (4740B) - recognizes Unanticipated Revenue ($342,000) and transfers Salary savings ($120,000) to Services and Supplies to cover an upsurge in demand for construction services during the latter part of FY 2001-02. The majority of these costs are related to outside contracts for construction, including the HSA Tower House project, and maintenance services. All expenditures incurred in Construction Services are fully reimbursed by the requesting departments.
5. Public Works Utilities (4840B) - transfers Contingencies ($1,500,000) to Services and Supplies within the Fair Oaks Sewer Maintenance District Fund to cover costs incurred on capital improvement projects on Selby Lane and Bay Road, including some sewer main replacement projects. Funding is available from sewer service charges assessed to homeowners and businesses in the Fair Oaks Sewer Maintenance District.
6. Environmental Health (5900B) - appropriates an Intrafund Transfer ($195,006) in Environmental Health Administration and makes a corresponding appropriation in Services and Supplies of the Food Program's budget unit so that reimbursement can be made for the Food Program's portion of administrative costs. This step was inadvertently omitted during the FY 2001-02 budget process. Also transfers Salary savings ($100,000) to various Services and Supplies accounts to cover the cost of new computers ($35,000) in preparation of the Food Program's pilot project for handheld inspection units; to retrofit three workstations and purchase new chairs ($15,000); and to transfer funds to Public Health ($50,000) to cover unexpected diagnostic and treatment costs provided by California Children Services (see below).
7. Public Health (6200B) - appropriates an Intrafund Transfer ($50,000) from Environmental Health and transfers Salary savings ($150,000) to Services and Supplies ($200,000) to cover diagnostic and treatment costs provided by California Children Services. The increased costs are primarily due to an unexpectedly high number of hemophiliac cases.
8. Non-Departmental Services (8000B) and Parks Acquisition and Development (3970B) - transfers Fixed Asset appropriations ($2,885,000) to Operating Transfers-Out in Non-Departmental Services and appropriates Operating Transfers-In ($2,885,000) and Fixed Assets-Land in the Parks Acquisition and Development Fund so that the purchase of the real property in unincorporated El Granada (commonly known as Mirada Surf) is correctly accounted for in the Parks Acquisition and Development Fund and the General Fund's contribution is reflected in the Non-Departmental Services budget unit. This transfer is for accounting purposes only and does not impact the General Fund.
9. Assessor-County Clerk-Recorder (1300B) - recognizes Unanticipated Revenue from Supplemental Tax Administrative Fees ($270,000), Election Services ($250,000) and Recording Fees ($210,000) and appropriates the revenue in various Salaries and Benefits ($320,000) and Services and Supplies ($410,000) accounts to cover increased printing costs, network connectivity and mainframe storage charges in Appraisal Services; increased costs in extra help and overtime, ballot printing, and postage and supplies due to the mandated reapportionment and redistributing of election boundaries and changes in the conduct of primary elections; and increased extra help and overtime costs in Business Operations due to increased workload in the Recorder's area.
10. Non-Departmental Services (8000B), Hospital and Clinics Contributions (5850B) and San Mateo County General Hospital (6600B) - transfers appropriation in Services and Supplies ($2,500,000) from Non-Departmental Services to Operating Transfer-Out in the Hospital and Clinics Contributions budget unit, and recognizes the corresponding Unanticipated Revenue ($2,500,000) in the Hospital Enterprise Fund and makes appropriation in various accounts in Services and Supplies and Other Charges to cover overruns in physician contracts, lab supplies, utilities, drugs and pharmaceuticals, interest on short-term debt and Copy Center charges. This transfer increases the General Fund subsidy to the Hospital and Clinics by $2.5 million to $50.1 million for FY 2001-02. This amount was originally budgeted in Non-Departmental Services pending contract and labor negotiations with the physicians and nurses.
11. County Counsel (1600B) - recognizes Unanticipated Revenue ($31,395) resulting from increased reimbursement of state-mandated services and makes appropriation in Salaries and Benefits to cover overruns resulting from the April 2002 management cash-out and the cost of an attorney position added mid-year.
12. San Mateo County General Hospital (6600B) and Community Health Clinics (6850B) - appropriates available Fund Balance ($1,065,921) in Other Charges for the purpose of recording annual depreciation expense. This is a non-cash transaction that is made for bookkeeping purposes only.
13. Public Works Airports (4850B) and Utilities (4840B) - appropriates available Fund Balance ($370,950) in Other Charges for the purpose of recording annual depreciation expense. This is a non-cash transaction that is made for bookkeeping purposes only. |
