Background and Discussion
To close the County’s financial records at the end of each fiscal year, a countywide Appropriation Transfer Request (ATR) is submitted to ensure that expenditures are covered by sufficient appropriations and that expenditures are represented correctly in each of the County’s funds. The amount of the attached ATR totals $40,235,722 for all County funds. Of this amount, $6,376,279 involves the transfer of Non-Departmental Reserves to the Sheriff’s Office ($1,496,174), Coroner’s Office ($50,953), Correctional Health ($280,000) and the Medical Center ($4,549,152) to cover higher than anticipated costs. The Medical Center transfers will be treated as an interest-bearing loan.
A number of adjustments have also been made for bookkeeping purposes, including reclassifying assets for capitalization purposes ($1,110,485); reclassifying revenue to more appropriate accounts ($3,000,000); recording depreciation expense ($1,166,080); and moving revenue and expenditure appropriations from the Human Services Agency to the new Department of Housing to cover activity in the new department from March 1 to June 30, 2005 ($4,459,554).
The remaining adjustments are funded from savings or unanticipated revenue generated by the various budget units with no increase in Net County Cost. The attached ATR addresses these and other budget issues, as follows:
1. San Mateo Medical Center (6600D), Medical Center Capital Purchases (6750D), Contributions to Medical Center (5850D) and Non-Departmental Services (8000B) – transfers Non-Departmental Reserves ($4,549,152) to Services and Supplies ($1,829,152) in the Medical Center budget unit and Fixed Assets ($2,720,000) in the Capital Purchases budget unit in the form of an interest-bearing loan. Corresponding appropriation is also made in the Contributions budget unit for tracking General Fund contributions to the Medical Center. Also moves revenue from Other Financing Uses ($3,000,000) in the Capital Purchases budget unit to Intergovernmental Revenues to accurately reflect the use of available bond proceeds for capital purchases and improvements.
2. Sheriff’s Office (3000B) and Non-Departmental Services (8000B) – transfers Non-Departmental Reserves ($1,496,174) and savings from Services and Supplies ($1,917,926) to Salaries and Benefits to cover higher than anticipated overtime pay for extraordinary events and retiree payouts of accrued vacation and holiday pay.
3. Correctional Health (6300B) and Non-Departmental Services (8000B) – transfers Non-Departmental Reserves ($280,000) and Correctional Health Salary savings ($230,000) to Services and Supplies ($330,000) and Other Charges ($180,000) in Correctional Health to cover extraordinary medical costs for an inmate receiving services at Stanford Hospital.
4. Coroner’s Office (3300B) and Non-Departmental Services (8000B) – recognizes Unanticipated Revenue ($31,126) from various fees, transfers savings from Services and Supplies ($50,046), and transfers Departmental Reserves ($26,371) and Non-Departmental Reserves ($50,953) to Salaries and Benefits ($142,839) to cover higher than anticipated retiree accrued time payouts, retiree health costs, overtime pay, and mid-year salary adjustments; and to Services and Supplies ($7,470) and Other Charges ($8,187) to cover higher than anticipated computer supply costs, auto liability insurance, radio service charges, ISD automation service charges and County leased facility rental charges.
5. Department of Housing (7900D) and Human Services Agency (7000D) – transfers $4,459,554 from various revenue and expenditure objects within the Human Services Agency to the new Department of Housing to cover actual revenues and expenditures incurred by the new Department for the period March 1, 2005 through June 30, 2005. Transfers out of the Human Services Agency are: Revenue ($2,229,777), Salaries and Benefits ($657,487), Services and Supplies ($268,781), Other Charges ($1,340,000) and Intrafund Transfers (-$36,491). Transfers to the Department of Housing are: Revenue ($2,229,777), Salaries and Benefits ($657,487), Services and Supplies ($268,781), Other Charges ($1,319,838), Other Financing Uses ($20,162) and Intrafund Transfers (-$36,491).
6. San Mateo Medical Center (6600D) and Medical Center Capital Purchases (6750D) – transfers savings from Services and Supplies ($405,000), Other Charges ($1,815,000), Fixed Assets ($1,950,000) and Other Financing Uses ($300,000) to Salaries and Benefits ($500,000), Services and Supplies ($3,605,000) and Other Charges ($365,000) to cover higher than anticipated costs resulting from increases in patient volume and surgeries. The average daily census at the Burlingame Long Term Care facility increased from 172 to 228, resulting in an increase of 23,990 patient days, and the average daily census in Medical/Surgical increased from 29 to 31, resulting in an increase of 531 patient days. These increases in patient volume had a direct impact on nurse staffing shortages, contract physician costs, medical and dental supplies, services provided by private hospitals and Revenue Services collection charges.
7. Contributions to Medical Center (5850D) – appropriates supplemental revenues and transfer payments ($6,341,317) for the SB 855 Disproportionate Share Hospital (DSH) Program administered by the State. The State makes supplemental payments mid-year when surplus federal funds are available to draw down. The Contributions to the Medical Center budget unit is adjusted to recognize both unanticipated revenue as well as the additional expense/transfers needed for these supplementals. When the revenue is received by the Medical Center, the General Fund is reimbursed.
8. Probation Department (3200B) – recognizes Unanticipated Revenue from Title IV-A and Title IV-E ($1,536,484) and Institutional Care/Services ($71,000), and transfers savings from Services and Supplies ($344,376) to Salaries and Benefits ($1,811,521) and to Other Charges ($140,339) to cover higher than anticipated Revenue Services collection charges, ISD automation service charges and food service charges.
9. Parks Acquisition and Development Fund (3970B) – recognizes Capital Grants and Contributions ($1,285,000) and makes a corresponding appropriation in Fixed Assets-Land to record the donation of the San Bruno Mountain Shellmound parcel, acquired through capital grants provided by the Department of Transportation and the Public Land Trust. The ATR also transfers Other Financing Uses ($680,432) to Fixed Assets-Structures/Improvements so that various capital projects, such as Sanchez Adobe and Memorial Park improvements, can be capitalized.
10. Public Health Services (6200B) – transfers Salary savings ($390,269) to Services and Supplies to cover the high cost of pharmaceuticals, which includes the purchases of flu vaccine during the shortage, increased laboratory supply costs, an unanticipated opportunity to purchase additional computers for the Women, Infants, and Children (WIC) program, and the related costs of moving California Children’s Services from 37th Avenue to Pioneer Court.
11. Assessor-County Clerk-Recorder (1300D) – recognizes Unanticipated Revenue ($48,675) and transfers Salary savings ($275,500) to Services and Supplies to cover mailing costs of assessment notices, legal costs for the Genentech assessment appeals case, moving and relocation expenses, and software purchase and development costs.
12. Road Construction and Operations (4520B) – transfers savings from Services and Supplies ($295,000) to Fixed Assets to cover the reclassification of Road Construction projects to the Infrastructure Assets accounts. The reclassification of assets is for bookkeeping purposes only and is a non-cash transaction.
13. County Manager’s Office (1200B) – transfers savings from Services and Supplies ($170,000) to Salaries and Benefits ($28,150) to cover higher than anticipated costs due to a mid-year position reclassification and Other Charges ($141,850) due to mid-year leased facility rate adjustments. The increases in leased facility charges are reimbursed by operating departments that occupy the leased space through service charges.
14. Food and Nutrition Services (6000B) – recognizes Unanticipated Revenue ($83,000) and Intrafund Transfers ($117,000) from food sales and services and transfers to Services and Supplies ($195,000) and Other Charges ($5,000) to cover higher than anticipated food and related supply costs and motor vehicle mileage costs.
15. Public Works Engineering Services (4600B) – transfers Salary savings ($135,000) to Services and Supplies to cover Engineering’s share of the Administrative Services support costs which were not provided for in the budget.
16. Emergency Services Medical Fund (5630B) – transfers Reserves ($200,000) to Services and Supplies to cover physician services. The EMS Trust Fund reimburses physicians and hospital for uncompensated emergency medical care. Legislation limits the amount of Reserves that can be maintained with the Physician Services Account of the Fund to no more than 15%. Health Services has accelerated payments to physicians and increased the fee schedule in order to reduce Reserves and comply with the 15% limit.
17. Structural Fire Special Revenue Fund (3550B) and Fire Protection (3580B) – transfers Reserves ($110,000) from the Structural Fire Fund to Fire Protection to cover higher than anticipated Services and Supplies ($101,631) and Other Charges ($8,369) due to increased PERS rates for health benefits and retirement for CDF firefighters and non-safety members, as well as unbudgeted expenditures for defibrillator equipment, a 10% matching contribution for a FMEA grant to purchase safety equipment, and increased costs such as unanticipated building maintenance emergencies and higher fuel costs.
18. Agricultural Commissioner/Sealer (3520B) – recognizes Unanticipated Revenue ($22,000) from additional device registration fees and agricultural penalties and transfers savings from Services and Supplies ($16,204) to Salaries and Benefits to cover higher than anticipated costs due to unanticipated mid-year increases in health benefits costs.
19. Child Support Services (2600B) – transfers Salary savings ($60,000) to Services and Supplies to cover payment to Print N Mail, Inc. for the production, folding, stuffing and mailing of billing notices and statements.
20. Board of Supervisors (1100D) and County Manager’s Office (1200B) – transfers savings from Salaries and Benefits ($4,390) and Other Charges ($6,785) within the Board district budget units and savings from Services and Supplies ($52,024) within the County Manager’s Office to cover higher than anticipated Salaries and Benefits ($9,750) and Services and Supplies ($53,449) in the Board districts. The overrun in Salaries and Benefits is due to the mid-year payout of accrued Administrative Leave hours and the overruns in Services and Supplies are primarily due to office improvements and furnishings.
21. Sergeants Retiree Health Fund (8050B) – transfers trust fund Reserves ($30,000) to Salaries and Benefits to cover Sergeant retiree health benefits through June 2005. These benefits were underestimated in preparing FY 2004-05 budget.
22. Local Agency Formation Committee (3570B) – transfers Contingencies ($5,000), Reserves ($5,730) and savings from Services and Supplies ($24,182) to Other Charges to cover unanticipated legal fees resulting from litigation brought by opponents of the Midpeninsula Regional Open Space District Coastal Annexation approved by LAFCo. The County and the cities will share these costs through increased contributions in FY 2005-06.
23. Utilities/Special Districts (4840D) – recognizes Unanticipated Revenue ($88,697) from Special Districts’ funds and transfers to Salaries and Benefits to cover the cost of a filled Administrative Assistant position. The position replaced a vacant Public Works Technician position that was budgeted in the Engineering Unit.
24. ESA Administration (3500B) and Planning and Building (3800B) – recognizes Unanticipated Revenue ($406) and transfers savings from Services and Supplies ($6,061) and Other Charges ($2,095) within ESA Administration and transfers Salary savings ($15,585) from Planning and Building to cover higher than anticipated ESA Administration’s Salaries and Benefits due to unanticipated mid-year increases in health benefit costs.
25. Coyote Point Marina (3980B) – transfers available Fund Balance ($237,950) to Other Charges for the purpose of appropriating Depreciation Expense for Structures ($233,904) and Equipment ($4,046). The recording of depreciation is for bookkeeping purposes only and is a non-cash transaction.
26. Utilities (4840D) and Airports (4850B) – transfers available Fund Balance ($928,130) within various Public Works funds to Other Charges for the purpose of appropriating Depreciation Expense for Airports, County Service Areas, Sewer and Sanitation Districts, Flood Control Districts, and Lighting Districts. The recording of depreciation is for bookkeeping purposes only and is a non-cash transaction.
27. Various Departments – transfers savings in Services and Supplies ($1,110,485) to Capital Asset accounts within various budget units in order to capitalize software and related computer equipment to comply with government accounting standards.
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