COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

February 19, 2009

BOARD MEETING DATE:

February 24, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Appropriation Transfer Request to Establish an Appropriation in the Construction Services Section to Repay a Loan from the Solid Waste Fund

 

RECOMMENDATION:

Adopt an Appropriation Transfer Request to provide an appropriation in the Construction Services Budget Unit (4740B) in the amount of $612,800 to repay a loan to the Solid Waste Fund from Fiscal Year 2007-08.

 

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

 

This action will implement a portion of a four-year debt repayment plan designed to restore the Construction Services Section to fiscal soundness.

 

BACKGROUND:

On August 5, 2008 the Board authorized a loan from the Solid Waste Fund to the Construction Services Fund of $850,000 to address a year end deficit. This action also included a four year repayment plan whereby the Solid Waste Fund would be fully repaid in the first year with $612,800 in energy rebate funds from the Co-Generation Facility at the Youth Services Center and the balance coming from revenues from charges for services provided by the Construction Services Section.

 

DISCUSSION:

This Appropriation Transfer Request is needed in order to establish an appropriation in the Construction Services Budget Unit to partially repay a loan from the Solid Waste Fund. The loan repayment plan approved by the Board on August 5, 2008, provides for the initial payment to be made from energy rebate funds received for the Youth Services Center Co-Generation system. These funds were deposited in the Construction Services Budget Unit, and then used as the first installment to repay the loan to the Solid Waste Fund. Construction Services will repay the energy rebate funds over the next four years.

 

FISCAL IMPACT:

This action will transfer an appropriation of $612,800 from the Salaries and Benefits category to the Retirement of Short Term Debt category within the Construction Services Budget Unit. There will be no impact to the County’s General Fund because all of the loaned funds will be repaid over a four year period with the proceeds from charges for work performed by Construction Services.