AGENDA DATE: 6/3/2020
TITLE:
Title
FY 21 Resolution of Appropriations
BODY
SUBJECT/PROPOSAL/REQUEST: Approval of the Resolution of Appropriations for the Albemarle County Operating and Capital Budgets for FY 21
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Kamptner, Allshouse, L., Bowman, Vinzant, Mitchell
PRESENTER (S): Lori Allshouse
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The Board of Supervisors adopted the County’s FY 21 Operating and Capital budgets totaling $396,971,885 during the May 14, 2020 Board meeting. At the Board’s June 3, 2020 meeting, staff will ask the Board to consider the following items:
1) Adoption of Annual Resolution of Appropriations: To provide the authority from the Board to spend these funds, the Board’s adoption of an Annual Resolution of Appropriations for the fiscal year ending on June 30, 2021 is required.
Per the May 14 Board meeting, prior to the Board’s adoption of the Annual Resolution of Appropriations, staff will provide additional information and analysis on Jaunt’s request for $60,536 in bus driver compensation for the Board’s consideration.
The Board will have the option of adopting the Resolution of Appropriations included in Attachment A or alternatively, the Resolution of Appropriations included in Attachment B. Attachment B is the same as Attachment A, however, it includes an increase of $60,536 to support requested driver salary increases for Jaunt provided from the Reserves for Contingencies.
2) Adoption of Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing: In addition, the Board’s adoption of a Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing is required to provide the County with the authority to use bond proceeds to reimburse capital program expenditures for the specified projects.
STRATEGIC PLAN: Mission: To enhance the well-being and quality of life for all citizens through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION:
1) Adoption of Annual Resolution of Appropriations:
The Board has the option of adopting the Resolution of Appropriations included in Attachment A or in Attachment B.
The Resolution of Appropriations appropriates the total County budget, including both general government and school operating and capital funds, School Special Revenue Funds, and Other General Government Funds appropriations in a single resolution. The Resolution of Appropriations in Attachment B includes additional funding to support Jaunt’s requested bus drivers’ salary increase.
Both versions (Attachment A and Attachment B) of the Annual Resolution include the following:
School Division Adjustments
On May 14, 2020, the School Board also adopted the School Fund and School Special Revenue Funds with no changes to the total budget. There are some minor adjustments to their revenue sources included in this Resolution to align with the School Board’s adoption of the School Division’s budget reflected in Attachment A.
County Executive Authority
The appropriation resolution continues to authorize the County Executive to do the following:
A) Transfer funding from specific Board approved FY 21 non-departmental reserve accounts to the appropriate department accounts for expenditure. For FY 21, these specific reserve accounts are: 1) the Salary and Benefits Reserve, 2) the Board of Supervisor’s Strategic Priority Support Reserve, 3) the Business Process Optimization Reserve, and 4) the Personnel Savings budget.
B) Administratively approve budget transfers of unencumbered funds for up to $50,000.00 per fund in the fiscal year from one classification or project to another within the same general government fund and to allocate the County-wide salary lapse budget between department budgets to appropriately reflect where salary lapse actually occurs.
C) Administratively approve the carry forward of outstanding grants received and appropriated in FY 20 into FY 21.
In accordance with current practice, all of these transfers or distributions will be reported to the Board of Supervisors as part of the County’s quarterly financial reports.
External Recipients of Funds
Section X, Paragraph Six of the attached Annual Resolution of Appropriations adds language clarifying requirements for external recipients of County funds.
2) Official Intent to Reimburse Expenditures with Proceeds of a Borrowing
Attachment C: The Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing allows the County to use up to $121,751,780 in bond proceeds to reimburse the County for capital program expenditures. This includes $9,239,658 for FY 21 projects and up to an additional $112,512,121 for capital program expenditures appropriated in previous years.
BUDGET IMPACT: The Resolution of Appropriations provides the authority from the Board to spend funds included in the FY 21 Operating and Capital budgets. Revenues and expenditures will be monitored throughout the year per the County’s 3-6-6 budget management approach.
RECOMMENDATION:
Recommendation
Staff recommends the adoption of the Annual Resolution of Appropriations (Attachment A or B).
Staff recommends adoption of the attached Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing (Attachment C).
ATTACHMENTS:
Attachment A: FY 21 Annual Resolution of Appropriations
Attachment B: FY 21 Alternative: Annual Resolution of Appropriations that includes $60,536 towards Jaunt’s bus drivers’ salary increases
Attachment C: Official Intent to Reimburse Expenditures with Proceeds of a Borrowing