DATE: May 21, 2024
TO: Board of Supervisors
SUBMITTED BY: Melissa Cregan, Agricultural Commissioner/Sealer
SUBJECT: Budget Resolution for Increasing FY 2023-24 Appropriations and Estimated Revenues for the Department of Agriculture
RECOMMENDED ACTION(S):
TITLE
Adopt Budget Resolution increasing FY 2023-24 appropriations and estimated revenues for Department of Agriculture Org 4010 in the amount of $626,456 (4/5 vote).
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Department to receive the Unclaimed Gas Tax (UGT) revenue and increase appropriations in excess of the FY 2023-24 Adopted Budget. These funds will be used to cover expenditures related to increased salary costs, to provide sufficient funding to purchase agricultural supplies such as weed killer, and to pay increased Data Processing costs related to AgDTS software and support. This item is countywide.
ALTERNATIVE ACTION(S):
There is no viable alternative action. If the recommended action is not approved, the Department will not have the appropriations to spend the excess funds allocated to the County from the UGT and will not be able to maintain the necessary level of general fund contribution to continue to qualify for future UGT.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The amount included in the FY 2023-24 Adopted Budget for the Department of Agriculture, Org 4010 for UGT was $2,200,000. The California Department of Food and Agriculture (CDFA) informed the Department that a $2,826,456 payment would be sent which will result in excess revenue of $626,456. These funds will be used to increase appropriations and estimated revenues for the Department. The funds will be used to purchase weed killer ($80,456) and office furniture ($45,000), and to pay for increases in salaries and benefits ($260,000), and data processing costs ($241,000).
DISCUSSION:
The UGT is a funding stream dedicated to all County Agricultural Commissioner Departments throughout California to support pesticide regulatory activities. As outlined in California Food and Agricultural Code Section 224(a), the disbursement of the UGT funds depend on the expenditure of county general fund money or Maintenance of Effort (MOE). UGT monies are disbursed to the counties in proportion to each county’s expenditures. To receive full funding from this source, the counties need to meet or exceed their MOE amounts which are equal to the average of the previous five fiscal years’ expenditures. The actual UGT revenue to be received this year exceeds the amount budgeted by $626,456. The Department is requesting the increase in appropriations to utilize the excess funds and secure full funding from UGT the following year. The Department will use these funds to purchase weed killer and office furniture, and to pay for the increases in salaries and benefits costs as well as the increases in data processing costs of software and services related to AgDTS.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Budget Resolution Org 4010
CAO ANALYST:
Ahla Yang