DATE: March 7, 2017
TO: Board of Supervisors
SUBMITTED BY: David Pomaville, Director, Department of Public Health
SUBJECT: Budget Adjustments for Department of Public Health
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution increasing the FY 2016-17 appropriations and estimated revenues for the 1991 Realign - Health Org 5243 in the amount of $520,220 (4/5 vote).
2. Adopt Budget Resolution increasing the FY 2016-17 appropriations and estimated revenues for the Department of Public Health Org 5620 in the amount of $656,308 (4/5 vote).
3. Adopt Budget Resolution increasing the FY 2016-17 appropriations for the Environmental Health Service Org 1154 in the amount of $30,000 (4/5 vote).
4. Adopt Budget Resolution increasing the FY 2016-17 appropriations for the Dairy Surcharge Org 1155 in the amount of $35,000 (4/5 vote).
5. Adopt Budget Resolution increasing the FY 2016-17 appropriations for the Integrated Waste Management Org 1156 in the amount of $26,088 (4/5 vote).
6. Adopt Budget Resolution increasing the FY 2016-17 appropriations for the Environmental Health Surcharges Org 1157 in the amount of $45,000 (4/5 vote).
REPORT
Approval of the first and second recommended action will allow the Department of Public Health to recognize the receipt of the 1991 Realignment General Growth (Growth) payments in the Health Account of the 1991 Realign - Health Org 5243. The Department will use the funding for additional Department services, supplies and equipment related to the relocation of the Immunization and HIV (human immunodeficiency virus) Clinics, Environmental Health security door installation and miscellaneous maintenance projects.
Approval of the remaining recommended actions will transfer funding from the identified Special Revenue Funds (SRFs) to reimburse the public health programs for revenue surcharges paid to the State on a quarterly basis out of the Department of Public Health Org 5620, with no increase in Net County Cost.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. If the first and second recommended actions were not approved, the Department would delay utilizing Growth funds for department services, supplies and equipment. If the remaining recommended actions were not approved, the Department SRF Fund Balances would continue to receive and retain funds that must be reimbursed for revenue surcharges that have been paid to the State on a quarterly basis from the Department of Public Health Org 5620.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. Approval of the first recommended action will increase the FY 2016-17 appropriations and estimated revenues in the 1991 Realign - Health Org 5243 by $520,220 to recognize additional 1991 Realignment General Growth revenues in the Health Account that were not included in the FY 2016-17 Adopted Budget. The funds were received from the State of California and will be used to fund an Operating Transfer Out to the Department of Public Health Org 5620 to cover additional Department services, supplies and equipment costs. Approval of the second recommended action will increase the FY 2016-17 appropriations and estimated revenues in the Department of Public Health Org 5620 in the amount of $656,308 through Operating Transfers In from various Special Revenue Funds.
Approval of the remaining recommended actions will increase appropriations as Operating Transfers Out in the following Departments for FY 2016-17 to reimburse the Department of Public Health Org 5620 for the revenue surcharge payments paid to the State on a quarterly basis from the General Fund:
• Org 1154 - Environmental Health Service ($30,000)
• Org 1155 - Dairy Surcharge ($35,000)
• Org 1156 - Integrated Waste Management ($26,088)
• Org 1157 - Environmental Health Surcharges ($45,000)
DISCUSSION:
Assembly Bill 1288 (Chapter 87, Statutes of 1991) required counties to establish a local Health and Welfare Trust (H&WT) for proceeds of Sales Tax designated for State/Local program Realignment. Counties must also deposit into the H&WT the Vehicle License Fee (VLF) revenue.
On December 20, 2016, the County received 1991 Realignment General Growth funding for the Health Account in the H&WT. Growth payments are received in arrears after the fiscal year in which the growth was earned. The Growth revenue received for FY 2015-16 was $520,220, which was not included in the FY 2016-17 Adopted budget and will be utilized to cover the following costs:
• Brix-Mercer Building first floor relocation of Community Health Immunization and HIV clinics ($350,000);
• Installation of security doors and windows for Environmental Health client services area ($60,000); and,
• Various other miscellaneous projects such as basement shore-up for the Fulton Mall project as one of the walls may need some work, electrical issues and regular maintenance ($110,220).
The Department’s SRFs are used to collect and to record revenue surcharges due to the State on a quarterly basis. When payments are issued to the State, the check amount is charged to the Department’s main Org, 5620, and then the collected revenue is transferred in from the SRF. There are sufficient appropriations and revenue included in the Department’s adopted budget to issue the quarterly payments. With your Board’s approval of Recommended Actions No. 3 to 6, the revenue will be transferred from the SRFs to reimburse Org 5620 for the FY 2016-17 quarterly payments.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Resolution (Org 5243)
On file with Clerk - Resolution (Org 5620)
On file with Clerk - Resolution (Org 1154)
On file with Clerk - Resolution (Org 1155)
On file with Clerk - Resolution (Org 1156)
On file with Clerk - Resolution (Org 1157)
CAO ANALYST:
Sonia De La Rosa