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HomeMy WebLinkAboutMINUTES - 09131988 - F.C.1 FC. ! Ta BOARD OF SUPERVISORS FRaM• Finance Committee Contra itra Costa DATE: September 6, 1988 Courty i SUBJECT: RODEO-HERCULES FIRE PROTECTION DISTRICT CAPITAL OUTLAY RESERVE/FUND BALANCE SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION• 1. Request the Rodeo-Hercules Fire Protection District to transfer the funds in its Capital Outlay Reserve Fund in the approximate amount of $98,000 to its operating budget to be applied toward its operating budget requirements for fiscal year 1988-1989. 2. Request County Administrator to review the needs of the District for an allocation from the Special District Augmentation Fund to cover a portion of the costs of equipping the new Hercules fire station and develop a recommendation to the Board regarding the% request. 3 . Continue the use of the capital outlay review procedures approved by the Board in December of 1987. Financial Impact: Approval of the recommendations may require a supplemental allocation from the Special District Augmentation Fund of up to approximately $98 ,000 to cover the cost of assisting the District in equipping its new station. BACKGROUND/REASONS FOR RECOMMENDATION: On August 29, 1988, the Finance Committee met with the Chief and other representatives of the District, representatives of the County Fire Chiefs ' Capital Improvement Committee and the County Administrator ' s Office to consider the subject issues. Earlier this year it was discovered that the Rodeo-Hercules Fire Protection District had accumulated a capital outlay reserve fund over a two-year period by inaccurately reporting year-end fund balances in the 1986-1987 and 1987-1988 budget cycles. In each of those two budget cycles, portions of year-end fund balances were transferred by the Distr;;ict into a capital outlay reserve fund. This action had the effect of understating the amount of carryover balance used to finance the coming year' s budget, which in turn necessitated allocating an additional amount from the Special District Augmentation Fund to balance the operations budget of the District in those two fiscal years. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION D CO ITTEE APPROVE OTHER it SIGNATUREISI: Supervisor. Toxo Powers ACTION OF BOARD ON C l7rib6r 13 1988 APPR VED AS RECOMMENDED X OTHER 1 VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT.. THIS IS A TRUE X UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THEDATESHOWN. cc: Auditor-Controller ATTESTED County Administrator PHIL BATCHELOR, CLERK OF THE BOARD OF Rodeo-Hercules Fire Protection DiStkict SUPERVISORS AND COUNTY ADMINISTRATOR Capital Tmprovement Committee M382/7-83 BY ,DEPUTY ii y 1' The subject capital outlay fund established with prior year carryover funds, while not being illegal or inherently improper, does present problems from the standpoint of equity and credibility '!!between the 'County Administrator' s Office and the other fire districts of the County. Budget and Special District Augmentation Fund allocation policies established by the County Administrator' s Office, ratified by the Board and followed by the fire districts preclude the establishment and funding of reserve funds. The budget process requires that all carryover funds be applied towards funding the following year' s budget. All of the fire jdistricts applying for Augmentation Funds are aware of this procedure, and to the best of their ability, accurately report carryover funds with the knowledge that carryover funds will be applied towards the coming year, budget. The District had proposed that it be allowed to use the $98, 000 for communications equipment and station furnishings forli the new Hercules station. It was the view of the County Administrator ',i that the District should provide for its capital needs by either requesting funds from the Fire Chiefs ' Capital Improvement Committee or utilize funds raised through its five year plan financing mechanisms. However, some of the needed items may not qualify for funding by the Chiefs ' Committee. Additionally, the District believes that the five year financing plan 'iwill not generate enough revenue to cover all the costs of the Hercules station relocation.. Accordingly, it was agreed that the District will submit a request for supplemental funding which will include a detailed analysis of the capital needs and financial resources of the District. i The Board referral regarding this item suggested a review of the process and procedures involved in the allocation of special district augmentation funds. I. Approximately one and a half years ago the Capital Improvement Committee, in conjunction with the County' s fire district consultant and the County Administrator' s Office, developed written procedures Mand criteria for reviewing capital outlay requests. The procedures were approved by the County Fire Chiefs ' Association, the Finance Committe6l and the Board of Supervisors. Attached is a copy of the Board Order and guidelines outlining the current process used by our office and the Chiefs ' Committee inreviewing requests for funding. We think this process is a significant improvement over the process used in the past and recommend that- it be continued in 1988-89. i i 'i j I'