HomeMy WebLinkAboutMINUTES - 07171984 - 1.49 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on July 17, 1^OA, by the following vote:
AYES: Supervisors Powers , Fanden, Schroder , Torlakson.
NOES: None.
ABSENT: Supervisor McPeak.
ABSTAIN: None . RESOLUTION NO. 84/ 417
SUBJECT: URGING STATE ACCEPTANCE OF LONG-TERM AND SHORT-TERM
INTEREST COSTS AS ELIGIBLE AB-8 EXPENDITURES
WHEREAS the County Auditor-Controller has determined that it is appropriate
from an accounting standpoint to charge the Hospital Enterprise Fund interest on
the short-term cash flow deficit resulting from the delay in receiving revenues;
and
WHEREAS the Auditor-Controller has also determined that it is appropriate
to charge the Hospital Enterprise Fund for the increased interest costs resulting
from the refinancing of two County buildings, the proceeds of which were appropriated
to the Hospital Enterprise Fund in order to cover the Enterprise Fund's deficit
for the 1983-1984 fiscal year; and
WHEREAS interest on the short-term cash flow deficit has been included in
the County's AB-8 Plan for the 1982-1983 and 1983-1984 fiscal years; and
WHEREAS the 1982-1983 and 1983-1984 AB-8 plans have been approved by the
State Department of Health Services, including the interest charge; and
WHEREAS the County has now been advised on a preliminary basis that the
State Department of Health Services will refuse to allow either short-term interest
or long-term interest as allowable AB-8 expenditures and, in addition, will require
amendments to the 1982-1983 and 1983-1984 AB-8 plans to remove interest charges
from those fiscal years; and
WHEREAS a final determination on this matter is currently pending with the
Director, State Department of Health Services; and
WHEREAS a finding by the Director, State Department of Health Services,
consistent with the preliminary staff recommendations wou.ld substantially reduce
the allowable AB-8 expenditures in Contra Costa County thereby substantially
restricting the discretion the Board of Supervisorshas in- balancing its budget
for 1984-1985 requiring that substantial and otherwise unnecessary reductions be
made in mental health, drug, and alcohol programs solely in order to maintain AB-8
.eligible programs regardless of the Board of Supervisors' priorities;
NOW, THEREFORE, BE IT BY THE BOARD OF SUPERVISORS RESOLVED that the
Board requests the intervention of members of this County's legislative delegation
with the Director, State Department of Health Services, in an effort to convince
the Director that the interest charges are an appropriate allowable AB-8 expendi-
ture in that they are routinely recognized costs of doing business, and that the
Director's failure to endorse the County's position in this matter will result in
the Board of Supervisors having to make substantial reductions in mental health,
drug, and alcohol programs which the Board otherwise would prefer not to make.
BE IT FURTHER RESOLVED that the County Administrator forward copies of
this Resolution to each member of this County's legislative delegation. ,
1 hereby certify that this is a true and correct coPY of
an action taken and entered on the minutes of the
Board of Supervis re on he date shown. I ;
Orig. Dept.: County Administrator �f
cc: Legislative Delegation ATTESTED:
County Auditor J: L S
R. OON, OUNTY CLERK
Acting Health Services Director and ex officio Clerk of the Board
State Dept. of Health Services
Deputy
By
RESOLUTION NO. 84/ 417 000088