3.2 Staff Report

ANALYSIS 

Background

After the end of each quarter in a fiscal year, staff reports to the Budget Committee and the full Commission regarding the level of expenditures and revenues through that time period. This report discusses the expenditures and revenues through the end of the second quarter of Fiscal Year 2018-19.

A spreadsheet is attached, for Commissioners’ information. A report and data were provided to members of the Budget Committee in February.

Overall

Expenditures through the second quarter of the fiscal year totaled $426,300, or about 46 percent of the Adopted Budget of $796,055. Almost $713,500 in revenues were received, about 90 percent of the budgeted amount. Details are provided in the narrative below.

Expenditures: Salaries and Benefits

Of the 26 pay periods in the fiscal year, 12.1, or 46 percent, were covered in the first two quarters. The expenditure of $256,039 is 43.3 percent of the total Adopted Budget amount of $590,835, which appears to put the expenditure on target for the year.

It should be noted, however, that the half-time Commission Clerk position was filled at the end of December, a change that will result in greater salary/benefit expenditure for the remainder of the fiscal year. Additionally, near the beginning of the fiscal year, the County approved a greater contribution towards the cost of health insurance for management/department heads, which will result in increased benefits costs.

Expenditures: Services and Supplies

• Approximately 55 percent of the Services and Supplies Adopted Budget of $205,220 has been expended through the second quarter. Most accounts were on target, below a 50 percent expenditure level or reflect a single, one-time payment. Explanations about several accounts are provided below:
• Account 51211 (Legal Services) – The $11,105 expended reflects both typical legal counsel preparation for, and attendance at, Commission meetings and extended work associated with: (a) revision of the Roseland Area reorganization resolution to align with the City of Santa Rosa-County of Sonoma pre-annexation agreement; (b) emergency medical services issues; (c) proposed amendments to the Commission’s memorandum of understanding with the County; and (d) fire district reorganizations involving Roseland, Windsor, Bennett  Valley, and Rincon Valley Fire Protection Districts and County Service Area No. 40 (Fire Services).
• Account 51211 (Legal Services) – Expended at $11,105, or 75 percent of the $15.000 Adopted Budget, this account reflects a variety of charges but primarily payments to the California Department of Tax and Fee Administration for its processing of boundary changes as a result of annexations. LAFCO pays the Department directly but includes the established cost as part of the Commission’s processing fee for applications.
• Account 51301 (Legal Notices) – This account is expended at $2,230 or almost 75 percent of the budgeted $3,000. It reflects the substantial number of notices of hearing that have been published in the Press-Democrat for the fiscal year to date. Notices are required prior to the Commission’s consideration of an amendment to an agency’s sphere of influence or a reorganization/change of organization in which there is less than 100 percent consent. Staff expects a substantial overage in this account by year-end.
• Account 55601 (Private Car Expense) – The $1,074 expended, of the $1,000 budgeted, reflects attendance by Commissioner Loveless and staff at the CALAFCO Annual Conference in Yosemite in October; the area is primarily accessible by car.
• Account 52112 (Office Furniture) - $29,673 was expended to cover the costs associated with furnishing offices and conference room at Sonoma LAFCO’s new office location in downtown Santa Rosa. This is an increase over the projected cost of $25,000.

Revenues

Revenues received through the end of the first quarter totaled $713,500 halfway through the fiscal year, about 90 percent of the budget. All apportionment revenue was received and just over $9,000 interest on invested cash, an amount greater than the $5,000 budgeted. Additionally, $37,100 in processing fees was received.

Fund Balance

Through the first two quarters of the fiscal year, revenues received have sufficiently covered expenditures. As reported at the end of the first quarter, the available, non-committed Fund Balance approximates $203,800. This amount will change if Fund Balance monies are needed to balance expenditures and revenues by year end or are not used as has been projected.

Staff will continue to monitor expenditures and revenues for the remainder of the year.

Recommendation 

Staff recommends that the Commission review, consider, and accept the report of expenditures and revenues through the second quarter of Fiscal Year 2018-19.

Alternatives to Recommendation 

None

Attachments 

1. Sonoma LAFCO Expenditures and Revenue through Quarter 2, Fiscal Year 2018-19.