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On or about the 10th day of February, the Chief Financial Officer shall present to the officer who is the head of each office, department, institution and district and to each board and commission budget forms prepared by said Chief Financial Officer on which such officer, board or commission shall prepare estimates of (1) Salaries and Employee Benefits expenditures and (2) Services and Supplies, Other Charges, Fixed Assets and Expenditure Transfers and Reimbursements for the next ensuing fiscal year.
(Amended by Ord. No. 2672 (N.S.), adopted 3-3-64; amended by Ord. No. 6272 (N.S.), effective 5-20-82; amended by Ord. No. 10185 (N.S.), effective 1-5-12; amended by Ord. No. 10635 (N.S.), effective 12-19-19; amended by Ord. 10916 (N.S.), effective 10-10-24; amended by Ord. No. 10922 (N.S.), effective 11-21-24)
The officer who is the head of each office, department, institution and district and each board and commission shall file with the Chief Financial Officer and the Chief Administrative Officer on the forms furnished by the Chief Financial Officer, itemized estimates of proposed expenditures required by such office, department, institution, district, board or commission for the next ensuing fiscal year, together with an itemized estimate showing the anticipated revenue from sources other than property taxation, that will accrue to the office, department, institution, district, board or commission and such additional information thereon as may be required by the Chief Financial Officer and the Chief Administrative Officer. The estimates of Salaries and Employee Benefits, Services and Supplies, Other Charges, Fixed Assets, estimated revenues, and Expenditure Transfers and Reimbursements shall be submitted as required herein not later than the 20th day of April of each year.
(Amended by Ord. No. 2672 (N.S.), adopted 3-3-64; amended by Ord. No. 6272 (N.S.), effective 5-20-82; amended by Ord. No. 10185 (N.S.), effective 1-5-12; amended by Ord. No. 10635 (N.S.), effective 12-19-19; amended by Ord. 10916 (N.S.), effective 10-10-24; amended by Ord. No. 10922 (N.S.), effective 11-21-24)
Cross reference(s) -- Preparation of budget for area agency on aging department, § 82.25; preparation of budget for department of the chief medical examiner, § 161.5; preparation of budget for department of human resources, § 200.5; preparation of budget for department of revenue and recovery, § 210.5; preparation of budget for department of animal control, § 211.4; preparation of budget for department of health services, § 232.3; preparation of budget for department of social services, § 255; presentation of department of planning & development services annual budget to commission, § 390; preparation of budget for department of planning & development services, § 393.1; preparation of budget for department of general services, § 398.4; preparation of budget for department of information services, § 399.5; preparation of budget for department of public works, § 454; preparation of budget for department of transborder affairs, § 535; preparation of budget for department of public defender, § 694; preparation of budget for department of alternate defense counsel, § 703.
The purpose of this code is to establish guidelines in accordance with industry best practices, specifically the Government Finance Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting, regarding the maintenance and use of General Fund Unrestricted Fund balance and the use of one-time revenues to help protect the fiscal health and stability of the County. Available Unrestricted General Fund balance shall be determined by excluding Unrestricted Fund balances that have been Committed or Assigned thereby focusing solely on Unassigned Fund balance.
A portion of Unassigned Fund balance shall be maintained as a reserve (General Fund Reserve) at a minimum of two months of audited General Fund expenses (which is the equivalent of 16.7% of audited General Fund expenses). The General Fund Reserve will protect the County against expenditure and revenue volatility, natural disasters and other unforeseen emergencies, economic downturns, unfunded pension liabilities, and aging infrastructure.
Appropriation of the General Fund Reserve minimum balance requires at least one of the following criteria to be met:
A. An unanticipated revenue shortfall or expenditure increase where total expenditures exceeds total revenues.
B. A legally declared emergency as defined in Government Code Section 29127.
C. To absorb unforeseen changes in pension liability, including changes in the assumed rate of return, market losses, to maintain or reduce the unfunded pension liability, or other related changes as recommended by the Chief Administrative Officer (CAO).
D. To help mitigate risk due to maintaining aging infrastructure including capital improvements, new construction, or other recommendations made by the CAO.
E. To the extent reserves are available, a recommendation made by the CAO to promote the long-term fiscal health and stability of the County.
Furthermore, all appropriation of the General Fund Reserve minimum balance and/or transfers from the General Fund Reserve appropriation, shall require a 4/5th vote of the Board of Supervisors.
To the extent that available Unassigned Fund balance is available in excess of General Fund Reserve minimum balance, the CAO may recommend the appropriation or commitment of the available balance for one-time uses. These recommendations may appear in the CAO Recommended Operational Plan or as an agenda item for a regularly scheduled meeting of the Board of Supervisors.
(Added by Ord. No. 10400 (N.S.), effective 1-14-16; amended by Ord. No. 10509 (N.S.), effective 1-4-18; amended by Ord. No. 10635 (N.S.), effective 12-19-19)
From time to time, fund balance may be committed by the Board of Supervisors and/or assigned by the CAO for specific purposes. A commitment requires formal board action to establish, change or cancel while an assignment may be established, changed or cancelled by the CAO. Changing or cancelling a commitment or assignment of fund balance shall not be approved if such action would result in increased and/or unfunded costs or liabilities such as those required to fulfill existing contractual obligations or to identify alternative funding sources for the original Commitment or Assignment purpose or if such action would jeopardize the long term fiscal sustainability of the County. With the exception of fund balance commitments established because of restrictions on certain revenues, such commitments and/or assignments shall not be approved if they would result in the amount of the General Fund Reserve falling below the minimum required balance.
(Added by Ord. No. 10400 (N.S.), effective 1-14-16; amended by Ord. No. 10509 (N.S.), effective 1-4-18; amended by Ord. No. 10635 (N.S.), effective 12-19-19)
In the event that the General Fund Reserve falls below the minimum required balance, the CAO shall present a plan to the Board of Supervisors for restoration of the targeted levels. The plan should restore balances to targeted levels within one (1) to three (3) years, depending on the use, reasons for use, and severity of the event. In the event that the General Fund Reserve is used to serve as a short-term financing bridge, the plan shall include mitigation of long-term structural budgetary imbalances by aligning ongoing expenditures to ongoing revenues.
(Added by Ord. No. 10509 (N.S.), effective 1-4-18; amended by Ord. No. 10635 (N.S.), effective 12-19-19)
All fund balances, including the General Fund Reserve, shall be recognized as a one-time funding source, and all appropriations supported by fund balances should be appropriated for one-time uses or in conjunction with a long-term financial plan to cover short-term expenditure increases or revenue shortfalls to prevent budgetary imbalances.
In general, fund balance is established when assets are greater than liabilities at the end of a year. In practice, fund balance can be generated when temporary one-time revenues exceed expenditures in any year. One-time resources may include grants, revenue from the sale of assets, one-time expenditure savings, and revenue sources which may be available for more than one year but are either non-recurring or will be required to address future expenditure growth that is anticipated to exceed future revenue growth. One-time expenditures may include the following: program startup costs, short-term expenditure increases or revenue shortfalls to prevent budgetary imbalances, early debt retirement, capital costs, or other one-time expenditures as recommended by the CAO.
(Added by Ord. No. 10509 (N.S.), effective 1-4-18; amended by Ord. No. 10635 (N.S.), effective 12-19-19)
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