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Approve an Appropriations Transfer Request (ATR) of $41,000 recognizing unanticipated Other Revenue to offset increased interest expenditure to the General Fund loan (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Auditor-Controller’s Office (ACO) recommends that the Board of Supervisors approve an Appropriations Transfer Request (ATR) of $41,000 recognizing unanticipated Other Revenue offset by an increase in appropriations for interest expenditure to the General Fund loan.
SUMMARY/DISCUSSION:
In 2008, the Board approved a total loan of $25 million from the General Fund to redeem the Pension Obligation Bonds Series B-1 and B-2 Auction Rate Securities. The balance of the General Fund loan as of June 30, 2017 will be $7 million.
The increase in interest expenditure to the General Fund loan is due to the higher interest yield in the County Treasury. The increase in Other Revenue is due to increased collection from the Courts due to higher pension rate and increased wages.
The ATR is necessary to recognize unanticipated revenue to cover the increased interest expenditure to the General Fund loan.
FINANCIAL IMPACT:
The Pension Debt Service Fund will exceed its current appropriations for interest expenditure by $41,000. This increase is covered by additional revenue from increased collection from the Courts.
ALTERNATIVES:
The Board of Supervisors could choose not to approve the Appropriations Transfer Request; however, this alternative is not recommended as the recognition of unanticipated revenue is necessary to cover the increased interest expenditure.
OTHER AGENCY INVOLVEMENT:
The County Administrator has reviewed and recommends the approval of the ATR.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION