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Approve a $1,713,057 Appropriation Transfer Request (ATR) to rebudget unspent appropriations in the County Disaster Fund (Fund 282) from FY2019/20 to FY2020/21 to cover ongoing expenses from the COVID-19 pandemic (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Administrator’s Office recommends that the Board of Supervisors approve a $1,713,057 Appropriations Transfer Request (ATR) to rebudget unspent appropriations in the County Disaster Fund (Fund 282) from FY2019/20 to FY2020/21 to cover ongoing expenses from the COVID-19 pandemic (4/5 vote required)
SUMMARY/DISCUSSION
On February 27, 2020, the County Administrator signed a Proclamation of Local Emergency in response to an extreme threat to public health caused by the Novel Coronavirus (COVID-19) in Solano County. The Proclamation was ratified by the Board on March 2, 2020, followed by declarations from the State and federal governments on March 4 and 6 respectively. As of July 29, 2020, there have been 3,283 confirmed cases of COVID-19 in Solano, and 36 COVID-19 related deaths.
On May 5th, 2020, the Board authorized the use of up to $2,000,000 in General Fund Contingency to pay for costs related to COVID-19 emergency response, pending reimbursement from state and federal emergency appropriations, and approved an Appropriation Transfer Request (ATR) increasing expenditures in Fund 282 County Disaster Fund by $2,000,000.
The funds reflected in the County Disaster Fund were authorized to address COVID-19 emergency response costs in Solano County. The fund is used to collect costs which are FEMA reimbursement eligible. The County’s actual costs reported for COVID-19 in the County Disaster Fund through June 30, 2020 were approximately $286,944. This cost represents direct COVID-19 charges which have been billed to the County Disaster Fund in FY2019/20 and primarily reflect Services and Supplies charges. The costs reported in the County Disaster Fund do not represent total County costs for COVID-19 as in many cases department COVID-19 costs remain in Department budgets. County staff are working to compile COVID-19 costs countywide and will returning to the Board with a CARES Act update on August 11, 2020 to provide a more comprehensive update on County costs for COVID-19. Additionally, costs continue to be incurred as the number of COVID-19 cases rises in Solano County and throughout the State. While it is difficult to predict exact costs, staff projects that the remaining unspent FY2019/20 appropriations in the County Disaster Fund will be necessary for critical expenditures that arise prior to the receipt of Coronavirus Relief Fund monies and other federal and State reimbursements for which the County may be eligible. Therefore, the County Administrator is recommending the Board approve the rebudget of $1,713,057 in unspent funds allocated in FY2019/20 into the FY2020/21 County Budget to address COVID-19 costs.
FINANCIAL IMPACT:
There is no additional impact to the General Fund to transfer the previously authorized unspent appropriations. Any remaining appropriations at the end of FY2020/21 may be returned to General Fund Contingency. The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2020/21 Preliminary Budget.
ALTERNATIVES:
The Board could choose not to approve the ATR and instead consider funding when staff returns to the Board in September for Recommended and Supplemental Budget discussions; however, this is not recommended as COVID-19 related costs continue to be incurred and invoices will be payable prior to the adoption of the FY2020/21 Budget.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller has reviewed the staff report and concurs with the CAO recommendation.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION