Agenda

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Public Hearings 8.

LAFCO

Meeting Date:

05/23/2019

Information

SUBJECT

Consider adoption of the Final LAFCo Budget for FY 2019/20

RECOMMENDED ACTION

1. Receive staff presentation on the Final Budget for FY 2019/20 and open the Public Hearing for public comments on the item.

2. Close the Public Hearing and adopt the Final LAFCo Budget for FY 2019/20.

FISCAL IMPACT

The attached LAFCo budget includes proposed revenues and expenditures for LAFCo for FY 2019/20. This budget maintains resources for the Commission to meet its responsibilities under the Cortese-Knox-Hertzberg (CKH) Act and the Shared Services Program for FY 2019/20. Adopting a final budget will ensure LAFCo is adequately funded to meet its legal obligations and maintain the shared services program.

REASONS FOR RECOMMENDED ACTION

Each year Yolo County LAFCo adopts an annual budget with notice to the four cities and Yolo County. In accordance with the CKH Act, a proposed budget must be adopted by May 1 and final budget by June 15 of each year. Following approval of the final budget and no later than July 1, the auditor requests payment from each agency.

In accordance with the CKH Act, the cities and County split the cost of LAFCo funding 50/50. A formula for the split of the cities’ share is outlined in Government Code Section 56381 (b)(1); which would be in proportion to a city’s tax revenue or an alternative method approved by a majority of the cities. Beginning in FY 2007/08, the cities of Yolo County developed an alternative formula to apportion their 50% of LAFCo funding by averaging a city’s general tax revenue (less grant monies) and population.

In summary, each agency's portion of the overall LAFCo budget is listed below, with the change relative to last year noted:

City of Davis     16.95%
City of West Sacramento     16.34%
City of Winters     1.63%
City of Woodland     15.08%
County of Yolo     50.00%

BACKGROUND

The draft budget was heard and discussed at the April 25, 2019 meeting. There have been no issues raised or changes to the budget since it was presented at the draft hearing.

The budget is relatively "flat" compared to last year with a total appropriation of $472,476. Although salaries and pension costs continue to rise, there is a compensating offset due to the Executive Officer's house exchange and reduced hours this fall which results in 85% of the position's typical salary costs. However, this offset will occur this fiscal year only and may feel like a "bump" in the following fiscal year (FY 20/21) when this position is back at 100%. The Services and Supplies costs are also very similar to last year reducing somewhat because LAFCo budgeted for an audit last fiscal year that is only done every three years.

Even though the total apportionment is "flat", there is additional carryover fund balance as compared to last year, therefore, total agency cost goes down by 4.34%. The following itemizes the draft budget cost for each agency (and net increase as compared to the previous fiscal year).

City of Davis     $70,423 (decrease of $5,568)
City of West Sacramento     $67,863 (decrease of $2,022)
City of Winters     $6,787 (decrease of $291)
City of Woodland     $62,627 (decrease of $1,131)
County of Yolo     $207,700 (decrease of $9,013)

Following the April meeting, staff sent the proposed budget to the city/county managers for their review and comment via email on April 25th, 2019. Staff has only heard back from the City of Woodland City Manager indicating he has no issues with the proposed budget.

Attachments
LAFCo 2019/20 FINAL Budget

Form Review

Inbox	Reviewed By	Date
Christine Crawford (Originator)	Christine Crawford	05/14/2019 12:58 PM
Form Started By: Christine Crawford		Started On: 05/13/2019 04:46 PM
Final Approval Date: 05/14/2019