Finance & Management Committee
March 25, 2025
AGENDA REPORT
TO: Jestin D. Johnson FROM: Erin Roseman
City Administrator Director of Finance
SUBJECT: SUPPLEMENTAL – Informational
Report On The Equipment Services
Fund
DATE: March 13, 2025
City Administrator Approval Date:
RECOMMENDATION
Receive An Informational Report On The Amount Of Funds Available In The Equipment Services Fund And Information About, And A Copy Of All Directives Regarding, Allowable Use Of The Equipment Services Fund.
REASON FOR SUPPLEMENTAL
During the February 27, 2025 Special Finance & Management Committee meeting, committee members requested responses to a question in relation to the allowable uses of the Equipment Services Fund based on federal grant funding received. Staff reviewed internal financial records to provide the following analysis.
1. What is the dollar amount in the Equipment Services Fund from a federal grant?
The budgeted federal grant fund contributions over the five-year time span from FY 2019-20 through FY 2023-24 are reflected in Table 1 below. Over the course of the five years, federal grants were budgeted to contribute approximately $1.1 million dollars. However, regardless of whether or not federal funds are directly allocated to this fund, it must follow federal cost allocation principles as they are applied Citywide. This precludes the usage of these funds for vehicle acquisitions.
Table 1: Federal Grant Fund Budgeted Contributions to the Equipment Services Fund From FY 2019-20 to FY 2023-24 in $’s
Fund Number – Fund Name FY19-20 FY20-21 FY21-22 FY22-23 FY23- 24 5 Year
Total
2102 - Department of Agriculture 1,906 1,906 - - - 3,812 2108 - HUD-CDBG 52,901 30,172 - - - 83,073
2128 - Department of Health and
Human Services
210,431
405,003
204,769
193,098
11,930
1,025,231
Total 265,238 437,081 204,769 193,098 11,930 1,112,116
Jestin Johnson (Mar 14, 2025 10:29 PDT)
Mar 14, 2025
Finance & Management Committee
March 25, 2025
Erin Roseman (Mar 13, 2025 16:41 PDT)
Jestin D. Johnson, City Administrator
Subject: SUPPLEMENTAL - Informational Report On The Equipment Services Fund Date: March 13, 2025 Page 2
Below are links to regulatory guidelines and audit findings on this matter related to the cost. • Guidance regarding direct and indirect cost is located here:
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject- group- ECFRd93f2a98b1f6455
• Specific Guidance for Local Governments is here:
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group- ECFRd41a10959e1acab
• Guidance regarding Capital Acquisitions is here:
§ 200.439 Equipment and other capital expenditures
ACTION REQUESTED OF THE CITY COUNCIL
Receive An Informational Report On The Amount Of Funds Available In The Equipment Services Fund And Information About, And A Copy Of All Directives Regarding, Allowable Use Of The Equipment Services Fund.
For questions regarding this report, please contact Bradley Johnson, Budget Administrator, Finance Department at (510) 207-5730.
Respectfully submitted,
ERIN ROSEMAN
Director of Finance
Finance Department