City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02174 1/10/2023 Consent Item 19.
Budget Adjustment for Funding of Joint City/County Organizations File ID: 2022-02174
Location: District 4
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to decrease the Fiscal Year(FY) 2022/23 Convention and Cultural Services Department revenue and expenditure budgets in the General Fund (Fund 1001) by $452,000.
Contact: Kristina Byrd, Administrative Officer, (916) 808-7154, [email protected], Convention & Cultural Services Department
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: Each year, through its budget process, Sacramento County allocates a portion of its Transient Occupancy Taxes (TOT) to provide operational support to various organizations located in the City of Sacramento, including the SMUD Museum of Science and Curiosity (MOSAC) and the Sacramento History Museum. The County’s contribution amount is budgeted annually into the City’s approved revenue budget for each division. In this case, the amount is budgeted into the Convention and Cultural Services Division budget.
The City invoices the County each quarter for one fourth of its annual contribution amount and records the payment as General Fund (Fund 1001) revenue. The City then makes a payment from the City’s allocated expense budget to each organization which includes both the City and County portion of the quarterly contributions.
Since the City of Sacramento is not providing any service to the County to record earned revenue,
File ID: 2022-02174 1/10/2023 Consent Item 19.
this process is to pass through funding from the County directly to the organizations. City staff recommends recording the contribution from the County as a direct reduction to the expense paid from the operating budget instead of recording it as General Fund (Fund 1001) revenue.
Policy Considerations: The proposed recommendation supports the City’s 2035 General Plan Goal ERC 4.1 to provide a diversity of arts and cultural facilities and programs for people of all ages to improve knowledge of Sacramento’s history, enhance quality of life, and enrich community culture, and policies that encourage partnerships with organizations to support cultural educational activities and programming, children’s programming, and reinvestment in City facilities.
Economic Impacts: Not applicable.
Environmental Considerations: The recommendation in this report is not a project under the California Environmental Quality Act (CEQA) because it involves government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Section 15378(b)(4) of the CEQA Guidelines (Cal.
Code Regs., tit. 14, §15000 et seq.), and is, therefore, not subject to CEQA pursuant to Section 15060(c)(3) of the CEQA Guidelines.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Approval of the recommended action will better align the budget for the aforementioned organizations with the City passing through payment rather than collecting earned revenue.
Financial Considerations: The General Fund (Fund 1001) revenue and expenditure budgets in the FY2022/23 Convention and Cultural Services Department will be decreased by $452,000. Actual expenses will be reduced by the same amount by year-end as the contributions will be recorded as a direct reduction to actual expenditures. The recommended budget adjustment has no impact to the Convention and Cultural Services Department’s General Fund reliance.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO MAKE BUDGETARY REVENUE ADJUSTMENTS FOR FISCAL YEAR 2022/23 FUNDING OF JOINT
CITY/COUNTY ORGANIZATIONS
BACKGROUND
A. The City of Sacramento and County of Sacramento annually provide joint operating support for the SMUD Museum of Science and Curiosity (MOSAC formerly the Powerhouse Science Center) and the, Sacramento History Museum., and Center for Sacramento History
B. In September 2022, the County Board of Supervisors approved its allocation of Transient Occupancy Taxes (TOT) to the aforementioned organizations for Fiscal Year 2022/23 to be used applied by the City in administeringto the organization for operational support. The County’s funding is budgeted annually into the City’s approved revenue budget for each division.
C. Each quarter, the City invoices the County for a fourth of their its annual contribution and records the payment as General Fund (Fund 1001) revenue. The amount is then included in a quarterly reconciliation where the organization invoices the City for both the combined City and County contributions combined.
The payment is made from the City’s allocated expense budget.
D. The City of Sacramento is not providing any service to the County of Sacramento to record earned revenue. The amount the City invoices the County is passed through to the jointly funded organizations by the process described above. City staff recommends realigning the budget to record the contribution from the County as a direct reduction to the expense paid from the operating budget instead of recording it as General Fund (Fund 1001) revenue.
BASED ON THE FACTS SET FORTH IN THIS BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to decrease the FY2022/23 Convention and Cultural Services Department revenue and expense expenditure budgets in the General Fund (Fund 1001) by $684452,000.