City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00672 6/20/2023 Consent Item 4.
Authorization to Open a Reimbursable Fund and Complete Fiscal Year (FY) 2022/23 Budget Transfers for the Sacramento City-County Office of Metropolitan Water Planning (Water Forum)
File ID: 2023-00672
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) open a new fund titled City-County Office of Metropolitan Water Planning (CCOMWP) Reimbursable Fund (fund 7105); 2) transfer the United States Department of the Interior Bureau of Reclamation (USBR) grant match of $58,979 from the Habitat Management Element (HME) fund balance (fund 7104) to the American River Floodplain and Side-Channel Restoration Project (G14140400, fund 7104); and 3) transfer $250,000 from the HME fund balance (fund 7104) to the CCOMWP FY2022/23 Operating Budget (fund 7104).
Contact: Jessica Law, Executive Director, (916) 808-1998, [email protected], Citywide and Community Support, Sacramento City-County Office of Metropolitan Water Planning; Penny Buchman, Supervising Financial Analyst, (916) 808-1481, [email protected], Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Additional Description/Analysis
Issue Detail: When the Water Forum was formed, two operating funds were created: Water Forum Successor Effort (WFSE) (fund 7103) and Habitat Management Element (HME) (fund 7104).
However, since its inception, Water Forum has periodically received Federal, State and/or local grant funding to implement projects that serve the Water Forum’s coequal goals to: 1) Provide a reliable and safe water supply for the region’s economic health and planned development through to the year 2030; and 2) Preserve the fishery, wildlife, recreational, and aesthetic values of the lower American River. Thus far, this has included but is not limited to salmonid habitat projects on the Lower American River and water use efficiency studies.
File ID: 2023-00672 6/20/2023 Consent Item 4.
Recent efforts to align Water Forum operations with current City fiscal policy identified the need to separate Water Forum’s grant funds from the HME Fund resulting in the need to open a new fund named CCOMWP Reimbursable Fund (fund 7105).
In addition, during the review of the funds, staff identified that grant resolution (R2019-0108) did not include the authority to transfer match funding for the USBR grant in the amount of $58,979 to the grant program. The review also identified that the labor reimbursements to the WFSE Fund (fund 7103) from the HME Fund (fund 7104) were partially completed from FY2019/20 to FY2021/22. The reimbursement has been completed in the amount of $257,481 causing a budget overage of approximately $250,000 in the CCOMWP Approved FY2022/23 Operating Budget.
Policy Considerations: This report is consistent with Council’s direction and adopted budget principles to use one-time resources strategically, maintain a fiscally sustainable balanced budget and keep the Council informed on the fiscal condition of the City.
Economic Impacts: None
Environmental Considerations: Administrative and fiscal management of grant funds do not constitute a project and are therefore exempt from CEQA review [CEQA Guidelines § 15378(b)(2) and (b)(4)].
Sustainability: Not Applicable
Commission/Committee Action: Not Applicable
Rationale for Recommendation: This action is recommended to provide accurate fiscal management and reporting of the Water Forum’s operating and grant funding and to align the grant and operating budgets. The Water Forum’s grant awards have grown exponentially since the Department’s inception. The Department currently administers approximately $12.9 million in Federal and State grant funds resulting in the need to separate the operating and grant funds in the HME Fund (fund 7104). In addition, a grant match is required for the USBR grant and a budget transfer is required to correct the FY2022/23 CCOMWP Approved Operating Budget due to prior year labor reimbursements.
Financial Considerations: Staff is recommending that City Council approve a new fund for the Water Forum titled “CCOMWP Reimbursable Fund” (fund 7105) and all associated accounting and budget transactions needed to separate the existing grant expenditures from the HME Fund (fund 7104) to the CCOMWP Reimbursable Fund (fund 7105).
Staff is also recommending two budget transfers from the HME Fund (fund 7104) available fund balance: 1) to the American River Flood Plain and Side-Channel Restoration Project (G14140400, fund 7104) in the amount of $58,979 for the USBR grant match; and 2) to the FY2022/23 CCOMWP Operating Budget in the amount of $250,000 to cover the estimated yearend overage associated with prior years labor reimbursements.
File ID: 2023-00672 6/20/2023 Consent Item 4.
Local Business Enterprise (LBE): Not Applicable
RESOLUTION NO. 2023 – 00672
Adopted by the Sacramento City Council
June 20, 2023
Authorization to Open a Reimbursable Fund and Complete Fiscal Year (FY) 2022/23 Budget Transfers for the Sacramento City-County Office of Metropolitan Water Planning (Water Forum)
BACKGROUND
A. When the Water Forum was formed, two operating funds were created: Water Forum Successor Effort (WFSE) (fund 7103) and Habitat Management Element (HME) (fund 7104). However, since its inception, the Water Forum has periodically received Federal, State and/or local grant funding to implement projects that serve the Water Forum’s coequal goals to : 1) Provide a reliable and safe water supply for the region’s economic health and planned development through to the year 2030; and 2) Preserve the fishery, wildlife, recreational, and aesthetic values of the lower American River. Thus far, this has included but is not limited to salmonid habitat projects on the Lower American River and water use efficiency studies.
B. The Water Forum’s grant awards have grown exponentially since the Department’s inception. The Department currently administers approximately $12.9 million in Federal and State grant funds resulting in the need to separate the operating and grants funds in the HME Fund (fund 7104). A new fund titled “CCOMWP Reimbursable Fund ” (fund 7105) is recommended to properly account for operating and grant financial transactions.
C. As part of a FY2022/23 review of the Water Forum’s funds, it was determined that a grant match is required for the United States Department of the Interior Bureau of Reclamation (USBR) Grant of $58,979. Resolution (R2019-0108) did not include authority for the grant match. Staff recommends a budget transfer from the HME Fund (fund 7104) available fund balance to the American River Flood Plain and Side-Channel Restoration Project (G14140400, fund 7104).
D. The review of the Water Forum’s funds also found that labor reimbursements from the HME Fund (fund 7104) to the WFSE Fund (fund 7103) were partially completed or not c ompleted in FY2019/20 to FY20 21/22. This resulted in a FY2022/23 reimbursement of $257,481, which caused the FY2022/23 Operating Budget to exceed the Council approved budget . Staff is recommending a budget transf er from the HME Fund ( fund 7104) available fund balance to the FY2022/23 CCOMWP Operating Budget (fund 7104) in the amount of $250,000.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or City Manager’s designee is authorized to create the CCOMWP Reimbursable Fund (fund 7105).
Section 2. City staff is authorized to establish, implement, and reclass the financial transactions needed to record, track, and report the receipts, expenditures, and deposits of related transactions for the CCOMWP Reimbursable Fund (fund 7105), which includes reclass of budget and accounting transactions from the HME Fund (fund 7104) to the CCOMWP Reimbursable Fund (fund 7105).
Section 2. The following budget transfers are approved from the HME Fund (7104) available fund balance:
G14140400 American River Flood Plain and Side-
Channel Restoration
$58,979
80004101 CCOMWP Operating Budget $250,000
Total $308,979