Back

PROPOSAL:

FY 1997-98 Budget Transfer

SYNOPSIS:

At Board direction, staff has periodically brought to the Board all necessary budget transfers occurring during the fiscal year. Budget transfers are the result of Board actions, further definition of programs approved in the budget, reorganizations, or budget corrections. These transfers move moneys to the appropriate expenditure accounts and do not require additional appropriations.

COMMITTEE:

Not Applicable

RECOMMENDED ACTION:

1. Transfer $70,000 from Stationary Source Compliance’s Services and Supplies Major Object, Professional and Special Services account, to their Salary and Employee Benefits Major Object, Overtime account, to pay for overtime expenditures related to enhanced compliance inspections at gasoline stations and other facilities with liquid fuel dispensing equipment.

2. To properly code in the general ledger the first payment on the purchase of a new integrated Finance and Human Resources system, which was approved by the Board in April 1998, transfer a total of $350,000 from the Services and Supplies Major Object, Professional and Special Services accounts ($230,000 from Information Management’s Professional and Special Services and $120,000 from Finance’s Professional and Special Services account) to Information Management’s Fixed Assets Major Object.

3. Transfer $200,000 from the Fixed Assets Major Object to the Salary and Employee Benefits Major Object, Retirement Benefits account, for additional retirement contributions due to the San Bernardino County Retirement Association as a result of the October 1997 California Supreme Court case involving what constitutes earnable compensation for retirement purposes.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

Stationary Source Compliance (SSC) staff has worked overtime to reduce the application backlog, to perform additional Rule 461 facility compliance inspections at gasoline stations and other facilities with liquid fuel dispensing equipment, and to perform other critical tasks. At Board direction, SSC has increased its inspections of Rule 461 facilities through the use of overtime. This transfer moves unspent funds from their Services and Supplies Major Object, Professional and Special Services account, to their Salary and Employee Benefits Major Object, Overtime account, to pay for additional Rule 461 compliance inspections.

In April 1998 the Board approved the purchase of a new integrated Finance and Human Resources system. The first payment, which will be in the amount of $500,000, will be made before the end of the fiscal year. Funds are available in the FY 1997-98 Budget; however, budget transfers are required to move the funds to appropriate accounts so that the payment can be accurately recorded in the general ledger.

In October 1997 the California Supreme Court ruled against the County of Ventura in a case involving what constitutes earnable compensation for retirement purposes. As a result of the court decision, additional types of pay not previously considered earnable compensation must now be considered earnable compensation. These types of pay include skill-based pay, employer contribution cap for employee benefits, hazard pay, standby pay, pay for performance, shift differential pay, sick leave time sell back, rideshare incentive pay, parking fee advance and suggestion awards. The court ruling, which is retroactive to October 1997, will result in higher retirement benefits, higher retirement contributions paid by some employees, and higher AQMD retirement costs. To pay the retroactive employer-paid retirement costs to the San Bernardino County Employees Retirement Association, a transfer of $200,000 is required. The transfer will move funds from the Fixed Asset Major Object (a portion of the amount budgeted for fixed asset item #3, Upgrade Desktop Equipment to Support Higher Network Speed) to the Salary and Employee Benefits Major Object, Retirement Benefits account.

Proposal

Transfer $70,000 from Stationary Source Compliance’s Services and Supplies Major Object, Professional and Special Services account ($12,000 from Control Equipment Evaluation, $50,000 from Test Procedures/Vapor Recovery, and $8,000 from Title III Implementation), to their Salary and Employee Benefits Major Object, Overtime account, to perform additional Rule 461 compliance inspections.

In April 1998 the Board approved the purchase of a new integrated Finance and Human Resources system. In order to accurately record in the general ledger the first payment for the new system, transfer $230,000 from Information Management’s Services and Supplies Major Object, Professional and Special Services account (Accounting Migration), and $120,000 from Finance’s Services and Supplies Major Object, Professional and Special Services account ($100,000 from Bi-Tech Software Support and $20,000 from Performance Audit) to Information Management’s Fixed Assets Major Object.

Transfer $200,000 from the Fixed Asset Major Object to the Salary and Employee Benefits Major Object, Retirement Benefits account, to pay the San Bernardino County Retirement Association for the retroactive retirement benefits contribution that resulted from the October 1997 Supreme Court Decision concerning earnable compensation.

Resource Impacts

Funds for the transfers are available in the FY 1997-98 Budget.

/ / /