LAFCO

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Public Hearings 8.

Meeting Date:

06/22/2022

Information

SUBJECT

Consider adoption of the Final LAFCo Budget for Fiscal Year 2022/23

RECOMMENDED ACTION

1. Receive staff presentation on the Final Budget for FY 2022/23 and open the Public Hearing for public comments on the item.
2. Close the Public Hearing, consider and adopt the Final LAFCo Budget for FY 2022/23.

FISCAL IMPACT

The attached LAFCo budget includes proposed revenues and expenditures for LAFCo for FY 2022/23. This budget maintains resources for the Commission to meet its responsibilities under the Cortese-Knox-Hertzberg (CKH) Act. 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 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 other words, the higher the revenue and population of a city relative to the others, the higher the share of the LAFCo budget.

In summary, each agency's portion of the overall LAFCo budget is listed below, with the previous/current FY noted in parenthesis:

City of Davis - 16.40% (previous year 16.73%)
City of West Sacramento - 17.50% (previous year 17.48%)
City of Winters - 1.61% (previous year 1.51%)
City of Woodland - 14.48% (previous year 14.29%)
County of Yolo - 50.00%

BACKGROUND

The draft budget was heard and discussed at the April 28, 2022 meeting. The overall budget remains flat as compared to last year, but as mentioned last month agency costs are going up because there is less carryover fund balance available to offset costs. Following Commission approval, staff emailed the draft budget to the city/county managers and received no response or indication of concern.

Changes to the final budget from the draft budget presented include:

The salary and benefits schedule provided by HR did not originally include a 10-year longevity pay increase of 2.5% for the Executive Officer effective December 2021. Staff recently caught the error and updated the budget accordingly.
Mark Krummenacker, our financial analyst working as an Extra Hire employee, has resigned effective June 30, 2022 returning to the Yolo County Department of Financial Services (still working with special districts). LAFCo will require financial work for our MSRs, so the $22,500 of funding has been moved from Extra Hire under Salaries and Benefits (Account 500110) to Professional Services and Supplies (Account 501165) because LAFCo will likely contract for this service instead.
The Department of Finance released new population projections on May 2, 2022, so the apportionment changed slightly for the cities.

The Final FY 2022/23 budget includes a total appropriation of $517,756 and total uses of $522,756. The $5,000 difference reflects the set aside for a future LAFCo audit (3-year cycle). The following itemizes the cost for each funding agency this year:

City of Davis - $74,043
City of West Sacramento - $78,983
City of Winters - $7,283
City of Woodland - $65,369
County of Yolo - $225,678

Attachments
ATT A-Final FY 2022-23 Budget
ATT B-Agency Apportionment Final FY22-23 Budget

Form Review

Form Started By: Terri Tuck		Started On: 06/21/2022 09:05 AM
Final Approval Date: 06/21/2022