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FY 2024/25 Quarterly Budget Update
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Requested Action(s)
recommendation
Review and approve the revised FY 2024/2025 budget, as presented.
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Financial Impact:
Background Information:
Attached is a spreadsheet providing a summary of second quarter revenues and expenditures as of December 23, 2024.
Income
The FY 2024/2025 budget utilizes the following revenue sources and is expected to result in a contingency of $51,840.74 (5.59%):
- Interest (440300) income is relative to federal interest rates. Pursuant to the guidance provided by the Tehama County Auditor-Controller for the purposes of budgeting interest income, interest revenue is predicted to yield approximately 2% for FY 2024/2025.
- Gate Fees (461001), which are budgeted based on a flat monthly fee of $70,000 per month for FY 2024/2025, represent five months of gate fee revenues.
- Hazardous Waste Fees (461005) represents HHW business fees, donations made to the used oil collection facility (ABOPS) and Ag Oil Facility, fees for load check waste from Waste Connections and the first quarter PaintCare reimbursement for our REAP paint reuse program.
- Miscellaneous Revenue (471120) generally includes grazing lease fees, and other small amounts of revenue. The grazing lease expired September 30, 2024, and the lessee opted to not renew the lease. A new land lease is included in this agenda now that preliminary environmental studies have been completed for Phase III.
- Interfund Revenue (461070) is reimbursed labor costs for grant-related work.
- Fund Balance Available (301900) income utilizes available funds from previous fiscal years as a funding source.
Expenses
Expenses are projected as described below.
- Salary/Wages (510100), PERS (510200), OASDI (510210), Group Insurance (510300), and Unemployment Insurance (510310) take into consideration normal step increases at anniversary dates, the resignation of Recycling Program Analyst II and potential recruitment of a replacement Recycling Program Analyst I/II; as well as the unfortunate passing of the Agency Manager and recruitment for a replacement Agency Manager.
- Pay in Lieu/Misc Payouts (51015) includes payment for accrued vacation or Personal Time Off.
- PERS Unfunded Liability and ADP Misc PERS Unfunded are the Agency’s portion of the PERS unfunded liability, currently at $49,197.40 for FY 2024/25, and an additional discretionary payment to pay down the unfunded PERS loan balance faster.
- Workers Compensation (510400) rates are expected to decrease slightly.
- Property, Crime, Liability, and Pollution Insurance (531500) includes payment of crime, liability and pollution coverage.
- Maintenance of Equipment (53170) includes typical maintenance of equipment.
- Maintenance Structures-Improvement of Grounds (53180) takes into consideration the cost of maintaining the fire suppression systems at the Agency’s two Household Hazardous Waste facilities.
- Membership and Dues (53200) includes membership to the Rural Counties’ Environmental Services Joint Powers Authority and Solid Waste Association of North America.
- Misc Expense (53210) is budgeted at $16,000. This expense account is utilized for Board per diem compensation for meeting attendance.
- Office Expense includes typical office supplies and a monthly lease payment for a multifunction copier. This has been increased to move a phone line if the Board approves the temporary help agreement with Express Employment Services.
- Professional/Special Services (53230) is budgeted for $68,013. Expenses to be funded through current year gate fees include attorney fees, independent audit costs, use of personnel at the Tehama County Auditor-Controller’s office for various accounting services, an administrative fee pursuant to the agreement between the Agency and the County, and janitorial services. This has also been increased to pay for the temporary help position if the Board approves the agreement with Express Employment Services. Below is an itemized breakout of budgeted expenses:
|
|
FY 24/25 |
As of 9/23/24 |
|
Attorney Fees |
$15,000 |
$3,195.90 |
|
Accounting Services Agreement |
$10,000 |
$1,870.13 |
|
Administration Fees |
$23,013 |
$11,506.50 |
|
Audit |
$11,000 |
$0.00 |
|
Lawrence & Associates |
$1,000 |
$40,387.50* |
|
Miscellaneous |
$2,000 |
$0.00 |
|
CEQA/Permitting |
$0.00 |
$0.00 |
|
Janitorial Services |
$6,000 |
$2,850.00 |
|
Express Employment Services |
$3,515.40 |
$0.00 |
|
Total |
$68,013 |
$58,810.03 |
*This amount was mistakenly attributed to Professional Services but should have been attributed to the SB 1383 Local Assistance Grant. This has already been corrected with the TC Auditor.
- Employee Travel/Training (53290) and Transportation (53291) is expected to remain the same for FY 2024/25 and includes typical travel, training, and fuel costs. $325 was reimbursed to the Travel/Training account as it was for a training that was paid for with HD37 grant funds.
- Utilities (53300) reflects anticipated costs for PG&E, Hue & Cry, and fire alarm maintenance, monitoring and testing.
- Hazardous Waste Disposal (558007) is budgeted at $140,000. Total disposal costs are expected to increase this fiscal year and may need to be adjusted at the April Full Board meeting.
- Litter Abatement/Illegal Dumping funds illegal dumping on public roads outside of Baker and Plymire and also supports AB 109 illegal dumping clean-up costs in the community.
As of December 23, 2024, expenditures exceed revenues by $23,858.85. Income is 47.51% of projected revenue for the year. Expenditures are 53.05% of projected expenditures for the year. The retained earnings balance as of December 31, 2024 is $3,066,467.76.
Respectfully submitted,
Paul Freund
Acting Agency Manager