Subject:
Title
Fiscal Year 2022 Board Budget Amendment No. 22-02 to realign appropriation from Reserve for Contingencies in the General Fund and Risk Financing Fund for unanticipated Fiscal Year 2022 expenditures.
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Recommended Action:
Recommended Action
Approval of the Fiscal Year 2022 Board Budget Amendment No. 22-02 pursuant to section 129.06(2)(b) realigning:
• $6,179,880.00 from Reserves for Contingencies in the General Fund for the Sheriff’s Office to purchase a new helicopter to replace their current helicopter, which is 31 years old.
• $1,125,210.00 from Reserves for Contingencies in the Risk Financing Fund to Risk Management to pay for insurance premiums associated with highly protected properties owned by the Utilities Department, as well as a change in policy carriers for the Sheriff to cover their doctors as the department switches to contracted employees.
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Strategic Plan:
Ensure Public Health, Safety, and Welfare
2.1 Provide planning, coordination, prevention, and protective services to ensure a safe and secure community.
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources.
Summary:
Summary
At the request of the Sheriff, this amendment realigns appropriation from General Government - Reserves for Contingencies to provide sufficient budget to purchase a new helicopter to replace their current helicopter. The total cost of the replacement is $6,179,880.00. The current helicopter is 31 years old and has reached its end-of-life based on analysis of anticipated future repair and maintenance costs compared to purchasing a new helicopter. The helicopter purchase was approved with the Sheriff’s FY22 budget as a decision package; however, funds were not appropriated in the Sheriff’s FY22 budget as the delivery date was unknown. An attempt will be made to sell the current helicopter, with revenue being remitted to the Board following the sale to offset a portion of the new helicopter.
In the Risk Financing Fund, this amendment realigns appropriation from Reserves for Contingencies to Risk Management to provide sufficient budget to pay for insurance premiums at the request of the Utilities Department. This new policy provides enhanced policy terms for flood and wind coverage, enhanced engineering services, and the ability to have dedicated property policy with maximum limits. Additionally, the Sheriff converted their doctors from employees to contracted employees, which resulted in a premium increase to ensure the County had coverage for services provided to inmates prior to the conversion to contracted employees.
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Background Information:
As detailed in the attached request letter, the Sheriff requests additional appropriation in FY22 to purchase a new helicopter to replace their current 31-year-old helicopter. The Sheriff has negotiated a purchase agreement with Airbus Helicopters, Inc., with delivery expected in May 2022. Although approved as part of a decision package submitted by the Sheriff during the FY22 budget development process, the appropriation for this item was not included in the FY22 Adopted Budget due to uncertainty about delivery date.
Fiscal Impact:
This amendment realigns FY22 appropriation as follows:
• $6,179,880.00 from Reserves for Contingencies in the General Fund to increase the Sheriff’s budget as outlined above.
• $1,125,210.00 from Reserves for Contingencies in the Risk Financing Fund to increase the Risk Management budget as outlined above.
Staff Member Responsible:
Jim Abernathy, Budget & Financial Management Analyst, Office of Management & Budget
Partners:
Sheriff’s Office
Attachments:
22-0543A Budget Amendment
Letter to Chair Justice
FY22 Decision Package - Helicopter
Helicopter Purchase Agreement - Fully Executed
Purchase Agreement Change Orders