As described in the background information below, this action adjusts FY 2018/19 appropriations and revenues to balance budgeted figures to actual experience; and for FY 2019/20, includes fund balances, reserves, designations and all estimated revenue and appropriation line item changes to correspond to the latest information.

On April 16, 2019, the Board of Supervisors adopted the FY 2019/20 Recommended Budget for Countywide Funds and Special Districts. Also on April 16, the Board of Supervisors conducted public hearings on County and Special District budgets and directed the County Administrator to prepare for Board adoption the FY 2019/20 County and Special District Budgets, as modified, to incorporate any changes directed by the Board during the public hearings.  
  
On May 7, 2019, the Board of Supervisors requested that the Auditor-Controller make adjustments to the FY 2018/2019 appropriations and revenues by reallocating and balancing budgeted and actual expenditures and revenues as needed for various budget units and special districts, subject to Board approval in September. This request is pursuant to state law that requires each budget unit and expenditure object level within those units not exceed appropriations. Each year, this requirement generates a substantial number of adjustments to balance each budget unit and object. Attachments A and C (County and Special Districts respectively) contain the necessary appropriation adjustments to close out the 2018/2019 Budget.  
  
Also on May 7, the Board of Supervisors authorized the Auditor-Controller to make technical adjustments to the FY 2019/2020 County and Special District Budgets when actual amounts were known. This action is pursuant to state law that requires the Board of Supervisors adopt a budget which includes obligated fund balances and all estimated revenue and appropriation line item changes to the proposed Budget no later than October 2 of each year. Attachments B and D (County and Special Districts respectively) include changes to revenues, appropriations, and obligated fund balances in the 2019/2020 Budget to correspond with the latest fiscal and legal information and the necessity to re-budget appropriations for programs not fully utilizing Board authorized spending levels in 2018/2019.  
  
  
Included in these annual materials are several items of note, specifically:  

• On May 21, 2019, the Board of Supervisors approved an Appropriations and Revenue Adjustment (No. 5000) for increasing fiscal year 2019/20 fund balance available in an aggregate amount of $8.8 million. The adjustment provides for medical and mental health services and related infrastructure at the Martinez Detention Facility. Attachment B (Schedule A) in today's action includes reserve funds to provide for the adjustment for the $8.8 million previously approved from General Fund reserves.
• As part of the ongoing build out of the new Administration Building and new Emergency Operations Center/Public Safety Building both the County Administrator’s Office and the Department of Information Technology are recommending adding $7.5 million to the project budget. The funds will be used to substantially improve the security, communications ability, wireless connectivity and public information capabilities, especially during emergency events. Besides funding the purchase of advanced equipment, the additional funds will also support extended warranty and service contracts to maintain this new equipment, specialized installation services to insure the components are operational and integrated with other existing County systems and specialized staff in the Department of Information Technology to support the extra work involved in oversight of the selection, installation and integration of the the large amount of new equipment in both projects. Attachment B (Schedule C) in today's action include the adjustment for the $7.5 million.
• Earlier this year the Department of Finance notified the State Controller’s Office to withhold a portion of each county’s share of 1991 Realignment funding (the Vehicle License Fee Mental Health sub-account) from the August 2019 allocations to counties. The withholding was for the first year of a four year replaying of federal recoupments associated with the federal Office of Inspector General's audit report, titled "California Claimed Millions of Dollars in Unallowable Federal Medicaid Reimbursement for Specialty Mental Health Services (Audit A-09-15-02040). Contra Costa County's share of the $180.6 million totals $7.256 million. In order to avoid reducing mental health services, Attachment B (Schedule C) in today's action includes an adjustment for the first year's transfer of $1.8 million.
• In order to complete the close-out of the Family Law Debt Service Fund (135400), a journal (JV#980100) was processed to zero out residual funds. The impact is that the general fund balance on Attachment B (Schedule A) in today's action includes an additional $2.1 million, which will be used for eligible capital expenditures.
• Attachment B (Schedule C) in today's action includes $1.1 million for minor building improvements to 10 Douglas Drive and State mandated court facility costs, and $35.5 million for capital projects, which are in addition to the encumbrances identified below,
• And finally, Attachment B (Schedule B) includes encumbrances of $88.1 million. Encumbrance amounts are much higher than historical figures due to the encumbrance of three major capital projects, the new County Administration Building, the new Emergency Operation Center, and the West Contra Costa County Reentry, Treatment, and Housing Facility project. Funds previously restricted in the amount of $22.5 million (match) were encumbered for FY 2019/20. The encumbrance provides the cash match portion of the State SB 844 jail construction program awarded to the County for the West Contra Costa County Reentry, Treatment, and Housing Facility project.

Delay in Final Budget Adoption.