The District needs to adjust its 2020 Budgeted Appropriation from $16,754,005 of expenditures to $26,760,901. This is an increase of $10,006,896 of expenditures offset by increased revenues of $11,370,686. This results in a surplus in the previously balanced 2020 budget of $1,363,790. It is recommended that this surplus is reserved for COVID-19 activities extended into 2021.

Subsequent to the original issuance of this report a software glitch was discovered that reported a single revenue amount backwards.The total revenues increased $11,914,597 and the surplus should be $1,907,701. The total expenditures did not change.

Highlights in the 2020 budget amendment (Exhibit A) include:

• COVID-19 activities:

  • State COVID-19 funds: The District received $1.5 million in state funding to cover COVID-19 activities in the initial outbreak.

  • PHEPR and some AFIX funding was also approved to cover some of the original response costs.

  • In June, the District was awarded an appropriation of County CARES funding totaling $10,906,942 intended to cover heightened disease investigation, testing facilities, and ongoing costs as State funding is exhausted. As of the report date, the CARES funding must be used by December 31, 2020.

  • Unfunded staff in the Healthy Communities area were transferred to funded COVID-19 response activities.

  • Some EH fee-supported staff were moved to COVID-19 response, and revenue in some of the EH programs was decreased accordingly.

• Actual costs for the Administrative Officer, Health Officer, and Environmental Health Director were updated for current staffing.

• Revenue for the IRS office space was increased based on actuals. At the time of the original budget development, it was expected that the IRS would decrease its footprint; however, the remodel necessary to accomplish that decrease as not occurred as of the report date.

• Decreased Investment Interest revenue by $60,501 based on current rates of return that have decreased dramatically from a 2019 average of 2.2% down to an average of 1.06% in July 2020.  Of particular note is the State Pool decrease from 1.7% in January 2020 to .04% in July 2020.

Resolution 20-23 approving the 2020 budget amendment is attached as Exhibit B.

Consistent with Resolution 19-20 and the revised Division of Responsibilities (10/8/19), the Board of Health has authority over the Health District budget.

MOVE TO adopt Res. 20-23 authorizing the 2020 budget amendments as shown in Exhibit A.