title
Commissioner Worley - Finance - To (1) Establish a Budget for the Representative Payee and Civil Process Funds for FY2022, (2) Appropriate Fire District Fund Balance to Budget Overage in FY2022, (3) Appropriate Additional FY2022 Fines and Forfeiture Revenues ($1,383,720), (4) Appropriate Tourism Fund Balance to Cover Shortage in FY2022, (5) Provide the Finance Officer the Authority to Establish a Special Revenue Fund Designated for Opioid Settlement Funds ($1,437,728)
body
STAFF CONTACT
Tiffany Murray - Finance Department - 704-866-3032
BUDGET IMPACT
budget
(1) Increase revenues and expenses in the Representative Payee ($674,272) and Civil Process ($246,599) funds both of which are Special Revenue funds. Transfers $246,599 to the General Fund as reimbursement for the salary and benefits of Sheriff Office employees that are partially or fully funded by the Sheriff's portion of civil process fees.
(2) Increase revenues and expenses in the Fire District Fund by $65 to cover FY2021 payment posted in FY2022.
(3) Increase revenues and expenses by $462,784 in the Fines and Forfeitures Fund to cover shortages in FY2022.
(4) Increase revenues and expenses in the Tourism Fund by $54,008 to cover shortages in various accounts FY2022.
body
BUDGET ORDINANCE IMPACT
Establishes a budget for the Representative Payee and Civil Process funds that were not included in the adopted budget.
Establishes a new special revenue fund for the purpose of housing proceeds and expenditures received from the opioid litigation settlement.
BACKGROUND
GASB Statement 84 required the establishment of the Representative Payee Fund and Civil Process Fund beginning with FY2021. Being new funds, they were inadvertently not included in the FY2022 adopted budget. This Board Action establishes a budget for both funds with the attached Budget Change Request. These amounts listed are based on actuals for FY2022. This Board Action also transfers funds to the General Fund as reimbursement for the salary and benefits of the court advocates and domestic violence deputies that are partially or fully funded with the Sheriff's share of civil process fees.
In FY2021 Lowell VFD was due a final tax payment of approximately $65. However, the payment was accidentally posted in FY2022 causing the Lowell VFD account to be over budget in FY2022 and under budget in FY2021. This Board Action appropriates the $65 needed to cover the budget overage in FY 2022.
In FY2022 the County received higher than expected fees for fines and forfeitures which resulted in higher payments to the Gaston County Schools to whom we are required to pay the fees. This Board Action appropriates the additional $462,784 in revenues to cover the budget shortfall.
In FY2022 the Tourism Fund incurred higher than expected expenses. They also received higher than expected hotel/motel room occupancy tax revenues in FY2022. This Board Action appropriates an additional $54,008 in revenues to cover the budget shortfalls.
The State of NC joined in the national litigation against pharmaceutical supply chain participants who engaged in the manufacture, marketing, promotion, distribution, or dispensing of opioid medications that has harmed the public. Gaston County has been awarded $21,612,790 in settlement funds to be received over a 16-year period. The Memorandum of Agreement with the state requires the opioid settlement distributions to be maintained in a special revenue fund designated for the receipt and expenditure of the Opioid Settlement Funds. These funds will be obligated at a later date.
POLICY IMPACT
Approval of this Board Action gives the Finance Officer the authority to establish a special revenue fund designated for the receipt and expenditure of proceeds received from the Opioid Settlement Funds.
ATTACHMENTS
Budget Change Request (BCR)