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RATIFYING THE SAN JOAQUIN COUNCIL OF GOVERNMENTS’ ANNUAL FINANCIAL PLAN FOR FISCAL YEAR 2021-22
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RECOMMENDATION
It is recommended that the City Council approve a motion to ratify the San Joaquin Council of Governments’ Annual Financial Plan for Fiscal Year 2021-22.
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Summary
The San Joaquin Council of Governments (SJCOG) requests ratification of its Annual Financial Plan (AFP) for Fiscal Year (FY) 2021-22. The SJCOG Joint Powers Agreement requires the AFP to be ratified by a majority of the seven-member governments, to which City of Stockton is a member. The AFP implements the SJCOG FY 2021-22 Overall Work Program, which includes ongoing and new projects and services. There are no General Fund or unrestricted funds appropriated directly for SJCOG operations.
DISCUSSION
Background
The SJCOG is a joint-powers authority compromised of the City of Stockton, San Joaquin County, Lodi, Manteca, Tracy, Ripon, Escalon, and Lathrop. In addition, the Port of Stockton, San Joaquin Regional Transit District, and Caltrans District 10 are ex-officio members. The City of Stockton is represented by three of the twelve members of the SJCOG Board of Directors by appointees from City Council. Currently, Members of the Board include Councilmembers Sol Jobrack, Dan Wright, and Christina Fugazi. The SJCOG adopted the Annual Plan for FY 2021-22 on March 25, 2021, with their resolution R-21-22. The SJCOG joint-powers agreement requires that a majority of the member governments ratify SJCOG’s budget each year.
Present Situation
Attached is a request for ratification of the SJCOG Annual Financial Plan, which implements the FY 2021-22 Overall Work Program (Attachment A). The Annual Financial Plan included in Attachment A provides an outline of expenditures and a line item comparing the proposed FY 2021-22 budget with the current FY 2020-21 amended budget. Compared to the current year amended AFP, SJCOG is proposing an 8.44% increase in revenues and an 8.44% increase in expenditures. Federal grant revenues are expected to increase 11.51%, while state grant revenues are expected to increase by 9.48%. Local taxes are expected to increase 3.35%.
Expenditures for salaries and benefits are up by 11.02% while services are proposed to be decreased by 2.9%. The most significant impact with regards to expenditures is an anticipated 8.69% increase in professional services, due to a consumption of various grants and funding sources, replaced with new grants.
FINANCIAL SUMMARY
The operations and projects of the SJCOG are funded through the local sales tax, state and federal grants, special assignments, and fees. The City of Stockton may participate in funding specific infrastructure projects in cooperation with the San Joaquin Council of Governments; however, there are no General Fund or unrestricted funds that are appropriated directly for SJCOG operations.
Attachment A - SJCOG FY 2021-22 Annual Financial Plan