Department: Management and Budget
Department Head/Elected Official: Daniel Ramos, Executive Director
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
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Request for approval to create the Facility Fund to improve the financial management of County real estate and facility maintenance and management.
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Background and Discussion:
The County currently funds non-capital real estate and facility maintenance and management needs primarily through the General Fund. Real estate and facility needs can vary significantly between years, depending on staffing plans, disasters, market conditions, and luck. Additionally, due to various factors, Harris County has accrued a deferred facility maintenance backlog. Addressing the backlog is not fully funded.
There is a need for a stable, multi-year funding source to support County facilities.
The Office of Management and Budget (OMB) proposes establishing a separate Facility Fund. This fund will be first and foremost used for facility maintenance and operation expenses that are not eligible to use debt funding, including labor and non-labor. OMB also proposes to use this fund may also be used for purchases of real estate or facilities. It generally should not be used to pay utilities. The fiscal year-end fund balance should roll over within the fund to the following fiscal year. For FY25, this fund will be provided an initial seed amount from the General Fund to be approved by Commissioners Court as a part of the FY25 Proposed Budget. OMB will return to Commissioners Court at a future date with proposals for future year funding. Funds from the sales of buildings or properties that are either outdated or not needed should be used to maintain our existing facilities or purchase newer ones with lower operating costs. OMB proposes that proceeds of any sale of property not attributable to a specific funding source (e.g., Toll Road, Flood Control District) be deposited in the Facility Fund, unless otherwise directed by Commissioners Court.
OMB will work with the Auditors Office, Engineering, and any other relevant departments to implement the Facility Fund for FY25.
Expected Impact:
Having a separate fund to manage real estate sales and purchases as well as facility maintenance and management will help provide stable funding for facility needs. More stable funding will allow Engineering to plan for multiple years ahead and pursue needed long-term maintenance projects with greater certainty.
Alternative Options:
The County can continue to manage facilities using the General Fund on an annual basis. This would hinder multi-year facility project planning.
Alignment with Goal(s):
_ Justice and Safety
_ Economic Opportunity
_ Housing
_ Public Health
_ Transportation
_ Flooding
_ Environment
X Governance and Customer Service
Prior Court Action (if any):
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Precinct(s): Countywide
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Anticipated Court Date: July 15, 2024
Anticipated Implementation Date (if different from Court date):
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: William McGuinness, Director-Capital Projects & Infrastructure, OMB
Attachments (if applicable):