REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
May 18, 2021
FROM
LEONARD X. HERNANDEZ, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Internal Service Rate and Departmental Recharge Adjustments
End
RECOMMENDATION(S)
Recommendation
Approve annual adjustments to internal service fund rates and departmental recharges effective July 1, 2021 as outlined in Attachments A-I.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of the 2021-22 internal service rates and departmental recharges for services provided to other County departments, Board Governed Special Districts and other agencies will result in a net increase in revenues of $2.95 million, of which an estimated $1.1 million reflects a reduced use of Discretionary General Funding (Net County Cost), primarily due to changes in Risk Management premiums.
BACKGROUND INFORMATION
Internal service funds (ISF) are a mechanism for cost recovery of services provided by a County department to other County departments, and the internal service departments that provide such services include Fleet Management (Fleet), Innovation and Technology (ITD), Purchasing, and Risk Management. Human Resources, Real Estate Services (RESD), and the Assessor/Recorder/County Clerk (ARC) also develop departmental recharges to recover costs.
County Policy 05-07 states that ISF rates are established by the Board of Supervisors. Adjustments to ISF rates and departmental recharges effective July 1, 2021 will allow those departments to recover the full cost of providing services to County departments, Board Governed Special Districts, and other agencies. County Policy 11-03 requires any County department, Agency, or Special District to utilize the services of internal service depa...
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