DATE: February 7, 2017
TO: Board of Supervisors
FROM: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Resolution for Establishment of a County Service Area Revolving Fund under California Government Code ? 25214.5
RECOMMENDED ACTIONS:
TITLE
A. Adopt Resolution which establishes the "County Service Area Revolving Fund" under California Government Code ? 25214.5 and establishes a policy for use of the revolving fund, including eligibility criteria and repayment requirements. ($600,000)
B. Adopt Resolution increasing the FY 2016-17 Committed Fund Balance in the General Fund in the amount of $600,000 for County Service Area Revolving Fund and decreasing the Unassigned Fund Balance in the General Fund in the amount of $600,000.
REPORT
The recommended action would establish a County Service Area Revolving Fund (Revolving Fund) under Government Code ? 25214.5 in the amount of $600,000 as well as a policy that establishes eligibility criteria and repayment requirements. The Revolving Fund would give the Board a legal mechanism to provide temporary financial assistance to County Service Areas (CSAs) that have or are projected to have short-term financial deficits and have approved a lawful revenue stream that would allow the CSA to repay any borrowed funds within ten years from the disbursement date.
ALTERNATIVE ACTION(s):
As an alternative action the Board may direct staff to return with a different policy document.
Another alternative action for the Board is the denial of the proposed establishment of a Revolving Fund and accompanying policy. The Board would need to direct staff to reduce or terminate services for CSAs with a financial deficit.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended actions as the Unassigned Fund Balance in the General Fund is only being committed. Approval of the second recommend action will increase the FY 2016-17 Committed Fund Balance in the General Fund in the a...
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