Share to Facebook Share to Twitter Bookmark and Share
File #: 19-1235    Version: 1 Name: Respond to request letter from the Department of Finance regarding staffing for the Mendota Designated Local Authority
Type: Agenda Item Status: Denied
File created: 9/6/2019 In control: Auditor - Controller
On agenda: 10/8/2019 Final action: 10/8/2019
Enactment date: Enactment #:
Title: Consider and take action on request from the State Department of Finance by choosing one of the following three options: 1. Authorize the Auditor-Controller/Treasurer-Tax Collector to provide a $30,000 loan to the Mendota Designated Local Authority for the 2020 calendar year for staff costs, as requested by the State Department of Finance; or 2. Direct staff to prepare a resolution of the Board electing to have the County serve permanently as the successor agency of the former Mendota Redevelopment Agency and return to the Board with the proposed resolution for approval, as alternatively proposed by the State Department of Finance; or 3. Reject both options presented by the State Department of Finance and take no action.
Attachments: 1. Agenda Item, 2. Fresno County Loan Request
DATE: October 8, 2019

TO: Board of Supervisors

SUBMITTED BY: Oscar J. Garcia, Auditor-Controller/Treasurer-Tax Collector

SUBJECT: Respond to request letter from the Department of Finance regarding staffing for the Mendota Designated Local Authority

RECOMMENDED ACTION(S):
TITLE
Consider and take action on request from the State Department of Finance by choosing one of the following three options:

1. Authorize the Auditor-Controller/Treasurer-Tax Collector to provide a $30,000 loan to the Mendota Designated Local Authority for the 2020 calendar year for staff costs, as requested by the State Department of Finance; or
2. Direct staff to prepare a resolution of the Board electing to have the County serve permanently as the successor agency of the former Mendota Redevelopment Agency and return to the Board with the proposed resolution for approval, as alternatively proposed by the State Department of Finance; or
3. Reject both options presented by the State Department of Finance and take no action.
REPORT
Approval of the first option proposed by the State Department of Finance (DOF) would allow the County to loan $30,000 to the Mendota Designated Local Authority (DLA) for staff costs for the 2020 calendar year, but the County would not be able to recover payment for many years, and the DOF would likely return annually seeking further loans. Approval of the second option proposed by the DOF would result in the County becoming the successor agency of the former Mendota Redevelopment Agency (RDA), which would make the County responsible to manage the former RDA's outstanding bonds, which are currently in default. The County has no obligation to carry out either option presented by the DOF, and your Board may choose to reject both options presented by the DOF.

FISCAL IMPACT:

If your Board chooses to provide a loan to the DLA in the amount of $30,000 for staffing costs for the 2020 calendar year, the County of Fresno would not receive payment on this loan until th...

Click here for full text