DATE: August 24, 2021
TO: Board of Supervisors
SUBMITTED BY: Jean M. Rousseau, County Administrative Officer
SUBJECT: Loan of Funds for Coalinga-Huron Recreation & Parks District for Fiscal Year 2021-22 Dry Period Financing
RECOMMENDED ACTION(S):
TITLE
Adopt resolution authorizing the County Auditor-Controller/Treasurer-Tax Collector to make one or more loans to the Coalinga-Huron Recreation and Parks District under Government Code section 23010 for fiscal year 2021-22 in the aggregate maximum amount of $400,000.
REPORT
Your Board may authorize the Auditor-Controller/Treasurer-Tax Collector to make one or more loans from available funds in the custody of the County to Coalinga-Huron Recreation and Parks District ("District") as requested by the District to meet obligations incurred between July 1, 2021, and April 15, 2022, for an aggregate maximum amount of $400,000, which is not more than 85% of the anticipated revenues to those funds for the current fiscal year, or the next ensuing fiscal year. Such loans must be repaid to the County with interest at the Treasury Investment Pool rate by April 10, 2022.
ALTERNATIVE ACTION(S):
If the resolution is not adopted, no loan will be made to the District for FY 2021-22. This will result in the District not being able to meet its payroll and vendor obligations unless it is able to obtain an alternative financing source.
FISCAL IMPACT:
There is no fiscal impact to the County of Fresno as the loans are made from available General Fund cash and repaid with interest, which is accrued on the outstanding balance of the loan at a rate equal to the Treasury Investment Pool rate at the time of payback.
DISCUSSION:
Each year after July 1, the District experiences a cash-flow problem pending the receipt of real property taxes in December of that fiscal year. Government Code section 23010, subdivision (a), provides that, "pursuant to a resolution adopted by its board of supervisors, a county may lend any of its available ...
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