DATE: January 24, 2023
TO: Board of Supervisors
SUBMITTED BY: Nathan Magsig, Supervisor, District Five
SUBJECT: Request for Direction on Potential Loan to Water Works District 18
RECOMMENDED ACTION(S):
TITLE
Consider and provide direction to staff concerning a potential loan to Water Works District 18 pursuant to Government Code sec. 23010 and Water Code secs. 55503-55503.6.
REPORT
The item before your Board is to receive direction on the use of County Counsel and other staff to negotiate a loan agreement with Water Works District 18 (WWD 18) pursuant to the provisions in Government Code Section 23010 and Water Code Sections 55503 - 55503.6. WWD 18 has made the request to the County for financial assistance to enable the District to draw down funds from a State grant for certain capital improvements in District facilities. In addition, the request will fund the appropriate rate studies to support rates charged to District residents that are sufficient to continue operations of the District and pay back the loan to the County. Under Government Code Section 23010 and Water Code Sections 55503 - 55503.6 a county may make a loan to a water works district in an amount of up to 85% of the annual revenue of the district in the fiscal year in which the loan is received. The statutes place certain requirements for such loans including that the District pay interest on the loan. This item pertains to a location in District 5.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, County staff will not negotiate a loan agreement with WWD 18 to fund capital improvements in District facilities or conduct an appropriate rate study to continue operations of the District.
FISCAL IMPACT:
There is a potential increase in Net County Cost associated with the recommended action; however, a funding source has not been determined at this time. If your Board approves the recommended action, staff will return with the necessary fiscal information. Additionally,...
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