Title
Auditor-Controller's Office recommending the Board adopt and authorize the Chair to sign the attached Resolution 123-2026 authorizing the Auditor-Controller to advance up to $250,000 from the County Treasurer’s pool to the Fallen Leaf Lake Community Services District.
FUNDING: County Treasurer’s Pool.
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DISCUSSION / BACKGROUND
Many special districts “bank” in the County Treasury and my office processes their payroll and accounts payable transactions on behalf of the elected boards of directors. Many of these special districts have cash flow difficulties between July 1st and December 10th of each year because the bulk of the districts’ revenues are property tax revenues. Property tax bills are due on December 10th and April 10th of each year.
In 1974, the Board of Supervisors authorized the County Auditor to make dry period financing loans to special districts that keep their funds in the County Treasurer’s pool. Districts pay interest on the cash advances and repayment of the advances is assured because the property tax revenues are withheld until the loan is repaid.
Because Fallen Leaf Lake CSD keeps its funds outside of the Treasurer’s pool and has requested a cash advance this fiscal year, Board approval is required for the loan pursuant to Government Code 23010. I am asking your Board to approve this advance. This CSD provides fire protection services and its firefighters may be summoned out on strike teams which exacerbates its cash flow issues.
ALTERNATIVES
The Board could choose not to approve the cash advance, leading to additional cash flow difficulties for the District.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Fallen Leaf Community Services District
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
This item will have no impact on the County General Fund.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk to forward a copy of the signed Resolution to the Auditor-Controller's Office.
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