Title
Transportation Department recommending the Auditor-Controller be authorized to make intermittent temporary cash advances from the General Fund to three of the funds managed by the Department of Transportation: Erosion Control, South Lake Tahoe Transit and Road Fund to prevent negative cash balances in these funds; advanced funds are to be reimbursed with interest as determined by the Auditor-Controller.
RECOMMENDED ACTION: Approve.
Body
BUDGET SUMMARY:
Total Estimated Cost $0.00
Funding
Budgeted $
New Funding $
Savings $
Other $
Total Funding Available $
Change To Net County Cost $0.00
Fiscal Impact/Change to Net County Cost: Any General Fund advances would provide temporary operating cash only and would be repaid with interest such that there is no expenditure incurred by the General Fund and therefore no appropriation is required.
Reason for Recommendation: All of the funds requiring pre-authorization for General Fund cash advances are fully funded with restricted funding sources but those sources occasionally lag behind the related expenditures with the result being a potential cash shortfall.
The Erosion Control Funds experiences heavy demands on cash in the summer months when construction projects are underway with subsequent reimbursement being made sometimes as much as 90 days after. This lag between the cash outlay for expenditures and the grantor's reimbursement frequently creates a negative cash flow. Due to cash advances from the granting agencies, the Erosion Control program has realized interest earnings in the past where these earnings are utilized to fund the interest expense associated with the General Fund advances. Staff makes every effort to maximize advances from the granting agencies and to expedite the reimbursement process to minimize the need for General Fund advances.
The South Lake Tahoe Transit Fund is fully funded through Transportation D...
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