To: Board of Supervisors
Department or Agency Name(s): Auditor-Controller Treasurer-Tax Collector
Staff Name and Phone Number: Levi Ehrlich 565-3289
Vote Requirement: Majority
Supervisorial District(s): Fourth and Fifth
Title:
Title
Gold Ridge Resource Conservation District Fund Transfer
End
Recommended Action:
Recommended action
Approve Resolution of the Board of Supervisors, County of Sonoma, State of California, authorizing the Auditor-Controller Treasurer-Tax Collector to establish a temporary fund transfer for Gold Ridge Resource Conservation District in an amount up to $600,000. (Fourth and Fifth Districts)
end
Executive Summary:
The Gold Ridge Resource Conservation District (“the District”), in conjunction with the Auditor-Controller Treasurer-Tax Collector, is requesting the Board approve a temporary fund transfer in an amount not to exceed $600,000 to provide the District with sufficient funds to meet cash flow needs.
Discussion:
The District was established in 1941 as one of the original resource conservation districts, and the first in Sonoma County. The District was established to ensure strong, productive, and viable agricultural endeavors in Western Sonoma County can continue by improving soil and water quality, and by providing an economically and ecologically viable and healthy agricultural community.
To that end, the District has applied for and received several awards from federal, state and local sources for various projects. The following is a brief summary of the major awards and amounts remaining to be billed:
|
Funding Agency |
Grant/Contract Amount |
|
National Fish and Wildlife Foundation |
$ 325,000 |
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National Resource Conservation Science |
139,452 |
|
County of Sonoma - Vegetation Management Project Grant |
126,046 |
|
California Department of Fish & Wildlife |
644,282 |
|
North Coast Integrated Regional Water Management Plan |
401,459 |
|
California Department of Food & Agriculture |
97,595 |
|
Caltrans |
67,204 |
|
Wildlife Conservation Board |
203,655 |
|
Grand Total |
$ 2,004,693 |
The District must spend the funds prior to reimbursement from awarding agencies and does not have adequate cash to cover these upfront expenditures. By resolution, the District has requested a temporary fund transfer under Article XVI, Section 6 of the State Constitution. This fund transfer takes the form of a line of credit with a limit of $600,000 requested for FY 2022-23. The line of credit will be repaid by the last Monday in April of the current fiscal year. This line of credit is necessary to allow the District to maintain operations prior to reimbursements being received and represents a low risk to the County as the grants/contracts have already been awarded to the District.
Your Board delegated authority to the Auditor-Controller Treasurer-Tax Collector to approve temporary fund transfers to agencies that can secure transfers wholly by revenue collected through the secured property tax system. The District does not receive sufficient property tax support to meet the current temporary fund transfer request. In FY 2021-22, the District received less than $35,000 in property tax revenues and the amount is not expected to increase substantially in FY 2022-23; therefore, Board of Supervisors approval is required for a temporary fund transfer secured by revenue from outside sources.
In FY 2014-15, the District agreed to work with the Auditor-Controller Treasurer-Tax Collector to develop a plan that addressed their structural deficit with the aim of eliminating their annual operating deficit and working down their accumulated deficit. This goal has been met. The District anticipates a positive cash position at fiscal year-end 2021-22 without reliance on a Treasury Note and FY 2022-23 revenues are projected to equal expenditures.
Prior Board Actions:
Last year the Board approved a similar transfer of $600,000 on July 27, 2021, Resolution No. 21-0310
Fiscal Summary
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Expenditures |
FY 21-22 Adopted |
FY 22-23 Projected |
FY 23-24 Projected |
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General Fund/WA GF |
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Fees/Other |
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Narrative Explanation of Fiscal Impacts:
The recommended temporary fund transfer has no significant financial impact. Rather than a physical transfer of cash to the District, this action provides authority for the District to operate with a deficit cash position up to the approved amount and the District will receive negative quarterly interest apportionments based on its average daily balance and the Treasury Pooled interest rate.
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Staffing Impacts: |
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Monthly Salary Range (A-I Step) |
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
1) Resolution establishing temporary fund transfer.
2) Gold Ridge RCD Resolution.
Related Items “On File” with the Clerk of the Board:
None