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Home My WebLink AboutMINUTES - 08151989 - 1.59 1-®59 TO: BOARD OF SUPERVISORS Contra FROM:, Phil Batchelor, County Administrator .,,f Costa s DATE: August 15 , 1989 °'ra COUNT County SUBJECT: REQUEST TO CREDIT INTEREST EARNINGS TO TRANSPORTATION AUTHORITY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. Approve the request of the Transportation Authority to have interest credited to their account. 2. Authorize the Auditor-Controller and Treasurer-Tax Collector to charge for the services they provide to accomplish the action. FINANCIAL IMPLICATIONS: The General Fund will loose the interest that would have been earned on these funds. In exchange, the two departments involved will receive payment for investment services rendered. The Transportation Authority will have more funds with which to accomplish the region' s transportation objectives. BACKGROUND: On July 11th, the Board of Supervisors received a request from the Contra Costa Transportation Authority requesting that interest earned on sales tax received for transportation be credited to the Authority rather than the County' s General Fund. Current policy is to credit interest earned to the General Fund in recognition of services provided as well as advances generally given to agencies using the County' s investment services. In lieu of the General Fund keeping all the interest earnings from this account, it seems reasonable to charge the account for services rendered. Total charges are not known at this time, but the rates would be approximately as follows: CONTINUED ON ATTACHMENT: _YES SIGNATURE: 4L/L,4l RECOMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION OF BOARD COMMITTEE APPROVE _OTHER SIGNATURE(S): ACTION OF BOARD ON A11M 1989APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED AUG 15 1989 Auditor-Controller PHIL BATCHELOR,CLERK OF THE BOARD OF Treasurer--Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR Transportation Authority M382 (10/88) BY `' ,DEPUTY -2- Treasurer-Tax Collector: . 0050 of total interest earned, plus in-out transaction charge of $50 . Auditor-Controller: Hourly rate, including overhead of approximately $25-50, depending on the rate of the person handling the transaction. This approach has been discussed with the staff of the Transportation Authority, and they are prepared to recommend it to the Commission. Attachment Z s 3.3 ides CONTRA COSTA TRANSPORTATION AUTHORITY Transportation Authority For: Antioch Brentwood Clayton Concord Danville EI Cerrito Hercules Lafayette Martinez Mora z Orinda Pinole Pittsburg Pleasant Hill Richmond San Pablo San Ramon Walnut Creek Contra Costa County June 30, 1989 Supervisor Tom Torlakson, Chair Contra Costa County Board of Supervisors i 1 ', 1'•?,9 County Administration Building, Room 106 651 Pine Street, CA 94553 .1., Dear Chairman Torlakson and Board Members: SUBJECT: Contra Costa Transportation Authority Request to the Board of Supervisors on Crediting the Interest on Authority's "Operating" Funds to the Authority Rather than the County. It has come to the attention of the Authority's Administrative Committee that the interest on the sales tax funds deposited with the County Treasurer's Office is not being fully captured into the Authority's account. The Treasurer's Office has taken the position that the interest on the Authority's operating funds (i .e. the money to pay the monthly bills) belongs to the County. The County Treasurer's Office believes that the Government Code allows the County to keep the interest on the operating funds. This arises because "normally" the County advances funds to operating agencies whose monies are derived from property tax receipts that are received only twice a year. The CCTA Administrative Committee believes that the interest on our operating expenses should accrue to the Authority for Measure C purposes. This unique problem has been brought to the attention of the County. In an effort to resolve this, the Authority staff has discussed the problem with various County Departments. In staff discussions with the offices of the County Counsel , County Auditor/Controller, and County Treasurer, there appears to be a simple solution. All recommend that the Authority seek an exemption to the retention of interest by the Controller from the County Board of Supervisors. Specifically, the Board should direct the Treasurer's Office to credit the Authority's account with the interest accruing to the operating funds. Therefore, the Authority's Administrative Committee requests that: 1. The Board of Supervisors, as the County's governing body, direct the County Treasurer to exempt the Authority's operating capital from the current procedure of crediting the interest accrued on that capital to the County rather than to the Authority. COMMISSIONERS:Chair,Sharon J.Brown, Vice Chair,Taylor Davis,Cathryn Freitas, Ann Hall, Beverly Lane, Sunne W.McPsak, Ronald K.Mullin, Evelyn Munn, Tom Powers. Tom Torlakson. Awn Wilson I Executive Director, Robert K.McCleary 2702 Clayton Road, Suite 202 Concord, CA 94519 (415) 687-2282 FAX 0 (415) 687-3700 2. The Board of Supervisors direct the County Treasurer to credit the interest accrued on the Authority's operating capital into the Authority's account (7856) containing the principal . Should you have questions, please feel free to contact Bob McCleary, Executive Director or other Authority staff members at 687-CCTA. Sincerely, T V Sharon J. Brown Chair, CCTA SJB:RC:dsp dspAuth5:BOSexmpt. Int cc: CCTA Commissioners Phil Batchelor, County Administrator Robert K. McCleary, Executive Director, CCTA Barbara A. Neustadter, Authority Staff Auditor/Controller's Office County Counsel Office County Treasurer's Office Files