HomeMy WebLinkAboutMINUTES - 04122011 - C.63RECOMMENDATION(S):
ADOPT Resolution No. 2011/117 governing the temporary transfer of funds to School
Districts and the Community College District pursuant to the California Constitution,
Article XVI, Section 6 and Education Code Section 42620 and 85220.
FISCAL IMPACT:
The Treasurer shall have power and the duty to make temporary transfers from the funds in
custody for meeting the obligation incurred by the district. Repayments of the temporary
transfer of funds shall be made from revenues accruing to the district before any other
obligation is met from such revenues. During the period for which the funds are transferred,
the district will be charged interest, payable by the district, at a rate equal to the rate the
Treasury Pool had earned for the same period plus .1%. As a result of the interest charges
and repayment requirements, the transfer will be revenue and liquidity neutral to the funds
in custody.
BACKGROUND:
Several school districts have approached the County to request that that
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 04/12/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Lisa Driscoll, County
Finance Director (925) 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered
on the minutes of the Board of Supervisors on the date shown.
ATTESTED: April 12, 2011
David J. Twa, County Administrator and Clerk of the Board
of Supervisors
By: Carrie Del Bonta, Deputy
cc:
C.63
To:Board of Supervisors
From:Russell Watts, Treasurer-Tax Collector
Date:April 12, 2011
Contra
Costa
County
Subject:Temporary Transfers to School and Community College Districts pursuant to CA Constitution, Article XVI,
Section 6 & Ed Code Section 42620 and 85220
BACKGROUND: (CONT'D)
the Board of Supervisors authorize short-term transfers to the districts to cover temporary
cash shortages caused, in part, by alteration by the State in the timing of deferred
apportionments. In accordance with the California Constitution, Article XVI, Section 6
and Education Code section 42620 and 85220, school districts may request temporary
transfers of up to eighty-five percent (85%) of anticipated revenues accruing to the
district. The transfers from the County will be funded by using cash available in the
County's Pool. The transfers will be used to meet current fiscal obligations of the districts
and allow the districts to continue operations.
Because of the timing between annual cash flow needs of the districts and the Board of
Supervisors' meeting schedules, there are timing issues with requiring that these actions
be individually approved by the Board of Supervisors. The Auditor-Controller, County
Treasurer-Tax Collector, and County Finance Director have been directly involved in this
action and have been working with the County Office of Education and the School
Districts to identify an administrative procedure that satisfies the districts' needs and the
Board's meeting schedule while complying with statutory requirements. Because the
California Constitution mandates the transfer, the proposed resolution authorizes the
County Treasurer to make such temporary transfers that meets statutory requirements
from funds in custody administratively upon receipt of a duly adopted District resolution.
CONSEQUENCE OF NEGATIVE ACTION:
Districts may be unable to meet obligations incurred for maintenance purposes including
payroll.
CHILDREN'S IMPACT STATEMENT:
Do to the timing of the action - there should not be an impact to children.
ATTACHMENTS
Resolution No. 2011/117