REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 25, 2024
FROM
ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector
SUBJECT
Title
Temporary Transfer of Funds - Apple Valley Fire Protection District
End
RECOMMENDATION(S)
Recommendation
1. Approve the recommendation of the Auditor-Controller/Treasurer/Tax Collector for a temporary transfer of funds to the Apple Valley Fire Protection District, in the total amount of $1,969,215, as listed on Attachment A.
2. Adopt Resolution pertaining to the temporary transfer of funds to the Apple Valley Fire Protection District, as listed on Attachment A.
(Presenter: Diana Atkeson, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7004)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). Approval of the temporary transfer of funds (TTF) to the Apple Valley Fire Protection District (District) will result in $1,969,215 of pooled funds of the San Bernardino County (County) Treasury being unavailable for County use. The funds will be repaid, beginning with the first property tax apportionment in November 2024, until the amount is paid in full, but no later than December 27, 2024.
BACKGROUND INFORMATION
The Auditor-Controller/Treasurer/Tax Collector (ATC) has received a request from the District for a TTF, in accordance with the provisions of Article XVI, Section 6, of the California Constitution and Section 23010 of the California Government Code. These provisions authorize the County Treasurer, upon approval by the Board of Supervisors (Board), to execute a TTF to allow a district to meet its obligations. The provisions require the District to pay interest on all funds borrowed at the same rate that the County applies to funds on deposit with the County, and to maintain its funds as they become available in the County’s custody.
The District has requested a TTF in the amount of $1,969,215, as listed on Attachment A. ATC has considered several factors, including the District’s deepest projected cash deficit and the anticipated property tax revenue that will accrue to the District in arriving at its recommendation. Upon review of the District’s cash needs, ATC finds the District to have satisfactorily demonstrated a reasonable need for a TTF and recommends a TTF totaling $1,969,215, which represents 23% of the District’s total property tax revenue anticipated for 2024-25. The District has previously requested and received a TTF in the amount of $2,311,894 for fiscal year 2023-24. This request was approved by the Board on June 27, 2023 (Item No. 32), and the payment was made in full on December 19, 2023.
As required by Government Code Section 23010, the TTF does not exceed 85% of the District’s anticipated property tax revenue for the fiscal year and shall be repaid before any other obligations of the District are paid. Repayment shall be made no later than December 27, 2024, from property tax apportionments, unless the District initiates payment from another revenue source earlier.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, 387-5455) on May 17, 2024; Finance (Penelope Chang, Administrative Analyst, 387-4486) on May 28, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 5, 2024.