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File #: 12242   
Type: Consent Status: Passed
File created: 5/29/2025 Department: Multijurisdictional Items
On agenda: 6/10/2025 Final action: 6/10/2025
Subject: Temporary Transfer of Funds - San Bernardino County Fire Protection District
Attachments: 1. ATT-ATC-6-10-25-San Bernardino County Fire Protection District, 2. RES-MULTI-ATC-6-10-25-1 ATC Temporary Transfer of Funds, 3. RES-MULTI-ATC-6-10-25-2 Fire Temporary Transfer of Funds, 4. RES-MULTI-ATC-6-10-25-3 Fire Temporary Borrowing, 5. RES-MULTI-ATC-6-10-25-4 Fire Funds in Sole Custody of Treasurer

REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS

OF SAN BERNARDINO COUNTY

AND RECORD OF ACTION

 

REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS

OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT

AND RECORD OF ACTION

 

June 10, 2025

 

FROM

ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector

DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District

 

SUBJECT                      

Title                     

Temporary Transfer of Funds - San Bernardino County Fire Protection District

End

 

RECOMMENDATION(S)

Recommendation

1.                     Acting as the governing body of San Bernardino County:

a.                     Approve the recommendation of the Auditor-Controller/Treasurer/Tax Collector for temporary transfer of funds to the San Bernardino County Fire Protection District in the total amount of $50,082,458, as listed on Attachment A.

b.                     Adopt Resolution pertaining to the temporary transfer of funds to the San Bernardino County Fire Protection District, as listed on Attachment A.

2.                     Acting as the governing body of the San Bernardino County Fire Protection District:

a.                     Adopt Resolution approving the request for the temporary transfer of funds to the San Bernardino County Fire Protection District, in the total amount of $50,082,458, as listed on Attachment A.

b.                     Adopt Resolution authorizing:

i.                     The temporary borrowing between funds of the San Bernardino County Fire Protection District.

ii.                     The Fire Warden/Fire Chief or Deputy Chief to approve actual inter-fund transfers processed between the funds, subject to any actual transfer of funds pursuant to this Resolution being ratified by the Board of Directors, as soon as practicable.

c.                     Adopt Resolution confirming that all San Bernardino County Fire Protection District funds are, or when available will be, solely in the custody of the San Bernardino County Treasurer.

 

(Presenter: Ensen Mason, Auditor-Controller/Treasurer/Tax Collector, 382-7000)

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 Discretionary General Funding (Net County Cost). Approval of the temporary transfer of funds (TTF) to the San Bernardino County Fire Protection District (District) will result in $50,082,458 of pooled funds of the San Bernardino County (County) Treasury being unavailable for County use. The funds will begin to be repaid after the first property tax apportionment, with interest, in November 2025, with half being repaid by December 29, 2025, and full repayment by April 27, 2026.

BACKGROUND INFORMATION

The District depends on property tax revenues as a major source of revenue and cash flow. Receipt of these revenues does not begin until late November or early December of each year. In order to meet the cash flow requirements of payroll and other operating expenses, the District requires a TTF in anticipation of the receipt of property tax revenues.

 

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 of the District on deposit with the County, and to maintain all District funds in the County’s custody.

 

The District has requested a TTF to be distributed among its four funds totaling $50,082,458, as detailed in Attachment A. ATC has considered several factors, including each fund’s deepest projected cash deficit and the anticipated property tax revenue that will accrue to each fund 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 and recommends a TTF totaling $50,082,458, representing approximately 48% of the District’s total property tax revenue anticipated among its funds for 2025-26. The District has previously requested and received a TTF in the amount of $45,697,708 for 2024-25. This request was approved by the Board on June 25, 2024 (Item No. 140), and the payment was made in full on April 28, 2025.

 

As required by Government Code Section 23010, the recommended TTF does not exceed 85% of the District’s anticipated property tax revenue for the year and shall be repaid before any other obligations for the funds are paid. Full repayment shall be made no later than April 27, 2026, 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 and Rick Luczak, Deputies County Counsel, 387-5455) on May 14, 2025; San Bernardino County Fire Protection District (Cory Nelson, Deputy Fire Chief, 387-5779) on May 9, 2025; Finance (Jenny Yang, 387-4884, and Ivan Ramirez, 387-4020, Administrative Analysts) on May 21, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on May 23, 2025.