REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF THE SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
June 27, 2023
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 $52,752,757, 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 $52,752,757, 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: John Johnson, 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 San Bernardino County Fire Protection District (District) will result in $52,752,757 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 in November 2023, with full repayment by April 29, 2024.
BACKGROUND INFORMATION
The District and its four regional service zones depend 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 fiscal year. In order to meet the cash flow requirements of payroll and other operating expenses, the District’s regional service zones require 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, 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 regional services zones totaling $54,637,047, as detailed on Attachment A. ATC has considered several factors, including each zone’s deepest projected cash deficit and the anticipated property tax revenue that will accrue to each zone 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 totaling $52,752,757, representing approximately 56% of the District’s total property tax revenue anticipated among its zones for 2023-24. The District has previously requested and received a TTF in the amount of $47,020,682 for fiscal year 2022-23, approved by the Board of Supervisors on June 28, 2022 (Item No. 117).
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 for the zones are paid. Full repayment shall be made no later than April 29, 2024, from property tax apportionments, unless the District initiates payment from another revenue source earlier.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, and Scott Runyan, Principal Assistant County Counsel, 387-5455) on May 19, 2023 and June 1, 2023, respectively; San Bernardino County Fire Protection District (Cory Nelson, Deputy Fire Chief of Business Operations, 387-5912) on May 16, 2023; Finance (Penelope Chang, 387-4886, and Tom Forster, 387-4635, Administrative Analysts) on June 2, 2023; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 9, 2023.