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Agenda Item
ASR
Control 24-000360 |
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MEETING
DATE: |
06/25/24 |
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legal entity taking action: |
Board
of Supervisors and Orange County Housing Authority |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
Auditor-Controller (Approved) |
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Department contact person(s): |
Andrew
N. Hamilton (714) 834-2457 |
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Salvador
Lopez (714) 834-2470 |
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Subject: Authorizing
Temporary Transfer of Cash Between Various Funds for FY 2024-25
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ceo CONCUR |
County Counsel Review |
Clerk of the
Board |
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Concur |
Approved Resolution to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: N/A |
Current
Year Cost: N/A |
Annual
Cost: N/A |
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Staffing
Impact:
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No |
#
of Positions: |
Sole
Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 6/27/2023 #31, 6/28/2022 #13,
6/22/2021 #18, 6/23/2020 #31 |
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RECOMMENDED
ACTION(S):
Adopt resolution authorizing
temporary transfer of cash between various Funds during FY 2024-25.
SUMMARY:
Establishment by
resolution of the temporary transfer of cash between various Funds will address
potential cash shortages during FY 2024-25.
BACKGROUND
INFORMATION:
Annually, on behalf of and in
collaboration with the owner departments, the Auditor-Controller requests Board
of Supervisors’ (Board) approval in accordance with Government Code Section
25252, which authorizes the transfer of money between Funds as the public
interest requires. Government Code Section 53635.7 requires separate discussion
of any items involving borrowing in the amount of $100,000 or more. Certain
County Funds, as well as certain Orange County Housing Authority (OCHA) Funds,
may experience temporary cash shortages during the period of July 1, 2024,
through June 30, 2025. This agenda item authorizes the temporary transfer of
cash so that, if the need arises, the authorization to provide the necessary
cash flow is already in place. All cash transfers should be repaid to Available
County Funds by the end of FY 2024-25.
The following Funds (hereafter referred to
as Available County Funds) have cash available to make temporary transfers to
County Funds with shortages:
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100 |
County General Fund |
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117 |
OC Housing Authority Operating Reserve
(up to $5 Million) |
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13W |
Health Care Agency (HCA) Realignment |
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135 |
Real Estate Development Program |
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15D |
Countywide Capital Projects Non General
Fund (NGF) |
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15Y |
Teeter Series A Debt Service Fund (up to
$40 Million) |
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296 |
OC Fleet Services |
Because cash shortages could occur with
short notice, the Auditor-Controller's Office is requesting advance authority
by the Board to cover potential shortages. The Auditor-Controller's Office
further requests that all loans be conditioned on and subject to the written
approval of the County Executive Officer (CEO) or his designee, with an
exception for Item 5 on page 3. Upon each cash shortage, the CEO will designate
the Fund to provide the cash loan from the above list of Available County
Funds.
Cash Flow Loan Authorization included in
this agenda item is summarized as follows:
|
Fund |
Fund
Description |
Borrowing
Limit |
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100 |
County General Fund |
$
200,000,000 |
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109 |
Co Automated Fingerprint ID |
$ 250,000 |
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137 |
Parking Facilities |
$ 2,000,000 |
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14Q |
Sheriff-Coroner Construction &
Facility Development |
$ 30,000,000 |
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15F |
OC Housing Authority (OCHA) |
$
35,000,000 |
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15G |
OC Housing |
$
6,000,000 |
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168 |
Extra-Help Defined Contribution 3121
Plan |
$ 33,000 |
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169 |
401(a) Defined Contribution Plan |
$ 42,000 |
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17B |
Health Savings Reimbursement Account |
$
450,000 |
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17C |
1.62 Retirement - Defined Contribution
Plan |
$ 70,000 |
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249 |
Retirement Contributions |
$
34,500,000 |
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297 |
Reprographics Internal Service Fund
(ISF) |
$ 1,000,000 |
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309 |
Attached Salary Trust Fund |
$
18,150,000 |
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590
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In-Home Supportive Services (IHSS)
Public Authority |
$
500,000 |
TRANSFERS BETWEEN FUNDS
1. Temporary Transfers of Cash to the County
General Fund 100
The
County General Fund may experience temporary cash shortages during the fiscal
year due to delays in receiving property taxes and state revenues. To ensure
that the County General Fund will continue its operations, authorization is
requested to make temporary cash transfers to the County General Fund 100 of up
to $200 million in cash from Available County Funds on an as-needed basis to
cover any potential shortfalls during the period July 1, 2024, through June 30,
2025. Transfers would be made incrementally throughout the year; therefore,
collectively, the lending Funds would not need to have $200 million available
at any given time. As property tax and other revenues are received, repayments
will be made with interest equal to the rate earned by the Treasurer-Tax
Collector on commingled funds. Interest will not be charged on temporary
transfers from Fund 13W, because interest earned on Fund 13W is credited to the
General Fund.
2. Temporary
Transfers of Cash to Co Automated Fingerprint ID Fund 109
The Co Automated Fingerprint ID Fund 109
may experience temporary cash shortages due to the timing of reimbursement from
participating cities. The Auditor-Controller's Office is requesting
authorization to make temporary cash transfers of up to $250,000 from Available
County Funds on an as-needed basis to cover any potential shortfalls during the
period of July 1, 2024, through June 30, 2025. As reimbursements are received
in Fund 109, repayments will be made with interest equal to the rate earned by
the Treasurer-Tax Collector on commingled funds.
3. Temporary
Transfers of Cash to Parking Facilities Fund 137
The Parking Facilities Fund 137 receives
fees from the use of parking facilities for the purpose of operating and
maintaining parking facilities and other special projects. The Parking
Facilities Fund 137 may experience cash shortages due to the timing of the
receipt of these fees. The Auditor-Controller's Office is requesting
authorization to make temporary cash transfers of up to $2 million from
Available County Funds on an as-needed basis to cover any potential shortfalls
during the period of July 1, 2024, through June 30, 2025. As parking fees and
other revenues are received in Fund 137, repayments will be made with interest
equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
4. Temporary
Transfers of Cash to Sheriff-Coroner Construction & Facility Development
Fund 14Q
The Sheriff-Coroner Construction &
Facility Development Fund 14Q may experience temporary cash shortages due to the
timing of reimbursement of expenses in arrears from the State for the James A.
Musick Facility Jail Construction Project. The Auditor-Controller's Office is
requesting authorization to make temporary cash transfers of up to $30 million
from Available County Funds on an as-needed basis to cover any potential
shortfalls during the period of July 1, 2024, through June 30, 2025. As
reimbursements are received in Fund 14Q, repayments will be made with interest
equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
5. Temporary
Transfers of Cash to OCHA Fund 15F
The
OCHA Fund 15F may experience temporary cash shortages due to the timing of
reimbursement from federal funds. OCHA receives funding from the U.S.
Department of Housing and Urban Development (HUD) for the monthly rental
assistance payments made under the Section 8 Rental Assistance Program (Section
8 Program). The monthly funding is received on the same day the checks are
mailed to the landlords participating in the Section 8 Program. If a monthly
payment from HUD is delayed, it would prevent the timely issuance of checks. To
ensure that OCHA can continue the Section 8 Program and maintain a good
relationship with landlords, the Auditor-Controller's Office is requesting authorization
to make temporary cash transfers of up to $35 million from Available County
Funds on an as-needed basis to continue operation of the Section 8 Checking
Account during the period of July 1, 2024, through June 30, 2025. As HUD
funding and other revenues are received, repayments will be made without
interest, as interest is not allowed per federal regulations.
All
transfers from the OCHA Operating Reserve Fund 117 to the OCHA Fund 15F for the
Section 8 Checking Account would be subject to the written approval of the OC
Community Resources Director or his designee.
6. Temporary
Transfers of Cash to OC Housing Fund 15G
The
OC Housing Fund 15G may experience temporary cash shortages due to the timing
of reimbursement from federal funds. The Auditor-Controller's Office is
requesting authorization to make temporary cash transfers of up to $6 million
from Available County Funds on an as-needed basis to cover any potential
shortfalls during the period of July 1, 2024, through June 30, 2025. As
reimbursements are received in Fund 15G, repayments will be made without
interest, because interest is not allowed per federal regulations.
7. Temporary
Transfers of Cash to Extra-Help Defined Contribution 3121 Plan Fund 168 and
401(a) Defined Contribution Plan Fund 169
The
Extra-Help Defined Contribution 3121 Fund 168 and 401(a) Defined Contribution
Plan Fund 169 may experience temporary cash shortages due to timing issues
involving the processing of accounting transactions. The Auditor-Controller's
Office is requesting authorization to make temporary cash transfers of up to
$33,000 to Fund 168 and up to $42,000 to Fund 169 from Available County Funds
on an as-needed basis to cover any potential shortfalls during the period of
July 1, 2024, through June 30, 2025. As cash is available in Funds 168 and 169,
repayments will be made with interest equal to the rate earned by the Treasurer-Tax
Collector on commingled funds.
8. Temporary
Transfers of Cash to Health Savings Reimbursement Account Fund 17B and 1.62
Retirement - Defined Contribution Plan Fund 17C
The
Health Savings Reimbursement Account Fund 17B and the 1.62 Retirement - Defined
Contribution Plan Fund 17C may experience temporary cash shortages due to
timing issues involving the processing of accounting transactions or fund
transfers. The Auditor-Controller's Office is requesting authorization to make
temporary cash transfers of up to $450,000 to Fund 17B and up to $70,000 to
Fund 17C from Available County Funds on an as-needed basis to cover any
potential shortfalls during the period of July 1, 2024, through June 30, 2025.
As cash is available in Funds 17B and 17C, repayments will be made with
interest equal to the rate earned by the Treasurer-Tax Collector on commingled
funds.
9. Temporary
Transfers of Cash to Retirement Contributions Trust Fund 249
The
Auditor-Controller's Office is requesting authorization to make temporary cash
transfers of up to $34.5 million from Available County Funds on an as-needed
basis to cover any potential shortfalls during the period of July 1, 2024,
through June 30, 2025. As cash is available in Fund 249, repayments will be
made with interest equal to the rate earned by the Treasurer-Tax Collector on
commingled funds.
10. Temporary Transfers of Cash to
Reprographics ISF Fund 297
The
Reprographics ISF Fund 297 may experience temporary cash shortages due to a
timing delay in receiving revenue from the Registrar of Voters based on the
election cycle. The Auditor-Controller's Office is requesting authorization to
make temporary cash transfers of up to $1 million from Available County Funds
on an as-needed basis to cover any potential shortfalls during the period July
1, 2024, through June 30, 2025. As revenues are available in Fund 297,
repayments will be made without interest, because interest is not allowed per
federal regulations.
11. Temporary Transfers of Cash to
Attached Salary Trust Fund 309
The
Attached Salary Trust Fund 309 may experience temporary cash shortages due to
timing issues involving the processing of accounting transactions. The
Auditor-Controller's Office is requesting authorization to make temporary cash
transfers of up to $18.15 million from Available County Funds on an as-needed
basis to cover any potential shortfalls during the period of July 1, 2024,
through June 30, 2025. Interest will not be charged on temporary transfers from
the General Fund, because interest earned on Fund 309 is directed to the
General Fund. If temporary transfers are made from non-General Funds,
repayments will be made with interest equal to the rate earned by the
Treasurer-Tax Collector on commingled funds.
12. Temporary Transfers of Cash to IHSS
Public Authority Fund 590
The
IHSS Public Authority Fund 590 may experience temporary cash shortages due to
reimbursement of expenses in arrears from the State. The Auditor-Controller's
Office is requesting authorization to make temporary cash transfers of up to
$500,000 in cash from Available County Funds on an as-needed basis to
cover any potential shortfalls during the period of July 1, 2024, through June
30, 2025. As reimbursements are received in Fund 590, repayments will be made
with interest equal to the rate earned by the Treasurer-Tax Collector on
commingled funds.
Notification of each transfer will
be provided to each Board Office.
Prior
Board Actions:
On June 27, 2023, the Board adopted
Resolution No. 23-082 for FY 2023-24 authorizing the Auditor-Controller to make
temporary transfers of cash between various Funds. On June 28, 2022, the Board
adopted Resolution No. 22-082 for FY 2022-23 authorizing the Auditor-Controller
to make temporary transfers of cash between various Funds. On June 22, 2021, the
Board adopted Resolution No. 21-063 for FY 2021-22 authorizing the
Auditor-Controller to make temporary transfers of cash between various Funds.
On June 23, 2020, the Board adopted Resolution No. 20-078 for FY 2020-21
authorizing the Auditor-Controller to make temporary transfers of cash between
various Funds.
FINANCIAL IMPACT:
This is a non-financial Agenda
Staff Report as it relates to the Board’s authorization for temporary cash
transfers.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Resolution -
Transfer of Cash Between Various Funds
Attachment B - California Government Code Section 25252 Financial Powers
Attachment C - California Government Code Section 53635.7 Deposit of Funds