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Agenda Item
ASR
Control 21-000345 |
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MEETING DATE: |
06/22/21 |
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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): |
Frank Davies (714) 834-2457 |
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Salvador Lopez (714) 834-2470 |
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Subject: FY 2021-22 Temporary
Transfer of Cash Between Various Funds
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ceo CONCUR |
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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: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 06/23/2020
#31, 06/25/2019 #20, 06/26/2018 #31, 06/27/2017 #32 |
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RECOMMENDED ACTION(S):
Adopt resolution concerning temporary transfer of cash between various Funds.
SUMMARY:
Establishment by resolution of the temporary transfer of cash between various Funds will address potential cash shortages.
BACKGROUND INFORMATION:
Government Code Section 25252 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, 2021, through June 30, 2022. 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.
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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102 |
Santa Ana Regional Center Lease Conveyance |
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117 |
OCHA Operating Reserve (up to $5 Million) |
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13W |
Health Care Agency Realignment |
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135 |
Real Estate Development Program |
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14T |
Operations Facilities Development & Maintenance Fund |
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15B |
County Executive Office Single Family Housing |
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15D |
Countywide Capital Projects Non General Fund |
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15I |
Countywide Information Technology Projects Non General Fund |
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15Y |
Teeter Series A Debt Service Fund (up to $40 Million) |
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289 |
OC Information Technology Countywide Services |
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296 |
OC Fleet Services |
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405 |
OC Parks County Service Area No. 26 (up to $23 Million) |
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406 |
OC Parks Capital (up to $12 Million) |
Because cash shortages could occur with short notice, the Auditor-Controller's Office is requesting advance authority by the County Board of Supervisors (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 designee. Upon each cash shortage, the CEO will designate the Fund to provide the cash loan from the above list of Funds.
Cash Flow Loan Authorization included in this agenda item is summarized as follows:
Borrowing authority requested by Fund not to exceed:
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104 Criminal Justice Facility |
$ 5,000,000 |
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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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146 Workforce Investment Act |
$ 2,000,000 |
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14Q Sheriff-Coroner Construction & Facility Development |
$ 30,000,000 |
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15F 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 |
$ 31,000,000 |
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309 Attached Salary Trust Fund |
$ 16,000,000 |
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590 In-Home Supportive Services (IHSS) Public Authority |
$ 1,000,000 |
TRANSFERS BETWEEN FUNDS
1. Temporary
Transfers of Cash to Criminal Justice Facility Fund 104
The Criminal Justice Facility Fund 104 may experience temporary cash shortages due to delayed receipt of court fines. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of cash up to $5 million to Fund 104 from Available County Funds on an as-needed basis to cover any potential shortfalls during the period of July 1, 2021, through June 30, 2022. As revenue is received, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
2. Temporary
Transfers of Cash to Co Automated Fingerprint ID Fund 109
The County 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, 2021, through June 30, 2022. As cash is available in Fund 109, retransfers 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. To ensure that the Parking Facilities Fund 137 has sufficient cash to pay the annual debt service for the Parking Facilities Certificate of Participation bonds, authorization is requested 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, 2021, through June 30, 2022. As parking fees and other revenues are received in Fund 137, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled bonds.
4. Temporary Transfers of Cash to Workforce Investment Act Fund 146
The Workforce Investment Act Fund 146 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 $2 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period of July 1, 2021, through June 30, 2022. As revenues are available in Fund 146, retransfers will be made without interest, because interest is not allowed per federal regulations.
5. 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 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, 2021, through June 30, 2022. As revenues are available in Fund 14Q, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
6. 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. 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 cover any potential shortfalls during the period of July 1, 2021, through June 30, 2022. As revenues are available in Fund 15F, retransfers will be made without interest, because interest is not allowed per federal regulations.
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 prohibit the timely issuance of checks. To ensure that OCHA can continue the Section 8 Program and maintain a good relationship with landlords, it is necessary for OCHA to temporarily transfer cash from the OCHA Operating Reserve Fund 117 into the OCHA Fund 15F for continued operation of the Section 8 Checking Account. As HUD and other revenues are received, retransfers will be made without interest, as interest is not allowed per federal regulations.
7. 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, 2021, through June 30, 2022. As revenues are available in Fund 15G, retransfers will be made without interest, because interest is not allowed per federal regulations.
8. 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, 2021, through June 30, 2022. As cash is available in Funds 168 and 169, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
9. 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. 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, 2021, through June 30, 2022. As cash is available in Funds 17B and 17C, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
10. Temporary Transfers of Cash to Retirement Contributions Trust Fund 249
The Retirement Contributions Trust Fund 249 may experience a temporary cash shortage 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 $31 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period of July 1, 2021, through June 30, 2022. As cash is available in Fund 249, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
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 $16 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period of July 1, 2021, through June 30, 2022. Interest will not be charged on temporary transfers from the General Fund, because interest earned on Fund 309 is directed to the General Fund.
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 $1 million in cash from Available County Funds on an as-needed basis to cover any potential shortfalls during the period of July 1, 2021, through June 30, 2022. As revenues are available in Fund 590, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
All of the transfers from County Funds would be subject to the written approval of the CEO or designee.
All transfers from the OCHA Operating Reserve 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 designee.
Notification of each transfer will be provided to each Board office.
All cash transfers are repaid to Available County Funds by June 30, 2022, or soon thereafter.
Prior Board
Actions:
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. On June 25, 2019, the Board adopted Resolution No. 19-048 for FY 2019-20 authorizing the Auditor-Controller to make temporary transfers of cash between various Funds. On June 26, 2018, the Board adopted Resolution No. 18-060 for FY 2018-19 authorizing the Auditor-Controller to make temporary transfers of cash between various Funds. On June 27, 2017, the Board adopted Resolution No. 17-071 for FY 2017-18 authorizing the Auditor-Controller to make temporary transfers of cash between various Funds.
FINANCIAL IMPACT:
This is a non-financial Agenda Staff Report as the loans are temporary.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Resolution
Attachment B - California Government Code Section 25252 Financial Powers
Attachment C - California Government Code Section 53635.7 Deposit of Funds
Attachment D - Revenue and Taxation Code Sections 4701-4717