Title
a. Authorize the Auditor -Controller to allow the Resource Management Agency (RMA) to establish a budget for FY 2015-16 for the Chualar County Water District (CCWD) Fund 312-3000-8198-RMA090 in the amount of $15,917 for the annual Debt Service payment to the USDA - Rural Development.
b. Authorize the Auditor-Controller to increase FY 2015-16 estimated revenue and appropriations by $15,917 in RMA Fund 312-3000-8198-RMA090 where the financing source is Assets Held as Agency for Others - Fund 312 Balance Sheet Account (BSA) 2530. (4/5ths vote required) Revised via Additions and Corrections
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Authorize the Auditor -Controller to allow the Resource Management Agency (RMA) to establish a budget for FY 2015-16 for the Chualar County Water District (CCWD) Fund 312-3000-8198-RMA090 in the amount of $15,917 for the annual Debt Service payment to the USDA - Rural Development.
b. Authorize the Auditor-Controller to increase FY 2015-16 estimated revenue and appropriations by $15,917 in RMA Fund 312-3000-8198-RMA090 where the financing source is Assets Held as Agency for Others - Fund 312 Balance Sheet Account (BSA) 2530.
SUMMAR/DISCUSSION:
During the development of the FY 2015-16 Recommended Budget process Fund 312, which is dedicated to the annual debt service payments for the Chualar County Water District (CCWD), the Budget for Fund 312 for FY 2015-16 was inadvertently overlooked and not included as part of the FY 2015-16 Budget Adoption. The above recommendation would establish a Budget for Fund 312 for FY 2015-16 and would allow for the recording of the FY 2015-16 annual the debt service payment to Fund 312.
On July 15, 1986 the CCWD received a bond in the amount of $257,000 from the United States Department of Agricultural (USDA) Rural Development to be repaid over 38 years ending in September 2024. The principal and interest payment due in FY 2015-16 is $9,000 and $6,917 respectively for a total amount due of $15,917.
Each Fiscal Year the Auditor Controller’s Office distributes property tax receipts into Fund 312’s Balance Sheet Account 2530, Assets Held as Agency for Others, which becomes the financing source for that year’s annual debt service payment which is processed by the County’s Debt Manager. RMA is responsible for developing the budget for Fund 312 since the debt is associated with the Chualar CCWD. On August 11, 2015 RMA was notified by the Auditor Controller’s Office that there were no appropriations available in Fund 312 to process the annual debt service payment when it was discovered that the annual budget for Fund 312 was inadvertently omitted during the FY 2015-16 budget development.
OTHER AGENCY INVOLVEMENT:
On January 27, 2016 the Budget Committee voted in support of this matter.
FINANCING:
There is no impact to the General Fund. The annual debt payments for the CCWD are funded through property taxes that are set aside in Fund 312’s balance sheet account 2530. The estimated FY 2015-16 beginning fund balance available in Fund 312’s BSA 2530 is $69,415.
Prepared by: Lori Woodle, RMA - Finance
Approved by: Carl P. Holm, AICP, RMA Director