|
Return
|
| |
Consent-General Government # 13.
|
| Board of Supervisors |
Financial Services |
|
|
|
| Subject |
| Approve extension of loan terms of the general fund loan of $275,000 with the North Davis Meadows County Service Area to extend maturity from June 27, 2021 to June 27, 2022. (No general fund impact) (Rinde) |
| Recommended Action |
| Approve extension of loan terms of the general fund loan of $275,000 with North Davis Meadows County Service Area (CSA) to extend maturity from June 27, 2021 to June 27, 2022. |
| Strategic Plan Goal(s) |
 |
In Support of All Goals (Internal Departments Only) |
|
| Reason for Recommended Action/Background |
The County of Yolo has provided three loans to the North Davis Meadows (NDM) County Service Area (CSA) over the past several years as summarized below:
| NDM Fund |
Loan Date |
Loan Amount |
Loan Maturity |
Purpose |
| Water |
06/27/2017 |
$430,000 |
06/27/2021 |
Borrowing for planning related to the water connection project. Originally to be included later as part of State Revolving Fund (SRF) Loan reimbursement. |
| Sewer |
06/27/2017 |
$92,081 |
06/27/2021 |
Borrowing to close a deficit in the CSA Sewer Fund. Expected to be repaid through increased sewer fees. |
| Water |
05/09/2019 |
$275,000 |
06/27/2021 |
CSA exceed borrowing limit and incurred operational deficit due to changes in the Water Connection Project and due to SRF Loan halted due to litigation. |
- June 2017 Water Loan Status - The Board of Supervisors authorized the release of impound of fees associated with the Water Connection project on February 23, 2021 in order to repay the planning loan due in June. Thus, this loan is considered to be paid.
- June 2017 Sewer Loan Status - The CSA has already paid $48,000 toward the balance of the loan. Staff projections of the CSA's financial position indicate that there should be sufficient sewer fees accumulated to pay the remainder of the Sewer loan at the maturity date. Staff have committed to providing an update to the NDM CSA Advisory Committee to confirm availability of funds a few days prior to maturity.
- May 2019 Water Loan Status - The County provided the Water Loan in order to fund expenses in excess of the prior planning loan, and to resolve an accumulated deficit due to revenues from the prior assessment being insufficient to keep up with higher operating and maintenance costs. At the time this loan was provided, there was not a clear source of repayment. In its approval, it was agreed that the loan would be provided at the same terms as the previous water loan which meant that it held the same maturity date and would be due in June 2021.
The County at the May 25, 2021 NDM CSA Advisory committee discussed the upcoming deadline for the May 2019 Water Loan ($275,000) and the possibility of using additional funds released from the impound for the water project as a potential repayment source. The CSA Advisory Committee requested that the County come back with overview of all options in order to address the loan and other potential avenues for repayment. Thus, in order to accommodate that request for additional time, County staff are requesting the Board of Supervisors approve an extension of the $275,000 loan (updated term sheet on Attachment A) from the General Fund to North Davis Meadows to allow time for this process to occur. The requested extension is one-year and would provide until June 2022 to repay the loan. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with County Counsel, County Service Area Team, and District 2 on this item. The Department of Financial Services discussed this recommendation with the North Davis Meadows County Service Area Advisory Committee on May 25, 2021. |
| Competitive Bid Process |
| Not applicable. |
|
|
|
|
|