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Home My WebLink AboutCONSENT Resolution re Interfund loan to DCD JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Josh Peters, County Administrator FROM: Jeremy Williammee, Community Development Director Judy Shepherd, Finance Director DATE: March 23, 2026 SUBJECT: Loan from the General Fund to the Community Development Fund STATEMENT OF ISSUE: The Board of County Commissioners is asked to consider adoption of a resolution reclassifying a $100,000 interfund loan and accrued interest as a permanent transfer from the General Fund to the Community Development Fund(143). This action is requested to allay ongoing cash flow constraints and the need to maintain essential public services within the Department of Community Development. ANALYSIS: The original interfund loan was authorized under Resolution No. 85-12-23-24R to provide working capital during a period of organizational restructuring and revenue shortfalls. Despite efforts to stabilize operations, the Community Development Fund continues to experience monthly cash flow challenges resulting from unanticipated budget constraints and delays in reimbursement for consultant costs and grant-funded work. Requiring repayment at this time will impair the Department's ability to fulfill statutory obligations and maintain service levels to the public. FISCAL IMPACT: The General Fund (001) will absorb the $100,000 loan balance and accrued interest as permanent transfer. No additional appropriation is required. RECOMMENDATION: Approve the resolution waiving repayment of the interfund loan from the Community Development Fund (143)to the General Fund. REVIEWED BY: i �44 I a 3 6 ,/,‘ Jos '`i. Peters, County Administrator Date 1 ATTACHMENT 1 Resolution DCD Loan Reclassification 2 STATE OF WASHINGTON County of Jefferson In the Matter of an Interfund Loan to Community Development Fund (143) from RESOLUTION NO. the General Fund WHEREAS, the Board of Jefferson County Commissioners remains committed to supporting Community Development services and ensuring continuity of operations within the Department; and WHEREAS, the Department of Community Development continues to experience financial constraints resulting from budget reductions, prior reorganization, consultant costs, and • revenue impacts that were unforeseen at the time of the original loan authorization; and WHEREAS,the Community Development Fund(143)has not fully recovered from these impacts and continues to face ongoing cash flow constraints that limit its ability to meet operational needs while maintaining essential public services; and WHEREAS, requiring repayment of the interfund loan at this time would create undue hardship and negatively affect the Department's ability to fulfill its statutory obligations and service commitments; and WHEREAS,the State Auditor's Office has established guidelines and minimum standards within the Washington State BARS Manual, and Jefferson County has a debt policy authorizing the Board of County Commissioners to manage county funds and accounts, including approving, modifying, or waiving interfund loan repayment when documented by resolution and consistent with accounting standards; and WHEREAS, reclassifying the interfund loan as a permanent transfer will ensure the financial stability of the Community Development Fund(143),help stabilize operations,and allow the Department to maintain essential public services and fulfill its statutory obligations without imposing additional financial burdens on the County or its residents; NOW, THEREFORE, THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,WASHINGTON,HEREBY RESOLVE AS FOLLOWS: Section 1. Whereas Clauses are Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above "Whereas"clauses as Findings of Fact. Section 2. Purpose. The purpose of this resolution is to reclassify the interfund loan previously authorized under Resolution No. 85-1223-24R from the General Fund to the Community Development Fund (143), due to ongoing cash flow constraints and in the interest of maintaining essential public services. Section 3. Waiver of Repayment Approved. The Board of County Commissioners hereby approves the reclassification of the $100,000 interfund loan and any accrued interest from the 1 of 3 Community Development Fund(143)to the General Fund as a permanent interfund transfer. This action is documented by resolution and taken in accordance with applicable state law, accounting standards, and Jefferson County debt policy to serve the public interest. Section 4. Severability. If any section, subsection, sentence, clause, phrase or section of this Resolution or its application to any person or circumstance is held invalid, the remainder of this Resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 5. SEPA Categorical Exemption. This Resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800 (19). • Section 6. Effective Date. This Resolution shall take effect and be in full force immediately upon passage by the Board of County Commissioners. (SIGNATURES FOLLOW ON THE NEXT PAGE) 2 of 3 ADOPTED and APPROVED this day of , 2026. SEAL: JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS Greg Brotherton, Chair Heidi Eisenhour, Member Heather Dudley-Nollette, Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, CMC Date Philip C. Hunsucker, Date Chief Civil Deputy Prosecuting Attorney 3 of 3 ATTACHMENT 2 Resolution 85-1223-24R DCD Loan 3 STATE OF WASHINGTON County of Jefferson In the Matter of Providing an Interfund Loan to Community Development Fund (143) from RESOLUTION NO. g 5-1 2 2 3-2 4 R the General Fund WHEREAS, the Board of Jefferson County Commissioners are committed to Community Development service improvement and implementing a fire marshal within the Department; and WHEREAS, the Department of Community Development underwent a reorganization in 2023 and,due to a substantial case backlog,required consultants to assist while new staff were recruited and trained; and WHEREAS, the Community Development Fund (143)requires sufficient working capital for day-to-day operations while grant funds are requested for reimbursement; and WHEREAS, there were several unforeseen impacts to fire marshal revenue, e.g.,the short-term rentals moratorium; and WHEREAS, the State Auditor's Office has established guidelines and minimum standards within the Washington State Bars Manual,and Jefferson County has a debt policy authorizing the Board of County Commissioners to approve interfund loans;and WHEREAS, that the Board of Commissioners does hereby authorize the County Treasurer to loan an amount of$100,000 from the General Fund to the Community Development Fund at 5%per annum to provide needed working capital and liquidity;and WHEREAS, the said amount of the loan and interest shall be repaid to the General Fund on or before December 31,2025;and NOW, THEREFORE, THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,WASHINGTON,HEREBY RESOLVE AS FOLLOWS: Section 1. Whereas Clauses are Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above"Whereas"clauses as Findings of Fact. Section 2. Purpose. The purpose of this resolution is to provide an interfund loan from the General Fund to the Community Development Fund(143) in the amount of$100,000 at 5%per annum to provide needed working capital and liquidity. Section 3. Interfund Loan Approved. The Interfund Loan to Community Development Fund (143)from the General Fund above is hereby approved. 1 of 3 Section 4. Severability. If any section, subsection, sentence, clause, phrase or section of this resolution or its application to any person or circumstance is held invalid, the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 8. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). Section 9. Effective Date. This resolution shall take effect and be in full force immediately upon approval and adoption by the Board of County Commissioners. (SIGNATURES FOLLOW ON THE NEXT PAGE) 2 of 3 1-0 ADOPTED and APPROVED this 1/1—day of b ,2024. JEFFERSON COUNTY BOARD OF SEAL: COUNTY COMMISSIONERS Kate Chair R6o ''1, g r therton. Member MISS'I'C'1ss ,C, gyp• O ; Z' G m ,T: -Zi ' Heidi Eisenhour, Member • i ATTEST: " ..HING•0��,-of APPROVED AS TO FORM: �MMI�N�MM�, 0,, K-�:�� 1L/z3/y )-7----Az_ CarolynCllaykav, CMC� Date Philip C. Hunsucker, Date /7— ZZ 7 4 Clerk of the Board Chief Civil Deputy Prosecuting Att6rney 3 of 3 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners FROM: Judy Shepherd, Finance Director DATE: December 23, 2024 SUBJECT: Interfund Loan from the General Fund to the Communih Development Fund STATEMENT OF ISSUE: The General Fund has already transferred$1,089,543 to Community Development Fund in 2024. The Community Development Fund still lacks significant cash flow to be able to meet its obligations. ANALYSIS: A number of factors have contributed to the lack of cash flow: consultants hired to address significant backlog, fire marshal revenue impacted by unforeseen factors, and grant funds are requested for reimbursement. FISCAL IMPACT: Due to the funds already transferred to Community Development in 2024, it was determined that Community Development could repay funds to the General Fund in 2025 when revenues improved and consultant use could be kept to a minimum due to being fully staffed. RECOMMENDATION: The Board of Commissioners of Jefferson County authorize the County Treasurer to loan $100,000 from the General Fund(001)to the Community Development Fund at 5%per annum. REVIEWED BY: ��CCZ / / Mark McCauley, ty Administrator Date