HomeMy WebLinkAbout045 07r CC • I rL°O1,5
. - ' ~ ~IS'O7 STATE OF WASHINGTON
C 5 County of Jefferson
In The Matter of providing a Loan }
to Jefferson County Fire Protection } RESOLUTION NO. 45-07
District No. 5 From the County }
General Fund }
WHEREAS, Jefferson County Fire District No. 5 is a Special Taxing District of
Jefferson County; and
WHEREAS, Jefferson County Fire District No. 5 is experiencing financial difficulty
due to suspected criminal embezzlement of the Districts funds which is currently under
investigation; and
WHEREAS, Jefferson County Fire District No. 5 has requested a loan in order to
maintain its operations; and
WHEREAS, Jefferson County Fire District No. 5 has requested a loan in order to
maintain its operations and will sign an interlocal agreement stipulating to terms and conditions of
a loan and interest; and
WHEREAS, Jefferson County Fire District No. 5 will reimburse the Jefferson
County General Fund for the approved loan amount;
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners
that they find and declare that the financial situation of Jefferson County Fire District No. 5 affects
the needs of the citizens within the County and requires this Board proceed in a manner and form
as herein determined, and that the sum of $150,000 be established as a line of credit for Jefferson
County Fire District No. 5 from the General Fund.
BE IT FINALLY RESOLVED, that the line of credit will be repaid by May 2009
with interest of 6.19% per annum. The Jefferson County Treasurer may direct payment from
current expense to Jefferson County Fire District No. 5 effective upon execution of an interlocal
agreement.
APPROVED AND SIGNED this 4th day of June , 2007.
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r~ ^ t ,~ ~ ' .' ~, JEFFERSON COUNTY
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Y \ '' ~ Phi ohn ,Chairman
ATTESTt~*,, ° ~, ~=-`'~ Davi ~. Sulli~v~an, Member
ulie Matthes, CMC John ustin, Member
Deputy Clerk of the Board
.JEFFERSON ~OUNTl~ TREASURER.
P.O. Box 571 Port Townsend, Washington 98368
Email: jmorris@co.jefferson.wa.us
www.co. jefferson.wa. us
Jt~ditFi ~. J~forris -Treasurer (360) 385-9154
~anet.~l.. HOC~TOOk,- Chlef Deputy (360) 385-9151
June 1, 2007
T0: Jefferson County Commissioners
FROM: Judi Mo r' , s rer
RE: Loan to Fire District # 5
,:
In May Fire District 5 discovered an employee had embezzled funds and admitted
to doing so. The depth of the crime is still being investigated by the State Auditor
but could range from $18,000.00 to $60,000.00. Any amount would be difficult
and for this small district it is incapacitating.
Funds that were to have paid legitimate bills, including payroll, were diverted to
the employee. The district has a back log of unpaid expenses and three accounts
in overdraft.
A new secretary is working with my staff, District 5 Commissioners and Chief
Wilson to develop a budget to carry them through May of 2008. I recommended
and the District Commissioners agreed, at a meeting on May 30, 2007, that the
interim solution is to request a loan from the county. As we have done for other
entities the loan would carry an interest rate equal to the State Pool plus 1%.
That rate is currently 5.19%. The established rate for the district will be 6.19%.
The maximum loan amount would be $150,000.00.
I also suggested we establish a line of credit type loan, so they only borrow and
pay interest on the amount(s) they actually need. Hopefully insurance will recoup
their losses; at least in part. That will lessen the loan amount required to keep
their operations stabilized. The term of the loan is yet unknown, but my goal is
to have this matter resolved and repaid by May of 2009.
My staff will monitor this loan, as we have done with others and report to the
Finance Committee quarterly.
Thank you on behalf of the District Commissioners and their constituents.
General Tax
Accounting Information Foreclosure
(360)385-9152 (360)385-9150 (360)385-9352
Fax
(360) 385-9149
JEFFERSON COUNTY COURTHOUSE
NATIONAL HISTORIC SITE
PORT TOWNSEND, WASHINGTON
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Fire District 5 background information
• Secretary involved in embezzlement was hired in August 2006, was put on
administrative leave in April and (we believe) fled to California or South
Carolina
• Chief Bob Wilson was appointed interim chief in April.
• Fire District 5 Commissioners have been briefed
• State Auditor Amy Khile is managing the investigation
• By the end of June we should know the extent of the deficit
Judi Morris 6-1-07