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Home My WebLink AboutDISCUSSION re Interfund Loans 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 Community 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: G Mark McCauley, ty Administrator Date STATE OF WASHINGTON County of Jefferson In the Matter of Providing an Interfund Loan to Community Development Fund (143) from RESOLUTION NO. 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 ADOPTED and APPROVED this day of , 2024. JEFFERSON COUNTY BOARD OF SEAL: COUNTY COMMISSIONERS Kate Dean, Chair Greg Brotherton, Member Heidi Eisenhour, Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, CMC Date Philip C. Hunsucker, Date Clerk of the Board Chief Civil Deputy Prosecuting Attorney 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 Capital Improvement Fund to the HJ Carroll Park Fund STATEMENT OF ISSUE: The Capital Improvement Plan identified the HJ Carroll Park-JUMP as a capital project and anticipated transferring $100,000 from the Capital Improvement Fund to the HJ Carroll Park Fund. However,the next phase of JUMP construction has now been completely funded with grant funds,totaling approximately $350,000. ANALYSIS: The grant funds will be paid by reimbursement of expenditures and the HJ Carroll Park Fund(304) does not currently have enough working capital to pay contractors as work is completed;therefore, it temporarily requires funds. FISCAL IMPACT• The Capital Improvement Fund(302)has capacity to do a short-term loan in the amount of$350,000 at 50 o per annum. The interest will be deposited to the Capital Improvement Fund. The loan and interest will be repaid on or before September 30, 2025. RECOMMENDATION: The Board of Commissioners of Jefferson County authorize the County Treasurer to loan $350,000 from the Capital Improvement Fund(302)to the HJ Carroll Park Fund(304), at 5%per annum. REVIEWED BY: Mark McCauley, C ty Administrator Date STATE OF WASHINGTON County of Jefferson In the Matter of Providing a Loan to the HJ Carroll Park Fund (304) from the Jefferson RESOLUTION NO. County Capital Improvement Fund (302) WHEREAS, the Board of Jefferson County Commissioners are committed to the next development phase of the JUMP Park at HJ Carroll Park, Port Hadlock, WA; and WHEREAS, the HJ Carroll Park-JUMP has received 100%grant funding to completed the next phase that is set to begin construction in January, 2025; and WHEREAS, the grant funding is a reimbursement of expenditures and working capital to pay contractors before receiving grant funds is required; and WHEREAS, the JUMP Park is already on the County's Capital Improvement Plan and the Capital Improvement Fund(302)has sufficient fund balance that a loan to the HJ Carroll Park Fund(304)will not impact the fund's ability for other capital projects; and WHEREAS, the State Auditor's Office has set out 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 inter fund loans; WHEREAS, that the Board of Commissioners, in the best interest of the public, does hereby authorize the County Treasurer to loan an amount of$350,000 from the Capital Improvement Fund to the HJ Carroll Park Fund (304), at 5%per annum; and WHEREAS, the interest on said loan will be deposited in the Capital Improvement Fund; and WHEREAS, the said amount of the loan and interest shall be repaid on or before September 30, 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 authorize the County Treasurer to loan an amount of$350,000 from the Capital Improvement Fund(302)to the HJ Carroll Park Fund(304), at 5% per annum, with the interest on said loan deposited to the Capital Improvement Fund, and the said amount of the loan and interest shall be repaid on or before September 30, 2025. Section 4. Loan Approved. The Loan to the HJ Carroll Park Fund(304) from the Jefferson County Capital Improvement Fund(302) above is hereby approved. 1 of 3 Section 5. 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 6. Effective Date. This resolution is effective upon adoption. Section 7. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). (SIGNATURES FOLLOW ON THE NEXT PAGE) 2 of 3 ADOPTED and APPROVED this day of , 2024. JEFFERSON COUNTY BOARD OF SEAL: COUNTY COMMISSIONERS Kate Dean, Chair Greg Brotherton, Member Heidi Eisenhour, Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, CMC Date Philip C. Hunsucker, Date Clerk of the Board Chief Civil Deputy Prosecuting Attorney 3 of 3