Agenda

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County Administrator's Report 12. 36.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	07/18/2019
Issue: Interfund Loan - Mass Transit
From:	STEPHAN HALL
Department:	Asst County Administrator
CAO Approval:

RECOMMENDATION:

Recommendation Concerning an Ongoing Interest Free Interfund Loan Between the General Fund (001) and the Mass Transit Fund (104) - Stephan Hall, Budget Manager, Management and Budget Services

That the Board take the following action:

A. Approve an ongoing revolving interfund loan from the General Fund (001) to the Mass Transit Fund (104), in an amount not to exceed $3,500,000, to cover annual cash shortfalls until Grant reimbursements are received; and

B. Waive all interest payments on any outstanding balance on this revolving interfund loan.

This interfund loan request is necessary because the Federal Transit Authority (FTA) requires payment and then reimburses the County. Currently, Mass Transit is working with the FTA on the 2019 5307 Application. Once the Grant is in concurrence, it will be awarded in the amount of $3,533,657. Prior to award, the Department of Labor will review the application for 15 days. It is anticipated that funds will be available for draw around the August 9th time frame. The 2019 Certs and Assurances were PINNED on 06/28/2019. The Certs and Assurances were provided later in the year than what is typical because of the Government shut down earlier this year.

BACKGROUND:

This Board action will allow an ongoing cash loan to be made from the General Fund to the Mass Transit Fund on an as-needed basis. Loan proceeds are then repaid back to the General Fund when the FTA Grant Funds are received, usually in the July/August time frame each year, which will increase the cash balances in the Mass Transit Fund.

This interfund loan request is necessary because the Federal Transit Authority (FTA) requires payment and then reimburses the County. Currently, Mass Transit is working with the FTA on the 2019 5307 Application. Once the Grant is in concurrence, it will be awarded. Prior to award, the Department of Labor will review the application for 15 days. It is anticipated that funds will be available for draw around the August 9th time frame. The 2019 Certs and Assurances were PINNED on 06/28/2019. The Certs and Assurances were provided later in the year than what is typical because of the Government shut down earlier this year.

BUDGETARY IMPACT:

N/A

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

Board policy requires Interfund Loans to be approved by the Board.

IMPLEMENTATION/COORDINATION:

N/A

Attachments
Mass Transit Interfund Loan Backup