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ADMINISTRATION / AUDITOR-CONTROLLER / TREASURER TAX COLLECTOR - Chief Administrator Gabriel Hydrick
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Requested Action(s)
recommendation
a) UPDATE - To provide an update to the full Board on appropriate and available funding sources to backfill General fund due to negative interest on behalf of Health Services Agency over the last several years
b) TRANSFER OF FUNDS: ADMINISTRATION, B-71 - From Op Transfer Out (57910-597205) to Contingency (1109-59000), $554,082.36 and from Contingency, (1109-59000) to LATCF (1022-4507205), $554,082.36 (Requires 4/5’s vote)
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Financial Impact:
Our analysis identified no alternative funding sources to cover the interest paid by the General Fund for the HSA department. Allocating ARPA/LATCF funds of approximately $554,082.36 would benefit the General Fund by backfilling lost revenue. Conversely, not backfilling the interest would maintain the $554,082.36 contribution from the General Fund to the Health Services Agency.
Background Information:
On April 16, 2024, the Board received a presentation on the County's process for backend borrowing. County Administrator, County Auditor/Controller, and County Tax/Treasurer recommended utilizing ARPA/LATCF funds to reimburse the General Fund for interest payments made on behalf of the Health Services Agency. This was presented as the best option for funding that is not already part of the General Fund. Additionally, Supervisor Carlson inquired about exploring alternative options to replenish the General Fund and present this information to the Board before proceeding with ARPA/LATCF.
Other alternatives to help the General Fund become more whole due to this issue are not available at the moment, especially one time money. With a tightening economy at the state level and the pressing deadline to utilize the ARPA/LATCF funds, the recommended action is to capitalize on this opportunity and transfer the full amount to the General Fund.