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HomeMy WebLinkAbout12.04.20 12_8_20 BOS Meeting Item 4.14 PGE Settlement PowerPoint Presentation From:Schuman, Amy To:Alpert, Bruce;Bennett, Robin;Clerk of the Board;Connelly, Bill;Cook, Holly;Lambert, Steve;Lucero, Debra; McCracken, Shari;Paulsen, Shaina;Pickett, Andy;Ring, Brian;Ritter, Tami;Rodas, Amalia;Sweeney, Kathleen; Teeter, Doug Cc:Jessee, Meegan Subject:12/8/20 BOS Meeting Item 4.14 PGE Settlement PowerPoint Presentation Date:Friday, December 4, 2020 3:42:56 PM Attachments:4.14.PPT.pdf Good afternoon Supervisors, Please see the attached presentation that has been added for the 12/8 Board meeting Item 4.14 - PG&E Settlement Fund Follow-Up and Draft Policy. It is now also available on iLegslate and online to the public. Sincerely, Amy Schuman Associate Clerk of the Board Butte County Administration 25 County Center Drive, Suite 200, Oroville, CA 95965 O: 530.552.3300 |D: 530.552.3308 | F: 530.538.7120 Twitter | Facebook | YouTube | Pinterest 4.14 PG&E Settlement Fund Policy & Follow Up Presentation to the Board of Supervisors December 8, 2020 Agenda •Staff Presentation •Background •Recommended Policy & Board Discussion •County Stability Initiative Follow Up & Recommendations •Board Discussion, Feedback & Direction PG&E Settlement Fund •$204 million for impacts to County functions in PG&E Settlement Fund •Fund Committed to County Stability, Hazard Mitigation & Recovery •Draft Policy to Facilitate Use of Funds •Follow up & Initial Recommendations on County Stability Initiatives PG&E Settlement Policy •Key priorities & principles •Stability, hazard mitigation and recovery •Prioritizes Camp Fire impacts & urgent projects that leverage outside funds. •Creates a process for submitting initiatives & projects for consideration. •Requires periodic reporting on the PG&E Settlement Fund. County Stability Follow Up & Recommendations •Property Tax losses and other direct Camp Fire impacts •General Fund Reserve •Audit Reserve •County Liabilities •Debt •Unfunded Liabilities Property Tax Losses & Recommended Backfill •State 3-year backfill ends FY 2021-22 •Year 1 $1.5 million •Year 2 $4.3 million •Year 3 $4.2 million •Approximately $4 million shortfall est. in FY 2021-22 •Recommend a time & dollar limited property tax backfill of up to $22 million. Additional Direct Impact Follow Ups •General Fund Reserves & Contingences -$8 million increase recommended •Camp Fire Audit Reserve -$5 million reserve recommended •Potential Jail Project Shortfall -Pending •Additional Direct Impacts from the Camp Fire -Not recommended at this time County Debt & Unfunded Liabilities •2010 Bangor Fire Station #55 -$903,000 Payoff Recommended •Unfunded Liabilities -$20 million contribution to Pension Trust for Unfunded Safety Pension Liabilities Recommended. -Prepayment of Annual Unfunded Liability Payment Recommended. Recommendations & Next Steps 1.PG&E Settlement Fund Policy –approval or direction on changes 2.County Stability Initiatives Consideration i.Up to $22m for Property Tax Backfill ii.$8m General Fund Reserve iii.$5m Camp Fire Audit Reserve iv.$0.9m Bangor Fire Station Debt Payoff v.$20m safety pension trust & cash flow for prepayment 3.Provide direction to staff