HomeMy WebLinkAbout22-176A RESOLUTION OF THE BUTTE COUNTY BOARD OF SUPERVISORS
AUTHORIZING AN INTERFUND LOAN IN THE AMOUNT OF $24,000,00O
WHEREAS, the Butte County Capital lmprovement Program budgets for constructing a new building for the
Probation Administration Offices and demolishing the current failing facility; and,
WHEREAS, the Project will be funded with $1,700,000 Criminal Justice Facilities Construction Fund, $800,0010
Facility Reserve; and $24,000,000 debt financing; and,
WHEREAS, an interfund loan from the PG&E Settlement Fund allows the project to realize substantial savings
in interest and other financing costs compared to borrowing from a private lender and therefore meets the County
Stability criteria in the PG&E Settlement Fund Policy; and,
WHEREAS, on September 13, 2022 the Board committed up to $24,000,000 from the PG&E Settlement Fund
to provide an interfund loan for the purpose of financing construction of the Project; and
WHEREAS, $24,000,000 will be needed to fund the interfund loan on January 110 2.028 to begin paying
planning and permitting costs included in the Fiscal Year 2022-23 Recommended Budget; and,
WHEREAS, interest will Ibe due to the PG&E Settlement Fund at a rate equal to the average County Treasury
Pool rate for the four quarters immediately preceding each annual January 111 payment due date; and,
WHEREAS, construction is anticipated to begin in Fiscal Year 2023-24 and is expected to take approximately
twenty-four months, the interfund loan will require annual interest only payments through December 311t, 2025 and
due January 15t 2024, 2025, and 2026 for each preceding year; and,
WHEREAS, upon completion of construction the interfund loan will be repaid over a term of thirty years with
the first principal and interest payment due January 11t, 2027 and the final payment clue January 111, 2056; and
WHEREAS, additional lump -sum principal payments may be made annually to reduce future annual payment
amounts; and
WHEREAS, the PG&E Settlement Fund has a sufficient balance of funds that are not currently committed to
other uses; and,
WHEREAS, the interfund loan is strictly for the Project and is not intended to solve any ongoing budget issues
in the Probation Department; and
WHEREAS, the borrowing complies with Government Code Section 25252, which gives the Board the
authority to transfer money from one fund to another as the public interest requires, so long as the Board has
authority over each of the funds; and
NOW, THEREFORE, BE' IT RESOLVED that pursuant to its authority under Government Code Section 25252,
the Board of Supervisors hereby approves an interfund loan in the amount of $24,000,000 from the PG&E Settlement
Fund to the Probation Department to be applied towards constructing a new building for the Probation
Administration Offices and demolishing the current failing facility;
PASSED AND ADOPTED by the Butte County Board of Supervisors this 131h day of December 2022, by the
following vote:
AYES: Supervisors Ritter, Kimmelshue, Teeter and Chair Connelly
NOES: None
ABSENT: None
k
NOT VOTING: None r"Lk
Bill Connelly, Chair
Butte County Board of Supervisors
ATTEST:
Andy Pickett, Chief Administrative Officer and
Clerk of the Board of S isors
74
By: �
Deputy A�4