Review Agenda Item
Meeting Date: 1/13/2021 - 6:00 PM
Category: Business/Action Items
Type: Action
Subject: 17.3 Resolution Authorizing and Approving Temporary Transfer Agreement for Fiscal Year 2020-21 from the Contra Costa County Treasury to Address Anticipated Deferred State Funding
LCAP (Local Control Accountability Plan) Goal:
Goal 1: All students will receive a high quality education in a safe and welcoming environment with equitable and high expectations, access to technology, and instruction in the California State Standards that prepare them for college and/or career.
Enclosure Resolution 20/21-41
File Attachment:
Resolution 20_21-41 - TRANS.pdf
Summary: The Mt. Diablo Unified School District (the “District”) currently projects that it will experience a cash flow shortfall during fiscal year 2020-21 created by timing differences between its anticipated expenditures and estimated receipt of revenues, including deferred State funding. Resolution No. 20/21-41, as presented to the Governing Board, authorizes a Temporary Transfer Agreement by the District from the Contra Costa County Treasury to address this cash flow shortfall.

At the November 19, 2020 Governing Board meeting, the Board approval a resolution authorizing a Tax Revenue Anticipation Note (TRAN) to address the shortfall, notably because it allows borrowing up to $41,530,000 in the Contra Costa County Schools Pooled fund that crosses fiscal years 2020/2021 into 2021/2022. However, if the deferrals are notably reduced, eliminated, or delayed, it is less expensive to borrow from the Contra Costa County Treasury than to obtain a TRAN. The amount needed to borrow, based on First Interim data, has also been updated. The Temporary Transfer Agreement is not to exceed $33,149,973.

Because of the timing of any notification of a change in the scheduled cash deferrals, the anticipated Governor's Budget Message that will provide more information, and the timing of our January 13, 2021 board meeting, this resolution assists the Superintendent and Chief Business Officer to make a decision for which funding source is most fiscally prudent to meet the needs of the District. The District will NOT pursue both a TRAN and Temporary Transfer Agreement from the County Treasury, but will select only one once all cash deferral updates have been made by the State.
Fiscal Impact Repayment of any Transfer, including interest, shall be the first payment made from the property taxes and principal apportionment before any other obligation of the district is made from such revenue.
Recommendation: It is recommended that the Board approve Resolution 20/21-41
Recommended By:
Signed By:
Niccole Helton - Administrative Assistant
Signed By:
Dr. Lisa Gonzales - Chief Business Officer
Signed By:
Dr. Adam Clark - Superintendent