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C. 12

To:	Contra Costa County Flood Control District Board of Supervisors
From:	Julia R. Bueren, Public Works Director/Chief Engineer
Date:	February 4, 2014

Contra

Costa

County

Subject:

Set Flood Control District Revolving Fund Deposit and Loan Interest Rates, Countywide. (100% Flood Control Revolving Funds) Project No. 7505-6F8232

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/04/2014

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Tim Jensen (925) 313-2390
cc:	D. Twa, CAO B. Campbell, Auditor-Controller L. Watters, Auditor-Controller's Office S. Kowalewski, Deputy Chief Engineer M. Carlson, Flood Control W. Quever, Finance T. Jensen, Flood Control C. Windham, Flood Control

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: February 4, 2014
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2014/37 approving interest rates of 0.3 percent per annum for funds of various drainage entities deposited to or loaned from the Flood Control District Revolving Fund, Countywide.

FISCAL IMPACT:

The Flood Control District Revolving fund will recognize a benefit as interest rates have decreased significantly.

BACKGROUND:

The Contra Costa County Flood Control and Water Conservation District has a Revolving Fund that allows underfunded entities to temporarily borrow funds from entities with surplus funds in order to proceed with necessary work. The interest rate for the Revolving Fund loans has historically been set by the Board to be the same as the County Treasurer’s interest rate received for similar types of investments. The recent economic climate has allowed interest rates to decrease significantly, and the Flood Control District Revolving Fund should lower the interest rates accordingly. The interest rates were last lowered in 2003 to 2.52 percent per annum by Board action.

Staff recommends that the interest rates for current and future loans be lowered to 0.3 percent per annum to match the rate received for similar types of investments made by the County as determined by the County Treasurer. The effective date requested is the beginning of fiscal year 2013-14 and is for a 5-year period.

CONSEQUENCE OF NEGATIVE ACTION:

If this action is not approved, the Flood Control District Revolving Fund will continue to charge excessive interest rates on its loans.

CHILDREN'S IMPACT STATEMENT:

Not applicable.