(September 21)  In a rare but permissible move, the county of San Bernardino is advancing the Yucaipa-Calimesa Joint Unified School District over $5 million in property tax that it is calculated the district will be due at a later date.
The Yucaipa-Calimesa Joint Unified School District straddles portions of San Bernardino and Riverside counties, consisting of six elementary schools, two junior high schools, one high School, four alternative schools and an adult school.
According to San Bernardino County Auditor-Controller/Treasurer/Tax Collector Larry Walker, his office “received a request from Yucaipa-Calimesa Joint Unified School District for a temporary transfer of funds, in accordance with the provisions of Article XVI, Section 6 of the California Constitution and Section 42620 of the California Education Code. These provisions require the board of supervisors to order the county treasurer to make a temporary transfer of funds to a school district from any funds of the county not immediately needed to pay claims of the county if the school district has established a need for the funds. The temporary transfer of funds must not exceed 85% of the anticipated property tax revenue that will accrue to the school district, and shall be re-transferred by the auditor controller tax collector to the fund of the county from property tax collections before any other obligation of the school district is paid.”
“The district has requested a temporary transfer of funds for $5,060,000. The auditor/tax collector/controller’s office considered several factors, including the district’s deepest projected cash deficit and the anticipated tax revenue that will accrue to the district in arriving at its recommendation,” Walker continued. “In addition to demonstrating a cash need, the district has established inter-fund borrowing authority for the auditor/tax collector controller’s office to consider in its recommendation to the board of supervisors that a temporary transfer of funds be approved.”
Walker added, “Upon review of the district’s cash needs, the auditor treasurer controller’s office finds that the district has satisfactorily demonstrated a reasonable need for a temporary transfer of funds and recommends a temporary transfer of funds of $5,060,000. This amount represents the lesser of the district’s request; 85% of its anticipated tax revenue, and 125% of its deepest projected cash deficit for 2012-13.”
School District temporary transfers of funds are non-interest bearing and thus reduce the mount of county funds available for county use until repayment is completed, such that county interest earnings will be reduced while the school district utilizes the temporary transfer.
The board’s action establishes a “line-of-credit” in the amount of $5,060,000 for Yucaipa-Calimesa Joint Unified School District to draw on, as needed, to be repaid by April 29, 2013.