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Adopt a resolution authorizing the County Treasurer to transfer up to 85% of FY2026/27 anticipated property tax revenues from Treasury Pool funds to local school districts if requested by a district, as authorized under California Constitution Article XVI §6 from July 1, 2026, to April 26, 2027
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a resolution authorizing the County Treasurer to transfer up to 85% of FY2026/27 anticipated tax revenues from the Treasury Pool funds to local school districts, when requested by a district, under California Constitution Article XVI §6 from July 1, 2026, to April 26, 2027.
SUMMARY:
In accordance with California Constitution Article XVI, §6, the County Treasurer will make mandatory advances of up to 85% of anticipated property tax revenues accruing to the local school districts during FY2026/27 as needed by them to cover any cash deficits they may experience in meeting their operational requirements. All advances will be repaid prior to April 26, 2027, as required by law.
The attached resolution will enable the various local school districts to fulfill their educational mandates by providing them with a stable source of required operational cash from July 1, 2026, to the last Monday in April of 2027, while keeping the County in compliance with all applicable mandatory statutes. Transfers will be payable with interest at the rate the County applies to funds of the districts on deposit with the County.
The anticipated amount of property tax revenues for each local district is determined by the County Auditor-Controller. At the request of a district by resolution, the Treasurer will advance up to 85% of the anticipated property tax revenues accruing to the requesting district.
FINANCIAL IMPACT:
The Constitutional transfers of funds will be made using cash available in the Treasury Pool. The County Treasurer has determined that the temporary transfers of funds will not adversely affect the County Treasury Pool. There should be sufficient liquidity in the Treasury Pool to fund these advances. The advances will be repaid from the first available revenues accruing to the district.
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2025/26 Working Budget.
ALTERNATIVES:
The Board of Supervisors could elect not to authorize the transfer of funds to the school district; however, this is not recommended as the failure to authorize that a transfer be made if requested by the school districts could cause those school districts to be unable to meet their functional mandates and place the County in noncompliance with State mandates.
OTHER AGENCY INVOLVEMENT:
The County Auditor-Controller, County Counsel, County Administrator, Solano County Office of Education, and the respective requesting districts have been directly involved in this request. Formal transfer requests will be provided by the school districts to the Treasurer/Tax Collector/County Clerk before loans authorized by this action will be granted.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION