2012/03/19 Riverside, County FY12 resolution for repayment of transitional year expenses SUBMITTAL TO THE BOARD OF SUPERVISORS ?]
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
FROM: Executive Office SUBMITTAL DATE:
March 19, 2012
SUBJECT: Resolution No. 2013-030 Authorizing Deferral of Reimbursement of Transition Year
Service Costs to the City of Menifee Pursuant to Government Code Section 57384
RECOMMENDED MOTION: That the Board of Supervisors adopt Resolution No. 2013-030,
deferring the repayment of transition year service costs by the City of Menifee.
BACKGROUND: When a city incorporates, government code requires the county to provide
1 existing levels of service to the area incorporated for the remaining fiscal year, or until the city
council requests discontinuance of service; whichever occurs first. This period is known as the
transition year. The requirement to repay the county within five years from the date of
incorporation for the transition year service costs was included in the conditions of approval
adopted by the Local Area Formation Commission (LAFCO) on October 25, 2007.
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i. Tina Grande, Princ I Management Analyst
FINANCIAL Current F.Y.Total Cost: $ N/A In Current Year Budget: N/A
Current F.Y. Net County Cost: $ N/A Budget Adjustment: N/A
DATA Annual Net CountyCost: N/A
$ N/A For Fiscal Year:
SOURCE OF FUNDS: Positions To Be
Deleted Per A-30
C.E.O. RECOMMENDATION: APPROVE Requires 4/5 Vote
G96rge A. J tnson
c- a County Executive Office Signature
m v
N VI
g 0 MINUTES OF THE BOARD OF SUPERVISORS
❑ 0 On motion of Supervisor Ashley, seconded by Supervisor Jeffries and duly carried,
IT WAS ORDERED that the above matter is approved as recommended.
Ayes: Jeffries, Stone, Benoit and Ashley
Nays: None Kecia Harper-Them
Absent: Tavaglione Cler t ard�
Date: February 26, 2013 By.
5 xC: E.O. Dep t
x
W g
� a Prev. Agn. Ref.: 3/27/12 3.5 District: 3&5/5 A endaNumber: 3 =n15
Resolution No. 2013-030 Authorizing Deferral of Reimbursement of Transition Year Service
Costs to the City of Menifee Pursuant to Government Code Section 57384
March 19, 2012
Page 2
BACKGROUND continued: The City of Menifee incorporated on October 1, 2008, which
means total repayment is due before October 1, 2013. The total transition year net cost to
the county is $1,057,615. Of this amount, $459,977 was for general fund services, and the
remaining $597,638 was for non-general fund transportation services. These amounts are
adjusted annually by any subsequent change in the California Consumer Price Index (CPI).
The city approached the Executive Office and discussed terms for a deferral of the
transition year costs. On January 3, 2012, the City of Menifee City Council formally
requested a deferral by resolution.
The Executive Office submitted a resolution for approval by the Board on March 27, 2012
(Item 3.5). At that time, the Board chose to continue the matter off calendar. The
Executive Office is bringing this matter back to the Board for consideration as both the
county and the city are in the process of developing budgets for the coming fiscal year.
The attached resolution reflects terms discussed and recommended by the Executive
Office. The terms are as follows: The city will be allowed to defer repayment of the total
general fund transition year costs for an additional five years to September 30, 2018. Full
repayment of the non-general fund transportation services costs repayment will be deferred
until fiscal year 2020/2021, with a minimum annual payment of no less than $100,000, plus
CPI, beginning in fiscal year 2015/2016 and ending in fiscal year 2020/2021.
Government Code Section 57384 allows the Board of Supervisors, by resolution, to defer
repayment of transition year service costs.
The resolution has been approved as to form by County Counsel.
I Board of Supervisors _County of Riverside
2 RESOLUTION NO. 2013-030
3 A RESOLUTION OF THE BOARD OF SUPERVISORS OF RIVERSIDE COUNTY AUTHORIZING DEFERRAL OF
REIMBURSEMENT OF TRANSITION YEAR SERVICE COSTS TO THE CITY OF MENIFEE PURSUANT TO
4 GOVERNMENT CODE SECTION 57384
5
6 WHEREAS, the conditions of approval for the incorporation of the City of Menifee adopted by the
7 Riverside County Local Agency Formation Commission on October 25, 2007, provide that the City of
8 Menifee ("City'), in accord with the provisions of Government Code Section 57384(b), must repay the
9 County of Riverside ("County") for transition year services provided by the County within five years
10 unless otherwise agreed by the County and the City; and
11 WHEREAS, the actual cost for services provided by the County to the City during the transition
12 year have been determined to be $459,977 in general fund services, and $597,638 in non-general fund
13 transportation services for a total repayment obligation of$1,057,615; and
14 WHEREAS, these amounts, as outlined in Government Code Section 57384(b), are adjusted
15 annually by any subsequent change in the California Consumer Price Index (CPI); and
16 WHEREAS, on January 3, 2012, in accordance with the provisions of Government Code Section
17 57384(b), the City of Menifee requested by resolution a deferral of the full reimbursement of general
18 fund transition year costs, originally in the amount of $459,977, for an additional five years to
19 September 30, 2018; and
20 WHEREAS, on January 3, 2012, in accordance with the provisions of Government Code Section
1�21 57384(b), the City of Menifee requested by resolution a deferral of the full reimbursement of non-
�22 general fund transportation transition year costs, originally in the amount of$597,638, with a minimum
23 annual payment of no less than $100,000, plus CPI, beginning in fiscal year 2015/16 and ending in Fiscal
24 Year2020/2021;
25 NOW, THEREFORE, BE IT RESOLVED, FOUND, DETERMINED AND ORDERED that the Board of
26 Supervisors for the County of Riverside in regular session assembled on January 29, 2013, hereby agrees
27 that the County will defer the full reimbursement of general fund transition year costs, originally in the
28 amount of $459,977, for an additional five years to September 30, 2018, and the County will defer the
02.26. 13 3-15
I full reimbursement of non-general fund transportation transition year costs, originally in the amount of
2 $597,638, with a minimum annual payment of no less than $100,000, plus CPI, beginning in fiscal year
3 2015/2016 and ending in Fiscal Year 2020/2021.
4
5 ROLL CALL:
6 Ayes: Jeffries, Stone, Benoit and Ashley
7 Nays: None
Absent: Tavaglione
8
9 The foregoing is certified to be a true copy of a resolution duly
adopted by said Board of Supervisors on the date therein set forth.
10 KECIIA HHAAR1PE,R-IHEM, Clerk of said Board
11 By: 1 6 oalrt�
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