TO: Board of Supervisors
FROM: David Morrison, Interim County Executive Officer
REPORT BY: Becky Craig, Assistant County Executive Officer
SUBJECT: Approval of issuance of temporary loan to Napa Berryessa Resort Improvement District
RECOMMENDATION
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Interim County Executive Officer requests the following actions regarding a loan to the Napa Berryessa Resort Improvement District (District) (4/5 vote required):
1. Adoption of a Resolution granting a loan in the amount of $1,000,000 to the District and approving issuance of a note to borrow funds from the County of Napa for the purpose of providing supplemental funding of ongoing operations of the District's facilities and authorizing the Chair and Clerk of the Board to sign the note; and
2. Approval of a Budget Amendment increasing appropriations in Accumulated Capital Outlay from available fund balance to fund a loan to the District's Administration budget.
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EXECUTIVE SUMMARY
Napa Berryessa Resort Improvement District (District) is requesting approval of a temporary loan agreement by the County for $1,000,000 pursuant to Government Code Section 25214.4. The loan is needed to fund ongoing operations of the District's facilities and is proposed to be repaid pursuant to Government Code Section 25214.4 within the required three (3) year term.
FISCAL & STRATEGIC PLAN IMPACT
Is there a Fiscal Impact?
Yes
Is it currently budgeted?
No
Where is it budgeted?
The loan will be from the Appropriation of Contingency in the General Fund to the District.
Is it Mandatory or Discretionary?
Discretionary
Discretionary Justification:
The District lost over 100 homes in the Hennessey Fire in August 2020 contributing to nearly $200,000 in lost revenue annually from the closed user accounts. In addition, active customer delinquencies have increased, and unforeseen expenses in the operations and maintenance budgets have been required to address system deficiencies. Together this will cause the District to end the Fiscal ...
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