To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
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Supplemental Budget Adjustment for the Headwaters Fund Revolving Loan Fund (3843) in the Amount of $1,000,348 (4/5 Vote Required)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the attached supplemental budget in the amount of $1,000,348 for fiscal year (FY) 2024-25 for the Headwaters Fund Revolving Loan Fund (3843) (4/5 Vote Required).
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STRATEGIC PLAN:
This action supports the following areas of your Board's Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
On June 4, 2024, your Board approved amendments to the Redwood Region Economic Development Commission and North Edge Business Financing and Community Development (formerly Arcata Economic Development Corporation). These amendments extended the term of the current Master Participation Agreements and Lender Agreements through June 30, 2026, and authorized an increase of availability of funding from $3,500,000 each, to $4,000,000 for Redwood Region Economic Development Commission and $5,000,000 for North Edge Business Financing and Community Development. These loans are operated in accordance with the Headwaters Fund Charter, Headwaters Fund Revolving Loan Fund Manual, Master Participation Agreements and Lender Agreements.
Staff are requesting a modification to the Revolving Loan Fund Budget (3843) to make the entire cash balance available for participation in loans in FY 2024-25. With multiple large loan draws pending, all available funds will need to be made available to support ongoing Revolving Loan Fund operations and provide sufficient reserves for any additional loans. Early repayment of loans may require subsequent budget adjustments to free up cash for future lending demand in the current fiscal year.
SOURCE OF FUNDING:
Headwaters Revolving Loan Fund (38...
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