Take the following actions regarding the Blackstone Estates Permanent Road Division: (1) Approve a budget amendment increasing appropriations by $3,500 offset with use of remaining fund balance in the amount of $2,655 plus amount from a short term loan; and (2) authorize a no-interest short term loan from the General Fund in the amount of $2,000.

A budget amendment and short-term loan is proposed for resurfacing within the Blackstone Estates PRD.

The Blackstone Estates Permanent Road Division (PRD) is in west Cottonwood. In 1996, local residents petitioned the Board to establish the PRD. Annual parcel charges are collected and accumulate until maintenance is required. The 2016 PRD maintenance contract was awarded to Northwest Paving, Inc. Stonegate Drive was slurry sealed. The contract is based upon actual square footage which exceeded the budgeted amount. A General Fund loan is proposed to cover the shortfall. Next year’s assessments will be adequate to provide the remaining funding.

The Board may decline to approve the proposed budget amendment and/or short-term loan. Expenditures will be overstated.

The Auditor-Controller has reviewed and supports the recommendation. The County Administrative Office has reviewed this recommendation.

The PRD (00314) fund is approximately $2,000 short of the amount necessary to pay for the resurfacing work. A non-interest-bearing loan from the General Fund (00060) is proposed to prevent a negative cash position at the end the fiscal year. December 2017 assessments will be adequate to repay the loan and restore a cash balance in the PRD. There is a General Fund impact with this recommended action (approximately $20 in foregone interest).