The Yuba County Water Agency Board of Directors on July 18 approved a loan to the County of Yuba for its required payment to the California Public Employees’ Retirement System, in the amount of approximately $6.7 million.
Yuba County has two options to pay the unfunded liability portion of PERS over the next year; either all at once or by making monthly payments. Paying the lump-sum up front will save the County close to $180,000 in interest payments that would otherwise accrue over the fiscal year.
YCWA and Yuba County have a special, long-term financial partnership that started with the County providing money that was needed to establish YCWA. Additionally, in 2008, YCWA and Yuba County partnered in $78 million worth of bond sales to pay for the local share of levee improvements. These bonds were refinanced in 2016, and that process shows the County’s financial stability and good credit rating.
“Yuba County is fortunate to have a collaborative relationship with the Yuba County Water Agency that allows us to achieve unique solutions,” said County Administrator Robert Bendorf. “This short term loan helps us achieve substantial savings and protect funding for ongoing vital services.”
YCWA currently has more than $40 million in reserves invested with the Yuba County Treasury. One of the major purposes of these reserves is to have the necessary funds on hand to construct project improvements when the new Federal Energy Regulatory Commission license is issued. The Treasurer-Tax Collector actively helps manage YCWA’s funds and investments in accordance with the law.
Since YCWA’s new FERC license is not likely to be issued within the next year, and the County has budgeted and agreed to repay the loan within one year, the Agency is able to provide these resources without any reduction in earnings or conflict with future expenditures. The Yuba County Board of Supervisors will have the opportunity to accept the loan agreement at its July 25 meeting.
“It is great to see government agencies working together,” said YCWA Board Chairman Brent Hastey. “This loan will benefit the County, YCWA, and the people of Yuba County