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HomeMy WebLinkAbout20201617.tiffOFFICE OF BOARD OF COMMISSIONERS PHONE: 970-336-7204 FAX: 970-336-7233 1150 O STREET P.O. BOX 758 GREELEY, COLORADO 80632 May 29, 2020 Governor Jared Polis State of Colorado State Capitol Building Denver, Colorado 80203 Dave Young Colorado State Treasurer 200 E Colfax Ave #140 Denver, CO 80203 RE: Advancement of Property Tax Funds to School Districts in 2020 Dear Governor Polis and State Treasurer Young: This letter is to confirm that the Board of County Commissioners of Weld County and the Weld County Treasurer have the legal authority and are willing to advance property tax funds to school districts within Weld County that demonstrate a financial need caused by a delay in the due date for property tax payments in 2020. The advancement of funds would be until enough property tax payments are made to cover the advance or until the school district receive funds from the State Treasurer's anticipated loan fund to cover the advance. Weld County is financially able to accommodate the property tax advance from a cashflow perspective. The advance of the property tax will be accommodated as a routine interfund advance among the Weld County Treasurer's funds. In accordance with generally acceptable accounting standards, the fund advance is reported as an asset of the lending fund (Weld County General Fund) and as a liability of the borrowing fund (school district funds) on the Weld County Treasurer's books. Because such accounting activity is purely internal, the assets are not treated as an investment and the liability is not treated as a debt. We refer you to the Government Accounting Standard Board (GASB) Comprehensive Implementation Guide, 7.23.11 for the authoritative source of the handling of this transaction. Since the transaction is purely internal and not treated as a debt, the transaction does not violate the debt provision of TABOR. GoMMUn; Co..+Ions 2020-1617 Letter, Governor Polis and State Treasurer Young May 29, 2020 Page 2 If you should have questions or wish to discuss further, please contact me at (970) 400-4200. Sincerely, Mike Freeman, Chair Board of County Commissioners of Weld County pc: Don Warden, Weld County Director of Finance and Administration Hello