Mendocino supervisors approve temporary-fund transfers to cover transportation cash shortfalls

The Mendocino County Board of Supervisors on a 5-0 vote approved a resolution authorizing the auditor-controller-treasurer-tax-collector to make temporary transfers between county funds and continue paying warrants when short-term cash shortfalls arise, to avoid stopping work on ongoing projects.

County Auditor-Controller-Treasurer-Tax Collector Shamise Gevison told the board that the authorization is needed this fiscal year because timing differences in state reimbursements and departmental spending have created the potential for negative cash balances in the Department of Transportation’s road fund. “So it's anticipated that the road fund cash negative balance may fluctuate between 3 and $6,000,000,” Gevison said, noting her office was already withholding almost $2,500,000 in payments pending resolution.

The resolution permits the auditor to temporarily transfer funds in the county treasury for short-duration cash-flow needs and to continue paying vendors in situations that appear likely to be resolved quickly. Gevison said the department’s bridge projects are funded on a reimbursement basis by Caltrans and “are expected to be 100% reimbursed by Caltrans. But, again, they're reimbursement basis,” meaning the county must pay contractors first and seek reimbursement later.

Why it matters: Transportation director Howard DeShield told the board that several larger projects and an accelerated corrective-maintenance contract converged this season, producing higher-than-expected immediate bills. He described the current situation as an operational risk for ongoing construction and said the county must avoid stopping work while awaiting reimbursements. Gevison said the shortfall should resolve as reimbursements arrive and when the county makes its routine October 1 internal allocation to transportation, which she identified as about $4,500,000.

Supervisors pressed for limits and procedural clarity. Several members, including Supervisor Williams, asked whether the resolution should explicitly align with the California Constitution’s timing restrictions for certain external transfers; County Counsel Charlotte Scott confirmed the draft includes language addressing the constitution’s window and offered a further revision that would limit transfers to a specific date range. The board’s final motion incorporated the counsel-suggested language adding timing and repayment safeguards and directed the auditor, county counsel and the executive office to refine the resolution language as needed.

Board members and staff discussed other protections and practices: Gevison said department heads must notify her office and the CEO when they anticipate larger cash-flow issues and that her office will monitor negative balances and apportion interest costs appropriately. She said some counties use revolving lines of credit for transportation projects; she and DeShield said they will explore that option for future “mega projects.” DeShield described several recent and upcoming projects, including corrective maintenance and bridge projects such as Ackerman Creek and Lambert Lane, which he said have grown in scale compared with earlier years.

Public comment: A member of the public, Dee Lisonbee (District 5), asked whether the Transportation Department had fallen behind on Caltrans claims; Director DeShield and Deputy Director Alicia Winaker said reimbursement claims can lag because contractors must be paid first and the county then submits reimbursement requests, producing inherent timing delays.

Votes at a glance: The board approved the resolution as amended. Supervisor Williams moved the motion; Supervisor Klein seconded. Roll-call votes were recorded as follows: Supervisor Norvell—yes; Supervisor Williams—yes; Supervisor Klein—yes; Supervisor Mulhern—yes; Supervisor Haschak (Chair)—yes. The motion carried unanimously.

Next steps: The board approved the resolution with the counsel-sponsored timing language and directed county counsel, the executive office and the auditor-controller to further review and bring any refinements back to the board. Gevison said her office will increase outreach to department fiscal staff and monitor department cash flow more closely to reduce the need for future temporary transfers.