Cloverdale Unified authorizes zero-interest county line of credit to bridge Jefferson Early Education Project funding

The Cloverdale Unified School District Board of Trustees voted to request a fund transfer to establish a line of credit with the Sonoma County Office of Education to cover interim cash needs tied to the Jefferson Early Education Project.

Christa, introduced by staff to present the item, told trustees the district had already received about $6 million from the state for the project but expects additional state funding that has not yet arrived. "We just got our $6 million from the state but we still have several more million dollars to get from the state," Christa said. She described the county line of credit as a no-cost precaution that the district would open but not necessarily draw on: "All we're doing is asking you to open a line of credit... it doesn't cost us anything if we don't take any money." Trustees were told the county offers the line at 0% interest and the mechanism is intended as a stopgap to ensure payroll and bills can be paid if state reimbursements are delayed.

Trustee Garrison moved to approve resolution 226-02, requesting the fund transfer under the applicable provision of the state constitution and establishing the line of credit; the motion carried by voice vote with Trustee Candelaria absent. A trustee asked about repayment timing if funds are drawn; staff said the expectation is resolution during the fiscal year but did not provide a firm repayment schedule during the meeting.

Why it matters: The line of credit is intended to prevent short-term cash disruptions as the district advances a major capital project. Staff emphasized this is a temporary measure to bridge timing gaps in reimbursements rather than permanent borrowing.

Next steps: Staff will complete required paperwork with the Sonoma County Office of Education to open the line of credit; any future draw requests will come back to the board as required.