The Stanislaus County Board of Supervisors on Feb. 3 approved a measure allowing the Auditor‑Controller to provide a temporary loan of up to $72,794 to the Crows Landing Community Services District during the 2026 fiscal year to help the district manage cash‑flow shortages.

The item was approved as part of the board’s consent calendar.

The loan, authorized under California Government Code Section 23010, represents 85% of the district’s projected revenue for the year. It is intended to ensure uninterrupted operations, including essential water services and planned water line repairs. The district’s board adopted a resolution in November designating the county treasurer as its treasurer and formally requested the loan in a Jan. 27 letter to supervisors.

County officials noted that the district must first deposit its funds into the county treasury before any loaned money can be issued. As of Jan. 29, the Treasurer‑Tax Collector reported that the required deposits had not yet been made. Once the funds are deposited, the Auditor‑Controller will monitor the district’s cash flow to ensure it does not exceed the authorized loan amount. Loan proceeds may only be used for maintenance and operational expenses.

Under state law, the district must repay the loan from available revenues before paying any other obligations. If the balance is not fully repaid by the end of the fiscal year, the county will not approve any district payments in 2027 until the loan is satisfied.

County staff said the district recently adopted a rate increase that will take effect in February and is expected to improve its financial position. The loan carries interest based on the average rate of return in the county treasury, and no impact to the county’s general fund is anticipated.

Temporary loans of this type require annual review and approval by the Board of Supervisors.