County of Riverside Office of the An"\ fAUDITOR Auditor-controller I4jj Controller County Administrative Center County

The McCoy Wash Flood Improvement District (McCoy Improvement) was established in December of 1987 as part of PVRCD. On December 9, 1991, the district was split into two separate special districts by resolution of the PVRCD board of directors without obtaining the approval of LAFCO. This was done to accommodate McCoy Flood Control District (McCoy District) to establish the power to assess Blythe citizens within McCoy Wash area for construction of the dam. Arrangements were established with the County to collect these funds. The PVRCD does not have the authority to establish the McCoy District as a special district. The PVRCD, under provisions of Division 9 of the California Public Resources Code, does have the authority to form an improvement district for constructing, both in or for the improvement district, one of more flood prevention improvements, including structural and land treatment measures. The PVRCD resolution reads as follows: RESOLUTION OF THE BOARD OF DIRECTORS OF PALO VERDE RESOURCE CONSERVATION DISTRICT Whereas Palo Verde Resource Conservation District (PVRCD) has sponsored the creation of the McCoy Wash Flood Control District (McCoy), and furthermore that McCoy is now a separate Special District with a directorship concurrent to that of PVRCD and furthermore, that McCoy receives property tax revenues that are for the sole benefit of McCoy. Herewith be it resolved the Riverside County Auditor-Controller's Office is requested to establish a Trust type "fund" for McCoy (request attached) for the purpose of properly segregating McCoy revenues and expenses from those of PVRCD. This document was signed by the President and Secretary/Treasurer, who are also the current President and Secretary/Treasurer.