HomeMy WebLinkAboutResolution 2018-019 N.C.S. 02/05/2018Resolution No. 2018 -019 N.C.S.
of the City of Petaluma, California
AUTHORIZING THE ESTABLISHMENT OF INTERFUND LOANS FROM
THE WASTEWATER UTILITY, WATER UTILITY AND RISK INTERNAL
SERVICE FUNDS TO THE EMPLOYEE BENEFIT FUND, IN AN
AGGREGATE AMOUNT NOT TO EXCEED $6,750,330 FOR THE
PAY DOWN OF THE PERS UNFUNDED LIABILITY
WHEREAS, the City Council desires to pay down the PERS unfunded liability for the
purpose of generating PERS savings for both the Miscellaneous and Safety Ca1PERS plans; and
WHEREAS, adequate funding does not currently exist in the Employee Benefit Fund
for the pay down of the PERS unfunded liability; and
WHEREAS, it is the policy of the City Council that interfund loans greater than one
year may be approved, provided that such loans are repaid in fifteen (15) years or less, and that
interest should be paid on such loans; and
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves
interfund loans from the Wastewater Utility, Water Utility and Risk Internal Service Fund to the
Employee Benefit Fund.
1. The interfund loans shall be formalized pursuant to a Promissory Note, attached
and incorporated herein as Exhibit A.
2. The loan amounts shall not exceed the following unless authorized by the City
Council:
Wastewater Utility $4,050,198
Water Utility $1,350,066
Risk Fund $1,350,066
3. Interest shall be charged at the rate of 1.75% per annum, and shall accrue annually;
except that, in no event, shall the rate of interest be less than the Local Agency
Investment Fund rate, calculated annually at the time the City's budget is prepared.
Resolution No. 2018 -019 N.C.S. Page 1
3. The first loan payment, including interest, shall be made during FY 18 -19, and
every year thereafter, in 15 equal installments, such that the entire principal and
interest shall be repaid on or before June 30, 2033, unless extended by the City
Council.
4. Payment of the full amount of principal advanced and any interest otherwise
unpaid shall be made no later than June 30, 2033, unless extended by the City
Council.
5. The City Manager and Finance Director /City Treasurer are hereby authorized to
execute the Promissory Note and any associated documents that may be
subsequently needed.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Appr d as to
Council of the City of Petaluma at a Regular meeting on the 5`h day of February
2018, by the following vote: i,
City A orney
AYES: Albertson, Barrett, Mayor Glass, Vice Mayor Healy, Kearney, King, Miller
Resolution No. 2018 -019 N.C.S. Page 2
EXHIBIT A
CITY OF PETALUMA, CA
PROMISSORY NOTE FOR INTERFUND LOAN
This Promissory Note (Note) for an interfund loan is executed as of February 5, 2018 by the City
Treasurer of the City of Petaluma, acting as custodian of the funds of the City of Petaluma, and
the City Manager of the City, acting for the City Council in implementation of the directives and
authority of Resolution No. 2018 -019 N.C.S., adopted on February 5, 2018.
1. The Treasurer shall transfer to the Employee Benefit Fund, from the Wastewater Enterprise
Fund, $4,050,198; Water Enterprise Fund, $1,350,066; and the Risk Internal Service Fund,
$1,350,066 for the pay down of the PERS unfunded liability.
2. Interest shall accrue annually, compounding monthly, beginning March 1, 2018, on the
principal sum at the rate of 1.75% per annum; that, in no event, shall the rate of interest
be less than the Local Agency Investment Fund rate, calculated annually at the time the
City's budget is prepared.
3. Payment of principal and all interest accrued shall begin on June 30, 2019, and shall be
made in 15 equal annual installments such that the entire principal and accrued interest
shall be fully repaid on or before June 30, 2033.
4. The full sum of the interfund loan including all principal and interest otherwise remaining
unpaid pursuant to this Promissory Note is due and payable no later than June 30, 2033.
The full sum or any partial payment of principal may be prepaid with no penalty.
5. This Note is subject to the terms of the City of Petaluma of Resolution No. 2018 -019 N.C.S.
Executed as of the date first above written
CITY OF PETALUMA, CA
By:
City Treasurer
City Manager
Approved as to form this day of 2018.
City Attorney
Resolution No. 2018 -019 N.C.S. Page 3