HomeMy WebLinkAboutStaff Report 15 06/18/2001 CITY OF PETALUMA, CALIFORNIA
AGENDA BILL 'JUN 1 $ 2001 1
Agenda Title: Meeting Date:
Resolution of the City of Petaluma authorizing the City`:Manager June 18, 2001
rid City Treasurer to sign Promissory Notes for Interfund Loans
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Department: Director: Contact Person: Phone Number:
Finance William J. Thomas William J. Thomas .778-4352
Cost of Proposal;None Account Number: NIA
Amount Budgeted: N/A Name of Fund: N/A
Attachments to Agenda PacketItem:
Resolution
Interfund Loan Promissory Notes
Summary Statement: The City Council approved Resolution. 00-113 N.C.S. which adopted an
Interfund Loan Policy. This Policy sets forth the guidelines,for loans between,funds when the need for
temporary borrowing between finds is required. The Resolution approved a policy, which provides
authority for the Finance Director to approve and repay short-termlinterfund loans (6 months or less).
Loans exceeding that amount require authorization from' the+City Manager (6 months to one year) and
further authorization by the City Council if the loan is for one`year or more.
As of June 30, 2000, there were seven (7) interfund loans that met these criteria and were not exempt
under the Interfund Loan Policy. Sinceathattime, two have been paid off and five promissory notes have
iieen prepared forCouncil consideration:
Council Priority: THIS AGENDA ITEM'IS4CONSIDERED To BE PAWL OF, OR NECESSARY To, ONE OR
MORE OF THE 1099-2000 PRIORITIES ESTABLISHED BY THE•CITY COUNCIL ON JANUARY 30, 1999
AND MARCH 18, 2000
Priority(s): .
Recommended City cCouncil.Action/Suggested Motion Adopt the,Resolution
Adopt the Resolution authorizing the City Treasurer and the City Manager to sign the Interfund Loan
Promissory-Notes
Reviewedby Finance:Director:' Reviewed b Ci Attorne : A' 'rov„ s Cit Mana'er:
bi-ITIL. I _ 0 C . 41
Date: �' Date:Aide Today's D. e: Revision# an rl]Ithj evised: r ° de•
May 29, 2001 # agg`e!!interfund loan promissory notes
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CITY OF PETALUMA, CALIFORNIA
JUNE 18, 2001
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AGENDA REPORT
• FOR •
RESOLUTION AUTHORIZING THE CITY MANAGER AND CITY TREASURER TO
SIGN INTERFUND LOAN PROMISSORY NOTES
1. EXECUTIVESUMMARY:
The City Council approved,Resolution 00-113 N.C.S: which adopted an Interfund.Loan..Policy.
This Policy sets forth the guidelines for loans between funds when the need for temporary
borrowing between funds is required. The Resolution approved a policy, which provides
authority for the Finance Director to approve and repay short-term interfund loans (6 months or
less). Loans exceeding that amount require authorization from the City Manager (6 months to
one year)Sand further authorization by the City Council if the loan is for one year or more.
As of June 30, 2000, there were seven (7) interfund loans that met these criteria and were not
exempt under the Interfund Loan Policy. Since that time, two have been paid off and five
promissory notes have been prepared for Council consideration.
2. BACKGROUND:
Resolution No 00-113 N.C.S. requires that the City Council authorize the City Manager,by
resolution, to sign promissory notes for Interfund Loans as per the policy that was!,'approved.on
June 26, 2000. These promissory notes are,prepared and updated as the result of the audited
financial statements each year. At June 30,2000 the following notes were outstanding: •
Receivable Fund Payable Fund FY of Loan Loan Amount
General Fund Airport 1997 $ 201,500 .
General Fund Marina 1998 34,000
Home/Begin CDBG 2000 52,200
Community Facilities Fees General Fund 1993 225,700
Water Utility Airport 1996 77,284
Water Pollution-Control Airport 1996 43,290
PCDC - Comm. Dev. Project Area Marina 1999 966,700
PCDC - Comm. Dev. Project Area PCDC - Central Bus. Proj. Area 2000 116,000
1,716,674
The loan between Home/Begin and CDBG is not covered under the Interfund Loan,Policy. The.
loan between the Community Facility.Fee fund and:the General Fund has been,repaid. The same
is true',for the loan between PCDC Community Development Project Area and the-PCDC Central
Business District Project Area. Promissory notes are included for theremaining-loans,.,as
follows:
a. The General Fund loan to the Airport Operations Fund, currently in-the amount of •
$179,029: This loan was for cash flow in the Airport Operations fund.
b. The General Fund loan to the Marina Fund, cun-ently.in the amount of was
used to fund cash flow.
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c. The $66;480.17 loan from Water to Airport Operations was used to finance the water
lines to the Airport.
d. The $37,238:21 loan from Water Pollution Control to Airport Operations was used to
finance the sewer lines to the Airport.
• e. The$1,274,685 loan"rein.PCDC to the Marina wasaused to pay loan payments.
The loan amounts tha t are due at;this time differ from:the•financial statement loan:amounts since
accumulated interest has been added to the loan_amounts!,and'brought up-to-date subsequent to
the year-end statements. The Airporthas made principal payments>subsequentto;year-end in the
amount of$10,804:tothe Water-fund, $6,052 to the Water Pollution.Control fund and $80;000 to
the General Fund, which has treduced their loan amounts. Calculations of these amounts are
available in the Finance Department:
Cash is pooled for investment purposes,and interest is allocated to these funds on,a quarterly
basis. Because of cash flow needs,,somefunds require that their cash needs be temporarily
covered with cash from other funds. The Interfund Loan Policy-provides for this situation by
permitting the Finance Director,fo make temporary loans between funds for periods not to exceed
six months. If the situation'appears that it will exceed six months;the City Manager is advised
and he is authorized to approve loans for,periods not to exceed twelve months. During the audit,
each existing interfund loan will be analyzed to determine whether it will be paid back within
one year. Those that will not twill be•reported to the Council for;authorization to enter into a
long-term repayment agreement. This report, in the future; will be completed in January of each
year.
• Currently the only interfund loan that appears will meet this.criteria'at June 30, 2001 is the loan
between the Community Development:Project Area and the CentralBusiness District Project
Area. At March 31, 2001 the Central Business District Project Area had a negative cash balance
of$8,946, which was being funded by cash from the Community Development Project Area. As
of May 29, 2001 this amount has risen to•$59,014. All other funds had positive cash balances at
March3l, 2001.
3. ALTERNATIVES:
Do not adopt.Resolutioniauthorizing.;the City Manager to!sign promissory:notes for the
existing interfund loans
4. FINANCIAL IMPACTS: None
5. CONCLUSION: Resolution No. 00-113 N.C.S. requires that.the Council authorize the
City Manager to sign promissory notes for interfund loans that are outstanding: Currently there
are five (5) interfund loans that require a promissory note.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL
INDENTIFY.SUCCESS OR"COMPLETION: Successful completion'ofthe
promissory notes
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r. RECOMMENDATION: Adopt the resolution.
• s:/agenda/interfundpromissory,notes
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1 Resolution No. N.C.S.
2 of the City of Petaluma, California
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4 AUTHORIZING THE CITY MANAGER TO SIGN PROMISSORY
5 NOTES FOR.INTERFUND:LOANS
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7 WHEREAS,the City Council adopted an Interfund Loan policy as part of Resolution No 00-
8 113 N.C.S., and
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10 WHEREAS„this°policy requires that the City Manager obtain City Council-authorization-to
11 enter into interfund loans of one year or more, and
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13 WHEREAS, the City currently has-five outstanding loans between funds (interfund loans) as
14 follows:
15 1. Loan from the General Fund to the Airport Fund in the amount of$259,029,
16 2. Loan from the.General Fund to the Marina Fund in'the amount,of$55,557,
17 3. Loan from the Water Fund to the,Airport Fund'in the amount of$66,480.17,
18 4. Loan from the;Water.Pollution Control Fund to the Airport Fund in the amount of
19 $37,238.21, and
20 5, Loan from the Petaluma.Community Development Commission to the Marina Fund in
21 the amount of$1,274,685.
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23 NOW, THEREFORE BE IT RESOLVED, that the City Manager is authorized to sign,
24 Promissory.Notesforthe Interfiind Loans as+specified in this Resolution..
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32 U nder:the power:and authority conferred upon this.Council by the Charter of said City:
33 REFERENCE: I hereby certify the foregoing Resolution was'introduced`and adopted by the
34 Council of the City of Petaluma ata Regular meeting on 2001 Approved as to
35 by the following vote: form:
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38 City Attorney
39 AYES:
40 NOES:
41 ABSENT:
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43 ATTEST:
44 City Cleric Mayor
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46 Resolution No. NCS`
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CITY OF PETALUMA, CA
PROMISSORY NOTE FOR INTERFUND LOAN
• ThisProniissory Note (Note);;;for an Interfund Loan is entered into as of January 31;•_2001; by and
between 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,dacting for the City Council,in implementation of the
directives and authority of Resolution`Number 00-113,adopted on June 26, 2000.
1. The Treasurer shall-transfer to,the Airport•OperationsFund, from the General Fund, such
amounts as the City Manager shall direct from time to'time,.not to exceed,the total sum of
One Hundred and Fifty=Nine Thousand.andTwenty-Nine.dollars ($179;029.00)
2. The Treasurer, as custodian,of the funds;;agrees to•promptly repay any sums advanced
hereunder, with interest at the rate of that earned by the City Treasurer's Investment
Portfolio (variable%)per;annum, on any unpaid;balanceiuntilpaid, from funds that are
hereafter available;for"such repayment: In any event, all such funds advanced by one fund•
to another fund shall be repaid,with-interest;asfunds become available.
3. This Note is subject to the terms of City;of Petaluma-Resolution Number 00-113, which is
incorporated herein and,made a part hereof by-reference.
Executedas of the date.;first.above written.
CITY OF PETALUMA, CA
• BY
'City Treasurer
BY
• City Manager
Approved as toform this day of , 20
City Attorney
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CITY OF PETALUMA,,CA
PROMISSORY NOTE FOR':INTERFUND LOAN
This Promissory Note (Note) for an.Interfund Loan is entered into asiofJanuary'31, 2001, by an
between the City Treasurer of the City of Petaluma, acting as custodian ofthe 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 Number,00-113,..adopted on June 26,2000.
1. The Treasurer shall transfer to the Marina Fund,from the General Fund, such amounts as
the City Manager shall direct from time;to time, not to exceed the total,sum_of Fifty-Five
Thousand Five Hundred and Fifty-Seven dollars ($55,557`00)
2. The Treasurer, as custodian of the funds, agrees to promptly repay any sums advanced
hereunder,with interest at the rate of that earned by the City Treasurer's Investment
Portfolio (variable%)`per'annum,,on any unpaid balance until paid,from funds that are
hereafter available for suchrepayment: In any event, allsuch fiindsadvanced by one fund
toanother fund,shall'be repaid, with"interest, asfunds become available:
3. This Note_is;subject to the terms of City of Petaluma Resolution,Number 00L113, which is
incorporated herein and made a part!hereofby reference.
Executed as of the date first above written
CITY'OFPETALUMA,.CA
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BY
City Treasurer
BY
City Manager
Approved:asto form this day of , 20
City Attorney
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CITY OF PETALU1%IA, CA
• PROMISSORY NOTE FOR INTERFUND LOAN
This Promissory Note (Note) for,an Interfund Loan is{entered into•as of April 1„:2001, by and
between the CityTreasurer'of the City of Petaluma, acting as custodian-of the fluids of the City,of
Petaluma, and the City Manager of the City, acting for the:City:Council inaintilementation of the
directives and authority of Resolution Number 00-113, adopted on Jurie 26, 2000.
1. The Treasurer shall transfer to.the Airport Operations Fund, from the Water Utility Fund,
such amounts as the'City Manager,shall direct from time.to time, not to exceed the total sum
of Sixty!Six Thousand, Four Hundred and Eighty dollars,,and Seventeen cents
($;66 480.17).
2. The Treasurer, as custodian of tlie>funds, agrees-to promptly repay any sums advanced
hereunder, with interest"atithe;rate of that eamed'by the City Treasurer's Investment
Portfolio (variable%')'per annum,on any unpaid balance until paid,;from funds that are
hereafter available for<such,repayment. In any event,_all such,funds advanced by one fund
to another fund shall be repaid,with interest' ,,per the attached schedule. The principal
payments are due annually--ion June 30th with<the=final pay-merit due on Jfine•'30, 2006.
3. This Note'is;subject(to'the terms of.City of=Petaluma Resolution Number 00-113, which is
incorporated herein and made apart hereof by reference.
Executed as of the date first above written
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CITY OF PETALUMA„CA
BY
City Treasurer
BY
City Manager
Approved as to.forriLthis, dayof' , 20
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City'Attorriey
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PRINCIPAL,PAYMENT SCHEDULE
Promissory Note,dated Apri1,1, 2001
To Water Utility:Fund from Airport OperationsT'und
Due Date Principal Amount
6/30/2001 10,804.00 PAID 4/1/01
6/30/2002 11,560.28
6/30/2003 12;369.50
6/30/2004 13 235 36
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6/30/2005 14,161.84
6/30/2006 15153.19
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CITY'OF PE-TALUIVIA, GA
This P.romisso Note o ROoMIaSnSOR�d oanFOR,t NedEntoFas oif A i
?1' :) p 1 1,":200-1,,byand
between the City:Treasurerof theaCity of Petaluma,,acting as'custodiah of the fundstof 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:Number 1001 13, adopted"on June 26;,2000.
I. The Treasurer•shall;transfertoi:the.Aiport Operations Fund, from the Water'Pollution
Control Fund„such amountseas'the City'Manager shall direct from time to,time, not to
exceed:the total sum of Thirty"'`Seven.Thousand, Two Hundred and:Thirty-eightdollars, and
TWefity.one cents;($37;23&21):,
2. The Treasurer,,as custodian of,the"funds, agrees;tto'promptlyrepay anyisums advanced
hereunder,with interestat'the'rate of that earned by the City Treasurers Investment
Portfolio:(variable%);per annum, on any unpaid'balance,until paid,from°funds that,are
hereafter,available;for such repayment. In any event, all such-funds advanced by one fund
to,,another"fund shall;be"repaid,-with interest,;per the attached schedule The,principal,
payments are due annually'on•Jnne30th'With tht final paymentdueon Jurie'30, 2006.
:3, This Note:isisubject;tothe ternis ol'City of Petaluma:Resolution Number 00-113, which is
incorporated herein and made a'parthereof by-reference.
Executed as:of the date first above`written
•' CITY OF PETALUMA, CA.
BY
City Treasurer
BY
.city Manager
Approved as to form this day.of ;;20
',City:Attorney
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PRINCIPAL PAYMENT SCHEDULE
Promissory.Note;dated April 1, 2001
To Water Pollution Control.Fund:from PYirport:Opeiations Fund
DUeDate Principa1:Amount.
6/30/2001 6;051.76 PAID 4/1/01
6/30/2002 6;475.39'
6130/2003 0;928.66'
6/30/2004 7;413.67'
6/30/2005 7,932.63
6/30/2000 8;487.86
CITY OF PETALUMA, CA
• PROMISSORY NOTE FOR INTERFUND LOAN
This Promissory Note (Note)^fonan,Interfund Loan is entered:into as of January 31, 2001, by and
between 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 Number 00-113, adopted on June 26, 2000.
1. The Treasurer shall'transfer'to the Marina Fund, from the Petaluma Community
Development Project Area Fund, such amounts as the City Manager shall direct from time
to time, not to exceed the total sum of One,Million, Two Hundred Seventy Four Thousand,
Six Hundred and Eighty-five dollars (S. 1,274,685)..
2. The Treasurer,as custodian of the funds, agrees to promptly repay any sums advanced
hereunder, with interest at the rate of that earned by the City Treasurer's Investment
Portfolio (variable%) per annum, on,any unpaid balance until paid, from funds that are
hereafter available for such-repayment. In any event, all such funds advanced by one fund
to another fund shall be repaid,'with interest, as hinds become available.
3. This Note is subject to the terms of City of Petaluma Resolution Number 00-113, which is
incorporated herein and made a part hereof by reference.
Executed as of the date first above written
• CITY OF PETALUMA, CA
BY
City Treasurer
BY
City Manager •
Approved as to form this day of , 20
City Attorney
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