HomeMy WebLinkAboutAgenda Bill 06/25/2001 (29) CITY OF PETALUMA, CALIFORNIA
AGENDA BILL JUN 2 5 2001 13
Agenda Title: Meeting Date:
• Resolution of the City of Petaluma authorizing the City Manager June 25, 2001
id City Treasurer to sign Promissory Notes for Interfund Loans
Department: Director: Contact:Person: Phone Number:
Finance William J. Thomas William J. Thomas 778-4352
Cost of Proposal: None Account Number: N/A
Amount Budgeted: N/A Name of Fund: N/A
Attachments to Agenda Packet Item:
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 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) 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. Since that time, two have been paid off and five promissory notes have
been prepared for Council consideration.
Council Priority: THIS AGENDA ITEM IS CONSIDERED TO BE PART OF, OR NECESSARY TO, ONE OR
MORE OF THE 1999-2000 PRIORITIES ESTABLISHED BY THE CITY COUNCIL ON JANUARY 30, 1999
AND MARCH 18, 2000
Priority(s):
Recommended City Council Action/Suggested Motion : Ad'optthe Resolution
Adopt the Resolution authorizing the.City Treasurer and the City Manager to sign the Interfund Loan
Promissory Notes
Reviewed by Finance'.Director: Reviewed b Ci Attorne i. Approv- e y City Manager:
Date:
f Date:
C(2-Ci id Today's Da e: Revision # an t� . evised: 01'
:
May 29, 2001 #' e!!/interfund loan promissory notes
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1.
• CITY OF PETALUMA,'CALIFORNIA
JUNE 18, 2001
AGENDA REPORT •
FOR
RESOLUTION AUTHORIZING THE CITY MANAGER AND CITY TREASURER TO
SIGN INTERFUND LOAN PROMISSORY NOTES
1. EXECUTIVE SUMMARY:
The City Council approved Resolution 00-113 N.C.S. which adopted an.Interfund,Loari 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) and further authorization bythe.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 notcovered 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 the remaining 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, currently in the amount of$55,557 was
used to fund cash flow.
z
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 from PCDC'to the Marina was used to pay loan payments.
The loan amounts that 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 Airport has made principal payments subsequent to year-end in the
amount of$10,804 to the Water:fund,.$6 052 to the Water Pollution Control fund and $80,000 to
the General Fund, Which has reduced 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; some funds 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 to 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 deterinine Whether it will be paid back within
one year. Those that will not will be reported to the Council for authorization to enter into a
long-tenn repayment agreeinenf 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 Central.Business District Project
Area. At March 31, 2001 the Central Business Distric •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
March 31, 2001.
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3. ALTERNATIVES::
> Do not adopt Resolution authorizing 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 of the
promissory notes
7. RECOMMENDATION: Adopt the resolution.
s:/agenda/interfundpromissory notes
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3
Resolution No. N.C.S.
2 of the City of Petaluma, California
3
4 AUTHORIZING THE CITY MANAGER TO SIGN PROMISSORY
5 NOTES:EOR.INTERFUND;LOANS •
6
7 WHEREAS, the City Council adopted an Interfund Loan policy as part of Resolution No. 00-
8 113 N.C.S.,and
9
10 WHEREAS, this policy requires,that the City Manager obtain City Council authorization to
11 enter into interfund loanscof one year or more; and
12
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 tunic 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.
22 •
23 NOW, THEREFORE BE IT RESOLVED, that the City Manager is authorized to sign
24 Promissory Notes for the Interfund Loans as specified in this Resolution.
25 •
26 •
27
28
29
30
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32 • Under the power and authorityconferred upon this Council by the Charter of saidCity.
33 REFERENCE I hereby certify the foregoing Resolution was introduced and adopted by the
34 Council of the City of Petaluma at a Regular meeting on 2001 Approved as to
35 by the following vote: form:
36
37
38 City Attorney
39 AYES:
40 NOES:
41 ABSENT:
42
43 ATTEST:
44 City Clerk Mayor
45
46 Resolution No. NCS
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CITY OF PETALUMA, CA
• 1 ,PROMISSORY NOTE FOR INTERFUND LOAN
This Promissory 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, 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 Airport Operations Fund, 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 and Twenty-Nine dollars ($179,029.00)
2. The Treasurer, as custodian of the funds, agrees to promptly repay any sums advanced
hereunder, with intarest 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 funds become available.
3. This Note is subject to the terms of City of Petaluma Resolution Number 00-113, which is
incorporated hereinsand made apart 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
•
CITY OF PETALUMA, CA
PROMISSORY NOTE FOR-INTERFUND•LOAN •
This Promissory Note (Note) for 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 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 such repayment. In any event, all such funds advanced by one fund
to another fund shall be repaid, with interest, as funds becomefavailable.
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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CITY OF PETALUMA, 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 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 June26, 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
(5 66,480.17).
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,,allsuch.funds advanced by one fund
to another fund shall be repaid, with interest, per the attached schedule. The principal
payments are due annually on June 30th with the final payment due on June 30, 2006.
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
SExecuted 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 Utility Fund from Airport Operations Fund
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
6/30/2005 14,161.84
6/30/2006 15,153.19 •
•
S
CITY OF PETALUMA, 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 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 shalhfransfer to the Airport Operations•Fund, from the Water Pollution
Control Fund, such ainounts'as the City Manager shall direct from time to time, not to
exceed the total sum of Thirty Seven Thousand, Two Hundred and Thirty-eight dollars, and
Twenty-one cents ($ 37,238.21).
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_anyunpaid 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 June 30th with the final payment due on June 30, 2006.
3. This Note is subject tothe 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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PRINCIPAL PAYMENT SCHEDULE
Promissory Note dated April 1, 2001
To Water Pollution Control Fund from Airport Operations Fund
Due Date Principal Amount
6/30/2001 6,051.76 PAID 4/1/01
6/30/2002 6,475.39
6/30/2003 6,928.66
6/30/2004 7,413.67
6/30/2005 7,932.63
6/30/2006 8,487.86
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11111
CITY OF PETALUMA,.CA
PROMISSORY NOTE FOR INTERFUND LOAN
This Promissory 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, 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 ($ 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'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, as funds 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 PETALUNIA, CA
BY
City Treasurer
•
BY
City Manager
Approved as to form this day of , 20
City Attorney
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