Loading...
HomeMy WebLinkAbout8259RESOLUTION NO 8259 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING A LOAN FROM THE CITY'S WATER FUND TO THE CITY'S GENERAL FUND WHEREAS, on December 17, 2013, the City Council approved Resolution No 7354 establishing an interfund loan policy; and WHEREAS, Resolution No 7354 requires that interfund loans established after the effective date of the policy be approved by the City Council, subsequent to review by the City Attorney and preparation of a resolution authorizing the loan, including specific loan terms, if applicable; and WHEREAS, the City Council has authorized the purchase of certain real property located at 300 East State Street, for sixteen million dollars ($16,000,000) upon completion of the due diligence period with an estimated closing date of September 30, 2021, and WHEREAS, the City's general fund will pay 87% of the cost of the purchase based on City staff's estimate that a commensurate amount of square footage will be occupied by general government operations, and WHEREAS, there is a slight timing difference in cash flows for the general fund, which depend on the funding land sale proceeds from the City's sale of Assessor's Parcel Nos. 0292-041- 08, -38, and-44-0000, the proceeds from which are anticipated to be available to the City during October 2021, and WHEREAS, if the purchase and sale agreement for Assessor's Parcel Nos 0292-041-08, -38, and-44-0000 fails to fund, the City may elect its option to issue a bond or other debt financing under Reimbursement Resolution No 8245, and WHEREAS, an interfund loan from the City's water fund to the City's general fund would offset the timing of the cash flows from each property transaction, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows Section 1. This Resolution is exempt from the California Environmental Quality Act (Public Resources Code section 21000 et seq) (" CEQA") pursuant to the State's CEQA Guidelines subsection 15060(c)(2) because the adoption of this Resolution will not result in a direct or a reasonably foreseeable, indirect, physical change in the environment, and State CEQA Guidelines subsections 15378(b)(2) and (4), because the adoption of this Resolution, does not constitute a " project" under CEQA, and therefore review under CEQA is not required. Section 2. The City Council hereby approves a loan from the City's water fund to the City's general fund, for a period not -to -exceed one (1) year, in the amount of four million five hundred thousand dollars ($4,500,000) at an annual interest rate equal to the State of California's 1 I:\Resolutions\Res 8200-8299\8259 Interfund Loan Water to General Fund 300 State St .docx local agency investment fund interest earnings during the quarter(s) in which the loan is fully and/or partially repaid ADOPTED, SIGNED AND APPROVED this 2 _ f September, 2021 Paul T Banch, Mayor ATTEST nne Donaldson, City Clerk I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 21 st day of September, 2021 AYES Councilmembers Tejeda, Davis, Guzman -Lowry, Mayor Banch NOES None ABSENT Councilmember Foster ABSTAINED None Donaldson, City Clerk