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HomeMy WebLinkAbout8584RESOLUTION NO. 8584 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS AUTHORIZING THE FORGIVENESS OF THE INTERFUND LOAN BETWEEN THE CITY'S PUBLIC FACILITIES FUND (251) AND THE CITY'S GENERAL FUND (101) RELATED TO REPAYMENT OF 2003 CERTIFICATES OF PARTICIPATION FOR CERTAIN PUBLIC INFRASTRUCTURE IMPROVEMENTS REFUNDED IN 1993 WHEREAS, the City issued Certificates of Participation in 2003 to refund borrowings from 1993 that financed certain projects related to the acquisition and construction of the corporate yard, Fire Station 263, a two-story parking garage in downtown, and certain improvements to the A. K. Smiley Library; and WHEREAS, as part of the provisions of the 2003 refinancing, payment of the debt service on the Certificates of Participation was to be evenly split between the General Fund and the Public Facilities Fund (50% and 50%, respectively); and WHEREAS, during certain years the Public Facilities Fund did not have sufficient revenue to cover its portion of the debt service related to the 2003 Certificates of Participation because such revenue was linked to the economic cycles and building activity that affected the amount of development impact fee revenue generated in the fund; and WHEREAS, revenue currently collected in the Public Facilities Fund is intended to provide a funding mechanism for new public infrastructure and facilities required to serve new development in the community; and WHEREAS, the nature of the projects previously financed under the 2003 Certificates of Participation are duly recognized as appropriate and proper obligations of the General Fund; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows: Section 1. The City Council hereby determines that approval of this Resolution is exempt from further environmental review pursuant to Sections 15061(b)(3) of the California Environmental Quality Act guidelines as approval of this resolution will not cause a direct physical change to the environment, nor a reasonably foreseeable indirect physical change to the environment. Section 2. The City Council hereby authorizes the forgiveness of the Interfund Loan between the City's Public Facilities Fund (251) and the City's General Fund (101), and accordingly, the City's financial accounting records will reflect a decrease in Advances Receivable in the General Fund of $7,690,541 and a decrease in Advances Payable in the Public Facilities Fund of the same amount. Section 3. This Resolution shall take effect take effect immediately upon its adoption. 1 I:\Resolutions\Res 8500-8599\8584 Interfund Loan Forgiveness 251 101.docx-ms ADOPTED, SIGNED AND APPROVED this 7tl' day of May, die Tejeda, Mayor ATTEST: e Donaldson, City Clerk 2 I:\Resolutions\Res 8500-8599\8584 Interfund Loan Forgiveness 251 101.docx-ms 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 7th day of May, 2024, by the following vote: AYES: Councilmembers Davis, Guzivan-Lowery, Saucedo; Mayor Tejeda NOES: None ABSENT: Councilmember Barich ABSTAINED: None e Donaldson, City Clerk 3 I:\Resolutions\Res 8500-8599\8584 Interfund Loan Forgiveness 251 101.docx-ms