HomeMy WebLinkAboutReso 1995-18074 RESOLUTION NO. 18074
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING CASH ADVANCES FROM THE TRUNK
SEWER CAPITAL RESERVE FUND TO VARIOUS
REDEVELOPMENT AGENCY FUNDS AND FROM THE
EQUIPMENT REPLACEMENT FUND TO THE CENTRAL GARAGE
FUND
WHEREAS, over the last few years the available cash in various city/agency funds has
been depleted beyond a zero balance; and
WHEREAS, this, in effect, is an unrecorded, interest-free loan against all other
city/agency funds; and
WHEREAS, in addition, funds with positive cash balances are earning less interest
revenue than warranted due to this practice; and
WHEREAS, as of September 25, 1995, there were twenty-two different Funds with
deficit cash balances totaling approximately $5.7 millions; and
WHEREAS, it is recommended that we move towards returning all funds to a positive
cash balance as soon as practical and implementing strict controls to not allow any
transaction against any cash account which would reduce it below zero; and
WHEREAS, the central garage is accounted for as an Internal Service Fund and as
such, expected to recover all costs through charges to other city funds, primarily the General
Fund,
NOW, THEREFORE, BE IT RESOLVED that the current cash deficit in the Central Garage
be eliminated through an advance from the Equipment Replacement Fund in the maximum
amount of S550,000, commencing as set forth adjacent thereto, which indebtedness shall
be repaid on demand by the city, given the reasonable demands that such Equipment
Replacement Fund may have for cash requirements, but as aggressively as the resources of
the Central Garage Fund permit. Said indebtedness shall bear interest, as of the date set forth
adjacent to the fund named, compounded monthly, at the city's average yield on its
Investment Pool earnings, determined quarterly by the Finance Director:
BE IT FURTHER RESOLVED that the City Council and the Redevelopment Agency does
hereby jointly authorize, acknowledge and consent to the existence of an indebtedness of the
Agency to the city's Trunk Sewer Capital Reserve Fund in the maximum amounts as set forth
adjacent to each Project Area Fund below (" Funds", jointly herein), commencing as of the date
set forth adjacent thereto, which indebtedness shall be repaid on demand by the city acting
for the benefit of the Trunk Sewer Capital Reserve Fund given the reasonable demands that
such Trunk Sewer Capital Reserve Fund may have for cash requirements, but as aggressively
as the resources of the Project Area Funds permit given a rational allocation of the resources
of the Funds between the bonded debt service requirements of the Funds, which shall have
priority, the operational requirements of the Funds, and the repayment of the indebtedness
herein acknowledged. Said indebtedness shall bear interest, as of the date set forth adjacent
Resolution 18074
Page 2
to the Fund named, compounded monthly, at the city's average yield on its Investment Pool
earnings, determined quarterly by the Finance Director:
Date of Interest
RDA-Town Centre II ......... ~1,700,000.00 10/10/95
RDA-Southwest ............ 850,000.00 10/10/95
RDA-BayfrontFFown Center I . . . 1,000,000o00 10/10/95
· Central Garage Fund ........ 550,000.00 10/10/95
Total ............... ~4,100,000.00
Robert Powell oogaard ~
Finance Director City Attorney
I ' T · '71 'T
Resolution 18074
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 21st day of November, 1995, by the following vote:
AYES: Councilmembers: Alevy, Moot, Horton
NAYS: Councilmembers: Padilia, Rindone
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
S~orton, Mayor
ATTEST:
Beverly ~. Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 18074 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 21st day of
November, 1995.
Executed this 21 st day of November, 1995.
Beverly/~Authe'let, City Clerk ~