HomeMy WebLinkAboutReso 2009-137RESOLUTION NO. 2009-137
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE BUDGET FOR AN INTER-
FUND LOAN FROM THE TRANSPORTATION
DEVELOPMENT IMPACT FEE FUND TO THE PUBLIC
FACILITIES IMPACT FEE FUND, AND APPROPRIATING
FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2010
WHEREAS, due to the severity of the housing crisis, it is cleaz that the Public Facilities
Development Impact Fee (PFDIF) fund will be unable to meet its annual debt obligations for the
next few years; and
WHEREAS, in order to avoid an impact to the General Fund, the fiscal year 2009/2010
proposed budget includes aninter-fund loan from the Transportation Development Impact Fee
(TDIF) to the PFDIF fund for $5.3 million to make the debt service payments scheduled for
fiscal year 2009/2010; and
WHEREAS, this will provide the City an opportunity to work through a restructuring of
the PFDIF debt obligations with the objective of creating cash flow savings to meet debt
obligations over the next few years; and
WHEREAS, approving an inter-fund loan would alleviate the General Fund of having to
step in and pay the PFDIF debt obligation of $5.3 million and avoid a significant impact to the
General Fund reserves; and
WHEREAS, the inter-fund loan of $5.3 million would reduce the cash balance in the
TDIF fund by the same amount; and
WHEREAS, the funds would be paid back from the PFDIF over thirteen yeazs beginning
in fiscal year 2012/2013 at the interest rate available when the loan is posted (based on the
pooled fund rate); and
WHEREAS, based on the schedule of projects and anticipated timeframes for completion,
the inter-fund loan may delay TDIF projects from being constructed as planned; and
WHEREAS, if the PFDIF fund is unable to pay the inter-fund loan back to the TDIF fund
in a timely manner, then the General Fund would be obligated to pay the outstanding balance;
and
WHEREAS, the additional costs would be incorporated into the next PFDIF fee update;
and
Resolution No. 2009-137
Page 2
WHEREAS, the Finance Department will review the refunding and restructuring options
of the outstanding Certificates of Participation with the objective of providing long-term cash
flow relief; and
WHEREAS, the loan will not be processed in the full amount if there aze sufficient
savings from the debt refunding and restructuring and/or development increases and sufficient
revenues aze realized.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista
does hereby approve the budget for aninter-fund loan from the Transportation Development
Impact Fee fund to the Public Facilities Impact Fee fund.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista approves
the appropriation of funds for the fiscal year ending June 30, 2010.
Presented by
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Maria Kachadoorian
Director of Finance/Treasurer
Approved asto form by
Resolution No. 2009-137
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 9th day of June 2009 by the following vote:
AYES: Councilmembers: Bensoussan, McCann, Ramirez, and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: Castaneda
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~~~~ ~~
Cheryl Cox,/ ay r
ATTEST:
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Donna R. Norris, C C, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2009-137 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 9th day of June 2009.
Executed this 9th day of June 2009.
Donna R. Noms, CMC, City Clerk