Res 16-051RESOLUTION N. 1--01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, NIA, AUTH F IZING AN INTER FUND
LOAN FROM THE GENERAL FUND TO THE WATER
FUND IN ACCORDANCE WITH THE CITY DEBT
MANAGEMENT POLICY
WHEREAS, the City of Poway maintains s parat funds for the operation of the
City's -wait r and severer systems in accordance with govern ntarl accounting standards;
WHEREAS, on January 12} 2016, the City Council adopted Resolution 1 -001 to
1 suspend for customer type Single Family r I sid ntial a portion of the Drought
Recovery Charge by application of a credit equal to the $0.75 per unit change for the
first twenty-two units of potable water registered through the ustom r meter for a
period of twelve months, commencing with the first full billing cycle after January 1,
2016; and 2 to fund the shortfall resulting from the credit by a of one or more loans
from the City's general fund for an amount(s) not to d the customer account
cred its;
WHEREAS. as provided for and consistent Frith the City Financial Policy and
Debt Management Policy, City Council may authorize a loan from the General Fund
(100) to the Water Operating Fund (510), at the time deemed suitable, for the purpose
of maintaining tiro desired later Operating Fund balance; and
WHEREAS, the City General Fund has the capacity for funding an int rfund loan
to the City Water Fund for an amount sufficient to 'asst the shortfall resulting from the
surcharge credits.
NOW, THEREFORE, E, E IT RESOLVED by the Cit,r Council of the City of Poway
as follows-
Section 1. The City Council hereby authorizes the City Manager to process an
interfund loan (Loan) in fiscal Year 2015 -16 from the City General Fund (100) to the
City Water Fund (510), in the amount of $401,250, which is equal to the customer
Draught Recovery Charge credits issued through June 30, 2016.
Section 2. Repayment of the Loan principal and interest shall be made by the
close of Fiscal Year 2018-2019 unless the term is amended by subsequent resolution of
the City Council.
Section 3. The Loan interest rate shall be squad to the rate of return for ar three-
year Treasury security at the time the transfer of funds is authorized by the City
Manager.
Resolution No. 16-051
Page 5-
PASSED, ADOPTED AND, APPROVED by the City Council of the City of Poway,
California at a, regular meeting this 1 st day of November 2016.
. ......... ..
,Steve Vaus,, Mayor
Old�t`MC� City Clerk
STATE OF CALIFORNIA )
)SS
COUNTY OF SAN DIEGO )i
1, Nancy Neufeld, City Clerk of the City of Poway, California do hereby certify
under penalty of perjury that the foregoing Resolution No., 16-051 was duly adopted by
the City Council at a meeting of said City Council held on the 1st day of November
2016, and that it was so adopted by the following vote.
AYE& LEONARD, GROSCH, MULLIN, CUNNINGHAM, VAUS
NOES- NONE
Wm9mm
N6-ncyMed fed d`, Cm'C, City Clerk
City of Poway