Res 17-069 RESOLUTION NO. 17-069
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, AUTHORIZING AN INTERFUND
LOAN FROM THE GENERAL FUND TO THE WATER
FUND IN ACCORDANCE WITH THE CITY DEBT
MANAGEMENT POLICY
WHEREAS, the City of Poway maintains separate funds for the operation of the
City's water and sewer systems in accordance with governmental accounting standards;
WHEREAS, on January 12, 2016, the City Council adopted Resolution 16-001 to
1) suspend for customer type Single Family Residential a portion of the Drought
Recovery Charge by application of a credit equal to the $0.75 per unit charge for the
first twenty-two units of potable water registered through the customer 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 way of one or more loans
from the City's general fund for an amount(s) not to exceed the customer account
credits;
WHEREAS. as provided for and consistent with 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 the desired Water Operating Fund balance;
WHEREAS, the City General Fund has the capacity for funding an interfund loan
to the City Water Fund for an amount sufficient to meet the shortfall resulting from the
surcharge credits; and
WHEREAS. the City Council authorized 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 was equal to the customer Drought
Recovery Charge credits issued through June 30, 2016.
NOW, THEREFORE, BE IT RESOLVED by the City 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 2016-17 from the City General Fund (100) to the
City Water Fund (510), in the amount of $537,622, which is equal to the customer
Drought Recovery Charge credits issued through December 31, 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.
Resolution No. 17-069
Page 2
Section 3: The Loan interest rate shall be equal to the rate of return for a three-
year Treasury security at the time the transfer of funds is authorized by the City
Manager.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway,
California, at a regular meeting this 7th day of November 2017.
-3teve Vaus, Mayor
ATTEST:
sow /time
`Nanpy Neufek3, MC, City Clerk
STATE OF CALIFORNIA )
SS
COUNTY OF SAN DIEGO )
I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify under
penalty of perjury that the foregoing Resolution No. 17-069 was duly adopted by the
City Council at a meeting of said City Council held on the 7th day of November 2017,
and that it was so adopted by the following vote:
AYES: CUNNINGHAM, GROSCH, MULLIN, LEONARD, VAUS
NOES: NONE
ABSENT: NONE
DISQUALIFIED: NONE
L/ate
Natty�M1leufel� City Clerk
City of Poway