HomeMy WebLinkAbout2025-085 - Resolution RESOLUTION NO. 2025-085
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, APPROVING AN INTERFUND LOAN
FROM THE CITYWIDE INFRASTRUCTURE IMPROVEMENT FUND
(F198) TO PD-85 (F848) IN THE NOT-TO-EXCEED AMOUNT OF
$442,710, ESTABLISHING THE TERMS UNDER WHICH THE LOAN
WILL BE REPAID
WHEREAS, the City of Rancho Cucamonga ("City") manages the Neighborhood Park and
Recreation Improvement District No. PD-85. PD-85 was formed in 1985 and consists of single-family
homes, condominiums, multi-family units, commercial, industrial, and vacant properties. Property owners
pay an annual assessment of$31.00 to support the maintenance and capital costs of the Heritage Park
and the Red Hill Community Park; and
WHEREAS, the City is investing in the ongoing Pedestrian Bridge Replacement Project at the
Heritage Park. The bridges within Heritage Park support recreational activity and accessibility within the
park, and provide emergency services access during staging for major emergency events; and
WHEREAS, PD-85 currently lacks sufficient available cash to meet the expanded scope of the
Heritage Bridge Replacement Project while meeting any necessary operational reserve requirements.The
PD-85 fund does have sufficient projected annual revenue to meet the obligations associated with an
advance of funds over a ten-year period; and
WHEREAS, the City's Infrastructure Improvement Fund is also providing funds for the Heritage
Bridge Replacement Project and maintains adequate liquidity to support a temporary interfund advance;
and
WHEREAS, applicable Governmental Accounting Standards Board (GASB) guidance authorizes
temporary loans between City funds, provided such loans are made for specific purposes, bear a
reasonable rate of interest, and are repaid from legally available revenues; and
WHEREAS, the City's financial policies permit the use of interfund loans as a cash-Flow
management tool, providing the lending fund will not be adversely impacted and the borrowing fund
identifies a reliable repayment source and schedule; and
WHEREAS, the City Council finds it prudent to base the interest rate for interfund loans on the
Local Agency Investment Fund (LAIF) quarterly apportionment rate, which reflects the market yield of the
City's pooled investments and represents an equitable rate of return to the lending fund; and
WHEREAS, this temporary advance is intended to provide short-term liquidity to PD-85 pending
the receipt of future assessments or other dedicated revenues, and the repayment of principal and accrued
interest shall be completed within the period established in this resolution;
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Rancho Cucamonga,
California does hereby resolve on this 5'h day of November 2025, as follows:
SECTION 1: The facts set forth in the Recitals, Part A of this Resolution, are true and correct.
SECTION 2: The City Council hereby authorizes an interfund loan from the Citywide
Infrastructure Improvement Fund to the PD-85 Fund in the not-to-exceed amount of
$442,710 on the terms set forth in Part A of this Resolution. The interfund loan shall
be transferred from the Citywide Infrastructure Improvement Fund to the PD-85
Fund for use in its FY2025/26 operating budget.
Resolution No. 2025-085 —Page 1 of 2
SECTION 3: Repayment of the interfund loan shall be made on a quarterly basis over a period
not to exceed ten (10) years from the date of initial loan disbursement. Each
quarterly payment shall include both principal and accrued interest, calculated
based on the outstanding balance and current LAIF quarterly apportionment rate.
Early repayment shall be permitted without penalty.The borrowing fund shall ensure
sufficient annual budget appropriations to meet its scheduled repayment
obligations.
SECTION 4: The loan shall accrue interest at a variable rate equal to the Local Agency
Investment Fund (LAIF) quarterly apportionment rate as published by the California
State Treasurer's Office for each respective quarter. The applicable LAIF rate shall
be updated at the close of each calendar quarter and applied to the outstanding
principal balance for that period. Interest shall be computed on a simple interest
basis, consistent with the City's investment earnings methodology, and accrued
interest shall be payable on a quarterly schedule concurrent with principal
repayment.
SECTION 5: The Finance Department is hereby authorized to administer this interfund loan,
record the associated accounting entries, and adjust the quarterly interest rate in
accordance with the published LAIF apportionment schedule. The Finance Director,
or designee, shall monitor repayment compliance and report any material changes
or repayment delays to the City Manager and City Council.
SECTION 6: The City Clerk shall certify to the adoption of this Resolution.
Resolution No. 2025-085— Page 2 of 3
PASSED, APPROVED, and ADOPTED this 59^ day of November, 2025.
is Mittel, Ma e
ATTEST:
prfrb
im Sevy, City CI rk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF RANCHO CUCAMONGA )
I, Kim Sevy, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing
Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho
Cucamonga, at a Regular Meeting of said Council held on the 5th day of November, 2025.
AYES: Hutchison, Kennedy, Michael, Scott, Stickler
NOES: None
ABSENT: None
ABSTAINED: None
Executed this 61^ day of November, 2025, at Rancho Cucamonga, California.
Sevy, City C r
Resolution No. 2025-085 — Page 3 of 3