HomeMy WebLinkAbout2/16/2005 - STAFF REPORTS (19) DATE: February 16, 2005
TO: City Council
FROM: Director of Finance &Treasurer
REPAYMENT AND RELENDING OF LOANS FROM THE GENERAL FUND
RECOMMENDATION:
It is recommended that the City Council approve the following loan repayments and new loans (at
6% interest) from the General Fund, effective February 16, 2005.
Loan Repav New Loan
Merged Area#1 Debt Service $600,000
Merged Area#1 Capital Project $600,000
Merged Area#2 Debt Service $300.000
Merged Area#2 Capital Projects $300,000
SUMMARY:
This is a "housekeeping" item to transfer cash to the Merged Area#1 and #2 Capital Project Funds
from the Merged Area#1 and #2 Debt Service Funds, via a repayment of loans to and reloaning of
funds from the General Fund.
BACKGROUND:
State rules governing the City of Palm Springs' accounting do not allow transfers between project
areas or even between a single project area's debt service fund and capital projects fund. If a
project area's capital projects fund has a negative cash balance and its debt service fund has
positive cash balance, the simplest way to "transfer" cash between the two funds is to repay an
existing loan and make a new loan. That is the situation in the proposed budget amendment
resolutions.
The purpose of all these loans is to cover projected negative cash balances in the Capital Projects
Funds. The net indebtedness of the City of Palm Springs project areas remain the same. The net
effect on the General Fund is zero.
The attached resolutions amending the budget accomplish the necessary tracking to comply with
the accounting rules.
Thomas M. Kanarr
Director of Finance &Treasurer
APPROVED
David H. Ready
City Manager
Attachments: Resolutions
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA,AMENDING THE BUDGET FOR THE 2004-05
FISCAL YEAR.
WHEREAS Resolution 20973 approving the budget for the fiscal year 2004-05 was adopted
on June 9, 2004; and
WHEREAS the City Manager has recommended, and the City Council desires to approve,
certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record
inter-fund cash transfers as required in accordance with this Resolution, and that Resolution
20973, adopting the budget for the 2004-05 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
No. 001 12416 $600,000
General Fund Redevelopment
Agency Loans
Receivable
Purpose: New loan to Merged Area #1 Capital Projects to cover on-going costs.
SECTION 2. SOURCE Merged Area #1 is concurrently paying back $600,000 in
loans from the General Fund.
Fund Activity Account Amount
No. 811 29801 $600,000
Merged Area#1 Fund Balance
Capital & Admin
Adopted this day of 2005
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA,AMENDING THE BUDGET FOR THE 2004-05
FISCAL YEAR.
WHEREAS Resolution 20973 approving the budget for the fiscal year 2004-05 was adopted
on June 9, 2004; and
WHEREAS the City Manager has recommended, and the City Council desires to approve,
certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record
inter-fund cash transfers as required in accordance with this Resolution, and that Resolution
20973, adopting the budget for the 2004-05 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
No. 001 12416 $300,000
General Fund Redevelopment
Agency Loans
Receivable
Purpose: New loan to Merged Area#2 Capital &Admin Fund to cover on-going costs.
SECTION 2. SOURCE Merged Area #2 is concurrently paying back $300,000 in
loans from the General Fund.
Fund Activity Account Amount
No. 812 293 11 $300,000
Merged Area #2 Fund Balance
Capital & Admin
Adopted this day of 12005
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED