(16)AR 050509 Short Term Loan - Laserfiche WebLink

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Estimated Revenue FYE 6-30-09 $ 5,878,468 Estimated Expenses FYE 6-30-09 $ 8,586,657 ** Less Bond Reimbursement $ 1,361,701 Tot Expns Less Bond Reimb: $ 7,224,956 Net Income(Loss): $(1,346,488) REMAINING PAYMENTS Remaining Portion Bond Pymt $ 474,168 Lease Payment $ 870,000 Allocations $ 186,822 Well 16 & Well 22 Pump Repairs $ 140,000 Well 15 - Replace Motor $ 7,000 Booster Station #2 Repair $ 20,000 Estimated May 2009 & June 2009 Expenditures $ 664,203 Total Estimated Remaining Payments: $ 2,362,193 ** NOTE: The $2,362,193 is included in above figure of $8,586,657 Staff will utilize the Local Agency Investment Fund (LAIF) interest rates to calculate the loan payments and the water utility will make interest only payments through the end of the fiscal year of June 30, 2010 with the anticipation of paying off the loan within eighteen months. The water fund is owed $2.073 million plus interest from the West Valley Project Area and with the Agency Board's approval of a bond issuance which staff is currently working on, it is anticipated that the water utility will be paid back this said amount at which time the loan amount will be paid back in full. If the bond issuance is not a viable option, staff will begin budgeting a loan repayment from the West Valley project area beginning with fiscal year 2009- 10. The loan terms were discussed with the City Treasurer and City Manager who have approved the presentation of this report to the City Council and Colton Utility Authority for approval. FINANCIAL IMPACT The fiscal impact of this loan is detailed in the discussion analysis of the staff report. The interest payments on this loan will be paid semi-annually in January and June till such time that the loan is paid in full. It is anticipated that the loan period will not exceed eighteen months. ENVIRONMENTAL IMPACT N/A RECOMMENDATION Staff recommends that the City Council: (1) approve a loan of $1,400,000 at the LAIF rate (currently 1.91%) from the City's Wastewater Fund to the Water Fund to be repaid in full within eighteen months, unless formally extended by the City and Utility Authority; and (2) authorize the Mayor to execute the loan agreement in a form approved by the City Treasurer, City Manager, Finance Director and City Attorney. That the Colton Utility Authority Board review, ratify and to the extent necessary, direct that the City Council take the above action(s). Prepared by: Eva Elias/Dilu De Alwis, Sr. Utilities Financial Analyst/Director of Finance REVIEW TEAM ONLY City Attorney: J� City Manager: ! Finance Director: OTHER: