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2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />RESOLUTION NO. R-140-07 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON <br />AUTHORIZING THE LOAN OF FUNDS FROM THE CITY'S WASTEWATER <br />FUND TO THE WATER FUND <br />WHEREAS, the City of Colton (the "City") has a number of special funds separate and apart <br />from its general fund; and <br />WHEREAS, in particular the City maintains separate enterprise funds for its water and <br />wastewater operations; and <br />WHEREAS, there are funds available in the wastewater fund for loan and investment; and <br />WHEREAS, the City desires to loan monies from the wastewater fund to the water fund. <br />BE IT NOW THEREFORE RESOLVED AS FOLLOWS: <br />1. The City Council hereby approves a loan of funds in the amount of two million dollars <br />($2,000,000) from the City's wastewater fund to the City's water fund. <br />2. The City Council hereby orders that the loan from the wastewater fund identified in <br />Section 1 of this Resolution shall be secured by a Promissory Note which is attached hereto as <br />Exhibit "A" and incorporated herein by this reference. The City Council hereby authorizes the Mayor <br />to execute the Promissory Note on behalf of the City of Colton. <br />3 The City Council hereby orders that the loan from the wastewater fund identified in <br />Section 1 of this Resolution to the water fund shall be repaid as follows: <br />On or before December 31, 2008 the City shall cause the wastewater fund to be <br />repaid in the amount of two million dollars ($2,000,000) for the sum borrowed from <br />the wastewater fund, with principal and interest payable semi-annually on January 1, <br />2008 and June 30, 2008; provided, however, that the loan from the wastewaterfund <br />to the water fund shall become immediately due and payable if the City Council <br />determines that the money lent from the wastewater fund is needed to pay for <br />obligations of that fund as such obligations may arise by operation of fact or law. <br />The repayment of the wastewater fund from the water fund shall be subordinate to <br />existing debt and any future bonded indebtedness. <br />4 This resolution shall become effective upon its adoption. <br />PASSED, APPROVED AND ADOPTED this 16th day of October, 2007. <br />KELLY ASTAIN <br />Mayor <br />ATT T:�� <br />'CAROLINA R. PADILLA, CMC <br />City Clerk <br />