HomeMy WebLinkAboutPR - 36 Repayment of advances wastewater operating to connectionPOLICY RESOLUTION NO. 36
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF UKIAH ESTABLISHING THE POLICY FOR REPAYMENT OF ADVANCES
FROM THE WASTEWATER OPERATING FUND TO THE WASTEWATER
CONNECTION FEE FUND
WHEREAS, the City of Ukiah incurred debt, by contracting with the Association
of Bay Area Governments for issuance of revenue bonds; and
WHEREAS, the City of Ukiah is responsible for generating sufficient revenue to
fulfil its bond obligations; and
WHEREAS, the revenue for bond repayment includes fees and charges from a)
customers connected to the system, and b) fees for new connections; and
WHEREAS, the estimated revenue from new connections were projected to be
received on a pro rata basis over the thirty-year repayment period; and
WHEREAS, the connection fees are actually received irregularly from year to
year; and
WHEREAS, the monthly fees and charges for sewer service are the only source
of consistent revenue for the Wastewater Enterprise; and
WHEREAS, the City of Ukiah is committed to assuring connection fees ultimately
generate the proportionate share of revenue from which debt payments will be made;
and
WHEREAS, debt payments are required to be paid semi-annually.
NOW, THEREFORE, BE IT RESOLVED, that
1) When the City Capital Connection Fee Fund #620 has insufficient resources to meet its
debt payment obligation, a loan will be made from revenue received from City ratepayers
to eliminate the shortfall.
2) Interest will be added to the amount advanced from the time the advance is made until it
is repaid.
3) Interest will be calculated at the monthly average yield to cost of the City's managed
investment portfolio.
4) Money deposited in the City Capital Connection Fee Fund #620 will be used for the
following:
a. First, to make the current year debt payments.
b. Second, to pay accumulated interest on previous advances.
c. Third, to repay previous advances to the fund.
d. Fourth, retain for future bond payments.
5) Funds from the City Capital Connection Fee Fund #620, which repay interest and
advances from city ratepayers, will be deposited in the Rate Stabilization Fund. These
amounts deposited in the Rate Stabilization Fund are to be used to offset future rate
increases or to reduce rates.
6) Staff will present a report to the Council when funds are advanced to the City Capital
Connection Fee Fund #620. The annual budget will identify historic, projected and
proposed transactions related to this policy.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah
on the 21St day of July, 2010, by the following vote:
AYES: Councilmembers Landis, Baldwin, and Mayor Thomas
NOES: Councilmember Crane
ABSENT Councilmember Rodin
ABSTAIN None
APPROVED:
Benj Thomas Mayor
ATTEST:
d
Anne M. Currie, City Clerk
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SAAdministration\City Clerk\Policy Resolutions\ccitem7dl_072110.doc
