1 Donna Finch
Assistant to the City Manager
DECEMBER 7, 2022
INTERFUND LOAN
FOR LMD 84-2
ZONE 19
The Ask
That the City Council approve an Interfund Loan
Agreement for the City of Corona General Fund
110 to LMD 84-2 Zone 19 Fund 468 in the amount
of $166,548.
2 LMD 84-2 – Zone 19 ▷ Established in 1986
▷ Provides landscape
maintenance and operating
services within Zone 19
boundaries
▷ Includes 36.78 acres and 3,692
benefit units
▷ Annual assessment of $126.00
levied on each benefit unit to
pay for landscaping services
▷ Levy has not increased since XX
▷ Prop 218 ballot measure
required to increase levy
3 Challenges
4 Zone Acres Benefit
Units (BU)
Max Levy
per BU
FY22
Total Revenues
FY22
Total Costs Deficit FY22 Capital Reserve
FY22
Operating Reserve
19 36.78 3,692 $126.00 $466,151 $555,102 ($88,951) $0 ($66,548) ▷ LMD operating at a deficit due to
ongoing increases in labor and
maintenance costs
▷ New regulations on weed abatement,
mandated use of electrical equipment,
and drought restrictions
▷ Significant areas of missing landscaping
with no funds to replace it
Interfund Loan Agreement
▷ Loan from General Fund to
maintain current service level
standards in the short term
▷ Interest rate equivalent to Local
Agency Investment Fund (LAIF),
but no greater than 3.0%
▷ Loan repaid annually over a 10-
year period using available
revenue in LMD 84-2 Fund 468
▷ If revenue is not available, any
unpaid balance will be carried
forward to the next due date
5 Current Fund Balance
(-$66,548)
+
Estimated Need for FY23
up to $100,000*
$166,548
*Estimate based on FY22 Budget Actuals of $88,951
Next Steps
o Begin outreach in Zone 19 to determine residents’ desired level of service
o Present outreach findings to City Council and seek
direction on a Prop 218 election to increase levy
o Ballots mailed to property owners in May/June and
tabulated in July
o Assessments placed on County tax rolls in August 2023 and factored into FY24 budget
Questions?
951-826-2419
[email protected]
www.CoronaCA.gov