229319v2
EXHIBIT A
INTERFUND LOAN AGREEMENT
This Loan Agreement (Agreement) is executed as of June 30, 2024 (Effective Date) between the City of Fresno Sewer System Rate Stabilization Connection Fee (CIP Reserve) Fund (Fund No. 4500 -4504) (Lender) and the City of Fresno Solid Waste Management Division Solid Waste Operating Enterprise Fund (Fund No. 4100 -4101) (Borrower). Lender agrees to lend to Borrower, and Borrower agrees to repay Lender, an amount not to exceed the Principal Amount and interest accrued on the unpaid loan balance, in accordance with the following:
1. Purpose of the Loan. To provide funds for use by the Borrower or its designee to fund operating costs necessary to continue services and avoid depleting reserves .
This loan is assumed in the financial plan supporting the five-year schedule of rates adopted in Resolution No. 2024-____.
2. Principal Loan Amount. Not to exceed $5,000,000. The loan will be recorded as receivable to the Lender and payable to the Borrower.
3. Term of the Loan. The term of this loan shall begin on the Effective Date and shall be repaid in full as of June 30, 2029.
4. Scheduled Payments. Borrower shall make payments against principal and interest twice a year on January 1 and July 1. At a minimum, each payment shall be equal to the amount of any accrued interest through the date of payment, plus a principal payment equal to one-tenth (1/10) of the original principal amount. Payments will be credited first to interest then due, and then to principal. Immediately after that, interest will cease on the principal so credited.
5. Rate of Interest. Any interest not paid when due shall bear interest from its due date at the rate specified ; provided, however, that in no event shall the interest rate, as calculated and accrued, exceed the maximum legal rate applicable to loans by public entities to public entities in similar transactions. The interest rate shall be a rate equal to the City’s Pooled Investment Rate, fixed monthly, calculated and accrued in the same manner that the City would otherwise earn interest on the funds if deposited and earning interest as a pooled investment. The rate for May 2024 was 3.40%. Loan interest will be recorded as revenue to the Lender and expenditure to the Borrower.
General Provisions. This agreement constitutes the full Agreement by and between the parties and no other representations have been made regarding the contents of this Agreement. This Agreement shall not be amended, modified, or altered in any respect unless such amendment, modification, or alteration has been reduced to writing and executed by both parties.
LENDER
__________________________________
Georgeanne A. White, City Manager
City of Fresno
BORROWER
__________________________________
Georgeanne A. White, City Manager
City of Fresno