Report to City Council
ID: 25-0282 Page 1
TO: Mayor and City Council
FROM: Dena Heald, Chief Financial Officer/City Treasurer
AGENDA DATE: June 17, 2025
TITLE: LOAN AGREEMENT BETWEEN THE CITY OF MORENO
VALLEY FACILITIES REPLACEMENT RESERVE FUND
AND THE CITY OF MORENO VALLEY PARK
IMPROVEMENTS DEVELOPMENT IMPACT FEE FUND
(RESO. NO. 2025 -XX) (REPORT OF: FINANCIAL &
MANAGEMENT SERVICES) (ALL DISTRICTS)
TITLE SUMMARY: Adopt a Resolution Authorizing a Loan Agreement with the City of Moreno Valley Facilities Replacement Reserve Fund and the Park Improvements DIF Fund.
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Adopt Resolution No. 2025-___, a Resolution of the City Council of the City of Moreno Valley , California, authorizing a loan agreement between the City of Moreno Valley Facilities Replacement Reserve Fund and the Park Improvements Development Impact Fee Fund (herein the “Parks DIF”).
SUMMARY
Staff recommends the City Council adopt the proposed Resolution approving an interfund transfer Loan Agreement between the City of Moreno Valley Facilities Replacement Reserve Fund and Parks DIF Fund in the amount of $5,551,006.
ID: 25-0282 Page 2
DISCUSSION
On November 1 9, 2024, City Council authorized an interfund transfer loan from the Facilities Replacement Fund to the Parks DIF Fund to fund a portion of the Gateway Park and Pump Track site improvement construction costs. The authorized loan amount was $5,551,006 (Gateway Park - $686,640 and Pump Track - $4,864,366).
The Resolution would authorize an interfund transfer Loan Agreement from the City’s Facilities Replacement Reserve Funds (7330) to Parks DIF Fund (2905) in the amount of $5,551,006. This will also allow for a budget appropriation to the PCS Capital Projects Construction Fund (3015) to assist with the insufficient fund balance needed for P ark improvements.
The City Council has approved the levy of a fee to mitigate the impacts of new development on various public facilities pursuant to the California Mitigation Fee Act.
These fees are collected and recorded in separate funds pending the allocation of available funds for capital projects or to replay interfund loan transfer advancements.
The Loan Agreement would establish the action to repay the Facilities Replacement Reserve Fund with future revenue collected in the Parks DIF Fund (2905) . The term of the Loan Agreement will remain in effect until the balance of the loan is extinguished and repaid in full. The loan repayment will occur as DIF revenues are received and available.
ALTERNATIVES
1. Adopt proposed resolution approving the Loan Agreement authorizing an interfund transfer from the Facilities Replacement Reserve Fund to the Park Improvements DIF Fund ($5,551,006). Staff recommends this alternative because this authorizes the recordation of the loan amounts to address current cash balances in th is fund and allows the City to remain in compliance with Generally Accepted Accounting Principles.
2. Do not adopt proposed resolution approving the Loan Agreement and provide staff with other directions. Staff does not recommend this alternative because it will not address the current cash balance in th is fund and the City’s financial statements may not comply with Generally Accepted Accounting Principles.
FISCAL IMPACT
The total loan amount of $5,551,006 received from the Facilities Replacement Reserve Fund (7330) to Parks DIF Fund (2905) will fund the revitalization of Gateway Park and the Pump Track site improvements.
Description Fund GL Account No. Type
(Rev/ Exp)
FY24/25
Budget
Proposed
Adjustments
FY 24/25
Amended
ID: 25-0282 Page 3
Budget
Transfer to: PCS Cap
Project (Park Imprvmts) 7330 7330-99-99-97330-903015 Exp $4,864,366 ($4,864,366) $0 Transfer In: Facilities
Replacement Reserve 3015 3015-99-99-93015-807330 Rev $4,864,366 ($4,864,366) $0 Transfer to: PCS Cap
Project (Park Imprvmts) 2905 2905-99-95-92905-903015 Exp $0 $4,864,366 $4,864,366 Transfer In: from DIF-
Park Improvements 3015 3015-99-99-93015-802905 Rev $0 $4,864,366 $4,864,366 Transfer to: PCS Cap
Project (Park Imprvmts) 7330 7330-99-99-97330-903015 Exp $686,640 ($686,640) $0 Transfer In: Facilities
Replacement Reserve 3015 3015-99-99-93015-807330 Rev $686,640 ($686,640) $0 Transfer to PCS Cap
Project (Park Imprvmts) 2905 2905-99-95-92905-903015 Exp $0 $686,640 $686,640 Transfer In: from DIF-
Park Improvements 3015 3015-99-99-93015-802905 Rev $0 $686,640 $686,640
As Development Impact Fee revenues are received, they will be applied to the remaining loan balance to reduce the outstanding loan amount for this fund. There is no impact to the General Fund.
NOTIFICATION
Publication of the agenda
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Felicia London Dena Heald
Deputy Finance Director Chief Financial Officer/City Treasurer
CITY COUNCIL GOALS
None
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ID: 25-0282 Page 4
ID: 25-0282 Page 5
Report Approval Details
Document Title: STAFFREPORT_FMS_GATEWAY PARK-PUMP_TRACK DIF LOAN.docx
Attachments: - Resolution 2025-___.docx
- Exhibit A - Loan Agreement.docx
Final Approval Date: Jun 10, 2025
This report and all of its attachments were approved and signed as outlined below:
Natalia Lopez
Dena Heald
Launa Jimenez
Brian Mohan
Patty Rodriguez