Report to City Council
ID: 25-0289 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 PUBLIC ART
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 Public Art Development Impact Fee 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 Public Art Development Impact Fee Fund (herein the “Public Art 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 Public Art DIF Fund in the amount of $10,000,000.
ID: 25-0289 Page 2
DISCUSSION
On January 7, 2025, City Council authorized an interfund transfer loan from the Facilities Replacement Fund to the Public Art DIF Fund for construction costs related to the creation of an Immersive Museum. The authorized loan amount was $10,000,000.
The Resolution would authorize an interfund transfer Loan Agreement from the City’s Facilities Replacement Reserve Funds (7330) to the Public Art DIF Fund (29 16) in the amount of $ 10,000,000. This will also allow for budget appropriation to the Facility Construction Fund (30 00) to assist with the insufficient fund balance needed for the Immersive Museum project.
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 Public Art DIF Fund (2916). 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 Public Art DIF Fund ($10,000,000). Staff recommends this alternative because this authorizes the recordation of the loan amounts to address current cash balances in this 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 $10,000,000 received from the Facilities Replacement Reserve Fund (7330) to the Public Art DIF Fund (2916) will fund the Immersive Museum project.
ID: 25-0289 Page 3
Description Fund GL Account No. Type
(Rev/ Exp)
FY24/25
Budget
Proposed
Adjustments
FY 24/25
Amended
Budget
Transfer to: DIF –
Facility Const Fund 2916 2916-99-95-92916-903000 Exp $0 $10,000,000 $10,000,000 Transfer In: from DIF-
Public Art 3000 3000-99-99-93000-802916 Rev $0 $10,000,000 $10,000,000
As the 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: 25-0289 Page 4
Report Approval Details
Document Title: STAFFREPORT_FMS_IMMERSIVE MUSEUM 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