Report to City Council
ID: 25-0283 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 RECREATION
CENTER DEVELOPMENT IMPACT FEE FUND (RESO.
NO. 2025 -XX) (REPORT OF: FINANCIAL &
MANAGEMENT SERVICE) (ALL DISTRICTS)
TITLE SUMMARY: Adopt a Resolution Authorizing a Loan Agreement with the City of Moreno Valley Facilities Replacement Reserve Fund and the Recreation Center 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 Recreation Center Development Impact Fee Fund (herein the “Rec Center 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 Rec Center DIF Fund in the amount of $1,611,217.
ID: 25-0283 Page 2
DISCUSSION
On October 15, 2024, City Council authorized an interfund transfer loan from the Facilities Replacement Fund to the Rec Center DIF Fund to fund a portion of the Sen ior Center expansion construction costs. The authorized loan amount was $1,611,217.
The Resolution would authorize an interfund transfer Loan Agreement from the City’s Facilities Replacement Reserve Funds (7330) to the Rec Center DIF Fund (2907) in the amount of $ 1,611,217. This will also allow for budget appropriation to the Facility Construction Fund (30 00) to assist with the insufficient fund balance needed for the Senior Center expansion.
The City Council has ap proved 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 Rec Center DIF Fund (2907). 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 Rec Center DIF Fund ($1,611,217). 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 $1,611,217 received from the Facilities Replacement Reserve Fund (7330) to the Rec Center DIF Fund (2907) will fund the Senior Center expansion.
Description Fund GL Account No. Type
(Rev/ Exp)
FY24/25
Budget
Proposed
Adjustments
FY 24/25
Amended
ID: 25-0283 Page 3
Budget
Transfer to: Facility
Construction Fund 7330 7330-99-99-97330-903000 Exp $1,611,217 ($1,611,217) $0 Transfers In: Facility
Replacement Reserve 3000 3000-99-99-93000-807330 Rev $1,611,217 ($1,611,217) $0 Transfer Out: to DIF -
Rec Center 2907 2907-99-95-92907-903000 Exp $0 $1,611,217 $1,611,217 Transfer In: from DIF-
CRC (Rec Center) 3000 3000-99-99-93000-802907 Rev $0 $1,611,217 $1,611,217
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: 25-0283 Page 4
Report Approval Details
Document Title: STAFFREPORT_FMS_SENIOR CENTER 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