Report to City Council
ID: 26-0243 Page 1
TO: Mayor and City Council
FROM: Felicia London, Chief Financial Officer/City Treasurer
AGENDA DATE: June 16, 2026
TITLE: ADOPT A RESOLUTION AUTHORIZING A LOAN
BETWEEN THE CITY OF MORENO VALLEY ’S
FACILITIES REPLACEMENT RESERVE FUND AND
RECREATION CENTER DEVELOPMENT IMPACT FEE
FUND (RESO. NO. 2026 -XX)(REPORT OF: FINANCIAL
AND MANAGEMENT SERVICES) (DISTRICT 3)
TITLE SUMMARY: Resolution Authorizing a Loan Agreement with the City of Moreno Valley Facilities Replacement Reserve Fund and the Recreation Center Development Impact Fee Fund
DISTRICT: District 3
Recommendation(s)
1. Adopt Resolution No. 2026 -XX, 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 L oan Agreement between the City of Moreno Valley Facilities Replacement Reserve Fund and Rec Center DIF Fund in the amount of $3,406,755.
DISCUSSION
ID: 26-0243 Page 2
On December 2, 2025 , City Council authorized an interfund transfer loan from the Facilities Replacement Fund to the Rec Center DIF Fund to fund a portion of the Senior Center expansion construction costs. The authorized loan amount was $3,406,755.
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 $3,406,755.
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 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 the Rec Center DIF revenues a re 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 ($3,406,755). 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 the 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 this fund and the City’s financial statements may not comply with Generally Accepted Accounting Principles.
FISCAL IMPACT
The total loan amount of $3,406,755 received from the Facilities Replacement Reserve Fund (7330) to the Rec Center DIF Fund (2907) will fund the Senior Center Expansion, Project No. 803 0057.
As the Rec Center DIF 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
ID: 26-0243 Page 3
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Patty Yhuit Felicia London
Deputy Finance Director (Operations) 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: 26-0243 Page 4
Report Approval Details
Document Title: STAFFREPORT_FMS_SENIOR CENTER DIF LOAN
(2nd).docx
Attachments: - Resolution 2026-XX+Exh A_DIF Rec Ctr_Sr Ctr Expansion_6.16.26.pdf
Final Approval Date: Jun 10, 2026
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Patty Yhuit
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez