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RESOLUTION NO. 2023-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON TO
AUTHORIZE AN INTERFUND LOAN FROM THE WATER ENTERPRISE FUND TO
THE STORM WATER ENTERPRISE FUND FOR THE COSTS OF PUBLIC
IMPROVEMENTS
WHEREAS, on December 12, 2006, the City Council (“City Council”) of the City of Patterson (“City”) adopted Resolution 2006-122 approving a Combined Preliminary and Final Development Plan and other entitlements for the project known as The Villages of Patterson (“Villages Project”).
WHEREAS, as part of the Villages Project, developers were required to oversize the public improvements they installed, subject to reimbursement with interest, for the costs of those public improvements that exceeded the developer’s fair share allocation; WHEREAS, a developer of the Villages Project, Patterson Ranch Development, LLC (“PRD”), has alleged that the full reimbursement obligation for the oversized improvements constructed by PRD is due and payable immediately; and WHEREAS, PRD has agreed to waive their claim as to the timing of the reimbursement obligation in exchange for a portion of the reimbursement obligation being paid immediately and the rest of the reimbursement obligation being covered after the issuance of bond proceeds from Community Facilities District (“CFD”) 2018-1, the funding and financing district for infrastructure improvements for the Villages Project; and WHEREAS, as of the date of this Resolution, the Storm Drain Enterprise Fund does not contain sufficient funds to provide for the costs of reimbursement for public improvements to the Storm Drain system that were installed by PRD, as part of the Villages Project; and
WHEREAS, the Water Enterprise Fund has sufficient funds, as of the date of this Resolution, for the costs of reimbursement for the storm water system improvements that were installed as part of the Villages Project by PRD; and WHEREAS, CFD 2018-1 has adequate funding capacity to reimburse the Water Enterprise Fund for PRD’s infrastructure improvements through the issuance of one or more series of bonds scheduled over a number of years. Funding from CFD 2018-1 through the third bond tranche series is anticipated to repay the Water Enterprise Funds for the PRD improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PATTERSON AS FOLLOWS:
1. The City Council hereby authorizes a loan from the current Water Enterprise {CW126788.3}
Fund to the Storm Water Enterprise Fund in the amount of $1,600,000.00 (the “Loan”)
2. Interest on the Loan shall accrue as of the date of this Resolution and continue until such time as the Loan is repaid in full, at the rate of 2.425%, which is equal to the investment yield of the State of California’s Local Agency Investment Fund as of the date of this Resolution, compounded annually. All Loan payments shall first be used to pay all accrued interest and then to reduce the principle balance.
3. The term of the Loan commences as of the date of this Resolution and expires, unless repaid sooner, on March 31, 2033. The Loan may be repaid at any time.
4. The City shall appropriate the monies required to repay the Loan in accordance with the terms of this Resolution at the time the third bond tranche from CFD 2018-1 is issued.
5. If any paragraph, sentence, clause, or phase of this Resolution shall for any reason be held illegal, invalid or unenforceable, such holding shall not affect the validity of the remaining portions of this Resolution. The City hereby declares that it would have adopted this Resolution and each and every paragraph, sentence, clause, or phrase hereof and authorized the Loan irrespective of the fact that any one or more paragraphs, sentences, clauses, or phrases of the Resolution may be held illegal, invalid, or unenforceable.
PASSED AND ADOPTED AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF PATTERSON ON THE ____ DAY OF MARCH 2023, BY THE FOLLOWING ROLL CALL VOTE:
AYES:
NOES:
EXCUSED:
APPROVED:
________________________
Michael Clauzel
Mayor of the City of Patterson
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ATTEST:
_______________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a special meeting held on the 14th day of March 2023, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.
DATE:
________________________________
City Clerk of the City of Patterson
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Exhibit A
Loan Repayment Schedule
City of Patterson
Interfund Loan Repayment Schedule
Loaned From: Stormwater Enterprise Fund
Loan to: Water Enterprise Fund
Initial Principle: $1,600,000.00
Interest Rate: 2.425%
Date Principal Interest Total Payment Principal
Balance
3/31/2024 $143,128.01 $37,216.15 $180,344.16 $1,456,872.01 3/31/2025 $146,637.71 $33,706.45 $180,344.16 $1,310,234.33 3/31/2026 $150,233.44 $30,110.72 $180,344.16 $1,160,000.89 3/31/2027 $153,917.38 $26,426.78 $180,344.16 $1,006,083.53 3/31/2028 $157,691.63 $22,652.53 $180,344.16 $848,391.91 3/31/2029 $161,558.46 $18,785.70 $180,344.16 $686,833.47 3/31/2030 $165,520.09 $14,824.07 $180,344.16 $521,313.40 3/31/2031 $169,578.86 $10,765.30 $180,344.16 $351,734.56 3/31/2032 $173,737.16 $6,607.00 $180,344.16 $177,997.42 3/31/2033 $177,997.43 $2,346.73 $180,344.16 $0.00