RESOLUTION NO. 2022-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, AMENDING the FY 2021-22 OPERATING BUDGET BY APPROPRIATING $2,400,000 FROM WATER FUND RESERVES AND TRANSFERRING $2,400,000 TO THE POMONA CHOICE ENERGY AUTHORITY FUND, APPROVE A PAYBACK SCHEDULE TO THE WATER FUND FROM THE POMONA CHOICE ENERGY AUTHORITY FUND AND AMEND The FY 2021-22 OPERATING BUDGET BY INCREASING REVENUE ESTIMATES AND APPROPRIATIONS IN THE AMOUNT OF $2,400,000 WHEREAS, on April 1, 2019, the City Council adopted Ordinance No. 4256 establishing a Community Choice Aggregation Program (“CCA”) which will deliver to current Southern California Edison customers energy purchased by the City at a discounted rate; WHEREAS, to establishing the City’s CCA there are certain startup costs required by both the CCA and the California Public Utilities Commission (“CPUC”); WHEREAS, on October 15, 2018, City Council approved $47,250 of General Fund monies to be used to complete an implementation plan for the City’s CCA; WHEREAS, on March 2, 2020, City Council approved $783,428 of Water Fund reserves (571) to be loaned to the Community Choice Aggregation Program’s Fund known as the Pomona Choice Energy Authority Fund 551 for the City’s CCA; WHEREAS, on July 19, 2021, City Council approved a loan from Water Fund reserves (571) to the Pomona Choice Energy Authority Fund (551) in the amount of $4,500,000; and WHEREAS, the proposed revised revenue estimates and appropriations are necessary to provide funding for the short-term cash flow shortage due to rising costs of energy procurement for the City’s CCA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pomona as follows:
SECTION 1. Hereby approves a loan from Water Fund reserves (571) to the Pomona Choice Energy Authority Fund (551) in the amount of $2,400,000.
SECTION 2. Amend the FY 2021-22 Water Fund budget by appropriating $2,400,000 from reserves (571-8110-89904-00000) and revising revenue estimates and appropriations in the amount of $2,400,000 in the Pomona Choice Energy Authority Fund (551-8201-80702-00000)).
SECTION 3. Approve annual payments from the Pomona Choice Energy Authority Fund to the Water Fund in an amount not to exceed the amount borrowed, plus interest at 1.25 percent. Payment amounts shall be determined annually at year end based on the available funds after all CCA Fund expenses have been paid, and maintaining a fund balance not less than $300,000, or higher if required by the CPUC.
As the CPUC requires a reserve balance of 15 percent of revenues, funds within the CCA Fund necessary to meet this requirement shall not be considered fund balance for purposes of calculating repayment.
SECTION 4. Said amount shall be returned to the Water Fund with estimated interest, totaling $72,500, from the Pomona Choice Energy Authority Fund. Below is the estimated payment schedule. Payment amounts will be based on the criteria as described above.
SECTION 5. That the City Clerk shall attest and certify to the passage and adoption of this resolution and it shall become effective immediately upon its approval.
APPROVED AND ADOPTED THIS 24TH DAY OF JANUARY 2022.
ATTEST: CITY OF POMONA:
__________________________________ ______________________________ Rosalia A. Butler, MMC, City Clerk Tim Sandoval, Mayor APPROVED AS TO FORM:
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Sonia Carvalho, City Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF POMONA
I, ROSALIA A. BUTLER, MMC, CITY CLERK of the City of Pomona do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Pomona held on the 24th day of January 2022 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
__________________________________
Rosalia A. Butler, MMC, City Clerk
Resolution No. 2022-09
January 24, 2022
Resolution No. 2022-09
January 24, 2022
ATTACHMENT NO. 2