RUA RESOLUTION NO. XX-XX
A RESOLUTION OF THE RIALTO UTILITY AUTHORITY BOARD OF THE CITY OF RIALTO, CALIFORNIA, AMENDING THE 2023-2024 FISCAL YEAR BUDGET AND AUTHORIZING funds for the 2024-2025 fiscal year budget.
WHEREAS, on March 27, 2012, the City Council and Rialto Utility Authority Board adopted Resolution 6094 and Resolution 6095 respectively approving a Concession Agreement with Rialto Water Services; and WHEREAS, on November 29, 2012, the City Council and Rialto Utility Authority Board entered into a Trust Agreement with Rialto Water Services, LLC; and WHEREAS, per Section 5.03, Rate Stabilization Accounts of the Trust Agreement the City of Rialto and Rialto Utility Authority must maintain a balanced budget of incoming water and wastewater revenues against annual operating expenses and coverage requirements; and WHEREAS, on February 27, 2024, staff was notified by Rialto Water Services, LLC that the Water Trust Account has a shortfall of $5.3 million for the remainder of fiscal year 2023-2024 through the fiscal year 2024-2025; and WHEREAS, the Wastewater Trust Account has a shortfall of $1.5 million for the remainder of the fiscal year 2023-2024 through the fiscal year 2024-2025; and WHEREAS, funds must be transferred into the Water and Wastewater Trust Accounts by March 31, 2024.
NOW, THEREFORE, THE RIALTO UTILITY AUTHORITY OF THE CITY OF RIALTO DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: The Executive Director is hereby authorized and directed to transfer $5.3 million from the City’s Unrestricted General Fund Reserve to the Water Utility Fund Trust Account for the purpose of rate stabilization by March 31, 2024.
Section 1.1: Structure the General Fund Reserve transfer to the Water Utility Fund Trust Account as a loan with a term of 10 years.
Section 1.2: Structure the interest rate on the General Fund Reserve transfer to the Water Utility Fund Trust Account loan equivalent to the rate of return earned by the City on funds invested in the Local Agency Investment Fund Section 2: The City of Rialto City Manager is hereby authorized and directed to transfer $1.5 million from the Rialto Utility Authority’s Wastewater Reserve Fund to the Wastewater Utility Fund’s Trust Account for debt service coverage by March 31, 2024. \\\\\
WHEREFORE, this Resolution is passed, approved, and adopted on this 26th day of March 2024.
DEBORAH ROBERTSON, President
ATTEST:
BARBARA A. McGEE, Board Secretary
APPROVED AS TO FORM:
ERIC VAIL, Board Counsel
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF RIALTO )
I, Barbara A. McGee, Board Secretary of the Rialto Utility Authority of the City of Rialto, do hereby certify that the foregoing RUA Resolution No._____ was duly passed and adopted at a regular meeting of the Rialto Utility Authority of the City of Rialto held on the 26th day of March 2024.
Upon motion of Board Member ____________, seconded by Board Member _______________, the foregoing RUA Resolution No. _______ was duly passed and adopted.
Vote on the motion:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and the Official Seal of the City of Rialto this _____ day of _________________, 2024.
BARBARA A. MCGEE, BOARD SECRETARY
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