Item No. 9.
STAFF REPORT
DATE:
September 14, 2026
TO:
Honorable Mayor and City Council
FROM:
Dr. Sean M. Moore, City Manager
PREPARED
Fermin Preciado, Director of Public Works/City Engineer BY:
SUBJECT: General Fund Loans Update - Capital Improvement Program (CIP) Projects RECOMMENDATION:
That the City Council:
1. Receive an update regarding previous General Fund Loans to the Capital Improvement Program for Infrastructure Projects; or
2. Provide further direction to staff.
BACKGROUNDIDISCUSSION:
The City's General Fund has provided funding for various Capital Improvement Program (CIP) projects over the past almost 30 years. These projects include public facilities, park facilities, drainage facilities and transportation (road or intersection widening) facilities. The funding provided by the General Fund has been either in the form of a loan to the City's Development Impact Fee (DIF) Program or as a specific one-time funding contribution to a specific project. For certain projects, both a loan and a one-time funding contribution was approved by the City Council. A list of projects and their respective General Fund related funding amounts is included as Attachment
1. Formal City Council approval of these loans and one-time funding contributions from the General Fund have occurred as part of the annual budget and CIP adoption process, or by other City Council actions such as when the construction contract for a specific project is approved and awarded.
If the funding was provided in the form of a loan, the intent has always been to reimburse the General Fund with revenue collected from developers through the City's DIF Program fees. Over the years, a relatively nominal amount has been repaid to the General Fund. However, the amount owed back to the General Fund grew to over $22 million as of June 2019, as audited by the City's independent financial audit firm.
On June 22, 2020, the City Council adopted Resolution No. 2020-43 approving a formal interfund loan agreement which provided that each of the individual DIF Program funds repay the General Fund 50% of their annual DIF fee revenues over the next 10 years to pay off their individual portions of the overall $22 million loan. This agreement also identified that upon expiration of the agreement, all of the remaining balance amount, if any shall be forgiven and written off by the General Fund.
On February 8, 2021, the City Council adopted Resolution No. 2021-10 approving an updated interfund loan agreement. This updated agreement included the following changes:
• Increased the amount of Public Facilities DIF fund annual revenue used to repay the General Fund loan from 50% to 100%.
• Extended the terms of the repayment agreement from 10 years to 30 years. • For annual financial reporting requirements, that the General Fund make another loan to any fund with a negative cash balance as of June 30th of any given fiscal year.
As of June 30, 2025 the most recent audited financials the remaining balance is $12,228,949.
FISCAL IMPACT:
The recommendations do not result in a fiscal impact.
Attachments
Attachment 1 - General Fund Funding for CIP Projects.pdf
Project Type
Project Name
Total Project
Cost
General Fund
Loan Amount
General Fund
One-time
Contribution
Year Budgeted and
Approved by the City
Council
Parks
Community Park
$3,450,000
$2,945,000
1997
Public Facilities
Community Center
$4,480,000
$242,000
2000
Public Facilities
Pool Complex (Crafton Hills College)
$12,800,000
$1,838,000
$162,000
2001
Public Facilities
City Hall
$6,250,000
$3,430,000
$1,130,000
2002
Transportation
Live Oak Cyn Rd/1-10 Fwy Interchange
$19,600,000
$7,309,000
2005
Drainage
Oak Glen Creek Basins
$6,690,000
$270,000
2006
Public Facilities
Fire Station No. 3
$4,600,000
$3,072,000
2007
Transportation
Wildwood Cyn Road and 5th Street Intersection Improvements $38,000
$840,000
2007
Drainage
Wildwood Creek Basins
$6,900,000
$330,000
2008
Parks
John Tooker Civic Center Park
$709,000
$709,000
2008
Public Facilities
Energy Dependency Program (Comm. Park Solar Project)
$2,100,000
$827,000
2009
Drainage
11th Street Storm Drain
$415,000
$133,000
2010
Public Facilities
Transit Center
$2,740,000
$120,000
2010
Transportation
Yucaipa Boulevard Streetscape
$5,140,000
$350,000
2011
Transportation
Live Oak Cyn Rd/1-10 Fwy Interchange Hardscape/Landscape $645,000
$74,000
2011
Parks
Dunlap Park
$605,000
$605,000
2013
Public Facilities
Police Station
$10,132,000
$3,772,000
$6,020,000
2013
Parks
13th Street Sports Complex
$2,800,000
$775,000
2015
Parks
Equestrian Center Park/Dottie Potter Cover
$2,260,000
$670,000
2015
Public Facilities
Yucaipa Performing Arts Center (YPAC)
$14,200,000
$10,495,000
$2,135,000
2016
Transportation
18th Street Sidewalk, Yucaipa Boulevard to Ave E
$140,000
$34,000
2017
Drainage
Wilson 3 Detention Basin Project
$32,000,000
$400,000
2018
Transportation
Yucaipa Boulevard Widening, 15th Street to 1-10 Fwy
$12,935,000
$135,000
2018
Parks
El Dorado Ranch/5 Winds Park
$3,265,000
$2,662,000
2021
Transportation
Yucaipa Boulevard, 2nd Street to 5th Street ADA Improvements $1,470,0001
$21,000
2024
Totall
$156,364,0001
$35,543,0001
$15,962,000