RES-10989 Interfund Loan From Capital Projects FundRESOLUTION NO. 10989
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ORANGE AUTHORIZING AN
INTERFUND LOAN FROM THE CAPITAL
PROJECTS FUND TO THE PROPOSITION 172
SALES TAX FUND.
WHEREAS, the City Council, on March 10, 2015, approved an amendment to a joint
agreement for the operation, maintenance, and financial management of the Orange County
800 Megahertz Countywide Coordinated Communication System (herein referred to as
CCCS "), which committed the City of Orange (herein referred to as the "City ") to
participate in the next generation of the CCCS; and
WHEREAS, the City, in order to utilize the CCCS, must have radio equipment that
is compatible with the system; and
WHEREAS, the City Council, on December 13, 2016, approved the purchase of
radio equipment for use in the CCCS in the amount of $3,500,118.76; and
WHEREAS, the voters of the State of California passed Proposition 172 in 1993,
establishing a Statewide half -cent sales tax dedicated to local public safety expenditures; and
WHEREAS, the CCCS is used by public safety personnel to ensure communication
between various safety agencies within the County of Orange and, therefore, is eligible to be
funded by proceeds from Proposition 172 sales tax revenues; and
WHEREAS, the Proposition 172 Sales Tax Fund, as of the date of this Resolution,
does not contain sufficient funds to pay for the entire purchase of the radio equipment, but
can contribute the sum of $730,000.00 toward the purchase; and
WHEREAS, the Capital Projects Fund has sufficient funds, as of the date of this
Resolution, to cover the difference in the purchase price of $2,770,118.76.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange as follows:
1. The City Council authorizes a loan from the Capital Projects Fund to the
Proposition 172 Sales Tax Fund in the amount of $2,770,118.76 (herein referred to as the
Loan ").
2. Interest on the Loan shall accrue as of the date of this Resolution and
continuing until such time as the Loan is repaid in full, at a rate of 0.68 %, 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 quarterly. All Loan payments shall first be used to pay all
accrued interest and then to reduce the principal balance.
3. The term of the Loan commences as of the date of this Resolution and expires,
unless repaid sooner, on June 30, 2023. The Loan may be prepaid at any time.
4. The repayment requirements of the Loan are approved and incorporated as
Exhibit "A ".
5. The City shall annually appropriate the monies required to repay the Loan in
accordance with the terms of this Resolution.
6. If any paragraph, sentence, clause or phrase 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 other 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 this Resolution may be held illegal, invalid or
unenforceable.
ADOPTED this 10th day of January 2017.
Ft 'e A 4
Ter sa E. Smith, Mayor, City of Orange
ATTEST:
Mary E. ity Clerk, Orange
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution was duly and regularly adopted by the City Council of
the City of Orange at a regular meeting thereof held on the 10th day of January 2017, by the
following vote:
AYES: COUNCIL MEMBERS:Alvarez, Whitaker, Smith, Murphy, Nichols
NOES: COUNCIL MEMBERS:None
ABSENT: COUNCIL MEMBERS:None
ABSTAINED: COUNCIL MEMBERS:None
i
Mary E. hy, ity Clerk, City "range
Resolution No. 10989 2
EXHIBIT "A"
LOAN REPAYMENT SCHEDULE
Behind this sheet.]
Resolution No. 10989
City of Orange
Interfund Loan Repayment Schedule
Loaned From: Capital Projects Fund (S00)
Loaned To: Proposition 172 Sales Tax Fund (120)
Initial Principal: $2,770,118.76
Interest Rate: 0.68% (LAIF rate of return at time of loan initiation)
Date Principal Interest Total Payment Principal Balance
1/1/2017 2,770,118.76
3/31/2017 4,709.20)4,709.20 0.00 2,774,827.96
6/30/2017 4,717.21)4,717.21 0.00 2,779,545.17
9/30/2017 113,566.23 4,725.23 118,291.46 2,665,978.94
12/31/2017 113,759.30 4,532.16 118,291.46 2,552,219.64
3/31/2018 113,952.69 4,338.77 118,291.46 2,438,266.95
6/30/2018 114,146.41 4,145.05 118,291.46 2,324,120.54
9/30/2018 114,340.46 3,951.00 118,291.46 2,209,780.08
12/31/2018 114,534.83 3,756.63 118,291.46 2,095,245.25
3/31/2019 114,729.54 3,561.92 118,291.46 1,980,515.71
6/30/2019 114,924.58 3,366.88 118,291.46 1,865,591.13
9/30/2019 115,119.96 3,171.50 118,291.46 1,750,471.17
12/31/2019 115,315.66 2,975.80 118,291.46 1,635,155.51
3/31/2020 115,511.70 2,779.76 118,291.46 1,519,643.81
6/30/2020 115,708.07 2,583.39 118,291.46 1,403,935.74
9/30/2020 115,904.77 2,386.69 118,291.46 1,288,030.97
12/31/2020 116,101.81 2,189.65 118,291.46 1,171,929.16
3/31/2021 116,299.18 1,992.28 118,291.46 1,055,629.98
6/30/2021 116,496.89 1,794.57 118,291.46 939,133.09
9/30/2021 116,694.93 1,596.53 118,291.46 822,438.16
12/31/2021 116,893.32 1,398.14 118,291.46 705,544.84
3/31/2022 117,092.03 1,199.43 118,291.46 588,452.81
6/30/2022 117,291.09 1,000.37 118,291.46 471,161.72
9/30/2022 117,490.49 800.97 118,291.46 353,671.23
12/31/2022 117,690.22 601.24 118,291.46 235,981.01
3/31/2023 117,890.29 401.17 118,291.46 118,090.72
6/30/2023 118,090.72 200.75 118,291.47 0.00