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RESOLUTION NO. 2024-017 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON <br /> APPROVING AN INTERFUND LOAN FROM THE EQUIPMENT REPLACEMENT FUND <br /> TO THE RECYCLED WATER FUND IN THE AMOUNT OF $965,160 FOR A TERM OF <br /> NOT MORE THAN FIVE YEARS TO REDEEM THE OUTSTANDING 2017 WATER <br /> REVENUE BONDS; AND APPROVE AMENDMENTS TO THE FISCAL YEAR 2023/24 <br /> BUDGET <br /> WHEREAS, the City is looking to defease the 2017 Water Revenue Bonds to provide <br /> flexibility in the timing and structuring of the proposed 2024 Water Revenue Bonds; and <br /> WHEREAS, the Recycled Water Fund currently does not have sufficient cash to prepay <br /> the bonds; and <br /> WHEREAS, the Equipment Replacement Fund (an Internal Service Fund) will lend <br /> $965,160 to the Recycled Water Fund to redeem the outstanding bonds. <br /> NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF <br /> PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: <br /> Section 1. Approve an interfund loan from the Equipment Replacement Fund (Fund <br /> 514) to the Recycled Water Fund (425) in the amount of$965,160 for a term of not more than five <br /> years to redeem the outstanding 2017 Water Revenue Bonds. <br /> Section 2. Approve amendments to the Fiscal Year 2023/24 budget. <br /> Section 3. Adopt the terms of the interfund loan as specified below. <br /> Loan amount: $965,160. Funds from the Equipment Replacement Fund should be transferred to <br /> the Recycle Water Fund by April 30, 2024. <br /> Term: Five years with the final payment due in June 2028. Principal can be paid off anytime during <br /> the five-year period without penalty. <br /> Interest rate: Variable interest rates based on the investment return generated by the City's <br /> investment pool. The current return is about 1.5%. <br /> Repayment method: Principal and interest due annually in June. The first payment is due in June <br /> 2024. <br /> Section 4. The City Clerk shall certify the passage of this resolution and enter it into <br /> the book of original resolutions. <br /> PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at <br /> a regular meeting held on April 16, 2024. <br /> {Vote and signatures to follow on next page} <br />