For City Council Meeting March 26, 2024
TO: Honorable Mayor and City Council
FROM: David N. Carmany, City Manager
AUTHOR(S): Arron Brown, Assistant City Manager
Stephen Dopudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
...Title
Consideration of Resolutions Authorizing Revenue Stabilization Transfer to the Water and Wastewater Concession Agreement Trust Accounts.
RECOMMENDATION:
It is recommended that the City Council and Rialto Utility Authority Board:
1. Adopt City Resolution No. 8196 authorizing the transfer of $5.3 million from the City's Unrestricted General Fund Reserve to the Water Utility Fund Trust Account for the purpose of rate stabilization and $1.5 million from the Rialto Utility Authority's Wastewater Reserve Fund to the Wastewater Utility Fund's Trust Account for debt service coverage;
2. Adopt RUA Resolution No. 08-30 authorizing the transfer of $5.3 million from the City's Unrestricted General Fund Reserve to the Water Utility Fund Trust Account for the purpose of rate stabilization and $1.5 million from the Rialto Utility Authority's Wastewater Reserve Fund to the Wastewater Utility Fund's Trust Account for debt service coverage;
3. Structure the General Fund Reserve transfer to the Water Utility Fund Trust Account as a loan with a term of 10 years;
4. 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; and
5. Authorize the City Manager to execute all documents.
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BACKGROUND:
The City of Rialto (City) provides water and wastewater services to residences and businesses within City limits. The City provides these services through the Rialto Utility Authority (RUA). The City's water service area is generally located within the central portion of the City between Baseline Road and I-10 and includes approximately 12,000 water service connecti...
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