R92-212RESOLUTION NO. R92-~/~
A RESOLUTION OF THE CITY CO~R4ISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA,
AUTHORIZING AND DIRECTING THE ¥~¥OR AND
CITY CLERK TO EXECUTE AN AMENDMENT TO THE
LOAN AGREEMENT BETWEEN FUNDS IN
CONNECTION WITH THE STORMWATER
PROGRAM; PROVIDING FOR INTEREST
CONFLICTS, SEVERABILITY AND AN
DATE.
WHEREAS, on February 18, 1992, the City
City of Boynton Beach, Florida approved
authorizing a loan between the Utility
Water Utility Fund in the amount of $26~!2
of covering the engineering fee for
Master Plan; and
sion of the
No. R92-26,
and the Storm
for the purpose
of the Stormwater
WHEREAS, The City has a
work 'on Phase II which is the
amount oif $71~500.00; and
the consultants to
Funding Study in the
WHEREAS, the Utility
has spent $53,652.88 on
)lication thru October
$52,800.00 will have
, 1994; and
WHEREAS, in order
accurate and maintain the in'
amount of $177,952.88 shoui¢
accounting on this endeavor
rity of the Utility Fund, the
added to the formal loan.
NOW, THEREFORE, BE IT
THE CITY OF BOYNTON BEACH
BY THE CITY COMMISSION OF
THAT:
Section 1. The
Beach hereby authorizes
funds in connection wJ
A. Amount of
Commission of the City of Boynton
following additional loan between
the Stormwater Management Program.
$177,952.88
From Fun Entitled: Utility Fund
Account : 401-000-0-324-25
To Fu] Entitled:
No.:
Stormwa%er Utility Fund
425-000-1-364-01
At:
See Section 2
of Loan and Repayment. The
mentioned loan will terminate and
~he original fund will be repaid
orincipal and interest out of the
Stormwater Utility Fee Bonds issued to
finance the Program.
2. The interest rate charged for inter-fund
will b~ the rate paid by the State Board of
~tion on invested funds.
Section 3. That all resolutions or parts of
~olutions in conflict herewith be and the same are hereby
Section 4. Should any section or provision of this
Resolution or portion hereof, any paragraph, sentence or word
be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the remainder of this
Resolution.
Section 5.
This Resolution shall take effect
~T~L~T~E~ D~'T. NO. 92 - 443
LEC~iL
cc: Utilities
TO:
FROM:
DATE:
SUBJECT:
Scott Miller. City Manager
~chn A, Gui4r¥, Utilities Director
Noven~er 24, 1992
Stormwa:er Uti]iffy Development
Reguest for increase of loan amount
~I~TQR~
amount only oovered · .
cOn~ul-tan%s (CD~) to work on Phase
g~ormwater Pund~ a ~,,~. :
, . n ..... z, ~n th~ ~moun ~ the
NPDES a~ic-~:~-~. a~un-~'-= --~,~-~q o~ scprmwater moni~ortng and the
add'"
~eptember 1994, ---~ ~u m~ sDent ox this activity thru
The Iht of money either already spent or anticipated to
bethi stormwater ~n the near-future is ~ 304,072.85 , Of
g ~x. rZerence
keep~he acccuntin~ll._~gn th~s endeavor aocu
thia amendment to the loan be ~o~arded to the City
to YoUr~el~ an~ ~he City Attorney.
Ps,er Mazzella of ~hia
Dete~
Mike Kazunas
Pile
RESOLUT O Rg=-
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA,
AUTHORIZING i~ D!~E~TING THE MAYOR AND
cITY CLERK TO EXECUTE'AN AMENDMENT TO THE
LOAN AGREEMENT BETWEEN FUN~S IN
CONNECTI. ON WITH THE~ STORMWATER MAN~%GEMENT
PROGRAM, PROVIDING FOR INTEREST RATE,
COnFLiCTS, SEv~RAB~LITY AND AN E~F~EC~IVE
DATE.
WHEREAS, on Feb=~ary 18~ 1992, ~he City Commission of the
City of Boynton Beach,~FlOrida approved Resolution No. R92-26,
authorizing a loan between the Utility Fund and the Storm
Water Utility Fund in of $26,120.00 he purpose
~f?cove: 'f~e'f
Master Plan~
The City has also authorizi to
II which is ~the
$7~,~500.00; and
Utility Department has on
NPDES
:iCipates an additional $5
to be spent on this activity thru September, 199~; 9~
W~EREAS, in or~er to keep the ~ccounting onthi~
accurate and maintain the integrity of the
amounf, of.$i77,952.88 should be
SION OF
. NOW, THEREFORE, BE IT RESOLVED BY THE
THE CiTY oF BOYNTON BEACH, FLORIDA THAT:
Section 1. The City Commission of the City of~Boynton
Beach hereby ~thorizes the following additional ~oan~etween
funds in connection with the Stormwater Management P~ogram.
A. Amount of Loan:
$177,952.88
From Fund Entitled: Utility Fund
Account No.: 401-000-0-324-25
To Fund Entitled:
Account No.:
Stormwater Utility Fund
425-000-1-364-01
Interest At:
See Section 2
Duration of Loan and Repayment. The
above mentioned loan will terminate and
the original fund will be repaid
principal and interest out of the
Stormwater Utility Fee Bonds issued to
finance the Program.
Section 2.
loans will be
Administration on
Section 3.
Resolutions in
repealed.
The interest rate charged for inter-fund
the rate paid by the State Board of
invested funds.
That all resolutions or parts of
conflict herewith be and the same are hereby
Section 4. Should any section or provision of this
Resolution or portion hereof, any paragraph, sentence or word
be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the reminder of this
Resolution.
This Resolution shall take effect
Section 5.
~.mmed~.ately upon passage,
PASSED AND ADOPTED th].s
ATTESTs
City Clerk
(Corporate Seal)
__ day of December, 1992.
CITY OF BOYNTON BEACH, FLORIDA
Mayor
Vice Mayor
o
Commissioner
Commissioner
Commissioner
Utllity. Fnd
12/7/92
RESOLUTION NO. R92-~
A:-RESOLUTION~ OF THE CITY COMMISSION OF
-THE CITY OF BOYNTON BEACH, FLORIDA,
AUTHORIZING A LOAN BETWEEN FUNDS IN
CONNECTION- WITH THE STO WATER
M~N~EMEN~ PROSP~ PROV!DING FOR
INTEREST RATE, CONFLICTS, SEVERABILITY
AND AN EFFECTIVE DATE.
WHEREAS the: , Commission of the City of Boynton
Beach, .-izes a loan between funds as
in connectiorI with
moI
the fi ram; and
various
t
outside
city funds have:
financing of these funds; and
WHEREAS~ providing the
adequately compe for the foregone
funds from time to time need shor~
is not economically feasible to obtain
for these funds where other
cash to meet the short, term
financing should be
interest;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF BOYI~TON BEACH, FLORIDA THAT:
Section 1. The City Commission of the City of
Boynton Beach, Florida, hereby authorizes the following loan
the Stormwa=er Management
between
Program.
funds in connection with
Amount of loan:
From Fund Entitled:
Account No.:
To Fund Entitled:
Account No.:
$ 126,120.
UTILITY FUND
%401-000-0-324-25
Interest at:
Section 2.
loans will be
Administration on
Section 3.
resolutions in
repealed.
Storm Water Utility Fund
$425-000-1-364-01
See Section 2
Duration of Loan and Repayment. The above
mentioned loan will terminate and the original
fund will be repaid principal and interest out of
the cost of issuance account from the Stormwater
Utility Fee Bonds issued to finance the Program.
The interest rate charged for inter-fund
the rate paid by the State Board of
invested funds.
That all resolutions or parts of
conflict herewith be and the same are hereby
Section 4. Should any section or provision of this
resolution or portion hereof, any paragraph, sentence, or
word be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the remainder of
this resolution.
Section 5. This resolution shall become effective
immediately upon passage.
PASSED AND ADOPTED this /~ day of February, 1992.
CITY OF BOYNTON BEACH, FLORIDA
ATTEST:
Mayor
Vice Mayor'
0 ss o er
Co~!sioner
(Corporat~ Seal)
Utility. Fnd
02/11/92
AGENDA MEMORANDUM NO. 92-236C
January 5, 1992
IX.
LEGAL
C.i
Proposed Resolution No. R92-212 RE: Amendment to
loan agreement mn connection with the City's Stormwa=er
Management Program ............................... TABLED
At the previous City Commission meeting it was requested that the
City's Bond Consul review the proposed resolution. The response
received indicates that the City does not need to do a resolution
regarding this subject, and that internal accountmng of the
expenses by the Finance Department is all that ms necessary.
Therefore, the resolution can be removed from the agenda, if the
City Commission wishes to do so, and the Finance Department has
been instructed to track all stormwater expenses.
Carrie Parker
Assistant City Manager
CP:jc
cc: Finance Department
Utility Department
1V~OYLE, i~r'ANIG.~L-'~T, i~ATZ, ~ITZOE~A~-D & SHEEH~LI~,
December 22, 1992
Grady W. Swann
Finance Director
City of Boynton Beach
100 East Boynton Beach Boulevard
Boynton Beach, Florida 33435
Dear Grady:
I have received your letter of December 16,
the contemplated loan from the "Utility Fund" to
Utility Fund."
1992 concernang
the "Stormwater
As I understand, the City has incurred and expects to incur in
the future expenses relating to the development of a stormwater
utility. At the last Commission meeting the Commission was asked
to approve an additional loan from the "Utility Fund" to the
"Stormwater Utility Fund." Prior to approving the resolution, the
Commission directed thac I be consulted as to the propriety of
this contemplated loan.
Resolution NO. R 92-96, adopted by the City Commission June
16, 1992, establishes a "Utility System Revenue Account" and
provides that all "Revenues" shall be deposited in the Revenue
Account. The term "Revenues" includes all amounts received by the
City in connection with or as a result of its ownership of the
"Utility System." Since it was contemplated that the Commission
might wish to include the stormwater utility as part of an
integrated utility including the water, sewer and stormwater
utilities, "Utility System" is defined to include not only the
existing water and sewer system, but also any stormwater system
that is designated by the Commission as being included within the
Utility System. Therefore, the Resolution is designed to allow
the City Commission to designate the stormwater utility that is
RECEIVED
OEC 23 ]~92
CITY MANAGER'S OFFICE
7884Z
Grady W. Swann
December 22, 1992
Page 2
currently being developed as being part of the "Utility System"
and thereafter the stormwater utility would fall within Resolution
No. R 92-96 as part of the integrated "Utility System."
Regardless of wheth~ the stormwater utility has been
incorporated into the "Utility System,' pursuant to the
Resolution, "Current Expenses" are paid from the Revenue Account
as they become due and payable. "Current Expenses" means the
expenses of maintenance, repair and operation of the Utility
System, specifically including "engineering expenses incurred
c~nnection with t/he research, and' development of improvements
~lanned or possib~i~-imp~ove~t~, t6 tke UtilitY-System .... - This
language was included in order to allow the payment of expenses
associated with the development of the Stormwater utility on the
same basis as expenses of operating the Utility System It ~s not
necessa~ry that the Stormwater
utility become part of ~he "Utility
System" in advance in order for this to occur.
Additionally, because the Resolution permits money in the
General Reserve Account to be used to make up deficiencies in any
of the other accounts under the Resolution, amounts in the General
Reserve Account may also ~be used to pay Current Expenses,
including the contemplated engineering fees.
There does not need to be any loan in order to allow the use
of monies held in the Revenue Account or General Reserve Account
to pay the stormwater enginee~ihg fees. However, as I understand,
the City is interested in keeping track of the stormwater expenses
so that they may be included in the stormwater fees that shall
ultimately be c~arged. I suggest that this goal may be
accomplished by simply keeping track of the stormwater development
costs'and including them as a cost to be covered by any future
stormwater fee. Certainly this could include a factor for the
time value of money.
Likewise, the loan which was approved in February, 1992 is no
longer truly necessary. While it may have been necessary in
February, 1992 (because Resolution No. R 92-96 had not been
adopted), "reimbursement, to the Revenue Account will occur
automatically when the stormwater utility becomes part of the
"Utility System" under Resolution NO. R 92-96 (because thereafter
all stormwater revenues will flow into the Revenue Account).
Therefore, in conclusion, I suggest that it is not necessary
to adopt the 'loan resolution." Rather, the engineering fees
should be paid as current expenses of the System. The stormwater
7884Z
Grady W. Swann
December 22, 1992
Page 3
expenditures should be accounted for and included in any future
ra~e-setting for the stormwater utility, which rate-setting might
include a factor relating to the time value of money.
I hope this has been responsive; should you require any
further assistance, please don't hesitate to call.
MER/ash
cc: J. Scott Miller
Very truly yours,
Mark E. Raymond
7884Z