HomeMy WebLinkAbout29- Finance CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From: BARBARA PACHON, Subject: LOAN TO THE EMS TRANSPORT ENTERPRISE
DIRECTOR OF FINANCE FUND IN THE AMOUNT OF $1,450,000 TO
Dept: FINANCE O�
N�4 L COVER START UP COSTS.
Date. 10/24/96
Synopsis of Previous Council action:
October 7, 1996 - Resolution 96-312 Adopted.
Recommended motion:
Approve the implementation of the financing outlined by the
Director of Finance for the funding of the EMS Transport
start up costs.
I
Signature
Contact person: BARBARA PA -HON, DIRECTOR OF FINANCE Phone:_ ext. 5242
Supporting data attached: Ward:
FUNDING REQUIREMENTS: Amount: $1,450,000
Source: (Acct. No.) FUNDS - 245, 132, 248, 243
(Acct. Description)
Finance:
Council Notes:
lllqlqA
Agenda Item No. ;�Cl
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
On October 7, 1996, Resolution 96-312 was adopted instructing the
Finance Director to research alternative methods for financing the
$1, 450, 000 in EMS start up costs and additional costs related to a
CAD/RMS upgrade for EMS business analysis . Since the additional
costs related to a CAD/RMS upgrade for the EMS business analysis
have not been identified, they are not included in this financing
plan. Once these costs are identified, a financing plan will be
brought back to the Mayor and Common Council for approval .
The recommended sources for the $1,450, 000 loan to the EMS
Transport Enterprise Fund to cover the start up costs are listed on
Attachment 1 . For the most part, the four funds are used for
capital projects and were selected based on an analysis of cash
balances at June 30, 1996, and a five year historical analysis of
cash balances in these funds . Attachment 2 provides a summary of
the cash balance analysis for each of the four funds .
Based on .the cash analysis for each fund it is anticipated there
will not be any negative impacts to currently approved and future
projects for each fund. In order to help guarantee against any
negative impacts or cash flow shortages throughout the life of the
loan, it is being requested that the Finance Department be given
flexibility in how to apply loan payments among each of the four
funds each year. It is also being requested as an additional
guarantee to allow the Finance Department to transfer the loans
among the funds if necessary.
Attachment 3 provides an analysis of the projected cash that will
be available from the EMS Transport Enterprise Fund based on the
EMS Transport Feasibility Study dated September, 1996 . Based on
the estimated funds available in Attachment 3 to repay the loan, an
amortization schedule of the EMS Transport start up loan was
prepared (see Attachment 4) . Using the current LAIF rate of 5 . 5o
for the interest and assuming the loan would begin on April 1,
1997, it will take seven years for the EMS Transport Enterprise
Fund to repay the original principal of $1, 450, 000 plus total
interest of $212, 405, for a combined amount of $1, 662, 405 .
In order to have the EMS start up loan paid off in seven years, all
estimated funds available, as indicated in Attachment 3 , must be
used for repayment of the loan. This means the General Fund will,
for seven more years, have to continue to fund all existing Fire
Department costs related to EMS. The General Fund would still get
the immediate benefit of the $480, 830 for overhead each year.
Since EMS Transport is a new business . venture, there is
insufficient collateral to back the loan. Therefore, it is being
recommended that the policy be approved for the General Fund to
guarantee the loan.
75-0264
Attachment 1
CITY OF SAN BERNARDINO
RECOMMENDED SOURCE OF EMS TRANSPORT LOANS
OCTOBER 10, 1996
Fund No. Percent Amount
Sewer Line Construction 245 32% 464,000
Sewer Line Maintenence 132 24% 348,000
Storm Drain Construction 248 24% 348,000
Park Construction 243 20% 290,000
1,450,000
O 00 (O M �
M
p) V T N 'T
N r r- (O Lf>
r Cn T L!)
� I 00 N O
Q <- LC) N
O O O O
m CD N � O O O O
_m M O O
j = N O O
jy N r Ln CM
O O 00 O
LO O � LO
3 V O c- v
O 00 O Ln M
J N O (D
r C7 1-
(3) 00 fA
z O d CY)Z L j CO 00 L6 C'7
W O CF) N � O (Op
Z (n r C
W
Q Z Z
Q 0 0 0 0
C) O O o
w = rn o 0 0 0
CO U) � T (h o LO Iq o Cf U rn o_
Q
3
LL T r r L() M U)
LL
W
O < t
O O O O
�T
W
� 0 � O O O O
U L cY) L6 ch r_ rn 'c
d rn N 00 T O O
rn N 0') 00 0
U) T �i cl
2 E
W O
0 0 0
co O O O m
CA O O O
N O O (D �
O (D 'IT I
CA V 00 M
T
(6 C7 C
O
U6
O O
N
O
O O U
O O_ M 0
T
r (O N U
C
LL.
U �
C C
C O O
U N C LL
U
C i C O
C O C L)
C
O
L U U � Un
C J C
C
C C 2 O U
_I O J N
L U L-
3 Y 3 - U
0
u°i a cn v)
Z Juawyoej;y
/ /
k / � / / ƒ e \
/ / % \ 2 °
E / fRt
EL $
U) / /
§ / / \ \ k /_ \ �
k 2 2 §
% / 2 C °
\ \ f
f / U) /
� 6
� � 2
/ d ) � f
U) d & ) a
/ / C) % / / \ / f \ ƒ § / $
2 / 2 / 2 E 2 7 \ o � f 2
/ U / C � � " 3 ƒ k / /
2 u ® u @ 2 §
CUƒ / / ® F--
\
\ ƒ / \ / m .
L / k / k / � / / W -
0 5
/ / \ C) \ / 2 ) / /
g 2 » Q ( # + + + o f / o
< 2 m � # n #
7 % C / /
CD-
U) 0- a CL
w [ o o LU
4-- k k �
/ 2 2 E
/ / / f / 0
/ \ / C) C:) § § &
A A = E
@ 2 0) :3
\ / \ \ \ a & E
E L E E E
Eli uqo e!�«
Attachment 4
CITY OF SAN BERNARDINO
AMORTIZATION OF EMS TRANSPORT START-UP LOAN
FROM FISCAL 1997/98 THRU 2001/02
Payment Interest* Principal Balance
April 1 1997 1,450,000
Dec 31 1997 240,958 39,875 201,083 1,248,917
Jun 30 1998 240,958 34,345 206,613 1,042,304
Dec 31 1998 193,653 28,663 164,990 877,315
Jun 30 1999 193,653 24,126 169,527 707,788
Dec 31 1999 145,965 19,464 126,501 581,287
Jun 30 2000 145,965 15,985 129,980 451,307
Dec 31 2000 96,085 12,411 83,674 367,633
Jun 30 2001 96,085 10,110 85,975 281,658
Dec 31 2001 52,471 7,746 44,725 236,933
Jun 30 2002 52,471 6,516 45,955 190,977
Dec 31 2002 52,471 5,252 47,219 143,758
Jun 30 2003 52,471 3,953 48,518 95,241
Dec 31 2003 49,600 2,619 46,981 48,260
Jun 30 2004 49,600 1,340 48,260 (0)
*Computed based on current LAIF rate of 5.5%