HomeMy WebLinkAbout2021-09-28; Public Financing Authority; Resolution 86RESOLUTION NO. 86
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD PUBLIC
FINANCING AUTHORITY OF THE CITY OF CARLSBAD, CALIFORNIA AUTHORIZING
A $47,031,506 TRANSFER FROM THE GENERAL FUND TO THE GOLF COURSE
ENTERPRISE FUND
EXHIBIT 2
WHEREAS, on Aug. 25, 2020, the city's internal auditor presented an internal audit report with a
recommendation for city management to evaluate the balance of the General Fund's advance balance to
the city's Golf Course Enterprise Fund; and
WHEREAS, management evaluated the balance and determined that the repayment of the advance
is not scheduled to happen in the near and foreseeable future; and
WHEREAS, the relevant financial reporting requirements dictate that the loan must be reclassified
as a "Transfer In" to the Golf Course Enterprise Fund and a "Transfer Out" of the General Fund; and
WHEREAS, the city will not have formally forgiven the loans or interest by taking this action; and
WHEREAS, the advance will be disclosed annually in accordance with the accounting rules; and
WHEREAS, the Golf Course Enterprise Fund will begin repaying this loan if and when there are
sufficient funds in the Golf Course Enterprise Fund.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Public Financing
Authority as follows:
1. That the above recitations are true and correct.
2. That the Deputy City Manager, Administrative Services or designee is authorized to allocate
$47,031,506 of nonspendable General Fund balance and transfer out of the General Fund
and into the Golf Course Enterprise Fund an equivalent amount in the fiscal year 2020-21
accounting records.
Sept. 28, 2021 Item #11 Page 9 of 10