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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Brenda Malinowski, Finance Director <br /> DATE: December 16, 2020 <br /> RE: Authorize Interfund Loan for Canabury Condos HIA Debt Service Fund (375) <br /> <br /> <br />ACTION REQUESTED: <br />Authorize an Interfund Loan for the Canabury Condos HIA Debt Service Fund (375) from the <br />Fleur Royale Debt Service Fund (463) in an amount not to exceed $11,000. <br /> <br />BACKGROUND: <br /> <br />An external loan was secured in 2009 to finance the Canabury Condos HIA improvements that <br />were completed that year. This loan had a 12-year term and the final payment on this loan will <br />be paid in 2021. Special assessments were levied in 2009 to the homeowners in the Canabury <br />Condos HIA. These special assessments were levied for 15-years. <br />The timing difference between the repayment of the loan (12 years) and special assessment <br />repayments (15 years) has created a negative cash balance in 2020. This negative cash will <br />likely continue until the final two years that special assessments are received, unless an interfund <br />loan is approved. <br />An analysis of the Canabury Condos HIA Fund is attached. This was completed to confirm that <br />there will be a positive fund balance when the final special assessment payment is received in <br />2024. <br />A small interfund loan is needed to address the negative cash balance that exists in the fund at <br />the end of 2020. There is $11,000 available in the Fleur Royale HIA Debt Service Fund (463) <br />for this interfund loan. <br />STAFF RECOMMENDATION: <br />Authorize and Interfund Loan for the Canabury Condos HIA Debt Service Fund (375) from the <br />Fleur Royale Debt Service Fund (463) in an amount not to exceed $11,000. <br />