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CITY OF LINO LAKES <br />RESOLUTION NO. 23-133 <br />AMENDING THE INTERFUND LOAN FOR FIRE APPARATUS <br />WHEREAS, the City contracted with Custom Fire to purchase two pumper tanker fire <br />trucks in the amount of $2,262,000, and <br />WHEREAS, the City will finance the purchase through an interfund loan. Interfund loans <br />eliminate bond issuance costs, bypass continuing disclosure and post issuance compliance <br />requirements, and allow for better control of the interest rate on the loan, and <br />WHEREAS, the City originally approved the interfund loan in the amount of $2,262,000 <br />with Resolution No. 22-103, although is decreasing the amount of the loan to reflect a use of <br />Public Safety Aid. <br />WHEREAS, the City will loan $2,032,706 from the Sewer Fund (602) to the Capital <br />Equipment Replacement Fund (402) for a ten-year loan term with an interest rate of 1.00%. The <br />annual payment will be added to the property tax levy for payable years 2024-2033. The interest <br />rate is based upon investment earning assumptions in the City’s most recent utility rate study. <br />NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota approval <br />of the interfund loan in the amount of $2,032,706 from the Sewer Fund to the Capital Equipment <br />Replacement Fund: <br />Date Issuance <br />Principal <br />Due Interest Due Balance <br />Total Pmt/ <br />Levy <br />12/31/2023 2,032,706$ -$ -$ 2,032,706$ -$ <br />12/31/2024 -$ 203,271$ 20,327$ 1,829,435$ 223,598$ <br />12/31/2025 -$ 203,271$ 18,294$ 1,626,164$ 221,565$ <br />12/31/2026 -$ 203,271$ 16,262$ 1,422,893$ 219,533$ <br />12/31/2027 -$ 203,271$ 14,229$ 1,219,622$ 217,500$ <br />12/31/2028 -$ 203,271$ 12,196$ 1,016,351$ 215,467$ <br />12/31/2029 -$ 203,271$ 10,164$ 813,080$ 213,435$ <br />12/31/2030 -$ 203,270$ 8,131$ 609,810$ 211,401$ <br />12/31/2031 -$ 203,270$ 6,098$ 406,540$ 209,368$ <br />12/31/2032 -$ 203,270$ 4,065$ 203,270$ 207,335$ <br />12/31/2033 -$ 203,270$ 2,033$ -$ 205,303$ <br />361