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WS –Item 3 WORK SESSION STAFF REPORT Work Session Item 3 Date: December2, 2013 To: City Council From: Al Rolek Re: Interfund Loan Repayment -Recreation Complex Land Background In 1999 the City purchased 67 acres of land at the intersection of Birch Street and Centerville Road for the purpose of developing a recreation complex. The funding to purchase the property came through an interfund loan from the Area and Unit Fund. In 2006 the City Council adopted Resolution 06-212 providing fora payment plan to retire the interfund loan. The plan called for funding to repay the loan to be shared 50% from the Park Dedication Fund and 50% from the General Fund. During the recent recession development activities slowed severely and funding to the Park Dedication Fund dried up as a result. The fund has exhausted its reserve balances, thereby leaving the repayment of the interfund loan 100% from the General Fund beginning in 2012. Requested Council Direction Since the terms of the repayment schedule stated in Resolution 06-212 cannot be fulfilled staff is looking for City Council direction on how to proceed with the repayment of the loan. Alternatives include 1) continuing to repay the loan 100% from General Fund Reservesuntil sufficient funds are received in the Park Dedication Fund, 2) pay the 50% share from the General Fund Reserves (1/2 the annual payment), 3) suspend the repayment program until sufficient funds are received in the Park Dedication Fund, 4) forgive the remaining balance of the interfund loan.Based upon the outcome of this discussion staff will place an action item on the December 9 agenda, if necessary. Attachments Resolution 06-212