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• <br />• <br />• <br />Memorandum <br />To: Mayor and Council Members <br />From: Al Rolek <br />Date: 12/4/08 <br />Re: Agenda Items 1D — 1G <br />Gordon informed me that there were questions at the work session on Monday evening <br />concerning the transfer resolutions included on the consent agenda. We have typically <br />included these items on the consent agenda each year as they are considered <br />housekeeping matters that require Council action. <br />Items 1D & lE are transfers to debt service funds from the Area and Unit fund. The debt <br />used to fund these projects, which were undertaken in 1996 — 1998, was to be retired with <br />special assessments levied on benefitting properties. City policy allows that special <br />assessments will be deferred on. undeveloped parcels or on parcels not connecting to city <br />services until such time as they connect or the property is developed. While some <br />properties were assessed at the time the projects were undertaken, many of the <br />assessments were deferred. The Area and Unit funds are dedicated to the repayment of <br />the outstanding debt until such time as the assessments are actually levied on these <br />properties. This action is to transfer the necessary funding to the proper debt service fund <br />to retire the annual debt. <br />Item 1F is establishing a temporary interfund loan to finance shortfalls in the debt service <br />fund for the Legacy at Woods Edge improvements. You will recall that there are special <br />assessments levied on this project to repay the debt service, however, delinquencies in the <br />payment of the specials has created a shortfall in funding. Staff has explored may options <br />in restructuring the outstanding debt, but in the existing economic environment the <br />markets are not conducive to this course of action. Staff has recommended, and Council <br />has concurred, the for the near term, interfund loans from the Sanitary Sewer fund be <br />used to finance the shortfall. These loans will be repair upon the special assessment <br />delinquencies being brought current or an alternative financing mechanism is put into <br />