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• <br />AGENDA ITEM 1F <br />STAFF ORIGINATOR: Al Rolek <br />MEETING DATE: 12/8/08 <br />TOPIC: Consider Resolution No. 08 -137 Authorizing an Interfund <br />Loan From the Sanitary Sewer Fund to the 2005A G.O. <br />Improvement Debt Service Fund <br />VOTE REQUIRED: Simple Majority <br />BACKGROUND <br />During discussions this year regarding the Legacy at Woods Edge development, staff <br />informed the City Council of delinquencies in the collection of special assessments <br />levied against the project. The special assessments finance the installation of public <br />improvements in the development and their collection is needed to service the <br />outstanding debt on those improvements. Up until the current time debt service has <br />been managed through prepayments of special assessments on the developed parcels. <br />However, a cash deficit now exists in the debt service fund of $23,931. <br />After exploring financing altematives, and in light of existing economic conditions, staff <br />has recommended that interfund loans from the Sanitary Sewer fund be authorized at <br />necessary intervals to service the outstanding debt until the delinquent special <br />assessments are collected or until altemative financing solutions are available, at which <br />time the loans will be repaid. <br />Resolution No. 08 -137 authorizes an interfund loan from the Sanitary Sewer Fund to <br />the 2005A G.O. Improvement Debt Service Fund to temporarily service the outstanding <br />debt and eliminate the existing cash deficit. Staff recommends the approval of this <br />resolution. <br />OPTIONS <br />1. Adopt Resolution No. 08 -137. <br />2. Refer back to Staff for further consideration. <br />3. Deny Resolution No. 08 -137. <br />RECOMMENDATION <br />Option 1 <br />