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• <br />• <br />AGENDA ITEM 1G <br />STAFF ORIGINATOR Al Rolek <br />MEETING DATE 12/14/09 <br />TOPIC Consider Resolution No. 09 -110 Authorizing an Interfund Loan <br />From the Sanitary Sewer Fund to the 2005A G.O. Improvement <br />Debt Service Fund <br />VOTE REQUIRED Simple Majority <br />BACKGROUND <br />During discussions regarding the Legacy at Woods Edge development, staff informed the City <br />Council of delinquencies in the collection of special assessments levied against the project. The <br />special assessments finance the installation of public improvements in the development and <br />their collection is needed to service the outstanding debt on those improvements. Due to the <br />delinquency of special assessments on the developed parcels, a cash deficit now exists in the <br />debt service fund. <br />After exploring financing alternatives, and in light of existing economic conditions, staff has <br />recommended that interfund loans from the Sanitary Sewer fund be authorized at necessary <br />intervals to service the outstanding debt until the delinquent special assessments are collected <br />or until alternative financing solutions are available, at which time the loans will be repaid. <br />Resolution No. 09 -110 authorizes an interfund loan from the Sanitary Sewer Fund to the 2005A <br />G.O. Improvement Debt Service Fund to temporarily service the outstanding debt and eliminate <br />the existing cash deficit. Staff recommends the approval of this resolution. <br />OPTIONS <br />1. Adopt Resolution No. 09 -110. <br />2. Refer back to Staff for further consideration. <br />3. Deny Resolution No. 09 -110. <br />RECOMMENDATION <br />Option 1 <br />