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• <br />• <br />AGENDA ITEM 1G <br />STAFF ORIGINATOR Al Rolek <br />MEETING DATE 11/28/11 <br />TOPIC Consider Resolution No. 11 -121 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 />As the City Council Is aware, the property for the Legacy at Woods Edge project has gone tax <br />forfeit. As such, delinquencies in the collection of special assessments levied against the <br />property have been unpaid and, in fact, the assessments have been de- certified. The special <br />assessments financed the installation of public improvements in the development and were <br />needed to service the outstanding debt on those improvements. Due to the tax forfeit status of <br />the property and the delinquency of special assessments on the developed parcels, a cash <br />deficit now exists in the debt service fund. <br />Since 2008 staff has recommended that interfund loans be authorized at necessary intervals to <br />service the outstanding debt until the delinquent special assessments are collected or until <br />alternative financing solutions are available, at which time the loans will be repaid. Most <br />recently the Municipal Buildings and Facilities fund has been the source of the interfund loans. <br />Resolution No. 11 -121 authorizes an interfund loan from the Municipal Buildings and Facilities <br />Fund to 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 resolution. <br />OPTIONS <br />1. Adopt Resolution No. 11 -121. <br />2. Refer back to Staff for further consideration. <br />RECOMMENDATION <br />Option 1 <br />