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CITY COUNCIL AGENDA ITEM lE STAFF ORIGINATOR Al Rolek MEETING DATE December 8, 2014 TOPIC Consider Resolution No. 14-145 Authorizing an Interfund Loan from the Municipal Buildings and Facilities Fund to the 2005A G.O. Improvement Debt Service Fund VOTE REQUIRED Simple Majority BACKGROUND As the City Council is aware, the property for the Legacy at Woods Edge project went tax forfeit in 2010. As such, delinquencies in the collection of special assessments levied against the property have been unpaid and, in fact, the assessments have been de -certified. The special assessments financed the installation of public improvements in the development and were needed to service the outstanding debt on those improvements. Due to the delinquency of special assessments on the developed parcels, a cash deficit now exists in the debt service fund. Since 2008 staff has recommended that interfund loans be authorized at necessary intervals to service the outstanding debt until the delinquent special assessments are collected or until alternative financing solutions are available, at which time the loans will be repaid. Most recently the Municipal Buildings and Facilities fund has been the source of the interfund loans. Special legislation approved in 2011 allows the city to use tax increments from TIF District 1-10 toward the retirement of this debt, reducing the burden on the Municipal Buildings and Facilities fund. Resolution No. 14-145 authorizes an interfund loan from the Municipal Buildings and Facilities Fund to the 2005A G.O. Improvement Debt Service Fund to temporarily service the unfunded outstanding debt and eliminate the existing cash deficit. RECOMMENDATION Staff recommends the approval of Resolution 14-145. ATTACHMENTS Resolution 14-145.