HomeMy WebLinkAboutResolution 23-133 CITY OF LINO LAKES
RESOLUTION NO. 23-133
AMENDING THE INTERFUND LOAN FOR FIRE APPARATUS
WHEREAS, the City contracted with Custom Fire to purchase two pumper tanker fire
trucks in the amount of$2,262,000, and
WHEREAS, the City will finance the purchase through an interfund loan. Interfund loans
eliminate bond issuance costs, bypass continuing disclosure and post issuance compliance
requirements, and allow for better control of the interest rate on the loan, and
WHEREAS, the City originally approved the interfund loan in the amount of $2,262,000
with Resolution No. 22-103, although is decreasing the amount of the loan to reflect a use of
Public Safety Aid.
WHEREAS, the City will loan $2,032,706 from the Sewer Fund (602) to the Capital
Equipment Replacement Fund (402) for a ten-year loan term with an interest rate of 1.00%. The
annual payment will be added to the property tax levy for payable years 2024-2033. The interest
rate is based upon investment earning assumptions in the City's most recent utility rate study.
NOW,THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota approval
of the interfund loan in the amount of$2,032,706 from the Sewer Fund to the Capital Equipment
Replacement Fund:
Principal Total Pmt/
Date Issuance Due Interest Due Balance Levy
12/31/2023 $2,032,706 $ - $ - $2,032,706 $ -
12/31/2024 $ - $ 203,271 $ 20,327 $1,829,435 $ 223,598
12/31/2025 $ - $ 203,271 $ 18,294 $1,626,164 $ 221,565
12/31/2026 $ - $ 203,271 $ 16,262 $1,422,893 $ 219,533
12/31/2027 $ - $ 203,271 $ 14,229 $ 1,219,622 $ 217,500
12/31/2028 $ - $ 203,271 $ 12,196 $1,016,351 $ 215,467
12/31/2029 $ - $ 203,271 $ 10,164 $ 813,080 $ 213,435
12/31/2030 $ - $ 203,270 $ 8,131 $ 609,810 $ 211,401
12/31/2031 $ - $ 203,270 $ 6,098 $ 406,540 $ 209,368
12/31/2032 $ - $ 203,270 $ 4,065 $ 203,270 $ 207,335
12/31/2033 $ - $ 203,270 $ 2,033 $ - $ 205,303
BE IT FURTHER RESOLVED Public Safety Aid dollars in the amount of $229,294 will be
transferred to the Capital Equipment Replacement Fund (402)to contribute to the funding of the
two fire trucks.
Adopted by the City Council of the City of Lino Lakes this 11th day of December, 2023.
P-.
Rob Rafferty, Mayor
ATTEST:
Jolleen Chaika, City Clerk