HomeMy WebLinkAbout2009-110 Council Resolution•
Council Member
Reinert
introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 09-110
RESOLUTION AUTHORIZING AN INTERFUND LOAN FROM THE SANITARY
SEWER FUND TO THE 2005A G.O. IMPROVEMENT DEBT SERVICE FUND
WHEREAS, the 2005A G.O. Improvement Debt Service Fund currently has a cash
deficit due to delinquencies in the collection of special assessments, and
WHEREAS, an interim source of financing is necessary to service the outstanding debt,
and
WHEREAS, it is staffs recommendation that an interim interfund loan be made from the
Sanitary Sewer Fund until the delinquent special assessments are collected or
an alternative financing source is established, at which time the interfund loan
will be repaid.
NOW, THEREFORE BE IT RESOLVED by the City Council of Lino Lakes, that the
following interfund loan be authorized and recorded effective December 31, 2009:
Increase Decrease
2005A G.O. Imp Fund (327) $534,110
Sanitary Sewer Fund (602) $534,110
The motion for the adoption of the foregoing resolution was duly seconded by Council
Member Ga 1 1 and upon vote being taken thereon, the following voted in favor
thereof:
Reinert, Gallup, O'Donnell, Roeser, Bergeson
The following voted against same:
none
Whereupon said resolution was declared duly passed and adopted
Adopted by the City Council of Lino Lakes this 14th day of December 2009.
• Julia ► ne Bartell, City le
Joh :erg- 'on, k1 ayor
•
•
AGENDA ITEM 1G
STAFF ORIGINATOR Al Rolek
MEETING DATE 12/14/09
TOPIC Consider Resolution No. 09 -110 Authorizing an Interfund Loan
From the Sanitary Sewer Fund to the 2005A G.O. Improvement
Debt Service Fund
VOTE REQUIRED Simple Majority
BACKGROUND
During discussions regarding the Legacy at Woods Edge development, staff informed the City
Council of delinquencies in the collection of special assessments levied against the project. The
special assessments finance the installation of public improvements in the development and
their collection is 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.
After exploring financing alternatives, and in light of existing economic conditions, staff has
recommended that interfund loans from the Sanitary Sewer fund 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.
Resolution No. 09 -110 authorizes an interfund loan from the Sanitary Sewer Fund to the 2005A
G.O. Improvement Debt Service Fund to temporarily service the outstanding debt and eliminate
the existing cash deficit. Staff recommends the approval of this resolution.
OPTIONS
1. Adopt Resolution No. 09 -110.
2. Refer back to Staff for further consideration.
3. Deny Resolution No. 09 -110.
RECOMMENDATION
Option 1