HomeMy WebLinkAbout2010-108 Council Resolution•
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Council Member Gallup introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 10 -108
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
Municipal Buildings and Facilities 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, 2010:
Increase
2005A G.O. Imp Fund (327) $534,485
Mun Buildings & Facilities Fund (401)
Decrease
$534,485
The motion for the adoption of the foregoing resolution was duly seconded by Council
Member Roeser and upon vote being taken thereon, the following voted in favor
thereof:
Gallup, Roeser, Rafferty, O'Donnell, Reinert
The following voted against same:
Whereupon° said resolution was declared duly passed and adopted.
Adopted by the City Council of Lino Lakes this 13th day o
u i. ne Bartell, Ci' Clerk
10
Jeff Rei - ayor
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AGENDA ITEM 1F
STAFF ORIGINATOR Al Rolek
MEETING DATE 12/13/10
TOPIC Consider Resolution No. 10 -108 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 Tight of existing economic conditions, staff has
recommended that interfund loans from the Municipal Buildings and Facilities 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. 10 -108 authorizes an interfund loan from the Municipal Buildings and Facilities
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. 10 -108.
2. Refer back to Staff for further consideration.
3. Deny Resolution No. 10 -108.
RECOMMENDATION
Option 1