HomeMy WebLinkAbout2008-137 Council Resolution•
Council Member stoli-z
introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 08 -137
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, 2008:
Increase Decrease
2005A G.O. Imp Fund (327) $25,000
Sanitary Sewer Fund (602)
$25,000
The motion for the adoption of the foregoing resolution was duly seconded by Council
Member Gallup and upon vote being taken thereon, the following voted in favor
thereof:
Stoltz, Gallup, Reinert, O'Donnell, 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 8th day of December, 2008.
Ju is ne Bartell, City C
Berge on, 'ayor
•
•
•
AGENDA ITEM 1F
STAFF ORIGINATOR: Al Rolek
MEETING DATE: 12/8/08
TOPIC:
Consider Resolution No. 08 -137 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 this year 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. Up until the current time debt service has
been managed through prepayments of special assessments on the developed parcels.
However, a cash deficit now exists in the debt service fund of $23,931.
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. 08 -137 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. 08 -137.
2. Refer back to Staff for further consideration.
3. Deny Resolution No. 08 -137.
RECOMMENDATION
Option 1