HomeMy WebLinkAbout2011-121 Council Resolution•
Council MemberGallup introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 11 -121
RESOLUTION AUTHORIZING AN INTERFUND LOAN FROM THE MUNICIPAL
BUILDINGS AND FACILITIES 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.
S 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 Decrease
2005A G.O. Imp Fund (327) $535,020.00
Mun Buildings & Facilities Fund (401) $535,020.00
The motion for the adoption of the foregoing resolution was duly seconded by Council
Member0' Donnelland upon vote being taken thereon, the following voted in favor
thereof:
Gallup, O'Donnell, Rafferty, Roeser, Reinert
The following voted against same:
none
Whereupon said resolution was declared duly passed and adopted.
Adopted by the City Council of Lino Lakes this 28th day of November 2011.
Jeff Rein =' , raj/or
-\10
Juli. ne Bartell, City •lerk
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AGENDA ITEM 1G
STAFF ORIGINATOR Al Rolek
MEETING DATE 11/28/11
TOPIC Consider Resolution No. 11 -121 Authorizing an Interfund Loan
From the Sanitary Sewer 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 has gone tax
forfeit. 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 tax forfeit status of
the property and 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.
Resolution No. 11 -121 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. 11 -121.
2. Refer back to Staff for further consideration.
RECOMMENDATION
Option 1