HomeMy WebLinkAbout2012-120 Council Resolution•
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CITY OF LINO LAKES
RESOLUTION NO. 12 -120
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 staff's 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, 2012:
Increase Decrease
2005A G.O. Imp Fund (327) $533,388.00
Mun Buildings & Facilities Fund (401)
$533,388.00
Adopted by the Council of the City of Lino Lakes this 10th day of December, 2012.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Roeser and was duly seconded by Council Member Rafferty and upon vote being
taken thereon, the following voted in favor thereof:
Roeser, Rafferty, O'Donnell, Stoesz, Reinert
The following voted against same:
none
ATTEST:
Juli.nne Bartell, City C erk
STAFF ORIGINATOR
MEETING DATE
TOPIC
VOTE REQUIRED
BACKGROUND
CITY COUNCIL
AGENDA ITEM IT
Al Rolek
December 10, 2012
Consider Resolution No. 12 -120 Authorizing an Interfund Loan
From the Sanitary Sewer Fund to the 2005A G.O. Improvement
Debt Service Fund
Simple Majority
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.
Special legislation approved in 2011 allows the city to use tax increments from TIF District 1 -10
toward the retirement of this debt, reducing the burden on the Municipal Buildings and Facilities
fund.
Resolution No. 12 -120 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.
RECOMMENDATION
Staff recommends the approval of Resolution 12 -120.
ATTACHMENTS
Resolution 12 -120.
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