HomeMy WebLinkAbout2013-128 Council Resolution•
•
CITY OF LINO LAKES
RESOLUTION NO. 13 -128
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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, that the following
interfund loan be authorized and recorded effective December 31, 2013:
Increase Decrease
2005A G.O. Imp Fund (327) $97,640.00
Mun Buildings & Facilities Fund (401)
$97,640.00
Adopted by the Council of the City of Lino Lakes this 25th day of November, 2013.
The motion for the adoption of the foregoing resolution was introduced by Council Member
0' Donnell and was duly seconded by Council Member Roeser and upon vote being
taken thereon, the following voted in favor thereof:
O'Donnell, Roeser, Rafferty, Stoesz, Reinert
The following voted against same:
none
ATTEST:
Julia e Bartell, City i ler
Jeff Reine , ayor
•
•
•
CITY COUNCIL
AGENDA ITEM 1E
STAFF ORIGINATOR Al Rolek
MEETING DATE December 9.2013
TOPIC Consider Resolution No. 13 -128 Authorizing an Interfund Loan From the
Municipal Buildings and Facilities 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 went tax forfeit in 2010.
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 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. Additionally, the expansion of the Lino Lakes Assisted
Living facility has resulted in the payment of the outstanding special assessments on that parcel,
significantly reducing the amount of interfund loan needed for paying annual debt service.
Resolution No. 13 -128 authorizes an interfund loan from the Municipal Buildings and Facilities Fund to
the 2005A G.O. Improvement Debt Service Fund to temporarily service the unfunded outstanding debt
and eliminate the existing cash deficit.
RECOMMENDATION
Staff recommends the approval of Resolution 13 -128.
ATTACHMENTS
Resolution 13 -128.