HomeMy WebLinkAbout2015-147 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 15-147
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 The City of Lino Lakes,
that the following interfund loan be authorized and recorded effective December 31, 2015:
Increase
2005A G.O. Imp Fund (327) $382,000.00
Municipal Bldgs & Facilities Fund (401)
Decrease
$382,000.00
Adopted by the Council of the City of Lino Lakes this 14th day of December, 2015.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Kusterman and was duly seconded by Council Member Roeser and upon
vote being taken thereon, the following voted in favor thereof:
Kusterman, Roeser, Rafferty, Stoesz, Reinert
The following voted against same:
none
ATTEST:
an e Bartell, City lerk
CITY COUNCIL
AGENDA ITEM 1K
STAFF ORIGINATOR: Sarah Cotton
MEETING DATE: December 14, 2015
TOPIC: Consider Resolution No. 15-147, Authorizing an Interfund Loan
from the Municipal Buildings and Facilities Fund to the 2005A
G.O. Improvement Debt Service Fund
VOTE REQUIRED: 3/5
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.
Resolution No. 15-147 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 No. 15-147.
ATTACHMENTS
Resolution No. 15-147, Authorizing an Interfund Loan from the Municipal Buildings and
Facilities Fund to the 2005A G.O. Improvement Debt Service Fund