HomeMy WebLinkAbout2025-016CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO.2025-016
RESOLUTION APPROVING INTERFUND LOAN AND FUND TRANSFERS FOR
LAND PURCHASE
WHEREAS, the City Council has approved for purchase two properties for the purpose
of future development as park lands and ballfields (PlDs 15.029.21.41.0001 &
15.029.21.42.0004 ; and
WHEREAS, the City Council has determined that said purchase shall be paid via the
combination of funds
1. $ 1,000,000 provided by the Royal Golf development for the purpose of ballfields
(originally deposited in the Park Dedication Fund).
2. $ 2,000,000 interfund loan from the Sewer Fund
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Lake Elmo,
Washington County, Minnesota, as follows;
1. Fund Transfer: A transfer of $ 1,000,000 shall be made from the Park Dedication Fund (Fund
404) to the newly established Ballfield Fund (Fund 412).
2. Interfund Loan: Interfund loans (the "Loan") in the amount of $2,000,000 shall be made from
the Sewer Fund to the Ballfield Fund.
3. Terms: The Loan shall bear simple interest in the amount of 5% annually starting August 1,
2025 and shall mature on July 31, 2035.
4. Repayment: The Loan shall be repaid with transfers from the Ballfield Fund to the Sewer
Fund as follows;
Payment Date
Principal
Interest
Total Payment
7/31/2026
200,000
100,000
300,000
7/31/2027
200,000
90,000
290,000
7/31/2028
200,000
80,000
280,000
7/31/2029
200,000
70,000
270,000
7/31/2030
200,000
60,000
260,000
7/31/2031
200,000
50,000
250,000
7/31/2032
200,000
40,000
240,000
7/31/2033
200,000
30,000
230,000
7/31/2034
200,000
20,000
220,000
7/31/2035
200,000
10,000
210,000
Total Payments
2,000,000
550,000
2,550,000
5. Planned Levies: To fund such repayment, levies in the amount of the Total Payment above
shall be planned for the year in which the payment is due. Each levy should be incorporated
into the annual Budget and Tax Levy for any given year and deposited into the Ballfield Fund.
Failure to levy the planned amounts shall result in the delay of repayment back to the Sewer
Fund until such time as other payment arrangements are made.
6. Prepayment: The principal sum and all accrued interest payable under this Interfund Loan
are prepayable in whole or in part at any time by the City without premium or penalty. No
partial prepayment shall affect the amount or timing of any other regular payment otherwise
required to be made under this Interfund Loan.
7. Amendments: The City may amend the terms of the Interfund Loan at any time by resolution
of the City Council, including a determination to forgive the outstanding principal amount and
accrued interest to the extent permissible under law.
8. Note: The loan shall not be evidenced by a note or writing other than this resolution.
ADOPTED, by the Lake Elmo City Council on the 181" day of February, 2025.
Charles Cadenhead
Mayor
ATTEST:
Wohnson