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RESOLUTION NO. 5372 <br /> Authorizing interfund advance from Fund to Golf Course. <br /> CITY OF MOUNDS VIEW <br /> County of Ramsey <br /> State of Minnesota <br /> WHEREAS, the City issued bonds in 1994 to construct a golf course and driving range which have <br /> several covenants including requiring the City to maintain bond reserves of approximately$309,000. <br /> WHEREAS, the City constructed a golf course and later pursued legal action to correct construction <br /> deficiencies; and <br /> WHEREAS,the City settled its lawsuit out of court at an amount less than the cost to pay the associated <br /> legal fees and correct the construction deficiencies; and <br /> WHEREAS, the golf course has had interfund borrowings in the past but presently does not have <br /> adequate cash to meet its bond covenants. <br /> NOW THEREFORE,BE IT RESOLVED by the City Council of the City of Mounds View that City <br /> authorizes up to an additional$200,000 of interfund loans to be available to the golf course as is needed <br /> to meet existing bond covenants. <br /> BE IT FURTHER RESOLVED that the actual amount to be made available on an annual basis shall <br /> not exceed the amount required to be able to maintain the City's required bond reserves. <br /> BE IT FURTHER RESOLVED that the source of the interfund loan shall be the Fund <br /> and that interest shall be calculated based upon simple interest of.5%. <br /> BE IT FURTHER RESOLVED that the golf course shall repay such amounts plus accrued interest, the <br /> earlier of: 1)when such funds are no longer needed to meet the required bond covenants;or 2)within two <br /> years after all the bonds have been repaid(year 2016). <br /> Said resolution was declared to have been duly passed and adopted this 27th day of September 1999. <br /> ATTEST: <br /> Mayor <br /> (SEAL) <br /> City Administrator <br />