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Mounds View City Council June 9, 2003 <br />Regular Meeting Page 15 <br /> <br /> 1 <br />Council Member Stigney indicated that it looks like the golf course is running with a big deficit 2 <br />and he cannot see that it is practical to continue without the billboards and, if that is the case, 3 <br />then the City should look at alternatives. 4 <br /> 5 <br />G. Resolution 6029, a Resolution Rescinding Resolution 6001 and Reauthorizing 6 <br />Purchase of Golf Cars 7 <br /> 8 <br />Golf Course Manager Burg indicated that as Staff proceeded with the lease agreement the City 9 <br />Attorney reviewed it and determined that it was a lease to purchase and the City would have to 10 <br />go out for bonding. 11 <br /> 12 <br />City Attorney Riggs indicated that it was a true lease purchase but it is tax exempt so bonding is 13 <br />required which would require a true bond opinion for that type of financing. 14 <br /> 15 <br />Mayor Linke indicated the proposal is to purchase the carts through an internal City loan doing in 16 <br />order to save the interest. 17 <br /> 18 <br />Finance Director Hansen indicated that buying the carts outright is the lowest cost and the carts 19 <br />are profit makers so he feels this is the best approach to getting the carts at the least cost to the 20 <br />City. He then commented that he understands that interfund loans are an issue with Council but 21 <br />it is the best way to purchase the golf carts without paying someone else interest. 22 <br /> 23 <br />Council Member Stigney commented that by borrowing from these funds it restricts the use of 24 <br />the funds for other purposes. 25 <br /> 26 <br />Golf Course Manager Burg indicated that purchasing the carts could save $26,000 over the 27 <br />course of 10 years over leasing them. 28 <br /> 29 <br />Council Member Stigney asked what the time frame for repayment of this loan would be. 30 <br /> 31 <br />Finance Director Hansen indicated he could set up a separate loan for the golf carts and show 32 <br />repayment over four or five years but he does not feel it makes a lot of sense to do so if the other 33 <br />loan continues to grow and this one is paid back. 34 <br /> 35 <br />Council Member Stigney asked what fund the money would come from. 36 <br /> 37 <br />Finance Director Hansen indicated he would recommend the special projects fund as it is the 38 <br />fund best positioned to make a loan. 39 <br /> 40 <br />Council Member Stigney asked how much money is in the special projects fund. 41 <br /> 42 <br />Finance Director Hansen indicated there was approximately $ 2.5 million dollars in the special 43 <br />projects fund. 44 <br /> 45