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