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MEMO TO: MAYOR AND CITY COUNCIL nn <br />FROM: FINANCE DIRECTOR -TREASURER BRAGER CY <br />f>- i <br />DATE: SEPTEMBER 2, 1987 <br />SUBJECT: FINANCING OF PUBLIC WORKS GARAGE ADDITION <br />Now that bids have been received for the Public Works Garage <br />Addition a review of the financing previously agreed upon is <br />in order. Alloction of costs is based upon total estimated <br />project costs of 5292,000. <br />1) Closing the Public Improvement Fund and using the <br />proceeds of $181,190. A proposed ordinance to <br />close the Fund has been submitted for your consi- <br />deration. <br />2) Closing the Water Bond Fund and using the proceeds 1` <br />of $26,001. The Water Bond Fund is a debt service aj <br />fund whose bonds have previously been paid in fuli. <br />The funds remaining in the Fund may be used for any <br />public purpose. Some of these funds were previously <br />used for a debt study by Voto, Tautges, Redpath aad <br />Company, Ltd. which ultimately led to the cash <br />defeasance of five of our outstanding bond issues. <br />The fund may be closed by resolution and its monies <br />transferred to finance the garage addition. <br />3) The V7aeer and Sewer Funds could each contribute <br />$41,905 to finance the remaining monies needed for <br />Garage Addition. The rationale for this is that <br />equipment and vehicles used in Water and Sewer <br />operations will be stored in the Garage Addition. <br />After the Public Improvement Fund is closed by Ordinance <br />No. 427 several other resolutions should be considered to <br />complete this financing plan. These are: <br />`s <br />1) Resolution 2229 establishes a Gc-age Addition Fund <br />to account for costs of the construction of the <br />addition. F <br />2) Resolution 2230 closes the Water Bond Fund and <br />transfers all assets of the Fund to the City's <br />General Fund. <br />3) Resolution 2231 transfers from the General Fund to <br />the Garage Addition Fund money equivalent to the <br />fund balances of both the Public Improvement Fund <br />and the Water Bond Fund. Since the fund balance of <br />each fund consisted of cash plus special assessments <br />receivable, the General Fund is, in effect, buying <br />