RES 21-056 AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH RESURFACING AND PAINTING OF THE CITY HALL TENNIS COURTS

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CITY OF ST. ANTHONY STATE OF MINNESOTA RESOLUTION 21-056 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH RESUFACING AND PAINTING OF THE CITY HALL TENNIS COURTS. BE IT RESOLVED by the City Council (the "Council") of the City of St. Anthony, Minnesota (the "City"), as follows: Section 1. Background. 1.01. The surface condition of the six tennis courts located south of city hall has been steadily deteriorating over the last ten years. The courts were built in 1998 and have been repaired on four different occasions since 2012. 1.02. The 2021 Capital Improvement Plan had scheduled the resurfacing and painting of the City Hall tennis courts as a 2022 project. Given the current conditions of the court and a favorable priced construction environment the City Council approved moving up the project date to 2021 at its 2/9/2021 Council work session 1.03. Also, at the 6/8/2021 work session the Council discussed the use of an interfund loan to finance the estimates project costs of $180,000. Section 2. Terms of Interfund Loan. 2.01. The City hereby authorizes the advance of $180,000 from Public Utilities Infrastructure (PUI) fund to the Parks Improvement Fund. The (PUI) shall reimburse for such advances in accordance with the repayment schedule attached as Exhibit A, with interest at the rate of 2.5%. Which does not exceed the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan is authorized. 2.02. Payments on the outstanding Interfund Loan balance shall be paid annually on each December 31, commencing on 12/31/2025. 2.03. The principal sum and all accrued interest payable under this Interfund Loan are pre -payable 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. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City.