HomeMy WebLinkAboutRES 21-056 AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH RESURFACING AND PAINTING OF THE CITY HALL TENNIS COURTSCITY 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.
Adopted this 13th day of July, 2021.
ATTEST:
Reviewed for administration:
C✓,
Charlie Yunker, City Manager
Exhibit A
Tennis Court Project
February 2021
Interfund Loan repayment schedule Levy Phase - In
Cumulative Funds
Payment Annual Annual Generated for
Year Principal Principal Interest Payment Levy Year Parks
2022 180,000 - 4,500 4,500 5,000 5,000
2023 184,500 - 4,613 4,613 10,000 15,000
2024 189,113 4,728 4,728 15,000 30,000
2025 193,840 10,000 4,846 14,846 20,000 35,154
2026 183,840 12,500 4,596 17,096 25,000 43,058
2027 171,340 15,000 4,284 19,284 30,000 53,774
2028 156,340 16,000 3,909 19,909 35,000 68,866
2029 140,340 17,000 3,509 20,509 40,000 88,357
2030 123,340 17,000 3,084 20, 084 45,000 113,274
2031 106,340 17,000 2,659 19,659 50,000 143,615
2032 89,340 17,000 2,234 19,234 50,000 174,382
2033 72,340 18,000 1,809 19,809 50,000 204,573
2034 54,340 18,000 1,359 19,359 50,000 235,215
2035 36,340 18,000 909 18,909 50,000 266,306
2036 18,340 18,340 459 18,799 50,000 297,508
Total 193,840 47,492 241,333 525,000 297,508
Notes:
1. No note payments in 2022-2024, levy proceeds retained by Parks Improvement Fund
2. Interest rate for Interfund loan 2.5%
3. Phased in Park Improvement levy reaches 50,000 annually in year 10
4. Interest earned by lending fund $47,492