2012.08.20 RESO 2012-26 - Laserfiche WebLink

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RESOLUTION 2012 — 26 RESOLUTION RATIFYING OVERNIGHT INTERFUND LOAN FROM THE GENERAL FUND TO THE TAX INCREMENT COLLECTION FUND THAT OCCURRED DECEMBER 31, 2010 AND PROVIDING TERMS FOR THE REPAYMENT OF SAID LOAN WHEREAS, in 2000, the City of Hugo issued $1,885,000 Taxable General Obligation Tax Increment Bonds, the proceeds of which were used for development of the Bald Eagle Industrial Park; and WHEREAS, on November 1, 2010, the City Council, based on the belief that sufficient tax increment would be available, adopted a resolution providing for the early redemption of said bonds; and WHEREAS, the amount of delinquent tax increment at December 31, 2010, resulted in a negative fund balance in the Tax Increment Collection Fund; and WHEREAS, on December 31, 2010, an overnight interfund loan in the amount of $35,517.01 was made from the General Fund to the Tax Increment Collection Fund to eliminate the negative fund balance in said fund; and WHEREAS, Minnesota Statutes 469.178 require that for all post -1979 TIF districts, all loans from the general (or other) fund to finance TIF expenditures must be authorized by resolution that sets the (1) principal amount of the loan, (2) the interest rate, and (3) the maximum term. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Hugo, Washington County, Minnesota, as follows: The overnight interfund loan from the General Fund to the Tax Increment Collection Fund that occurred on December 31, 2010, is hereby ratified pursuant to the following terms: 1. Principal amount of the overnight loan: $35,517.01 2. Interest rate: 0.00% 3. Maximum term: Overnight (repayment on January 1, 2011) Upon roll call, the following Members voting AYE: Haas, Klein, Petryk, Weidt, Miron Upon roll call, the following Members voting NAY: None Whereupon said resolution was declared passed and adopted this 20th day of August, 2012. ----- — F iron, Mayor ATTEST: ----------- --- - ---------------- Michele Lindau, City Clerk