HomeMy WebLinkAbout2012.08.20 RESO 2012-26RESOLUTION 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.
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F iron, Mayor
ATTEST:
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Michele Lindau, City Clerk