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CITY OF LAKE ELMO
<br />WASHINGTON COUNTY
<br />STATE OF MINNESOTA
<br />RESOLUTION NO.2025-016
<br />RESOLUTION APPROVING INTERFUND LOAN AND FUND TRANSFERS FOR
<br />LAND PURCHASE
<br />WHEREAS, the City Council has approved for purchase two properties for the purpose
<br />of future development as park lands and ballfields (PlDs 15.029.21.41.0001 &
<br />15.029.21.42.0004 ; and
<br />WHEREAS, the City Council has determined that said purchase shall be paid via the
<br />combination of funds
<br />1. $ 1,000,000 provided by the Royal Golf development for the purpose of ballfields
<br />(originally deposited in the Park Dedication Fund).
<br />2. $ 2,000,000 interfund loan from the Sewer Fund
<br />NOW THEREFORE BE IT RESOLVED by the City Council of the City of Lake Elmo,
<br />Washington County, Minnesota, as follows;
<br />1. Fund Transfer: A transfer of $ 1,000,000 shall be made from the Park Dedication Fund (Fund
<br />404) to the newly established Ballfield Fund (Fund 412).
<br />2. Interfund Loan: Interfund loans (the "Loan") in the amount of $2,000,000 shall be made from
<br />the Sewer Fund to the Ballfield Fund.
<br />3. Terms: The Loan shall bear simple interest in the amount of 5% annually starting August 1,
<br />2025 and shall mature on July 31, 2035.
<br />4. Repayment: The Loan shall be repaid with transfers from the Ballfield Fund to the Sewer
<br />Fund as follows;
<br />Payment Date
<br />Principal
<br />Interest
<br />Total Payment
<br />7/31/2026
<br />200,000
<br />100,000
<br />300,000
<br />7/31/2027
<br />200,000
<br />90,000
<br />290,000
<br />7/31/2028
<br />200,000
<br />80,000
<br />280,000
<br />7/31/2029
<br />200,000
<br />70,000
<br />270,000
<br />7/31/2030
<br />200,000
<br />60,000
<br />260,000
<br />7/31/2031
<br />200,000
<br />50,000
<br />250,000
<br />7/31/2032
<br />200,000
<br />40,000
<br />240,000
<br />7/31/2033
<br />200,000
<br />30,000
<br />230,000
<br />7/31/2034
<br />200,000
<br />20,000
<br />220,000
<br />7/31/2035
<br />200,000
<br />10,000
<br />210,000
<br />Total Payments
<br />2,000,000
<br />550,000
<br />2,550,000
<br />5. Planned Levies: To fund such repayment, levies in the amount of the Total Payment above
<br />shall be planned for the year in which the payment is due. Each levy should be incorporated
<br />into the annual Budget and Tax Levy for any given year and deposited into the Ballfield Fund.
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