00-23 - 04-18 - Storm Sewer Impovement Bond Debt Service Fund and Terms Resolution 00-23 April 18, 2000
Member LeSuer introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING AN INTER-FUND LOAN FOR THE
STORM SEWER IMPROVEMENT BOND DEBT SERVICE FUND
AND SETTING THE TERMS OF THIS INTER-FUND LOAN
WHEREAS, the City's 1987 Storm Sewer Improvement Refunding Bonds mature in
2003; and
WHEREAS, the City Council desires to maintain a relatively level annual levy to
finance the debt service on these bonds until maturity; and
WHEREAS, the debt service schedule on these bonds will result in a deficit situation
in the Storm Service Debt Service Fund in 2000 and 2001, if interim financing is not
obtained.
NOW, THEREFORE BE IT RESOLVED, that the City Council authorizes an inter-fund
loan in the amount of $700,000 from the Water & Sewer Utility Reserve Fund (Fund 27) to
the Storm Sewer Improvement Bond Debt Service Fund (Fund 51).
BE IT FURTHER RESOLVED that the City Council sets the term of this inter-fund loan
to be three years, with the principal amount of this loan to be paid off in two equal annual
installments of $350,000 each on May 1, 2002 and May 1, 2003. The interest on the
unpaid balance of this inter-fund loan will accrue annually at the rate of 6%.
Mary E. Aderson, Mayor
ATTEST:
,�" �,_ ),,7��
Shirley J. Ion, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Micks
and upon a vote being taken thereon, the following voted in favor thereof: Anderson,
Bakken, Johnson, LeSuer, and Micks; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.