15-70 - 08-18 - Authorize Interfund Loan From Capital Resolution 15-70 August 18, 2015
Member Fonnest introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING INTERFUND LOAN FROM CAPITAL
IMPROVEMENT FUND TO WATER AND SEWER FUND FOR 36-INCH
PIPE RECONSTRUCTION
WHEREAS, the City of Golden Valley is a member of a joint powers entity called the
Golden Valley-Crystal-New Hope Joint Water Commission (JWC), initiated in 1963; and
WHEREAS, the City Council attended tri-City meetings on March 31, 2015 work
sessions and approved Resolution 15-31 in support of making the improvements; and
WHEREAS, financing of the rehabilitation of a 36-inch Pipe along County Road 9
will be made by the Water and Sewer Fund with an interfund loan from the Capital
Improvement Fund; and
WHEREAS, a rate increase of 30 cents per thousand gallons of water will be added
to the current rate and used to help fund the loan; and
WHEREAS, the 36 inch pipe rehabilitation will be funded by the cities of Golden
Valley, Crystal and New Hope serving as the Joint Water Commission; and
WHEREAS, the City Council of Golden Valley has approved the loan for
improvements in section 1.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Golden
Valley, as follows:
1. The Capital Improvement Fund shall receive payments with 2.6% interest from the
Water and Sewer Utility Fund. The payments are due by October 31 in each year
below:
Date Principal Interest Total
10/31/2016 $180,000 46,800 226,800
10/31/2017 180,000 42,120 222,120
10/31/2018 180,000 37,440 217,440
10/31/2019 180,000 32,760 212,760
10/31/2020 180,000 28,080 208,080
10/31/2021 180,000 23,400 203,400
10/31/2022 180,000 18,720 198,720
10/31/2023 180,000 14,040 194,040
10/31/2024 180,000 9,360 189,360
10/31/2025 180,000 4,680 184,680
TOTAL $1,800,000 $257,400 $2,057,400
Resolution 15-70 - continued
2. The Water and Sewer Fund will be responsible to make payment for their share of
Improvements to the 36-inch pipe to the Golden Valley-Crystal-New Hope Joint
Water Commission from the loan from the Capital Improvement Fund.
Shepa d M. Harris, Mayor
ATTEST:
Kristine A Cue e, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Clausen
and upon a vote being taken thereon, the following voted in favor thereof: Snope, Clausen,
Fonnest and Schmidgall and the following voted against the same: none
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and his signature attested by the City Clerk.