Loading...
ITEM 3.4� Request for ot CITY 90OF City Council Action MINNESOTA EPA Tl NTIN FORMATION ., ..n_„-n,.v_v., n.. :.:...n...,....,..w .. , r,.,...,,...........................:.:.n. —–.._.:...:.....:.........::,...... , ,..r ,v_, .... , , , ,. _.... , ...r. „ n,r.r . .,_„ ,. ,.,... — ..,.._.-.._._ .. .. , ,, ,_, . , , ., „_„ t ,,,, ........ i li lAT1N DEPART E 1T:REQUESTOR., MEETING DATE: Filnance Finance Director Gruen December 1.0, 2012 P1 E EiVTEIREVIEWED BY. ITEM : Consent Agenda City Administrator Johnson 3.4 Resolution 2012-7 AGENDA ITEM DETAILS RECOMMENDATION: 1 1 recommend the Council approve the transfer of $474,500 from the Municipal Building Fund #441 to the Public Works Facility Debt Service Fund #385. 2 1 recommend the Council approve the transfer of $208,825 from the Revolving Capital Improvement Fund #414 to the QuadayAvenue Debt Service Fend #365. ARE YOU SEEKINGAPPROVAL OF A CONTRACT? I IS A PUBLIC NEARING REQUIRED? No I No BACKG ROU DIJU TIF[ TION: 1 The public wo rks facility was originaIlyfinanced with a corrrbinatio n of bond proceeds and contributions from other City monies. The balance that remained after construction was originally planned to be set aside for the future expansion f the public works s facilit y. However, in more recent years the remaining balance has been used to reduce the tax levy required to pay the annual debt service on the bond issue. The use of the remaining balance in the Municipal Building Fund was discussed during the Capital Improvement Plan 1P) special council meetings. The consensus of the Council was the remaining monies in the Otsego Municipal Building Fund should be used for the debt service obligation on the public works facility. Therefore, I am recommending $474,500 be transferred from the Municipal Building Fund #441 to the Public Works Facility Debt Service Fund #385. 2 The 2004 GO Improvement Bond was issued to finance the improvement of Quaday Avenue NE. A portion of the project costs were assessed back to the benefitting properties and deferred until development. Many of the assessments remain deferred as development has not yet occurred, The City is obligated to pay the annual debt service of the bond issue. (Payments aro made seri-annually and the final payment is in 2014. The Council and staff discussed the cash floe re uirer e nts of the Quaday Avenue irnprovem nt bonds during the CIP special council meetings. The CIP includes the transfer of $208,825 from the Revolving Capital Improvement ent Fund. The deferred special assessments, when collected, ill be credited to the Revolving Capital Improvement Fund. Therefore, I arra recommending $208,825 be transferred from the Revolving Capital Improvement Fuad to the Quaday Avenue Debt Service Fund #365. SUPPORTING DOCUMENTS: X ATTACHED NONE Attached Resolution approving the transfers POSSIBLE MOTION ......... ... .......... .... Please word motion as you rind lie it tO appear in the minutes. Motion to approve es lution 2012-79; A resolution approving the permanent interfu nd accounting transfer of monies for debt service Obligations. BUDGET INFORMATION FUNDING: BUDGETED: N/A YES NA Q NO ACTION TIKE o APPROVED AS REQUESTED TED DE NIED © TABLED u OTHER Lit hang COMMENTS: RESOLUTION NO, 2012 —7 CITY of OTS GO COUNTY of WRIGHT, MINNESO'T'A A. RESOLUTION APPROVING G THE PERMANENT NT INS" RIF UND ACCOUNTING TRANSFER of MONIES FOR DE13T SERVICE OBLIGATIONS WHEREAS, the City has reviewed the financing for the 2004 Quaday Avenue Improvement Bond and the Public Works Facility Bond, and WHEREAS, the Quaday Avenue project financing included special assessments against the benefitting properties, and WHEREAS, the special assessments against some of the benefitting properties have been deferred until development and that development has not yet occurred, and WHEREAS, the 2004 Quaday Avenue debt service obligations require a financing source and the Council has determined the Revolving Capital Improvement Fund will be the source of that financing, and WHEREAS, the Public Works Facility bonds along with other city monies were used to finance the construction of the public works facility, and WHEREAS, the remaining monies in the project fund (Otsego Municipal Building Fund #441) were originally intended for the future expansion ofthe Facility, and WHEREAS, the Council has determined that such remaining monies should be used for the repayment of a poilionof the outstanding bonds and to provide tax relief to the residents of the City of Otsego, WHEREAS, the transfer of these monies for debt service were reviewed during the 2013 Capital Improvement Plan, and WHEREAS, the accounting transfers require the approval of the City Council by resolution to properly document this financing and approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO, MINNESOTA THAT THE FOLLOWING ACCOUNTING TRANSFERS B APPROVED: $208,825 is hereby transferred from the Revolving Capital Improvements and to the Quaday Debt Service Fund, and $474,500 is hereby transferred from the Otsego Municipal Building Fund to the Public Works Facility Debt Service Fund. Approved by the City of Otsego Council this 10th day of December, 2012. BEST W Tamp l.off, City Clerk City of Otsego Mayor Jessica Stockamp