HomeMy WebLinkAbout2013-05-15 PACKET 04.B.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 05/15/13 . �
PREPARED BY Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST
Consider repayment of $735,000 in excess proceeds from the interFund loan used to finance
the Public Safety/City Hall project.
STAFF RECOMMENDATION
Adopt resolution returning $735,000 to the Water, Sewer, Closed Debt and Completed
construction funds in the amounts identified, reducing the total balance outstanding on the
interfund loan to $9,165,000.
BUDGET IMPLICATION: N/A
BUDGETED AMOUNT
ADVISORY COMMISSION ACTION
DATE
❑ PLANNING
❑ PUBLIC SAFETY
❑ PUBLIC WORKS
❑ PARKS AND RECREATION
❑ HUMAN SERVICES/RIGHTS
❑ ECONOMIC DEV. AUTHORITY
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SUPPORTING DOCUMENTS
� MEMO/LETTER: Roland
� RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
City Administrator
ADMINISTRATORS COMMENT
REVIEWED
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N/A
ACTUAL AMOUNT
APPROVED
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❑
DENIED
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�S / � f
Date
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
H:lCouncil items\CC Action Form.doc
Cottage
J Grove
� Pride and P�pSPerity Meet
To: Mayor and City Council Members
Ryan Schroeder, City Administrator
From: Robin Roland, Finance Director
Date: May 2, 2013
Subject: Consider reduction of Public Safety/City Hall interfund loan
Introduction
In December 2011, the City Council authorized funding of the Public Safety City Hall project
construction with a$9,900,000 interFund loan. The project has been completed under the
budgeted cost and unused cash can be returned, reducing the interFund loan.
Discussion
The December 31, 2012 audit included capitalization of the Public Safety/City Hall building and
equipment. Analysis of the Municipal Building Fund reflected $735,000 in unused cash
remaining from the $9.9 million interFund loan.
Consistent with the original InterFund Loan resolution, staff proposes that this unused cash be
allocated back to two of the funds from which it was initially borrowed, as follows.
Fund Initial loan Reduction Revised balance
Water operating 3,200,000 367,500 2,832,500
Sewer o eratin 3,200,000 367,500 2,832,500
The remaining balance of the interFund loan would be $9,165,000 to be paid with tax levy
proceeds pursuant to the revised schedule. This schedule reduces the required levy each
year by $50,000.
The cash balance remaining in the Municipal Building Capital Projects fund would exceed
$879,000 ($383,000 after the 2013 debt service payments have been made).
Requested Action
Authorize the transfers of funds on the attached resolution, reducing the interFund loan by
$735,000.
RESOLUTION NO. 13-xxx
Reducing the balance of the Public Safety/City Hall project Interfund loan
WIIEREAS, the City Council of the City of Cottage Gi•ove, Minnesota, approved Resolution 2011-164 on
December 7, 20ll approving the terms of a$9,900,000 Interfund loan to pay for the costs of
construction of the Public Safety City Hall project; and
WIIEREAS, the City loaned money fi•om the Closed Debt Fund, Completed Construction Fund, Water
Utility Fund and the Sewer Utility Fund with the intent that these funds be reimbursed by annual tax
levies; and
WHEREAS, upon completion of the construction project, excess funds remained unspent from the loan
and were available to reduce the outstanding loan balance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cottage Grove, Minnesota,
that $735,000 in excess interfund loan proceeds is returned to the following funds in the following
amounts, reducing the outstanding interfund loan balance to $9,165,000:
1. Water Utility Fund $367,500
2. Sewer Utility Fund $367,500
Adopted by the City Council of the City of Cottage Grove this 15 day of May, 2013.
:
Myron Bailey, Mayor
ATTEST:
Caron Stranslcy, City Clerk
2011 interfund loan schedule with required levies
8/1/2012
2/1 /2013
8/1 /2013
2/1 /2014
8/1 /2014
2!1 /2015
8/1 /2015
2/1/2016
8/1 /2016
2/1/2017
8/1/2017
2/1 /2018
8/1 /2018
2/1l2019
8/1 /2019
2/1 /2020
8/1 /2020
2/1 /2021
8/1 /2021
2/1 /2022
8/1 /2022
2/1 /2023
8/1 /2023
2/1 /2024
8/1 /2024
2/1 /2025
8/1 /2025
2/1 /2026
8/1 /2026
2/1 /2027
8/1 /2027
2/1 /2028
8/1 /2028
2/1 /2029
8/1 /2029
2/1 /2030
8/1 /2030
2/1 /2031
8/1 /2031
2/1 /2032
old new
principal interest Levy required principal interest Levy required year
- 64,350.00 45,825.00
435,000.00 49,500.00 548,850.00 435,000.00 45,825.00 550,000.00 2012
47,325.00 43,534.00
455,000.00 47,325.00 549,650.00 435,000.00 43,534.00 550,000.00 2013
45,050.00 41,243.00
460,000.00 45,050.00 550,100.00 435,000.00 41,243.00 500,000.00 2014
42,750.00 38,950.00
465,000.00 42,750.00 550,500.00 435,000.00 38,950.00 500,000.00 2015
40,425.00 36,660.00
470,000.00 40,425.00 550,850.00 435,000.00 36,660.00 500,000.00 2016
38,075.00 34,369.00
475,000.00 38,075.00 551,150.00 445,000.00 34,369.00 500,000.00 2017
35,700.00 32,078.00
480,000.00 35,700.00 551,400.00 445,000.00 32,078.00 509,156.00 2018
33,300.00 29,786.00
485,000.00 33,300.00 551,600.00 445,000.00 29,786.00 504,572.00 2019
30,875.00 27,495.00
485,000.00 30,875.00 546,750.00 450,000.00 27,495.00 504,990.00 2020
28,450.00 25,204.00
490,000.00 28,450.00 546,900.00 450,000.00 25,204.00 500,408.00 2021
26,000.00 22,913.00
495,000.00 26,000.00 547,000.00 455,000.00 22,912.00 500,825.00 2022
23,525.00 20,625.00
500,000.00 23,525.00 547,050.00 460,000.00 20,625.00 501,250.00 2023
21,025.00 18,330.00
505,000.00 21,025.00 547,050.00 465,000.00 18,330.00 501,660.00 2024
18,500.00 16,040.00
510,000.00 18,500.00 547,000.00 470,000.00 16,040.00 502,080.00 2025
15,950.00 13,750.00
515,000.00 15,950.00 546,900.00 472,500.00 13,750.00 500,000.00 2026
13,375.00 11,455.00
525,000.00 13,375.00 551,750.00 477,500.00 11,455.00 500,410.00 2027
10,750.00 9,165.00
530,000.00 10,750.00 551,500.00 483,000.00 9,165.00 501,330.00 2028
8,100.00 6,875.00
535,000.00 8,100.00 551,200.00 485,000.00 6,875.00 498,750.00 2029
5,425.00 4,585.00
540,000.00 5,425.00 550,850.00 492,000.00 4,585.00 501,170.00 2030
2,725.00 2,290.00
545,000.00 2,725.00 550,450.00 495,000.00 2,290.00 499,580.00 2031
9,900,000.00 1,088,500.00 9,165,000.00 962,343.00
05/15/2013