HomeMy WebLinkAbout4.5a River Oaks Interfund Loan Memo
TO: Economic Development Authority
FROM: Brenda Malinowski, Finance Director
DATE: November 4, 2022
RE: Interfund Loan for Golf Course Irrigation Replacement Project
Background
Replacement of the irrigation system is necessary at the River Oaks Golf Course and Events
Center, and funds will be needed to finance this project. Instead of issuing bonds to finance this
project, it is proposed to use an interfund loan for this project until the City issues debt at a later
date.
Discussion
The cost of the Golf Course Irrigation Replacement Project is $2,500,000. It is proposed to fund
this project as follows:
Fund Description Amount
ED Trust Fund (286) Interfund Loan $1,850,000
Water Enterprise Fund (610) Water Conservation Funds $650,000
Total $2,500,000
The ED Trust Fund (286) currently has a cash balance of approximately $5.1 million so it has
sufficient funds to loan to the Golf Course Fund (640) for this project.
It is anticipated that the interfund loan will be repaid in 2025 when bonds are issued for the project.
This will replenish the ED Trust Fund so that these funds can be used for other development
projects.
Recommendation
Recommend approval to the City Council for an Interfund Loan from the ED Trust Fund (286) to
the Golf Course Fund (640) at an interest rate of 2 % for 15 years, or until bonds are issued for
the project in the future.
Attachments
River Oaks Golf Course Improvements Project City Council Action Request dated 10/05/2022