02-769�t�4G6�A'�
CITY OF
Presented By
��
RESOLUTION
�
Council File # a�'7
Green Sheet # _114010_
MINNESOTA
Referred To Committee: Date
2
3
4
5
7
10
11
12
13
14
15
16
17
18
19
20-
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Whereas, the cash balances within various city funds exceed short-term needs, and cunently aze invested by
the Office of Financial 5ervice to yield approximately 4.5% in 2001-2002; and
Whereas, the city has uutiatives that cannot he financed under current city or state bonding or borrowing
authority or laws; and
Whereas, the city has the authority to borrow between funds and has established an Internal I,oan Fund to
control and monitor the transactions between funds; and
Whereas, the city has assigned its Financial Services Director and Treasurer, as advisory counsel, to review
and advise the city on transactions for the use of loans between funds so as to maintain security of the cash
with minimum risk; and
Whereas, the Parks and Recreation Division wants to raise sufficient financing to provide a short-term loan to
the Highland 18 goif course in order to finance the renovation of that course, and the Office of Financial
Services has prepared a"Record of Interfund Loan" agreement to accomplish that financing; and
Whereas, an independent analysis has confirmed ihat the city can provide the financing at a lower cost than the
proposed transaction; and
Whereas, there will be secure assets with sufficient revenue streams dedicated to the Internal Loan Fund to
support repayment of principal, with interest, to the funds advancing the use of cash; and
Whereas, the temporary financing for the Highland 18 golf course renovation provided by the Internal Loan
Fund will ultimately be replaced by permanent financing provided by the city's issuance of revenue bonds
payable solely from revenues of the Parks and Recreation system; and
Whereas, the Highland 18 revenue bonds will be issued in 2006 when the bonds that financed the Rice-
Arlington Sports Dome may be paid or refunded and the "parity bond" test can be avoided; and
Whereas, the Parks and Recreation Division agrees to use excess revenues of the Parks and Recreation system
to repay all costs of paying or refunding the Rice-Arlington Sports Dome bonds; and
Whereas, issuing such revenue bonds in 2006 will be too late to meet tas-exempt bond rules that limit
reimbursements of earlier expenditures, and to timely meet the reimbursement requirement the city may issue a
note in 2005 which it purchases as an investment of a city fund, and may use the proceeds of this note to
reimburse and pay any unpaid balance due the Internal Loan Fund, and later in 2006 refund the note with the
permanent bonds; and
Page 1 of 3
02-��1
41
42
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
.
:1
:
:.
:
::
..
.
.�
Whereas, the details of the advances from the Intemal Loan Fund, the issuance of the note to reimburse the
advances, and the issuance of the bonds to refund the note aze set forth in the Record of Interfund Loan; now
Therefore be it resolved, the City Council approves the use of the Internal Loan Fund to lend cash to the
Division of Pazks and Recreation for the Higliland 18 golf course renovation project; and
Be it further resolved, that the proposal set forth in this resolution is approved and the Director of Financial
Services, and the Director of Pazks and Recreation shall execute the Record of Interfund Loan to memorialize
the transaction; and
Be it further resolved, that the Division of Parks and Recreation will use excess revenues of the city's Parks
and Recreation system to repay all costs of paying or refunding the Rice and Arlington Sports Dome bonds;
and
Be it further resolved, the Financial Services Director and the Treasurer will use the cash from "cash rich"
funds allowed by law, to provide secure financing for the transactions and assure that interest is paid and
properly credited; and
Be it further resolved, that all internal borrowing and pledges of repayment be reviewed and rated for
investment quality by an impartial Saint Paul financial institution and that information be provided to the City
Council for consideration in its decision; and
Therefore, the Mayor, pursuant to Sec. 10.07.1 of the City Charter, certifies that $3,857,000 is available for
appropriation in the 2002 budget and recommends the following changes:
Current
Budeet
FINANCING PLAN: Internal Borrowing Fund
GL 070 10302 6928 Advance from Other Funds
GL 070 10302 6604 Interest on Advance
All Other Fund Financing
SPENDING PLAN: Internal Borrowing Fund
GL 070 10302 0535 Advance to
GL 070 10302 0619 Interest Expense
All Other Fund Spending
0
0
0
0
0
0
0
0
FINANCING PLAN:
GL 001 00000 6202 Cash Advance (General Fund) 0
GL 260 00000 6202 Cash Advance (Sewer Utility Fund) 0
GL 930 00000 6202 Cash Advance (Sales Tas Capital Fund) 0
All Other Fund Financing 0
0
SPENDING PLAN:
GL 001 00000 0535 Advance to Internal Borrowing Fund 0
GL 260 00000 0535 Advance to Internal Eonowing Fund 0
GL 930 00000 0535 Advance to Internal Borrowing Fund 0
All Other Fund Spending 0
0
Chanees
3,80Q000
57,000
0
3,857,000
3,800,000
57,000
0
3.857,000
800,000
1,500,000
1,500,000
0
3.800.000
800,000
1,500,000
1,500,000
0
3.800.000
Amended
Budeet
3,800,000
57,000
0
3 857 000
3,800,000
5'7,000
0
3.85'7,000
800,000
1,500,000
1,500,000
0
3 800 000
800,000
1,500,000
1,500,000
0
3.800,000
Page 2 of 3
��
84 RESOLVED, that the City Council approves these changes to the 2002 budget.
85
86
87
Requested by Department of:
Financial Services
ay: ��� � 'R
Approved by Financial Se vices
Adopted by Council: Date _Q,,.,, ,� ap0��
�'T
Adoption Certified by Council Secretary � �
By:
By:
Appr
By:
by City Attorney
Page 3 of 3
1
of Financial Services
ZQOZ �
DATEINf�IATFA
08/12l02
ASuIGN
NUMBER f-0R
aounN�
ORDER
TOTAL # OF SIGNATURE PAGES �_
GREEN SHEET
�eraarr.+�+r oirsecroa
114010
cm cour+ca
� CrtYAifORxEY ] LrtYCLERK
� FINANCNLSERVICESOIR _� FlNANCIALSERV/ACG�G
� MAYOR ❑Treasurer
(CLiP ALL LOCATIONS FOR SIGNATURE)
establish a budget and authorize financing from the Intemal Borrowing Fund to ihe Division of Parks and Recreatlon for the Higland 18 Golf Course
d Driving Range Renovafion Project, and to provide authorizatlon to the Director, �ce of Financial Services and Director, Division of Parks and Recreation
execute the Record of interfu�d Load to memodalize the transaction.
PLANNING COMMlSS10N
qB COMMITTEE
CIVIL SERVICE COMMISSION
Whal,When,Where,Why)
RSONAL $ERVICE CONTRALTS MUSTANSWERTHE FOLLOWING QUESTIONS:
Has this persoNfrm ever worked under a contract for this departmenCt
YES N�
Has this persoNfirm ever been a city employee�
YES NO
Dces this persoNfirm possess a skill not nortnalry possessetl by any current city employee?
YES NO
Is this perSONfrm a targetetl veiWOr'+
YES NO
/ s Parks antl Recreation Drvision needs to raise suffcieM financing to provide a short term loan to the Higland 78 Golf Course m order to
the co�xWCtion M a tlrivAg ra�ge afW reirovation of Nat course.
IFAPPROVED
None
have a financing source antl butlget to fund Ne loan to Division of Parks antl Recreation for Ihe Highlantl 18 Golf Course Renovation roject
IFAPPROVED
NOTAPPROVED
W the Highlantl 18 RenovaLOn Project will not be imftletl antl Ihe pmject will not move farvraM.
OF TRANSACTION 5 Sa,eaO,ano
soURCe 070-70302
(EXPLAIN)
COST/REVENUE BUDGETED (CIRCLE ONE)
ACTIVITY NUMBER
YES NO
`