02-939_. `
-�� "`ORIGINAL
� Presented By:
Referred to:
RESOLUT`ION
SALrIT PAUL, iVIINNESOTA
a�
Committee Date:
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WHEREAS, the City of Saint Paul, Pazks and Recreation is proceeding with the reconstrucrion of the Hi�hland 18 hole �o1f
course and driving range; and
WHEREAS, authority to enter into a intemal loan agreement beriveen Pazks and Recreation and the Intemal Borrowing fund
was �ranted by Council in Resolurion CF-02-769 in order to provide sufficent funding to complete said reconstrucrion; and
WHEREAS, the Mayor, pursuant to Section 10.07.1 of the Charter of the Ciry of Saint Paul, does certify that there aze
available for appzopriarion, funds of �53,800,000 in excess of those esrimated in the 2002 budget; and
WHEREAS, the Mayor recommends that the follov✓ing additions be made to the 2002 budget:
CURRENT AMENDED
FINANCING PLAN: BUDGET CHANGES BUDGET
325 - Special Services
23ll 6- Highland 18 Reconstrcution
9546 - Advance from Internal Borrowing 0 3,800,000 3,800,000
0 3,800,000 3,800,000
SPENDING PLAN:
325 - Special Services
23116 - Highland 18 Reconstrcution
0882 - Bnpmeements to Land
0883 - Axchitect Fees - Land
Q
COUNCIL FILE #: Q'�— q 3q
GREEN SHEET#: 203307
3,344,000 3,344,000
C�
,�,, and recommapds
Requested by�f v�� >`�,
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Division of Parks and Recreation
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BY. rq-�/ `_`- ✓' ; F /1.� nc � E- ,�/
Approval Recommended by Financial Services Director:
AdoptedbyCouncil: Date: fl 7.pa�
Adoption Certified by Council Secretary
� Approved
a...
Date: _ —��°., � ��� �
By:
,����
Form Approved by City Attom�
for
AOS, Green Shee[slResolutionslHighland 78 Resolution.xls Page: 1 of 1
, � :., �' S�� O�.'q'S�� `�O
° ., �i ��e
DEPARTMENT/OFFICE/COUNCIL OATE INITV+iED GREEN SHEET NUMBER: 203307 `�
Pa�ks and Recreation s�a�2oo2
CONTACTPERSONANDPHONE � I INfTIAWA7E
ASSIGN 'I DEPARiMENTDIRECTOft /'8JJ �� 5 CfTYCOUNCII
MikeHahm 265-6444 NUMBER 3 Cm — GTYCLERK
FOR ROUTINCa
MUSTBE0�ICOUNqLAGENDABY(DATEJ: ORDER 2 FMANCIALSERVICESDIR. � 6 O.F.S.-ACCOUNTING
4 MAYOR(ORASSiSTAN'n 7 OTHER:PafY,santlRec�eaRon
ASAP
TOTAL NUMBER OF SIGNATURE PAGES: CLIP ALl LOCAT10N5 FOR SIGNATURE
ACTION REQUES7ED:
Approval of City Council Resolution amending the Special Services (fund 325) budget for fiscal year 2002; setting up a spending and financing
plan for the internal loan being used to finance the Highland 78 hole course and driving range.
RECOMMENDATiONS. (Appro�e (A) or Reject (R) PERSONAL SERVIGE GONTRACTS MUST ANSWERTHE FOLIOW WG QIlEST10NSc
PIANNWGCOMMISSION CIVILSERVICECOMMISSION L HasthepersoNfirtneverworkeduntlercontractforthisdepartmenl?
A CIB COMMITfEE OTHER: ❑ y� ❑ NO
A STAFF OTHER: 2 Hasiheperson/firmeverbeenacityemployee?
DISTRICTCOUNCIL OTHER: ❑Ye5 ❑No
3 Does the personlfirtn possess a skili not normal P0.SSESSED by a curtent city employee?
❑ Yes ❑ No
Explain all yes answers on separa[e sheei antl attacn to 9reen sheet.
INITIATING PROBLEM, ISSUE, OPPORTUNIN (Who, What, When, Where. Why):
Council has approvetl an internal loan (CP•02•769) to finance the reconstruction of the Highland 18 hole course and driving renge.
A�VANTAGESIFAPPROVED
Construction can begin this fall.
DISADVANTAGES IF APPROVED.
None.
DISADVANTAGES IF NOTAPPROVED:
Project will be delayed.
TOTAL AMOUNT OF TRANSAGTION� $3,800,000 COST/REVENUE BUDGETE� (Check One) ❑ 1'es Q✓ No
FUNpING SOURCE: IIIYBRI3I LOafl ACTNITY NUMBER: 325-2311 S
FINANCIALINFORMATION (EXPLAIN)
re i.
�S� 'as�r t�p
a�_.���$��
G.IFMIQNW31Resolutions, AOS, Green SheetslGreen SheetsWighlantl 18 Greensheet xls Page. 1 of 9
'="�_ _ -,. _._ , '*,
OP,IGI�AL
CITY OF
Presented By
RESOLUTION
�
o� - R3g
council File �` ��'�
Green Sheet # 114010
L, MINNESOTA
�'�
Referred To Committee: Date
2
Whereas, the cash balances within various city funds exceed short-term needs, and currently are invested by
the Office of Financial Service to yield approximately 4.5% in 2001-2002; and
Whereas, the city has initiatives that cannot be 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 Loan Fund to
control and monitor the transactions between funds; and
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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 golf 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 that 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 advancin� 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 financin� 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-
Ariington Sports Dome may be paid or refunded and the "parity bond" test can be avoided; and
Whereas, the Pazks and Recreation Division a�rees to use excess revenues of the Parks and Recreation system
to repay all costs of paying or refunding the Rice-Ariington Sports Dome bonds; and
Whereas, issuing such revenue bonds in 2006 will be too late to meet tax-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
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02-��1
Whereas, the details of the advances from the Internal Loan Fund, the issuance of the note to reimburse the
advances, and the issuance of the bonds to refund the note are set forth in the Record of Interfund Loan; now
Therefore be it resolved, the City Council approves the use of the Intemal Loan Fund to lend cash to the
Division ofParks and Recreation for the H 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 ofParks and Recreation shall execute the Record ofInterfund 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 Arlin�ton 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 Amended
Budeet Chan�es BudEet
FINANCING PLAN: Internal Borrowing Fund
GL 070 10302 6928 Advance from Other Funds 0 3,800,000 3,800,000
GL 070 10302 6604 Interest on Advance 0 57,000 57,000
All Other Fund Pinancing 0 0 0
0 3,857,000 3,857,Q00
SPENDING PLAN: Internal Borrowing Fund
GL 070 10302 0535 Advance to
GL 070 10302 0619 Interest Expense
All Other Fund Spending
0 3,800,000
0 57,000
0 0
0 3,857,000
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 Tax Capital Fund) 0
All Other Fund Financing �
0
SPENDING PLAN:
GL 001 00000 0535 Advance to Internal Borrowing Fund - 0
GL 260 00000 0535 Advance to Intemal Borrowing Fund 0
GL 930 00000 0535 Advance to Internal Bonowing Fund 0
All Other Fund Spending 0
0
800,000
l, 500,000
1,500,000
0
3,800,000
800,000
1,500,000
1,500,000
0
3,800,000
3,800,000
57,000
0
3 857 000
800,000
1,500,000
1,500,000
0
3.800.000
800,000
I,500,000
1,500,000
0
3 800 000
Page 2 of 3
84 RESOLVED, that the City Council approves these chan�es to the 2002 budget.
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Requested by Department of:
o a.-q�t
62-�q
Financial Services
B y' ��� /.�1;��1' K! � "' �
i�_
Adopted by Council: Date ��,,�_� ?�Pproved by Financial Services
Adoption Certi£ied by council Secretary 1'��� �� .f,�
By: ���
$ I' ° �� � � n '"' ° -- ' ° ' — "`�orm Approved by City Attorney
Appr
By:
Page 3 of 3
o a.-��
DEPARTMENT/OFFICE/COUNCIL DATEINrtIATEO
OfficeofFinancialServices 08/�2/02 GREEN SHEET 114010
GONTACT PERSON & PHONE INtiaVVate InitiaUDate
ToddHUrlev 266-8837 � DEPPRTMEYTOIRCCTOR r J CITYCOUNCIL
:IL AGENDA BY (DATE) ��GN
! � NUMeERFOR
� CfTYATTO0.NEY LIIYCLERK
ROUTING
ORDER � FlNANCIALSERVICESDIR � FlNANCIALSEHVIACLTG
� MAYOR ❑T�easurer
TOTAL # OF SIGNATURE PAGES �_ (CLIP ALL LOCATIONS FOR SIGNATURE)
� establish a budget and authorize financing from the Intemal Bortowing Fund ro the Division of Parks and Recreation for the Higland 1S Golf Course
d Driving Range Renovation Project, and to provide authorizatlon co the Director, Offce of Financial Sernces and Director, Division of Parks and Recreation
execute the Record of Interfund Load to memorialize the transacGon.
IDATION Approve (A) or Re7ect
PLANNING COMMISSION
CIB COMMITTEE
CIVIL SERVICE COMMISSION
RSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QOESTIONS:
Has this perSONfrm ever worketl untler a conVact for thrs Gepartment?
YES NO
Has Nis persoNfirm ever been a city employee�
YES NO
Does this perso�rm possess a skill net nwmalty possessed by any cuRent ocy employee?
YES NO
is this persoNfrm a Wrgetetl venEOh
VES NO
IATING PROBLEM ISSUE, OPPORTUNIN (Who, What, When, Where, Why)
City s Parks antl Recreation Divisan needs to raise sufficient financing to provitle a S�oR term loan to Ne Higland 18 Golf Course in ortle� to
�ce the consWCtion of a tlrrving range and renovalion of that course.
IF
City wili have a financmg source and budget to Pontl the loan to Division of Parks and Recreation for the Highland 18 Golf Course Renovation rqe<t
IF APPROVED
IF NOT APPROVED
loan to Ne Highlantl 78 Renovahon Projec[ will not be furAetl antl Ihe project wll not move forvrdrd.
AMOUNT OF TRQNSACTION 5 Sa,eoo,aoo
COST/REVENUE BUDGETE� (CIRCLE ONE)
ro areen sheet
YES NO
SOURCE 070-10302 ACTIVITY NUMeER
INFORMATION (EXPIAIN)