HomeMy WebLinkAbout101-10 RESOLUTIONRESOLUTION NO. 101-10
A RESOLUTION AUTHORIZING AN INTERFUND LOAN FROM THE
REPLACEMENT & DISASTER FUND TO THE OFF STREET PARKING
FUND FOR THE PURCHASE OF MACHINERY AND EQUIPMENT
NECESSARY TO IMPLEMENT THE ENTERTAINMENT DISTRICT
PARKING PROGRAM, AND PROVIDING FOR REPAYMENT OF THE
LOAN OVER A SIXTY (60) MONTH PERIOD AT AN INTEREST RATE OF
THREE PERCENT (3%) PER ANNUM
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes
an interfund loan from the Replacement & Disaster Fund to the Off Street Parking Fund for the
purchase of machinery and equipment necessary to implement the Entertainment District Parking
Program. Said loan shall be repaid over a sixty (60) month period at an interest rate of three
percent (3%) per annum.
PASSED and APPROVED this 1St day of June, 2010.
APPROVED:
By:
ATTEST:
By:
Mayor SORA E. SMITH, City Clerk/Treasurer
Paul A Becker
Submitted By
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
June 1,2010
City Council Meeting Date
Agenda Items Only
Finance & Internal Services
Division
Action Required:
Finance Department
Department
Request that the City Council approve an interfund loan from the Replacement & Disaster Fund to the Off Street
Parking Fund for the purchase of machinery and equipment necessary to implement the paid parking program in the
Entertainment District and provide for the repayment of that loan over a 60 month period.The approval of internal
financing will save the City money in the form of lower interest rates and administrative costs associated with external
financing.
N/A
Cost of this request
Account Number
Project Number
Budgeted Item
N/A
Category / Project Budget
N/A
Program Category / Project Name
Funds Used to Date Program / Project Category Name
Remaining Balance Fund Name
Budget Adjustment Attached
ok
Depa Director
orney
ParciL,
Finance and Internal Services Director
5-14-7,010
Date
C -/7 -to
Date
5- vi-umb
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Comments:
Revised January 15, 2009
rateville
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENT CORRESPONDENCE
ARKANSAS
www.accessfayetteville.org
CITY COUNCIL AGENDA MEMO
To: Mayor and City Council
From: Paul A Becker, Finance Director
Date: 5-7-2010
Subject: Interfund Loan to the Off Street Parking Fund for the purchase of parking machines and equipment
needed to implement the paid parking program in the Entertainment District.
PROPOSAL:
Since sufficient funds are not available in the Off Street Parking Fund to purchase the equipment and
machinery needed to implement the parking plan in the Entertainment District, it is necessary to finance the
purchase of said equipment over time. The manufacturer does not provide financing. Therefore, the City has the
option of financing the purchase internally or externally. In view of the current interest rates being earned on
investments, it would be cheaper to finance the transaction with funds from the Replacement & Disaster Fund,
the balance of which was accumulated primarily from general revenue sources. Although the Replacement &
Disaster Fund is currently required to hold $3,000,000 cash for emergency purposes, this loan would be a
receivable to this fund and, therefore, the fund balance would remain the same. The City would still have over
$2,000,000 to meet any unforeseen disaster.
It is recommended that this interfund loan be structured to be repaid over a 60 month period with the ability to
repay the remaining balance at any time in the event that sufficient funds become available due to the collection
of greater revenues than are currently anticipated. It is also recommended that interest be paid at the rate of 3%
annually on the outstanding balance pursuant to standard amortization tables. The interest rate represents the
interest currently earned by the City on an investment instrument held for that period.
RECOMMENDATION:
It is recommended that the City Council approve the use of an interfund loan from the Disaster & Replacement
Fund to the Off Street Parking Fund for the purchase of needed machinery and equipment to implement the paid
parking program in the Entertainment District. This would save the City money in interest rates, administration
fees and legal fees. The estimated amount required to finance the equipment purchase is $696,938.Staff,
therefore, requests authorization to provide an interfund loan of up to $700,000 to the Off Street Parking Fund
from the Replacement & Disaster Fund for a period of 60 months at 3% interest on the unpaid principle with the
option of repaying the outstanding balance at any time.
THE CITY OF FAYETTEVILLE, ARKANSAS
BUDGET IMPACT:
The selection of this financing method will have no direct impact on the current budget.
RESOLUTION NO.
A RESOLUTION AUTHORIZING AN INTERFUND LOAN FROM THE
REPLACEMENT & DISASTER FUND TO THE OFF STREET PARKING
FUND FOR THE PURCHASE OF MACHINERY AND EQUIPMENT
NECESSARY TO IMPLEMENT THE ENTERTAINMENT DISTRICT
PARKING PROGRAM, AND PROVIDING FOR REPAYMENT OF THE
LOAN OVER A SIXTY (60) MONTH PERIOD AT AN INTEREST RATE OF
THREE PERCENT (3%) PER ANNUM
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes
an interfund loan from the Replacement & Disaster Fund to the Off Street Parking Fund for the
purchase of machinery and equipment necessary to implement the Entertainment District Parking
Program. Said loan shall be repaid over a sixty (60) month period at an interest rate of three
percent (3%) per annum.
PASSED and APPROVED this 1st day of June, 2010.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer