HomeMy WebLinkAboutITEM VIII-B-5_*
CITY OF - r„
AU~~RN AGENDA BILL APPROVAL FORM
~ -- WASHINGTON
Agenda Subject: Date:
Resolution No. 4205 June 11, 2007
Department: Attachments: Budget Impact:
Finance Resolution No. 4205 and
re a ment schedule
Administrative Recommendation:.
Cit Council ado t Resolution No. 4205.
Background Summary:
Resolution 4142 was approved by Council in January of 2007 authorizing a lease for up to 54 carts. At
this time the need is for 36 carts, approximately $4,160 each, with an additional need of 14 carts in the
spring of 2008. The capital lease rate being offered by the leasing company was at 5.5% with the
requirement of bond counsel opinion on the debt.
At this time there are sufficient funds in the Capital Projects fund to loan the Golf Course fund for the
purchase of these carts. Another option would be to utilize the LOCAL funding program through the State
Treasurers Office. The rate on those funds would be about 3.5% plus an administrative fee for the review
of bond counsel.
It is recommended that the City provide the loan in the sake of efficiency as time is of the essence and
also provide the loan at the same rate as the State Treasurers Office LOCAL program.
N0618-1
04.4.7
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
^ Arts Commission COUNCIL COMMITTEES: ^ Building ^ M&O
^ Airport ^ Finance ^ Cemetery ^ Mayor
^ Hearing Examiner ^ Municipal Serv. ^ Finance ^ Parks
^ Human Services ^ Planning & CD ^ Fire ^ Planning
^ Park Board ^Public Works ^ Legal ^ Police
^ Planning Comm. ^ Other ^Public Works ^ Human Resources
^ Information Services
Action:
Committee Approval: ^Yes ^No
Council Approval: ^Yes ^No Call for Public Hearing _/_/_
Referred to Until _/_/_
Tabled Until _/_/_
Councilmember: Cerino Staff: Coleman
Meetin Date: June 18, 2007 Item Number: VI11.6.5
AUBUF~N * MORE THAN YOU IMAGINED
RESOLUTION N0.4 2 0 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE TRANSFER OF
FUNDS FOR THE PURPOSE OF MAKING A LOAN OR LOANS
FROM THE CAPITAL PROJECTS FUND TO THE GOLF COURSE
FUND FOR UP TO A FOUR-YEAR PERIOD OF TIME,
REPEALING RESOLUTION NO. 4142 INSOFAR AS IT IS
INCONSISTENT HEREWITH
WHEREAS, the Golf Course no longer has a concessionaire on site
providing for the rental of golf carts; and
WHEREAS, the golf course is in need of golf carts for use by the
patrons; and
WHEREAS, there is insufficient funds available at this time in the Golf
Course Fund to cover the cost of the carts; and
WHEREAS, the Capital Projects Fund has sufficient funds from which to
transfer funds in an amount not to exceed ONE HUNDRED FIFTY THOUSAND
DOLLARS ($150,000) for the purpose of purchasing the carts; and
WHEREAS, in lieu of entering into a lease financing agreement and
incurring costs associated with that type of agreement; and
WHEREAS, the City Council previously passed its Resolution No 4142
providing for Golf Cart funds in a way not fully consistent with the intentions and
purposes hereof; and
WHEREAS, it is appropriate with the passage of this Resolution, that it
be specified that this Resolution controls and that Resolution No 4142, insofar
as it is inconsistent herewith, should be repealed.
------------------------------
Resolution No. 4205
June 8, 2007
Page 1 of 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. .Authorization is hereby given for the transfer of funds to the
Golf Course Fund to cover the purchase of 48 electric carts in an amount not to
exceed $150,000, repealing Resolution No 4142 insofar as it is inconsistent
herewith.
Section 2. The term of the loan shall be 48 months, payable in annual
installments at the interest rate of 3.5% per annum.
Section 3. The Mayor is hereby authorized to implement such
administrative procedures as may be necessary to carry out the directions of
this legislation.
DATED and SIGNED this day of .2007.
CITY OF AUBURN
PETER B. LEWIS
MAYOR
ATTEST:
Resolution No. 4205
June 8, 2007
Page 2 of 2
Danielle Daskam
City Clerk
06/18/07
Interfund Loan from Capital Projects to Golf Course
Term: 4 years
Interest 3.5%
Four Annual Installments beginning 7/1/2008
Repayment Schedule
Beginning Balance $ 150,000
Total
Principal Interest Payment Balance
07/01/08 $ 35,588 $ 5,250 $ 40,838 $ 114,412
07/01/09 36,834 4,004 40,838 77,578
07/01/10 38,124 2,715 40,839 39,455
07/01/11 $ 39,455 $ 1,381 $ 40,836 $ (0)