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HomeMy Public PortalAbout2022-37 Resolution Authorizing Interfund Loan for Construction CostsResolution No. 2022-37 May 17, 2022 Member DesLauriers introduced the following resolution and moved its adoption: CITY OF MEDINA RESOLUTION NO. 2022-37 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN ROAD CONSTRUCTION COSTS BE IT RESOLVED By the City Council of the City of Medina, Minnesota (the “City”) as follows: Section 1. Background. 1.01. The City plans on incurring costs related to a road overlays on Iroquois Drive, Tower Drive and Oakview Road in the City (the “Project Costs”). 1.02. The City intends to advance funds from one or more City funds to pay the Project Costs and proposes to designate such advances as an interfund loan in accordance with the terms of this resolution. 1.03. The City may determine to issue taxable general obligation bonds or other obligations in the future to pay the interfund loan authorized pursuant to this resolution. 1.04. If the City does not issue obligations to pay the interfund loan, the City will pay the Interfund Loan with assessments received for the overlay projects and other funds of the City. Section 2. Repayment of Interfund Loan. 2.01. The City shall borrow funds from various sources to pay all or a portion of the Project Costs in a principal amount of up to $175,000 (the “Interfund Loan”). No interest shall accrue on the Interfund Loan. 2.02. The Interfund Loan is payable from (i) the proceeds of obligations the City may issue in the future to pay the Interfund Loan; (ii) the assessments received from the Iroquois Drive, Tower Drive and Oakview Road overlay projects; and (ii) from any other revenues available to the City. 2.03. Principal and interest payments (the “Payments”) on the Interfund Loan shall be made at the time from any revenue sources that are available to make installment payments. Payments will be credited to the respective City fund from which the Interfund Loan was drawn. All Payments shall be applied first to accrued interest, and then to unpaid principal of the Interfund Loan. 2.04. The principal sum and all accrued interest payable under the Interfund Loan is pre-payable in whole or in part at any time by the City without premium or penalty. 2.05. The City may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.06. The City may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation, amendment to the payment schedule and the interest rate. Resolution No. 2022-37 May 17, 2022 Section 3. Effective Date. This resolution is effective upon approval. Dated: May 17, 2022 Kathleen Martin, Mayor Attest: Caitlyn Walker, City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Albers and upon vote being taken thereon, the following voted in favor thereof: Albers, DesLauriers, Martin and the following voted against same: (Absent: Cavanaugh, Reid) None Whereupon said resolution was declared duly passed and adopted.