The City of Monticello, Iowa
RESOLUTION #2023-171
Approving internal loan from various City Funds to Capital Improvement fund
WHEREAS, Council directed staff to negotiate with Rowland Family Trust and Mike & Emily Kraus to purchase the properties for future airport expansion and agreed to doing internal loans to cover cost until reimbursed with AIP funding, and
WHEREAS, From a bookkeeping and accounting standpoint, it is necessary to transfer money to the Capital Improvement fund to zero them out at the end of each the fiscal year with an amount not to exceed $1,220,000 to be transferred to the Capital Improvement fund. said transfers to be made from General Fund Cash Reserves, Slavka Gerhet Trust, Customer Deposits fund, Water Operating fund and Sewer Operating fund, with those funds to pay back as soon as possible, anticipating the repayment of the loans to the funds over the course of not more than ten years, from the Airport fund, AIP grant funding and/or other FAA or Iowa DOT sources, and
WHEREAS, Airport Fund will transfer up to $100,000 to the Capital Improvement fund to cover the costs of these purchases. Once all other funds have been paid back in full, any remaining funds will reimburse the Airport fund, and
WHEREAS, The Council finds the loans to be appropriate and in the best interests of the City and further finds that the loans should be repaid to the funds listed above with 4% interest or the same interest rate as the City receives from the sweep account saving each month, whichever is higher.
NOW, THEREFORE, BE IT RESOLVED that the City Council of Monticello, Iowa does hereby approve internal loans as explained above, to the Capital Improvement from the funds listed above, with the amount from each fund to be determined and the end of the Fiscal Year 2024, in the amounts not to exceed $1,214,286.48. These funds to be paid back over the course of not more than ten years. The City Clerk/Treasurer is directed to account for and oversee the repayment of these loans.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and casued the Great Seal of the City of Monticello, Iowa to be affixed hereto. Done this 20th day of November, 2023.
David Goedken, Mayor
Attest:
Sally Hinrichsen, City Clerk