Resolution 2010-16A Authorizing Interfund Loan CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: February 22, 2010 RESOLUTION NO: 2010 -16A
MOTION BY: Tjornhom SECONDED BY: Ernst
A RESOLUTION AUTHORIZING INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS IN CONNECTION WITH
TRANSIT STATION PUBLIC IMPROVEMENT PROJECT
BE IT RESOLVED By the City Council of the City of Chanhassen, Minnesota (the
"City "), as follows:
Section 1. Background.
1.01. The City plans to incur costs related to the Chanhassen Transit Station public
improvement project.
1.02. The City intends to advance funds to pay the costs described above and proposes
to designate such advances as an interfund loan in accordance with the terms of this resolution.
Section 2. Repayment of Interfund Loan.
2.01. The City's Transit Station Capital Project Fund (Fund No.413) shall borrow from
the City's Water Fund (Fund No. 700) to pay costs related to the Chanhassen Transit Station
public improvement project described above in a principal amount of up to $729,253. The City's
Transit Station Capital Project Fund will reimburse the City's Water Fund for such loan
(the "Interfund Loan "). Interest shall accrue on the pnncipal amount from the date of
disbursement of the Interfund Loan at the maximum rate per annum allowed by law but the
interest rate will, without further action by the City, be adjusted on January 1 of each year to
reflect the maximum rate allowed that calendar year.
2.02. The Interfund Loan is payable from (i) special assessments levied against
benefited properties; (ii) the proceeds of obligations the City may issue in the future to repay the
Interfund Loan; and (iii) 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 times any revenue sources are available to make payments. Payments will be
credited to the City Water 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 pnncipal 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.
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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.
Section 3. Effective Date. This resolution is effective upon approval.
Passed and adopted by the Chanhassen City Council this 22 day of February, 2010.
ATTEST:
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To•. Gerhardt, City Clerk/Manager Thomas A. Furlong, Mayor
YES NO ABSENT
Furlong None None
Ernst
Litsey
McDonald
Tj ornhom
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