CITY COUNCIL AGENDA ITEM
Meeting Date: September 26, 2000
Subject/Title: Allocation of funds to the Maintenance Service
Center CIP Project
Submitted by: Finance Department (Anita Jones)
Approved by: Jon Elam, City Manager
Approve the reallocation of funds in the Wastewater Property Acquisition
Fund (Fund No. 591) to the Maintenance Service Center CIP Project.
In 1992, when the 88-1 bonds were refinanced there were interest earnings
available for wastewater projects. A portion of the interest earnings
was placed in a separate fund, for the purpose of paying the interest
and principal on a loan agreement for the purchase of 27 acres next to
the existing wastewater plant. The loan was for ten years that required
interest only payments and a $1,000,000 balloon payment in January 2000.
Over the ten-year period these funds earned interest, and now that the
loan has been paid in full there is a balance remaining of approximately
$462,555 in the Wastewater Property Acquisition Fund.
Staff has reviewed the wastewater-related projects in the CIP Budget and
recommends reallocating the funds to the Maintenance Service Center project.
It is anticipated that the enterprise funds will contribute funds to this
project and this would help towards the Wastewater Enterprise Funds contribution
towards the construction of a maintenance facility. The transfer of these
funds would reduce the fiscal impact on the Community Facility Fee Fund,
leaving more funds available for other projects, such as the Police Facility
or City Hall.