Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 07/25/2011
- TITLE
- General Fund Loan to the N 27th Street Tax Increment Fund
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The N 27th Street Tax Increment Fund requires a loan as it will have a negative cash balance of $800,000 as of July 31, 2011. State Law requires all funds have a positive cash balance at the close of each month end. The details of why the loan is necessary were reviewed at the July 5th work session.
ALTERNATIVES ANALYZED
City Council may:
- Approve the loan;
- Not approve the loan;
FINANCIAL IMPACT
The General Fund can provide the loan without any adverse effects. The loan will have an interest rate of 1.47%. Repayment will be made from the N 27th Street tax increment revenue received in December of 2011 and June of 2012. The loan may also be paid by proceeds received from the sale of property acquired for the Park V Parking Garage.
RECOMMENDATION
Staff recommends City Council approve the $800,000 loan from the General Fund to the N 27th Street Tax Increment Fund.
APPROVED BY CITY ADMINISTRATOR
Attachments
No file(s) attached.