MCA 7-12-4222 requires closing SID/Sidewalk debt service funds once the debt has been satisfied. Any excess/deficit cash balances upon completion of the bond obligations are transferred to the SID Revolving Fund. Funds 892, 893, 894, 895 and 896 will be closed, and project number 621324 will be closed in fund 820. See Attachment B for descriptions.

Council may:

Approve the resolution closing Special Improvement/Sidewalk Bond Debt Funds to the SID Revolving Fund, or Not approve the resolution. Not approving the Resolution would be a violation of State Law.
 

The revolving fund will receive cash of $14,967 for a Special Improvement District in Fund 820 with positive cash. Cash was loaned from the SID Revolving Fund to Special Improvement Districts in funds 892, 893, 894, 895 and 896 to pay bond principal and interest. The loans in the amount of $182,653 are a result of district delinquencies and are uncollectible. The loans will be written off in the SID revolving fund. The cash balance in the SID Revolving Fund is about $4.6 million. The properties will show delinquent assessments at the County. The City may recover some of these delinquencies if a property changes ownership or is sold at tax sale.

Staff Recommends Council Approve the Resolution closing Special Improvement/Sidewalk Bond Debt Funds to SID Revolving Fund.