Consent 1.H.
Regular City Council Meeting
- Meeting Date:
- 11/25/2019
- TITLE
- Resolution Authorizing State of Montana INTERCAP Loan
- PRESENTED BY:
- Andy Zoeller
- Department:
- City Hall Administration
Presentation:
No
PROBLEM/ISSUE STATEMENT
The State of Montana Board of Investments provides INTERCAP loans for eligible government units with no up front costs. The City has been approved for a loan by the Loan Committee for the evidence building expansion for up to $3,410,000. Once the resolution has been approved by Council, the City can submit invoices to be reimbursed.
ALTERNATIVES ANALYZED
City Council may:
- Approve the resolution, or;
- Disapprove the resolution and find another funding source.
FINANCIAL IMPACT
The current interest rate is 3.37% and is adjusted every February. The term of the loan is 15 years or the useful life of the project, whichever is less. Payments are due twice a year and will be paid from the Public Safety Fund.
RECOMMENDATION
Staff recommends approving the resolution for authorizing the INTERCAP loan for the expansion of the police evidence building.