HomeMy WebLinkAboutResolution 2017-106 Approving an Interfund Loan of unrestricted funds I'V1:ARANA RESOLUTION NO. 2017- 1.06
RLI.�ATINO TO ADMINISTRATION; APPROVING AN INTERFq UND LOAN OF UP TO
$2140000 OF UNRESTRICTED FUNDS FROM rrHE TRANSPoRTA.TION FUND TO THE
WASTEWATER CAPITAL FUND FOR THE MA.RANA. WATER RECLAMATION
FACILITY (WRF) EXPANSION PROJECT
WHEREAS in April 2017, the Town issued. Excise Tax and Revenue Refmding Bonds to
finance the Marana water Reclamation Facility (WRF) expansion project; and.
WHEIZE"AS based upon revised cost estin-a.tes for the WRIT expansion project, a funding;
shortfall of approximately $2,400,000 is expected despite the bond issuance; and
WHERI�AS interfund loans are allowed between LnrestTicted funds when fon-nalized and
when repayment is expected in accordance with Governmental Generally Accepted Accounting
e
Principles-, and.
WHI,REAS the Council Ends that the interfund loan authorid by this resolution is in
the best:interest of the Town of Marana and its c its ns.
Now, THEREFORE, BIa IT' RESOLVED BY THE MAYOR AND COUNCIL OF THE
rl,O W N OF M ARAN A, ARIZONA, AS FOLLOWS:
SECTION 1. An interfund loan of up to $2,400,000 of Linrestricted funds from the Trans-
portation Fund to the Wastewater Capital Fund for the Marana Water Reclamation Facility
(WRF) expansion pro]ect is hereby approved. This interfw-id loan shall remain in efr'ect until the
loan balance has been paid, cancelled and discharged.
SECTION 2. The obligation of the Town to repay the inter fund loan is limited to pay-
ment
ay-
ment li'om. the Wastewater Capital Fund and any other lawfully available source of repayme-nt
and shall not constitute nor give rise to a general obligation of the Town or any claim against its
ad valorem taxing powers, or constitute an indebtedness within the rneanin&; of any statutory or
constitutional debt limitation applicable to the `Down.
SECTION- 3. The Town Manager and Finance Director shall disclose and provide notice
of the inter fund loan to any existing or future lender or bondholder of any obligation of the Town
and its component Emits, and the interfiuld loan shall be considered an obligation for the purposes
of future development impact: fie calculation.
SECTION 4. The Town Manager and Finance Director shall present an annual account-
ing of the inter fiend loan as a part of the annual budget process, including; an accounting of pay-
n-ients made to the wastewater Capital Fund and repayments made to the Transportation Fund
until such time as the loan balance has been paid, cancelled and discharged.
Manana Resoltt k)n No.2017-106 - 1 -
SECTION S. The Town's Manager and staff are hereby directed and authorized to un-
dertake
ndertake all other and further tasks required or beneficial to carry out the terms, obligations, and
objectives of this resolution.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 7th day of November, 2017.
r V
Mayor lid onea
ATTEST. AI'I'ISO v AS T lj O ISM.
l _
41 k
ocelyn ! Bronson, Town Clark F nk Ca Town A y
MARANA AZ
ESTABLISHED 1977
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