The City of Monticello, Iowa
RESOLUTION #2024-158
Approving internal loan from Sewer Operating Fund to TIF Project Fund
WHEREAS, Council directed staff to negotiate with Highland Corp with respect to the construction of a 12-lot single family home subdivision, also known as Northridge Estates 5th Addition and agree to doing an internal loan to cover cost until reimbursed with Bond funding, and
WHEREAS, From a bookkeeping and accounting standpoint, it is necessary to transfer money to the TIF Project fund to zero them out at the end of each the fiscal year with an amount not to exceed $359,000 to be transferred to the TIF Project fund, said transfers to be made from the Sewer Operating fund, with those funds to paid back as soon as possible, anticipating the repayment of the loan to the Sewer Operating fund within the course of not more than two years, from TIF Revenue bond proceeds and/or TIF revenues, and
WHEREAS, The Council finds the loan to be appropriate and in the best interests of the City and further finds that the loan should be repaid to the Sewer Operating fund with 4% interest or the same interest rate as the City receives from the sweep account saving each month, whichever is higher.
NOW, THEREFORE, BE IT RESOLVED that the City Council of Monticello, Iowa does hereby approve the internal loan as explained above, to the TIF Project from the Sewer Operating fund, in the amount not to exceed $359,000.00. These funds to be paid back over the course of not more than two years. The City Clerk/Treasurer is directed to account for and oversee the repayment of these loans.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and casued the Great Seal of the City of Monticello, Iowa to be affixed hereto. Done this 21st day of October, 2024.
Wayne Peach, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer