99-8691r
RESOLUTION NO. 8691
RESOLUTION DESIGNATING A PORTION OF YEAR-END 1998
GENERAL FUND AND CABLE TV/PROGRAM FUND BALANCES
FOR CONSTRUCTION OF SECOND ICE SHEET
WHEREAS, the City Council has authorized the construction of a second ice
sheet at a cost of up to $2,885,000; and
WHEREAS, the contracts for the project have been previously awarded and the
work authorized; and
WHEREAS, the cost of the project must be primarily funded through the
issuance of up to $2,500,000 Gross Revenue Recreation Facility Bonds; and
WHEREAS, the annual debt service needed for the repayment of such bonds
would be approximately $200,000; and
WHEREAS, the financial projections for the second ice sheet reflect an annual
shortfall of at least $50,000 after paying the annual debt service obligations and
operations costs of the additional facility; and
WHEREAS, the year-end operating General Fund surplus for 1998 is in excess
of $470,000 and the year-end fund balance of the Cable TV/Program Fund has
approximately $300,000 of undesignated fund balance available at year-end 1998; and
WHEREAS, a transfer of $450,000 from the General Fund and $150,000 from
the Cable TV/Program Fund to fund a portion of the costs of the construction of the
second ice sheet would reduce the amount of the revenue bonds needed by $600,000;
and
WHEREAS, a reduction of $50,000 to $55,000 would reduce the annual debt
service obligation to a position of closely approximating the available annual revenue
generated by the second ice sheet to pay for annual debt service and operations
expenses.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield that the City Manager is hereby authorized to designate $450,000 of General
Fund fund balance and $150,000 of Cable TV/Program Fund fund balance to pay for
the construction of the second ice sheet and to reduce the issuance of Gross Revenue
Recreation Bonds by the same amount.
Adopted by the City Council of the City of Richfield, Minnesota this 22nd day of
March, 1999.
ATTEST: . ~
~ p/-~
Thomas P. Ferber, City Clerk