HomeMy WebLinkAbout1996-10-07-Resolutions 96-23_Fund Transfer - Gas to GeneralRESOLUTION 96-23
A RESOLUTION AUTHORIZING A LOAN FROM THE GAS FUND TO THE GENERAL
FUND FOR THE PURPOSE OF PURCHASING A FIRST RESPONDER UNIT AND TO
SET UP THE PAYMENT SCHEDULE FOR REPAYMENT.
WHEREAS,the Waukee City Council has determined that the purchase of a new first responder
unit is in the best interests of the city,and has so authorized the purchase of the same;
WHEREAS,there is an insufficient cash balance in the General Fund to purchase the said vehicle
without borrowing and reducing the cash balance of the General Fund below acceptable levels;
WHEREAS,the Gas Fund has adequate cash balances to loan the General Fund the money and still
have an adequate cash flow to meet operating expenses;
WHEREAS,the City Council feels that it makes more sense to pay itself interest,and the Gas Fund
has the right to earn interest on its cash reserves;
NOW THEREFORE,be it resolved,that the City Council of the City of Waukee authorizes the Gas
Fund Loan the General Fund $74,924,less a $15,000 down payment from the General Fund,and
that said loan be paid back over a period of four years at a five percent (5%)interest rate as outlined
in the following payment schedule.
LOAN AMOUNT
INTEREST RATE
$59,924
50/0/YEAR
DATE
01-DEC-97
01-DEC-98
01-Dec-99
01-Dec-2000
PRINCIPAL
DUE
$15,000
$15,000
$15,000
$14,924
INTEREST
$3,612
$2,246
$1,496
$746
TOTAL
$18,612
$17,246
$16,496
$15,670
REMAINING
BALANCE
$44,924
$29,924
$14,924
$0
Passed this 7th Day of October,1996.
ATTEST:
/~~~~(.
KURT A.RUECKEL -CITY CLERK