89-063 RES
.
RESOLUTION ~
LOAN TO SHERBURNE/WRIGHT COUNTY
CABLE COMMUNICATIONS COMMISSION
WHEREAS, the Sherburne/Wright County Cable Communications
Commission (hereinafter "Commission") is a joint powers commission
duly organized pursuant to Minnesota Statutes S 471; and
WHEREAS, the City of Elk River (hereinafter "City") is a Member
City of the Commission; and
WHEREAS, the Commission has historically received contributions
from its Member Cities for the operating budget of the Commission;
and
WHEREAS, the contributions from the Member Cities to the
Commission have been made in one fiscal year and repaid in the
following fiscal year from Franchise Fee revenue from the cable
. company serving residents of the Member Cities; and
WHEREAS, the Commission has adjusted its budget to repay in one
.
fiscal year Member Cities for past and current contributions to the
Commission; and
WHEREAS, such budget adjustments exceed current Franchise Fees
available to the Commission, causing a budgetary short-fall; and
WHEREAS, the Commission is desirous of borrowing such short-fall
from a Member City so that the interest paid on such loan could
benefit a Member City as opposed to an outside source; and
WHEREAS, the City is desirous of loaning such short-fall to the
Commission so as to benefit from the interest to be paid by the
Commission; and
.
.
.
,
WHEREAS, future Franchise Fees available to the Commission and
the City are sufficient to service and retire this loan over time;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Elk
River that the City of Elk River shall loan Fifty Thousand Dollars
($50,000.00) to the Sherburne/Wright County Cable Communications
Commission. The loan shall be repaid in six annual installments at
an interest rate of eight and one-half percent (8.5%) per annum on
the unpaid balance from the delivery date of the money until fully
repaid; and
BE IT FURTHER RESOLVED, that should dissolution of the
Commission occur prior to complete repaYment, the assets of the
Commission shall first be allocated to satisfy this loan obligation
and any accrued interest prior to any pro rata distribution of any
assets to Member Cities; and
BE IT FURTHER RESOLVED, that should dissolution of the
Commission occur prior to complete repaYment, the Member Cities
further agree to pledge their pro rata share of the franchise fee
toward repaYment of this obligation and are further jointly and
severally liable for their pro rata share of this obligation; and
BE IT FURTHER RESOLVED, that any remaining loan obligation and
any accrued interest shall be satisfied from future Franchise Fee
paYments to the City of Elk River.
Motion by Councilmember Holmgren ; seconded by
Councilmember Dobel
The following Councilmembers voted in the affirmative:
Vice Mayor Schuldt, Councilmembers Holmgren, Dobel, and
Kropuenske
2.
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The following Councilmembers voted in the negative:
. None
.
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CITY OF ELK RIVER
(LENDER)
By:
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Title:
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Date:
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ATTEST:
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Title: {?7 (?-/~
Date: /~-/t- P7
ACCEPTED BY:
SHERBURNE/WRIGHT CABLE
COMMUNICATIONS COMMISSION
(BORROWER)
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Title: I!l?a/te
Date: /1'J/;7~9
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