4.8 SR 12-18-2023�,
Elk s �-
River
Request for Action
To Item Number
Ma Tor and CinT Council 4.8
Agenda Section Meeting Date Prepared by
Consent A enda DecembeY 18, 2023 oe Stremcha, Assistant Cit�r Admitustrator
Item Description Reviewed by
Resolution: Authorize Interfund Loan for Zamboni Cal Pormer, Ci r Administrator
Purchase Reviewed by
Action Requested
Adopt, byT motion, a resolution authorizing an Interfund Loan for the FT Center Zamboni purchase.
Background/Discussion
To ensure cashflow, the facilit�T would like to finance the payTment through an interfund loan from the Equipment
Fund, which has sufficient balance to coveY the cost and account for futuYe planned vehicle and equipment
replacements in the Capital Improvement Fund.
Financial Impact
Loan Terms:
■ The principal amount of the loan will be $200,000.
■ There `vill be interest charged on the loan at an annual rate of 4%.
■ The loan balance will be repaid in annual installments of no less than $20,000.
■ The first payTment will be made in 2024.
■ There will be no prepayTment penaltyT.
Mission/Policy/Goal
C1earlyT defined use of funds to meet goals and priorities.
Attachments
■ Resolution authorizing an Interfund Loan
■ Interfund Loan Amortization Schedule
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
�awEnEo ar
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Update�l• January 2023
City of
Elk -�-�
RiVer
City of Elk River
City Council
Resolution 23-
A Resolution of the City Council of the City of Elk River Authorizing an
Interfund Loan for Zamboni Purchase
WHEREAS, the cityT has determined the need for replacing the Zamboni at the FTCenter;
and,
WHEREAS, the cityT is requesting an interfund loan in the amount of $200,000 from the
Capital Reserve Fund to the FTCenter; and
WHEREAS, it is deemed in the best inteYest of the communit�r to approve the interfund
loan to finance the puYchase of the Zamboni.
NOW, THEREFORE, BE IT RESOLVED byT the CityT Council of the CityT of Elk
River, Minnesota, as follows: authorizes the interfund loan for the Zamboni purchase,
subject to the following requirements:
1. The principal amount of the loan will be $200,000.
2. There will be interest charged on the loan at an annual rate of 4%.
3. The loan balance will be repaid in annual installments of no less than $20,000.
4. The first payment will be made in 2024.
5. There will be no prepayrment penaltyr.
Passed and adopted this 18`i' day of DecembeY 2023.
John J. Dietz, Mayor
ATTEST:
Tina Allard, CityT Clerk
rowEREo er
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Interfund Loan
(Capital Outlay Reserve to FTCenter)
Dated: 12/18/2023 Payable to: City of Elk River-Capital Outlay Reseroe
Amount: $200,000 Due: December
Interest Rate: 4.0% Maturity: 12/1/2033
Term: 10 yr. - Annual Amortization
Payments: Monthly Principal & Interest Starting 1/1/2024
Payment Total
Period Pavment Principal Interest
12/18/23
12/1/24 $20,800.00 20,000.00
12/1/25 $20,720.00 20,000.00
12/1/26 $20,640.00 20,000.00
12/1/27 $20,560.00 20,000.00
12/1/28 $20,480.00 20,000.00
12/1/29 $20,400.00 20,000.00
12/1/30 $20,320.00 20,000.00
12/1/31 $20,240.00 20,000.00
12/1/32 $20,160.00 20,000.00
12/1/33 $20,080.00 20,000.00
800.00
720.00
640.00
560.00
480.00
400.00
320.00
240.00
160.00
80.00
Unpaid
Balance
$200,000.00
180,000.00
160, 000.00
140, 000.00
120,000.00
100, 000.00
80,000.00
60,000.00
40,000.00
20,000.00
0.00
Date Payments
Paid Remaininq
10
9
8
7
6
5
4
3
2
1
0
Pai d