|Previous Item||Next Item|
|April 25, 2019 City Council Regular Meeting|
28. Motion to Approve a Resolution Authorizing an Interfund Loan for $1.9 Million from the Water and Sewer Fund to the Sanitation Fund for the Purpose of Funding the Acquisition of the Property Located at 1809 West US Highway 80
Staff recommends the approval of a resolution authorizing and interfund loan for $1.9 million from the Water and Sewer Fund to the Sanitation Fund. On April 11, 2019, the Mayor and Aldermen authorized the City Manager to execute a contract to acquire 47.8 acres of land and 32,880 square feet of on-site improvements located at 1809 West US Highway 80, formerly occupied by Waste Management for the purchase price of $3,450,000. It is anticipated that certain due diligence costs will be incurred along with cosmetic improvements to the property for a total estimated cost of $4.0 million. $2.1 million has already been identified from the Landfill Contingency Fund to be supplemented by this interfund transfer, if approved by the Mayor and Aldermen.
Melissa Carter, Chief Budget Officer
The Sanitation Fund will repay the transfer along with a 2.0 percent rate of interest to the Water and Sewer Fund based on a five year amortization schedule.
Exhibit 1: Resolution - Interfund Transfer for the Purchase of the Waste Management Facility.pdf