HomeMy WebLinkAboutresolution.council.034-20 RESOLUTON NO. 34
(SERIES OF 2020)
A RESOLUTION APPROVING THE INTERFUND ADVANCE BETWEEN THE
WHEELER OPERA HOUSE FUND AND THE CITY OFASPEN'S GENERAL FUND
FOR EMERGENCY RELIEF RELATED TO THE SPREAD OF COVID-19
WHEREAS, there have been proposals brought before City Council to fund relief
and recovery efforts related to the City of Aspen's Local Disaster Emergency
Declaration; and
WHEREAS, the City Council has evaluated these proposals and believe that
funding such proposals would be in the best interest of the City of Aspen to promote the
economic recovery from the devastation that has been caused by COVID-19; and
WHEREAS, Government Accounting and Auditing Financial Regulations do not
consider an asset being transferred between City funds as an investment nor the
repayment liability as debt, because they are purely internal to the governing entity; and
WHEREAS, pursuant to this criterion, interfund loans remain as allowable
transactions relative to the City's financial and investment policies; and
WHEREAS, the City can utilize internal borrowing between the Wheeler Opera
House Fund and the General Fund to distribute the financial burden of this economic
recovery over time and thereby avoid any significant impact to the General Fund in the
short term.
NOW THEREFORE, be it resolved by City Council, that the City of Aspen hereby
approves an internal advance of $3,500,000 between the Wheeler Opera House Fund and
the City of Aspen General Fund, with the following conditions:
• The principal amount will be paid back in equal installments over a ten-
year period commencing 2020,
• The interest rate applied to the internal advance will be set equal to the 10-
year Treasury rate at the time of the initial advance, and
• There shall be no pre-payment penalty in the event the General Fund
repays the remaining outstanding principal
prior to the full 10-year period.
Torre, Mayor
1, Nicole Henning, duly appointed and acting City Clerk of the City of Aspen, Colorado,
do hereby certify that the foregoing is a true and correct copy of Resolution adopted
by the City Council at its meeting held on April 9,2020.
1__�_ — a.,.9 W
Nicole Henning