HomeMy WebLinkAboutresolution.council.167-17 RESOLUTON NO. 167
(SERIES OF 2017)
A RESOLUTION APPROVING THE INTERFUND ADVANCE BETWEEN THE
WHEELER OPERA HOUSE FUND AND THE WATER UTILTY FUND FOR
PURPOSES OF ACQUIRING LAND FOR FUTURE MUNICIPAL WATER
STORAGE.
WHEREAS, there has been a proposal brought before City Council to acquire
parcels R003161 and R015286 located within Woody Creek; and
WHEREAS, the City Council has evaluated these parcels to be the best existing
alternative solution relative to current water storage rights held in the upper Castle and
Maroon Creek valleys; 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 Water Utility Fund to distribute the financial burden of this acquisition
over time and thereby avoid any direct impact to utility rates as a result,
NOW THEREFORE, be it resolved by City Council, that the City of Aspen
hereby approves an internal advance of $2,515,000 between the Wheeler Opera House
Fund and the Water Utility Fund, with the following conditions:
• The principal amount will be paid back in equal installments over a ten-
year period commencing 2018,
• 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 Water Utility Fund
repays the remaining outstanding principal prior to the full 10-year period.
Steven Ska ron, Mayor
1, Linda Manning, 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 the Resolution adopted
by the City Council at its meeting held on December 11, 2017.
mda Manning, City Cler