HomeMy WebLinkAboutminutes.council.19990511Continued meeting Aspen City Council May 11, 1999
Mayor Bennett called the meeting to order at 5:15 p.m. with
Councilmembers Markalunas, Paulson, Richards present.
FUNDING KOCH STREETS PERFORMANCE PLAN
Tabatha Miller, finance director, passed out a summary of the asset
management plan with total capital, total maintenance, total equipment, total
AMP, debt service, and AMP revenue. Ms. Miller told Council she has
deducted about $1.5 million from the AMP for the ice rink, the Iselin tennis
courts and new pool cover as these expenditures will be covered by the
recently approved revenue bonds. The difference shows there are extra
funds to pay for this project from the AMP; however, staff still has an
opportunity to add AMP requests to 2000 and 2001 so the expenditures may
be higher.
Ms. Miller said Council also wanted to look at shortening the term of the
loan repayment. Ms. Miller said she structured the loan as a 10 year
repayment costing an extra $200,000 annually for a total of $590,000 a year
repayment from the AMP for the streets project. Ms. Miller said to pay for
the street project, $1 million can be taken from the day care trust, which
would leave $1.3 million in the trust in 1999. The repayments to the trust
will start in 2000 so that the fund will quickly build back up. There was
$345,000 budgeted for the Koch payment, which will be used. $350,000 in
1999 and $584,000 ion 2000 will be borrowed from the general fund. The
general fund currently has $2 million available cash balance. The final
amount for this project will be $1.4 million from the Wheeler fund. The
repayment to the day care trust and to the Wheeler fund will have a 5.8%
interest. There is no interest payment to the general fund. The general fund
will be paid back earlier than the other funds as it has a smaller cash balance
than the other two funds.
Mayor Bennett said the city has available funds to finance the street plan.
Ms. Miller said the city cash reserves are all invested in five-year securities.
Staff feels it is more positive to borrow from the city than from an outside
source. The city will be paying the interest to themselves rather than another
institute. The city can also pay the money back more quickly if the funds
become available. Ms. Miller noted that 5.8 percent interest is a greater
return than T-bills. Amy Margerum, city manager, told Council she
reviewed the AMP requests for 2000 and there is not a lot of discretion for
eliminating items unless Council wants to not replace equipment.
Continued meeting Aspen City Council May 11, 1999
Councilwoman Richards said she would rather than more money out of the
day care trust than the general fund as the general fund has loan money for
the purchase of Cozy Point and Hummingbird properties.
Councilman Paulson moved to borrow $1,350,000 from day care trust to be
repaid with interest of 5.8% over 10 years; a $345,000 payment from the
existing budgeted 1999 AMP and $1,400,000 from the Wheeler fund to be
repaid over 10 years with a 5.8% interest; seconded by Councilman
Markalunas. All in favor, motion carried.
Councilman Markalunas moved to adjourn at 5:35 p.m. ; seconded by
Councilman Paulson. All in favor, motion carried.
Kathryn S. Koch, City Clerk