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HomeMy WebLinkAbout1998-04-27 98-195 ORDERCOUNCIL ACTION Item No. 98-195 Date April 27. 1998 Item/Subject: Authorizing Inter -fund Transfer and Directing City Treasurer to Execute a Promissory Note Between the Airport Fund and the Economic Development Fund Responsible Department: Legal This Order would authorize an inter -fund transfer of $500,000 in existing funds from the City's Airport Fund to the Economic Development Fund. The purpose of the transfer is to provide a source of funds for City development assistance to the Vision Care of Maine project. The details of the City's assistance to the VCOM project are set out in another Council Order. The attached Order also directs the City Treasurer to sign an inter -fund promissory nate to assure repayment of the $500,000 to the Airport Fund, with interest, by .June 30, 2003. Under applicable federal regulations, revenues earned by the Airport, including the Airport's accumulated surplus, are dedicated revenues, to be used to maintain, operate or improve the airport facility. Therefore, funds transferred from the Airport Fund for non -Airport purposes must ultimately be repaid to the Airport Fund, with interest at prevailing market rates. DepartmeHead Manager's Comments: �3 aoo$. • Cityity Mana aod3 Associated Information:Q.C[� Budget Approval: " Vi—ector 0 finance Legal Approval: bAse nOi_ A...A a dMdM VifOsA A tmi5 i�r" wcvid fm"S M, J,/ 1500,000- city Solicitor 'fUp� Introduced For x Passage First Reading Referral Page 1 of 2 98-195 (Amendment by Substitution) Asa d to cowcao. CITY OF BANGOR (TITLE.) (Orbere Authorizing inter fund Transfer and Directing City Treasurer to Execute a Promissory Note Between the Airport. Fund and the Economic __ ...__... ...._DEvpl9PmenS. Fond ... .._. By Nu CW Caauel( of Me MY ofBaapan ORDERED, TH&T the sum of $625,000 is hereby transferred from the Airport Fund to the Economic Development Fund. and be it further, ORDERED, THAT the City Treasurer is hereby directed to execute a promissory note in the amount of $625,000 from the Economic Development Fund t0 the Airport Fund t0 assure repayment Of the amount transferred by this Order. The promissory note shall provide for repayment in the amount of $625,000 to the Airport Fund no later than July 31, 2003, with interest at a rate equivalent to the current rate of return on investments held within the City of Bangor's Airport reserve accounts. 98-195 Aeeiypedto Comcflor Aube April R), 1998 r,u CITY OF BANGOR (TITLE) VUrbery----- .__ Authorizing _ Inter tuna Transfer and Directing ........... city Treasurer to Execute a promissory Note Between the Airport Fund and the Economic Development_ Fund By the City CouneU of 94 City efBaayarr. ORDERED, MT the sum of $500,000 is hereby transferred from the Airport Fund to the Economic Development Fund. and be it further, ORDERED, THAT the City Treasurer is hereby directed to enecute a promissory nate in the amount of $500,000 from the Economic Development Fund to the Airport Fund to assure repayment of the amount transferred by this Order. The promissory note shall provide for repaymentin the amount of $500,000 to the Airport Fund no later than June 30, 2003, with interest at a rate equivalent to the current rate of return on investments held within the City Of BangorSS Airport reserve accounts. IN CITY COUNCIL April 27, 1998 Mation to Table Until the Next Regularly Scheduled Meeting of the City Council Motion Passed Order Tabled CI CL Read Under New Business Tabled Until after Consideration of 98-212. Motion to Indefinitely Postpone Made and Seconded Motion Passed Indefinitely Postponed TY C .NIC 98-195 ORDER Title,Autborizing Inter -fund Transfer and Directing City Treasurer to gxe- cute a Promissory Note Between the Aikpbi'e Pb6'a' bbd lde Tconimi'c bc4c16p- ment Used /MInIny� �designed to AF Cowcilman