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:
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Associated Information:Q.C[�
Budget Approval:
" Vi—ector
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Legal Approval: bAse nOi_ A...A a dMdM VifOsA A tmi5
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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