HomeMy WebLinkAbout1999-11-08 00-018 ORDERftem No. 00-18
Date: 11-8-99
Item/Subject: ORDER, Authorizing the Temporary Borrowing of $242,847.59 from the Sewer
Fund by the Community Development Fund
Responsible Department: Finance
This Order concems the final payment on the Bangor Savings Bank note, issued in 1996 in the
amount of $700,000 to fund the waterfront purchase and remediation. This final payment of
$242,847.59, which was made per our loan agreement on October 29th was to have been paid
from Community Development funds. As a result of federal requirements pertaining to the use
of CD funds, they had been allocated elsewhere during the budget process and are therefore
unavailable for this purpose. Accordingly, we would like to borrow this amount from the Sewer
Fund until July, when new CD funds become available.
As always, I recommend your approval and am available to answer any questions you might
have.
Department Head
Manager's CommeMs:�oj� � Auk Zu. i
�
L i�r�aAM.I 1GYVN+Mi1i
l City Manager
Associated Information:
order
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
x Passage
_ First Reading Page _ of
Referral
by the Ory Cm /of the Ob oJ&ww.
ORDERED,
rear
WHEREAS, the City had previously borrowed $700,000 In order to fund the purchase
and remediation of the waterfront properly; and
WHEREAS, the final payment in the amount of $292,847.59 was due on November 1,
1999; and
WHEREAS, these loan payments have been funded through Community Development
drawdowns; and
WHEREAS, federal requirements had necessitated the allocation of Community
Development funds available in the current fiscal year to purposes other
than the repayment of this loan;
NOW, THEREFORE, BE IT ORDERED, THAT this final payment shall be (untied through a
loan from the Sewer Fund to the Community Development Fund; and
BE IT FURTHER ORDERED, THAT such loan is to be repaid upon the drawdown of
Community Development funds in fiscal 2001; and
BE IT FURTHER ORDERED, THAT such loan, which will not be evidenced by a rate,
shall carry a rate of inrerest of 5%, cornpounded semiannually.
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CITY
OF
BANGOR
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by the Ory Cm /of the Ob oJ&ww.
ORDERED,
rear
WHEREAS, the City had previously borrowed $700,000 In order to fund the purchase
and remediation of the waterfront properly; and
WHEREAS, the final payment in the amount of $292,847.59 was due on November 1,
1999; and
WHEREAS, these loan payments have been funded through Community Development
drawdowns; and
WHEREAS, federal requirements had necessitated the allocation of Community
Development funds available in the current fiscal year to purposes other
than the repayment of this loan;
NOW, THEREFORE, BE IT ORDERED, THAT this final payment shall be (untied through a
loan from the Sewer Fund to the Community Development Fund; and
BE IT FURTHER ORDERED, THAT such loan is to be repaid upon the drawdown of
Community Development funds in fiscal 2001; and
BE IT FURTHER ORDERED, THAT such loan, which will not be evidenced by a rate,
shall carry a rate of inrerest of 5%, cornpounded semiannually.
IN CITY COOPCIL .
November 8. 1999
Notion for Passage LflLe and Seconded
00-18
Passed ORDER
Title. Authorizing the Temporary Borrowing
TT of $242.847.59 from the Sewer Fund by the
Co®miry Development Punct