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RESOLUTION: 2002-28
SUBJECT: Approval of a Resolution authorizing the City of Lakewood to transfer monies from the Sewer Fund to the Capital Improvement Fund, and further authorizing a loan between the Sewer Fund (lender) and the Capital Improvement Fund (borrower) for repayment.
ADDRESS: N.A.
RECOMMENDATION: Staff recommends approval of the Resolution providing for a transfer from the Sewer Fund to the Capital Improvement Fund in an amount not to exceed $2,350,000 for the purchase of the new Computer Aided Dispatch/Records Management system (CAD/RMS) for the Police Department. Staff further recommends the approval of a three-year loan agreement between the Capital Improvement Fund and the Sewer Fund for repayment of such amount, including a fixed rate of interest.
FUNDING SOURCE: Sewer Fund
SUMMARY AND BACKGROUND OF SUBJECT MATTER: The Capital Improvement Fund has currently planned for expenditures relative to the purchase/lease of the Computer Aided Dispatch/Records Management system (CAD/RMS) for the Police Department project over the next 5 years. Since the project will be completed over the next 2 years there is a gap in available funding during the 2nd year of the project. In an effort to reduce financing costs, the City is seeking to implement an "internal" loan so as to avoid onerous third party costs and inflexible structure relative to such a financing. It is estimated that the City will be able to save over $200,000 by using this form of financing.
Details for the loan are as follows:
· The Capital Improvement Fund will receive funds from the Sewer Fund, periodically, in 2003 to fund expenditures solely related to the Police Department CAD/RMS project, similar to a "line of credit".
· The amount received will only be during calendar 2003 and is not to exceed $2,350,000 in total. The loan will accrue interest from the time funds are transferred until subsequently repaid.
The Capital Improvement Fund will in turn repay the amount borrowed, plus interest, in 2004, 2005 and 2006 in unequal payments.
RESOLUTION ADOPTION DATE: April 22, 2002
ORIGINATED BY: Larry Dorr, Financial Analyst
STAFF PERSON RESPONSIBLE: Larry Dorr, Financial Analyst, 303-987-7668
DOCUMENTS ATTACHED: Resolution 2002-28
SUBMITTED BY:
Jacque Wedding-Scott, Director of Finance
REVIEWED BY:
Joni Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager
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