Title
AN ORDINANCE APPROVING THE TERMS FOR THE INTERFUND LOANS FOR THE FUNDING OF THE PURCHASE OF A HANGAR, FIXTURES AND PERMANENT IMPROVEMENTS FROM TRANSPORTATION SALES TAX REVENUES, APPROVING AMENDMENT NO. 11 TO THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2017, AS ADOPTED BY ORDINANCE NO. 7894, AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AS ARE NECESSARY TO IMPLEMENT THE INTERFUND LOANS TERMS APPROVED HEREIN SUBJECT TO ANNUAL APPROPRIATIONS. (F&BC 5/8/17)
Body
Issue/Request:
AN ORDINANCE APPROVING THE TERMS FOR THE INTERFUND LOANS FOR THE FUNDING OF THE PURCHASE OF A HANGAR, FIXTURES AND PERMANENT IMPROVEMENTS FROM TRANSPORTATION SALES TAX REVENUES, APPROVING AMENDMENT NO. 11 TO THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2017, AS ADOPTED BY ORDINANCE NO. 7894, AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AS ARE NECESSARY TO IMPLEMENT THE INTERFUND LOANS TERMS APPROVED HEREIN SUBJECT TO ANNUAL APPROPRIATIONS.
Key Issues:
The City recently purchased Hangar 1 at the Lee's Summit Municipal Airport at a cost of $1,503,081. The initial purchase was made using the City's Reserve Fund until appropriate financing could be identified. This ordinance is a follow up item to establish a financing plan for the cost of the hangar and has two key elements;
1. The ordinance establishes an annual transfer of funds from fund F324 - Road & Bridge Improvement to F510 - Airport Fund to retire existing debt and finance the purchase of Hangar 1.
2. Authorizes a transfer of funds ($132,913) from the General Fund Reserve balance for the purchase of capital equipment associated with the operation of Hangar 1 to be repaid on July 1, 2024.
Attached to the ordinance is Exhibit A which outlines the funding amounts and intervals.
Proposed Council Motion:
FIRST MOTION: I move for second reading of AN ORDINANCE APPROVING THE TERMS FOR THE INTERFUND LOANS FOR THE FUNDING OF THE PURCHASE OF A HANGAR, FIXTURES AND PERMANENT IMPROVEMENTS FROM TRANSPORTATION SALES TAX REVENUES, APPROVING AMENDMENT NO. 11 TO THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2017, AS ADOPTED BY ORDINANCE NO. 7894, AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AS ARE NECESSARY TO IMPLEMENT THE INTERFUND LOANS TERMS APPROVED HEREIN SUBJECT TO ANNUAL APPROPRIATIONS.
SECOND MOTION: I move for adoption of AN ORDINANCE APPROVING THE TERMS FOR THE INTERFUND LOANS FOR THE FUNDING OF THE PURCHASE OF A HANGAR, FIXTURES AND PERMANENT IMPROVEMENTS FROM TRANSPORTATION SALES TAX REVENUES, APPROVING AMENDMENT NO. 11 TO THE BUDGET FOR THE FISCAL YEAR ENDING JUNE 30, 2017, AS ADOPTED BY ORDINANCE NO. 7894, AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AS ARE NECESSARY TO IMPLEMENT THE INTERFUND LOANS TERMS APPROVED HEREIN SUBJECT TO ANNUAL APPROPRIATIONS.
Background:
On November 3, 2016, the Mayor and City Council approved ordinance No. 8010 authorizing the purchase of 'Hangar 1' from DeJarnette Enterprises in the amount of $1,503,081. Funding for this purchase was identified using the unallocated balance of fund F324 - Road & Bridge Improvement. This financing plan establishes an annual transfer of $300,616.20 from Fund 324 over a 5 year period.
Presenter
Presenter: Conrad Lamb, Finance Director | Dena Mezger, Director of Public Works
Recommendation
Recommendation: Staff Recommends Approval
Committee Recommendation
Committee Recommendation: N/A