HomeMy WebLinkAboutCity Council Resolution 2013-036CITY OF PLYMOUTH
RESOLUTION No. 2013-036
APPROVING INTEREST RATE REDUCTION FOR THE INTERFUND LOAN
FROM THE PARK REPLACEMENT FUND TO THE ICE CENTER FUND
WHEREAS, the Park Replacement Fund provided an interf and loan to the Ice Center Fund for
constriction of the third sheet of ice; and
WHEREAS, the City Council originally approved the use of these fiends on November 10, 2003
to be repaid from the Ice Center operations over a 15 -year term at an assigned interest rate of 5.25%; and
WHEREAS, it was the city's intention to borrow these fiends internally at a lower rate than the
city could issue municipal bonds for at that time; and
WHEREAS, the market conditions have significantly impacted interest rates over the last several
years; and
WHEREAS, it is city practice to continually monitor potential interest savings by reviewing
opportunities to refund existing debt; and
WHEREAS, the City is applying this same practice internally to the interf and loan between the
Park Replacement Fund and the Ice Center Fund; and
WHEREAS, the Ice Center's total payments will be reduced by $20,280 annually for the
remaining seven years of the loan resulting in total savings to the Ice Center of $141,960.
NOW, THEREFORE BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PLYMOUTH, MINNESOTA, that the interest rate for the interfiind loan between the Park
Replacement Fund and the Ice Center Fund is hereby reduced from 5.25% to 1.5% on the outstanding
principal amount of $888,200.05, effective January 1, 2013.
Approved this 12th day February, 2013.