R09-162
1 RESOLUTION R09- 102-
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3 A RESOLUTION OF THE CITY COMMISSION OF THE
4 CITY OF BOYNTON BEACH, FLORIDA, APPROVING THE
5 INTENT OF THE CITY TO REIMBURSE EXPENDITURES
6 INCURRED BY THE CITY'S WATER & SEWER UTILITY
7 SYSTEM PRIOR TO THE ISSUANCE OF BONDS OR OTHER
8 FORM OF FINANCING; AUTHORIZING A SHORT-TERM
9 INTERFUND LOAN IN THE MAXIMUM AMOUNT OF
10 $15,000,000.00 WITH INTEREST AT THE ANNUAL RATE OF
11 3% FROM THE UTILITY SYSTEM CAPITAL FUND TO THE
12 UTILITY SYSTEM CAPITAL REPAIR & REPLACEMENT
13 FUND; AND PROVIDING AN EFFECTIVE DATE.
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15 WHEREAS, the Utility System Capital Repair & Replacement Fund is in need of
16 interim financing, up to $15,000,000.00, to begin as soon as possible which will allow the
17 Utility System to continue with its capital improvement plan set forth in the adopted budget
18 approved by the City Commission; and
19 WHEREAS, due to bond market conditions and the issuance of audited financial
20 statements for fiscal year 2008-09, permanent financing is not practical at this time; and
21 WHEREAS, the Utility System Capital Expansion Fund has current monies available
22 that are not needed until later in the fiscal year; and
23 WHEREAS, the City will reimburse itself for expenditures and the interfund loan
24 balance plus interest once the permanent financing is issued and the proceeds are received; and
25 WHEREAS, the City Commission of the City of Boynton Beach upon recommendation
26 of staff, deems it to be in the best interest of the citizens and residents of the City of Boynton
27 Beach to approve and authorize a short-term interfund loan in the maximum amount of
28 $15,000,000.00 with interest at the annual rate of 3% from the Utility System Capital
29 Expansion Fund to the Utility System Capital Repair & Replacement Fund and approves the
30 intent of the City to reimburse expenditures incurred prior to the issuance of bonds or other
31 form of financing for the City's Water & sewer Utility System
S:\CA\RESO\RESO - Reimburse expenditures (Utility System).doc
1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
2 THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
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Section 1.
The foregoing "Whereas" clauses are hereby ratified and confirmed as
4 being true and correct and are hereby made a specific part of this Resolution upon adoption
5 hereo f.
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Section 2.
The City Commission of the City of Boynton Beach hereby approves and
7 authorizes a short-term interfund loan in the maximum amount of$15,000,000.00 with interest
8 at the annual rate of 3% from the Utility System Capital Expansion Fund to the Utility System
9 Capital Repair & Replacement Fund and approves the intent of the City to reimburse
10 expenditures incurred prior to the issuance of bonds or other form of financing for the City's
11 Water & sewer Utility System
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Section 3.
That this Resolution shall become effective immediately upon passage.
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PASSED AND ADOPTED this ~ day of October, 2009.
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CITY OF BOYNTON BEACH, FLORIDA
A TrEST:
comminer - Ronald we~
Commissioner - ose dri
~L~