HomeMy WebLinkAbout2004-28 CDBG Interfund LoansRESOLUTION NO. 2004-
A RESOLUTION AUTHORIZING INTERFUND LOANS TO THE COMMUNIITY
DEVELOPMENT BLOCK GRANT AND TELECOMMUNICATIONS FUNDS
Recitals:
A. ORS 294.460 requires an ordinance or resolution to permit a loan from one fund to
another; and
B. A loan cannot be made from a debt service fund to any other fund, and
C. If the loan will not be repaid by the end of the fiscal year, it must be a budgeted
requirement in the following year's budget.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. The Finance Director is hereby authorized to borrow up to $3,000,(:)00 from
the Water Fund, up to $4,500,000 from the Wastewater Fund and up to $1,000,000 from
the Electric Fund for the Telecommunications Fund as interim financing for capital project
and operating costs to date in anticipation of selling bonds to refinance said costs.
SECTION 2. The Finance Director is hereby authorized to borrow up to $215,000 from the
General Fund for the Community Development Block Grant Fund for repayment to the US
Department of Housing and Urban Development for the Grove property in anticipation of
selling other City assets to pay this debt.
SECTION 3. The loans will be made prior to July 31, 2004, or as needed throughout the
fiscal year and will be repaid with accrued interest prior to June 30, 2005.
SECTION 4. Interest will be charged at the Local Government Investment Pool interest rate
at the date of the loan or the date of repayment, whichever is higher. Interest shall be paid
quarterly.
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SECTION 5. This resolution takes effect upon signing by the Mayor.
This resolution was read by title only in accordance with Ashland Municipal Code
§2.04.090 duly PASSED and ADOPTED this 20th day of July, 2004.
Barbara Christensen, City Recorder
SIGNED and APPROVED this 20th day of July, 2004:
Alan W. DeBoer, Mayor
Reviewed as to form:
M ic~a/el V(/. ~r~n~, 'City At-~rney
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CITY OF
LAIN D
February 13, 2004
Joy Hirl
HUD Public Trust Specialist
US Department of Housing and Urban Development
400 South West Sixth Ave. Suite 700
Portland, Oregon 97204-1632
Dear Ms. Hirl:
Thank you and thanks to your colleagues for taking the time to speak with us via the confbrence phone
call on February 3, 2004.
This letter serves as the pledge to the US Department of Housing and Urban Development (HUD) by the
City of Ashland to reimburse $214,877.33 to the City of Ashland's Community Development Block
Grant (CDBG) line of credit no later than August 1, 2004. The City has determined that "the Grove"
building no longer meets the CDBG requirements and has requested to reimburse the CDBG program
the current fair market value of the CDBG investment in the building. As was clarified irt our phone
conversation, this pledge removes all HUD restrictions currently placed on activities in thee facility
known as "the Grove".
Director Doug Carlson's letter of January 12, 2004, included instructions for transferring funds to
Ashland's Line of Credit in the US Treasury. The transfer will occur no later than Augus~t 1, 2004. If the
transfer of funds does not occur, HUD reserves the right to reduce the City of Ashland's Community
Development Block Grant (CDBG) line of credit by $214,877.33 to satisfy the repayment.
Sincerely,
Gino Grimaldi, City Administrator
City of Ashland
The Department of Housing and Urban Development acknowledges receipt of this pledge,' and approves
of it as a formal commitment on behalf of the City to reimburse the CDBG contribution to the Grove
facility.
Doug Carlson, Director Community Planning and Development
US Department of Housing and Urban Development
CITY HALL Tel: 541-488-6002
20 East Main Street Fax: 541-488-5311 llr,~k~l
Ashland, Oregon 97520 TTY: 800-735-2900
www.ashland.or, us