HomeMy WebLinkAbout2009 Resolution No. 033• RESOLUT ION NO. ~
SERIES OF 2009 --
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A RESOLUTION TRANSFERRING FUNDS FROM HIE GENERAL FUND 'S LONG TERM
ASSET RESERVE (LTAR) TO TH E ENGLEWOOD MCL ELLAN RESERVOfR
FOUNDATION (EMRF).
WHEREAS, the City Counci l of th e Ci ty ofEnglewood , Colorado created the Long Tenn
Asset Reserve (LT AR) with the pa ssage of Resolu ti on No. 90, Series of 2007; and
\\'HEREAS, the Englewood City Council determined that funds from the sa le, lease or
earnings of long-term assets shou ld be used in a er ·ful, judiciou s nnd strategi c ma nne r and for
this rea son, these fund s will be reserved in th e LT AR; and
WHEREAS, the funds tricted in the LT AR account can only be expended if th e funds are
appropriated in the annual budget or by supplemental ap propriation; and
WHE REAS , the remaining funds from the Golf Course lease were transferred and restricted to
the LTAR by the passage of Resol ution No. 91, Se r.es of 2007; and
WHEREAS, Resolution No. 34, Series of D;,, 'a'!lnsferred $499 ,142.50 to the LT AR, bringing
the balance to $2,485,142.50; and
WHEREAS, Resolution No. 39, Series of 2008 transferred $1,500,000 fro m the Genera l
Funds' unreserved/undesignated fund to LTAR ; and
WHEREAS, Resolution No . 30 , Series of 2009 transferred S 165,000 from th e L TAR to the
Public Imp rovement Fund for street improvements ; and
WHEREAS, during the 2009 Budget process the Englewood City Council agreed to fund
$800,000 from LT AR funds to EMRF to complete si te preparation and fund operations until the
property is leased and produc es re ve nues to support the EMRF and Ci ty serv ices; and
WHEREAS, the EMRF Board estimates it will be able to repay $600,000 to the LT AR by the
end of 2009; and
WHEREAS, the Englewood City Council has determined th e transfer of $800,000 from the
LTAR to the F.MRF to complete site preparation and fund operati ons until the property is leased
and produces revenues to support the EMRF and City serv ice s is appropriate;
NOW , THEREFORE, BE IT RESOLVED BY THE CITY COU NCIL OF THE CITY OF
ENGLEWOOD, COLORADO, THAT:
Section l -The City Council of the City of Englewood , Co lorado au :hori zcs the transfe r of
funds from the Long Tenn Asse t Reserve (LTAR) to th e Englewood ~l cLc ll an Rese rvoir
Foundation (EMRF) as fo ll ows:
GENERAL FUND
SOURCE OF FUNDS:
Long Tenn Asset Re serv e
USE OF FUNDS:
Transfer to the Englewood McLellan Reservoir Foundati ,,n
ENGLEWOOD MCLELLAN RESERVOIR FOUNDAlION
SOURCE OF FUNDS :
Transfer in from the Genera l Fund (LT AR)
USE OF FUNDS:
Site Preparation and Operations
$800 ,000
,800 ,000
$800,000
$800 ,000
Section 2, The City Manager and the Director of Finance and Administrative Services are
hereby authorized to make th : above cha nges to th e 2009 Budget for the City of Englewood,
AD OPTE D AND APPROVED this 23rd da y of March, 2009 ,
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COUNCIL COMMUNICATION
Date: Agenda Item: Subject:
March 23, 2009 11 C i A Res o lution Trans ferri ng $800,000 from th e
General Fund 's Lo ng Term Ass et Res erve to the
Englewoo d M cl ellan Reservo ir Foundati o n
Initiated By:
Department o f Financ e and Adminis tr ative Servi ces
I Staff Source:
Fra nk Gryglewicz, D irec tor
COUNCIL GOAL AND l'REVIOUS COUNCIL ACTION
City Council began disc ussin~ th e crea ti on of th e Lo ng Term Asse t Reserve (LTAR) at th e Budget
Retr ea t held September 22, .:007. City Council crea ted the LTAR by approving Resol ution 90,
Series of 2007. C o unci l tran sferre d $1 ,986,000 into th e LTAR by approving Resol uti o n 91, Series of
2007. Council pass ed Resolution 34, Series of 2008 transferri ng $499,142.59 from th e RTD sale to
th e LTAR . Co unci l transferred $1 ,500,000 from th e General Fund's unreserved/undesignated fund
ba lance by passing Reso lution 39, Series of 2008 o n February 2, 2008. Th ese ac ti ons place d
$3,485,142.50 in the L TAR .
City Council approved a reso luti o n transferring $165 ,000 from th e LTA R to th e Publi c Improvem en t
Fund for st ree t improve ments on March 2, 2009 ; this action redu ced the bala nce to $3 ,070,142 .50.
This acti on wi ll reduce the ba lance to $2 ,270,142.50, but staff believes $600,000 of th e funds will
be repaid to the LTAR by year-end.
Thi s subject was dis cusse d with City C o uncil at the March 2, 2009 s:udy session ; City C :,unci l
req uest ed staff place thi s action in the fo rm of a reso lu tion o n the March 23 agenda .
RECOMMENDED ACTION
Staff recommends City Council approve th e attac hed reso luti on tr ansferrin g $800,000 from th e
Long Term As se t Re~erve (LTAR) to th e Englewood M c l ell an Reserv oi r Fo undati on (EMRF) to
com plete si te prepara tion and fund o peration s until th e property is leased and produces revenu es
to su p po rt the EMRF and City services.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
City Council di.s c ussed and determined that fu nds from th e sa le, lea se, o r earn in gs from long-terr r
asse ts sho uld ~ ,. use d in a ca refu l, j udicious and stra tegic mann er; for th is reason, th ese funds w"·
be reserved i•, an accoun t known as th e Long Term Asset Reserve (LTAR). The funds res trr c teo in
this accoun t ca n o nly be expended if th e funds are ap p ropria ted in th e annual budget or by
supplemental ap~ropriation .
The EM RF Boa rd is di rec ting all ac tivit ies related to th e Mclellan pro p erty, incl udin g si te •
prep ara ti on, marketin g, lease negotiati on, and related administrati ve ac ti viti es. No b oard m emb er is
co mpens ated fo r participa tin g on th e Board .
The Board o rig ina ll y budge ted $2 ,170,000 l o com p lete th e site work but unforesee n "soft cos ts"
and c as h fl ow iss ues were n ot rea lized or budgeted for at th e time th e budget w as origi nall y
formu lat ed.
The reques t fr om EMRF is partia ll y funded from th e $499,142 .50 from th e sale of Mclell an property
that was placed in th e LT AR .
Th e foll owing illustrates the transfer and use oi f,,n,J s:
GENERAL FUND
SOURCE OF FUNDS :
Lon g Term Asse t Reserve (LTAR)
USE OF FUN DS :
Transfe r to the En glewood Mclellan Reservoir Founda tion
ENGLEWOOD MCLELLAN RESERVOIR FOUNDATION
SOURCE OF FUNl)S :
Tra nsfer in from the General Fund (LTAR)
USE OF FUNDS :
Site Prepara tion and Operations
FINANCIAL IMPACT
$800,000
$800,000
$800,000
$800,000
This action will transferfunds fr om th e LTAR to the EMRF for land prep. on ex pendi tures . City
Counc il controls th e use of th e L TAR fund •, therefore, a form al ac ti on, such as thi s suppl em ental
appropriation is required to expend the funds . This ac tion will reduce th e I.TAR by $800,000 to
$2,270,142.50. Th e EMRF believes that $600,000 of th e funds w ill be returned to th e LTAR by
year's end and an additio nal $100,000 w ill be repaid to th e LTAR by the end of 2011.
LIST OF ATTACHMENTS
Proposed Resolu tion
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