HomeMy WebLinkAbout1998 Resolution No. 087• RESOLUTION No. ti
SERIES OF 1998
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A RESOLUTION FOR THE APPROPRIATION AND TRANSFER OF F tn.rns YROM THE
1998 BUDGET TO '!'HE ENGLEWOOD URBAN RENEWAL AUTHORITY (EUIV.).
WHEREAS , th, :ty Council of the City of Englewood , Colorado approved tM City of
Englewood's 1998 , .. ,dget on October 20 , 1997; and
WHEREAS , the 611gl ewood City Council approve d Council Bill No . 8. Senes l 983 which
provided for support for the EURA ; and
WHEREAS, the pa ssnge of this Resolution will appropriate the funds needed for the
EURA to defend itself in a lawsuit which was filed on November 26, 1997 by tho Truatee on
behau· of the bondholders against the EURA, the City and tne County Asseuor !or breach of
contn.ct:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THB C ITY OF
ENGLEWOOD, <:OLORADO , THAT:
~. Tbe City of Englewood 1998 Budget is hereby amended as follows:
GENERAL FUND:
Sour:ce of Funds :
Unreserved/Undesignated Fund Balance
l Ts es of Funde ·
Transfers out to EURA for payment of
legal fee s for defense of lawsuit
$50 ,00G
$50.000
Si:i:tism.2 . The City Manager and the Directo r of Financial Services are bel'H')· authorized
to make the a bove changes to the 1998 Budget of the City of Englewood .
ADOPTED AND APPROVED this 3rd of August, l 998.
I, Loucris hia A. E!Jis. City Clerk fo r the City of Englewood , Co
above is a true copy of Resolu t on No . .2J. Series of 1998 .
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COUNCIL COMMUNICATION
Date Agenda Item Subject Resolution approving
a supplemental appropriation
and transfer of funds from the
General Fund to the EURA for
August 3, 1998 11 Ci leg al services
Initiated By
Department of Financial Services
I Staff Source
Frank Gryglewicz , Director
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Pre vious Ciiy Councils created and sup pnrted the EURA . The EURA was created to aid in the
revitalization of blighted locations in the City of Englewood . In 1985 the EURA issued tax Increment
debt to aid in 1he assembling land to revitalize various areas in the City. In June of 1991, the Authority
was not able to meet its lull scheduloo debt service payment , and the bonds were deemed in default.
The Trustee representin g the bondholders accelerated the payment of the entire prin ci pal. Tt,ls action
forced compounding of interest on the outstanding principal and unpaid Interest. This has increased
th e tax in·:r~-nern deb t payable to $31,815,137 as ol December 31, 1997.
On Nove mber 26, 1997 the Tru stee , on behalf of the bondholde rs, filed a lawsuit against the Aut hority ,
the City of Englewood, and the County Assessor for breach of contract. The T:-ustee Is saeking to
force ti1e extension of the life of the tax increment beyond the statutory 25 year limit until the principa l
a ·d inte rest are p aid in full.
The Autho rity has very limited assets and no funding sources to defend itself aga inst th is lawsuit.
Therefo re, the EU RA is requesting $50,000 to defend itself in th is lawsuit. The City Council approved
Council Bill Numbe r 8 , Series of 1983 on February 22, 1983. Th is Council Bill provi ded for opera ting
stall, equ ipment.. and related support for the EURA . Section 4 of the agreement provides tha t the City
of Englewood "In addition le o,oviding stall employees for the Authority , the City wi ll provide 'he
Authority with such oth er services as may be req uired ,n order lo perform its public fu nctions, 1r ,._;ud ing ,
but not lim ited b , accou nting , treasury , managem ent , procurement , personnel services, engineerin g
services , ptanrung se rvi ces , and legal services ." Th e agreement does require the City to provide leg al
services as m:r.P-sted in the attached rPsolu lion .
RECOMMENDED ACTION
Staff rec ommends City Coun cil approve the attached resolut ion appropriating and transferring funds to
the EURA
Th e sources and use s of these fund s are:
GENERAL FUND:
SOURCE OF FUNDS :
Unre served.11.J ndesignate d Fun d Ba lance $50 ,000
USE OF FUNDS:
Tra nsfe rs out to the EURA Fun d $50,000
The EURA wdl lake separate actio n lo am end its budget.
1.10,TAO 1-iUF;IMCO '.)!Ill.I
FINANCIAL IMPACT
This appropriation and transfer will reduce the General Fund unre58fVC!dlundesignated fund balance by
$50,000 ,
LIST OF ATTACHMENTS
Proposed resolution
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