| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | Agenda Title:
22-037 - 1R. An ordinance authorizing early repayment of the Interfund Loan from the Water Fund to the Parks and Recreation Improvements Sales Tax Fund for the Farmers Market Project. |
| | | | | | | | Recommendations:
Approve Ordinance |
| | | | | | | | Background:
The City approved an inter-fund loan on February 5, 2018 to construct the Independence Uptown Market. This loan was made from the Water Fund to the Parks and Recreation Sales Tax Fund and came with a higher interest rate than what the Water Fund was earning on idle funds in the market, but a lower interest rate than the City could’ve obtained on the open market.
There is sufficient unencumbered funds in the Parks and Recreation Sales Tax Fund to pay off the outstanding loan balance in order to avoid future interest charges.
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Fiscal Impact:
Interest paid to the Water fund for the life of the loan as of May 2, 2022 is $246,122. The amount the Water Fund would have made without the loan is estimated to have been $111,643. This is an increase of $134,479 the Water Fund made from the transaction.
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| | | | | | | | | Department: Finance and Administration | Contact Person: Bryan Kidney |
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| REVIEWERS: | | Department | Action | | Finance Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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