10. Resolution 4241 - Bid Award - AmbulanceRESOLUTION NO. 4241
A RESOLUTION AUTHORIZING THE FINANCE DIRECTOR TO ADVANCE FUNDS
FROM THE SEWER REPLACEMENT AND DEPRECIATION ACCOUNT TO THE
AMBULANCE FUND IN THE AMOUNT OF $30,000 FOR A PERIOD OF 3 YEARS AT
6.4% FOR THE PURPOSE OF FINANCING THE PURCHASE OF AN AMBULANCE.
WHEREAS, the City has in its Sewer Replacement and
Depreciation account funds to be invested on a long term basis, and
Whereas, the Ambulance Fund wishes to finance a portion of the
cost of the new ambulance over three years, and
WHEREAS, the Ambulance Fund will purchase a new ambulance at
a cost of $58,947 and the Ambulance Fund will finance $28,947 from
current reserves, and
WHEREAS, the Ambulance Fund wishes to finance $30,000 over a
period of three years, and
WHEREAS, the City is authorized and required to transfer funds
from one fund to another fund only by resolution or ordinance.
NOW, THEREFORE be it resolved by the City Council of the City
of Kalispell as follows:
That the Finance Director is hereby authorized and
directed to advance the aforementioned funds from the
Sewer Replacement account to the Ambulance Fund to be
repaid over a period of 3 years at an interest rate of
6.4% with interest paid semi-annually.
PASSED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AND APPROVED BY
THE MAYOR THIS DAY OF , 1995.
Douglas D. Rauthe, Mayor
ATTEST:
Debbie Gifford, CMC
Clerk of Council
1heCl�oiKallspell
Incorporated 1892
Telephone (406) 752-6600
Douglas Rauthe
FAX (406) 752-6639
Mayor
Post Office Box 1997
Zip 59903-1997
Bruce Williams
City Manager
City Council
Members:
Date: October 13, 1995
Gary W. Nystul
Ward I
TO: Bruce Williams
City Manager
Cliff Collins
Ward I
From: Amy Robertson
Barbara Moses
Ward II
Finance Director
Dale Haarr
RE: Ambulance Financing-3 year loan; $30,000.
Ward II
Jim Atkinson
The State board of Investments offers an INTERCAP Revolving Fund loan
Ward III
with variable rates for the purchase of equipment by local governments.
Lauren Granmo
program
The Bond Program Officer indicated that they do make loans to Enterprise funds
Ward III
and that they require the same 1.25 coverage of debt service as we do in our
Pamela B. Kennedy
utility funds. The Ambulance Fund rate structure does not lend itself to
Ward IV
anticipating a rate which would meet these requirements. The Bond Program
M. Duane Larson
Officer did indicate that they could make the loan to the General Fund at a
Ward IV
variable rate currently at 6.4%. A $700 commitment fee would be required.
It would be my suggestion to make a loan advance from the Sewer Replacement
and Depreciation Cash account to the Ambulance Fund at 6.4% for three years.
These Sewer funds are currently invested with the Board of Investment's STIP
program earning 5.94%. Since our investments are with the Board of
Investments, it doesn't make sense to borrow from them at a higher rate. In
effect, they would be loaning us back our own funds. If we proceed in this
manner then the liability for the debt stays with the Ambulance Fund and does
not become a general government debt commitment.
If you prefer to go with the INTERCAP program we will need to make an
application, the Council must pass a resolution adopting a commitment
agreement and there must be a bond closing the same as for any bond issue.
The State sells bonds to finance this program. This is a very cumbersome
process for such a small loan amount. This will become a general obligation of
the taxpayers.