HomeMy WebLinkAboutRES 15-11RESOLUTION NO. 15-11
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION,ARIZONA,APPROVING AND AUTHORIZING AN
INTERFUND BALANCE LOAN IN AN AMOUNT NOT TO EXCEED $10,000,000;
AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO
CONSUMMATE THE TRANSACTION CONTEMPLATED BY THIS RESOLUTION;
AND DECLARING AN EMERGENCY.
WHEREAS,the Mayor and City Council of the City Apache
Junction, Arizona ("City) has determined it is beneficial to its
citizens to finance the costs to improve streets and roads (the
"Project"); and
WHEREAS, the council has established a Highway User Revenue
Fund ("HURF")for State and County intergovernmental funds
designated for right-of-way acquisition,construction,
reconstruction, maintenance, repair, and roadside development of
roads, streets, and bridges; and
WHEREAS, the council has established a two tenths -cent (0.2%)
sales tax designated for the Project pursuant to Ordinance No.
1406 ("Project Sales Tax"); and
WHEREAS, the council has determined that it will be beneficial
to its citizens to accelerate the completion of the Project; and
WHEREAS,the council has determined it is beneficial to
finance the Project through an Interfund Balance Loan from the
city's general fund in an amount not to exceed $10,000,000 and to
repay the Interfund Balance Loan from HURF, the Project Sales Tax,
and any other lawfully available source.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF APACHE JUNCTION, ARIZONA AS FOLLOWS:
1)The financing of the Project pursuant to the Interfund Balance
Loan is in furtherance of the purposes of the city and in the
public interest.
2)The terms and provisions of the Interfund Balance Loan shall
be documented pursuant to this resolution (including
Attachment A) as amended and restated by the council.The
adoption of this resolution shall be conclusive evidence of
approval of the Interfund Balance Loan. This resolution shall
RESOLUTION NO. 15-11
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be and remain in effect until the Interfund Balance Loan has
been paid, cancelled, and discharged.
3)The obligation of the city to pay the Interfund Balance Loan
is limited to payment from HURF, the Project Sales Tax, and
any other lawfully available source of repayment and shall
not constitute nor give rise to a general obligation of the
city or any claim against its ad valorem taxing powers, or
constitute an indebtedness within the meaning of any
statutory or constitutional debt limitation applicable to the
city.
4)The city manager and finance director shall disclose and
provide notice of the Interfund Balance Loan to any existing
or future lender or bondholder of any obligation of the city
and its component units.Existing or future lenders can
include,but are not limited to,the Greater Arizona
Development Authority, Pinal County (Arizona), and the Water
Infrastructure Finance Authority of Arizona. As required by
the terms of any prior or future obligation, the city manager
and finance director are hereby directed and authorized to
amend or negotiate the terms and provisions of any obligation
to acknowledge and reference the Interfund Balance Loan as
parity, subordinated, or junior obligation.
5)The city manager and finance director shall separately
account for and present in budgets and financial statements
the revenues and expenditures from the Project Sales Tax. As
part of the annual budget process,the city manager and
finance director shall present an annual accounting of the
payments and projected payments to the general fund for the
Interfund Balance Loan.
6)All formal actions of the mayor and council concerning and
relating to the passage of this resolution were taken in an
open meeting of the mayor and council, and all deliberations
of the mayor and council and of any committees that resulted
in those formal actions were in meetings open to the public,
in compliance with all legal requirements.
7)All acts and conditions necessary precedent to the Interfund
Balance Loan to make it a legal, valid and binding obligation
have been performed and have been met, in regular and due
form as required by law,and no statutory,charter or
constitutional limitation of indebtedness or taxation will
have been exceeded by the Interfund Balance Loan.
8)If any section,paragraph, subdivision, sentence, clause or
phrase of this resolution is for any reason held to be illegal
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or unenforceable, such decision will not affect the validity
of the remaining portions of this resolution.The mayor and
council hereby declare that it would have adopted this
resolution and each and every other section,paragraph,
subdivision, sentence, clause or phrase hereof and authorized
the Interfund Balance Loan pursuant hereto irrespective of
the fact that any one or more sections,paragraphs,
subdivisions,sentences,clauses or phrases of this
resolution may be held illegal,invalid or unenforceable.
All resolutions or parts thereof, inconsistent herewith, are
hereby waived to the extent only of such inconsistency.This
waiver shall not be construed as reviving any resolution or
any part thereof.
9)All actions of the officers and agents of the city which
conform to the purposes and intent of this Resolution and
which further the Interfund Balance Loan as contemplated by
this resolution,whether heretofore or hereafter taken, are
hereby ratified,confirmed and approved.The appropriate
officials and officers of the city are hereby authorized and
directed to take all action necessary or reasonably required
to carry out,give effect to and to consummate the actions
contemplated by this resolution, the Interfund Balance Loan,
and the execution of any other documents reasonably required
in connection therewith.
10)The immediate operation of the provisions of this resolution
is necessary for the preservation of the public health and
welfare; therefore, an emergency is hereby declared to exist
and this resolution is enacted as an emergency measure and
shall be in full force and effect from and after the passage
and adoption by the mayor and council, as required by law,
and this resolution is hereby exempt from the referendum
provisions of the constitution and laws of the State of
Arizona.
PASSED AND ADOPTED BY THE MAYOR AND CITY C2UNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA THIS oaks-rDAy OF ,41/3ZjL,2015.
SIGNED AND ATTESTED TO THIS 0.2157DAY OF
RESOLUTION NO. 15-11
Page 3 of 5
2015
N S. INSALACO
ayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM:
C t.- 4(515
R. JOEL STERN
City Attorney
RESOLUTION NO. 15-11
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RESOLUTION NO. 15-11
Attachment A
Interfund Balance Loan
As of April 6, 2015
Section A -I: Project Funding, Before Repayment of Interfimd Balance Loan
0.2% Sales Tax 5,204,040
General Fund 6,090,662
HURF 2,675,000
$13,969,702
Section A-2: Project Funding, After Repayment of Interfund Balance Loan
0.2% Sales Tax 9,754,628
General Fund 340,074
HURF 3,875,000
$13,969,702
Section A-3: Project Expenses
Fiscal 0.2%General Fiscal Year
Year Year Sales Tax Fund HURF Total
2014-15 1 ---$-
2015-16 2 1,000,000 788,034 1,475,000 $3,263,034
2016-17 3 1,020,000 1,668,334 300,000 $2,988,334
2017-18 4 1,040,400 1,647,934 300,000 $2,988,334
2018-19 5 1,061,208 1,117,542 300,000 $2,478,750
2019-20 6 1,082,432 868,818 300,000 $2,251,250
Total $5,204,040 $6,090,662 $2,675,000 $ 13,969,702
Section A-4: Interfund Balance Loan
Fiscal General Fund 0.2% Sales Tax HURF Loan Ending
Year Year Loan Draws Repayment Repayment Balance
2014-15 1 ----
2015-16 2 788,034 --788,034
2016-17 3 1,668,334 --2,456,368
2017-18 4 1,647,934 --4,104,302
2018-19 5 1,117,542 --5,221,844
2019-20 6 868,818 --6,090,662
2020-21 7 -1,104,081 300,000 4,686,581
2021-22 8 -1,126,162 300,000 3,260,419
2022-23 9 -1,148,686 300,000 1,811,733
2023-24 10 -1,171,659 300,000 340,074
Total $6,090,662 $4,550,588 $1,200,000 $340,074
RESOLUTION NO.15-11
Attachment A