HomeMy WebLinkAboutR-02-42RESOLUTION NO. R-02-42
A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA,
ESTABLISHING A LINE OF CREDIT RESERVE IN THE
AMOUNT OF ONE MILLION DOLLARS ($1,000,000) WITHIN
THE GENERAL FUND FOR THE PURPOSE OF FUNDING
IMPROVEMENTS AT THE SEBASTIAN MUNICIPAL AIRPORT;
ESTABLISHING THE USE OF FUNDS; ESTABLISH A RATE OF
INTEREST; ESTABLISHING A TERM; PROVIDING FOR
CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City Council has determined that improvements at the Sebastian
Municipal Airport will provide additional economic opportunities by adopting the Airport
Master Plan; and
WHEREAS, the level and cost of capital improvements necessary to bring the Sebastian
Municipal Airport to economic viability will decrease the Airport's reserves below a level from
which to consistently fund capital improvements; and
WHEREAS, the cost of obtaining loans and the interest rates thereof, for the purpose of
improving the Sebastian Municipal Airport would exceed the Airport's ability to repay the
loans; and
WHEREAS, the General Fund has sufficient reserves to cover short-term lending to
Sebastian Municipal Airport at an interest rate below market value,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEBASTIAN, THAT:
Section 1. AIRPORT LINE OF CREDIT RESERVE. There is hereby established a
reserve in the General Fund Fund Balance in the amount of ONE M1LLION DOLLARS
($1,000,000) to provide short-term funding for improvements at Sebastian Municipal Airport.
Section 2. USE OF FUNDS. The Airport Line of Credit Reserve is to be used for
funding, on a short-term basis, capital improvements at Sebastian Municipal Airport. Each
draw from the Line of Credit will have a life of one year or less, after which, it shall be repaid to
the General Fund in full, including interest.
Section 3. RATE OF INTEREST. The interest rate charged on each Line of Credit
Draw shall be the monthly participant return rate received by the Local Government Surplus
Funds Trust Fund (SBA). This rate shall be used to recover the interest lost on investment.
Section 4. TERM OF RESERVE. This Line of Credit Reserve shall have a term not
to exceed five (5) years.
Section 5. This Resolution shall become effective on October 1, 2002.
It was moved for adoption by Councilmember Majcher
The motion was seconded by Councilmember Barczyk
put to a vote, the vote was as follows:
and, upon being
Mayor Walter Barnes
Vice Mayor James A. Hill aye
Councilmember Ray Coniglio aye
Councilmernber Joe Barczyk aye
Cotmcilmember Ed Majcher aye
absent
The Mayorthereupon declared this Resolution duly passed and adopted this 12th day of September,
2002.
CITY OF SEBASTIAN, FLORIDA
./~----~ayor Walter Barnes
ATTEST:
Sally A. IriS, CMC
City Clerk-
Approved as to form and content for
reliance by the City of Sebastian only:
Rich Stringer, City Attofi~y