HomeMy WebLinkAboutResolution - 90-156 - Transferring Connection Charges, User Fees, Intended from Debt Services - 06/05/1990 C/ o - is (-
RESOLUTION RELATING TO THE WATER AND SEWER FUND
OF THE CITY; CORRECTING AN IMPROPER ALLOCATION
OF CONNECTION CHARGES AND USER FEES TO THE DEBT
SERVICE FUND THEREIN
BE IT RESOLVED by the City Council of the City of Eden
Prairie, Minnesota, as follows :
1 . The City has heretofore issued general obligation
revenue bonds payable from the debt service funds established
within the City' s Water and Sewer Fund. The bonds are payable
from a combination of special assessments, water and sewer
revenues and, to the extent necessary, ad valorem taxes . The
resolutions under which the bonds were issued require the City to
deposit in the debt service funds all of the special assessments
levied with respect to the projects financed by the bonds, and so
much of the revenues derived from user fees, connection charges
and other fees and charges for the use and availability of the
water and sewer utility as are necessary in each year to provide
for the payment of the debt service on the bonds .
2 . It has come to the attention of the City staff that,
inadvertently, water and sewer revenues have been deposited in the
debt service funds in excess of those necessary to pay annual debt
service. As a result, a surplus has been accumulated in the debt
service fund, consisting of moneys which should not have been
deposited therein, and which, if not so deposited, could be used
for other water and sewer purposes . After consultation with bond
• counsel, City staff recommends that a portion of the user fees and
connection charges, and investment income attributable thereto, be
transferred from the debt service funds to another fund within the
water and sewer group of accounts .
3 . This Council hereby appropriates an amount equal to
the user fees and connection charges collected from A,1& ,,7- / ,
19Zf to and including July 1, 1990, and investment income thereon
for the same period, from the debt service funds within the water
and sewer fund of the City, and subsequent collections of user
fees and connection charges, to the �L-sLrae fund within the
water and sewer group of accounts of the City. Such appropriation
shall only be made to the extent that it does not cause the
balance in any debt service fund to be less than the debt service
payable on the bonds payable therefrom in the next succeeding
twelve month period.
ADOPTED by the City Council of the City of Eden Prairie this
5th day of June, 1990.
Gary . Pei rs-oh, Mayor
ATTEST:
John Frane, City Clerk