Resolution No. 2021-109 Approving Interfund Loan
Resolution No. 2021-109
Approving an Interfund Loan for the Remaining Ooutstanding Balance ($1,120,000) of
Series 2010A General Obligation Utility Revenue Bonds
Whereas, the Fridley City Council (Council) deems it desirable and in the best interests of the City
to call the 2022 through 2026 maturities of the 2010A Bond (Bond), inclusive, totaling $1,120,000
in principal amount, on December 15, 2021, in accordance with the Resolution No. 2010-40; and
Whereas. the City shall issue an Interfund Loan (Loan) from the Community Investment Fund to
the Water, Sanitary Sewer and Storm Water Utility Funds – No. 601-603 (Utility Funds) to pay off
the remaining balance of $1,120,000 attached as Exhibit A; and
Whereas, the remaining balance on the original Bond was calculated at 3.5% interest and the
interest on the internal fund will be calculated at 2% which will result in an overall interest savings
of $30,125; and
Whereas, the Utility Fund shall repay the Community Investment Fund from revenues provided
by utility rates and charges as determined by the Council, consistent with Sections 7.02 and 11.02
of the Fridley City Charter (Charter); and
Whereas, the Council hereby authorizes and approves an Interfund Loan from the Community
Investment Fund to the Utility Funds (Water, Sanitary Sewer and Storm Sewer) per the terms
stipulated below; and
Whereas, the Utility Funds shall repay the Loan from the Community Investment Fund as outlined
below.
Principal: $1,120,000
Interest Rate: 2.0%
Loan Term: 5 Years
Annual Payment Amount: Up to $245,000
First Payment Due: December 16, 2022
Final Payment Due: December 16, 2026
Whereas, the outstanding principal and all accrued interest payable under the Loan are pre–
payable in whole or in part at any time by the Utility Funds without premium or penalty. No partial
pre–payment shall affect the amount or timing of any other regular payment otherwise required
to be made under this Loan; and
Whereas, the City may amend the terms of the Loan as described above at any time by a
resolution of the Council, including a determination to forgive the outstanding principal amount
and accrued interest to the extent permissible under law and Section 7.10 of the Charter.
Resolution No. 2021-109 Page 2
Now, therefore be it resolved, that the City Council of the City of Fridley hereby authorizes an
interfund loan in the amount of $1,120,000 to occur between the Community Investment Fund
and Utility Funds beginning December, 16, 2021.
th
Passed and adopted by the City Council of the City of Fridley this 8 day of November,
2021.
_______________________________________
Scott J. Lund – Mayor
Attest:
Melissa M. Moore – City Clerk
Exhibit A
Debt Service Schedule
City of Fridley
December 16,2021
Interest rate at 2%
Fund 601,602,603
Utility RevenueWater FundSanitary Sewer FundStorm Water Fund
$1,120,000 601602603
Payment Dates
PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest
12/16/2022 205,000.00 22,400.00 140,000.00 15,100.00 40,000.00 4,200.00 25,000.00 3,100.00
12/16/2023 215,000.00 18,300.00 145,000.00 12,300.00 40,000.00 3,400.00 30,000.00 2,600.00
12/16/2024 225,000.00 14,000.00 150,000.00 9,400.00 40,000.00 2,600.00 35,000.00 2,000.00
12/16/2025 235,000.00 9,500.00 155,000.00 6,400.00 45,000.00 1,800.00 35,000.00 1,300.00
12/16/2026 240,000.00 4,100.00 165,000.00 2,800.00 45,000.00 800.00 30,000.00 500.00
Total 1,120,000.00 68,300.00 755,000.00 46,000.00 210,000.00 12,800.00 155,000.00 9,500.00