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HomeMy WebLinkAbout07272ORDINANCE NO. 7272 AN ORDINANCE APPROPRIATING $25,000 OF THE PROCEEDS FROM THE SALE OF HARP LOTS AS A RESERVE FUND FOR THE HARP AUTHORITY. Whereas, a pad site on the HARP has been sold, and Whereas, these funds are restricted to use in the improvement and maintenance of the HARP facility, and Whereas, the HARP Authority desires to have a cash flow reserve in its operating fund to sustain it through peaks and valleys in its cash receipts, now therefore BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Funds in the amount of $25,000 shall be budgeted and appropriated from the Sale of Lots account for the purpose of paying this amount to the HARP Authority to sustain a cash flow reserve in the HARP Authority operating fund. SECTION 2. The HARP Authority shall not budget the use of these funds for any expenditure and prior to December 31, 2006 shall return the $25,000 to the City for redeposit in the lot sales fund. INTRODUCED: laniaary 24, 2005 BY: CM J NC E O APPROVED . �j , PRESIDE ' PIT OF CIT COUNCIL ATTESTED BY: Y CLERK PASSED AND APPROV February 14,'a '2005 Background Paper for Proposed ORDINANCE 1 227x. AGENDA ITEM # A - O DATE: January 24, 2005 DEPARTMENT: FINANCE DEPARTMENT, ROBERT F. HAIN CPA TITLE AN ORDINANCE APPROPRIATING $25,000 OF THE PROCEEDS FROM THE SALE OF HARP LOTS AS A RESERVE FUND FOR THE HARP AUTHORITY. ISSUE Should lot sale funds be used to fund an operating reserve for the HARP Authority. RECOMMENDATION Approval of ordinance BACKGROUND Lot #1 on the HARP was recently sold. Per the Intergovernmental Agreement creating the HARP Authority, these proceeds must be used for capital improvements or maintenance of the City's HARP facility. The HARP Authority is requesting that City Council allow it to use $25,000 of these proceeds as a cash flow reserve for its operating fund. These funds are for temporary cash flow needs only. The ordinance does not allow the HARP Authority to budget for the use of any of these funds. Additionally, the HARP Authority is required to return the Entire $25,000 in time for the City to redeposit these funds prior to year -end closing on December 31, 2006. FINANCIAL IMPACT These funds will not be available to earn interest in the Lot Sales Fund while they are in the hands of the HARP Authority.