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HomeMy WebLinkAbout07945ORDINANCE NO. 7945 AN ORDINANCE AMENDING SECTION 2 OF ORDINANCE NO. 7523 APPROPRIATING $25,000 OF THE PROCEEDS FROM THE SALE OF HARP LOTS AS A RESERVE FUND FOR THE HARP AUTHORITY BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate text deleted, underscoring indicates text added) SECTION 1. Section 2 of Ordinance No. 7523 is hereby amended to read as follows: The HARP Authority shall not budget the use of these funds for any expenditure and prior to December 31, [2008] 2009 shall return the $25,000 to the City for redeposit in the Lot Sales Fund. SECTION 2. This Ordinance shall become effective immediately upon final approval and passage. BY: Judy Weaver Councilperson PRt A :s r) a { C E INTRODUCED: December 8, 2008 PASSED AND APPROVED: December 22, 2008 L.3 Background Paper for Proposed ORDINANCE AGENDA ITEM # 34 DATE: December 8, 2008 DEPARTMENT: OFFICE OF THE CITY MANAGER JERRY PACHECO, ACTING CITY MANAGER DOUG FITZGERALD, ASSISTANT CITY MANAGER TITLE AN ORDINANCE AMENDING SECTION 2 OF ORDINANCE NO. 7523 APPROPRIATING $25,000 OF THE PROCEEDS FROM THE SALE OF HARP LOTS AS A RESERVE FUND FOR THE HARP AUTHORITY ISSUE Should the HARP Authority be allowed to extend the due date of the $25,000 cash flow reserve owed to the City Lot Sales Fund until December 31, 2009? BACKGROUND Lot #1 on the HARP was sold, and per the Intergovernmental Agreement (IGA) creating the HARP Authority, these proceeds must be used for capital improvements or maintenance of the City's HARP facility. The HARP Authority requested (Ordinance 7272) that City Council allow it to use $25,000 of these proceeds as a cash flow reserve for its operating fund and to be used temporary cash flow needs only. The original agreement required the HARP Authority to return the entire amount of $25,000 to the City prior to December 31, 2006 for redeposit in the Lot Sales Fund. In the year 2006, the HARP Authority contacted the City Administration and requested to extend this due date to December 31, 2008. Again, HARP Authority has requested an extension from the current due date of December 31, 2008 to December 31, 2009. RECOMMENDATION Approval of the Ordinance. FINANCIAL IMPACT These funds will still not be available to earn interest in the Lot Sales Fund for another year. They will remain with the HARP Authority.