RESOLUTION NO. 2004-____

A RESOLUTION AUTHORIZING INTERFUND LOANS TO THE COMMUNITY DEVELOPMENT BLOCK GRANT AND TELECOMMUNICATIONS FUNDS

Recitals:

A.		ORS 294.460 requires an ordinance or resolution to permit a loan from one fund to another; and
B.		A loan cannot be made from a debt service fund to any other fund, and
C.		If the loan will not be repaid by the end of the fiscal year, it must be a budgeted requirement in the following year's budget.

THE CITY OF ASHLAND RESOLVES AS FOLLOWS:

SECTION 1. The Finance Director is hereby authorized to borrow up to $3,000,000 from the Water Fund, up to $4,500,000 from the Wastewater Fund and up to $1,000,000 from the Electric Fund for the Telecommunications Fund as interim financing for capital project and operating costs to date in anticipation of selling bonds to refinance said costs.

SECTION 2. The Finance Director is hereby authorized to borrow up to $215,000 from the General Fund for the Community Development Block Grant Fund for repayment to the US Department of Housing and Urban Development for the Grove property in anticipation of selling other City assets to pay this debt.

SECTION 3. The loans will be made prior to July 31, 2004, or as needed throughout the fiscal year and will be repaid with accrued interest prior to June 30, 2005.

SECTION 4. Interest will be charged at the Local Government Investment Pool interest rate at the date of the loan or the date of repayment, whichever is higher. Interest shall be paid quarterly.

SECTION 5. This resolution takes effect upon signing by the Mayor.

This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly

PASSED and ADOPTED this ______day of ______, 2004:
Barbara Christensen, City Recorder

SIGNED and APPROVED this ______day of ______, 2004:
Alan W. DeBoer, Mayor

Reviewed as to form:
Michael W. Franell, City Attorney