Title
A Resolution approving the payoff of a note payable and Memorandum of Understanding between the City of Foley and Riviera Utilities.
Summary
The City has a note payable with Riviera Utilities for parking lot lighting at the Event Center. This note has an 8.7% interest rate. The Finance Department is requesting to use excess funds from fiscal year 2019 to pay off the note payable which has a balance of $176,103.87 as of January 2020. This will require an increase to the FY 2020 budget of $126,598. The city will need to enter into a Memorandum of Understanding with Riviera, for the maintenance of these lights.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
___X_ Not budgeted, requesting transfer of $_9,237__ from Account #100-5041-7010 Interest Expense-Capital Lease to Account #100-5041-7000 Principal Expense-Capital Lease.
__X_ Not budgeted requiring increase to account #100-5041-7000 Principal Expense-Capital Lease in the amount of $126,598.
Capital - Departmental
____ Budgeted under account #______________ for $___________ and described in budget as __________________________________.
Additional amount needed, if any: Increase in budget of $_____________ OR, transfer of $___________ from Account #____________ to Account #_______________
____ Not Budgeted - account #____________ requires budget increase of $_____________.
Capital Project - **THE PRE-PROJECT CHECKLIST AND BUDGET CHECKLIST MUST BE ATTACHED TO THIS FILE**
In current year Capital Projects Plan:
_____ Yes, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________
Body
WHEREAS, The City has a note payable with Riviera Utilities for parking lot lights at the event center, and
WHEREAS, the finance department recommends paying off the note to save interest cost, and
WHEREAS, there is a need for a memorandum of understanding with Riviera Utilities for the maintenance of the parking lot lights.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves the payoff of the note with Riviera Utilities, which has a balance of $176,103.87 as of January 2020.
SECTION 2: Approves the budget transfer of $9,237 from 100-5041-7010 Interest Expense to 100-5041-7000 Principal Expense, and amends the accounts accordingly.
SECTION 3: Approves the budget increase of $126,598 to 100-5041-7000 Principal Expense, and amends the accounts accordingly.
SECTION 4: Approves entering into a memorandum of understanding with Riviera Utilities regarding the maintenance of the parking lot lights at the event center, and authorizes the Mayor to sign the MOU on behalf of the City.
SECTION 5: This Resolution shall become effective immediately upon its adoption as required by law.