CCR2004052COMMON COUNCIL. CITY OF MUSKEGO
RESOLUTION #052.2004
A RESOLUTION TO AUTHORIZE RETIREMENT OF ADVANCE FROM
THE SEWER UTILITY TO THE CITY OF MUSKEGO
THE COMMON COUNCil OF THE CITY OF MUSKEGO, W AUKESHA COUNTY,
WISCONSIN, DOES RESOLVE AS FOllOWS:
WHEREAS, In 1998, the Common Council adopted Resolution #202-98 entitled
"A Resolution Authorizing the Temporary Advance of Funds from the Sewer Utility
to the Debt Service Fund of the City of Muskego"; and
WHEREAS, In 2001, the Common Council adopted Resolution #187-2001 entitled
"A Resolution to Amend Debt Service Repayment Schedule to the Sewer Utility of
the City of Muskego" in order to spread the repayment from the Debt Service Fund
to the Sewer Utility from a 5 year payment schedule to a 15-year schedule at 5%
interest; and
WHEREAS, In 2004, the Common Council adopted Resolution #13-2004 entitled
"A Resolution to Amend Debt Service Repayment Schedule to the Sewer Utility of
the City of Muskego" in order to lower the interest rate from 5% to 2% for the
same scheduled payment years; and
WHEREAS, While in the process of preparing the 2003 financial statements, in
accordance with GASB #34, it was determined that this liability should be reported
as a long-term governmental fund liability rather than a liability of the General
long-term Obligations account group; and
WHEREAS, To accomplish the fund liability reporting, a reduction in the
governmental fund balances of the General and Debt Service Fund is required,
and
WHEREAS, The City does have adequate cash reserves to finance the
repayment of this Advance and therefore save $283,000 in interest costs over the
present term of the Advance, and
WHEREAS, It is the recommendation of the City's outside consulting firms and
staff that City should transfer funds to the Sewer Utility to retire this Advance and
that the transfer should be effective as of December 31, 2003; and
WHEREAS, The Finance Committee has reviewed the history of the transactions
involving this issue and recommends approval of the prepayment of this advance.
Resolution #052-2004 Page 2 .
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of
Muskego, upon the recommendation of the Finance Committee, does hereby
approve that the Advance from the Sewer Utility be prepaid effective 12/31/03.
DATED THIS 23rd DAY OF MARCH, 2004.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Rick Petfalski
Ald. Nancy Salentine
Ald. Eric Schroeder
This is to certify that this is a true and accurate copy of Resolution #052-2004
which was adopted by the Common Council of the City of Muskego.
CU>J4-.-/
3/2004dg