Title
Amending the City’s 2017 Operating Budget to reflect an advance in the amount of $1,081,581 from the internal borrowing fund to finance the Office of Technology and Communications Phone Replacement project.
Body
WHEREAS, the 2016 Budget included funding for replacement of the City’s phone infrastructure through capital lease financing; and
WHEREAS, the Phone Replacement project was not completed in 2016 and no capital lease was issued; and
WHEREAS, in order to complete the Phone Replacement project, the financing approved in the 2016 Budget will need to be completed in 2017; and
WHEREAS, the spending and financing budget needs to be amended to allow for the Phone Replacement project to be completed in accordance with the original budget plan for the project; and
WHEREAS, there are available funds in Fund 700, (the "City Internal Loan Fund"),to make an advance in 2017 to this project in lieu of capital lease financing; and
WHEREAS, the advance, until repaid, will bear interest at the monthly City treasury portfolio investment rate, ("Pool Rate"), which is variable and reset monthly by the City and will be paid as part of the project cost; and
WHEREAS, the advance will be secured and repaid by departmental service charges for phone hardware; and
WHEREAS, the Internal Loan has been documented in the Record of Internal Loan, which is attached in substantially final form, and will be repaid within five years of the initial City advance as shown in the illustrative example of the Exhibit; and
WHEREAS, the Mayor, pursuant to Section 10.07.1 of the Charter of the City of Saint Paul, does certify that there are available for appropriation, funds of $1,081,581 in excess of those estimated in the 2017 Budget; now
THEREFORE BE IT RESOLVED, by the Saint Paul City Council, upon recommendation of the Mayor, that the 2017 Operating Budget, as heretofore adopted by the Council, is hereby further amended in the particulars as specified in the attached financial analysis; and
THEREFORE BE IT FURTHER RESOLVED, that the Council of the City of Saint Paul hereby approves the attached Record of Internal Loan, and authorizes the Director, Office of Financial Services and the Director, Office of Technology and Communications to execute the agreement.
Financial Analysis
See Attachments