Title
Second Reading on Ordinance 19-021, an Ordinance Authorizing Supplemental Appropriation #5 to the 2019 Budget.
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Summary:
This ordinance will amend the 2019 Budget for the following change:
1) To update 2019’s Budget to account for the promissory note proceeds (revenue) and payment (expense) related to SDSU’s Performing Arts Center Expansion
Background:
Resolution 15-125 approved the $6 million asset allocation from the Public Improvement Fund for the expansion of and the equipping and furnishing of the Performing Arts Center facility at South Dakota State University.
The City planned to finance the $6 million through an interest free promissory note with a current 5-year maturity.
In 2017, the City of Brookings paid the first installment of $5.5 million to SDSU using promissory note funds. This transaction is reflected in the 75% Sales Use and Tax Fund’s budget for 2017.
Final payment of $0.5 million is due this year. The City has already received the note proceeds to fund this last installment. However, the transaction was not budgeted in 2019’s budget
Fiscal Impact:
The proposed amendment has no impact in 2019’s budget as the $0.5 million note proceeds net the $0.5 million payment to SDSU. The City has budgeted for the promissory note payments in its 10-year Capital Improvement Plan
Recommendation
Recommendation:
Staff recommends approval of the Ordinance as presented
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Attachments:
Memo
Ordinance
Resolution 15-125