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City of Missoula, Montana Item to be Referred to City Council Committee Committee: A & F Item: SID Revolving Fund Referral – Confirmation of City's Commitment to Maintain 5% of Outstanding SID debt in the Revolving Fund Date: June 4, 2010 Prepared by: Brentt Ramharter Initiated by: Brentt Ramharter Action Required: Approve the city's commitment to maintain at least 5% of outstanding SID debt in the revolving fund. Recommended Motion: I move the City Council approve Timeline: Referral to committee: June 4, 2010 Committee discussion: June 9, 2010. Deadline: Approve at June 14, 2010 council meeting Background and Alternatives Explored: The city's current SID revolving fund ordinance dates from 1930. This ordinance is not specific enough in requiring the city to maintain at least 5% in its revolving fund. This resolution confirms the city's commitment to maintain at least 5% in the revolving fund. Financial Implications: The city agrees to keep at least 5% in the revolving fund, whether we have to do a temporary loan from the General Fund or do fund the deficiency in the next budget cycle. This will be explained in committee how the revolving fund and debt service accounts are managed for SID's. The city's rating agency wants the city to update its revolving fund ordinance from 1930. This will be accomplished in the near future. Attachments: Resolution