S-1186 - 02/27/2007 - BUDGET - Ordinances Supporting Documents0 •4
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ITEM 10.11. 7 )
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AGENDA ITEM
Regular Board of Trustees of
February 27, 200
SUBJECT: Interfund Loan to the Sports Core Fund
FROM: Darrell Langlois Opw�
BUDGET SOURCE /BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move that the Village Board approve Ordinance 2007 -
BU -S -1186, an Ordinance Authorizing a Loan to the Sports Core Fund.
Backjlround/History:
The ordinance authorizing loans from the General Corporate Fund to the Sports Core Fund
expired on January 31, 2007. The prior ordinance authorized a consolidated loan of up to
$1,290,000 in order to fund capital and operating needs of the Sports Core dating from 1996-
2003. As indicated to the Board in my memorandum on January 10, 2007, for the third
consecutive year an interfund loan was not required in order to finance Sports Core operations.
That being said, only a minimum cash balance remained at the end of 2006 and none of the
principal on the $1,290,000 obligation was repaid during 2006. The 2006 budget did not project
repaying any of the principal in 2006.
At the present time the only action that is requested is to extend the term of the loan for an
additional one -year period. Over the last several years the Sports Core has made significant
strides in eliminating operating deficits that averaged $161,000 from 1996 -2003. If progress
continues toward profitability the Sports Core should be able to begin progress on retiring this
obligation. Per the 2007 -2011 Five -Year Financial Plan, repayment of this loan is projected to
begin in 2010.
Recommendation:
I recommend approval of the attached ordinance which extends the loan authorization to the
Sports Core Fund for an additional one -year term.
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