RESOLUTON NO. 167 (SERIES OF 2017) A RESOLUTION APPROVING THE INTERFUND ADVANCE BETWEEN THE WHEELER OPERA HOUSE FUND AND THE WATER UTILTY FUND FOR PURPOSES OF ACQUIRING LAND FOR FUTURE MUNICIPAL WATER STORAGE. WHEREAS, there has been a proposal brought before City Council to acquire parcels R003161 and R015286 located within Woody Creek; and WHEREAS, the City Council has evaluated these parcels to be the best existing alternative solution relative to current water storage rights held in the upper Castle and Maroon Creek valleys; and WHEREAS, Government Accounting and Auditing Financial Regulations do not consider an asset being transferred between City funds as an investment nor the repayment liability as debt, because they are purely internal to the governing entity; and WHEREAS, pursuant to this criterion, interfund loans remain as allowable transactions relative to the City’s financial and investment policies; and WHEREAS, the City can utilize internal borrowing between the Wheeler Opera House Fund and Water Utility Fund to distribute the financial burden of this acquisition over time and thereby avoid any direct impact to utility rates as a result, NOW THEREFORE, be it resolved by City Council, that the City of Aspen hereby approves an internal advance of $2,515,000 between the Wheeler Opera House Fund and the Water Utility Fund, with the following conditions: • The principal amount will be paid back in equal installments over a tenyear period commencing 2018, • The interest rate applied to the internal advance will be set equal to the 10year Treasury rate at the time of the initial advance, and • There shall be no pre-payment penalty in the event the Water Utility Fund repays the remaining outstanding principal prior to the full 10-year period. __________________________ Steven Skadron, Mayor I, Linda Manning, duly appointed and acting City Clerk of the City of Aspen, Colorado, do hereby certify that the foregoing is a true and correct copy of the Resolution adopted by the City Council at its meeting held on December 11, 2017. _______________________ Linda Manning, City Clerk