$30 million in interfund loans to be considered Oct. 3 by Queen Creek Town Council

Mohammed Youssel, transportation engineer manager for Queen Creek, gives a presentation at a recent Queen Creek Town Council meeting. (Photo by Richard H. Dyer, Independent Newsmedia)

Interfund loans are to be discussed at the Oct. 3 Queen Creek Town Council meeting, including the early repayment of one for $13 million, refinancing another for $11 million and establishing a new one for $6 million.

The meeting begins at 5:30 p.m. in the Community Chambers, 20727 E. Civic Parkway. Public hearings will not be held prior to 7 p.m.

Interfund loans are a less expensive way to finance infrastructure and are appropriate in certain situations, Scott McCarty, finance director, said in a memo to the council.

To refinance one loan, town staff members are proposing moving the General Fund portion of the loan related to refinancing developer agreements to the Wastewater Operating Fund.

“During the course of operations, individual funds within the town’s pooled cash accounts may borrow money from the other funds within the pool on a short-term basis,” according to a section on interfund receivables/payables in a 2013 document at queencreek.org/home/showdocument?id=15793. “Individual funds also borrow resources from other funds on a long-term basis. These loans are formally approved by the Town Council and the terms require repayment over several fiscal years,” it states.

As of June 30, 2017, the Queen Creek Town Council had approved interfund loans to save money by advancing repayments to developers for transportation infrastructure, address short-term cash flow needs in advance of a bond issue related to transportation and public safety projects, and purchase land in the Town Center for future resale, Mr. McCarty said in the memo.

The interfund loans before the council Oct. 3 will be voted on with Resolution 1231-18, authorizing the early repayment in the amount of $13,910,947, the refinancing in the amount of $11,363,591 and establishing a new interfund loan in the amount of $6,627,668, according to the meeting’s agenda.

The agenda item also is a request to approve fiscal year 2017-18 year-end budget reallocations of $2,843,094, fiscal year 2018-19 carry-forward budget reallocations of $53,017,970 and fiscal year 2018-19 budget adjustments related to interfund loan activity.

The council is also slated to vote on Resolution 1230-18, authorizing transfers between funds related to activity from prior years, according to the agenda.

Executive sessions

The council is slated to meet in a closed-door executive session on the following:

  • Discussion and consultation with the town’s attorney for legal advice and with the town’s attorney and representatives to consider the town’s position and instruct its representatives regarding an intergovernmental agreement with Maricopa County for the landfill park.
  • Discussion and consultation with the town’s attorney for legal advice and with the town’s attorney and representatives to consider the town’s position and instruct its representatives regarding a possible intergovernmental agreement with the city of Mesa for Ellsworth Road, Signal Butte Road and Meridian Road.
  • Discussion and consultation with the town’s attorney for legal advice and with the town’s representatives to consider the town’s position and instruct its representatives regarding a development agreement for the town-owned property at the southwest corner of Ellsworth and Rittenhouse roads.
  • Discussion and consultation with the town’s attorney and with the town’s representatives regarding annexations and providing utility services.
  • Discussion and consultation with the town’s attorney for legal advice and with the town’s representatives regarding the Arizona Corporation Commission actions related to Johnson Utilities.

Consent agenda

In a consent agenda, often approved with one vote, the council is slated to consider:

  • Expenditures over $25,000, including $42,500 to Sentinel Technologies Inc. for fiber network switch solution.
  • A construction services contract with Scholz Contracting LLC in an amount not to exceed $563,239 for the construction of a water line along Gary Road, Riggs Road to Empire Boulevard.
  • Amendment No. 3 to the agreement for law enforcement services between the town of Queen Creek and Maricopa County on behalf of the sheriff’s office to correct an underpayment in fixed benefits for fiscal year 2017-18 in the amount of $32,205.
  • The first amendment to the recovered reclaimed water agreement between the town and Fulton Homes Corp. to facilitate development of approximately 500 acres at the northeast corner of Queen Creek Road and Signal Butte Road.
  • A contract with C&S Sweeping Services Inc. in an amount not to exceed $150,000 for annual street-sweeping services.
  • A three-year software license agreement with Cartegraph Systems LLC in an amount not to exceed $140,000 for Cartegraph Work Order System license subscription fees.
  • Mansel Carter Oasis Park ramada rental rates and policies.
  • A special-event liquor license for the Arizona Thoroughbred Breeders sale Nov. 15 at Horseshoe Park and Equestrian Centre.
  • Resolution 1233-18 amending the town council policies and procedures section XVI committees and resolution 1234-18 amending the standard form bylaws for designated town committees and task forces.
  • Resolution 1235-18 repealing resolution 1133-16 and replacing it with a revised annexation policy.

The Queen Creek Independent is mailed each month to 24,000 homes.

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