Title
AN ORDINANCE TO AMEND THE BUDGET OF THE CITY OF DULUTH FOR YEAR 2016 BY INCREASING THE BUDGET BY $700,000 FOR CALLING STREET IMPROVEMENT BONDS SERIES 2008C.
Body
CITY PROPOSAL:
The City of Duluth does ordain:
Section 1. That ordinance 10427 passed and approved December 14, 2015, is hereby amended by appropriating an additional $700,000 from the general fund’s fund balance as follows:
Department 700 - Transfers and Other Functions $700,000
Section 2. That this ordinance shall take effect immediately upon its passage.
Statement of Purpose
STATEMENT OF PURPOSE: This ordinance will increase the city’s general fund appropriation authority by $700,000. The budget amendment will be paid from additional fund balance generated from the $2 million budget surplus that was assigned for spending. Previously, $1.3 million of the assigned budget surplus was utilized for funding an energy plan and for additional street work.
This budget amendment will appropriate an additional $700,000 for calling street improvement bond series 2008C. These funds together with existing funds in the debt service fund will be used to call $1,240,000 of street improvement bonds maturing in the years 2018 through 2024 and will save $236,500 in interest costs.