§ 5.08.025. Authorization and standards for lending money to service areas for land and capital improvements.

Service areas may borrow money from the general fund only in accordance with the following terms and conditions unless otherwise approved by ordinance:

1.

Loans shall only be for the purpose of financing the acquisition of land or capital improvements;

2.

The terms of the loan shall be for no more than five years;

3.

The rate of interest shall be the prime rate in effect on the date of ordinance approval plus 2 percent;

4.

The total amount borrowed by a service area pursuant to this section may not exceed $150,000 at any time;

5.

Payments shall be paid in equal annual installments upon adoption of each year=s annual budget until the loan is paid in full; and

6.

All such loans must be approved by the assembly by ordinance, and the assembly may add such additional terms and conditions as it finds in the best interests of the borough. If the assembly determines that the loan will require an increase in the service area mill levy for repayment purposes, the loan must first be approved by the voters of the service area at a regular or special election.

(Ord. No. 2005-04(S), § 1, 4-5-05)