BY COUNCILOR STEWART:
The city council finds:
(a) There is available fund balance in the tourism tax fund of the city of Duluth; and
(b) The city desires to assist the Lake Superior Center authority, d/b/a Great Lakes Aquarium, a government agency, in stabilizing its finances.
NOW, THEREFORE, BE IT RESOLVED, that $100,000 in additional funds be allocated to the Lake Superior Center authority, d/b/a Great Lakes Aquarium, and transferred to it before July 1, 2007; payment from undesignated fund balance in the Tourism Tax Fund 258.
BE IT FURTHER RESOLVED, that interest owed on sewer, gas, water and storm water utility service bills for service to the Great Lakes Aquarium for payments due from May 1, 2006, until such time as the city is no longer responsible for operating costs of the aquarium are forgiven and need not be paid.
BE IT FURTHER RESOLVED, that the accrued interest on the operating loan from the city to Great Lakes Aquarium in original principal amount of $150,000, beginning October 1, 2005, (approximately $12,808) is forgiven and need not be paid, and that hereafter no interest will be due on said loan, and it will forever be an interest-free loan.
STATEMENT OF PURPOSE: This resolution authorizes the transfer of $100,000 from the unreserved, undesignated fund balance of the tourism tax fund to the Great Lakes Aquarium for a total allocation of $300,000 for operations of the aquarium in 2007. This is the amount the Lake Superior Center board of directors requested as a minimum level of funding for 2006-2009 in their February 2005 report presented to the council. It also frees the aquarium of any obligation for interest payment on its utility charges or outstanding loan.