NOTICE OF PUBLIC HEARING: 
TO APPROVE AN INTERFUND LOAN FROM THE PERPETUAL CARE FUND

American Fork City, Utah (the “City”) is in need of expanding cemetery services.  For a number of years the City has had a moratorium on burial lots due to the inability to meet the projected demand.  In the FY2014-15 City budget the City Council provided general direction for the City to pursue the expansion of cemetery facilities on an existing park using a loan from the Cemetery Perpetual Care Fund (the “Cemetery Expansion Project”).

The Cemetery Expansion Project is currently estimated to cost approximately $530,000 - $650,000.  The City wishes to use the Cemetery Perpetual Care fund to finance the Cemetery Expansion Project.  It has been determined that the Perpetual Care Fund can lend moneys to the capital projects fund  in order to finance the acquisition, construction and improvement of the Cemetery Expansion Project.  Utah State law dictates the manner in which said interfund loan can be structured and used.  

The following provides a summary of the proposed terms and conditions of the interfund loan.

 		Loan Amount:	$530,000.00
 		Term/Maturity of Loan:	10 years from date of issuing the loan
 		Interest Rate:	2.35% (roughly equivalent to the 10 year US Treasury Note)
 		Fund Lending the Money:	Cemetery Perpetual Care Fund (American Fork City)
 		Fund Borrowing (receiving) the Money:	General Fund/Capital Projects Fund (American Fork City)
 		Purpose of Loan:	City will use the loan proceeds to construct the Cemetery Expansion Project, as described above.
 		City’s Repayment Approach:
*City may use other available resources to retire the loan.  This is only an illustration of the City’s current intent to repay the loan.	The City will begin to sell burial lots at the City Cemetery.  The amount per burial lot will be $1,200 per lot.  The City intends on using the $1,200 in accordance with the following outline:

?	$200………..Perpetual Care Fund
?	$250………..Loan Repayment
?	$750………..O&M, capital repair & reserves
?	$1,200……...Total 
 		Applicable State Code for Interfund Loans:	UCA 10-6-132 (Uniform Fiscal Procedures Act)

The City plans to hold a public hearing on the proposed interfund loan and will consider the approval of the interfund loan by Resolution.  The City gives notice that the public hearing will be held on November 11, 2014 at 7:15 p.m., or as soon thereafter as feasible, at the American Fork City Hall (31 North Church St, American Fork, UT 84003).

At the public hearing, the Agency will hear public comment on and objections, if any, to the proposed interfund loan. All concerned citizens are invited to attend the hearing on the proposed interfund loan scheduled for November 11, 2014, at the City Hall at 7:15 p.m. and/or submit comments to the Agency before November 11, 2014, the date of the hearing.

In compliance with the Americans with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during the meeting should notify Richard Colborn, (801) 763-3000, at least 24 hours before the meeting. 

Dated this 30 day of October 2014


Richard M. Colborn
City Recorder