R2013-55 APPROVING CITY TO ENTER INTO A TEMPORARY CASH ADVANCE AGREEMENT WITH THE LIBRARY BOARD

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TEMPORARY CASH ADVANCE AGREEMENT This agreement, to be defined as a temporary cash advance loan agreement, is made between the City of Decatur, Illinois, a municipal corporation (City) and the Board of Library Trustees of the City of Decatur, a department of the City(Library). WHEREAS, the Library as of April 30, 2013, has a deficit of approximately $142,000; and WHEREAS, the City has advanced $150,000 to the Library Fund as of April 30, 2013, for the purpose of securing the Library Fund in a positive cash position as of the close of the fiscal year ending April 30, 2013, and WHEREAS, the Library's estimated monthly payroll and operating expenses are approximately$300,000 per month; and WHEREAS, the Library will receive a property tax distribution from the 2012 tax levy for the assessed value tax year 2012 with tax payable and collected in 2013 and distributed to the tax levy recipient units by the Macon County Treasury in 2013, and where such tax distribution is estimated to be approximately $1,470,000 in June 2013 and $1,470,000 in September 2013, and where such estimated distribution is dependent upon monies collected by the Macon County Treasury and monies determined for distribution by the Macon County Treasurer. NOW, THEREFORE, for and in consideration of the promises and covenants made herein and for their mutual benefit and the benefit of the public, the City and Library agree as follows: A. To provide for the Library's May and June payroll and operating expenses and for coverage of the Library's cash deficit as of April 30, 2013, the City will advance to the Library monies sufficient to cover the Library payroll and operating expenses for the months of May and June, 2013 and the cash deficit as of April 30, 2013 in such amount estimated to be approximately$750,000, with no interest. B. Upon Library receipt of the property tax distribution, whenever such distribution shall occur, the Library agrees to pay back all monies advanced to the Library by the City to the date of the property tax distribution receipt without reference to the dollar amount of the property tax distribution received, so as to liquidate any amount of cash loan advance to the Library by the City, which for purpose of this agreement is estimated to be approximately$750,000. C. The Library will prepare a financial plan to extinguish the Library's operating deficit and create an operating expenditure budget that will bring into balance the Library's income and expenditure disbursements. The City will participate in the development of such financial plan development with participation to be agreed by the City and the Library. Such financial plan will be completed by September 1, 2013. D. The temporary loan conditions terminate upon Library settlement of the cash loan advances with repayment to the City per the conditions in paragraph B above. 134