HomeMy WebLinkAbout5249 RESOWTION NO. 5 2 4 9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE TRANSFER
OF FUNDS FOR THE PURPOSE OF MAKING A LOAN OR
LOANS FROM THE SEWER FUND (FUND NO 431) AND/OR
THE STORM DRAINAGE FUND (FUND NO 432) TO THE
WATER FUND (FUND NO 430) FOR UP TO A THREE-YEAR
PERIOD OF TIME
WHEREAS, the issuance of revenue bonds is planned as a funding source for
carrying out certain Water Fund capital projects during the 2016 — 2018 period as
identified in the adopted Capital Facilities Plan; and
WHEREAS, interfund loans can serve as a short-term financing mechanism to
hedge bond arbitrage issues and spend down requirements; and
WHEREAS, the Sewer Fund and Storm Drainage Fund have sufficient funds
from which to transfer monies in an amount not to exceed FIVE MILLION AND NO/100
DOLLARS ($5,000,000.00) for the purpose of making loans to cover capifal project
expenses of the Water Fund; and
WHEREAS, in the event a loan is made from the Sewer Fund or the Storm
Drainage Fund to the Water Fund, as provided herein, the loan shall be repaid at the
current rate of investment return of the Washington State Local Government Investmerit
Pool on the outstanding balance during the term of the loan; and
WHEREAS, revenue bond issuances in an amount not to exceed FIVE MILLION
AND NO/100 DOLLARS ($5,000,000.00) annually are planned for 2017 and 2018 for
the purpose of repaying the interfund loan balances.
Resolution No. 5249
August 17, 2016
Page 1 of 2
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows:
Section 1. Authorization is hereby given during the time period September 1,
2016 to December 31, 2018 for the transfer of funds to the Water Fund when there are
insufficient funds available to cover authorized capital expenses in an amount not tb
exceed FIVE MILLION AND NO/100 DOLLARS ($5,000,000.00) from the Sewer Fund
and/or the Storm Drainage Fund for the purpose of making a loan with an interest rate
commensurate with the current rate of investment retum of the Washington State Local
Government Investment Pool.
Section 2. The Mayor is hereby authorized to implement such administrative
procedures as may be necessary to carry out the directives of this legislation.
Section 3. This Resolution shall take effect and be in full force upon passage
and signatures hereon.
Dated and Signed this�day of ���^-�^�-� , 2016.
CITY OF AUBURN
NANCY BA S, MAYOR
ATTEST
��-%��✓�,�o���
Darnelle E. Daskam, City Clerk
APP VED O FO
ni B. e 'ty ney
Resolution No. 5249
August17, 2016
Page 2 of 2