HomeMy WebLinkAbout5403RESOLUTION NO. 5403
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 FIVE-
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 2019 —
2024 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 capital project expenses of the Water Fund; and
WHEREAS, if a loan is made from the Sewer Fund or the Storm Drainage
Fund to the Water Fund, the loan will be repaid at the current rate of investment
return of the Washington State Local Government Investment Pool on the
outstanding balance during the term of the loan; and
WHEREAS, revenue bond issuances are planned for during the 2019 —
2024 period for the purpose of repaying the interfund loan balances.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, RESOLVES as follows:
Resolution No. 5403
January 29, 2019
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Section 1. The Mayor or Mayor's designee is authorized to transfer
funds from the Sewer Fund and/or the Storm Drainage Fund to the Water Fund
when there are insufficient funds available to cover authorized capital expenses
in an amount not to exceed FIVE MILLION AND NO/100 DOLLARS
($5,000,000.00). Any loan will be repaid with an interest rate commensurate with
the rate of investment return of the Washington State Local Government
Investment Pool in effect on the date of the transfer. This authority is effective
from February 1, 2019 through December 31, 2024.
Section 2. The Mayor is authorized to implement those administrative
procedures necessary to carry out the directives of this legislation.
Section 3. This Resolution will take effect and be in full force on
passage and signatures.
Dated and Signed this\c;`` day of 12019.
CITY OF AUBURN
ATTEST:
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Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
Steven L. Gross, Ci Attorney
Resclution No. 5403
Jam -7-29,2019
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