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Home My WebLink AboutCOW 2003-06-23 Item 4A - Ordinance - Amend 2003 BudgetCAS Number: 03-085 1 Agenda Item Title: Budget Amendment related to Bond Issue for 2003 Original Sponsor: Council Admin. X Timeline: Approve at COW and Special Meeting on June 23, 2003 Sponsor's Summary: Due to changes in the Proposed 2003 Bond Issue regarding taxable vs non taxable bonds, we are proposing switching some bond proceeds to the Street Fund. Recommendations: Sponsor: Approve as submitted. Committee: Finance Safety June 16, 2003 Move for approval Administration: Same as sponsor Cost Impact (if known): All costs are balanced against bond proceeds Fund Source (ifknown): See attached Ordinance. Meeting Date 6/23/03 COUNCIL AGENDA SYNOPSIS Initials 1 MeetinzDate Prepared by !Mayor's review I Cgtincil review 1 1 6/23/03 ARD 1 °r Action Meeting Date 1 Attachments 6/23/03 staff Report Proposed Ordinance Finance Safety Committee minutes from June 16, 2003 I Sly 1 I I 1 i I I Original Agenda Date: 6/23/03 ITEM No. To: Finance Safety Committee In From: Alan R Doerschel Date: June 12, 2003 Subject: 2003 Proposed Budget Amendment Ordinances and Proposed Bond Issue Ordinance. The attached proposed ordinances are the result of the combined borrowing effort for 2003. See the Bond proceeds distribution. The Budget amendment ordinance will allow the bonds to be "Bank Qualified" and result in lower 20 -year bond interest costs. Also, this ordinance will assist the cash flow requirements and more accurately have the revised budget reflect final Bond amounts. The Budget Ordinance should be moved forward to the June 23, 2003 Special Meeting for adoption The final date for actuals issuance, in late July. The missing schedules in the proposed Bond Ordinances will then be filled in upon closing. City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA., WASHINGTON, AMENDING THE 2003 BUDGET ADOPTED BY ORDINANCE NO. 2008, PROVIDING FOR BUDGET TRANSFERS BETWEEN THE ARTERIAL STREET FUND AND THE FACILITIES FUND; INCREASING THE FOSTER GOLF COURSE BOND PROCEEDS AND CLUBHOUSE BUDGET; PROVIDING FOR BOND PROCEEDS FOR ARTERIAL STREET IMPROVEMENTS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City will utilize bond proceeds for certain arterial street projects; and WHEREAS, additional funds are required for the Tukwila Village project other than bond proceeds, which would have been taxable bonds; and WHEREAS, the City desires to increase the funding available for the Foster Clubhouse project; and WHEREAS, a bond issue in 2003 will provide for the planned expenditures as detailed in Resolution No. 1514, dated February 18, 2003 and Resolution 1523, dated May 27, 2003; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The following program categories in the 2003 budget, as adopted by Ordinance No. 2008, are hereby amended to read as follows: ARTERIAL STREET FUND —104 Revenues: G.O. Bond Proceeds 391 100 $3.280.000 Expenditures: Debt Issuance Cost 02 592 190 84 130,000 Transfers -Out Facilities 02 597 192 00 31. 50A00 Total Expenditures (Net) 3,280.000 FACILITIES FUND 302 Revenues: G.O. Bond Proceeds 391 100 <2,450,000> Proceeds Sale of Fixed Assets 395 100 <700,000> Transfers -In Arterial Street 397 192 3.150,000 Total Revenues (Net) -0- FOSTER GOLF COURSE FUND 411 Revenues: G.O. Bond Proceeds 382 100 77a.aao Expenditures: Debt Issuance Cost 592 760 84 120, 000 Clubhouse Replacement 594 760 60 6 0 00 Total Expenditures X770.000 Section 2. The planned Arterial Street expenditures include: a. Capital Overlay projects. b. South 144th (42nd Avenue South to Military Road). c. Tukwila International Boulevard project. Budget Amendment 2003 6/19/03 1 Section 3. Ordinance No. 2008 is hereby amended by revising the summary of totals of estimated revenues and appropriations and the aggregate total to reflect the foregoing increases in revenues and appropriations as set forth in Section 1 of this ordinance. Section 4. The Finance Director is hereby authorized and instructed to effectuate the necessary changes in the 2003 budget, and to make all necessary and appropriate line item entries and adjustments in order to reflect the increases to revenues and appropriations as set forth in this ordinance. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect five (5) days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2003. ATTEST /AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Budget Amendment 2003 6/19/03 Steven M. Mullet, Mayor Filed with the City Clerk: Passed by the City Council: Published. Effective Date: Ordinance Number: 2 Finance and Safety Committee June 16, 2003 Present: Joe Duffle, Chair; Jim Haggerton, Richard Simpson Alan Doerschel, Rhonda Berry, Keith Haines, Lucy Lauterbach 1. 2003 Proopsed Budget Amendment Alan explained that some budget changes are needed to ensure the City gets the best bond rates possible. He has explored this with bond counsel, and is confident he is doing the right thing. Basically, he is moving money from the 103 Street fund into the facilities fund, and then putting bond funds back into streets. There will be both taxable and non taxable bonds, the latter being cheaper to buy. About $2.2 million of the $12 million bond will be taxable, and Alan will work to pay that off first. Hopefully it will take 5 -7 years to pay that off. The golf course had already gotten some short term bond funding, and the bond will pay that short term loan off and subsume the costs of that loan in the $12 m. $770,000 will go into the golf course restaurant for equipment, which the restaurant will use amortize, and then give back to the city in 10 years. The restaurant will help pay off the golf part of the bonds in the future. The Facilities fund is losing bond funds and gaining street funds, so it remains neutral. The bonds will be A -1, due to the City's passing a utility tax. The committee talked about the City's bond capacity, and agreed with Alan it's not the capacity as much as our ability to pay the interest each year that counts. The committee also asked about Tukwila Village. Alan said there is not much going on right now, as Sabey is focused on his Immigration Building. The City still needs to buy two pieces for Phase I, which we are trying to do now. Sabey will eventually get a building plan, which the City will need to agree to. Part of his plan will be to try to line up tenants, which is tough in this economy. Recommend budget amendment to Council for approval. 2. Proposed Bond Issue Ordinance Alan had a draft of the bond ordinance in the packet. Numbers won't be put in it until next month when the bond is bought. Information. 3. Police Pursuit of Stolen Cars Keith passed out a copy of the departmental policy on pursuit. He said it includes a bright line between pursuit and no pursuit. Police are directed to pursue only felonies against people, and are not to pursue on property crimes such as stolen cars. Too many innocent people have been injured for property crimes. The policy has been in place since 1996. He said police only pursue people who are a danger to the community. Other communities (specifically Kent and Auburn) do allow pursuit, and some young officers are frustrated with Tukwila's policy. However, other communities also have a no pursuit policy. The police have many fewer wrecks now than they did before the policy, which is very clear. Information. 4. Victoria Arms Richard reported on the meeting city reps had with the owner of the Victoria Arms Motel. Richard thought the owner was sincere in promising to clean up the property. He will send the manager to crime prevention meetings, and will do some property improvements. Information. �T Committee chair approval 7