The URL can be used to link to this page

Home My WebLink AboutCOW 2014-07-28 Item 4A - Resolution - Transfer of Funds to Facility Replacement Fund to Purchase Propertes in Urban Renewal AreaCOUNCIL AGENDA SYNOPSIS 11111221111111 S I \11, SI)( )INS( )I(: PEGGY MCCARTHY Co meg renew ''.0' ' 07/28/14 PMC the transfer Fund, and/or 4,... 08 04 14 PMC 'Moon Oldtnance A1/: I ?air Bid -lniard A N I )ai e I IT Pulthr [fearing Mt Oak _ Other Mig Date Reso/ition ./1111)ale 08/04/14 DCO i IR Z 1 ' i tzathe fin' ------ --- — IV7-1Z. l'oll4v PW ITEM INFORMATION ITEM No. 4.A. S I \11, SI)( )INS( )I(: PEGGY MCCARTHY I;!N\1. A( n,ND \ DA rk: 07/28/14 l I I NI ' It Resolution authorizing Fund, Contingency to 12 months the transfer Fund, and/or of funds for an interfund loan(s) from the General other funds to the Facility Replacement Fund for up C \ I I (;( )1t Y )1$-cm ■ron i I / Due' 07/28/14 S l'()NN )1( Counci/ ilia)or Alt;1),ek 'Moon Oldtnance A1/: I ?air Bid -lniard A N I )ai e I IT Pulthr [fearing Mt Oak _ Other Mig Date Reso/ition ./1111)ale 08/04/14 DCO i IR Z 1 ' i tzathe fin' ------ --- — IV7-1Z. l'oll4v PW Approve Resolution authorizing loan(s) from the General, Contingency, and/or other funds to the Facility Replacement Fund for up to 12 months. The loan(s) will be used to purchase various properties located in the Urban Renewal area. The property will most likely be purchased in August and long term bond issue or other financing will be arranged at a later date. Cow mtg. CA&P Cm(c _ Utilities Crow Arts Comm. D\TI'',: 07/22/14 I "&S Cinte I Transportation Croft Comm. Planning Comm. CHAIR: SEAL ] Parks COMNIVITIT, RECOMMENDATIONS: SroNN)R/ADNHN. (:( ) \INIII'l Finance I I Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE ExpiNt)Iii,Ri RI Qui 1 t AmoiJNi BuDG, 1,:p AppRopRin HON 1 1,Q(11101) : and Source: ( '0111111e/1LS. MTG. DATE RECORD OF COUNCIL ACTION 07/28/14 MTG. DATE ATTACHMENTS 07/28/14 Informational Memorandum dated 07/22/14 Resolution in Draft Form Minutes from the Finance and Safety Committee Meeting of 07/22/14 08/04/14 2 TO: of City of '--'''-''—_ Jim Haggerton, Mayor INFORMATIONAL U��U��U� ox�x ��n'�n�x��n n��n��~ n�n�~x�n��n�x��n��o�n Mayor Haggerton Finance & Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carisen, Deputy Finance Director DATE: July 22, 3014 SUBJECT: Resolution authorizing the transfer of funds for an interfund loan(s) from the General Fund, Contingency Fund, and/or other funds to the Facility Replacement Fund for up to 12 months ISSUE Approve Resolution authorizing the City to transfer funds from the General Fund, Contingency Fund, and/or other funds to the Facility Replacement Fund for up to 12 months. The purpose of the transfer is to cover costs for the purchase of properties in the City's Urban Renewal area until the City issues bonds. BACKGROUND There are several properties within the City's Urban Renewal area that have been identified as prime for redevelopment. In August of 2013, the federal government, along with the City and other local jurisdictions seized 3 of the properties the City had identified for purchase, The City has completed appraisals on the parcels the City is interested in purchasing. DISCUSSION The motels that the City is interested in purchasing will be available for purchase in the next few weeks. It will take several weeks to line up bond financing for the purchase of the motels. Prior to bond financing, the City would loan money from funds that currently have excess funds to the Facility Replacement Fund, where the expenditures will be recorded. Once bonds are sold, the loans would be repaid. RECOMMENDATION Council is being asked to approve the resolution authorizing the transfer of funds for an interfund loan(s) from the General Fund, Contingency Fund, and/or other funds to the Facility Replacement Fund for up to 12 months and consider this item at the July 28, 2014 Committee of the Whole meeting and subsequent August 4, 2014 Regular Meeting. ATTACHMENTS Draft Resolution 4 DRt.FT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE TRANSFER OF FUNDS FOR THE PURPOSE OF MAKING A LOAN OR LOANS FROM THE GENERAL FUND, CONTINGENCY FUND, AND /OR OTHER FUNDS TO THE FACILITY REPLACEMENT FUND FOR UP TO A 12 MONTH PERIOD OF TIME. WHEREAS, there may be insufficient funds available from time to time during the period of August 2014 to June 2015 in the Facility Replacement Fund to cover authorized expenditures before the City can issue bonds; and WHEREAS, the General Fund, Contingency Fund, and /or other funds have sufficient funds from which to transfer funds in an amount not to exceed $6,000,000 for the purpose of making loans to cover the authorized expenditures from the Facility Replacement Fund; and WHEREAS, in the event a loan is made from the General Fund, Contingency Fund, and /or other funds to the Facility Replacement Fund as provided above, the loans shall be at the current rate of interest provided by the Local Government Investment Pool at the time the loan(s) are made; and WHEREAS, the City Council intends to replace any funds loaned to the Facility Replacement Fund with long term bonds or other financing within 12 months of expending funds to purchase various properties within the City's Urban Renewal area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Purpose. Authorization is hereby given during the time period between August 2014 to June 2015 for the transfer of funds to the Facility Replacement Fund when there are insufficient funds available therein to cover authorized expenditures for which contracts have been executed, in an amount not to exceed $6,000,000 from the General Fund, Contingency Fund, and /or other funds for the purpose of making a loan at the current rate of interest provided by the Local Government Investment Pool. W: \Word Processing \Resolutions \Interfund loan for urban renewal 7 -22 -14 VC:bjs Page 1 of 2 5 Section 2. Implementation. The Finance Director is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2014. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk De'Sean Quinn, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel Turpin, Assistant City Attorney W: \Word Processing \Resolutions \Interfund loan for urban renewal 7 -22 -14 VC:bjs 6 Page 2 of 2 Finance & Safety Committee Minutes July 22, 2014 - Page 2 D. Resolution: Authorizing an Interfund Transfer for the Purchase of Property Staff is seeking Council approval of a resolution that would authorize the transfer of funds for an interfund loan from the General Fund, Contingency Fund, and /or other funds to the Facility Replacement Fund for up to $6,000,000.00 up to12 months in order to cover the cost of purchasing properties in the City's Urban Renewal area. In August 2013 the federal government seized three of the properties the City had previously identified for redevelopment. The forfeiture cases are moving quickly, the appraisals are complete, and the motels will be available for purchase in the next few weeks. Until bond financing can be secured, this interfund loan will allow the City to purchase the properties. Once bonds are sold the loans will be repaid. UNANIMOUS APPROVAL. FORWARD TO JULY 28, 2014 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Committee Chair Seal mentioned the State Auditor's exit interview that occurred earlier in the day, noting the auditing team were complimentary of City staff. Committee Chair Seal also mentioned that the next Finance and Safety meeting is scheduled on August 5, coinciding with the events of National Night Out against Crime, and asked if there was any objection to the traditional cancellation of the committee meeting. Committee members and staff agreed with the cancellation. Meeting adjourned at 6:56 p.m. Next meeting: Tuesday, August 19, 2014 — 5:30 p.m. — Hazelnut Conference Room Minutes by LH Committee Chair Approval 7