HomeMy WebLinkAboutReg 2011-05-02 Item 6B - Resolution - Interfund Loans up to $12 Million for Tukwila Urban Center Access (Klickitat) Co uNcm AGENDA S YNopsiS
Initials I7'EMNO.
Meeting Date Prepared by Mayerettiew Council review
0 04/25/11 SH
0 05/02/11 1 SH I I IPAJ I
JTEM INFORMATION,
CAS NUMBER: 11-045 STAFF SPONSOR: SHAWN HUNSTOCK I ORIGINAL AGENDA DATE: 41 25/11
AGENDA ITEM TITLE Tukwila Urban Center Access (Klickitat) Project
Resolution Authorizing Interfund Loan(s) up to $12 million
Resolution Declaring Reimbursement from Bond Proceeds
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing ❑Other
Mtg Date 04128111 Mtg Date Mtg Date 05102111 Mtg Date Mtg Date Mtg Date Mtg Date
(SPONSOR ❑Council ❑Mayor Adm Svcs DCD ®Finance []Fire E] Le P&'R Police PW
SPONSOR'S These two resolutions will facilitate the Local Improvement District (LID) funding for the
SUMMARY TUC Access (Klickitat) Project. The first resolution will allow City interfund loan(s) up to
$12 million to provide construction financing before the bond sale. The second resolution
is a declaration of intent to reimburse the City for the interim financing from proceeds of
the sale of the long -term LID bonds. Council is being asked to approve the two resolutions.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 4/18/11 CONMTTEE CHAIR: JOAN HERNANDEZ
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance
COMMITTEE Unanimous Approval; Forward to Committee of the Whole
„COST IMPACT /FUND SOURCE::`
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0.00 $0.00 $0.00
Fund Source: TO THE 104 ARTERIAL STREET FUND
Comments: Budget changes for interfund loan will be included in the mid biennium budget amendment
MTG DATE I, RECORD OF3COUNCIL':ACT ON;
4/25/11 Forward to next Rea_ular Meeting_
5/02/11
MTG. DATE" ATTAC.HM'ENTS
4/25/11 Informational Memorandum dated 4/14/11
Draft Resolutions
Minutes from the Transportation Committee meeting of 04/18/11
5/02/11 �2 Resolutions in final form
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Washington
Resolution No
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 AND /OR OTHER FUNDS TO THE ARTERIAL
STREET FUND FOR UP TO A 15 -MONTH PERIOD OF TIME.
WHEREAS, there may be insufficient funds available from time to time during the
period April 2011 to June 2012 in the Arterial Street Fund to cover authorized expenditures
while the City waits for reimbursement of federal, state and local grant monies that have
been approved for allocation to the City for which contracts have been executed; and
WHEREAS, the General Fund and /or other funds have sufficient funds from which to
transfer funds in an amount not to exceed twelve million dollars ($12,000,000) for the
purpose of making loans to cover authorized expenditures from the Arterial Street Fund;
and
WHEREAS, in the event a loan is made from the General Fund and /or other funds to
the Arterial Street Fund as provided above, the loans shall be at the current market rate of
interest for comparable investments of similar maturity; and
WHEREAS, the City Council intends to replace any funds loaned to the Arterial Street
Fund with long term Local Improvement District bonds upon completion of the Tukwila
Urban Center Access Project (Project No. 98410419), also known as the Klickitat project,
upon completion of construction and completion of the final assessment roll;
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 April 2011
to June 2012 for the transfer of funds to the Arterial Street Fund, when there are
insufficient funds available therein to cover authorized expenditures for which contracts
have been executed, in an amount not to exceed twelve million dollars ($12,000,000) from
the General Fund and /or other funds for the purpose of making a loan at the current
market rate of interest.
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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 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Shelley M. Kerslake, City Attorney
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Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, EXPRESSING OFFICIAL INTENT, PURSUANT TO
TREASURY REGULATION SECTION 1.150 -2, TO REIMBURSE THE
CITY FROM THE PROCEEDS OF BONDS FOR CERTAIN ORIGINAL
EXPENDITURES PAID IN CONNECTION WITH CERTAIN ARTERIAL
STREET FUND PROJECTS; AND DESIGNATING AN AUTHORIZED
REPRESENTATIVE TO MAKE DECLARATIONS OF OFFICIAL INTENT
ON BEHALF OF THE CITY.
WHEREAS, the City of Tukwila, Washington (the "City intends to make
expenditures for the Project (identified below) from funds that are available but that are
not, and are not reasonably expected to be, reserved, allocated on a long -term basis, or
otherwise set aside for those expenditures, and reasonably expects to be reimbursed
for those expenditures from proceeds of bonds or other obligations issued to finance
those expenditures; and
WHEREAS, it is the intent of the City to pay certain capital expenditures incident to
the acquisition and construction of the Project to be financed by the proceeds of the bonds
from other funds of the City pending the sale and delivery of the bonds and the receipt of
the proceeds thereof, and the City reasonably expects to reimburse the funds of the City
from the proceeds of such bonds;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Description of Project for Which Expenditures are to be Made. The
City intends to make, and /or not more than 60 days before the date of this declaration has
made, expenditures and reasonably expects to reimburse itself for those expenditures
from the proceeds of bonds for the Tukwila Urban Center Access Project, Project No.
98410419 (the "Project also known as the Klickitat project.
Section 2. Maximum Principal Amount of Obligations Expected to be Issued for
the Project. The City expects that the maximum principal amount of bonds that will be
issued to finance the Project will be twelve million dollars ($12,000,000).
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Section 3. Declaration Reasonable. The City Council has reviewed its existing and
reasonably foreseeable budgetary and financial circumstances and has determined the
City reasonably expects to reimburse itself for expenditures for the Project from proceeds
of bonds because the City has no funds available that already are, or are reasonably
expected to be, reserved, allocated on a long -term basis, or otherwise set aside by the
City for those expenditures on the Project.
Section 4. Limitations on Uses of Reimbursement Amounts. For one year after
the allocation of proceeds, the City will not use amounts corresponding to proceeds
received from bonds issued in the future to reimburse the City for previously paid
expenditures for the Project in any manner that results in those amounts being treated as
replacement proceeds of any tax exempt bonds, i.e., as a result of being deposited in a
reserve fund, pledged fund, sinking fund or similar fund other than a bona fide debt service
fund that is expected to be used to pay principal of or interest on tax exempt bonds. The
City will not use said amounts in any manner that employs an abusive arbitrage device to
avoid arbitrage restrictions.
Section 5. Designation of Authorized Representative. The Finance Director is
hereby designated as the authorized representative of the City to declare in writing, in
such form as may be approved by the City Council, the official intent of the City to
reimburse original expenditures for the Project from proceeds of debt to be issued for
purposes of and in accordance with Treasury Regulation Section 1.150 -2.
Section 6. 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 2011.
ATTEST /AUTH ENT! CATED:
Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Shelley M. Kerslake, City Attorney
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