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HomeMy WebLinkAboutRes 1746 - Loan Agreement with Metropolitan Park DistrictCity of Tukwila Washington Resolution No. I is-149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING A LOAN FROM THE CITY OF TUKWILA GENERAL FUND TO THE TUKWILA METROPOLITAN PARK DISTRICT FUND, IN AN AMOUNT NOT TO EXCEED $1.1 MILLION, TO FUND PARK DISTRICT OPERATIONS PENDING COLLECTION OF GENERAL TAXES. WHEREAS, by Resolution No. 1738, the City Council of the City of Tukwila, Washington, asked the voters to create a Metropolitan Park District whose boundaries would be coextensive with the boundaries of the City of Tukwila, including the authority to levy a general tax on property not to exceed 15 cents per thousand dollars of assessed valuation each year as statutorily provided; and WHEREAS, on August 16, 2011, the voters of Tukwila approved the formation of a Metropolitan Park District as required and now known as the Tukwila Metropolitan Park District ( "Park District "); and WHEREAS, the general taxes levied by the Park District pursuant to RCW 35.61.210 will not be collected and available to fund Park District operations until May 1, 2013, and a loan from the City of Tukwila is needed during the interim period to fund Park District operations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Loan from City General Fund to Park District Fund Authorized. The City of Tukwila hereby authorizes a loan from its General Fund to the Tukwila Metropolitan Park District Fund in the principal sum not to exceed the lesser of $1,100,000.00 plus interest thereon, or the Park District's indebtedness limit pursuant to RCW 35.61.100. Section 2. Loan Repayment Terms — Interlocal Agreement Authorized. City staff is hereby directed to prepare an interlocal agreement setting forth the terms and conditions of the loan authorized in Section 1. Said agreement shall specify, at W: \Word Processing \Resolutions \Loan authorized to Metropolitan Park District 9 -7 -11 K Sand:bjs Page 1 of 2 minimum, a repayment term of 10 years and interest due at the rate of 2% compounded annually. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this ice; day of September, 2011. ATTEST /AUTHENTICATED: Melissa Hart, CMC, Acting City Clerk APPROVED AS TO FORM BY: afi Shelley M. Kerslake, City Attorney Allan Ekberg, Council Presi Filed with the City Clerk: CI' 7 " I Passed by the City Council: q- Resolution Number: W: \Word Processing \Resolutions \Loan authorized to Metropolitan Park District 9 -7 -11 K Sand:bjs Page 2 of 2