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HomeMy WebLinkAboutReg 2022-11-21 Item 6E - Resolution - Interfund Loan for Fire Department ApparatusCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/14/22 Vicky 11/21/22 Vicky ITEM INFORMATION ITEM No. 6.E. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 11/14/22 AGENDA ITEM TITLE Approve Interfund Loan from Sewer Fund to General Fund CATEGORY ® Discussion Mt Date 11/14/22 ❑ Motion Mtg Date ® Resolution Mtg Date 11 /21/22 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ PeER ❑ Police ❑ PW SPONSOR'S SUMMARY Approve Interfund Loan from the Sewer Fund to the General Fund to purchase fire engine as part of the Interlocal Agreement with Puget Sound Regional Fire Authority REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/24/22 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONsoR/ADMIN. Finance COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/14/22 Forward to next Regular Meeting 11/21/22 MTG. DATE 11/14/22 11/21/22 ATTACHMENTS Informational Memorandum dated 10/18/22 Draft Resolution Minutes from the October 24, 2022 Finance & Governance meeting Final Resolution 231 232 of Tukwila 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 FROM THE SEWER FUND TO THE GENERAL FUND; ESTABLISHING AN INTEREST RATE AND REPAYMENT SCHEDULE FOR SAID INTERFUND LOAN. WHEREAS, the City's Public Safety Plan originally planned for the purchase of Fire Department Apparatus (new engine)in 2024 thatwas to be funded through the State of Washington's LOCAL Program for a 10 -year to 20 -year repayment term; and WHEREAS, at the October 3, 2022 Regular Council Meeting, the City Council authorized the Mayor to sign an Interlocal Agreementwith the Puget Sound Regional Fire Authority for Fire/Emergency Medical Services; and WHEREAS, at the October 3, 2022 RegularCouncil Meeting,theCity Council also approved the expenditure of up to $1,100,000 utilizing an interfund loan for Fire Department Apparatus (new engine); and WHEREAS, utilizing an interfund loan will providethe City with greater control over the repayment terms; and WHEREAS, the City's Sewer Fund presently has sufficient funds from which to transfer funds in an amount not to exceed $1,100,000 for the purpose of making a loan to the General Fund to cover the authorized expenditure, in accordance with the requirements set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA HEREBY RESOLVES AS FOLLOWS: Section 1. Interfund Loan Authorized. An interfund loan in the principal amount not to exceed $1,100,000.00 is hereby authorizedfrom the Sewer Fund (Fund 402)to the General Fund (Fund 000). The effective date of said interfund loan shall be no later than January 16, 2023. CC: Legislative Development\interfund Loan Fire Engine 10-6-22 VC:AY Review and analysis by Andy Youn Page 1 of 2 233 Section 2. Interest. Interest on the interfund loan authorized per Section 1 shall accrue at the rate in effect with the Local Government Investment Pool (LGIP) as of the effective date of the interfund loan. The interest rate shall be calculated on an annual basis. Section 3. Repayment Schedule. The interfund loan authorized per Section 1 shall be repaid in full to the Sewer Fund (Fund 402), together with accrued interest consistentwith Section 2, as sufficient revenues become available to the General Fund (Fund 000), but in no event later than December31, 2026. Nothing in this resolution shall be construed as authorizing a permanent diversion of the funds transferred through said interfund loan. Section 4. Implementation. The Finance Director is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation, including, without limitation, taking such action as may be necessary to amend the budgets for the affected years to reflect the interfund loan described in this resolution, and including bringing forth budget amendments or reconciliations to Council, if Council approval in addition to this resolution is determined to be necessary under State law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022 ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney CC: Legislative Development\interfund Loan Fire Engine 10-6-22 VC:AY Review and analysis by Andy Youn Page 2 of 2 234