HomeMy WebLinkAboutRes 2057 - Interfund Loan for Fire Department ApparatusWashington
Resolution No. o5�
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, the City Council also
approved the expenditure of up to S1,100,000 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 OFTUKWILAHEREBY
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.
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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
consistent with Section 2, as sufficient revenues become available to the General Fund
(Fund 000), but in no event later than December 31,2026. 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 715'6y of 1\)ovtoPl, 2022
Al I EST/AUTHENTICATED:
enitriAltejOgl'ethetti
Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President
APPROVED AS TO FORM BY:
(IA4 e. kvSiadied,
Office of the City Attorney
Filed with the City Clerk:
Passed
Passed by the City Council: (
Resolution Number: 7[957
CC: Legislative DevelopmentInterfund Loan Fire Engine 10-6-22
VC:AY Review and aialysis by Andy Youn Page 2 of 2