HomeMy WebLinkAboutRes 1791 - Local Improvement District #33 - Tukwila Urban Center Access Interfund Loan
Cover page to Resolution 1791
The full text of the ordinance follows this cover page.
See following reference in relation to Resolution 1791.
REFERENCE
Reference Resolution No. 1739, adopted May 2, 2011, authorizing
the transfer of funds for the purpose of making a loan or loans from
the General Fund and/or other Funds during the time period April
2011 to June 2012.
City of Tukwila
Washington
Resolution No. 1791
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, PROVIDING FOR CLARIFICATION
OF THE TERMS OF AN INTERFUND LOAN TO FUND THE
TUKWILA URBAN CENTER ACCESS PROJECT IN LOCAL
IMPROVEMENT DISTRICT NO. 33, AND OTHER MATTERS
PROPERLY RELATED THERETO.
WHEREAS, the City Council, by Ordinance No. 2260 passed on November 16,
2009, formed Local Improvement District No. 33 ( "LID No. 33 "); ordered the City to
undertake the Urban Center Access Project (Project 98410419) (the "Project ");
established the Local Improvement Fund, District No. 33 (the "LID Project Fund "), to
pay the costs of the Project; and authorized the use of interfund loans or other short-
term borrowings to pay the costs of the Project on an interim basis pending the receipt
of the revenues from the issuance of Local Improvement District Bonds (the "LID
Bonds "), grants and other resources; and
WHEREAS, the City Council, by Resolution No. 1739 adopted on May 2, 2011,
directed that up to $12,000,000 of funds be loaned on a temporary basis at a market
rate for the purpose of paying costs of the Project; and
WHEREAS, the Project is nearing completion and it is now expected that the LID
Bonds will be issued in mid -2013, and it is now necessary to clarify and restate the
terms of that interfund loan;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. In order to meet the continuing cash flow needs of the Project, the City
Council now finds that the terms of the previously- authorized interfund loan must be
revised and updated as follows:
1. The loan amount authorized to be loaned from the Arterial Street Fund to
the LID Project Fund is revised to a maximum amount not to exceed $9,500,000.
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2. The loan amount authorized to be loaned from the General Fund or other
funds to the Arterial Street Fund is revised to a maximum amount not to exceed
$2,500,000. The internal service Equipment Rental and Replacement Fund 501 shall
serve as the lending fund for this loan.
3. Loan advances to meet Project cash flow needs shall be authorized until
the loans are repaid from the LID Bond proceeds or other resources.
4. The loans shall be repaid from the LID Bond proceeds or other resources
no later than December 31, 2014.
5. Interest shall accrue, beginning on the date of each expenditure (each of
which shall be deemed a loan draw) until repaid, on the principal amount of each loan
draw outstanding at the rate of 1.80 percent per annum, computed on the basis of a
360 -day year for the actual number of days the principal amount of the loan draw is
outstanding. Such rate is determined to be a market rate, after receiving quotes from
three banks accustomed to making similar loans to municipal government entities, and
approximating the average rate of interest that would likely have been charged had the
City borrowed through those sources to provide interim funding for the Project.
Section 2. The Finance Director shall keep a record of the principal amount so
borrowed, the amount of interest accruing and the repayment of all such principal and
interest.
Section 3. The Finance Director and all other appropriate officials of the City are
authorized to take such action as may be necessary to carry out this resolution
including, without limitation, taking such action as may be necessary to amend the
budgets for the affected years to reflect the transfers and interfund loans 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. All actions previously taken and consistent with the provisions of this
resolution are ratified and confirmed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this Li-14 day of �-ck1 , 2013.
ATTEST /AUTHENTICATED:
Christy O'Fla gr - -'rty, MMC, City CI
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Filed with the City Clerk: a - -a-)— j
Passed by the City Council:
Resolution Number: / 6% C'
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