HomeMy WebLinkAboutRes 1516 - Interfund Loan - Hotel and Motel Tax Fund and General and Arterial Street Funds ILA,
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City
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Resolution No. (4,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AUTHORIZING INTERFUND LOANS TO THE
HOTEL/MOTEL TAX FUND FROM THE GENERAL AND ARTERIAL
STREET FUNDS IN THE AMOUNT OF $1,350,000; AUTHORIZING THE
REPAYMENT OF A $1,450,000 NOTE BY THE HOTEL/MOTEL TAX
FUND TO KEY BANK; AND SETTING REPAYMENT AND INTEREST
CALCULATIONS.
WHEREAS, the City's Hotel /Motel Tax Fund has a $1,450,000, five year note to
Key Bank with an expiration date of March 1, 2003, and the City has determined that
interfund loans, along with a $100,000 repayment amount from the Hotel /Motel Tax
Fund, is the most appropriate method of repayment; and
WHEREAS, the Tukwila Lodging Tax Advisory Board has endorsed this
repayment at its February 6, 2003 Board meeting;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Payment of $1,450,000 note to Key Bank. The City is authorized to
repay the loan principal on or before March 1, 2003. The Hotel /Motel Tax Fund
($100,000); the General Fund ($600,000); and the Arterial Street Fund ($750,000) will
be funding sources.
Section 2. Repayment and interest calculations.
A. The Hotel/Motel Tax Fund will make principal payments to the General and
Arterial Street Funds annually in January of each year in an amount to be determined
by the Lodging Tax Advisory Board and the City Council until all principal is repaid.
B. The Hotel/Motel Tax Fund will pay interest to the lending funds based on
the average rate of the Washington State Investment Pool.
C. If the land, which was the purpose of the note and purchased by the
Hotel /Motel Tax Fund, is sold, the proceeds will be used to retire the interfund loans.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, at a Regular meeting thereof this g day of
2003,
ATTEST/ AUTHENTICATED:
Pam Carter, Council President
/fade E. Cantu, CMG, City Clerk
PROV1 D AS TO `)RM BY: 3
Filed with the City Clerk: e 3 �d
Passed by the City 3
e C ty Council: /Z 6
Office of theCCity Attorney Resolution Number:
Hotel /Motel Tax Fund 1