HomeMy WebLinkAbout4658 Resolution - Interfund Loans from 516 to CDBG Section 108
Resolution – Interfund Loan - 1
RESOLUTION NO. 4658
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING INTERFUND LOANS FROM THE EQUIPMENT
REPLACEMENT GOVERNMENTAL TO COMMUNITY DEVELOPMENT
BLOCK GRANT.
WHEREAS, pursuant to RCW 35.33.121, the City Council of the City of Pasco finds it to
be in the City’s best interest to provide an interfund loan from the Equipment Replacement
Governmental Fund to the Community Development Block Grant (CDBG) Fund for the purpose
of refinancing an existing loan; and
WHEREAS, the City received a variable rate loan from U.S. Department of Housing &
Urban Development (HUD) for $3,781,000 on May 26, 2021, for the Peanuts Park Rehabilitation
Project: and
WHEREAS, the City receives annual Community Development Block Grant (CDBG)
allocation of $245,000 to support annual debt service; and
WHEREAS, fluctuating and rising interest rates over the past two years have resulted in
higher debt service costs, which have been absorbed by the General Fund; and
WHEREAS, the City seeks to refinance the HUD loan by utilizing an interfund loan at a
fixed market rate from the Equipment Replacement Governmental Fund, which currently has funds
available for investment purposes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
Section 1: Authorization for Loans. The Finance Director of the City of Pasco is hereby
authorized and directed to make the following loans from the City of Pasco Equipment
Replacement Governmental Fund to the Community Development Block Grant in the amount of
$2,831,000 to payoff existing Section 108 Loan with HUD.
Section 2: Terms and Memorialization. The effective dates of the loan shall be October
15, 2025, with a repayment term of 14 years, concluding in 2039. Annual payments will begin in
2026. The loan will carry a fixed interest rate of 4.0 percent, which reflects the average net rate of
return of the Local Government Investment Pool (LGIP).
Be It Further Resolved, that this Resolution shall take effect immediately.
Resolution – Interfund Loan - 2
PASSED by the City Council of the City of Pasco, Washington, on this 6th day of October,
2025.
_____________________________
David Milne
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys