HomeMy WebLinkAbout4660 Resolution - Interfund Loans from 194 to 521.docx
Resolution – Interfund Loan - 1
RESOLUTION NO. 4560
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING INTERFUND LOANS FROM THE ECONOMIC
DEVELOPMENT FUND TO MEDICAL/DENTAL INSURANCE FUND.
WHEREAS, pursuant to RCW 35.34.200, 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 Economic Development Fund
to the Medical/Dental Insurance Fund for the purpose of stabilizing medical plan and meeting State
reserve requirements; and
WHEREAS, the City of Pasco maintains a self-funded medical plan that has historically
provided a financially sustainable program with the added benefit of cost avoidance associated
with service fees from private insurance provider; and
WHEREAS, no premium increases have been imposed since 2014 resulting in a flat per
employee revenue stream; and
WHEREAS, expenses have increased due to deferral of medical treatment resulting from
catchup claims related to the COVID pandemic, as well as increases in claimants in the fund related
to workforce, and associated dependent growth over recent years; and
WHEREAS, expenses have increased due to external factors that disrupted the claims
submittal and payment cycle as well as the impact of general health care industry inflation ; and
WHEREAS, the impact of both internal and external expense increases is having a
material impact on expenditures to the point of deficit spending; and
WHEREAS, State law, WAC 200-110-040, requires reserve amount equal to 16 weeks of
program expenses; and
WHEREAS, an initiative is underway to research, evaluate and plan appropriate
amendment to benefits and insurance premium rates.
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 Economic
Development Fund (194) to the Medical/Dental Fund (521) in the amount of $6,500,000.
Section 2: Terms and Memorialization. The effective date of the loan shall be October
15, 2025, with a repayment term of 10 years, concluding in 2035. Annual payments will begin in
2026. The loan will carry a fixed interest rate of four percent (4%), which reflects the average net
rate of return of the Local Government Investment Pool (LGIP).
Resolution – Interfund Loan - 2
Be It Further Resolved, that this Resolution shall take effect immediately.
PASSED by the City Council of the City of Pasco, Washington, on this 20th day of
October, 2025.
_____________________________
David Milne
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys