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HomeMy WebLinkAbout2154 Resolution'roved As To Form: 14* \ O i k Rubstello torney / - • _ - Catherine D Sean Deputy City Clerk reg ity A RESOLUTION NO. A RESOLUTION authorizing an interfund loan from cash reserves for interim financing of the improvements for Local Improvement Districts No 126, 127 and 128 WHEREAS, the City Council has approved the construction of improvements described in the respective ordinances authorizing Local Improvement Districts No 126, 127 and 128, and WHEREAS, interim financing is necessary to cover the payment of construction costs until the proceeds from bond sales to finance the improvement are available, and WHEREAS, the City Finance Director has determined that there are sufficient funds available in the cash reserves of other City funds to cover the necessary interim financing, now, therefore, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO RESOLVE AS FOLLOWS: 1. The City Finance Director is hereby authorized and directed to provide interim financing for the improvements being constructed for Local Improvement Districts No 126, 127 and 128 from cash reserves available in City funds 2. The funds borrowed shall be repaid to the lending funds at the same rate of interest as it shall be from time to time in the State Treasurer's Investment Fund investment pool 3. The borrowed funds shall be repaid with the proceeds of bonds sold to finance the improvements described in the ordinances creating Local Improvement Districts No 126, 127 and 128 4. The maximum amount to be borrowed from the lending City funds for the interim financing authorized in paragraph no 1 above, shall be 4 4 million dollars Passed by the City Council of the City of Pasco, at a regular meeting this 7th day of November, 1994 City of Pasco: Rehce Attest: AGENDA REPORT FOR City Council TO Gary Crutchfiel M nger FROM Dan Underwoos , Finance Director 4,11 SUBJECT INTERIM FINANCING FOR LID'S 126. 127 AND 128 I REFERENCE(S) Proposed Resolution II ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS 10/24/94 DISCUSSION 1 1 /7 / 9 4 MOTION I move to approve Resolution No • authorizing the interim-financing for Local Improvement Districts 126, 127 and 128 with cash reserves from various funds of the City III HISTORY AND FACTS BRIEF For the last several Local Improvement Districts formed in the City of Pasco, financing has been done internally through interfund loans These L I D 's are of a size that will require external financing with L I D Bonds Bonds cannot be issued until total costs are known and the amount of the bonds can be determined In order to complete construction, interim-financing is necessary to pay the cost of construction Interim-financing can be accomplished either through external short-term borrowing from a financial institution or internal financing from available funds L I D 126, for the construction of Broadmoor Parkway, was authorized by Ordinance No 3010 and amended by Ordinance No 3049 L I D 127, for the construction of the Broadmoor Parkway Waterline, was authorized by Ordinance No 3017 L I D No 128, for Improvements in the Pasco Processing Center, was authorized by Ordinance No 3032 and amended by Ordinance No 3048 All three ordinances allow for interim-financing via interfund loans Almost all of the City's cash reserves are invested in the State Treasurer's Investment Pool The pool is currently paying 4 81% There will be enough cash reserves available to fund the interim-financing requirements of these L I D 's until L I D Bonds are issued in March 1995 IV FISCAL IMPACT There will be no impact on the lending funds as they will receive the same interest they would receive if reserve cash was invested in the investment pool V DISCUSSION The investment pool rates are comparable or lower than we could obtain from a financial institution and internal interim-financing will require no fees This will help keep the final assessment amounts down for the property owners, as interim financing costs are added to the assessments Our current accounting system can easily accommodate tracking the amounts advanced and interest accrued for the lending funds It will not require much additional work by staff VI OTHER COMMENTS None DATE 10/20/94 WORKSHOP 10/24/94 REGULAR 11T7/94 RESOLUTION NO. A RESOLUTION authorizing an interfund loan from cash reserves for interim financing of the improvements for Local Improvement Districts No 126, 127 and 128 WHEREAS, the City Council has approved the construction of improvements described in the respective ordinances authorizing Local Improvement Districts No 126, 127 and 128, and WHEREAS, interim financing is necessary to cover the payment of construction costs until the proceeds from bond sales to finance the improvement are available, and WHEREAS, the City Finance Director has determined that there are sufficient funds available in the cash reserves of other City funds to cover the necessary interim financing, now, therefore, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO RESOLVE AS FOLLOWS: 1. The City Finance Director is hereby authorized and directed to provide interim financing for the improvements being constructed for Local Improvement Districts No 126, 127 and 128 from cash reserves available in City funds 2. The funds borrowed shall be repaid to the lending funds at the same rate of interest as it shall be from time to time in the State Treasurer's Investment Fund investment pool 3. The borrowed funds shall be repaid with the proceeds of bonds sold to finance the improvements described in the ordinances creating Local Improvement Districts No 126, 127 and 128 4. The maximum amount to be borrowed from the lending City funds for the interim financing authorized in paragraph no 1 above, shall be 4 4 million dollars Passed by the City Council of the City of Pasco, at a regular meeting this 7th day of November, 1994 City of Pasco: Joyce DeFelice Mayor Attest: Approved As To Form: Catherine D Seaman Greg A Rubstello Deputy City Clerk City Attorney