HomeMy WebLinkAbout3880 Resolution RESOLUTION NO.<3SSO
A RESOLUTION AUTHORIZING AN INTERFUND LOAN TO THE
AMBULANCE FUND.
WHEREAS,the City Council of the City of Pasco,pursuant to RCW 35.33.121,finds that
it is in the best interest of the City to lend funds from the General Fund to the Ambulance Fund
and to provide for the repayment thereof; and
WHEREAS, in 2016 the Ambulance Fund began the process of implementing, with the
assistance of the State of Washington Health Care Authority, the Ground Emergency Medical
Transport reimbursement program(GEMT); and
WHEREAS, the Ambulance Fund required a one-day loan at the end of 2017 to present a
positive cash balance and operated in 2018 with an excess of expenses over revenues; and
WHEREAS, while GEMT program payments have been received for the current year
activity only,beginning in July 2018,no prior year transport activity has been reimbursed; and
WHEREAS, the Ambulance Fund anticipates receipt of approximately $1,300,000 in
revenue in 2019 related to the reimbursement of the Ground Emergency Medical Transport
(GEMT) for transports provided prior to July 2018; and
WHEREAS, the Ambulance Fund anticipates additional sufficient revenues over the
period of the loan to make payments of principal and interest under the terms of the loan;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON,DO HEREBY RESOLVE AS FOLLOWS:
Section 1: Authorization for Loan. The Finance Director of the City of Pasco is hereby
authorized and directed to make the following loan from the City of Pasco General Fund to the
Ambulance Fund in the sum of$2,000,000.
Section 2. Terms. The effective date of the loan shall be January 1, 2018. The fund will
pay interest for 2018. The first installment of principal and interest will coincide with the receipt
of prior years' GEMT reimbursement. The remaining $700,000 will be subsidized by General
Fund in 2019. The interest rate for the term of the loan is set equal to the Local Government
Investment Pool(LGIP)Net Rate of Return as of the month of the installment payment due date.
Section 3. Memorialization. This resolution shall constitute memorialization of the loan
and its terms.
PASSED by the City Council of the City of Pasco, Washington, this 3rd day of December
2018.
Matt Watkins Mayor
ATTEST: APPROVED AS TO FORM:
Daniela Erickson,City Clerk Leland B. Kerr, City Attorney
OPTION B- $700,000 Subsidy(Partial Loan Forgiveness)
Interfund Loan
General Fund to Ambulance
Interest Principal Subsidy Balance
2,000,000
2018 40,000 - - 2,000,000
2019 40,000 1,300,000 700,000 -
2020 - - - -
2021 - - - -
2022 - - - -
2023 - - - -
80,000 1,300,000 700,000
Interest 2.00% LGIP Estimate
Principal 2,000,000