HomeMy WebLinkAbout06/05/2018 08 Temporary Interfund Loan to Parks Capital from Wastewater CapitalBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
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Item No. 8.
For Meeting of: June 5, 2018
ITEM TITLE: Resolution authorizing temporary interfund Loan to Parks Capital
from Wastewater Capital
SUBMITTED BY: Tara Lewis, Financial Services Manager
SUMMARY EXPLANATION:
Due to the nature and timing of the City's share of the capital financing for the Aquatic Center,
interim financing is necessary for the project to begin while a long term financing strategy can be
completed this summer/fall.
The Wastewater Capital fund has sufficient reserves to make available, as a temporary loan, the
contracted amount of up to $8 million to provide for the City's share of the construction of the
Aquatic Center in partnership with the YMCA. Draws will be made as construction invoices are
paid to cover the cost.
The attached resolution provides for this temporary funding and for the repayment of the interfund
loan once external financing for the Aquatic Center is secured. Debt service will be paid primarily
from Parks Capital Charter Amendment funding with RE ET funds as a potential secondary
source.
ITEM BUDGETED:
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR
SUBMITTAL:
City Manager
STAFF RECOMMENDATION:
Adopt resolution
BOARD/COMMITTEE RECOMMENDATION:
ATTACHM E NT S :
Description
Resdution authorizing a temporary Interfund Loan -
Aquatic
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Upload Date Type
5/24/2018 Resdution
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A RESOLUTION
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RESOLUTION NO. R -2018 -
authorizing an Interfund Loan from the Wastewater Capital Fund to the
Parks Capital Fund as interim financing for the City's portion of the Aquatic
Center construction.
WHEREAS, the nature and timing of the City's share of the capital financing for the
Aquatic Center will require the City to issue debt; and
WHEREAS, the City may not have secured long-term financing by the time construction
has commenced and progress invoices are due thereby requiring an interim source of funds; and,
WHEREAS, the Wastewater Capital Fund has sufficient resources available for
investment to make the Interfund Loan authorized by this resolution; and
WHEREAS, funds should be loaned to the Parks Capital Fund in order to provide for cash
flow requirements during the interim financing period, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
An amount not to exceed $8,000,000 may be borrowed in whole or in part at such time as
it becomes necessary to pay construction progress invoices for the City's portion of the
construction of the Aquatic Center. The interest rate to be paid to the Wastewater Fund is the
monthly LGIP (Local Government Investment Pool) rate plus 0.25% in effect during the month in
which funds are drawn. Each draw on the loan shall be repaid with principal and interest from the
date of borrowing until repayment. Repayment shall be made from the Parks Capital Fund once
the long term financing for the project is completed, but no later than one year from the borrowing
date.
ADOPTED BY THE CITY COUNCIL this 5th day of June, 2018.
Kathy Coffey, Mayor
ATTEST:
Sonya Claar Tee, City Clerk