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HomeMy WebLinkAboutR-1993-020 Health District / BondsRESOLUTION NO. R -93- A RESOLUTION authorizing the ratification of Yakima Health District Resolution 93-8 relating to the issuance of $2.5 million in short-term bonds for interim cash flow purposes. WHEREAS, the City of Yakima is included in the area served by the Yakima County Hearth District, hereinafter called "District"; and WHEREAS, on March 25, 1993, the District's Board passed Resolution No. 93-8 which, among other things, recognized that Yakima County would issue $2.5 million in short-term bonds to alleviate the Health District's short-term cash flow situation; and WHEREAS, the City Council recognizes the need of the District to continue to provide increased levels of health care service to residents in the City of Yakima; and WHEREAS, such short-term bonds are to be repaid by the District on April 14, 1994 with District members, including the City, to be responsible for any shortfall in the repayments; and WHEREAS, pursuant to RCW 70.46.080, the City of Yakima and other entities included within the District are obligated to contribute such sums as are needed for the maintenance and operation of the District according to formulas suggested in WAC 246-05-020; and WHEREAS, the Council deems it to be in the best interest of the City of Yakima to ratify the obligation of the City of Yakima to repay any shortfall on the aforementioned bonds according to the formula mentioned in the aforesaid resolution, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Council hereby ratifies the City of Yakima's obligation to pay any District shortfall on the repayment of the aforementioned bonds mentioned in the attached and incorporated District Resolution No. 93-8 which payment obligation shall be according to the City of Yakima's proportionate share with other District contributors and according to the formula set out in the aforementioned resolution. ADOPTED BY THE CITY COUNCIL this 61'� day of tz a t- , 1993. ATTEST: J City Clerk (1s)res/vanek/yak hlth dst.jv C kvt Mayor YAKIMA COUNTY HEALTH DISTRICT A RESOLUTION of the Board of Directors of the Yakima County Health District approving the issuance by Yakima County of $2,500,000 principal amount of Health District Revenue Anticipation Notes; recognizing and confirming the obligation of the Health District to repay the Notes and authorizing a review of the Health District finances and development of a Cash Management Plan No. �f )— WHEREAS, the Health District was established in 1911 to provide public health services to the residents residing within the territory of the Yakima County (the "County") ; and WHEREAS, the operations of the Health District are funded from rates and charges, state and federal funds, donations and member contributions; and WHEREAS, pursuant to agreement and state statute and regulations promulgated thereunder, the County and all of the incorporated cities and towns within the County are contributing members, providing basic support of the Health District necessary to balance the Health District's budget on an annual basis; and WHEREAS, during the past year, the level of service provided by the Health District has increased significantly and the Health District also has experienced and continue to experience increased delays in reimbursement from the federal government for funds advanced for services and mismatches in disbursements and receipts; and WHEREAS, as a result of disparities in the timing of expenditures and disbursements and receipts of re'r. bursements from state and federal sources, the Health District has previously _ssued warrants on its funds that have been registered by the County Treasurer and held by the County's depository bank; and WHEREAS, the County's depository bank has advised the County Treasurer who acts as the ex officio Treasurer for the Health District that the County's bank will not hold registered warrants after April 15, 1993; and WHEREAS, the County has been advised by the Health District that it will be unable to raise sufficient cash to pay and redeem the outstanding registered warrants on April 15, 1993; and WHEREAS, the County is concerned that there be no immediate disruption in the delivery of health services by the Health District to the residents of Yakima County; and March 25, 1993 -1- (2) the balance, being the sum of $2,469,000 shall be deposited in the Working Capital Fund of the Health District. (b) The Health District has established a new fund with the County Treasurer, designated as the "Yakima Health District Working Capital Fund" (the "Working Capital Fund") . The Working Capital Fund shall be maintained by the Health District to hold money necessary to meet cash flow deficiencies. Balances in the Working Capital Fund shall be invested for the benefit of the Working Capital Fund by the County Treasurer in legal investments, only upon the written direction of the Health District delivered to the County Treasurer. On the date of issuance of the Notes , the proceeds deposited in the Working Capital Fund shall be disbursed by the County Treasurer to pay and redeem all outstanding and unpaid warrants drawn on other funds of the Health District. Following the date of issuance of the notes, the money in the Working Capital Fund may be transferred to other funds of the Health District from time to time in order to provide balances therein necessary to pay warrants properly drawn on such funds, but only upon receipt by the County Treasurer of the written direction of the Finance Director of the Health District. The balance on hand in the Working Capital Fund shall not be deemed to be a (budgetable) revenue source for the Health District and shall be maintained solely to provide for the payment of temporary cash flow deficiencies. Section 5. Repayment. In addition to the performance of its other covenants set forth in this Resolution, the Health District shall recognize and repay the County's contribution as follows: (a) The Health District shall pay to the County Treasurer for deposit to the Note Fund, on the first day of each month commencing on May 1, 1993, the sum of $7,500, which is the approximate monthly accrual of interest on the Notes; (b) The Health District shall maintain a positive cash balance in each of its funds at all times during which the Notes remain outstanding and; (c) In development of a cash management plan, it is the intent of the Board that the Health District be able to maintain a balance in the Working Capital Fund sufficient to eliminate the cash flow deficit described above within a reasonable period of time. Details as to timing and amount of payments into the Working Capital Fund are to be an integral part of the adopted cash management plan. It is the intent of the Board that, if necessary, it will direct reduction in services sufficient to reach this goal. (d) The Notes shall mature on April 14, 1994, and the Health District shall be responsible for the payment of the principal and interest on the Notes on their maturity date . These obligationE are intended to be satisfied from the operating revenues of the Health District. To the extent that such revenues are insufficient, this Board recognizes and agrees that any deficiency shall be paid by all members of the Health District. By the adopting of this resolution, this Board intends to bind and obligate all the members of the Health District to contribute to the short fall by contributions made and levied against each member in accordance with the existing agreement for the allocation of financial responsibility amount the members of the March 25, 1993 -3- Health District. (Washington Administrative Code Section 246-05-020(d), Option :1, Variation 1 (using a four-year average.) ) Approved this 25th day of March, 1993. YAKIMA HEALTH DISTRICT Chair Member Member Member Member Member Member Member March 25, 1993 -4-