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:
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City Clerk
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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-