HomeMy WebLinkAbout07/01/2008 14C Capitol Theatre Expansion Project Funding Transfers BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. /'
For Meeting Of 7/1/08
ITEM TITLE: Resolution Authorizing an Interfund Loan from Fund 198 - Capitol Theatre
Reserve Fund to Fund 322 - Capitol Theatre Construction Fund, for the
purpose of providing cash flow for the relocation of utilities and construction
design.
SUBMITTED BY: Rita DeBord, Finance Director GJ —
Cindy Epperson, Deputy Director of Accounting & Budgeting
CONTACT PERSON/TELEPHONE: Cindy Epperson, 575 -6070
SUMMARY EXPLANATION:
During the 2008 budget process, City Council approved a project to expand the Capitol
Theatre, including an Interfund loan of up to $500,000 from Fund 198 - Capitol Theatre
Reserve Fund to Fund 322 - Capitol Theatre Construction Fund, in order to provide cash flow
for these activities. The proposed expansion includes a new Production Center (attached to
the back of the Theatre) and a Pavilion (a support annex and administrative office on the
comer of Yakima Avenue and 3` Street). In 2008, the Capitol Theatre will relocate the utilities
in back of the Theatre and begin the construction design process. Construction of the
Production Center is set to begin in 2009.
The Capitol Theatre is in the process of finalizing plans to begin the relocation of utilities and
therefore will soon find it necessary to have sufficient cash flow within the 322 Fund to pay for
the subsequent expenses. The Interfund loan from the Capitol Theatre Reserve Fund will be
repaid, with interest, when the City issues bonds in 2009.
Resolution X Ordinance Other (Specify)
Contract Mail to (name and address):
Phone:
Funding Source 198 - Capitoheatre Reserve Fund
APPROVED FOR SUBMITTAL: City Manager
STAFF RECOMMENDATION: Adopt Resolution
BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
COUNCIL ACTION:
RESOLUTION NO. R -2008
A RESOLUTION authorizing an Interfund Loan
from the 198 - Capitol Theatre Reserve Fund to
the 322 - Capitol Theatre Construction Fund in
an amount not to exceed $500,000, and setting
the terms of repayment.
WHEREAS, the Capitol Theatre Reserve Fund has sufficient resources
available for investment to make the Interfund Loan authorized by this
Resolution; and
WHEREAS, funds must be loaned to the 322 - Capitol Theatre Construction
Fund in order to provide for cash flow requirements for finalizing the
construction design and for the relocation of utilities prior to construction of the
Capitol Theatre Production Center facility, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
A loan of up to $500,000 may be borrowed in whole or in part only at such
time as it becomes necessary to complete the project. The interest rate to be
_ paid to Fund 198 - Capitol Theatre Reserve Fund for borrowing these funds
shall be based on the current Local Government Investment Pool rate at the
time of each draw, and each draw on the loan shall be repaid with principal and
interest upon issuance of tax exempt bonds for the Capitol Theatre expansion,
but no later than three . years from the borrowing date. Repayment shall be
made from Fund 322 - Capitol Theatre Construction Fund.
ADOPTED BY THE CITY COUNCIL this day of July, 2008.
DAVID EDLER, MAYOR
•
ATTEST: .
CITY CLERK
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ham-fund Loan