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HomeMy WebLinkAboutR-2199 - Authorizing a $ 1,170,876.08 interfund loan from the Water Works Utility Fund 401 to the Street Construction Fund 305, and providing for payment andCITY OF MARYSILLE Marysville,Washington RESOLUTIONNO.~I qq A RESOLUTION OF THE CITY OF MARYSVILLE AUTHORIZING A $1,170,876.08 INTERFUND LOAN FROM THE WATER WORKS UTILITY FUND 401 TO THE STREET CONSTRUCTION FUND 305, AND PROVIDING FOR PAYMENT AND A FORMULA FOR PAYMENT OF INTEREST. WHEREAS,it was determinedto seek long-termfinancing to fund on goingand new streetconstruction projects; and WHEREAS,the need for short-termfinancing is necessary and accordingly, establishan interfundloan fromthe Water Works UtilityFund 401 to the Street Construction Fund 305;and WHEREAS,the Water WorksUtility Fund401 is able to loan the funds and will not requirethe loaned funds during the loanperiod; and WHEREAS,interest on said loanis subjectto interestimposed at a rate as set forthbythe LocalGovernmentInvestment Pool; and WHEREAS,the Street ConstructionFund 305 is obtaining permanentfinancing andwill havethe ability to repay said loanand interestwhenpermanentfinancing is complete; NOW THEREFORE,BE IT RESOLVED BYTHE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON AS FOLLOWS: Section 1.Loan. There is established an interfund loan in the amount of $I,170,876.08fromthe Water Works UtilityFund401 to the Street Construction Fund 305. Section2. Interest. The interestrate shall be adjusted monthlyon the last day of each month as set by the Local GovernmentInvestment Pool (LGIP)AnticipatedGross EarningsRate. Section3. Repayment. The Loanshall be repaid with interestfrom the StreetConstruction Fund 305 to the Water Works UtilityFund 40I on or before December3I, 2007. Section4. Ratification. RESOLUTION 20071NTERFUND LOAN FROM FUND 401 TO FUND 305 Iwptlmv/res.2007.lnterfund LoanFund 401 to Fund305 r Iof2 Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed Section 5.Severability. If any section,sentence,clause or phrase of this resolution should be held invalid or unconstitutional by a court of competent jurisdiction,such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section,sentence,clause or phrase of this resolution. Section 6. Effective Date. This resolution shall take effect immediately upon passage by the Marysville City Council. PA,SSED by the City Council and APPROVED by the Mayor this I~day of ('A~,2007. CITY OF MARYSVILLE By~~if~ Dennis Kendall,MAYOR Attest: By A ~"qci7Lm<K Approved as to from: BYP~C~,I Grant K. Weed CITY ATTORNEY RESOLUTION 2007 INTERFUND LOAN FROM FUND 40 1 TO FUND 305 Iwpf/mvlres.2007Jnterfund Loan Fund 401 to Fund 305r 20f2