HomeMy WebLinkAboutR-2272 - Authorizing a interfund loan not to exceed $ 700,000 from the waterworks utility fund 401 to the golf fund 420, and providing a formula for payment ofCITY OF MARYSILLE
Marysville,Washington
RESOLUTION No.:;l.J,.lJ--
A RESOLUTION OF THE CITY OF MARYSVILLE AUTHORIZING A
INTERFUND LOAN NOT TO EXCEED $700,000 FROM THE WATERWORKS
UTILITY FUND 401 TO THE GOLF FUND 420, AND PROVIDING A
FORMULA FOR PAYMENT OF INTEREST.
WHEREAS,it was detennined to subsidize the on going Golf Course operations until
December 31,2012;and
WHEREAS,the need for short-term financing is necessary and accordingly,establish an
interfund loan from the Waterworks Utility Fund; and
WHEREAS,the Waterworks Utility Fund 401 is able to loan the funds and will not
require the loaned funds during the loan period; and
WHEREAS,interest on said loan is subject to interest imposed at a rate as set forth by
the Local Government Investment Pool; and
WHEREAS,said loan will not be repaid until permanent financing is complete;
NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MARYSVILLE,WASHINGTON AS FOLLOWS:
Section I. Loan
There is established an interfund loan not to exceed $700,000 from the Waterworks Utility Fund
401 to the Golf Course Fund 420.
Section 2.Interest
A. The initial interest on said loan shall be set at the rate of 0.451 %as set by the
Local Government Investment Pool (LGIP)Anticipated Gross Earnings Rate on October 31,
2009. Found on the following web site.
http://www.tre.wa.gov/LGIP/Igipsumm.htm#rate
B.The interest rate shall be adjusted monthly on the last day of each month as set
by the Local Government Investment Pool (LGIP)Anticipated Gross Earnings Rate Found on
the following web site.
http://www.tre.wa.gov/LGIP/Igipsumm.htm#rate
Section 3. Repayment.
The Loan shall be repaid with interest from the Golf Course Fund 420 to the Waterworks Utility
Fund 401 on or before December 31,2012.
Section 4. Severability.
If any section, sentence, clause or phrase of this resolution should be held invalid or
unconstitutional by a court of competent jurisdictions,such invalidity or unconstitutionality
shall not affect the validity or constitutionality of any other section, sentence, clause or phrase
of this resolution.
Section 5. Effective Date.
This resolution shall take effect immediately upon passage by the Marysville City Council.
PASSED by the City Council and APPROVED by the Mayor this /6 J),day of
IJO~,2009.
CIT1r MA~YSVIL~.
By %-w1 0(
MAYOR
::"'7~--a1c&RK
Approved as to from:.()
BY~IC.(~
CITY ATTORNEY