HomeMy WebLinkAboutR-2337 - Authorizing a interfund loan not to exceed $ 841,000 from the waterworks utility fund 401 to the golf fund 420 and providing a formula for payment ofCITY OF MARYSILLE
Marysville, Washington
RESOLUTION NO.;;' 1
A RESOLUTION AMENDING RESOLUTION 2296 OF THE CITY OF
MARYSVILLE AUTHORIZING A INTERFUND LOAN NOT TO EXCEED $841,000
FROM THE WATERWORKS UTILITY FUND 401 TO THE GOLF FUND 420, AND
PROVIDING A FORMULA FOR PAYMENT OF INTEREST.
WHEREAS, pursuant to Resolution No. 2272 the Marysville City Council authorized an
interfund loan in an amount not to exceed $700,000 from the Waterworks Utility Fund 401 to
the Golf Fund 401 for the purpose of subsidizing the ongoing municipal Golf Course operations
until December 3 I, 2012; and
WHEREAS, pursuant to Resolution No. 2296 the Marysville City Council increased the
amount of the interfund loan to an amount not to exceed $1,500,000; and
WHEREAS, the Golf Course borrowed $483,160 in 2009 and an additional $841,000 in
2010, for a total of $1 ,324,160; and
WHEREAS, in July 2012, the Golf Course repaid $483,160, the full amount borrowed
in 2009; and
WHEREAS, the balance still outstanding was borrowed in 2010, $443,000 to be paid on
December 31,2013 and the balance of $398,000 to be paid on or before December 31,2014;
and
WHEREAS, City golf course operations continue to require additional short term
financing; and
WHEREAS, the Waterworks Utility Fund 401 will have sufficient cash balances
remaining after loan funds are transferred, and will not be depleted so as to render the fund
unable to fulfill its function; and
WHEREAS, interest on the said loan is subject to interest imposed at a rate as set forth
by the Local Government Investment Pool, which rate is equal to or higher than the rate that the
Waterworks Utility Fund 401 would otherwise earn; and
WHEREAS, remaining loan amounts will 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 1. Section 1 of Resolution No. 2296 is amended to read as follows:
There is established an interfund loan not to exceed $841,000 from the Waterworks Utility Fund
401 to the Golf Course Fund 420.
Section 3. Section 3 of Resolution No. 2296 is amended to read as follows:
The Loan balance of $841,000 shall be repaid with interest at a rate as set forth by the Local
Government Investment Pool, from the Golf Course Fund 420 to the Waterworks Utility Fund
401 on or before December 31,2014.
Except as provided herein, all other provisions of Resolution No. 2296 shall remain in full force
and effect.
PASSED by the City Council and APPROVED by the Mayor this ..!-/--=-rb_~_ day of
DJUp L,2012.
(CITY OF MARYSVILLE
MAYOR
Attest:
By
Approved as to from: 11
By/.0.~~K. L b..Je '/
CITY ATTORNEY