RES 23-847 - Authorizing Interfund Loan from General Fund to CDBG FundRESOLUTION NO. 23-847
A RESOLUTION of the City of Federal Way, Washington, authorizing a
revolving Interfund Loan of up to $400,000, not to exceed three years,
from the General Fund to the Community Development Block Grant
Fund to fund the difference caused by timing of grant reimbursement
and spending of grant funds.
WHEREAS, the Community Development. Block Grant Fund has a timing difference
between the time the grant is reimbursed and the spending of grant funds; and
WHEREAS, the Community Development Block Grant Fund will need up to $400,000 to
fund the difference between grant reimbursement and grant spending; and
WHEREAS, the City's General Fund currently earns 4.12% in the State Investment Pool and
has an adequate fund balance to provide a temporary revolving interfund loan to cover the gap
between grant reimbursement and grant spending for the Community Development Block Grant
Fund; and
WHEREAS, the portion of the City's General Fund balance used for this revolving inter -fund
loan will accrue interest at the same rate (4.12%) as the General Fund currently earns from the State
Investment Pool as of December 2022.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. The Community Development Block Grant Fund is authorized to borrow from the
City's General Fund an amount of up to $400,000, for the purpose of funding the difference caused
by the timing of grant reimbursement and grant spending. The term of the revolving loan shall be for
Resolution No. 23-847 Page I of 3