RES 23-849 - Delaring Intent Allocating Future Bond ProceedsRESOLUTION NO. 23-849
A RESOLUTION of the City of Federal Way, Washington, declaring
the intention to allocate future bond proceeds to reimburse
expenditures in relation to the purchase of land and construction of a
new Joint Operations and Maintenance Facility.
WHEREAS, the City currently owns and operates a maintenance facility for the purpose
of providing Parks, Police, Public Works services; and
WHEREAS, the City desires to execute several purchases of land in the approximate
amount of $8.5 million for the purpose of expanding the Joint Use Operations and Maintenance
Facility; and
WHEREAS, the City's General Fund's available reserves are not adequate to use to
purchase the land required; and
WHEREAS, the amount required for land acquisition is impractical to justify bond
issuance costs on its own; and
WHEREAS, the City anticipates and intends to use existing available funds on an interfund
basis from the City's Downtown Redevelopment Fund, and Transportation Capital Fund; and
WHEREAS, at such time as the City issues debt for the construction of the new facility
with an estimated cost of $47 million, combined with the cost of the purchase of land, the City
intends to include the cost of land acquisition and to extinguish the interfund loan.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. In compliance with the requirements of certain federal regulations (the "federal
reimbursement regulations") relating to the use of proceeds of tax-exempt bonds or other
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obligations ("bonds") to reimburse the City for capital expenditures (and certain extraordinary
working capital expenditures) made by the City before the issue date of the bonds. The City makes
the following declaration of official intent under the federal reimbursement regulations:
Section 2. Description of Project for Which Expenditures are to be Made. The City intends
to make (and/or, not more than 60 days before the date of this declaration, has made) expenditures,
and reasonably expects to reimburse itself for those expenditures from proceeds of bonds; for the
following project, property, or program (the "Project"): Purchase of land for the purpose of
expansion of the City's operations and maintenance facility as authorized by Ordinance 23-953;
and construction costs pertaining to said facility.
Section 3. Maximum Principal Amount of Obligations Expected to be Issued for the
Project. The City expects that the maximum principal amount of bonds that will be issued to
finance the Project will be $50,000,000 (fifty million dollars).
Section 4. Declaration Reasonable. Having reviewed the existing and reasonably
foreseeable budgetary and financial circumstances of the City, the City has determined that the
City reasonably expects to reimburse itself for expenditures for the Project from proceeds of bonds
because the City has no funds available that already are, or are reasonably expected to be, reserved,
allocated on a long-term basis, or otherwise set aside by the City for those expenditures on the
Project.
Section 5. Limitations on Uses of Reimbursement Amounts. The City will not, within 1
year after the expected reimbursement, use amounts corresponding to proceeds received from
bonds issued in the future to reimburse the City for previously paid expenditures for the Project in
any manner that results in those amounts being treated as replacement proceeds of any tax exempt
Resolution No. 23-849 Page 2 of 4
bonds, i.e., as a result of being deposited in a reserve fund, pledged fund, sinking fund, or similar
fund (other than a bona fide debt service fund) that is expected to be used to pay principal of or
interest on tax exempt bonds. Nor will the City use those amounts in any manner that employs an
abusive arbitrage device to avoid arbitrage restrictions.
Section 6. Severabilit . If any section, sentence, clause or phrase of this resolution should
be held to be 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 7. Corrections. The City Clerk and the codifiers of this resolution are authorized to
make necessary corrections to this resolution including, but not limited to, the correction of
scrivener/clerical errors, references, resolution numbering, section/subsection numbers and any
references thereto.
Section 8. Ratification. Any act consistent with the authority and prior to the effective date
of this resolution is hereby ratified and affirmed.
Section 9. Effective Date. This resolution shall be effective immediately upon passage by
the Federal Way City Council.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 8th day of November, 2023.
[signatures to follow]
Resolution No. 23-849 Page 3 of 4
CITY OF FEDERAL WAY:
ATTEST:
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APPROVED AS TO FORM:
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J. RYAN CALL, CITY ATTORNEY
FILED WITH THE CITY CLERK: 11/01/2023
PASSED BY THE CITY COUNCIL: 11/08/2023
RESOLUTION NO.: 23-849
Resolution No. 23-849 Page 4 of 4