RES 14-667RESOLUTION NO. 14 -667
A RESOLUTION of the City Council of the City of Federal Way,
Washington, authorizing an Interfund Loan of up to $13,000,000 from
the Fleet and Equipment Fund, Information Technology Fund, Streets
Capital Fund, Utility Tax Fund, General Fund, and Strategic Reserve
Fund to City Facilities Fund of the City of Federal Way.
WHEREAS, The Council of the City of Federal Way has determined that it will cost the City
about 2% more to borrow from outside to finance this project compared to what it makes through the
state investment pool on its investments ; and
WHEREAS, the City's Fleet and Equipment Fund, Information Technology Fund, Streets
Capital Fund have adequate funds set aside for future capital projects and capital purchases and
being invested in the State Investment pool at the current rate of 0.08% (as of May 1, 2014) pending
the time for the purchases and projects; and
WHEREAS, the City's General Fund, and Strategic Reserve Fund have adequate funds set
aside for reserve that will not be appropriated that are being invested in the State Investment pool at
the current rate of 0.08% (as of May 1, 2014); and
and
WHEREAS, the City is paying about 3% on its last General Obligation Bond issued in 2013 ;
WHEREAS, the City's Fleet and Equipment Fund, Information Technology Fund, Streets
Capital Fund, Utility Tax Fund, General Fund and Strategic Reserve Fund will earn more than
twelve times from an inter -fund loan than the City current earns in the State Investment pool ; and
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Resolution No. 14 -667 Page I of 3
Section 1. The City's City Facilities Fund is authorized to borrow from the City's Fleet and
Equipment Fund, Information Technology Fund, Streets Capital Fund, Utility Tax Fund, General
Fund and Strategic Reserve Fund not more than a total of $13,000,000 for the purpose of
constructing a Performing Arts and Conference Center. The term of the loan shall be for a period not
to exceed three years from the day of first advance at an interest rate of 1.0% (current Washington
State Investment Pool's earning rate is 0.08% as of May 1, 2014). The City Facilities Fund may pay
off the loan or make extra payments any time during the life of the loan.
Section 2. The Finance Director is designated on behalf of the City to process and administer
a temporary loan not to exceed $13,000,000 from the available cash of the City's Fleet and
Equipment Fund, Information Technology Fund, Streets Capital Fund, Utility Tax Fund, General
Fund and Strategic Reserve Fund, where money deposited therein is not immediately needed for the
purposes of that fund to the City Facilities Fund.
Section 3. Severability. 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 4. 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 5. Ratification. Any act consistent with the authority and prior to the effective date
of this resolution is hereby ratified and affirmed.
Resolution No. 14 -667 Page 2 of 3
Section 6. 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 1 st day of July, 2014.
ATTEST:
CITY OF FEDERAL WAY
ITY CLERK, CAROL MC EILLY, C C
APPROVED AS TO FORM:
INTERIM 0 Y ATTORNEY, AMY JO PEARSALL
FILED WITH THE CITY CLERK: 6/25/2014
PASSED BY THE CITY COUNCIL: 7/1/2014
RESOLUTION NO.: 14 -667
Resolution No. 14 -667 Page 3 of 3