RES 15-681 - Authorizing Interfund Loan for Karl Grosch Field Turf ReplacementRESOLUTION NO. 15 -681
A RESOLUTION of the City Council of the City of Federal Way,
Washington, authorizing an Inter -Fund Loan of $200,000 from the
Strategic Reserve Fund to the Parks Capital Fund for the Karl Grosch
Field Turf Replacement Project.
WHEREAS, the Karl Grosch Field Turf Replacement Project is to replace the soccer field
playing surface; and
WHEREAS, the Karl Grosch Turf Replacement Project will cost $582,281; and
WHEREAS, the cost to borrow from outside lenders to finance this project is 2.27% more
than what the City earns through the State Investment Pool on its investments; and
WHEREAS, the City's Strategic Reserve Fund has adequate funds set aside for future capital
projects and capital purchases, and such funds are being invested in the State Investment Pool at the
current rate of 0.16% (as of March 1, 2015) pending the time for the purchases and projects; and
WHEREAS, the Strategic Reserve Fund has 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 0.16% (as
of March 1, 2015); and
and
WHEREAS, the City is paying 1.51 % on its last General Obligation Bond issued in 2014;
WHEREAS, the City's Strategic Reserve Fund will earn more than six times from an Inter-
Fund loan than the City currently earns in the State Investment Pool;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Resolution No. 15 -681 Page 1 of 3
Section 1. The Parks Capital Fund is authorized to borrow from the City's Strategic Reserve
Fund an amount not to exceed $200,000 for the purpose of Karl Grosch Field Turf Replacement.
The term of the loan shall be for a period not to exceed three years from the day of first advance at an
annual interest rate of 1.0% (current Washington State Investment Pool's earning rate is 0.16% as of
March 1, 2015). The Parks Capital Fund may pay off the loan or make extra payments at 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 of $200,000 from the available cash of the Strategic Reserve Fund, where money
deposited therein is not immediately needed for the purposes of that fund, to the Parks Capital 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.
Section 6. Effective Date. This resolution shall be effective immediately upon passage by the
Federal Way City Council.
Resolution No. 15 -681 Page 2 of 3
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 21" day of April, 2015.
CITY OF FEDERAL WAY
ATTEST:
CITY CLERK, STEPHANIE COU EY, CMC
APPROVED AS TO FORM:
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CITY A O EY, AMY JO PEARSALL
FILED WITH THE CITY CLERK: 04/20/2015
PASSED BY THE CITY COUNCIL: 04/21/2015
RESOLUTION NO.: 15 -681
Resolution No. 15 -681 Page 3 of 3