RES 15-688 - Authorizing Interfund Loan from General Fund to CDBG Fund •
RESOLUTION NO. .15-688
A RESOLUTION of the City Council of the City of Federal Way,
Washington, authorizing an Inter-fund Loan of up to $200,000, not to
exceed one year,from the General Fund to the Community Development
Block Grant Fund to fund the difference between 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 $200,000 to
fund the difference between grant reimbursement and grant spending; and
WHEREAS,the City's General Fund has adequate funds set aside for providing an inter-fund
loan,and such funds are being invested in the State Investment Pool at the current rate of 0.14%(as
of April 30, 2015); and
WHEREAS, the City is paying 1.51% on its last General Obligation Bond issued in 2014;
and
WHEREAS, the City's General Fund will earn more than seven 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:
Section 1. The Community Development Block Grant Fund is authorized to borrow from the
City's General Fund an amount of up to $200,000, for the purpose of funding the timing difference
between grant reimbursement and grant spending. The term of the loan shall be for a period not to
0
exceed one year from the day of first advance at an annual interest rate of 1.0%(current Washington
Resolution No. 15-688 Page I of 3
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State Investment Pool's earning rate is 0.14%as of April 30,2015). The Community Development
Block Grant 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 up to $200,000 from the available cash of the General Fund, where money
deposited therein is not immediately needed for the purposes of that fund, to the Community
Development Block Grant 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. 15-688 Page 2 of 3
• •
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 2nd day of June,2015.
CITY OF FEDERAL WAY
lir' ••• /
,fYOR, M FERRELL
ATTEST:
'/1, 0 1
'i ERK, STEPHANIE CO t Y, CMC
r
APPROVED AS TO FORM:
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CITY ATT I' EY, AMY JO PEARSALL
FILED WITH THE CITY CLERK: 05/29/2015
PASSED BY THE CITY COUNCIL: 06/02/2015
RESOLUTION NO.: 15-688
Resolution No. 15-688 Page 3 of 3