RES 17-728 - Authorizing Financing for LED Street Light ConversionRESOLUTION NO. 17 -728
A RESOLUTION of the City Council of the City of Federal Way,
Washington, authorizing a revolving Inter -fund Loan of up to
$2,500,000, not to exceed three years, from the General Fund to the
Transportation Capital Project Fund to fund the difference between the
grant reimbursement and total cost of LED Street Light Conversion.
WHEREAS, the Transportation Capital Project Fund has a timing difference between the
time the grant is reimbursed and the spending of grant funds; and
WHEREAS, the Transportation Capital Project Fund will need up to $2,500,000 to fund the
difference between grant reimbursement and grant spending; and
WHEREAS, the City's General Fund has adequate funds set aside for providing a revolving
inter -fund loan, and such funds are being invested in the State Investment Pool at the current rate of
1.1283% (as of September 30, 2017); and
WHEREAS, the City is paying 1.51% on its last General Obligation Bond issued in 2014;
and
WHEREAS, Council authorized the participation in the LED Street Light Conversion
Program to be funded through Bond or Loan; and
WHEREAS, the City's General Fund will earn more from a revolving 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 Transportation Capital Project Fund is authorized to borrow from the City's
General Fund an amount of up to $2,500,000, for the purpose of funding the timing difference
between grant reimbursement and grant spending. The term of the revolving loan shall be for a
Resolution No. 17 -728 Page 1 of 3
period not to exceed three years from the day of first advance at an annual interest rate of 1.2%
(current Washington State Investment Pool's earning rate is 1.1283% as of September 30, 2017). The
Transportation Capital Project Fund may pay off the revolving 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 revolving loan of up to $2,500,000 from the available cash of the General Fund, where
money deposited therein is not immediately needed for the purposes of that fund, to the
Transportation Capital Project 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.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 7th day of November, 2017.
Resolution No. 17 -728 Page 2 of 3
ATTEST:
CITY OF FEDERAL WAY:
P ANIE COURTNEY, C Q CITY CLERK
APPROVED AS TO FORM:
J. RYAN CALL, CITY ATTORNEY
FILED WITH THE CITY CLERK: 11/01/2017
PASSED BY THE CITY COUNCIL: 11/07/2017
RESOLUTION NO.: 17 -728
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